Stocks Fall on Valuation Concerns-Market Analysis for February 19th, 2026

Global Markets

Canadian Markets

Canada’s main stock index mooved higher in Thursday’s trading, supported by strength in commodity-linked sectors as gold, silver, and crude oil extended their recent gains. The move reflected renewed demand for hard assets amid currency volatility and geopolitical uncertainty. Energy producers and precious-metal miners provided leadership, helping offset weakness in rate-sensitive and technology segments.

CIBC economists say Canada’s housing market is “simply broken,” as falling home prices are now starting to weigh on the broader economy by weakening construction activity, consumer spending, and overall growth. While prices have declined from pandemic highs, they remain too expensive for many buyers, yet not high enough to make new development profitable, creating a supply-demand imbalance that is slowing housing starts and related employment. The decline in home values is also reducing household wealth, dampening consumer confidence and discretionary spending, particularly in regions such as Ontario and British Columbia where corrections have been more pronounced. Because housing and related industries represent a significant share of Canada’s GDP, CIBC warns that prolonged weakness in the sector could continue to act as a structural drag on economic growth unless building costs fall or affordability meaningfully improves.

American Markets

American stocks declined broadly as investors reassessed elevated valuations in AI-exposed names. Concerns centered on earnings sustainability, capital expenditure intensity, and the risk of overextended positioning following last year’s rally. The pullback occurred despite encouraging labour market data that showed U.S. initial jobless claims fell by 23,000 to 206,000 for the week ending February 14, materially below the consensus estimate of 229,000. The four-week moving average eased to 219,000, underscoring continued labour market resilience and limiting immediate recession fears.

 The U.S. dollar weakened modestly yet remained above recent lows after Federal Reserve meeting minutes indicated policymakers are not in a hurry to cut rates. Several officials signaled openness to further tightening should inflation reaccelerate, reinforcing a “higher for longer” policy stance.

European Markets

European equities drifted lower, weighed down by mining and utility stocks as investors digested a mixed earnings slate from major corporates including Airbus, Rio Tinto, and Nestlé. While some results showed margin resilience, others disappointed on guidance and cost pressures, limiting sector momentum. Energy shares outperformed, tracking roughly a 2% rise in crude prices, which provided partial support to the broader index. Meanwhile, the euro edged higher, stabilizing after earlier volatility driven by speculation surrounding potential leadership changes at the European Central Bank.

In the United Kingdom, stocks also declined after fresh survey data signaled persistent industrial weakness. The Confederation of British Industry reported that its monthly order book balance improved slightly to -28 in February from -30 in January, yet the reading remains well below the long-run average of -14. The data highlights ongoing demand softness and elevated input costs, reinforcing concerns about sluggish manufacturing recovery. The FTSE 100 slipped further as mining heavyweight Rio Tinto weighed on sentiment following results that missed forecasts, amplifying pressure on the resource sector despite firmer commodity prices.

Corporate Stock News

Alphabet Inc (GOOGL) – Partnered with Sea Ltd to develop AI-powered shopping tools for Shopee, expanding monetization of advanced AI applications.

American Water Works Co Inc (AWK) – Reported Q4 revenue and profit below estimates due to rising costs but reaffirmed its 2026 earnings outlook and long-term infrastructure investment plan.

Analog Devices Inc (ADI) – JPMorgan raised its price target to $400 from $320 on stronger second-quarter results and improved guidance.

Apollo Global Management Inc (APO) – Stated CEO Marc Rowan had no ties to Jeffrey Epstein amid investor calls for SEC review of prior disclosures.

Atlassian Corp (TEAM) – Named former LinkedIn finance chief James Chuong as CFO, effective March 30.

Blue Owl Capital Inc (OWL) – Selling $1.4 billion in credit fund assets at 99.7% of par to return capital and reduce debt amid market scrutiny of valuations.

Booking Holdings Inc (BKNG) – Beat Q4 profit and revenue estimates on strong international travel demand; approved a 25-for-1 stock split.

Carvana Co (CVNA) – Missed Q4 profit expectations due to higher reconditioning and depreciation costs, though revenue surged 58% on strong demand.

Cenovus Energy Inc (CVE) – Q4 net income rose sharply to C$934 million on higher upstream production; downstream throughput declined year over year.

CF Industries Holdings Inc (CF) – Surpassed Q4 profit estimates as higher nitrogen prices boosted revenue; guided 2026 capex at $1.3 billion.

Charles River Laboratories International Inc (CRL) – JPMorgan cut its price target to $165 from $190, citing a soft Q1 outlook and margin concerns.

Chevron Corp (CVX) – Turkey opposed Greece’s hydrocarbon exploration deal involving Chevron, citing maritime jurisdiction disputes.

Deere & Co (DE) – Raised full-year net income forecast on cost controls; Q1 revenue rose 13% year over year.

DoorDash Inc (DASH) – Forecast Q1 gross order value above estimates but missed Q4 EPS; Piper Sandler trimmed target to $220 from $230.

eBay Inc (EBAY) – Forecast Q1 revenue and GMV above expectations; agreed to acquire Depop for ~$1.2 billion.

Edison International (EIX) – Beat Q4 profit estimates on higher rates and lower interest costs; 2026 EPS midpoint slightly below consensus.

Eli Lilly & Co (LLY) – Berenberg raised price target to $1,050 from $950 on stronger 2026 sales outlook and anticipated oral GLP-1 approval.

Figma Inc (FIG) – Forecast 2026 revenue above estimates, citing AI-driven growth; Q4 revenue and EPS topped expectations.

Gran Tierra Energy Inc (GTE:CA) – Signed Azerbaijan exploration and production-sharing agreement with SOCAR; holds 65% working interest as operator.

Hims & Hers Health Inc (HIMS) – Agreed to acquire Eucalyptus for up to $1.15 billion, expanding international telehealth footprint.

Host Hotels & Resorts Inc (HST) – Forecast 2026 FFO above estimates on strong luxury bookings; Q4 results exceeded expectations.

Invitation Homes Inc (INVH) – Forecast 2026 FFO below expectations amid inflationary cost pressures despite steady rental growth.

Molson Coors Beverage Co (TAP) – Forecast sharp 2026 profit decline due to aluminum tariffs and weaker consumer spending.

Nutrien Ltd (NTR) – Missed Q4 profit estimates as crop nutrient volumes fell, though potash and phosphate sales rose strongly.

Occidental Petroleum Corp (OXY) – Beat Q4 profit estimates as midstream strength offset weaker oil prices; outlined 2026 capex and production guidance.

Omnicom Group Inc (OMC) – Beat Q4 revenue estimates on strong media performance but slightly missed on adjusted EPS.

Rio Tinto plc (RIO) – Reported flat annual earnings below expectations due to weaker iron ore prices; copper division remained strong.

Sea Ltd (SE) – Partnered with Alphabet’s Google to develop AI-driven shopping tools for Shopee.

Teck Resources Ltd (TECK) – Beat Q4 profit estimates on higher copper prices and production; advancing proposed merger with Anglo American.

Texas Pacific Land Corp (TPL) – Surpassed Q4 core profit expectations as higher production and water sales offset weaker oil prices.

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