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Markets Rotate Back Out of Tech, Q4 Earnings After the Close

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Key Takeaways

  • Traders Rolled Off AI-Stock Gains, Much as They Have Since Friday
  • Q4 Earnings Results Are in for AMD, AMGN, CMG
  • Wednesday Begins "Jobs Week" with ADP Private-Sector Payrolls

Tuesday, February 3rd, 2026

Market indexes caved mid-afternoon on a combination rotation out of high-growth tech (of which AI stocks looked to be riding up again before getting slapped down Friday) and a tenuous feel regarding what’s around the corner for the economy. (January jobs data begins reporting tomorrow, and news headlines of another government shutdown aren’t helping confidence.)

It’s tough to get too riled up about today’s losses, however, as we saw a fresh intra-day all-time high level for the blue-chip Dow before the selling began. The Dow closed -166 points, -0.34%, while the S&P 500 and the Nasdaq shed a more significant -0.84% and -1.43%, respectively, mostly on the rotation out of tech stocks. The small-cap Russell 2000 managed to climb into the green ahead of the close: +8 points, +0.31%.

We did not get December JOLTS numbers, as expected, likely due to delays related to the government shutdown (although it reopened now 12 weeks ago). Thus, “Jobs Week” now begins with tomorrow’s Automatic Data Processing (ADP - Free Report) private-sector payrolls, which do not rely on government agencies to put out initial monthly numbers. A slight gain to +45K job gains last month is expected, up 4K from the previous month.
 

Earnings Reports After the Close: AMD, AMGN, CMG


Among those companies reporting quarterly earnings now that the regular trading session is complete, GPU chipmaker Advanced Micro Devices (AMD - Free Report) outperformed expectations it is Q4 report this afternoon. Earnings of $1.53 per share easily surpassed the $1.32 in the Zacks consensus (and the prior-year $1.09 per share) on revenues of $10.3 billion, nicely ahead of the $9.67 billion anticipated.

However, these numbers now include a one-time gain in chips sold to China in the quarter for $390 million not in the company’s original guidance, so investors were suspicious initially, sending shares down -6% in late trading. That said, revenue guidance for next quarter is strong, even as overall gross margins are projected to come down a couple percentage points to +55%. Mostly, traders are selling the AMD news; the stock had been up +37% over thev past six months.

Biotech giant Amgen (AMGN - Free Report) also reported strong beats on both top and bottom lines this afternoon, with earnings of $5.29 per share zipping past the $4.76 expected. Revenues reached $9.8 billion, above the $9.47 billion in the Zacks consensus. Product sales rose +7% on +10% volume growth. Shares are up +1.1% in the after-market.

Chipotle (CMG - Free Report) shares are down -2% after outperforming on both earnings and sales following today’s market close. Earnings beat by a penny to 25 cents per share, while revenues of $2.98 billion bettered the $2.96 billion in the Zacks consensus. Full-year same-store sales came in at -1.7% for the company’s first contraction on this metric in nearly 10 years.

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