Daily Brief - February 19, 2026 (EOD)

 ## Market Recap Today, U.S. indices experienced a modest decline as concerns over U.S.-Iran tensions weighed on investor sentiment. The **S&P 500** fell by 0.4%, closing at 4,205, while the **Nasdaq Composite** and **Dow Jones Industrial Average** dropped 0.6% and 0.3%, respectively. The **Russell 2000** also reflected the bearish trend, declining by 0.5%. Overall, the trading character was cautious, with a notable shift towards safe-haven assets, as geopolitical uncertainties overshadowed positive earnings reports from several companies. Trading volume was slightly above average, indicating heightened activity as investors reacted to news and earnings reports. Market breadth showed weakness, with declining stocks outpacing advancers on both the NYSE and Nasdaq. ## Top Stories That Moved Markets - **U.S.-Iran Tensions Rise:** President Trump warned of "bad things" if Iran does not negotiate, leading to increased oil prices and market unease. This development impacted investor sentiment broadly, particularly in energy stocks. - **Pending Home Sales Fall:** The National Association of Realtors reported a surprising 0.8% decline in pending home sales for January, raising concerns over the housing market's resilience amidst rising mortgage rates. - **Walmart's Cautious Outlook:** Walmart reported solid earnings but offered a cautious forecast that weighed on the retail sector. Shares dropped 3% as the company cited concerns over inflation and changing consumer spending patterns. - **Klarna's Earnings Miss:** Klarna swung to a loss despite significant revenue growth, leading to a steep decline in its share price. This miss raised questions about the sustainability of growth for fintech companies. - **Earnings Reports:** Several companies reported earnings today, with mixed results impacting stock performance. Notably, **Carvana** and **Walmart** faced scrutiny for their futures, while **Nextdoor Holdings** posted better-than-expected earnings, boosting its stock. ## Biggest Winners **$NDO** - +12% - Nextdoor Holdings reported strong earnings that exceeded expectations, boosting investor confidence. **$HIMS** - +10% - Following news of a significant acquisition, shares surged as investors reacted positively to growth prospects. **$TAP** - +9% - Molson Coors beat earnings expectations and provided an optimistic outlook, driving shares higher. **$CARR** - +7% - Carrier Global's strong quarterly performance and positive guidance attracted bullish sentiment. **$NTR** - +6% - Nutrien's earnings beat and improved outlook amidst rising agricultural demand led to a rally. ## Biggest Losers **$CVNA** - -15% - Carvana's disappointing earnings report missed analyst expectations, resulting in a sharp decline in share price. **$WMT** - -3% - Despite solid earnings, Walmart's cautious outlook regarding inflation and consumer spending weighed heavily on its stock. **$KLAR** - -20% - Klarna reported a substantial loss despite revenue growth, leading to a significant sell-off. **$MDGL** - -11% - Mixed results from the latest earnings report spooked investors, contributing to a stock decline. **$PODD** - -9% - Insulet's earnings report raised concerns about future growth, causing shares to retreat. ## Sector Scorecard - **Leaders:** Consumer Discretionary and Technology sectors outperformed due to positive earnings reports and resilient consumer spending indicators. - **Laggards:** Energy and Financials sectors struggled as rising geopolitical tensions and market uncertainties overshadowed gains from some companies. ## After-Hours Movers **$EBAY** - +5% - Shares rose after eBay announced its acquisition of Depop, signaling a strategic move to enhance its fashion segment. **$CVNA** - -10% - Continued declines in after-hours trading as investors reacted further to its disappointing earnings report. ## Crypto & Commodities - **Gold:** Prices steadied near $5,000 per ounce, driven by safe-haven demand amid geopolitical tensions. - **Oil:** Crude prices surged, reflecting concerns over potential U.S. conflict with Iran, with WTI crude closing at around $66 per barrel. ## Tomorrow Setup - **Key Events:** Investors will closely watch for economic data releases, particularly jobless claims and any updates from the Federal Reserve regarding interest rates. - **Stocks to Watch:** Keep an eye on **$WMT** and **$CVNA** as they navigate through post-earnings reactions. Additionally, **$AAPL** will be worth monitoring as speculation around new product launches continues. - **Risk Factors:** Geopolitical tensions with Iran, inflation data, and Fed policy signals will be critical risk factors to watch in the coming sessions.