Daily Brief - February 26, 2026 (Morning)

 ## Pre-Market Overview U.S. equity futures are mixed ahead of the open, with the Dow Jones futures slightly higher but Nasdaq futures showing some softness following Nvidia’s earnings. Overnight, Asian markets rallied strongly, led by Japan’s Nikkei 225 hitting a record high on cooling rate hike expectations and tech sector gains. South Korea also surged, buoyed by semiconductor strength after Nvidia’s earnings report. In Europe, markets are subdued with mixed earnings results and investors digesting geopolitical developments, including U.S.-Iran nuclear talks and tensions around Cuba. The overall market sentiment is cautiously optimistic. The S&P 500 and Nasdaq 100 closed higher yesterday, supported by strong tech sector gains, but Nvidia’s mixed post-earnings reaction is tempering enthusiasm. Investors remain focused on AI-related stocks, earnings reports, and macro developments such as weekly U.S. jobless claims and ongoing geopolitical risks. Oil prices are down over 3%, pressured by rising U.S. inventories and uncertainty around U.S.-Iran talks, which could weigh on energy stocks today. ## Top Stories Moving Markets - **Nvidia (NVDA) Earnings and Guidance** Nvidia reported a strong quarter with accelerating growth and free cash flow surge, highlighting its leadership in AI and data center demand. However, the stock’s post-earnings gains were muted as some investors remain cautious about sustainability. Nvidia’s CEO emphasized future revenue potential from robotaxi and AI applications. This report will influence tech sector sentiment and chipmakers broadly. Affected tickers: **$NVDA**, **$AMD**, **$KLAC**, **$SNOW**, **$ANET** - **Warner Bros. Discovery (WBD) Strategic Bidding Update** Warner Bros. Discovery disclosed engagement with four bidders, leading to eight price increases and a 63% rise in value since the first offer in September. This signals potential M&A activity that could reshape media and entertainment valuations. The news may drive volatility in WBD shares and related media stocks. Affected ticker: **$WBD** - **HSBC Reduces U.S. Exposure, Boosts Emerging Markets Allocation** HSBC is cutting its U.S. equity exposure while increasing investments in emerging markets, reflecting a shift in global equity preferences amid geopolitical and economic uncertainties. This repositioning could influence sector flows and international equity ETFs. Affected tickers: Data not specific to individual stocks but relevant for **$XLF**, **$EEM** - **Philip Morris International (PM) Benefits from Zyn’s Growth** PM gained from explosive growth in its Zyn nicotine pouch brand, supporting its revenue and profit outlook. This strengthens the consumer staples sector and highlights the company’s successful product diversification. Affected ticker: **$PM** - **U.S. Weekly Jobless Claims Rise Slightly** Jobless claims edged up to 212,000, indicating a stable but cautious labor market. This data supports the view of a low-hire, low-fire environment, which may temper expectations for aggressive Fed rate moves and influence financials and consumer discretionary sectors. Affected tickers: Broad market impact, especially **$XLF**, **$XLY** ## Stocks to Watch Today **$NVDA** – Strong Q4 earnings with AI-driven growth but muted post-earnings gains; key for tech sector direction. **$WBD** – M&A interest intensifies with multiple bidders raising offers; watch for deal developments. **$PM** – Benefiting from Zyn’s rapid growth, supporting consumer staples strength. **$CRM** – Maintains buy rating from Needham on AI-driven ARR growth momentum; important SaaS name. **$SNOW** – Shares up 8.28% after strong earnings beat and AI product push; AI sector focus. **$ANET** – Jumped 3.09% post-earnings; data center demand remains robust. **$C** – Shares surged 4.57% on strong earnings beat and optimistic outlook; financials in focus. **$BAC** – Up 2.64% following solid earnings and positive market sentiment on banking sector. **$IBM** – Gained 4.79% after earnings beat and AI infrastructure investments; key tech legacy player. **$NTNX** – Surged 14.34% on earnings beat and demand surge; AI and cloud growth story intact. **$TASK** – Up 11.66% after strong Q4 results; AI-related