MARKET WRAPS

STOCKS: Stocks surged, with the Dow Jones Industrial Average hitting 50000 for the first time, as fears about artificial intelligence making large swathes of the software industry obsolete subsided.

TREASURYS: Treasury yields were mixed as increased risk appetite was offset by economic concerns.

FOREX: The U.S. dollar fell against peers as safe-haven demand waned.

COMMODITIES: Oil futures settled higher after a first day of talks between the U.S. and Iran ended with the sides agreeing to further discussions.

HEADLINES

Justice Department Casts Wide Net on Netflix's Business Practices in Merger Probe

The Justice Department is investigating whether Netflix has engaged in anticompetitive tactics as it probes the streaming giant's proposed acquisition of Warner Discovery's studios and HBO Max streaming service, according to a civil subpoena viewed by The Wall Street Journal.

Questioning how Netflix competes with rivals suggests the department is looking at whether its planned Warner deal could entrench its market power, or lead to a monopoly in the future. U.S. law gives enforcers broad power to oppose mergers that could lead to a monopoly.

"Describe any other exclusionary conduct on the part of Netflix that would reasonably appear capable of entrenching market or monopoly power, " the agency asked in the subpoena, sent to another entertainment company.

Consumer Sentiment Has Climbed in February, Michigan Survey Says

Consumer sentiment ticked higher in February, according to a preliminary reading from the University of Michigan's monthly survey, a positive signal that Americans' economic mood is improving despite longstanding anxieties about inflation and the job market.

The University of Michigan's sentiment gauge crept up to 57.3 in February, from 56.4 in January. The index was mired near all-time lows late last year, but has gained stronger footing in the past few months. Analysts polled by The Wall Street Journal were expecting a gloomier reading of 55 this month.

The numbers show preliminary results from the initial period of the survey's outreach to households. A final February number will land later in the month.

Jeep Maker Stellantis Books $26 Billion Charges in EV Reset

Jeep maker Stellantis said it would book charges of about $26 billion, the latest automaker to flush out massive investments in electric vehicles that many Americans are still reluctant to buy.

The company's Milan-listed shares fell 25% to their lowest level since its creation from the 2021 merger of Fiat Chrysler Automobiles and Peugeot maker PSA Group.

Chief Executive Antonio Filosa said the write-downs "largely reflect the cost of overestimating the pace of the energy transition that distanced us from many car buyers' real-world needs, means and desires."

Biogen Revenue Down as Multiple Sclerosis Sales Slide

Biogen swung to a loss as results were hurt by a double-digit decline in revenue from its core multiple sclerosis treatments.

The Cambridge, Mass., biotechnology company said it expects revenue to continue to decline in 2026 as its multiple sclerosis treatment portfolio reaches the end of its period of exclusivity.

"What we've been trying to do is grow our new products faster than the decline of our legacy products," Chief Executive Christopher Viehbacher said in an interview.

Trump's New Tax Law Saved Amazon Billions

Republicans' new tax law delivered for Amazon.com, which saw its U.S. corporate income taxes shrink by more than half in 2025 while its profits climbed, offering one of the clearest examples yet of how the largest American companies are benefiting.

The company's current U.S. taxes, an accounting measure of taxes incurred last year, declined to $1.2 billion from $9 billion, according to a securities filing released Friday. Meanwhile, Amazon's pretax U.S. profit increased by 44.5%, to $89.5 billion. On a cash basis, the company paid $2.8 billion in federal income taxes last year after paying more than $7 billion in each of the prior two years.

The law, signed by President Trump in July, is boosting individuals' tax refunds this year and made two major changes that quickly helped Amazon and other corporations.

Philip Morris Leans Into Smoke-Free to Fuel Growth

Consumers craving a nicotine hit increasingly want it without smoke, a trend that is transforming Philip Morris International's business.

The tobacco company on Friday said its smoke-free business last year accounted for about 42% of revenue, or nearly $17 billion. At the same time, the unit has roughly doubled its profitability over the past five years. It made up about 43% of the company's bottom line in 2025.

"Our business is increasingly smoke free," Chief Executive Jacek Olczak said on a call with analysts Friday.

Under Armour Lifts Outlook Despite Tariff Pressures

Under Armour expects revenue to fall at the milder end of its fiscal 2026 forecast, even as weak demand in its key North American and Asia-Pacific markets and tariff pressures persist into the new year.

Shares were up 4% to $6.53 in premarket trading.

The athletic-apparel company on Friday said it expects revenue to decline about 4% in fiscal 2026, compared with a previous outlook of between 4% and 5% decline. Within its markets, North America and Asia-Pacific are expected to fall about 8% and 6%, respectively, easing up from previous expectations of high-single-digit declines.

