Stocks Continue to Struggle: Market Analysis for Feb 5th, 2026

Global Markets

Canadian Markets

Canada’s TSX dropped as sharp pullbacks in precious metals and energy prices weighed heavily on the market. Silver led the decline, triggering a broader sell-off in hard assets as investors unwound defensive positions that had been built up amid earlier geopolitical tensions. The retreat followed signs of easing global risk, with spot gold slipping from a near one-week high and oil prices falling after the United States and Iran agreed to hold talks. Sentiment was further supported by reports of a positive phone call between U.S. and Chinese leaders, reducing near-term geopolitical anxiety and pressuring commodity prices.

The Bank of Canada struck a cautious tone on monetary policy and growth, with Governor Tiff Macklem warning that Canada’s economic restructuring, driven by demographic shifts, productivity challenges, and changes in global trade will take years to fully play out. He cautioned that cutting interest rates too aggressively while the economy is still adjusting could reignite inflation, underscoring the central bank’s preference for patience despite slowing growth signals.

American Markets

American stocks declined across the board as investors digested the implications of Alphabet’s strong quarterly results alongside its aggressive AI-related capital spending plans, which raised concerns about margin pressure and return on investment. Market focus also turned to Amazon’s earnings, due after the close, as investors looked for confirmation that cloud and retail demand remain resilient. Goldman Sachs noted that hedge funds were hit by the recent AI-driven sell-off, highlighting increased volatility and crowded positioning in large-cap technology names.

European Markets

European markets also moved lower as investors weighed mixed earnings reports from Shell and BNP Paribas. The European Central Bank kept interest rates unchanged, downplaying the recent dip in inflation and reinforcing its data-dependent stance. While corporate outlook commentary has shown signs of improvement, overall European earnings are still expected to decline, keeping risk plays in check.

In the UK, stocks fell after data showed British firms’ wage growth expectations cooled slightly, according to a Bank of England survey. The Bank of England voted narrowly to hold rates steady, but signaled that rate reductions could be approaching, reinforcing expectations of an eventual shift toward policy easing as inflation pressures gradually ease and economic momentum softens.

Corporate Stock News

Aflac Inc. (AFL) – Beat Q4 revenue estimates on higher U.S. premiums, but adjusted earnings missed expectations due to margin pressure.

Align Technology Inc. (ALGN) – Reported better-than-expected earnings and revenue, supported by strong demand for dental aligners; Q1 outlook in line.

Alphabet Inc. (GOOGL) – Posted strong quarterly results driven by cloud growth, while highlighting a sharp increase in AI-related capital spending.

Allstate Corp. (ALL) – More than doubled Q4 profit on stronger underwriting performance and higher investment income.

Apple Inc. (AAPL) – Gained regulatory clarity in Europe after Apple Ads and Apple Maps were excluded from the EU’s Digital Markets Act.

Arm Holdings plc (ARM) – Forecast revenue above expectations, supported by rising demand for energy-efficient AI-focused chip designs.

AvalonBay Communities Inc. (AVB) – Issued above-consensus full-year profit guidance, offsetting cost pressures with new apartment completions.

Barrick Mining Corp. (ABX:CA / GOLD) – Advanced plans for a North American gold assets IPO targeted for late 2026 and beat Q4 profit estimates on higher gold prices.

Bunge Global Ltd. (BG) – Received a target price increase to $130 from $117 from JPMorgan on expectations of biofuel mandate benefits and operational synergies.

Canada Goose Holdings Inc. (GOOS) – Beat quarterly revenue expectations on resilient demand and successful new product launches.

Cigna Group (CI) – Issued below-consensus 2026 revenue and profit guidance, citing continued medical cost pressures.

Corpay Inc. (CPAY) – Reported higher Q4 profit and revenue, driven by strong growth in corporate payments.

Dell Technologies Inc. (DELL) – Exploring alternative memory chip suppliers amid global shortages and rising component costs.

HP Inc. (HPQ) – Also evaluating non-traditional memory suppliers to manage supply constraints.

e.l.f. Beauty Inc. (ELF) – Raised full-year sales and profit forecasts after delivering a strong earnings beat on sustained consumer demand.

Estée Lauder Companies Inc. (EL) – Lifted annual profit outlook, citing improving China sales and progress on turnaround initiatives.

Eli Lilly and Co. (LLY) – Saw analyst target price increase from Scotiabank to $1300 from $1165, following strong sales of obesity and diabetes treatments.

FMC Corp. (FMC) – Forecast sharply lower profits and wider losses, announcing asset sales to reduce debt amid weak pricing conditions.

Globe Life Inc. (GL) – Posted higher Q4 profit driven by improved underwriting performance.

McKesson Corp. (MCK) – Raised its fiscal 2026 profit outlook and confirmed plans to spin off its medical-surgical business.

MetLife Inc. (MET) – Reported higher adjusted profit, supported by stronger investment income and rising premiums.

Mid-America Apartment Communities Inc. (MAA) – Missed FFO expectations due to weak rental demand and elevated housing supply.

New York Times Co. (NYT) – Received a modest target price increase from JPMorgan raising the target price to $74 from $71, on stable advertising trends and digital subscription growth.

Nvidia Corp. (NVDA) – Remains in talks over AI chip exports to China amid unresolved U.S. regulatory conditions.

PTC Inc. (PTC) – Raised revenue guidance and forecast Q2 results above expectations on strong demand for AI-driven industrial software.

Qualcomm Inc. (QCOM) – Issued weaker guidance due to memory shortages impacting smartphone customers, despite a quarterly earnings beat.

Snap Inc. (SNAP) – Guided Q1 revenue below expectations amid intense digital advertising competition, despite improved profitability.

Steris Plc (STE) – Maintained full-year profit outlook after a modest revenue beat, supported by sterilization products demand.

Thomson Reuters Corp. (TRI:CA) (TRI) – Reported higher Q4 revenue and issued solid growth guidance, with investors monitoring AI-related competitive risks.

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