On February 5, futures for the S&P 500 took a notable downturn, largely due to reported weaknesses within the Big Tech sector. The decline was punctuated by Bitcoin, which fell below $70,000—marking its lowest value since November 2024—amid a growing crypto sell-off. The precious metals market also felt the impact, with silver prices plummeting 10% in early trading. Oil prices further dropped by 2.5% amid escalating concerns over potential conflicts involving the U.S. and Iran. Conversely, increased purchases in safe-haven bonds led to a decrease in yields.
The labor market continues to show signs of distress. Outplacement firm Challenger, Gray & Christmas reported the highest number of planned layoffs at American corporations for January since the global financial crisis. Additionally, hiring intentions reached their lowest levels during this period. This news followed a lackluster report on private-sector job growth from ADP. The upcoming government employment report was postponed due to a brief government shutdown earlier in the week.
In corporate news, Alphabet, Google’s parent company, saw numerous Wall Street analysts raise their price targets after the company reported impressive quarterly results. A lesser-known advantage for Alphabet is the cash tax benefits stemming from the One Big Beautiful Bill Act. Despite management’s indication of increased spending through 2026 to stay competitive in the evolving AI landscape, Alphabet’s shares experienced declines of more than 5% in pre-market trading as the overall market moved away from technology stocks.
Sony also reported quarterly earnings that exceeded expectations, despite facing rising costs of memory due to high demand from AI sectors. However, this reliance on memory chips may present challenges for the company in the future. In a contrasting move, Bank of America downgraded Qualcomm’s stock from buy to hold and slashed its price target from $215 to $155, largely attributing this downgrade to the tech giant’s challenges in a weakening handset market. Premarket shares of Qualcomm fell over 11%.
Boston Scientific experienced a steep decline, with its stock dropping 17.5%—its largest single-day drop in 25 years—after unveiling quarterly results that disappointed investors. Citi has adjusted its price target for the company down to $102 while maintaining a buy rating, pointing out increased competition in the pulsed field ablation market from competitors like Johnson & Johnson and Medtronic.
On a positive note, BMO Capital raised its price target for Eli Lilly from $1,200 to $1,300, continuing to maintain a buy rating. The firm anticipates ongoing sales growth in the incretin category, despite facing pricing pressures. Lilly’s strong quarter attributed to GLP-1 sales had initially boosted its stock more than 10%, although it subsequently gave back roughly half of those gains.
Bristol Myers, in early trading, witnessed a 2% increase after releasing a quarterly earnings report that surpassed expectations, coupled with bullish guidance. Analysts noted that the company’s performance could improve if its schizophrenia treatment, Cobenfy, received insurance coverage.
In logistics, Old Dominion’s stock was downgraded to sell from hold, as analysts cited the firm’s post-earnings valuation. Yet, they increased their price target to $204 from $166, signaling a belief in a robust freight environment moving forward.
Lastly, Citi added Boeing to its “upside 30-day catalyst watch” list after analysts reported notable improvements in the aircraft manufacturer’s deliveries beginning January 28. While maintaining a buy rating, there are mixed feelings about the immediate stock outlook.
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