## MARKET MOOD: RISK-OFF
U.S. equity futures are down following a sharp selloff in tech stocks overnight, led by Nvidia and other AI-related names. Geopolitical tensions and persistent inflation concerns ahead of key economic data are weighing on sentiment.
## TOP 5 HEADLINES
1. Nvidia shares fall 6.82% after earnings despite strong AI growth → Impact: Tech sector weakness pressures Nasdaq futures.
2. Netflix drops Warner Bros. bid; Paramount wins → Impact: Streaming sector sees relief rally, Netflix up 11.37% premarket.
3. Dell surges 9.77% on strong Q4 beat and AI server demand → Impact: Select tech hardware stocks gain amid AI optimism.
4. CoreWeave tumbles 12.51% on operating margin miss → Impact: AI infrastructure stocks face profit-taking pressure.
5. Wholesale prices rise sharply in January, signaling persistent inflation → Impact: Market jitters on Fed tightening continue.
## PRE-MARKET MOVERS
### Longs (Bullish Catalysts)
**$DELL** - Strong Q4 earnings beat and AI server demand driving 9.77% jump.
**$NFLX** - Shares rally 11.37% after dropping Warner Bros. bid, clearing path for Paramount deal.
**$ADSK** - Up 4.75% on strong quarterly results and upbeat guidance.
**$BFLY** - Surges 46.77% on strong Q4 earnings and growth outlook.
**$PRAA** - Jumps 32.05% after beating Q4 earnings and revenue estimates.
**$PUBM** - Gains 19.76% following positive Q4 earnings call.
### Shorts (Bearish Catalysts)
**$AI** - Plunges 20.37% after earnings disappointment and margin concerns.
**$AMPH** - Drops 17.77% on weak Q4 results and sales miss.
**$AIRG** - Falls 14.29% post Q4 earnings miss.
**$AMBA** - Declines 11.51% after earnings miss and cautious outlook.
**$CRWV** - Down 12.51% on margin miss despite revenue beat.
**$WLDN** - Sinks 11.84% following Q4 earnings miss.
## INDEX BIAS
**SPY:** BEARISH - Down 1.36%, pressured by tech selloff and inflation concerns.
**QQQ:** BEARISH - Down 2.07%, tech-heavy Nasdaq hurt by Nvidia and AI-related weakness.
**IWM:** BEARISH - Down 0.96%, small caps also under pressure amid risk-off mood.
## SECTORS
**Favor:** Energy (XLE +1.71%) - Benefiting from higher oil prices and geopolitical risks.
**Avoid:** Technology (XLK -2.85%) - Hit hard by earnings misses and profit-taking in AI names.
## CATALYST WATCH
Events today that could move markets:
- 08:30 ET: U.S. Initial Jobless Claims
- 10:00 ET: U.S. Wholesale Inventories for January
- Earnings: Multiple small-mid cap companies reporting, including Alpha Metallurgical Resources (AMR), Amneal Pharmaceuticals (AMRX), and Bain Capital Specialty Finance (BSCF).
## BOTTOM LINE
**Today's Play:** Selective
Markets remain cautious with tech sector volatility dominating after mixed earnings from AI leaders. Energy stands out as a relative safe haven amid rising oil prices and geopolitical tensions. Traders should focus on strong earnings names like **$DELL**, **$NFLX**, and specialty growth stocks showing resilience, while avoiding weak margin and growth disappointments in AI infrastructure and semiconductor-related stocks. Inflation data and jobless claims will be key to watch for further market direction.
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