After a strong finish last week, markets stumbled sideways through the ongoing uncertainties of a breakneck restructuring of federal financial systems. The S&P 500 stuck to support at its 10-week moving average. The Nasdaq and Dow Jones Industrial Average dipped narrowly below that line. But within that stasis, a rotation away from growth stocks caused some serious chart damage in the stock market among many of the leading names in the sector.
The Innovator IBD 50 ETF (FFTY) shed more than 12% for the week. But that followed a two-week advance, so that the fund ended the week down only 1% for February so far, on the heels of January’s 4.8% gain.
Earnings season continues at full pace in the coming week. Headlines will revolve around Nvidia‘s (NVDA) earnings on Wednesday. But other artificial intelligence-linked names due to report include Salesforce (CRM), Snowflake (SNOW) and C3.ai (AI). Home Depot (HD) and Lowes (LOW) will head up the late season rush of retailers. Economic data will be of interest, as markets look for wiggle room relative to the oncoming rash of trade tariffs.
And news and commentary out of Washington D.C. will remain of central market interest, as the direction and well-being of many stocks, industries and regions are being determined by the vast change underway in federal dollar flow and employment.
Watchlist: A Choppy Stock Market Offers Targets
The stock market rally is showing mixed action, with the S&P 500 at highs and some growth stocks pressured. Investors should be looking for stocks showing relative strength from a variety of sectors. Insurance broker Brown & Brown (BRO), US Foods (USFD), China retail play JD.com (JD), Meta Platforms (META) and cybersecurity IPO Rubrik (RBRK) are trading around buy points. They hail from a variety of industries with a mix of high and low-beta stocks. Meta is finding support around its 21-day line after a 20-day win streak. It’s trying to bounce off its 50-day line and would be actionable above the 21-day level. JD.com is trying to get above resistance between 42 and 43.
Artificial Intelligence: Spotlighting Nvidia’s Blackwell
Investors will be keenly focused on late Wednesday’s Q4 results from AI chipmaker Nvidia. Analysts will key on demand for Nvidia’s Blackwell processors from hyperscale cloud computing providers. Wall Street expects Nvidia to earn an adjusted 85 cents a share, up 63% year over year, on sales of $38.08 billion, up 72%. Nvidia stock has been trending sideways for four months amid concerns ranging from major customers developing their own AI chips to the implications of China’s low-cost DeepSeek AI computing system. Investors will want to see if the Blackwell production ramp is on schedule and there’s no pause in buying in the transition from Hopper to Blackwell systems.
Econ Calendar: In Search Of Leeway For Tariffs
The Federal Reserve’s primary inflation rate, part of the Commerce Department’s personal income and outlays report on Friday, headlines the coming week’s data. Economists expect a 0.3% increase in the core PCE price index, according to FactSet. That would lower the Fed’s key 12-month core inflation rate to 2.6% from 2.8%. Some think it could fall to 2.5%. Disinflation progress tops Wall Street’s wishlist, giving the Fed leeway to look past any temporary rise in prices due to tariffs. Personal consumption expenditures are likely to be soft, following strong gains in recent months and a pullback in January retail sales. New home sales are out Wednesday. Pending home sales are on Thursday.
Earnings Season: Retailers Gather Momentum
After Walmart‘s (WMT) report this past Thursday, retail earnings pick up speed with Home Depot and Lowes. TJX (TJX), Macy’s (M), Dillard’s (DDS) and Urban Outfitters (URBN) are also due. Analysts see an upturn for Home Depot after almost two years of earnings declines. The bar is highest for Urban, shooting for a 36% EPS jump. Dillard’s is up almost 17% this year.
AI Earnings: Monetizing the AI boom
Along with Nvidia’s report on Wednesday, enterprise software makers Salesforce, Snowflake and C3.ai report financial results late Wednesday. Investors are hungry for more data on monetization of artificial intelligence products, and to what degree AI investments are weighing on profitability. Salesforce EPS is expected to grow 14%. Revenue from new autonomous AI agents isn’t expected to kick in until 2026, though customers continue to ramp up pilot projects. Snowflake EPS is expected to fall 50%, with revenue growing 23%. C3.ai is expected to report an adjusted loss of 25 cents per share, down 92% from a year earlier, with revenue rising 25% to $98.1 million.
Energy Policy: A New World For Renewables?
The ACORE policy forum — American Council On Renewable Energy — will draw particular interest this year, running in Washington D.C. just as the Trump administration gears up to promote fossil fuel use and do battle with a rising global trend toward renewable energy. Clean energy sector tax opportunities, the outlook for clean energy project finance and surveying energy supply chains and the trade policy landscape are listed as areas of focus. The two-day forum kicks off Wednesday with a discussion of what to expect for energy policy from a new administration and Congress.
Security Devices: Putting Axon Back Together In Stock Market
Axon Enterprise (AXON) reports Q4 results after Tuesday’s close. Analysts expect EPS to grow 25% to $1.40 as revenue rises 31% to $566 million, FactSet says. Management’s mood may be key, after shares collapsed on recent analyst downgrades and funding uncertainties. Axon’s slate of AI-enabled product releases will be of interest, including its Draft One transcription program.
Hims & Hers Health (HIMS) reports fourth-quarter earnings late Monday. Analysts polled by FactSet expect the compounding pharmacy to report earnings of 11 cents, up from 1 cent a year ago. Sales would surge more than 90%. Shares fell sharply from highs on Friday, on news that the shortage in weight-loss and diabetes drugs has ended.
EBay (EBAY) delivers its Q4 results Wednesday. Analysts see adjusted earnings rising 12% to $1.20 per share. Sales are projected to be flat at $2.57 billion. EBay sales growth hasn’t exceeded 3% since Q3 2023. Shares rallied 62% in the past 12 months, helped by bullishness about its ability to harness generative AI for growth.
Pure Storage (PSTG) reports January quarter earnings late Wednesday. Adjusted earnings are seen falling 17% to 42 cents per share while revenue is projected to increase 10% to $869 million, according to FactSet. Pure Storage stock is up more than 60% over the past 12 months, and below a cup base buy point.
Dell, Norwegian Cruise On Tap Too
Dell (DELL) and computer brand peer HP (HPQ) will report quarterly results late Thursday. Wall Street will look for signs of a PC refresh cycle due to the availability of AI PCs and the end of life of Microsoft‘s (MSFT) Windows 10 later this year. Dell is seen benefiting from the buildout of AI data centers. Analysts expect Dell to earn $2.52 a share, up 14.5% year over year, on sales of $24.58 billion, up 10%. HP is seen earning 74 cents a share, down 9%, on sales of $13.36 billion, up 1%.
Norwegian Cruise Line (NCLH) reports Q4 results in the stock market early Thursday. FactSet analysts expect earnings to improve to 11 cents per share, from a loss of 18 cents last year. Revenue is seen increasing about 6% to $2.1 billion. NCLH shares collapsed over the past week, undercutting a base-building effort, on news of a possible U.S. tax policy shift regarding cruise lines.
