OPENING CALL
Nasdaq futures were leading premarket losses Tuesday, with the long weekend doing little to calm investor jitters over the disruptive potential of AI.
The tech-heavy index has closed in the red for five straight weeks, dragged down by concerns about big spending on AI as well as a series of panic selloffs that have hit industries including software, trucking, and commercial real estate.
"It's clear that the market hasn't yet shaken off this theme," Deutsche Bank said.
This week's holiday-shortened data docket consists mostly of reports delayed by the government shutdown.
Friday's advance fourth-quarter GDP release will give a baseline for growth expectations in early 2026.
Around a quarter of S&P 500 companies have yet to report fourth-quarter results. Of those that have, roughly 80% have matched or beaten expectations, according to LSEG.
Stocks to Watch
Alibaba released an update to its flagship AI model on Monday. Qwen 3.5 handles images and videos better than its predecessors, according to Alibaba.
Hapag-Lloyd is buying its Israeli competitor Zim Integrated Shipping Services for $4.2 billion. Zim ADRs surged over one-third ahead of the open.
Thomas Pritzker is retiring as executive chairman of Hyatt Hotels following the release of documents detailing his association with Jeffrey Epstein. Shares slipped about 1.5% premarket.
Infosys will work with Anthropic to develop and deliver AI services to businesses. Infosys's American depositary receipts rose roughly 3.5% in premarket trading.
Activist Elliott Investment Management has built a more than 10% stake in Norwegian Cruise Line and plans to push for changes to turn it around, The Wall Street Journal reported. The stock rallied 6.5% premarket.
Prologis rallied in offhours trading after the world's largest owner of industrial real estate raised its dividend.
Activist investor Starboard Value plans to push for a shake-up of Tripadvisor , the WSJ reported.
UnitedHealth CEO Stephen Hemsley made private side bets on healthcare startups. UnitedHealth said he abides by conflict-of-interest policies.
Watch For:
Canada CPI for January; Federal Reserve Governor Michael Barr and FRB San Francisco President Mary Daly speak on AI and the economy; earnings from Medtronic, Palo Alto and Toll Brothers
Today's Top Headlines/Must Reads:
- Micron Is Spending $200 Billion to Break the AI Memory Bottleneck
- How Jet Engines Are Powering Data Centers
- Lenders to Commercial Real Estate Owners: Pay Up Now
MARKET WRAPS
Forex:
The dollar rose against a basket of currencies, supported by safe-haven flows as U.S. traders return from Monday's holiday.
The euro edged lower against the dollar. Danske Bank said it was likely to rise against the greenback in the coming year as the gap between U.S. and eurozone real interest rates adjusted for inflation narrows.
Sterling weakened against the dollar and euro after the weaker-than-expected U.K. jobs data.
Bonds:
Treasury yields fell across maturities, as markets continue to anticipate interest-rate cuts by the Fed this year following Friday's inflation data.
On drivers other than data, Danske Bank pointed to declining investor concerns over the Fed's independence following the nomination of Kevin Warsh as its next chair, and easing trade war uncertainty.
The Revacy Fund said Treasury yields could decline further if new data strengthen expectations of more Fed rate cuts.
"Should those indicators validate a broader slowdown in inflation, downward pressure on both yields and the dollar could extend in the sessions ahead."
A Bank of America survey suggested that the nomination of Warsh would likely lead to higher Treasury yields and a lower dollar.
Municipal bonds have started the new year in spectacular fashion after underwhelming in 2025, MFS Investment Management noted.
It said equity market volatility may have boosted demand for more defensive assets, like munis.
Energy:
Oil prices fell ahead of direct talks between the U.S. and Iran in Geneva later on Tuesday.
"Thin liquidity due to Lunar New Year holidays has limited broader price moves."
However, tensions remain high with prices likely to stay volatile in the near term.
Investors are also watching for U.S.-brokered talks between Russian and Ukrainian officials.
Metals:
Gold prices slipped back below $5,000 in thin trading, with much of Asia closed for the Lunar New Year and U.S. markets shut on Monday.
"Liquidity conditions remain thin, particularly across metals," Sucden Financial said.
"Unless speculative sentiment re-emerges decisively, this backdrop is likely to keep price action contained within relatively narrow ranges over the near term."
Base metals
Prices were mixed as liquidity remained thin due to the Lunar New Year holiday across Asia.
LME copper futures were down, pressured by weakening demand and higher prices.
