The stock market wrapped up January with the Dow Jones Industrial Average riding a healthy gain, while the Nasdaq and S&P 500 squeaked by with narrower wins. IBD’s investing action plan for first week of February boasts a heavy slate of big tech names led by Amazon.com (AMZN) and Alphabet (GOOGL). It is also a huge week for biotech and pharmaceutical earnings, with Amgen (AMGN), Pfizer (PFE), Eli Lilly (LLY) and Neurocrine (NBIX) on the list.
Markets may also receive some buffeting from a heavy slate of economic news, capped off by the January payrolls report on Friday.
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Economic Calendar: Buckle Up For A Busy Week
A huge week for economic data is on tap, culminating in Friday’s jobs report. Economists expect more of the same, with U.S. employers adding 170,000 new jobs in January, including 165,000 in the private sector, according to FactSet. Unemployment is seen steady at 4.1%. But, a substantial surprise in either direction could shift Federal Reserve rate-cut expectations. The Job Openings and Labor Turnover Survey is out Tuesday. The ADP employment report arrives on Wednesday. Investors will also tune in for the Institute for Supply Management’s manufacturing index and the Treasury Department’s Q1 borrowing expectations on Monday and the ISM services index on Wednesday.
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Internet Retail: Amazon Faces AI Questions
Sitting atop a five-month rally, Amazon.com reports late Thursday. Earnings are expected to slow for a fourth straight quarter, to a still healthy 49% gain. Revenue targets call for a steady 10% advance. Questions about China’s DeepSeek AI program are sure to be on the menu, as Amazon joined Microsoft (MSFT) in offering access to the start up AI offering. DeepSeek is widely seen as a more efficient competitor to Anthropic, in which Amazon has reportedly invested $8 billion. Commentary on the changing relationship with UPS (UPS), and on the increased ad spending via X are also likely topics of interest. Amazon gained nearly 10% in January.
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Fourth quarter and full year earnings for Alphabet stock are due Tuesday. Wall Street analysts project EPS growth of 29% to $2.12 with revenue growing 12% to $96.7 billion. Google’s internet search advertising is expected to climb 11% to $53.29 billion. YouTube ad revenue will grow 11% to $10.24 billion, analysts predict. Meanwhile, cloud computing revenue is expected to grow 32% to $12.1 billion. Alphabet’s new chief financial officer, Anat Ashkenazi, is expected to lay out more of her priorities on the Q4 earnings call with analysts. Alphabet stock has climbed in nine of the past 10 weeks. It is up about 13% from a mid-December breakout.
Big Pharma: High Hurdles For Drugmakers
A massive group of drugmakers reports fourth-quarter earnings in the coming week, kicking off with Pfizer and Merck (MRK) before the market opens Tuesday. Analysts expect a triple-digit or better earnings gains for both. The Street is also closely watching Eli Lilly’s earnings early Thursday. The weight-loss drugmaker missed expectations in the third quarter. Analysts project earnings up 108% and a revenue increase of almost 45%. Novartis (NOV) and Bristol Myers Squibb (BMY) are also on deck to report earnings early Wednesday. Analysts call for Novartis’ profit and sales to grow, but expect Bristol Myers to report a decline in earnings with relatively flat sales. On the European front, GSK (GSK) and AstraZeneca (AZN) will hold their earnings on Wednesday and Thursday, respectively.
Biotech Earnings: Keeping An Eye On Neurocrine
A slew of biotech companies report fourth-quarter earnings next week, starting with Regeneron Pharmaceuticals (REGN) early Tuesday, followed by Amgen (AMGN) after the close. Regeneron’s profit is expected to fall slightly to $11.24 per share, minus some items, while the Street forecasts more than 9% sales growth to $3.75 billion. On Thursday, analysts call for Neurocrine to report $1.93 in adjusted earnings per share, up 25%, and $629.6 million in sales, an increase of 22%.
Conference Calendar: Illumina Earnings Set To Accelerate
MD&M West, the medical device and manufacturing confab, takes place from Monday through Thursday in Anaheim, Calif. Often a newsmaking event, it coincides with earnings reports due from Edwards Lifescience (EW), Idexx Labs (IDXX) and Illumina (ILMN). Analyst expectations are low except for Illumina, with earnings seen accelerating to a 574% gain, and continuing through Q1.
IBD 50 Stocks: Defense Policy In Focus
Resting atop a 12-month gain of 428%, Palantir Technologies (PLTR) reports Q4 earnings after Tuesday’s market close. Analysts predict slower growth of adjusted earnings, up 39%. Revenue gains are to hold firm at 28%. Defense and homeland security are probable key topics, given the company’s foot in the White House door. Shares are at new highs.
Investing Action Plan Earnings Briefs
Advanced Micro Devices (AMD) will report fourth-quarter results late Tuesday. Wall Street expects the chipmaker to earn $1.08 a share, up 40% year over year, on sales of $7.53 billion, up 22%. Data center and PC sales will be key focus areas. The stock has been in decline since March of last year.
O’Reilly (ORLY) reports Wednesday after the close. Analysts expect a roughly 5% EPS gain to $9.74 on a 6% sales increase. The auto parts retailer had lowered its outlook in October. It has seen inflation-weary customers cut back on purchases of nonessential auto parts, such as accessories. ORLY stock topped a flat-base buy point on Thursday ahead of the report.
McKesson (MCK), one of the top three U.S. drug distributors, delivers its fiscal Q3 results late Wednesday. Analyst expect earnings to slow to a 4% gain before rebounding sharply in the coming year. Revenue is seen holding steady near 19%. The stock has been basing since August, but has tightened up in the most recent pattern.
MicroStrategy (MSTR), the software company building its own bitcoin Treasury, reports Q4 results late Wednesday. FactSet expects MicroStrategy to report a loss of 9 cents per share, falling from earnings of 50 cents last year. Analysts see revenue sliding almost 2% to $122.4 million. MSTR stock has tumbled almost 37% from its record high of 543 on Nov. 21 and is trading below its key moving averages.
Plains All American Pipeline (PAA) reports fourth-quarter earnings before the market opens on Friday. Analysts predict lower Q4 profit and a bump in revenue. But Canada tariffs are probably a hot topic with a large portion of the company pipelines running between Edmonton, Alberta and Cushing, Okla. PAA shares are slightly extended above a traditional 19.17 buy point on the back of their 20% gain in January.
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