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Pre-market futures are off their early morning lows but still deep in the red at this hour: the Dow is -466 points, -0.95%, the S&P 500 -59, -0.86%, the Nasdaq -272 points, -1.09% and the small-cap Russell 2000 -27, -1.06%. Indexes are now down anywhere from -2% (Dow) to -4.4% (Nasdaq) over the past month of trading. Year to date, the Dow holds onto slight gains and the Russell 2000 is still +4%, but otherwise the markets are selling off.
It had ought to be no mystery why market sentiment has turned south: The U.S. and Israel bombing Iran over the weekend disrupts much of what had been assumed about the global economy — not the least of which are spot oil prices, where Iran cutting off the Strait of Hormuz stops the flow of 20 million barrels of oil (bbl) per day. As a result, West Texas Intermediate (WTI) oil has shot up +8% to $72/bbl, while Brent crude hit $82/bbl before cooling somewhat since, so far in early trading hours.
Beyond this, there is little clarity anywhere on what happens next in this conflict — further anathema for the stock market: uncertainty. Needless to say, news on the progress (or lack thereof) in this war with take precedence over mere economic reports coming out this week — Jobs Week, for those still paying attention — and even the existential “AI crisis.” War in the Middle East has already cost the U.S. blood and treasure.
What to Expect from the Stock Market
Aside from whatever emerges from this major global conflict, we do have economic prints worth keeping an eye on. After today’s open, final S&P Manufacturing PMI for February looks to improve on its 51.2 posted last time around — thankfully above the 50 threshold between growth and loss. ISM Manufacturing, also for February, is expected to reach 52.0% from 52.6% previously.
Q4 earnings season winds down this week, although we do see a couple important companies reporting Tuesday: Target TGT ahead of the opening bell and cybersecurity staple CrowdStrikeCRWD after the close. We await Zacks Director of Research Sheraz Mian’s Wednesday update on the state of Q4 earnings season at this advanced stage; as you can see by last week’s Earnings Trends report https://www.zacks.com/commentary/2875426/retail-sector-earnings-in-focus, Sheraz has a way of condensing deep and complicated matters into easy-to-understand explanations.
How Will Jobs Week Fare"
We don’t see new JOLTS numbers like in a “normal” Jobs Week, but Wednesday’s private-sector payrolls from Automatic Data ProcessingADP and Friday’s non-farm payrolls from the U.S. Bureau of Labor Statistics (BLS) are on the schedule. For ADP, 50K new private-sector jobs are expected to have been filled last month, and BLS looks for 54K. These come from the widely varied +22K on ADP and +130K on BLS the previous month.
Further, analysts look for a falling Unemployment Rate, from 4.4% to 4.3% month over month, with Wages coming down to +0.3% from +0.4% in the prior BLS report. Should these estimates prove accurate, this would belie the anecdotal evidence of mass layoffs at tech corporations and struggles in the general labor market presently. Initial Jobless Claims, out Thursday morning, are expected to remain cool at 215K — in-line with an historically healthy range we’ve seen since prior to holiday season last year. Questions or comments about this article and/or author" Click here>>
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Agnico Eagle is reinvesting in its assets to expand output. It is making good progress with its key growth projects. The merger with Kirkland also created big opportunities. Higher gold prices will also drive margins.
Strong performance at Property and Casualty segment, low leverage, consistent cash flow generation, higher average yield along with higher average invested assets and reinsurance program should drive growth for Mercury General.
KLA is a major player in each of its served markets. The company offers complete yield management solutions, including hardware, software and services that reduce production cost.
Strategic alliances and Morgan Stanley’s increased focus on less capital markets-dependent operations are expected to aid growth. Enhanced capital distribution activities reflect a solid balance sheet
Intensifying competition from the likes Oracle and SAP and increasing operating costs due to a surge in headcount and marketing spending are major concerns for Workday.
Main Street’s expansion strategies will likely raise operating expenses in the near term, which is expected to hamper the bottom line. Regulatory constraints pose another headwind.
Kohl’s is grappling with a tough macroeconomic backdrop, with external headwinds like shifting consumer behavior. Management foresees a net sales decline of 5-6% for fiscal 2025.
Soft performances at the Closed Block and Corporate segment over the past few quarters and rise in total benefits and expenses for the past few years inducing margin contraction remain concerns.
Tractor Supply has been reeling under rising selling, general, and administrative costs for a while now. SG&A, as a percentage of sales, rose 6% year over year in fourth-quarter 2025.
American Eagle remains well placed on the back of cost-reduction efforts and brand progress. In addition, its Powering Profitable Growth plan bodes well.
Broadcom is a leading player in the semiconductor market based on its expanding product portfolio, multiple target markets, accretive acquisitions and strong cash flow.
Kroger drives growth with digital expansion, private label success, fresh offerings and strategic partnerships, while investments in AI and value creation fuel long-term scalability.
AT&T is witnessing early momentum in its core market areas driven by strength in 5G and fiber, as it aims to better harness edge computing capabilities with core business focus.
Align Technology’s robust product line, balanced growth across all channels and consistent focus on international markets to drive growth bolster our confidence in the stock.
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