Fears of AI disruption unfold to new corners of the inventory market final week. Now, a query on buyers’ minds getting into the holiday-shortened week of buying and selling: How for much longer can this sell-first, ask-later type of market conduct persist? This is a better take a look at the three massive issues on faucet this week: 1. Palo Alto Networks’ earnings report Tuesday evening comes at a pivotal second. It affords CEO Nikesh Arora a chance to refute issues that synthetic intelligence will take away market share from cybersecurity suppliers — the identical concern that has thumped the shares of different software program distributors who promote, say, design or accounting software program. We’ve argued that trusted cybersecurity solely turns into extra helpful to corporations in an AI-filled world, and that the complexity of the duty carries much less displacement threat than different corners of enterprise software program. However that hasn’t stopped the market from punishing the likes of Palo Alto Networks and fellow Membership title CrowdStrike on this 2026 sell-off, even when they’ve held up comparatively higher than friends within the software program ETF referred to as the IGV and confirmed indicators of life to finish the week. Will Arora be capable of utterly squash that narrative and switch the dialog again to solely fundamentals? It appears unlikely. However it is a probability for a well-respected cyber CEO to supply buyers meals for thought as they attempt to distinguish between software program winners and losers within the age of AI. Clearly, we hope to see Palo Alto ship better-than-expected quarterly outcomes and steerage, particularly on key metrics comparable to annual recurring income (ARR) and remaining efficiency obligation (RPO). Updates on the now-completed acquisitions of CyberArk and Chronosphere are additionally more likely to be a subject of dialog. However on this fraught second for software program, sturdy outcomes and an upbeat short-term outlook will not be sufficient to show sentiment round, as buyers aren’t centered on the subsequent three months. The concern is extra existential, forcing buyers to rethink what they’re prepared to pay for earnings nicely into the long run, leading to dramatic a number of compression and decrease inventory costs. Think about a be aware from BTIG analysts revealed Thursday previewing Palo Alto’s quarter: They stated demand traits are “sturdy” and that they are assured the corporate can maintain low-to-mid-teens development over the approaching 12 months. They reiterated their purchase ranking on the inventory. And but, they reduce their value goal by $45 per share to $200, all as a result of they’re utilizing a decrease price-to-earnings ratio. This can be a powerful setup. But when the enterprise exhibits no cracks, that can strengthen our resolve to climate the storm. Income of $2.58 billion, in line with LSEG. EPS of 94 cents, in line with LSEG. Complete RPO of $15.776 billion, per FactSet. Annual recurring income (ARR) of $6.128 billion, in line with FactSet. 2. Our focus will shift from safety to steak when Texas Roadhouse reviews fourth-quarter outcomes on Thursday evening. The prevailing concern right here will not be AI, however the elevated value of beef. It has pressured margins as a result of the corporate has not raised costs in lockstep with beef inflation. For a restaurant chain that prides itself on attracting diners with a value-focused message, there’s threat in elevating costs an excessive amount of. In its preliminary 2026 outlook, supplied in November, Texas Roadhouse projected full-year commodity inflation of seven%. Whereas dwell cattle futures pulled again from late October by means of late November, the upward march has resumed. As of Friday, they’re now inside a number of proportion factors of all-time highs. Though it is a low bar, we’re hopeful Texas Roadhouse can maintain its commodity inflation outlook steady. One other factor to observe: The corporate additionally usually shares its plans for menu-price modifications on the fourth-quarter name, with implementation at first of its second quarter in April. Final 12 months, it raised costs by 1.4% in April and 1.7% in October, so the extent executives select this time round carries intrigue. Texas Roadhouse’s potential to drive visitors will increase that gas same-store gross sales development — the important thing metric for evaluating eating places — has attracted buyers to the inventory. When visitors is growing, it suggests you are gaining share relative to rivals. Within the third quarter, Texas Roadhouse noticed visitors development of 4.3%, which, coupled with a 1.8% in value, translated to six.1% same-store gross sales development. If Texas Roadhouse is ready to ship continued development in visitors within the fourth quarter, that will likely be one thing for the bulls to hold their hats on. On condition that we have trimmed our place twice this 12 months within the $180s , we’re snug holding the inventory right here. However absent a transparent indication that beef inflation has peaked, this is not the place to place new cash to work. This is what Wall Road is anticipating: Income of $1.496 billion, in line with LSEG. EPS of $1.51, in line with LSEG. Similar-store gross sales development of 5.16%, per FactSet. 