Aluminum rose following reports that Trump could roll back tariffs on the metal.
"That headline continues to hang over sentiment, adding another layer of uncertainty to the broader metals complex," ING said.
TODAY'S TOP HEADLINES
Infosys, Anthropic Partner on AI for Telecom, Finance, Manufacturing
Infosys has agreed to work with Anthropic to develop and deliver artificial-intelligence services to businesses in complex, regulated industries.
The Indian information technology services provider said Tuesday that the collaboration will start in telecommunications and expand to financial services, manufacturing and software development.
Move Over, Super Bowl: AI Giants Turn China's Lunar New Year Into a Giveaway Blitz
SINGAPORE-This year's Lunar New Year holiday is turning into China's version of the Super Bowl: an annual event taken over by artificial-intelligence companies' marketing.
With the year of the horse beginning Tuesday, AI developers are offering free tea, free use of cars and even robots in promotions aimed at locking in users.
Activist Elliott Builds Big Stake in Norwegian Cruise Line
Activist Elliott Investment Management has built a more than 10% stake in Norwegian Cruise Line and plans to push for changes to turn the struggling cruise-ship operator around, according to people familiar with the matter.
Goldman Sachs Plans to Scrap DEI Criteria for Its Board
Last year, Goldman Sachs dropped a commitment to support board diversity for clients it was taking public. Now it plans to drop diversity criteria for its own board.
The Wall Street giant is preparing to remove race, gender identity, sexual orientation and other diversity factors from the criteria its board will consider when identifying potential candidates, according to people familiar with the matter.
U.S. Tech Futures Down Ahead of Shortened Trading Week
U.S. equity futures were down in subdued trade as investors enter a shortened trading week after the Presidents Day holiday. Chinese and Korean markets were among those closed for Lunar New Year, while equities in Japan fell. In Europe, a quiet start to trading saw blue-chip indexes mostly rise. Continuing anxiety around both artificial-intelligence spending and competition lingered in the U.S., with futures tied to the tech-dominated Nasdaq falling 0.7%.
Oil prices slipped in early trading ahead of direct talks between the U.S. and Iran in Geneva later on Tuesday, while the dollar climbed to an 11-day high against a basket of currencies ahead of a busy week of economic data. Gold held below $5,000 a troy ounce. Traders await U.S. ADP employment figures due Tuesday, as well as inflation readings from the U.S. and Japan later this week.
The AI Selloff Has Covid Parallels, Say Analysts. These Sectors Can Survive.
It's not just U.S. investors getting jittery about the impact of artificial intelligence on stocks.
European markets have held up slightly better than their U.S. counterparts in recent weeks but the nerves still seem to be creeping in. Morgan Stanley analysts estimated that the market is ascribing a risk of AI disruption to around 24% of the weight of the MSCI Europe index, up from just 4% a month ago.
The shale boom that made the U.S. the world's top oil producer is nearing a crucial turning point
The shale-oil revolution that transformed the U.S. into the world's top oil producer is entering a new phase - one that could see America's hard-fought lead in energy erode in fewer than five years as oil production growth peters out.
The issue is a simple one. Shale well output declines rapidly. On average, a well produces roughly 80% of its total output within the first two years, and production from a typical new well in the Permian's Midland Basin plunges nearly by 90% after three years, according to the American Petroleum Institute.
Jesse Jackson, Civil-Rights Leader and Democratic Presidential Candidate, Dies at 84
The Rev. Jesse Jackson, a longtime civil-rights activist and Democratic political leader, has died. He was 84.
A gifted public speaker, Jackson was known for fiery rhetoric, often advocating for the interests of working people, especially minorities. In one of his most famous speeches, delivered at the Democratic National Convention in Atlanta in 1988, he urged different American groups-Black and white people, liberals and conservatives-to seek common ground.
In Iran, Payment Plans for Groceries Signal a Deepening Economic Crisis
Iran's economic meltdown, which around the new year triggered protests that threatened the regime's grasp on power, is getting worse.
A harsh crackdown on the demonstrations and the threat of U.S. military intervention have dragged the country's currency lower, crippling daily life for millions.
RFK Jr.'s Next Overhaul: America's Baby Formula Guidelines
WASHINGTON-When Health and Human Services Secretary Robert F. Kennedy Jr. summoned infant-formula executives to Washington last spring, he arrived with a list of questions about seed oils, heavy metals and how U.S. formula stacks up against Europe's.