outsourcing services gaining traction. **$ECPG** – Jumped 12.72% on earnings beat and collections growth; financial services specialty. **$ARKO** – Fell 2.31% despite earnings, watch for volatility in energy services. **$AI** – Dropped 22.63% on earnings miss and growth concerns; caution in AI pure plays. **$ARRY** – Fell 22.09% after disappointing earnings; biotech sector volatility. **$MNDY** – Downgraded by Jefferies; software sector caution. **$PEGA** – Multiple price target cuts; watch for SaaS sector pressure. **$PLTR** – Up 4.16% on AI-related optimism; software sector focus. **$SHOP** – Up 4.16% despite target price cut; e-commerce and software mix. **$SNPS** – Fell 1.98% on weak IP segment; software sector headwinds. **$ZM** – Down 8.45% after earnings miss; video conferencing demand concerns. **$ZIP** – Fell 12.75% on earnings miss; e-commerce and fintech caution. **$UNH** – Up 4.12% on strong earnings; healthcare sector leader. **$MS** – Up 3.23% after solid earnings; financial sector strength. **$GS** – Up 2.52% on strong results; watch financials. **$FICO** – Up 6.34% on buyback acceleration; fintech strength. **$F** – Up 1.55% on earnings beat; auto sector steady. **$HD** – Down 2.09% despite price target raise; retail caution. **$LHX** – Down 3.89% after earnings miss; defense sector volatility. **$RMD** – Up 0.36% on steady healthcare demand. **$SRAD** – Up 11.95% on partnership news; AI and data analytics interest. **$VCYT** – Up 6.16% on earnings beat; diagnostics sector strength. ## Sector Setup - **Technology:** Positioned for gains with strong earnings from Nvidia, Snowflake, and others driving optimism around AI and data center demand. However, some caution remains due to mixed reactions to earnings and downgrades in SaaS names like Monday.com and Pegasystems. - **Financials:** Strong earnings from Citigroup, Bank of America, and Morgan Stanley support a positive outlook. Jobless claims data suggests labor market stability, which is favorable for banks. Watch for continued rotation into financials. - **Energy:** Under pressure as oil prices fell 3.02% on rising U.S. inventories and geopolitical uncertainty. Energy ETFs declined, and some energy services stocks like ARKO are down. - **Healthcare:** Mixed but generally stable with UnitedHealth up on strong earnings and diagnostics firms like Veracyte showing strength. Biotech remains volatile with some large declines in names like Array Technologies. ## Economic Calendar & Fed No major economic releases scheduled for today beyond the recent weekly jobless claims data. Market focus remains on earnings and geopolitical developments. The Fed’s next moves will be influenced by labor market stability and inflation signals but no direct Fed events are slated today. ## Crypto & Commodities - Bitcoin is steady near $67,936, down marginally by 0.08%, showing resilience despite recent volatility. - Ethereum gained 0.37% to $2,064, supported by renewed interest in AI and blockchain developments. - Oil prices dropped sharply by 3.02% to $78.32 amid rising U.S. crude inventories and uncertainty around U.S.-Iran nuclear talks. This weighs on energy stocks and related sectors. - Gold is flat, little changed at $474.52, as investors await clarity on geopolitical risks and inflation. ## Trading Game Plan - Focus on **technology and AI-related stocks**, especially chipmakers and software firms with strong earnings momentum. Watch for volatility in pure AI plays with mixed earnings. - Favor **financials** on strong earnings beats and stable labor market data supporting credit quality and loan growth. - Avoid or be cautious on **energy stocks** amid falling oil prices and inventory builds. - Monitor **media and entertainment stocks** for M&A developments, particularly Warner Bros. Discovery. - Watch for geopolitical risks around U.S.-Iran talks and Cuba tensions, which could impact commodities and risk sentiment. - Keep an eye on **consumer staples** like Philip Morris benefiting from product growth trends. - Manage risk around stocks with recent downgrades or earnings misses, including some SaaS and biotech names. - Use earnings momentum and analyst upgrades to identify short-term trade opportunities, especially in mid-cap tech and financials.