AutoNation Revenue Declines on Weaker New, Used Vehicle Sales

AutoNation reported lower fourth-quarter revenue, weighed down by fewer comparable sales of both new and used vehicles.

The company posted net income of $172.1 million, down from $186.1 million the year before. On a per-share basis, earnings rose to $4.70 from $4.64.

Adjusted earnings were $5.08 a share. Analysts polled by FactSet had expected $4.85 a share.

Centene Swings to Loss Despite Higher Revenue

Centene swung to a fourth-quarter loss despite logging higher revenue, as the company continues working to restore profitability and stabilize its Medicaid business.

The managed-care company on Friday posted a loss of $1.1 billion, or $2.24 a share, compared with a profit of $283 million, or 56 cents a share, a year earlier.

Stripping out certain one-time items-such as a $513 million impairment charge tied to the divestiture of its remaining Magellan Health businesses-Centene reported a loss of $1.19 a share. Analysts polled by FactSet expected an adjusted loss of $1.22 a share.

Uber Ordered to Pay $8.5 Million in Passenger Sexual Assault Case

Uber Technologies was ordered to pay $8.5 million in compensatory damages after a jury found the company liable for the 2023 sexual assault of a 19-year-old passenger.

The passenger, Jaylynn Dean, was picked up by Uber driver Hassan Turray shortly after midnight on Nov. 15, 2023 while she was alone and intoxicated. Turay then stopped the ride and assaulted Dean in the backseat while she was incapacitated, Dean's lawyers said Friday, citing testimony and evidence from the trial.

The jury found that Uber was not liable for negligence or design defects, but was liable for apparent agency, according to court documents. It did not find Uber liable for punitive damages.

TALKING POINT Gary Roth: What United Capital Taught Me About Building a New Firm

Much has been made of the wealth management industry's organic-growth struggles, with many registered investment advisor firms relying on the long bull market to grow the assets they manage. But why does that matter? For one thing, says Gary Roth, these firms' market value is subject to a factor outside their control. Another is that stagnating businesses don't attract talent, he says. "If you want a next-generation team that ultimately will allow you to retire and take great care of your clients, but the business is declining, they won't be motivated to be there," says Roth, a longtime executive at United Capital Financial Partners and Goldman Sachs who co-founded and is co-CEO of Modern Wealth Management, an acquisition-minded RIA firm with $11 billion in assets under management.

Speaking with Barron's Advisor, Roth says being in the acquisition market has provided firsthand confirmation of most firms' anemic organic growth. He explains how Modern Wealth, whose leadership is based in California and operations are anchored in Lenexa, Kan., has invested heavily in a lead funnel designed to get acquired firms growing. And he lays out the business's acquisition goals for 2026.

How did you get started in the industry? My first job out of college was at Newsweek magazine. This was in the early '90s when Newsweek had a circulation of about three million. I thought I wanted to be a journalist. Long story short, I wound up jumping into the nascent world of what were then called internet or web businesses, around 1995. We developed a niche capability of one of the first cloud computing firms, for financial services. It was an application we built at the behest of an insurance broker, taking legacy software and making it accessible over the internet. I did that for seven or eight years, and then through a series of events wound up being part of the start-up management team for United Capital starting in 2005. We were one of the first of the acquisitive firms building a national RIA business. I held a variety of C-suite roles at various points: COO, CFO, chief business officer. We sold to Goldman Sachs in 2019, and I remained with the firm until early 2022, when I left to ponder what I wanted to do next. Eventually I started chatting with a couple of former colleagues, Mike Capelle and Jason Gordo, about what it would look like if we started a new RIA. That led to the launch of Modern Wealth Management in the spring of 2023. We're a midsize firm at this point, with around $11 billion of AUM with 19 offices around the country, and we're continuing to grow, both by acquisition and

organically.

Was the concept for Modern Wealth to bring something different to the industry? The goal wasn't to simply replicate what we had done in the past. All our planning was built around thinking about what experiences we wanted to bring to the new business and what we wanted to do differently, both in response to what had worked well and hadn't worked well.

What are the characteristics of your acquisition targets? We like the acquisition model in terms of a way to grow and add good people, geographic depth and breadth, and new capabilities. We've acquired firms that offer traditional planning and investment advice, but also firms that have tax planning and tax prep capabilities alongside that. We've acquired firms that have 401(k) and retirement-plan consulting services. We can then make those services available to all advisors and their clients.

