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US stocks turned higher on Monday, after a turbulent week that ended with the Dow closing above 50,000 for the first time as investors face another busy schedule of earnings and economic data.
The Dow Jones Industrial Average (^DJI) hovered above the flat line, keeping above its milestone. Meanwhile, the S&P 500 (^GSPC) rose around 0.5%, while the tech-heavy Nasdaq Composite (^IXIC) gained about 0.5%.
Wall Street continues to debate the AI disruption risk to software companies, with a sharp decline in shares of Monday.com to start the week, the latest sign of unease toward the sector. That stock fell as much as 22% after the software maker offered revenue and profit guidance that fell short of Wall Street forecasts.
Gold (GC=F) and bitcoin (BTC-USD) also remained in focus for investors, with gold futures rising back above $5,000 an ounce on Monday while bitcoin fell back below $69,000. Both assets were hit hard last week, with bitcoin suffering its sharpest daily decline since 2022 on Thursday.
On the economic data side, investors will remain in wait-and-see mode until Wednesday, with the Bureau of Labor Statistics is set to release the delayed January jobs report. The focus will be on whether further signs of cracks in the labor market emerge after ADP’s private-sector payrolls update last week fell short. Consumer inflation data from the BLS is also set for release Friday morning.
On the earnings front, ON Semiconductor (ON) will release results after the close on Monday, with key results later this week expected from Coca-Cola (KO), McDonald’s (MCD), and Cisco (CSCO).
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Musk pivots SpaceX from Mars to moon as mega-IPO approaches
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Kroger stock rallies after the grocer names former Walmart exec CEO
Shares of Kroger (KR) jumped more than 8% in early trading on Monday after the grocery chain said it tapped former Walmart (WMT) exec Greg Foran to lead the company.
Foran begins work as CEO immediately, taking over for interim CEO Ron Sargent, who has led the company since last March. Foran previously led Walmart US for six years, overseeing a turnaround in that division and accelerating Walmart’s digital capabilities.
The CEO change comes as Kroger seeks to grab market share after its acquisition of Albertsons was blocked by regulators in 2024. It also comes amid chief executive turnover at other major retail chains, including Target and Walmart.
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US stocks open lower as software woes continue
US stocks opened lower on Monday, with all three major indexes falling in the opening minutes of trade and the Nasdaq Composite (^IXIC) pacing declines, dropping about 0.5%.
The most notable single-stock move in markets, however, is a reminder of where investors fears still lie — software stocks.
Shares of monday.com (MNDY) fell as much as 23% in early trade on Monday after the company’s sales and profit forecasts fell short of estimates, the latest software-exposed name to be judged harshly by investors as questions over how AI-related disruptions will impact future profits remain abundant.
Overall, investors will remain in wait-and-see mode with some of the week’s biggest earnings and economic data reports set for release later, notably Wednesday morning’s January jobs report.
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STMicroelectronics announces multibillion-dollar deal with Amazon, stock surges 8%
STMicroelectronics (STM) said Monday that it expanded its partnership with Amazon (AMZN) through a multiyear, multibillion-dollar contract, sending shares of the chip manufacturer and designer up about 8% in premarket trading.
Under the agreement, ST will supply Amazon Web Services with chips and other technologies for its data centers. The move demonstrates ST’s push into the artificial intelligence market, lessening its reliance on other chip end uses, such as electric vehicles.
“This strategic engagement establishes ST as an important supplier to AWS and validates the strength of our innovation, proprietary technology portfolio, and proven manufacturing-at-scale capabilities,” ST CEO Jean-Marc Chery said. “Our advanced semiconductor solutions will directly power AWS’s next-generation infrastructure, enabling their customers to push the boundaries of AI, high-performance computing, and digital connectivity.”
The deal comes after Amazon, like the other hyperscalers, said it plans to spend billions more on the artificial intelligence infrastructure build-out. Last Thursday, Amazon forecast it would spend $200 billion on capital expenditures, a massive increase from its $125 billion spending plans in 2025.
Amazon stock was down fractionally in premarket trading.
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Monday.com stock drops 15% on guidance miss
Monday.com (MNDY) stock got crushed in premarket trading after the software company’s first quarter financial guidance fell short of expectations. It’s the latest tough break for the shares, down 15% ahead of the opening bell, as the company has gotten swept up in the sell-off that punished software names.
In the fourth quarter, Monday.com reported adjusted earnings per share of $1.04, beating estimates of $0.92. Revenue grew 25% year over year to $333.9 million, also beating expectations of $329.6 million, according to S&P Global Market Intelligence consensus estimates.
However, the company’s first quarter revenue guidance of $338 million to $340 million came in below expectations of $342 million. Operating income is expected in a range of $37 million to $39 million, compared to the $45 million the Street was expecting.
The stock recently faced significant losses amid a sell-off in software stocks, as investors questioned whether the disruption from artificial intelligence could take a bigger bite out of these companies’ businesses than previously expected. Year to date, Monday.com stock is down 33%.
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Premarket trenders: Kroger, Hims and Hers, and Strategy
Kroger (KR) stock rose 5% before the bell following reports that ex-Walmart executive Greg Foran would be the supermarket’s next CEO.
Hims and Hers (HIMS) stock sank 18% during premarket hours on Monday following the withdrawal of its $49 copy of a weight-loss pill after legal threats from Novo Nordisk (NVO) and a potential investigation from the US Food and Drug Administration.
Strategy (MSTR) shares fell 4% before the bell as bitcoin again dipped below $70,000. Strategy is one of the largest corporate holders of bitcoin, and its stock is currently down 14% over the last month following bitcoin’s decline.
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Novo Nordisk surges as Hims pulls $49 weight loss pill under FDA pressure
Novo Nordisk (NVO) stock rose 6% before the bell on Monday after Hims & Hers (HIMS) scrapped the launch of its $49 copy of a weight-loss pill following legal threats from the Danish group and a potential investigation from the US Food and Drug Administration.
Shares of Hims (HIMS) fell nearly 15% in premarket trading on Monday.
Novo’s stock faced pressure recently after rival Eli Lilly’s shares rallied last week following the release of its fourth quarter earnings, and it now expects 2026 revenue to grow, compared to Novo, which said it expected sales to fall this year.
Yahoo Finance’s Jake Conley reported:
Reuters reports:
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Bitcoin dips below $70,000 after wild roller-coaster ride
Bitcoin (BTC-USD) fell below $70,000 on Monday following a week of wild swings for the world’s largest cryptocurrency.
Bloomberg News reports:
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Gold advances above $5,000 as dip-buyers return to choppy market
Gold (GC=F) rose above $5,000 an ounce on Monday as dip-buyers returned following a volatile week for precious metals.
Bloomberg news reports:
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QuantumScape jumps after the launch of its battery production factory Eagle Line
QuantumScape stock rose 14% before the bell on Monday after launching its “Eagle Line” in San Jose, a high-tech pilot factory designed to mass-produce its battery parts.
Simply Wall Street reports:
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Japanese PM election leads to Nikkei 225 surge
AP Finance reports:
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Oil price falls with easing tensions removing supply pressure
Bloomberg reports:
