Markets Recover After Inflation Report, AI Worries Fade

Stock futures were edged higher on Friday following a consumer inflation report, a day after the market was driven lower by concerns about artificial intelligence.

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

Leading Sectors: Health Care

Lagging Sectors: Materials, Consumer Discretionary, Communication Services, Energy

Pinterest (PINS): Shares plunged after the social media company posted disappointing fourth-quarter results and issued weak sales guidance for the first quarter.

DraftKings (DKNG): The sports betting company reported strong fourth-quarter earnings that beat expectations, but shares fell sharply after its 2026 revenue forecast of $6.5-6.9 billion came in well below the analyst estimate of $7.31 billion.

Roku (ROKU): Shares surged after investment firm Rosenblatt raised its price target on the TV streaming platform, citing significant upside potential.

Rivian Automotive (RIVN): The electric truck maker's stock jumped after reporting better-than-expected fourth-quarter results and forecasting 2026 vehicle deliveries that would represent growth of nearly 50-60% compared to 2025.

Applied Materials (AMAT): The semiconductor equipment company rallied after reporting blowout quarterly earnings that significantly exceeded analyst expectations on both profit and revenue.

Expedia Group (EXPE): Shares of the online travel agency declined despite beating fourth-quarter earnings estimates, as the company identified "emerging AI-powered platforms" as a potential competitive risk in its earnings presentation.

Steel and Aluminum Stocks: Steel Dynamics, Cleveland-Cliffs (CLF), Century Aluminum (CENX), and Alcoa (AA) traded lower following reports that President Trump plans to roll back tariffs on steel and aluminum imports that had been as high as 50%.

Coinbase (COIN): The crypto exchange's shares rose after announcing that its total trading volume in 2025 hit $5.2 trillion, more than double the prior year, and subscription revenue grew to $2.8 billion despite missing fourth-quarter revenue expectations.

Dutch Bros (BROS): The drive-thru coffee chain's stock surged after reporting fourth-quarter earnings and revenue that both exceeded analyst expectations.

Advance Auto Parts (AAP): The auto parts retailer's stock rose after reporting fourth-quarter earnings that beat expectations and announcing a quarterly dividend, though its 2026 revenue outlook came in slightly below analyst estimates.

Wendy's (WEN): Shares declined after the burger chain reported a 10.1% decline in U.S. same-store sales and issued below-consensus full-year guidance despite beating earnings and revenue estimates for the fourth quarter.

Airbnb (ABNB): Shares rose despite missing earnings per share estimates, as the vacation rental company beat revenue expectations, announced a $1.1 billion share buyback, and issued upbeat guidance targeting at least low double-digit revenue growth in 2026.

Magna International (MGA): The automotive supplier's shares climbed after reporting fourth-quarter earnings that beat estimates and raising its quarterly dividend by 2%, despite recording a goodwill impairment in its Electronics unit.

Arista Networks (ANET): The networking equipment company's stock jumped after beating fourth-quarter expectations and issuing strong 2026 growth guidance, particularly for AI networking, despite facing memory cost pressures.

Fortune Brands Innovations (FBIN): The home products company's stock fell after missing fourth-quarter estimates, lowering its 2026 margin outlook, and guiding to flat-to-modest sales growth, though it unveiled a multi-year cost-cutting plan targeting incremental savings.

Amkor Technology (AMKR): Shares declined after the semiconductor packaging company announced that its controlling shareholder, the Kim family, would sell 10 million shares in a secondary offering, though the family will maintain majority ownership above 49%.

Wynn Resorts (WYNN): The casino operator's shares fell after reporting fourth-quarter earnings that missed analyst estimates, with operating revenues declining in Las Vegas and Boston while expanding in Macau.

Moderna (MRNA): The biotechnology company beat earnings expectations with a narrower-than-expected loss, though revenue fell 30% year-over-year due to lower COVID vaccine sales. The company also disclosed that its flu vaccine filing received a U.S. FDA Refusal-to-File letter while being accepted in the EU, Canada, and Australia.

(Stocks showing elevated volume and notable price movement)

Gainers: ACHC, AXTI, AMKR, ROIV, NVST, MMM, LUV, SYY

Losers: ZG, LYFT, HUBS, PAR, PINS, MNDY, FIG

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.