07 Feb Market Selling Pressure Cancel Initial Positive Start After Consumer Data

We saw the major U.S. stock indexes decline on Friday (07 Feb) after the release of the University of Michigan Consumer Sentiment survey. The stock market did start positively and marginally higher after the jobs data, but selling pressure came after the release, this could be due to investors are also trying to comprehend the monthly employment number and the sharp drop in consumer sentiment.

The S&P 500 and DJIA declined 0.95% and 0.99% respectively, while NASDAQ lost 1.36%, this caused the major indexes to give up around for last week.

The employment numbers from the Labor Department released Friday morning showed that employers added fewer jobs in January than economists had expected, while the unemployment rate unexpectedly declined to 4.0%. The monthly jobs report is one of the more important indicators followed by the Federal Reserve in its decision-making on interest rates, which makes it a critical data point for investors.

All Eleven S&P 500 Sectors Ended in The Red

We saw all eleven S&P 500 sectors ended in the red with losses ranging from 0.03% from energy to 2.52% from consumer discretionary sector.

The consumer discretionary sector losses was contributed by Ulta Beauty 6.68% losses after fellow cosmetics and skin care provider e.l.f. Beauty (ELF) reported lower-than-expected quarterly profits and reduced its full-year guidance and $Amazon (AMZN.US)$ loss of 4.05% after it issued a disappointing sales outlook that offset better-than-expected fourth-quarter earnings. Tesla Motors (TSLA) also lost 3.39% to finish lower.

07 Feb Market Selling Pressure Cancel Initial Positive Start After Consumer Data

Technology sector loss of 1.02% was contributed by slide seen from Alphabet (GOOGL) and Broadcom (AVGO) each slid about 3%, while Apple (AAPL) and Microsoft (MSFT) dipped 2% and 1%, respectively. $NVIDIA (NVDA.US)$ and Meta Platforms (META) bucked the trend and ticked higher to help technology sector to range its losses near 1%.

Note Yield Down After Data Released

The yield on 10-year Treasurys, which is sensitive to market expectations about the outlook for the economy and interest rates, was at 4.5%, up from 4.44% before the release of the jobs data but well below the rates around 4.60% earlier in the week.

Stocks To Watch

$Expedia (EXPE.US)$ shares surged 17.3% higher after a jump in holiday bookings helped the online travel platform beat fourth-quarter sales and profit estimates. Gross bookings and nights booked also came in ahead of consensus forecasts, and Expedia reinstated its quarterly dividend, which it suspended during the COVID-19 pandemic in 2020.

Take-Two (TTWO) reported a narrower-than-expected quarterly loss, and shares of the video game maker surged 14.0%. The company cited strength from its "NBA 2K" title and affirmed plans for a fall 2025 launch of "Grand Theft Auto VI." JPMorgan analysts praised Take-Two's resilient performance despite industry challenges, and the company forecasted record net bookings levels in fiscal 2026 and 2027.

$Super Micro Computer (SMCI.US)$ shares surged Friday, extending gains ahead of the company's second-quarter update expected after markets close Tuesday. Supermicro also said Wednesday it is ramping to “full production availability” of its artificial intelligence data center solutions platform, which is “accelerated by the NVIDIA Blackwell platform.

If we looked at how SMCI have been trading recently, it has shown some good strength, the bulls have been trying to create a daily uptrend as SMCI has shown that if it can clear the 26-EMA, we could be seeing a bullish reversal, and the current trade on last Friday (07 Feb) seem to suggest that an upside movement is in motion ahead of its earnings on Tuesday after market close.

I will be watching how investors would be responding to this trend.

$Riot Platforms (RIOT.US)$ rose 2% amid takeover speculation, with activist Starboard reportedly holding a stake. Speculation includes interest from CoreWeave, according to market chatter, as Riot navigates the volatile cryptocurrency landscape.

Summary

I would think investors are still comprehending the job data and how the consumer data is telling us, we could see some more weakness in consumer related stocks, but market could start slow and in range-bound.

Appreciate if you could share your thoughts in the comment section whether you think market could start in range-bound slowly build into a positive momentum later in the week.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.

Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more

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nerdbull1669

Use A.I. to pick stocks. Find me in YouTube handle nerdbull1669

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