Kennedy's concerns echoed those of parents aligned with the "Make America Healthy Again" movement as he prepared to launch "Operation Stork Speed," the Trump administration's sweeping review of U.S. formula ingredients.
Write to gareth.mcpherson@wsj.com
TODAY IN CANADA
Earnings (4Q):
Dream Impact
Gibson Energy
iA Financial
RB Global Inc.
Economic Indicators (0830 ET):
International transactions in securities
Wholesale trade for December
CPI for January
Stocks to Watch:
Dye & Durham 2Q Rev C$107M; 2Q Adj Ebitda C$50.4M; 2Q Loss/Shr C$0.32
HIVE Digital Technologies 3Q Revenue $93.1M
Wheaton Precious Metals 2025 Production About 692,000 Gold Equivalent; Sees 2026 Production 860,000 to 940,000 Gold Equivalent Ounces; Forecasts Growth of About 50% to 1.2M Gold Equivalent Ounces by 2030
Expected Major Events for Tuesday
04:30/JPN: Dec Tertiary Industry Index
07:00/GER: Jan CPI
07:00/UK: Jan UK monthly unemployment figures
09:00/ITA: Dec Foreign Trade EU
09:30/UK: Jan Monthly Insolvency statistics
09:30/UK: Nov Card Spending statistics
10:05/GER: Feb ZEW Indicator of Economic Sentiment
13:30/CAN: Dec Wholesale trade
13:30/CAN: Dec International transactions in securities
13:30/US: Feb Empire State Manufacturing Survey
13:30/CAN: Jan CPI
15:00/US: Jan Employment Trends Index
15:00/US: Jan Online Help Wanted Index
15:00/US: Feb NAHB Housing Market Index
23:50/JPN: Jan Provisional Trade Statistics for the Month
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Tuesday
Arvinas Inc $(ARVN)$ is expected to report $-0.51 for 4Q.
Axcelis Technologies Inc $(ACLS)$ is expected to report $0.83 for 4Q.
Builders FirstSource Inc (BLDR) is expected to report $0.72 for 4Q.
CEVA Inc $(CEVA)$ is expected to report $-0.01 for 4Q.
CT Real Estate Investment Trust (CRT.UN.T) is expected to report for 4Q.
Constellation Energy Corp (CEG) is expected to report $2.28 for 4Q.
Cyanotech Corp (CYAN) is expected to report for 3Q.
DTE Energy Co $(DTE)$ is expected to report $1.67 for 4Q.
Donnelley Financial Solutions Inc $(DFIN)$ is expected to report $0.29 for 4Q.
Energy Transfer LP (ET) is expected to report $0.37 for 4Q.
Fluor Corp $(FLR)$ is expected to report $0.38 for 4Q.
Franklin Electric Co Inc $(FELE)$ is expected to report $0.87 for 4Q.
Genuine Parts Co (GPC) is expected to report $1.77 for 4Q.
Great Lakes Dredge & Dock Corp $(GLDD)$ is expected to report $0.18 for 4Q.
Herc Holdings Inc $(HRI)$ is expected to report $1.70 for 4Q.
Hillman Solutions Corp $(HLMN)$ is expected to report $0.01 for 4Q.
Itron Inc $(ITRI)$ is expected to report $2.04 for 4Q.
Kenvue Inc (KVUE) is expected to report $0.17 for 4Q.
Kite Realty Group Trust $(KRG)$ is expected to report $0.06 for 4Q.
Knife River Corp (KNF) is expected to report $0.38 for 4Q.
Krystal Biotech Inc (KRYS) is expected to report $0.87 for 4Q.
LGI Homes Inc (LGIH) is expected to report $0.91 for 4Q.
Labcorp Holdings Inc $(LH)$ is expected to report for 4Q.
Leidos Holdings Inc (LDOS) is expected to report $2.45 for 4Q.
Leslie's Inc $(LESL)$ is expected to report for 1Q.
Louisiana-Pacific Corp $(LPX)$ is expected to report $-0.05 for 4Q.
Medtronic PLC $(MDT)$ is expected to report $1.01 for 3Q.
National Energy Services Reunited Corp $(NESR)$ is expected to report $0.25 for 4Q.
NeoGenomics Inc (NEO) is expected to report $-0.14 for 4Q.
Pitney Bowes Inc $(PBI)$ is expected to report $0.38 for 4Q.
Somnigroup International Inc $(SGI)$ is expected to report $0.72 for 4Q.
