Economy Stumbles, Stocks Slide as GDP Disappoints

Stocks fell on Friday after data showed the U.S. economy grew at a much slower pace than expected. GDP, which measures the total output of the economy, rose just 1.4% in the fourth quarter, well below the 2.5% growth economists had forecast and a sharp slowdown from the 4.4% seen the prior quarter.

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Major Indexes: S&P 500 lower, Nasdaq lower, Dow lower, Russell 2000 lower

Leading Sectors: Utilities, Industrial

Lagging Sectors: Technology, Energy, Materials, Financial, Consumer Discretionary, Health Care

Grail (GRAL): The cancer detection company's shares cratered in premarket trading after a major clinical trial of its Galleri cancer screening test failed to meet its main goal of reducing Stage III and IV cancers. Separately, Grail reported quarterly earnings that beat analyst expectations, with revenue growing 14% year over year, and the company said it submitted its Galleri test for FDA approval in January, with a decision expected in about a year.

Copart (CPRT): The online car auction company saw its shares fall after reporting quarterly earnings and revenue that both came in below analyst expectations. Earnings per share dropped 10% compared to the same period last year.

Dropbox (DBX): The cloud storage company reported quarterly earnings and revenue that narrowly beat analyst expectations, but investors were left underwhelmed and the stock fell regardless.

Tandem Diabetes Care (TNDM): The insulin pump maker reported record quarterly revenue and a smaller-than-expected loss, and guided for strong sales growth in 2026. Shares surged in premarket trading, though the company noted a shift in its U.S. sales model will weigh on near-term revenue.

RingCentral (RNG): The cloud communications company reported strong quarterly results featuring significant cash flow and margin growth, launched its first-ever quarterly dividend, expanded its share buyback program, and unveiled new AI-powered products built in partnership with OpenAI. Shares jumped in premarket trading.

Celsius Holdings (CELH): Shares of the energy drink maker surged in premarket trading after management presented at an industry conference, highlighting a 20% U.S. market share, the acquisitions of Alani Nu and Rockstar brands, and strong distribution through its PepsiCo partnership. Investors are also positioning ahead of the company's upcoming earnings report later this month.

Blue Owl Capital (OWL): Shares of the private markets and alternative assets manager slid after the company sold $1.4 billion in loans, continuing a decline from the previous session.

Opendoor Technologies (OPEN): The online home-buying platform surged after reporting quarterly revenue of $736 million, well ahead of the $549 million analysts had expected. Management said it is on track to reach adjusted profitability by the end of 2026.

Akamai Technologies (AKAM): Shares of the cloud computing company dropped in after-hours trading after the company issued weaker-than-expected earnings guidance for the current quarter, coming in below what analysts had forecast.

Texas Roadhouse (TXRH): Shares of the restaurant chain rose after the company said sales at its existing locations climbed 8.2% in the first seven weeks of the new quarter compared to a year ago. The company also plans a small menu price increase in April.

AppLovin (APP): The advertising technology company's shares rose after Bloomberg reported that it is developing plans to launch its own social media platform.

Live Nation Entertainment (LYV): Shares edged higher after the live events giant reported quarterly revenue of $6.31 billion, topping the $6.11 billion analysts had expected.

Comfort Systems (FIX): Shares of the HVAC and electrical services company rose after blowing past quarterly expectations, reporting earnings of $9.37 per share against an analyst estimate of $6.75, and revenue of $2.65 billion versus an estimate of $2.34 billion.

Newmont (NEM): Shares of the gold mining company edged lower despite reporting quarterly earnings well above expectations and announcing a record $7.3 billion in free cash flow.

Chemours (CC): Shares of the chemicals company plunged after reporting quarterly earnings and revenue that fell short of analyst expectations.

Sprouts Farmers Market (SFM): The grocery chain reported quarterly earnings of $0.92 per share with sales growing 8%, and announced a new $1 billion share buyback program. However, the company guided for roughly flat earnings in 2026 and expects some near-term sales pressure, leaving shares little changed in premarket trading.

AXT (AXTI): The semiconductor materials company reported a quarterly loss that was slightly worse than expected, but shares rose in premarket trading after the company pointed to strong demand for its indium phosphide products driven by artificial intelligence, though export permit delays remain a hurdle.

Western Union (WU): The payments company reported quarterly revenue of $1 billion and earnings of $0.45 per share, and issued 2026 guidance for revenue growth of 6-9%. Shares dipped slightly in premarket trading.

(Stocks showing elevated volume and notable price movement)

Gainers: OSS, NCLH, ACHC

Losers: ZG

Disclaimer: This newsletter is for informational purposes only and does not constitute investment advice. Readers should conduct their own research and consider consulting a financial professional before making investment decisions.