Market Performance - The U.S. stock market exhibited a mixed performance on February 16th, 2026, with technology stocks achieving record gains while blue-chip stocks experienced a slight decline [1] - The Nasdaq Composite rose 0.7% to a new all-time high of 16,794.87, driven by optimism surrounding AI integration [2] - The S&P 500 increased by 0.1% to close at 5,308.13, nearing its record high [2] - The Dow Jones Industrial Average fell 0.5%, or nearly 200 points, to end at 39,806.77, following profit-taking in industrial and financial sectors [3] - Small-cap stocks saw a modest increase, with the Russell 2000 rising 0.3% to finish at 2,102.50 [3] Corporate Earnings and Developments - Palo Alto Networks reported quarterly results that met revenue expectations, but investors are focused on its updated guidance for the fiscal year [4] - Zoom Video exceeded analyst estimates for both revenue and earnings, benefiting from its focus on enterprise AI tools [5] - Li Auto experienced stock volatility after reporting a decline in vehicle margins amid a competitive EV market [5] - Norwegian Cruise Line was a top gainer in the S&P 500, raising its full-year profit forecast due to strong demand and higher ticket prices [6] Economic Outlook and Federal Reserve Sentiment - Federal Reserve officials emphasized a "patient" approach to monetary policy, with Vice Chair Philip Jefferson noting that recent inflation data is encouraging but not yet definitive [7] - Treasury yields remained steady as the market adjusted expectations for the Fed's future rate decisions, with a higher probability of rates staying elevated for an extended period [8] Upcoming Market Events - Nvidia's earnings report, scheduled for Wednesday, is anticipated to influence the tech sector significantly, including companies like Microsoft, Apple, and Alphabet [9] - The release of the Federal Reserve's latest meeting minutes on Wednesday is expected to provide insights into inflation target discussions [10] - Notable earnings reports from retail giants Target and Lowe's are also expected this week, which will be crucial for assessing U.S. consumer spending trends [10]

Market Overview - U.S. stock markets are closed on February 16th, 2026, for Presidents' Day, following a week of volatility and concerns about the sustainability of the AI boom [1] - Investors ended the week on a steady note, with major indexes showing resilience after a mid-week rout [2] Index Performance - The S&P 500 rose 0.05% to close at 6,836.17, while the Dow Jones Industrial Average increased by 0.10% to 49,500.93 [2] - The Nasdaq Composite fell 0.22% to 22,546.67, primarily due to a 2.2% drop in Nvidia [2] AI Disruption Narrative - The market is pricing in risks associated with "AI disruption," leading to a sell-off in software and service-oriented tech companies [3] - Companies like Alphabet and Microsoft are central to the debate on AI infrastructure costs versus revenue gains [3] Semiconductor and Hardware Strength - Semiconductor and hardware companies showed strength, with Applied Materials surging over 8% after a strong Q1 earnings report [4] - Rivian Automotive's stock soared 26.64% following an earnings beat, marking a positive development for the electric vehicle sector [4] Upcoming Market Events - Investors are preparing for a busy week of economic data and corporate earnings, including the release of the Federal Reserve's January meeting minutes [5] - Walmart is set to report quarterly results on February 19th, which will provide insights into consumer health [6] Economic Indicators - January Retail Sales data is expected to show modest growth, with a significant "data dump" on Friday including a projected 3% annualized growth rate for Q4 2025 GDP [7] Corporate Highlights - Coinbase gained 16.5% due to stock buybacks and positive stablecoin legislation outlook, while AppLovin experienced volatility, rebounding 6.4% after a previous drop [8]

Earnings season comes calling for three popular stocks.Don't let this holiday-shortened trading week lull you into a sense of financial slumber. Earnings season continues, and more than a few stocks will be on the move after their respective companies' latest quarterly numbers come out.A few of the stocks I hope will step up nicely this week include Palo Alto Networks (PANW +2.52%), Booking Holdings (BKNG 0.52%), and Walmart (WMT +0.19%). They have a lot to prove in the next four trading days. Let's take a ...

