## MARKET MOOD: MIXED
Overnight markets showed a cautious tone amid renewed tariff uncertainty and mixed earnings news. Gold surged on tariff jitters, while equities saw modest gains in large caps but weakness in small caps, reflecting uneven risk appetite.
## TOP 5 HEADLINES
1. Eli Lilly to launch multi-dose weight-loss drug device in US → Impact: Positive for **LLY**, enhancing its obesity treatment franchise.
2. ASML unveils EUV light source advance promising 50% more chips by 2030 → Impact: Bullish for semiconductor equipment suppliers like **ADI**.
3. FDA approves Allurion gastric balloon for obesity treatment → Impact: Supports obesity treatment sector, benefiting **LLY** and peers.
4. Domino’s Pizza reports Q4 results, raises dividend, and adds 392 stores → Impact: Bullish catalyst for **DPZ**, signaling strong growth and shareholder returns.
5. US Supreme Court strikes down some Trump tariffs, creating trade uncertainty → Impact: Mixed; supports equities but fuels policy risk.
## PRE-MARKET MOVERS
### Longs (Bullish Catalysts)
**LLY** - Launch of multi-dose weight-loss drug device and FDA approval for obesity treatment device boost growth prospects.
**DPZ** - Strong Q4 results, 15% dividend hike, and store expansion signal operational strength.
**ADI** - ASML’s EUV advance supports semiconductor equipment demand, lifting outlook.
**AAPL** - Modest pre-market gains on strong device ecosystem narrative.
**GOOGL** - Shares up on AI-related growth optimism and strong backlog.
**ETSY** - BTIG reiterates buy rating, shares surged 7.1% on positive sentiment.
### Shorts (Bearish Catalysts)
**LUNR** - Shares down 6.76% amid concerns over space commercialization opportunities.
**PL** - Stock fell 6.61% after advisory board announcement failed to offset valuation concerns.
**SNOW** - Down 4.44% on margin worries and price target cuts.
**BX** - Declined 4.39% on profit-taking and sector rotation.
**AI** - Dropped 4.02% despite broader tech strength, signaling profit-taking.
**CF** - Fell 3.48% on sector weakness and political uncertainty around fertilizer policies.
## INDEX BIAS
**SPY:** NEUTRAL – Modest gains (+0.43%) reflect cautious optimism amid tariff and earnings uncertainty.
**QQQ:** NEUTRAL – Slight positive (+0.42%) driven by AI and tech optimism, tempered by select profit-taking.
**IWM:** BEARISH – Declined 0.51%, small caps hit by risk-off sentiment and tariff concerns.
## SECTORS
**Favor:** Consumer Discretionary – Domino’s (**DPZ**) and Lululemon (**LULU**) showing growth and dividend strength.
**Avoid:** Industrials – Weakness in **DE**, **ETN**, and **DOW** amid tariff jitters and margin pressure.
## CATALYST WATCH
- 08:30 AM ET: Durable Goods Orders (Jan) – May influence industrials and manufacturing stocks.
- 10:00 AM ET: Existing Home Sales (Jan) – Could impact housing-related names like **HD** and **LOW**.
- 02:00 PM ET: Fed’s Waller speaks – Market sensitive to comments on rate cuts and labor market.
## BOTTOM LINE
**Today's Play:** Selective
Markets are navigating a complex mix of tariff uncertainty, AI-driven tech optimism, and mixed earnings. Large caps and select consumer discretionary names like **DPZ** and **LLY** offer opportunities, while small caps and industrials face headwinds. Watch for volatility around economic data and Fed commentary. Focus on high-conviction longs in growth and healthcare, with caution on cyclical and tariff-exposed sectors.
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