Market Monitor February 6th

By Kristoff De Turck - reviewed by Aldwin Keppens

Last update: Feb 7, 2025

Market Recap: Wall Street Gains, Amazon Slips, and U.S. Job Growth Slows

Wall Street: The U.S. stock markets closed mostly higher, except for the Dow Jones (-0.3%). Ford dropped more than 7% after issuing a disappointing 2025 outlook, despite solid quarterly results. Salesforce declined 4.9% following the announced departure of COO Brian Millham. Eli Lilly gained 3.4% on strong earnings, while Honeywell lost 5.6% after announcing plans to split its business.

Amazon: The company is investing over $100 billion in AI and cloud, but disappointed investors with a weak revenue forecast for the current quarter. The stock fell 5% in after-hours trading. CEO Andy Jassy called AI the biggest technological shift since the internet and stressed the need for massive investments.

U.S. Job Market: The U.S. economy added 143,000 jobs in January, fewer than expected, but wages grew by 4.1%, exceeding forecasts. Unemployment fell to 4%. Markets initially reacted negatively but seems to recover.

Market Overview

Major Indices:

The S&P 500 (SPY) is in an uptrend, gaining 0.35% on the day.
The Nasdaq 100 (QQQ) also shows strength, rising 0.52%.
The Russell 2000 (IWM), representing small caps, declined 0.33%, indicating some weakness in smaller stocks.

Sector Performance:

Over the past week, Energy, Consumer Staples, and Consumer Discretionary sectors showed weakness.
Industrials and Real Estate also underperformed.
Technology, Communication Services, and Health Care led the market.
Over three months, Real Estate and Health Care struggled, while Information Technology and Industrials performed well.

Market Breadth Indicators:

Advancing vs. Declining stocks show mixed momentum.
A higher percentage of stocks remain above key moving averages, indicating overall market strength.
New highs outnumber new lows, confirming bullish momentum.

Key Takeaways

Large caps (SPY, QQQ) remain strong, but small caps (IWM) are lagging.
Technology continues to lead, while defensive sectors (Consumer Staples, Health Care) face pressure.
Market breadth remains constructive, suggesting bullish conditions overall.