Stock Market Update

Equity futures point to a modestly higher opening this morning after the major averages finished mostly lower in yesterday's action. Mega-cap and tech names saw some of their recent momentum stalled, while the broader market was mixed. The DJIA managed to capture record highs for the third consecutive session. 

The market eagerly anticipates this morning's delayed release of the January Employment Situation Report, with expectations for an uptick in nonfarm payrolls (Briefing.com consensus 68K; prior: 50K). The report is particularly important as it includes the annual benchmark revisions for the prior year, which could fundamentally shift the market's view of how strong the labor market truly is. 

Market participants are not expecting another rate cut until June of this year (according to the CME FedWatch tool), with recent Fed commentary leaning hawkish towards keeping rates unchanged for some time. 

Investors also have another sizable batch of earnings reports to assess this morning, which continue to be a catalyst for some notable moves this week. Around 75 S&P 500 companies are set to report by the end of the week. 

In corporate news:

• The Trump administration will allow companies to provide supplies for Venezuela oil production, according to The Wall Street Journal.
• Ford Motor (F 13.80, +0.23, +1.7%) missed EPS expectations by $0.05 and beat revenue expectations. 
• Robinhood Markets (HOOD 78.63, -6.97, -8.1%) beat EPS expectations by $0.03 and missed on revenues. 
• Shopify (SHOP 141.80, +14.56, +11.4%) beat revenue expectations and authorized a new share repurchase program up to $2 billion. 
• Ancora Holdings builds a $200 million stake in Warner Brothers (WBD 28.04, +0.24, +0.9%) and will oppose the Netflix (NFLX 82.29, +0.08, +0.1%) deal, according to The Wall Street Journal. 

Reviewing overnight developments: 

Equity indices in the Asia-Pacific region had a mostly higher showing on Wednesday while Japan's Nikkei was closed for National Founding Day. Japan's Nikkei: HOLIDAY, Hong Kong's Hang Seng: +0.3%, China's Shanghai Composite: +0.1%, India's Sensex: -0.1%, South Korea's Kospi: +1.0%, Australia's ASX All Ordinaries: +1.6%.

In news:

• Even with the Nikkei's closure, the yen continued this week's show of strength, approaching its late-January high against the dollar in the 152 area.
• There was some focus on an observation from Standard & Poor's that outstanding JGBs have an average maturity of about nine years, which should not put undue pressure on the Japanese government to refinance its obligations.
• South Korea's exports were up 44.4% yr/yr through the first ten days of February with chip exports surging 137.6% yr/yr.
• China reported another muted inflation reading for January while PPI deflated for the 40th month in a row.

In economic data:

• China's January CPI 0.2% m/m (expected 0.3%; last 0.2%); 0.2% yr/yr (expected 0.4%; last 0.8%). January PPI -1.4% yr/yr (expected -1.5%; last -1.9%)
• South Korea's January Unemployment Rate 3.0% (last 3.3%)
• Australia's Q4 Invest Housing Finance 7.9% m/m (last 9.2%) and Home Loans 10.6% m/m (last 6.2%)

Major European indices trade on a mostly lower note. STOXX Europe 600: UNCH, Germany's DAX: UNCH, U.K.'s FTSE 100: +0.8%, France's CAC 40: -0.1%, Italy's FTSE MIB: -0.8%, Spain's IBEX 35: -0.3%.

In news:

• Siemens Energy beat earnings expectations while Heineken's outlook remained guarded and called for aggressive cost cuts.
• British homebuilder Barratt Redrow reported weakening margins despite volume growth while Commerzbank saw strong revenue growth to close out 2025.
• Elliott Management has reportedly built up a stake in the owner of the London Stock Exchange.
• European Central Bank policymaker Schabel penned an op-ed in FT, calling for a closer integration of the European common market.

In economic data:

• Italy's December Industrial Production -0.4% m/m (expected -0.6%; last 1.5%); 3.2% yr/yr (last 1.4%)