3. There are additionally a number of financial reviews on our radar, headlined by Friday’s private consumption expenditures (PCE) index. That’s the Federal Reserve’s most popular inflation gauge. After the buyer value index (CPI) report got here in cooler than anticipated Friday, the hope is that the PCE delivers extra excellent news on the inflation entrance, giving the central financial institution extra cowl to chop charges all year long. As of Friday, the market is pricing within the first reduce of 2026 on the Fed’s June assembly, in line with the CME FedWatch Instrument. That is additionally the primary one on the calendar following the expiration of Chair Jerome Powell’s time period in Might. As House Depot shareholders, we would like decrease charges to hopefully give the still-stagnant housing market a jolt. Among the many different financial reviews to observe this week are the Census Bureau’s take a look at January housing begins on Tuesday morning and new house gross sales on Friday morning. The Nationwide Affiliation of Realtors’ pending house gross sales for January are due out on Thursday. Lastly, on Friday, we’ll get the preliminary studying on fourth-quarter U.S. gross home product. The Atlanta Fed’s real-time tracker estimates that GDP grew 3.7% within the last three months of 2025. Week forward Monday, February 16 All main U.S. inventory and bond markets, together with the NYSE and Nasdaq, are closed for Presidents’ Day. Tuesday, February 17 Empire State Manufacturing Survey at 8:30 a.m. ET NAHB Housing Market Index at 10 a.m. ET Earlier than the bell: Power Switch LP (ET), Medtronic (MDT), SunCoke Power (SXC), Leidos Holdings (LDOS), Vulcan Supplies Firm (VMC), Krystal Biotech (KRYS), Ceragon Networks (CRNT), Fluor Corp. (FLR), Allegion (ALLE), Builders FirstSource (BLDR), CNH International (CNH) After the bell: Palo Alto Networks (PANW) , Hecla Mining Firm (HL), Cadence Design Programs (CDNS), Devon Power (DVN), EQT Company (EQT), SSR Mining (SSRM), Toll Brothers (TOL), FirstEnergy (FE), Halozyme Therapeutics (HALO), Huntsman (HUN), Kenvue (KVUE), MKS Devices (MKSI), Nano Nuclear Power (NNE), Axcelis Applied sciences (ACLS), Celanese (CE) Wednesday, February 18 Census Bureau’s Housing Begins at 8:30 a.m. ET The Fed’s Industrial Manufacturing and Capability Utilization Report at 9:15 a.m. ET The Fed’s January assembly minutes at 2 p.m. ET Earlier than the bell: Analog Gadgets (ADI), SolarEdge Applied sciences (SEDG), Garmin (GRMN), Moody’s (MCO), Constellium (CSTM), Liberty International (LBTYA), ProPetro Holding (PUMP), Bausch + Lomb (BLCO), Charles River Laboratories (CRL), Jones Lang LaSalle (JLL) After the bell: Kinross Gold (KGC), Coeur D’Alene Mines (CDE), Pan American Silver (PAAS), Carvana (CVNA), Figma (FIG), Royal Gold (RGLD), DoorDash (DASH), Equinox Gold (EQX), Remitly International (RELY), eBay (EBAY), Occidental Petroleum (OXY), B2Gold (BTG), Cheesecake Manufacturing unit (CAKE), Blue Owl Capital Company (OBDC), Oceaneering Worldwide (OII), Bausch Well being (BHC), Nutrien (NTR), Molson Coors Beverage Firm (TAP) Thursday, February 19 Preliminary Jobless Claims at 8:30 a.m. ET The Philadelphia Fed Index at 8:30 a.m. ET Nationwide Affiliation of Realtor’s Pending House Gross sales for January at 10 a.m. ET Earlier than the bell: Walmart (WMT), First Majestic Silver (AG), Quanta Providers (PWR), Lemonade (LMND), Deere & Firm (DE), Klarna (KLAR), Visteon (VC), Wayfair (W), NICE (NICE), Alight (ALIT), Southern Firm (SO) After the bell: Texas Roadhouse (TXRH) , Opendoor Applied sciences (OPEN), Newmont Mining (NEM), Transocean (RIG), Dwell Nation Leisure (LYV), Sprouts Farmers Market (SFM), Akamai Applied sciences (AKAM), AXT (AXTI), Centerra Gold (CGAU), Copart (CPRT), Eldorado Gold (EGO), Metallus (MTUS), Ardelyx (ARDX), Barings BDC (BBDC), Chemours (CC) Friday, February 20 Private Consumption Expenditures (PCE) Index at 8:30 a.m. ET Fourth-Quarter GDP Report (Preliminary) at 8:30 a.m. ET Census Bureau’s New House Gross sales at 10 a.m. ET Earlier than the bell: AngloGold Ashanti (AU) (See right here for a full checklist of the shares in Jim Cramer’s Charitable Belief.) 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