Wall Street is eyeing a loss for the week
Stocks kicked off the holiday-shortened week with marginal gains, as the S&P 500 Index (SPX) notched a record close and the Nasdaq Composite (IXIC) hovered just above the key 20,000 level, fueled by strength in energy and tech. By Thursday, however, Walmart’s (WMT) disappointing earnings report reignited macroeconomic fears, sparking the Dow’s worst single-session drop since January and dragging the S&P 500 off its record highs. Sentiment didn't improve any on Friday, after UnitedHealth (UNH) came under federal scrutiny and consumer sentiment fell to its lowest level since November 2023. For the week, all three major benchmarks are eyeing weekly losses.
Key Moves on Wall Street
Shares of Intel (INTC) surged following reports that Broadcom (AVGO) and Taiwan Semiconductor (TSM) are exploring bids to acquire different segments of the chipmaker, a move that could potentially lead to a breakup of Intel. Meanwhile, Capital One (COF) secured shareholder approval for its acquisition of Discover Financial Services (DFS), a major move that could reshape the credit card and lending landscape. In the banking sector, Berkshire Hathaway (BRK) trimmed its stakes in Bank of America (BAC) and Citigroup (C), fueling investor speculation about Warren Buffett’s outlook on financials.
Delta Air Lines (DAL) also made headlines after one of its regional jets flipped upside down upon landing in Toronto, though all passengers and crew were safely evacuated. Lastly, as artificial intelligence (AI) stocks remained red-hot, quantum computing names like IONQ (IONQ), Rigetti Computing (RGTI), and D-Wave Quantum (QBTS) gained attention following recent technological breakthroughs and growing investor speculation about their long-term potential.
Earnings -- This Week's Biggest Reports
Walmart (WMT) tumbled after the retailer reported strong fourth-quarter earnings but issued weaker-than-expected guidance for fiscal 2026, warning of potential headwinds from postponed tariffs on Mexico and Canada. Alibaba (BABA) stock soared after posting a 13% year-over-year sales jump and stronger-than-expected profits, driven by cloud and e-commerce growth.
Meanwhile, investors also reacted to reports from Toll Brothers (TOL) and Bumble (BMBL), with the former missing fiscal first-quarter expectations and the latter posting a disappointing fiscal first-quarter forecast, overshadowing its fourth-quarter revenue beat and in-line earnings. Electric vehicle (EV) giant Rivian Automotive (RIVN) plunged, after the company forecasted lower-than-expected deliveries for 2025.
More Inflation Data Coming Up
The final week of February brings more inflation data, which will likely inform the Federal Reserve's next interest rate decision. Traders will also unpack earnings from AMC Entertainment (AMC), Home Depot (HD), Lowe's (LOW), Salesforce (CRM), and more. Meanwhile, one lesser-known "fear gauge" shows a large pullback is unlikely, while bears are at risk with support stepping up.