Dow hits third straight record but tech slips ahead of key jobs data

^DJI -0.13% ^GSPC -0.00% ^IXIC -0.16%

4:15pm: Dow notches another record

Stocks closed mixed Tuesday, with the Dow Jones notching its third consecutive record close while other major indexes slipped.

The Dow finished at 50,188, up 52 points or 0.1%, while the S&P 500 fell 23 points, or 0.3%, to 6,942. The Nasdaq was down 136 points, or 0.6%, to 23,102, and the Russell 2000 lost 10 points, or 0.4%, to 2,679.

The market reaction came after slower retail sales data added caution to an otherwise strong earnings season. Investors are now focused on a flurry of crucial economic reports this week, starting with Wednesday’s January jobs report, which is expected to provide clarity after last week’s signals of softening in the labor market.

Friday’s Consumer Price Index reading will then offer insight into inflation pressures as the Federal Reserve navigates its dual mandate of price stability and employment.

Earnings headlines continue to draw attention, with Ford and Robinhood set to report after the bell.

3:45pm: Proactive news headlines

• OKYO Pharma Ltd (NASDAQ:OKYO) appointed Flavio Mantelli as Chief Medical Officer, leveraging his experience in ocular drug development, including the blockbuster eye therapy Oxervate.

• Medicus Pharma (NASDAQ:MDCX) received FDA clearance to start a Phase 2b dose-optimization trial of Teverelix in men with advanced prostate cancer and elevated cardiovascular risk.

• NanoViricides (NYSE-A:NNVC) filed for FDA Orphan Drug Designation for its experimental measles treatment NV-387, aiming for regulatory incentives and potential market exclusivity.

• Nextech3D.AI (CSE:NTAR, OTCQX:NEXCF, FRA:1SS) expanded its AI-driven enterprise platform to include corporate gifting, enhancing employee engagement and incentive program capabilities.

• 1911 Gold Corp (TSX-V:AUMB, OTCQB:AUMBF, FRA:2KY) released a preliminary economic assessment for its True North Gold Project in Manitoba, supporting a low-capital restart with production targeted for 2027.

• NextSource Materials Inc. (TSX:NEXT, OTCQB:NSRCF) announced a C$25 million offering to fund its UAE battery anode facility, update its Molo technical report, and cover general corporate purposes.

2:50pm: Market movers

• Datadog Inc (NASDAQ:DDOG) shares jumped 16% after the cloud monitoring firm reported fourth-quarter revenue up 29% year-on-year to $953 million and non-GAAP EPS of $0.59, both beating Wall Street expectations.

• ON Semiconductor posted better-than-expected fourth-quarter earnings, with revenue of $1.53 billion coming in line with estimates despite declining from a year earlier.

• Ferrari (NYSE:RACE) shares climbed about 9% after the luxury carmaker reported fourth-quarter net revenue of €1.8 billion, exceeding market expectations.

• The Coca-Cola Company (NYSE:KO) shares fell roughly 2.8% after the beverage giant reported its first quarterly revenue miss in five years, even as adjusted EPS of $0.58 beat forecasts.

• Marriott International Inc (NYSE:MAR) shares surged 8.5% after the hotel operator posted fourth-quarter revenue of $6.69 billion that slightly beat estimates, though adjusted EPS came in just below consensus.

• Spotify Technology SA (NYSE:SPOT) shares rallied after the music streaming company reported fourth-quarter revenue growth of 13% year-on-year on a constant-currency basis, topping earnings expectations despite mixed revenue comparisons.

• CVS Health Corp (NYSE:CVS) reported stronger-than-expected fourth-quarter results, with revenue rising 8.2% to $105.7 billion, beating analysts’ forecasts on broad-based growth.

1:55pm: Stocks turn selective

Investors are weighing resilient corporate earnings against signs of slowing economic momentum, according to market analysts.

Antonio Di Giacomo, senior market analyst at XS.com, said the index has entered a consolidation phase after a recent rally, supported largely by technology stocks tied to artificial intelligence and data center investment, which continue to be viewed as long-term growth drivers.

At the same time, softer economic data has tempered broader gains. December retail sales were flat and missed expectations, reinforcing concerns that consumer spending — a key pillar of US growth — is beginning to cool. “The economic outlook shows signs of deceleration, limiting a broader market advance,” Di Giacomo said.

That backdrop has pushed investors to become more selective, favoring companies with strong balance sheets and durable margins, while contributing to higher volatility and widening performance gaps across sectors. Di Giacomo noted that earnings season is driving greater dispersion, with gains concentrated among firms that beat forecasts and sharper pullbacks in those that disappoint.

12:45pm: Consumer spending slows

Consumer spending finally appears to be slowing, aligning with months of weak consumer sentiment, according to Northlight Asset Management’s Chief Investment Officer Chris Zaccarelli.

“Consumer spending has finally caught up with consumer sentiment, and not in a good way,” Zaccarelli said.

