Weekly Market Commentary

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WEEK OF FEB. 2 THROUGH FEB. 6, 2026

The S&P 500 index slipped 0.1% this week as declines led by the consumer discretionary sector slightly outweighed gains guided by consumer staples amid mixed earnings reports.

The S&P 500 ended the week at 6,932.30 and is up 1.3% for the year.

The slim weekly move came as investors sifted through a mixed bag of quarterly earnings reports and guidance. Companies including Hershey (HSY) and PepsiCo (PEP) reported quarterly results above analysts' expectations while others, including online retail giant Amazon.com (AMZN), delivered some disappointments.

On the economic front, ADP reported employment in the US private sector increased less than projected in January. Investors continue to await government data on January's jobs after the Bureau of Labor Statistics pushed back its monthly payrolls report to Feb. 11.

US consumer sentiment reached its highest reading since August, but remained low compared with year-ago levels amid persistent concerns related to inflation and the labor market, preliminary results from a University of Michigan survey showed.

The consumer discretionary sector had the largest percentage drop this week, falling 4.6%, followed by a 4.4% decline in communication services and a 1.4% loss in technology.

Amazon.com had the largest percentage drop in consumer discretionary, falling 12% on the week as the company posted Q4 earnings per share below analysts' mean estimate. Amazon forecast operating income of $16.5 billion to $21.5 billion for the ongoing quarter; this was below initial expectations by about $3.5 billion at the midpoint, according to Wedbush Securities analysts.

Take-Two Interactive Software (TTWO) was among the top decliners in communication services. The company reported a fiscal Q3 loss of $0.50 per diluted share, wider than the loss of $0.39 per share expected on average by analysts polled by FactSet. Shares fell 11%. Leading the technology sector's decliners, Gartner (IT) shares fell 25% as the company issued 2026 guidance below analysts' estimates.

On the upside, consumer staples climbed 6%, followed by a 4.7% increase in industrials and a 4.3% rise in energy. Also, materials added 3.5%, while health care, financials and real estate also rose by more than 1% each. Utilities edged higher as well.

Hershey led the gainers in consumer staples with a 19% jump as the candy company reported Q4 adjusted earnings per share and sales above analysts' expectations and forecast 2026 adjusted EPS above the Street view.

PepsiCo was also a top gainer in consumer staples, climbing 11%, as the beverage and snacks company posted fiscal Q4 core earnings per share and net revenue above analysts' expectations. PepsiCo also announced a 4% increase to its annualized dividend.

The industrial sector's gainers were led by shares of Old Dominion Freight Line (ODFL), which rose 17%. The company posted Q4 earnings per share above analysts' mean estimate as revenue also came in above the Street view.

Next week's earnings schedule features Coca-Cola (KO), Cisco Systems (CSCO), McDonald's (MCD), T-Mobile US (TMUS), Applied Materials (AMAT) and Arista Networks (ANET), among other companies.

The focal point of the economic calendar will be the January jobs report on Wednesday. Other economic data due next week will include the January consumer price index, a key inflation measure, on Friday.

Provided by MT Newswires.