Stocks Settle Lower as Tech and Crypto are Routed

Market Overview - The markets are focusing on earnings and economic news, with the University of Michigan's consumer sentiment index expected to fall by -1.4 points to 55.0 [1] - Bitcoin has plunged more than -12% to a 1.25-year low, down nearly 50% from its October record high, with significant outflows from Bitcoin ETFs totaling about $2 billion in the past month and over $5 billion in the past three months [2] - Stock indexes have extended their sell-off, with the S&P 500 falling to a 1.5-month low and the Nasdaq 100 dropping to a 2.5-month low [4] Economic Indicators - Fed Governor Lisa Cook supports the decision to hold interest rates steady, citing risks tilted toward higher inflation [3] - Challenger's January job cuts rose +117.8% year-over-year to 108,435, marking the largest amount of job cuts for a January since 2009 [3] - Weekly initial unemployment claims rose by +22,000 to an 8-week high of 231,000, exceeding expectations of 212,000 [3] - US December JOLTS job openings unexpectedly fell by -386,000 to a 5.25-year low of 6.542 million, against expectations of an increase to 7.250 million [3] Earnings Reports - Q4 earnings season is underway, with 150 S&P 500 companies scheduled to report earnings this week; 79% of the 275 companies that have reported so far have beaten expectations [6] - S&P earnings growth is expected to climb by +8.4% in Q4, marking the tenth consecutive quarter of year-over-year growth [6] - Excluding the Magnificent Seven megacap technology stocks, Q4 earnings are expected to increase by +4.6% [6] Stock Performance - Qualcomm led the decline in technology stocks, falling more than -8% after forecasting weaker-than-expected Q2 revenue [4][13] - The Magnificent Seven technology stocks retreated, with Amazon.com and Microsoft closing down more than -4% [14] - Cryptocurrency-exposed stocks fell sharply, with MARA Holdings down more than -18% and Coinbase Global down more than -13% [15] - Cybersecurity stocks also sold off, with CrowdStrike Holdings down more than -9% [16] Notable Company Movements - Estee Lauder closed down more than -19% after forecasting full-year adjusted EPS below consensus [17] - McKesson Corp closed up more than +16% after reporting better-than-expected Q3 adjusted EPS and raising its full-year adjusted EPS estimate [19] - Corpay closed up more than +11% after reporting Q4 revenue above consensus [20] - Align Technology closed up more than +8% after reporting stronger-than-expected Q4 adjusted EPS [21]