The Bottom Line
All time high for the Dow Jones Industrial Average on Friday! Strength is coming from sectors other than technology, an encouraging technical sign. The Average recorded gains despite a 4.5% drop by the Magnificent 7 ETF (MAGS) last week. Strength in U.S. equity markets is “broadening out” into other sectors including Materials, Industrials, Financials, Energy and Consumer Staples. Stock prices in these sectors responded to higher than consensus fourth quarter revenues and earnings. Analysts responded by raising earnings and revenue estimates and by boosting target prices.
In Canada, strength was most notable in the Financial Services sector, particularly the banks. An all-time high was recorded by BMO Equal Weight Canadian Bank ETF (ZEB.TO)
Economic focuses this week are on the December U.S. Retail Sales Report on Tuesday, January U.S. Employment Report released on Wednesday and the U.S. January Consumer Price Index released on Friday.
Earnings and Revenues Consensus for S&P 500 Companies
Source: www.factset.com
Analyst earnings and revenue estimates for the fourth quarter increased significantly again last week: 59% of companies have reported quarterly results to date.
- Consensus for fourth quarter 2025 earnings gains was raised to 13.0% from 11.9% last week. Consensus for revenue growth increased to 8.8% from 8.2%. For all of 2025, consensus for earnings gains increased to 13.5% from 13.2%. Consensus for revenue gains increased to 7.4% from 7.3%.
- Consensus for first quarter 2026 calls for an 11.3% earnings increase, down from an 11.7% increase last week. Revenue gains increased to 8.7% from 8.4%.
- Consensus for second quarter 2026 earnings gains remained at 14.9%. Consensus for revenue gains increased to 7.9% from 7.5%.
- Consensus for third quarter 2026 earnings gains increased to 15.4% from 15.2%. Consensus for revenue gains increased to 7.2% from 6.8%.
- Consensus for fourth quarter 2026 earnings gains dropped to 15.0% from 15.4. Revenue gains increased to 7.4% from 7.3%.
- For all of 2026, consensus for earnings gains slipped to 14.1% from 14.3%. Consensus for revenue gains remained at 7.3%.
Economic News This Week
December U.S. Retail Sales released at 8:30 AM EST on Tuesday are expected to increase 0.5% versus 0.6% in November. Excluding auto sales, December Sales are expected to increase 0.3% versus a 0.5% increase in November.
November U.S. Business Inventories released at 10:00 AM EST on Tuesday are expected to increase 0.2% versus a 0.3% increase in October.
January U.S. Employment Report is released at 8:30 AM EST on Wednesday. Consensus for January Non-farm Payrolls is a 60,000 increase versus a 50,000 increase in December. Consensus for the January Unemployment Rate is unchanged from December at 4.4%. Consensus for January Average Hourly Earnings calls for a 0.3% increase versus a 0.3% increase in December. On a year-over-year basis, consensus calls for a 3.7% increase versus a 3.8% increase in December.
January Consumer Price Index released at 8:30 AM EST on Friday is expected to increase 0.3% versus 0.3% in December. On a year-over-year basis, January CPI is expected to increase 2.5% versus 2.7% in December. Excluding food and energy, January CPI is expected to increase 0.3% versus a 0.2% increase in December. On a year-over-year basis, January core CPI is expected to increase 2.5% versus 2.6% in December.
Selected Earnings News This Week
Seventy eight S&P 500 companies (including three Dow Jones Industrial Average companies: Coca Cola, Ford, Cisco) are scheduled to report. Ten TSX 60 companies are scheduled to report.
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for February 6th 2026
Green: Increase from previous day
Red: Decrease from previous day
Source for all positive seasonality ratings: www.EquityClock.com
Commodities
Daily Seasonal/Technical Commodities Trends for February 6th 2026
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for February 6th 2025
Green: Increase from previous day
Red: Decrease from previous day
Changes last week
Links offered by valued providers
MoneyTalks with Michael Campbell for February 7th
Michael Campbell’s MoneyTalks – Complete Show (mikesmoneytalks.ca)
MARKET ALERT: Worst Job Cuts Since 2009! ⚠️ Amazon Crushed & Bitcoin Bounce?
Verified Investing
MARKET ALERT: Worst Job Cuts Since 2009! ⚠️ Amazon Crushed & Bitcoin Bounce? – YouTube
Meet Kevin Warsh: Ed Yardini
Technology Bounces EXACTLY At Key Support To Stave Off Breakdown: Tom Bowley
https://www.youtube.com/watch?v=hbaLExb6TFM
Market, Metals, Bitcoin Correction Predictable: Mark Leibovit
https://www.howestreet.com/2026/02/market-metals-bitcoin-correction-predictable-mark-leibovit/
Canada’s Economy is ‘On Life Support’: Danielle Park
https://www.howestreet.com/2026/02/canadas-economy-is-on-life-support/
Will Interest Rate Policy Change With New Fed Head? Tim Wood
https://www.howestreet.com/2026/02/will-interest-rate-policy-change-with-new-fed-head-tim-wood/
AI Infrastructure Is Leading — Not the Headlines! Mary Ellen Mcgonagle
https://www.youtube.com/watch?v=2yhOVjJ2kF8
Weekly Update with Larry Berman – February 7, 2026: Larry Berman
https://www.youtube.com/watch?v=4SBtP9LUy20
Sector Rotation Alert: Small Caps Are Breaking Out! ValueTrendCanada
https://www.youtube.com/watch?v=hrUYRippyGA
Will New Fed Head March to Trump’s Drummer? Bob Hoye
https://www.howestreet.com/2026/02/will-new-fed-head-march-to-trumps-drummer-bob-hoye/
Technical Notes for Friday
Dow Jones Industrial Average ($INDU) moved above 49,616.95 to an all-time high extending an intermediate uptrend.
BMO Equal Weight Canadian Banks ETF (ZEB.TO) moved above $59.80 to an all-time high extending an intermediate uptrend. Helped by Scotia Bank and Toronto Dominion Bank breaking to all-time highs!
Amazon (AMZN) a Dow Jones Industrial Average stock moved below $215.18 and $211.03 completing a double top pattern.
Biogen (BIIB) a NASDAQ 100 stock moved above $190.20 extending an intermediate uptrend.
Door Dash (DASH) a NASDAQ 100 stock moved below $182.04 extending an intermediate downtrend.
Pembina Pipeline (PPL.TO) a TSX 60 stock moved above Cdn$58.42 to an all-time high extending an intermediate uptrend.
S&P 500 Momentum Barometers
The intermediate term Barometer added 3.80 on Friday and gained 2.00 last week to 68.60. It remains Overbought.
The long term Barometer added 1.60 on Friday and gained 1.20 last week to 68.40. It remains Overbought.
TSX Momentum Barometers
The intermediate term Barometer advanced 7.83 on Friday and gained 10.90 last week to 76.50. It remains Overbought.
The long term Barometer added 0.46 on Friday and gained 3.13 last week to 82.49. It remains Overbought.
Disclaimer: Seasonality ratings and technical ratings offered in this report and at
www.equityclock.com are for information only. They should not be considered as advice to purchase or to sell mentioned securities. Data offered in this report is believed to be accurate, but is not guaranteed.
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Equity Clock Publications