US OPEN: Retail Earnings Spark Market Swings

• Walmart shares tumble 6% after disappointing 2026 guidance despite strong e-commerce growth, dragging down retail sector sentiment

• Shake Shack surges 14% as January comparable sales defy weather challenges, management raises full-year EBITDA outlook despite LA wildfire impact

• Carvana plunges 11% on weaker-than-expected wholesale volumes and per-vehicle profits, despite posting fastest growth in three years

• Vimeo shares drop 18% after announcing $30 million AI and security investment plan, overshadowing strong Enterprise segment performance

• Palantir extends losses, falling 7.5% on Defense Secretary's proposed military spending cuts, though analysts remain divided on long-term impact

Major US indices are showing broad weakness in early trading. The US2000 leads the declines, falling -0.77% to 2267.0, while the US100 drops -0.69% to 22068.94, and the US30 declines -0.46% to 44457. The US500 is down -0.45% to 6127.2. The VIX fear gauge has edged up +0.18% to 16.93, suggesting slightly elevated market anxiety. Latin American markets continue to show resilience, with the BRAComp rising +0.32% to 129771 and MEXComp gaining +0.42% to 54689.

European markets are displaying mixed performance, with a slight bias toward positive territory. The UK100 dips -0.22% to 8668.5, while the DE40 edges up +0.12% to 22521.2, and the SUI20 slips -0.06% to 12743. Southern European indices maintain their momentum, with the SPA35 advancing +0.84% to 12983 and the ITA40 gaining +0.11% to 38474. The EU50 shows solid gains of +0.41% to 5488.6, while France's FRA40 rises +0.32% to 8135.2. The VSTOXX, Europe's fear gauge, has decreased -0.57% to 17.58, suggesting reduced market uncertainty. Both the Austrian AUT20 and Polish W20 are showing weakness, down -0.59% to 4035 and -0.64% to 2625.6 respectively.

S&P 500 Sectors Show Mixed Performance. Source: Bloomberg Financial LP

Current volatility observed on Wall Street. Source: xStation 

The Nasdaq-100 index, represented by the US100 contract, has dropped below the previous high of 22,151. Bulls will attempt to push the index back above this level, while bears will aim to drive the price lower. If successful, the 23.6% Fibonacci retracement level, which aligns with the early December high of 21,668 and the 50-day SMA at 21,662, could come into play. The RSI is losing its bullish momentum in the overbought zone, while the MACD is starting to narrow. Source: xStation

Market & Corporate News:

• Carvana Tumbles on Mixed Q4 Results: Carvana (CVNA.US) shares plunge 11% as fourth-quarter results reveal pressure on gross profit margins despite beating overall estimates. While delivering the fastest growth in three years, lower wholesale volumes and per-vehicle profits spark investor concerns. Morgan Stanley highlights elevated pre-earnings expectations as a key factor in the selloff.

• Shake Shack Surges on Resilient January Performance: Shake Shack (SHAK.US) stock jumps 14% after reporting 3.7% comparable sales growth in January, despite weather challenges and LA wildfire impacts. The burger chain raises its 2025 adjusted EBITDA guidance to $205-215 million, while maintaining its aggressive expansion plans with about 45 new company-operated locations.

• Vimeo Shares Plummet on Investment Plans: Vimeo (VMEO.US) stock drops 85% after announcing plans to invest an additional $30 million in security, solutions, and AI initiatives, leading to lower-than-expected 2025 EBITDA guidance of $25-30 million. Despite the selloff, analysts highlight strong Enterprise segment performance and bookings growth from high-value customers.

• Palantir Declines on Defense Budget Concerns: Palantir Technologies (PLTR.US) shares fall 7.5% following Defense Secretary Hegseth's announcement of an 8% reduction in projected military spending over five years. While some analysts express concern over the company's significant government exposure, Wedbush maintains an optimistic outlook, suggesting Palantir's software approach could benefit from more disciplined Pentagon spending.

• Walmart Stock Slides on Disappointing Outlook: Walmart (WMT.US) shares decline 6% after issuing lower-than-expected 2026 earnings guidance of $2.50-2.60 per share, despite strong Q4 e-commerce growth of 20%. The retail giant announces a 13% dividend increase to $0.94 per share but faces investor concern over projected sales growth moderation to 3-4% for the coming year.

Other news coming from individual S&P 500 index companies. Source: Bloomberg Financial LP