One of our views from prelaunch was a bit contrarian. Back in 2022 we told potential investors-it was literally on page one of our business plan-you're going to want us to use the capital to acquire all of these great, organically growing firms. And we're going to tell you that we're not, for a couple of reasons. One, there aren't a lot of great organically growing firms. And two, if they are growing organically at very high rates, either they're likely going to be too expensive or they have no reason to sell. It was deliberately a bit provocative, but it's also true, and continues to be true in 2026. We're not necessarily looking for teams that are already growing at high organic rates. We're looking for teams that have the underlying desire and capabilities to grow, and for whatever reasons have gotten away from it. We want to partner with firms that are going to invest in organic growth.

--Steve Garmhausen, Barron's

Expected Major Events for Monday

00:01/UK: Jan KPMG and REC UK Report on Jobs

04:30/JPN: Jan Corporate Insolvencies

05:00/JPN: Jan Economy Watchers Survey

11:00/FRA: Dec OECD CPI

15:00/US: Jan Employment Trends Index

23:50/JPN: Jan Money Stock, Broadly-defined Liquidity

All times in GMT. Powered by Onclusive and Dow Jones.

Expected Earnings for Monday

AECOM $(ACM)$ is expected to report $1.20 for 1Q.

Alexander's Inc $(ALX)$ is expected to report for 4Q.

Amentum Holdings Inc $(AMTM)$ is expected to report for 1Q.

Amkor Technology Inc $(AMKR)$ is expected to report $0.44 for 4Q.

Anavex Life Sciences Corp (AVXL) is expected to report $-0.12 for 1Q.

Apollo Global Management Inc $(APO)$ is expected to report $1.88 for 4Q.

Becton Dickinson & Co $(BDX)$ is expected to report $0.52 for 1Q.

Bengal Energy Ltd (BNG.T) is expected to report for 3Q.

CNA Financial Corp $(CNA)$ is expected to report $1.34 for 4Q.

Cincinnati Financial Corp $(CINF)$ is expected to report $2.73 for 4Q.

Cleveland-Cliffs Inc $(CLF)$ is expected to report $-0.55 for 4Q.

Columbus McKinnon Corp $(CMCO)$ is expected to report $0.29 for 3Q.

Curbline Properties Corp (CURB) is expected to report for 4Q.

DLH Holdings Corp (DLHC) is expected to report $-0.07 for 1Q.

Dynatrace Inc (DT) is expected to report $0.19 for 3Q.

Edgewell Personal Care Co (EPC) is expected to report $-0.29 for 1Q.

FRMO Corp (FRMO) is expected to report for 2Q.

GAMCO Investors Inc (GAMI) is expected to report for 4Q.

Hain Celestial Group Inc $(HAIN)$ is expected to report $-0.03 for 2Q.

Hillenbrand Inc $(HI)$ is expected to report $0.62 for 1Q.

Ichor Holdings Ltd $(ICHR)$ is expected to report $-0.23 for 4Q.

Inotiv Inc $(NOTV)$ is expected to report $-0.55 for 1Q.

Kilroy Realty Corp $(KRC)$ is expected to report $0.28 for 4Q.

Kyndryl Holdings Inc (KD) is expected to report $0.47 for 3Q.

Loews Corp (L) is expected to report $0.72 for 4Q.

Motorcar Parts of America Inc (MPAA) is expected to report $-0.12 for 3Q.

ON Semiconductor Corp $(ON)$ is expected to report $0.61 for 4Q.

Outdoor Holding Co $(POWW)$ is expected to report $-0.02 for 3Q.

PennantPark Floating Rate Capital Ltd (PFLT) is expected to report $0.30 for 1Q.

PennantPark Investment $(PNNT)$ is expected to report $0.14 for 1Q.

PowerFleet Inc $(AIOT)$ is expected to report $0.00 for 3Q.

PrairieSky Royalty Ltd (PSK.T) is expected to report for 4Q.

Principal Financial Group Inc $(PFG)$ is expected to report $2.24 for 4Q.

Prospect Capital Corp $(PSEC)$ is expected to report $0.10 for 2Q.

Radiant Logistics Inc (RLGT) is expected to report $0.06 for 2Q.

Sally Beauty Holdings Inc $(SBH)$ is expected to report $0.47 for 1Q.

Simpson Manufacturing Co (SSD) is expected to report $1.22 for 4Q.

TPG Inc $(TPG)$ is expected to report $0.67 for 4Q.

UDR Inc $(UDR)$ is expected to report $0.15 for 4Q.

Universal Corp $(UVV)$ is expected to report $1.92 for 3Q.

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(END) Dow Jones Newswires

February 06, 2026 16:47 ET (21:47 GMT)

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