Company Overview - Tractor Supply Company (TSCO) has been serving rural and suburban customers for over 85 years, focusing on recreational farmers, ranchers, homeowners, gardeners, and pet owners [1] - It is the largest rural lifestyle retailer in the U.S. and a Fortune 500 company, employing more than 52,000 people [1] Business Model - The company's business model emphasizes accessible pricing, broad product availability, and a multichannel shopping experience tailored to its diverse customer base [2] - Tractor Supply has a market capitalization of approximately $29.1 billion [2] Stock Performance - Over the past year, TSCO stock has decreased by about 3.4%, underperforming the S&P 500 Index, which increased by 11.8% during the same period [2] - In 2026, TSCO shares have rebounded, gaining 10% year to date, outperforming the S&P 500, which has seen a slight decline [3] - Compared to retail peers, TSCO has lagged behind the VanEck Retail ETF (RTH), which delivered a 9.1% return in 2025 [3] Growth and Sales Trends - The company's stock performance reflects a growth slowdown, with average annual revenue growth of just 3% over the past three years, trailing many peers in the consumer retail sector [4] - In the fourth quarter of 2025, net sales increased by 3.3% year over year to $3.90 billion, up from $3.77 billion [5] - Comparable store sales rose only 0.3%, a decrease from a 0.6% increase in the same quarter the previous year, indicating challenges in driving traffic to physical stores [5] - Management noted that fourth-quarter results fell short of expectations due to changing consumer spending patterns, with steady demand for essential categories but moderation in discretionary purchases [5]

Group 1 - JPMorgan Asset Management recommends focusing on the quality factor in the stock market as AI disrupts various industries, defining quality stocks as those with strong cash flow, consistent earnings, experienced management, and competitive advantages [1][3] - The quality factor has underperformed the broader market over the past year, with quality stocks lagging behind by almost 5% in 2025, marking one of the worst stretches in nearly two decades [2][4] - Historical trends suggest that periods of quality underperformance can lead to sharp reversals, with quality stocks often outperforming during market downturns [3][4] Group 2 - The period from 2003 to 2008 exemplifies this trend, where higher-quality companies lagged for four years before outperforming by 7 percentage points in 2007 and 2008 as the economy entered recession [4] - Over the last 30 years, developed market stocks have experienced nine drawdowns of 10% or more, during which quality stocks outperformed 78% of the time, with a median excess return of 3.4 percentage points [4] - Examples of quality factor funds include the iShares MSCI Global Quality Factor ETF (AQLT) and the Vanguard US Quality Factor ETF (VFQY) [4] Group 3 - Investors leaning into quality stocks should be cautious of those with high exposure to AI stocks, as this theme could trigger the next market drawdown [5] - The Invesco S&P 500 Quality ETF (SPHQ) is highlighted as a quality fund with limited exposure to AI hyperscalers and software stocks, featuring top holdings such as Costco, Visa, and Apple [5]

Core Viewpoint - The opening of the Haikou Wanghao Duty-Free Store has attracted significant consumer interest, with long queues both outside and inside the store, indicating strong demand for duty-free shopping in the region [2][4][6]. Group 1: Consumer Behavior - A large crowd gathered outside the store, with people arriving as early as 8:30 AM to secure their place in line, demonstrating high anticipation for the store's offerings [2][5]. - Inside the store, customers formed long lines at the checkout, with multiple shopping carts filled with a variety of products, indicating a busy shopping environment [4][5]. Group 2: Product Offering - The store features over 50,000 items across more than 40 categories, including snacks, fruits, household goods, and baby products, catering to diverse consumer preferences [5]. - Popular items include imported snacks and fruits, such as durian, which are particularly sought after during the festive season [5]. Group 3: Operational Insights - The store's staff efficiently managed the checkout process, with quick transactions and a high volume of sales, reflecting effective operational management [4][5]. - The store's opening coincided with the Southern Little New Year, enhancing the festive shopping atmosphere and encouraging consumers to purchase holiday goods [6].

Lots of ASX 200 companies report this week, and earnings season volatility could intensify as expectations are tested.Last week reminded us how quickly sentiment can turn. AMP Ltd (ASX: AMP) tumbled 30% after its update. REA Group Ltd (ASX: REA) shares opened down 18% on results day before clawing back some ground. CSL Ltd (ASX: CSL) fell 11% following its interim numbers, adding to an already tough 12 months.As we covered in our recent earnings watchlist, reporting season is rarely about headlines alone. I ...

