Daily Brief - February 27, 2026 (Morning)

 ## Pre-Market Overview U.S. stock futures are indicating a cautious start to the session following a broad selloff in the major indexes yesterday. The S&P 500 futures are down, reflecting the 1.08% drop in the cash market, while Nasdaq 100 futures are also lower, mirroring the tech-heavy index’s 1.75% decline. This suggests investors remain wary ahead of key earnings and economic data releases. Overnight, Asian markets closed mixed with Japan’s Nikkei up 0.36%, supported by optimism around AI investments and corporate earnings. However, Chinese stocks faced pressure amid concerns over slowing smartphone demand and regulatory uncertainty. European markets opened mixed, with investors digesting a slew of earnings reports and inflation data that showed a slight rebound in French inflation but remained contained overall. The geopolitical backdrop remains tense, with U.S.-Iran nuclear talks continuing without a breakthrough, adding to market jitters. The overall sentiment heading into today is cautious, with investors balancing strong earnings beats in some sectors against ongoing macroeconomic and geopolitical risks. The tech sector, which led gains earlier this year, is under pressure after some disappointing guidance and profit-taking. Energy stocks are poised to benefit from rising oil prices amid renewed geopolitical concerns. ## Top Stories Moving Markets - **Netflix Ends Warner Bros. Bid, Paramount Wins** Netflix has officially dropped its months-long bid for Warner Bros., clearing the way for Paramount to acquire the studio. This development sent shares of **$NFLX** up 10% to $90.97 in pre-market trading, while Warner Bros. Discovery shares edged lower. The resolution of this high-profile bidding war removes uncertainty in the media sector and could lead to consolidation benefits for Paramount. Expect media and entertainment stocks to react to this deal’s implications. - **Dell Surges on AI Server Demand and Strong Q4 Results** Dell Technologies (**$DELL**) shares jumped 9.18% to $134.81 after reporting record Q4 results driven by robust demand for AI servers. The company’s earnings beat expectations despite a miss in some segments, highlighting the growing importance of AI infrastructure spending. This sets a positive tone for other tech hardware providers and could stabilize the broader tech sector after recent weakness. - **MARA Holdings Stock Rises on Data Center Deal** MARA Holdings (**$MARA**) surged 14.12% to $9.78 following a deal to convert a data center into a Bitcoin mining facility with Starwood. The company also reported Q4 results and announced a strategic pivot to leverage its Bitcoin holdings for financial flexibility. This move underscores the evolving crypto mining landscape and may boost investor interest in related stocks amid recent crypto volatility. - **Amneal Pharmaceuticals Beats Q4 Estimates but Guides Below** Amneal Pharmaceuticals (**$AMRX**) beat Q4 earnings estimates by $0.03 and topped revenue forecasts, but the company issued a cautious outlook. Shares were down slightly despite the beat, reflecting investor concerns over guidance. This highlights the mixed sentiment in the healthcare sector, where strong current results are tempered by uncertainty about future growth. - **Oil Prices Rise on Geopolitical Risks and Supply Concerns** Oil prices climbed 2.11% to $81.41 per barrel amid heightened geopolitical tensions and concerns about supply constraints. Analysts have raised their oil outlooks, though oversupply worries limit upside. Energy stocks like **$XLE** are positioned to benefit from this environment, as rising oil prices support earnings and capital spending in the sector. ## Stocks to Watch Today - **$ADSK** - Autodesk shares surged 7.59% to $241.88 after strong Q4 earnings and upbeat guidance, benefiting from AI-related demand. - **$ARLO** - Arlo jumped 15.45% to $13.75 on positive earnings and growth outlook. - **$ASUR** - Asure Software rallied 14.56% to $8.50 following better-than-expected Q4 results. - **$BFLY** - Butterfly Network soared 50.32% to $4.66 after reporting strong Q4 earnings and improving EBITDA. - **$BLFS** - BioLife Solutions gained 4.58% to $23.50 on solid quarterly performance. - **$CSTL** - Castle Biosciences climbed 8.01% to $33.30 after beating Q4 estimates. - **$DELL** - Dell Technologies surged 9.18% on AI server demand and record Q4 results. - **$MARA** - MARA Holdings jumped 14.12% on a new data center deal and strategic pivot. - **$NFLX** - Netflix rallied 10% after dropping Warner Bros. bid, clearing acquisition path for Paramount. - **$PRAA** - PRA Group surged 24.36% to $14.55 on strong Q4 results. - **$PUBM** - PubMatic jumped 21.88% on upbeat earnings and growth outlook. - **$WRBY** - Warby Parker rose 15.04% after reporting solid Q4 results. ## Sector Setup - **Technology:** Negative pressure after a 2.33% drop in XLK, led by weakness in semiconductor and software stocks. However, pockets of strength in AI-related hardware like **$DELL** and software names with strong earnings could provide selective opportunities. - **Financials:** Slightly positive, with XLF up 0.35%, supported by steady banking earnings and increased trading activity from Saudi investors. - **Energy:** Strong outlook with XLE up 1.09% on rising oil prices amid geopolitical risks and supply concerns. Energy names should continue to benefit from higher commodity prices. - **Healthcare:** Modest weakness with XLV down 0.61%, reflecting mixed earnings results such as Amneal’s beat but cautious guidance. Watch for names with strong innovation or earnings beats. ## Economic Calendar & Fed Today’s key economic release is the preliminary Q4 corporate profits report at 1:30 PM ET. This data will provide insight into corporate earnings trends and profitability, which is critical given recent mixed earnings reports. No Fed events are scheduled, but markets will closely watch any commentary for clues on future monetary policy. ## Crypto & Commodities Bitcoin is down 2.08% to $66,076.80, and Ethereum fell 3.27% to $1,961.22 amid a risk-off mood in crypto markets. Despite this, some AI-linked tokens and decred are advancing, reflecting sector rotation within crypto. Oil prices rose 2.11% to $81.41, supported by geopolitical tensions and supply concerns. Gold gained 0.62% to $476.36, benefiting from safe-haven demand amid market uncertainty. ## Trading Game Plan - Focus on selective tech names benefiting from AI demand, such as **$DELL** and **$ADSK**, while avoiding broader tech weakness. - Energy sector looks poised for gains; consider exposure to oil producers and midstream companies amid rising prices. - Monitor media and entertainment stocks for volatility following Netflix’s exit from Warner Bros. bid, with **$NFLX** and **$PARA** in focus. - Watch healthcare for mixed earnings signals; favor companies with strong beats and innovation. - Keep an eye on Q4 corporate profits data for confirmation of earnings trends. - Manage risk around geopolitical developments, especially U.S.-Iran talks and their impact on oil and safe-haven assets. - Crypto remains volatile; traders should be cautious but watch for AI-related token strength. - Upcoming earnings to watch include Amneal Pharmaceuticals and other healthcare names reporting today.