Stocks were mixed last week, with broad gains on Monday and Friday bookending midweek selling pressure as investors digested earnings results from more than 100 S&P 500 companies. The Standard & Poor’s 500 Index ended the week roughly where it started, slipping 0.10% this week as declines led by the consumer discretionary sector slightly outweighed gains guided by consumer staples amid mixed earnings reports.The S&P 500 ended the week at 6,932.30 and is up 1.3% for the year. The Nasdaq Composite Index declined 1.84%. The Dow Jones Industrial Average rose 2.50% closing above 50,000 for the first time as investors appeared to “buy the dip.” By contrast, the MSCI EAFE Index, which tracks developed overseas stock markets, rose 0.49% with dollar weakness as a tailwind.1,2 Increased NASDAQ (Tech) Volatility and the Dow hits 50,000The Nasdaq Composite experienced a volatile, downward-trending week (ending Feb 7, 2026), marking its worst two-week stretch since the pandemic, with software stocks diving nearly 20%. The index fell to a two-and-a-half-month low, pressured by AI-driven selling and persistent inflation concerns, before a Friday rebound partially eased some downside risks. Concerns over AI-driven disruption to legacy software business models triggered significant selling, with the iShares Expanded Tech-Software Sector ETF experiencing its most oversold state since 2001. Despite initial weakness, software stocks fell sharply, while large-cap tech saw mixed results following earnings reports from companies like Alphabet. The Nasdaq 100 hit a potential double-top, with technical indicators showing a loss of momentum, though a Friday rebound suggested some relief. The "risk-off" environment was driven by fears that AI could move faster than companies can adapt, combined with Fed messaging that rate cuts may stay on hold. While Friday's rally provided some stability, the index remained under pressure, with analysts looking for a break above the 26,150–26,200 resistance area to confirm a return to the upside, otherwise, a test of the 200-day moving average near 23,700 was considered possible. Again, for the S&P 500, the slim weekly move came as investors sifted through a mixed bag of quarterly earnings reports and guidance. Companies including Hershey (HSY) and PepsiCo (PEP) reported quarterly results above analysts' expectations while others, including online retail giant Amazon.com (AMZN), delivered some disappointments. On the economic front, ADP reported employment in the US private sector increased less than projected in January. Investors continue to await government data on January's jobs after the Bureau of Labor Statistics pushed back its monthly payrolls report to Feb. 11. US consumer sentiment reached its highest reading since August, but remained low compared with year-ago levels amid persistent concerns related to inflation and the labor market, preliminary results from a University of Michigan survey showed. The consumer discretionary sector had the largest percentage drop this week, falling 4.6%, followed by a 4.4% decline in communication services and a 1.4% loss in technology. Amazon.com had the largest percentage drop in consumer discretionary, falling 12% on the week as the company posted Q4 earnings per share below analysts' mean estimate. Amazon forecast operating income of $16.5 billion to $21.5 billion for the ongoing quarter; this was below initial expectations by about $3.5 billion at the midpoint, according to Wedbush Securities analysts. Take-Two Interactive Software (TTWO) was among the top decliners in communication services. The company reported a fiscal Q3 loss of $0.50 per diluted share, wider than the loss of $0.39 per share expected on average by analysts polled by FactSet. Shares fell 11% Leading the technology sector's decliners, Gartner (IT) shares fell 25% as the company issued 2026 guidance below analysts' estimates. On the upside, consumer staples climbed 6%, followed by a 4.7% increase in industrials and a 4.3% rise in energy. Also, materials added 3.5%, while health care, financials and real estate also rose by more than 1% each. Utilities edged higher as well. Hershey led the gainers in consumer staples with a 19% jump as the candy company reported Q4 adjusted earnings per share and sales above analysts' expectations and forecast 2026 adjusted EPS above the Street view. PepsiCo was also a top gainer in consumer staples, climbing 11%, as the beverage and snacks company posted fiscal Q4 core earnings per share and net revenue above analysts' expectations. PepsiCo also announced a 4% increase to its annualized dividend. The industrial sector's gainers were led by shares of Old Dominion Freight Line (ODFL), which rose 17%. The company posted Q4 earnings per share above analysts' mean estimate as revenue also came in above the Street view. Next week's earnings schedule features Coca-Cola (KO), Cisco Systems (CSCO), McDonald's (MCD), T-Mobile US (TMUS), Applied Materials (AMAT) and Arista Networks (ANET), among other companies. The focal point of the economic calendar will be the January jobs report on Wednesday. Other economic data due next week will include the January consumer price index, a key inflation measure, on Friday. |