From running track at the University of Oregon to running the shoe retail giant Nike, Phil Knight revolutionized the shoe industry with his former coach. He's stepped into seventh place on the #Forbes250 list, featuring America’s greatest living innovators.Get the full list: https://t.co/kszvRsR2NBPhoto: Michael Hickey via Getty Images ...

Core Insights - The comparison between State Street Consumer Staples Select Sector SPDR ETF (XLP) and First Trust Nasdaq Food & Beverage ETF (FTXG) highlights differences in cost, returns, risk, liquidity, and portfolio construction for investors to consider Cost & Size - XLP has a significantly lower expense ratio of 0.08% compared to FTXG's 0.60% [2][3] - As of February 14, 2026, XLP's one-year return is 11.12%, while FTXG's is 6.87% [2] - XLP offers a dividend yield of 2.14%, slightly lower than FTXG's 2.60% [2] - XLP has assets under management (AUM) of $17.24 billion, significantly higher than FTXG's $20.1 million [2] Performance & Risk Comparison - Over five years, XLP has a maximum drawdown of (16.31%), while FTXG's is (21.71%) [4] - A $1,000 investment in XLP would grow to $1,332 over five years, compared to $925 for FTXG [4] Portfolio Composition - FTXG tracks a smart beta index with 31 holdings, including major companies like PepsiCo, Archer-Daniels-Midland, and Mondelez International [5] - XLP, launched in 1998, has 39 holdings and includes top companies like Walmart, Costco, and Procter & Gamble [6] Investment Implications - XLP's lower expense ratio, higher returns, and established market presence make it a more competitive option compared to FTXG [7] - FTXG, being a younger fund, may have potential for scalability as it continues to develop its portfolio [7] - The focus of XLP on retail stores contrasts with FTXG's emphasis on food and beverage products, which may appeal to different investor preferences [8] Market Stability - Both funds provide stability during market volatility, as consumer defensive assets are essential regardless of economic conditions [9]

Group 1: AI Disruption and Market Impact - The rapid spread of AI disruption is affecting various sectors, including software, wealth management, commercial real estate, and logistics, indicating a significant shift in market psychology regarding AI's economic impact [1][2] - Wealth management selloffs are driven by fears that AI advisors and robo-platforms may disintermediate traditional financial advisory relationships [1] - Concerns about AI-driven property management automation and reduced office space needs are contributing to weakness in commercial real estate [1] - Logistics companies are under pressure due to worries about AI optimizing supply chains, potentially reducing human intervention and compressing margins [1] Group 2: Economic Data and Market Reactions - An unprecedented convergence of economic data is expected on Friday, including Q4 GDP revision, Core PCE Price Index, Manufacturing and Services PMI, and new home sales, which will provide a comprehensive economic picture [3] - The GDP revision will focus on consumer spending contributions and business investment patterns, crucial for assessing year-end economic health [3] - The Core PCE reading is essential for evaluating inflation pressures, while PMI releases will offer insights into future business activity [3] Group 3: Federal Reserve Insights - The FOMC meeting minutes will provide insights into Federal Reserve policy deliberations before leadership transition, focusing on inflation persistence and labor market assessments [4] - Any disagreements among Fed officials regarding recent rate cuts or financial stability concerns could influence market expectations about future policy adjustments [4] - The minutes may also address how policymakers are weighing AI's productivity impacts against near-term inflation pressures [4] Group 4: Consumer Spending and Retail Insights - Walmart's earnings will serve as a key indicator of consumer health, providing insights into household spending patterns and retailer inventory management [5] - The performance metrics such as same-store sales growth and e-commerce performance will help assess consumer spending resilience [5] - Commentary on traffic patterns and consumer behavior will be crucial for establishing expectations about future spending trajectories [5] Group 5: Commodity and Materials Sector Assessment - Vale's earnings will provide insights into iron ore demand and industrial commodity pricing, serving as leading indicators for global infrastructure spending [7] - Commentary on Chinese demand and commodity price expectations will help assess the sustainability of recent strength in materials sectors [7] - The convergence of materials earnings with comprehensive economic data could lead to significant sector rotation based on conflicting stories about global demand strength [7]