SunCoke Energy Inc (SXC) is expected to report $0.09 for 4Q.
Sunoco LP $(SUN)$ is expected to report $0.67 for 4Q.
SunocoCorp LLC (SUNC) is expected to report for 4Q.
TPG Mortgage Investment Trust Inc $(MITT)$ is expected to report $0.23 for 4Q.
USA Compression Partners LP $(USAC)$ is expected to report $0.29 for 4Q.
Valmont Industries Inc $(VMI)$ is expected to report $4.94 for 4Q.
Vulcan Materials Co $(VMC)$ is expected to report $2.12 for 4Q.
Watsco Inc (WSO,WSOB) is expected to report $1.94 for 4Q.
Waystar Holding Corp $(WAY)$ is expected to report for 4Q.
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ANALYST RATINGS ACTIONS
Airbnb Raised to Buy From Hold by Deutsche Bank
Airbnb Raised to Outperform From In-Line by Evercore ISI Group
Allegro MicroSystems Raised to Overweight From Equal-Weight by Morgan Stanley
American Electric Power Raised to Outperform From Peer Perform by Wolfe Research
Analog Devices Raised to Overweight From Equal-Weight by Barclays
Church & Dwight Raised to Neutral From Sell by Rothschild & Co
CrowdStrike Holdings Raised to Buy From Hold by HSBC
Dollar Tree Cut to Underperform From Market Perform by BMO Capital
Domo Cut to Market Underperform From Market Outperform by Citizens
Eagle Materials Cut to Underweight From Neutral by JP Morgan
Edison International Cut to Neutral From Buy by UBS
Evergy Cut to Neutral From Buy by UBS
Fortune Brands Innovation Cut to Equal-Weight From Overweight by Barclays
Fortune Brands Innovation Cut to Neutral From Outperform by Zelman & Assoc
Fortune Brands Innovation Cut to Peer Perform From Outperform by Wolfe Research
Freeport-McMoRan Raised to Buy From Hold by Argus Research
GQG Partners Upgraded to Accumulate from Hold by Morgans
Hercules Capital Cut to Neutral From Overweight by Piper Sandler
Inspire Medical Systems Cut to Peer Perform From Outperform by Wolfe Research
Intl Flavors & Fragrances Raised to Outperform From Perform by Oppenheimer
IPG Photonics Cut to Outperform From Strong Buy by Raymond James
Itron Cut to Neutral From Buy by Guggenheim
McDonald's Raised to Buy From Hold by Argus Research
Medpace Holdings Raised to Buy From Hold by Jefferies
Mitek Raised to Buy From Hold by Jefferies
Neptune Insurance Hldgs Raised to Outperform From Market Perform by BMO Capital
Norwegian Cruise Line Cut to Neutral From Overweight by JP Morgan
Norwegian Cruise Line Stock Falls After CEO Appointment
Ormat Technologies Cut to Hold From Buy by Jefferies
Pinterest Cut to Hold From Buy by Loop Capital
Pinterest Cut to In-Line From Outperform by Evercore ISI Group
Pinterest Cut to Neutral From Buy by B of A Securities
Pinterest Cut to Neutral From Buy by Citigroup
Pinterest Cut to Neutral From Outperform by Baird
Pinterest Cut to Neutral From Overweight by JP Morgan
Pinterest Cut to Sector Perform From Outperform by RBC Capital
Rayonier Raised to Strong Buy From Outperform by Raymond James
Rivian Automotive Raised to Buy From Hold by Deutsche Bank
Rivian Automotive Raised to Neutral From Sell by UBS
Roku Raised to Buy From Neutral by Rosenblatt
SPX Technologies Raised to Buy From Neutral by B of A Securities
Steelmakers Fall on Report Trump Considering Tariff Rollback
Synchrony Financial Raised to Outperform From Neutral by Baird
Upstart Holdings Cut to Market Underperform From Market Perform by Citizens
Upstart Holdings Raised to Neutral From Sell by Goldman Sachs
US Foods Holding Cut to Neutral From Overweight by Piper Sandler
Vertex Pharmaceuticals Raised to Outperform From Perform by Oppenheimer
Warner Music Group Raised to Sector Outperform From Sector Perform by Scotiabank
Webster Cut to Neutral From Buy by Citigroup
Wells Fargo Raised to Neutral From Underperform by Baird
Xcel Energy Raised to Buy From Neutral by UBS
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
February 17, 2026 06:03 ET (11:03 GMT)
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