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Source: YCharts.com, February 7, 2026. Weekly performance is measured from Monday, February 2, to Friday, February 6. TR = total return for the index, which includes any dividends as well as any other cash distributions during the period. Treasury note yield is expressed in basis points. |
Fed Watch: Jobs DataThe brief government shutdown that ended last week delayed several economic reports. The federal employment report for January, originally due out on February 6, has been delayed until Wednesday, February 11. But payroll processor ADP reported on Wednesday that private employers added 22,000 jobs in January—about half of the 45,000 expected. Then, on Thursday, outplacement firm Challenger, Gray & Christmas reported that companies cut more than 108,000 jobs in January—the highest number of layoffs of any January since 2009.7,8 Investors tried to reconcile the reports with the Fed’s January post-meeting statement, which read, “Available indicators suggest that economic activity has been expanding at a solid pace. Job gains have remained low, and the unemployment rate has shown some signs of stabilization. Inflation remains somewhat elevated.”9 This Week: Key Economic DataMonday: Atlanta Fed President Raphael Bostic and Fed governors Christopher Waller and Stephen Miran speak. Tuesday: NFIB Small Business Optimism Index. Retail Sales* (Dec). Import Prices* (Dec). Employment Cost Index (Q4). Business Inventories* (Nov). Fed Presidents Beth Hammack (Cleveland) and Lorie Logan (Dallas) speak. Wednesday: Employment Report. Federal Budget. Thursday: Weekly Jobless Claims. Existing Home Sales (Jan). Fed governor Miran speaks. Friday: Consumer Price Index (CPI). Source: Investors Business Daily - Econoday economic calendar; February 6, 2026. The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to provide accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts are also subject to revision. This Week: Companies Reporting EarningsTuesday: The Coca-Cola Company (KO), Gilead Sciences, Inc. (GILD), S&P Global Inc. (SPGI), Welltower Inc. (WELL), CVS Health Corporation (CVS), Duke Energy Corporation (DUK), Spotify Technology (SPOT) Wednesday: Cisco Systems, Inc. (CSCO), McDonald’s Corporation (MCD), T-Mobile US, Inc. (TMUS), Shopify Inc. (SHOP), AppLovin Corporation (APP) Thursday: Applied Materials, Inc. (AMAT), Arista Networks, Inc. (ANET), Vertex Pharmaceuticals Incorporated (VRTX), Brookfield Corporation (BN) Source: Zacks, February 6, 2026. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule their earnings reports without notice. |
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"Ideas are like rabbits. You get a couple and learn how to handle them, and pretty soon you have a dozen." – John Steinbeck |
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Taking a Side Gig? Here’s How It May Affect Your TaxesTaxpayers who work in the gig economy may benefit from having a better understanding of how their work affects their taxes. People involved in the gig economy earn income as freelancers, independent workers, or employees. They use technology to provide goods or services, including renting out a home or spare bedroom and giving car rides. Here are some things taxpayers should know about the gig economy and taxes:
This income may be taxable even if the indivudual taxpayer doesn't receive a Form 1099-MISC, Form 1099-K, or Form W-2. This income may also be taxable if the activity is only part-time, side work, or if you’re paid in cash. This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional. Tip adapted from IRS.gov10 |
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Show Your Heart Some LoveWhile age, genetics, and family history are risk factors related to heart disease, some lifestyle factors are associated with better heart health. Discuss any medical concerns with your healthcare provider before beginning any diet or fitness regimen. The following information is not a substitute for medical advice:
While not all risk factors are controllable, some are. The list above is not comprehensive. Give your heart some love, and talk to your doctor about the best ways to care for it. Tip adapted from MedlinePlus.gov11 |
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It can be less thick than your finger when it folds, yet as thick as what it carries when it holds. What is it? Last Week's Riddle: Note this sequence: B, C, D, E, G. What letter should then follow as the sixth letter in this series? Answer: P, the next rhyming letter in the sequence. |
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Giant Panda (Ailuropoda Melanoleuca) Wolong National Nature Reserve, China |
Footnotes And Sources1. WSJ.com, February 6, 2026 12. MT Newswires, YCharts.com Feb 2-6, 2026 |
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