THE ETERNAL SOVEREIGN

Tag: USA

  • Top stocks of the week

    C.H. Robinson, Charles Schwab, CBRE

    The AI-driven displacement trade weighed on multiple sectors this week.

    Logistics companies were particularly pressured, with C.H. Robinson (CHRW) dropping more than 14% on Thursday amid AI-related concerns. The stock has fallen over 10% for the week.

    Brokerage firm Charles Schwab slid starting Tuesday and is down roughly 9% over the past week. Its CEO told Bloomberg TV that management was “disappointed and surprised” by the sell-off, noting the firm is actively integrating AI to benefit clients.

    Real estate services company CBRE sank sharply on Wednesday and Thursday, leaving shares down about 15.2% for the week. While AI-related concerns contributed to the decline, weaker-than-expected revenue in its latest earnings report also weighed on sentiment.

    Applied Materials

    Applied Materials is on track to finish the week higher, surging more than 8% Friday (as of 13:20 ET) after posting quarterly results.

    The company exceeded consensus estimates and delivered strong second-quarter guidance. Brokerage Summit Insights upgraded AMAT to Buy, citing anticipated strength in wafer fabrication equipment (WFE) spending through the second half of 2026.

    Pinterest

    Shares of Pinterest tumbled more than 18% Friday following its post-close earnings release Thursday, bringing its weekly loss to over 22%.

    The company reported fourth-quarter earnings and revenue below analyst expectations and issued first-quarter guidance that also missed consensus. Loop Capital analyst Rob Sanderson said that while Pinterest has a compelling platform and strong user growth, challenges in monetization and exposure to unusual macro conditions are overshadowing its strengths.

    Sanderson downgraded PINS to Hold, noting it may take several quarters to complete its sales reorganization, manage higher spending, and rebuild investor confidence.

    Cisco Systems

    Shares of Cisco Systems dropped more than 12% Thursday following earnings.

    Although Cisco beat profit and revenue expectations and offered upbeat guidance, investors reacted negatively to weaker-than-anticipated gross margins. UBS analyst David Vogt noted that higher memory input costs are expected to pressure margins over the next several quarters, lowering FY26 gross margin forecasts.

    Unity Software

    Unity Software plunged more than 26% Wednesday after earnings, with losses extending into Thursday and Friday. The stock is now down 21% over the past week.

    While fourth-quarter results beat expectations, first-quarter revenue guidance disappointed investors. Despite that, Citizens analyst Andrew Boone maintained a positive stance, arguing that despite uncertainty around AI’s long-term impact, Unity’s platform remains essential for developers given the complexity of game creation and operations.

    Oracle

    After several weeks of declines tied to AI data center concerns, Oracle rebounded strongly, gaining more than 15% this week.

    On Monday, DA Davidson analyst Gil Luria upgraded Oracle to Buy from Neutral. He suggested that a restructured OpenAI could reestablish itself as a leading challenger to Google and meet its commitments to Oracle this year, potentially removing a key overhang for the stock.

    Sources: Sam Boughedda

  • The dollar edged higher, extending recent gains, while the euro slipped after inflation data.

    The U.S. dollar held steady on Wednesday after a sharp rebound from near four-year lows, while the euro weakened following the release of key regional inflation data.

    By 11:54 ET (16:54 GMT), the Dollar Index was up 0.3% at 97.69 and has gained more than 1% since Kevin Warsh was nominated as the next Federal Reserve chair.

    The dollar remained resilient despite softer labor market data.

    The dollar got a lift late last week after Kevin Warsh was nominated to succeed Federal Reserve Chair Jerome Powell, with markets viewing him as more hawkish and supportive of shrinking the Fed’s balance sheet.

    Attention has now turned to Warsh’s Senate confirmation and the potential implications of his appointment for U.S. interest rates when he is set to take over from Powell in May.

    A brief government shutdown had little impact on the greenback, as lawmakers approved additional funding this week, though it did delay the release of key employment data originally due on Friday.

    Traders also shrugged off a soft ADP payrolls report for January released on Wednesday.

    Eurozone consumer prices fall.

    In Europe, the euro slipped slightly, with EUR/USD down 0.1% at 1.1802, despite the release of weaker-than-expected preliminary eurozone inflation data. Consumer prices eased to an annual rate of 1.7% last month, below the ECB’s 2% target and down from 2% in December.

    The data did little to alter expectations that the European Central Bank will keep interest rates unchanged at 2% for a fifth consecutive meeting. Policymakers have recently expressed concern about the euro’s rapid rise against the dollar and its dampening effect on inflation. The euro touched a 4½-year high of 1.2084 last week.

    According to Macquarie strategist Thierry Wizman, the euro is being pulled by opposing forces. Falling inflation could pave the way for policy easing in 2026, potentially weighing on the currency as euro area rates lag those elsewhere. However, this is being offset by improving growth prospects, supported by stronger survey data and a more favorable political backdrop, including eased budget tensions in France and renewed reform momentum in Germany. Wizman said stronger growth could ultimately provide greater support for the euro than lower rates would undermine it.

    GBP/USD fell 0.3% to 1.3657, as the Bank of England was also expected to leave interest rates unchanged at its policy meeting on Thursday.

    The yen remained under pressure.

    In Asia, USD/JPY rose 0.5% to 156.55, leaving the pair near a two-week high.

    The yen faced renewed pressure this week after comments from Prime Minister Sanae Takaichi cast doubt on whether Tokyo would step in to support the currency. Attention has shifted to a snap lower house election on February 8, with Takaichi’s party expected to secure a strong victory and strengthen her grip on parliament.

    Elsewhere, USD/CNY edged up to 6.9415, hovering near its lowest level since mid-2023. AUD/USD slipped 0.4% to 0.6988 after rallying earlier in the week on a hawkish Reserve Bank of Australia meeting. The RBA raised interest rates by 25 basis points and lifted its growth and inflation forecasts for the year.

    Sources: Anuron Mitra