To The Moon

After the market went on a short rally on last Thursday (13 Feb) helped by promising wholesale inflation report and an executive order from President Trump that stopped short of imposing additional tariffs, we saw the market went into a mixed performance on last Friday (14 Feb).

NASDAQ managed to rise 0.41% to close the session on a three-week high, S&P 500 was seen to be floating with an all-time high in early session before finishing the session with almost unchanged -0.01% while DJIA declined by -0.37%. The major indexes have all moved higher last week with DJIA added 0.6%, the S&P 500 rose 1.5%, and the NASDAQ gained 2.6%.

Retail sales in the U.S. took a significant hit in January, falling 0.9% month-over-month to $723.9 billion. This was a sharp reversal from December's revised 0.7% increase. Motor vehicle and parts dealers saw a year-over-year increase, while sectors like sporting goods and department stores experienced declines. The data reflects broader economic challenges impacting consumer spending.

S&P 500 Four Sectors Up With Modest Gains

There was only four S&P 500 sectors which finished the session with modest gains between 0.13% to 0.60%. $NVIDIA(NVDA)$ was up 2.63% and Apple (AAPL) up 1.27% which contributed to technology sector gain of 0.60%, while Broadcom (AVGO) stock fell 1% pulling the sector down a bit.

Communication Services sector was helped by shares of Meta Platforms (META) which rose 1% to notch the stock's 20th consecutive winning session.

Airbnb (ABNB) led S&P 500 gainers, soaring more than 14% Friday after the company beat earnings estimates. Roku (ROKU) stock also jumped double digits after it posted a narrower-than-expected loss. Palo Alto Networks (PANW) rebounded from an early slump to close just 1% lower after issuing guidance that underwhelmed Wall Street. Chip manufacturing equipment provider Applied Materials (AMAT) led Nasdaq 100 losers, falling 8% on disappointing results.

Note Yield Dropped Sharply

Treasury yields dropped sharply on the report, with the 10-year yield falling to 4.48% from 4.53% while the 2-year yield has slipped to 4.29%.

The dollar also fell. Yields have retreated from their highs earlier this year as investors have adjusted their expectations for interest rate cuts and attempted to predict the impact Trump's tariff plans will have on inflation and the labor market.

Stocks To Watch

Airbnb (ABNB) was the top-performing stock in the S&P 500 on Friday, popping 14.5% higher after the vacation rental platform topped expectations for fourth-quarter profits, bookings, and gross booking value. CEO Brian Chesky suggested that the company intends to develop the Airbnb app into a one-stop shop for travel needs.

Shares of server provider $SUPER MICRO COMPUTER INC(SMCI)$ wrapped up a week of significant gains with a surge of 13.3%. In addition to the upbeat fiscal 2026 revenue outlook provided by Supermicro earlier this week, the company received a boost from reports on Friday that Facebook parent $Meta Platforms, Inc.(META)$ plans to make a large investment in humanoid robots. The robots would likely operate on cloud-based artificial intelligence (AI) technology, and Meta uses Supermicro's servers in its data centers. Supermicro faces a deadline on Feb. 25 for the filing of its delayed annual report.

Fourth-quarter results from Wynn Resorts (WYNN) blew past sales and profit estimates, and shares of the hotel and casino operator jumped 10.4%. Highlights of the quarter included strong performance from the company's Wynn Palace property in Macau as well as its Las Vegas operations. The company also highlighted construction progress on its integrated resort in the United Arab Emirates, which is on track to open in March 2027.

Nvidia (NVDA) has exited its stakes in several companies, including SoundHound AI (SOUN, Financial), Serve Robotics (SERV), and Nano-X (NNOX), triggering significant stock declines. In its latest 13-F filing, Nvidia also revealed a reduction in its stake in Arm Holdings (ARM) by 44%. The move comes as Nvidia continues to adjust its investment portfolio, maintaining stakes in companies like Applied Digital (APLD) and Nebius.

Speculation about a potential tie-up between $Intel(INTC)$ and Taiwan Semiconductor (TSM) has driven Intel shares up by nearly 25% over the past week. However, Citi analysts express skepticism about the feasibility of such a partnership, citing differences in manufacturing processes and corporate culture. The geopolitical implications of such a deal also add complexity to the potential collaboration.

If we looked at how the market is looking at INTC, it is trending to be above the 200-day period, and we are seeing that INTC has cross into the overbought region as well, and how I see it is there is a good momentum from the buying sentiment for INTC on the RSI.

And we are seeing that INTC could be making a good move towards a longer period of upside, and I believe this is the time to look at INTC seriously if you are looking for semiconductor makers stocks to invest in.

Palo Alto Networks (PANW) reported mixed quarterly results, but analysts remain optimistic about its future, particularly in the AI-linked security space. Despite a 4.5% premarket decline, the company's strategic focus on cloud and AI security positions it well for future growth.

Apple (AAPL) is working to launch its AI features in China by May, navigating regulatory hurdles with local partners. The tech giant is adapting its Apple Intelligence service for the Chinese market, collaborating with companies like $Baidu(BIDU)$ and Alibaba (BABA) to meet local regulatory requirements.

Summary

I would think that tomorrow (18 Feb) when the market is back from one day holiday, we could see some volatility trading as traders and investors began to comprehend how the sectors would be moving.

Focus on technology and some growth stocks might continue, I will be watching some of the AI related stocks closely as I believe there should be some increased interest in these stocks.

Appreciate if you could share your thoughts in the comment section whether you think market would come back with some volatilty but AI stocks might see some increased interest.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.