Stock Markets February 5, 2026

Mixed Earnings Drive Narrow Premarket Moves; Big Tech and Chips Under Pressure

Alphabet's aggressive capex plan and semiconductor supply warnings weigh as consumer names and niche winners post stronger results

By Ajmal Hussain GOOGL QCOM AMZN PTON CIEN
Mixed Earnings Drive Narrow Premarket Moves; Big Tech and Chips Under Pressure
GOOGL QCOM AMZN PTON CIEN

U.S. stock futures traded roughly flat as quarterly company reports continued to shape trading before the open. Pressure in parts of the software and semiconductor complex linked to artificial intelligence spending and component supply issues contrasted with standout results from several consumer and business-services firms.

Key Points

  • Quarterly earnings are driving premarket activity, producing mixed results across sectors.
  • AI-related capital expenditure plans at major tech firms and semiconductor supply issues are key market drivers.
  • Consumer and business-services firms including Tapestry, Hershey, and Thomson Reuters reported stronger-than-expected results, while several large-cap tech and chip names saw significant premarket declines.

U.S. stock futures hovered near breakeven Thursday while fresh corporate earnings filtered into the market, producing a patchwork of reactions. Investors grappled with signs of heavy AI-related spending and supply constraints in semiconductor supply chains, even as several consumer and business-facing companies posted results that beat expectations.

Alphabet shares fell 4.6% in premarket trading after the Google parent signaled a potential doubling of capital expenditures for the year to a range of $175 billion to $185 billion. Management framed the move as part of an accelerated build-out of high-end data centers and chip capacity that support artificial intelligence models. The guidance came despite the company reporting blockbuster quarterly results.

Qualcomm plunged 11% after the chipmaker announced record revenue for the start of fiscal 2026 but cautioned that the second quarter would face pressure. Company executives pointed to industry-wide memory supply constraints and associated pricing dynamics that are weighing on handset customers, factors expected to depress near-term results.

Amazon drifted down 1.3% ahead of its upcoming quarterly report. While Amazon Web Services remains one of the company’s largest revenue drivers, market attention is likely to focus on how the company frames its AI strategy alongside its cloud business in the fresh set of results.

Peloton Interactive tumbled 10% after reporting second-quarter results that missed expectations and announcing the departure of Chief Financial Officer Liz Coddington. The combination of weaker results and an executive exit prompted the sharp premarket selloff.

Ciena rose 0.2% as the optical networking systems firm is set to rejoin the S&P 500 index, returning to the benchmark after an absence of 17 years.

Tapestry jumped 7.3% after the luxury accessories group posted record quarterly results that materially exceeded expectations, with particularly strong performance coming from its Coach brand.

Hershey gained 3.6% after reporting fourth-quarter earnings that topped forecasts, accompanied by an upbeat outlook for 2026.

Thomson Reuters climbed 4.2% following a report of higher fourth-quarter revenue, driven in part by contributions from its legal, tax and accounting, and corporate businesses.

Estee Lauder slid 12% despite raising its full-year sales forecast. The cosmetics company warned that tariff-related headwinds would reduce fiscal 2026 profitability by roughly $100 million, with the impact concentrated mostly in the second half.

ConocoPhillips eased 0.9% after fourth-quarter earnings missed expectations, a shortfall attributed to weaker crude prices.

Bristol-Myers Squibb rose 2.2% after reporting fourth-quarter revenue and earnings that beat estimates, supported by solid demand for its cancer immunotherapy treatment and the blood thinner Eliquis.


With earnings season still unfolding, market participants continue to weigh company-specific developments - from large-scale AI-related capital spending to supply-chain constraints - against pockets of resilient consumer and corporate demand that are lifting other names. The mix of surprises in both directions is keeping premarket moves contained overall.

Risks

  • Higher-than-expected capital spending on AI infrastructure could increase near-term volatility for large-cap technology stocks and related suppliers.
  • Industry-wide memory supply constraints and pricing pressures may weaken semiconductor revenue and margins, impacting device makers and chip vendors.
  • Tariff-related costs could pressure profitability for multinational consumer goods companies, with impacts concentrated later in the fiscal year.

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