Stock futures saw an uptick as new data from the January jobs report revealed a surprising addition of 130,000 jobs, far surpassing the consensus estimate of 65,000. This growth led to a drop in the unemployment rate from 4.4% in December to 4.3%. Additionally, average hourly earnings saw a year-over-year increase of 3.7%, spurring investor optimism.
In company-specific news, shares of Vertiv surged more than 17% following a stellar fourth-quarter performance. The company reported a remarkable 252% year-over-year increase in organic orders, alongside a 117% jump from the prior quarter, attributing this growth to strong momentum in the data center market, which may influence gains for other companies in the sector, including Eaton.
Cloudflare also enjoyed a robust day in the market, with shares rallying over 13% after better-than-expected fourth-quarter results. The company announced a revenue forecast for 2026 that surpassed Wall Street expectations, prompting Baird to upgrade the stock to a buy-equivalent outperform.
Conversely, Lyft saw its shares plummet over 15%. The ride-hailing giant fell short of expectations in terms of fourth-quarter revenues and active riders, and offered a subdued adjusted EBITDA forecast that failed to instill confidence among investors.
In the food industry, Kraft Heinz’s shares slipped by 6% after the company announced a pause in its breakup plans, coupled with disappointing guidance for 2026. New CEO Steve Cahillane remained optimistic, stating that many of the company’s challenges are manageable and within their control. Kraft Heinz plans to invest $600 million across marketing, sales, and research and development to revitalize its U.S. operations.
Baird upgraded Dick’s Sporting Goods to a buy rating, expressing confidence in the potential for a multi-year recovery for its Foot Locker brand, in addition to ongoing positive momentum at its core stores. This development could bode well for Nike, a notable brand in the sports retail space.
On the tech front, UBS raised its price target for Nvidia from $235 to $245 ahead of its upcoming earnings report, indicating a projected upside of approximately 30%. Analysts anticipate that Nvidia will report revenues of around $2.5 billion, exceeding existing guidance.
DuPont also garnered attention, with several analysts lifting their price targets following a stronger-than-expected earnings report. Mizuho increased its target from $46 to $52, while Citi and Jefferies both adjusted theirs to $59 from $50 and $51, respectively.
In a strategic move, activist firm Ancora urged the Warner Bros. Discovery board to reject an offer from Netflix and consider an alliance with Paramount Skydance instead. Ancora has built up a $200 million stake in Warner Bros. Discovery, reflecting their vested interest in the direction of the company’s future partnerships.
Lastly, Robinhood faced challenges, with shares dropping by 10% after falling short of fourth-quarter revenue estimates. The ongoing weakness in cryptocurrency markets has adversely impacted the fintech app. Despite these headwinds, analysts generally maintain a positive outlook on Robinhood’s long-term prospects.
Investors are encouraged to stay informed about market trends and company performances, as these fluctuations can impact investment strategies.