While Americans had continued to spend despite rising concerns over costs, December’s retail sales report shows that this trend may be easing.

Zaccarelli noted that the trajectory of the economy will depend on labor market strength and continued support from last year’s OBBBA bill. “To the extent that the labor market holds up and consumers see more cash in their pockets from all of the pro-cyclical measures…then the economy can keep growing; but if this is a more permanent change in spending patterns then it could be the canary in the coalmine that signals a more serious slowdown.”

The data suggest that consumers, long a driver of US economic growth, may be tightening their wallets, raising concerns about the resilience of the post-pandemic expansion.

11:35am: Small business optimism dips

The NFIB Small Business Optimism index slipped in January, ending a two-month streak of gains, Wells Fargo said. Fewer firms expect the economy to improve, and plans for hiring and capital expenditures edged lower. On a positive note, the share of small businesses anticipating stronger sales rose to its highest level since early 2025.

Wells Fargo noted that while overall economic growth remains solid and inflation pressures appear contained, slower hiring at small firms—a key driver of employment—points to continued weakness in the labor market.

10:45am: Dow holds steady

The Dow Jones is holding steady above the 50,000 mark despite signs of slowing consumer activity.

Weak retail sales and softer small business optimism failed to deter the benchmark from setting new records, while U.S. 10-year Treasury yields fell to 4.15%, their lowest level since mid-January, bolstering expectations of a potential Fed rate cut in June.

“Despite US retail sales stalling and weaker-than-expected small business optimism, the Dow extends its record gains above the 50,000 mark,” said Axel Rudolph, Chief Technical Analyst at IG.

Investors are now focused on the delayed U.S. non-farm payrolls report and a series of speeches from Federal Reserve officials on Wednesday, seeking clues on the central bank’s policy trajectory.

10:00am: Positive start

Wall Street opened with modest gains on Tuesday, with the Dow Jones climbing 0.7% to 50,473, the S&P 500 up 0.3% at 6,984, and the Nasdaq inching 0.2% higher to 23,295.

Investors are pacing themselves ahead of a packed week of economic data, with Wednesday’s monthly jobs report taking center stage.

Retail sales in December came in flat versus expectations of a 0.4% rise, signaling a cooling consumer environment.

Adding to the picture of a moderating labor market, the US Employment Cost Index rose 0.7% in Q4, slightly below the 0.8% forecast. “Compensation costs were up 3.4% year-over-year, the slowest pace since early 2021. Overall, compensation growth has settled to a pace that supports real income gains for workers without adding meaningful pressure to inflation,” Wells Fargo analysts noted.

“This dynamic should make labor costs less of an obstacle to inflation’s return to target, but it also underscores a moderating labor market that keeps the Fed alert to the downside risks to its full employment mandate.”

ADP reported that private employers added an average of 6,500 jobs per week over the four weeks ending Jan. 24.

Corporate headlines also kept investors busy. Paramount Skydance sweetened its $30/share all-cash bid for Warner Bros. Discovery with a small quarterly ticking fee starting in 2027 if the deal hasn’t closed, and it offered to cover WBD’s $2.8 billion breakup fee to Netflix. The offer window has been extended to March 2.

Meanwhile, investors digested earnings from Coca-Cola and CVS Health, and all eyes will turn to Ford after the market closes on Tuesday.

Ahead of the bell: Dow set to plough further into record territory

US equity futures edged cautiously higher on Tuesday, keeping markets within touching distance of fresh highs after the Dow’s latest record close. However, the tone was measured rather than euphoric.

Futures tied to the S&P 500 and the Nasdaq Composite were broadly flat in early trading, extending a pattern of incremental advances rather than decisive breakouts. Investors appear willing to stay long risk assets, but only just.

That restraint follows a rebound in technology shares after a brief pullback sparked by valuation worries. Signs that demand for advanced chips remains strong, particularly those linked to artificial intelligence, have helped restore faith that the sector’s rally still has legs.

Corporate results continue to shape sentiment. Updates from consumer and healthcare heavyweights have so far avoided major disappointments, while automakers and industrial names remain under scrutiny for clues on margins and demand. In tech, upbeat signals from suppliers to AI leaders such as Nvidia have eased fears that enthusiasm has outrun fundamentals.

The bigger test arrives via the economic calendar. Retail sales figures kick off a crowded week that culminates in the US jobs report and fresh inflation data. Recent hints of labour market cooling have raised hopes of a softer landing, but also increased the risk that any upside surprise could jolt markets.

Away from equities, gold prices remain elevated after a sharp bout of volatility, with banks still broadly constructive on bullion as a hedge. Bitcoin, by contrast, has struggled to regain momentum, underscoring how fragile confidence remains in speculative corners of the market.

For now, Wall Street is holding its breath. Records are close, but conviction will depend on whether the data confirms that growth can slow without breaking.