🪔 What to expect this week

get beauty stocks under pressure

Good morning investors! This will be another busy week.

Today we cover:

  • What to expect this week

  • Get a FREE Starbucks coffee (only today)

  • Beauty stocks under pressure

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📊 Economy and News 

What to expect this week

This week, investors will closely watch fresh inflation data and Federal Reserve Chair Jerome Powell’s testimony before Congress, alongside a packed schedule of corporate earnings reports.

Inflation and Federal Reserve Updates

The Consumer Price Index (CPI) for January is set for release on Wednesday, offering the latest insight into inflation trends after recent months of elevated price pressures. Additional inflation indicators, including wholesale, import, and export price data, will also be published.

Powell is scheduled to testify before Congress on Tuesday and Wednesday, where he is expected to address interest rate policy and the broader economic landscape. His testimony follows the Federal Reserve’s decision to hold interest rates steady in January after three consecutive cuts, as officials balance a strong job market with persistent inflation concerns. Other Federal Reserve officials, including New York Fed President John Williams and Atlanta Fed President Raphael Bostic, are also slated to speak this week.

Friday’s U.S. retail sales data will provide further economic insight, revealing whether consumer spending rebounded after a weaker-than-expected December.

Corporate Earnings Highlights

Major names to keep an eye on:

Monday, Feb. 10: McDonald’s (MCD), Vertex Pharmaceuticals (VRTX), and Onsemi (ON) report earnings.

Tuesday, Feb. 11: Coca-Cola (KO), Shopify (SHOP), Gilead Sciences (GILD), Marriott International (MAR), Welltower (WELL), and DoorDash (DASH) report earnings.

Wednesday, Feb. 12: Cisco Systems (CSCO), Applovin (APP), Equinix (EQIX), CME Group (CME), CVS Health (CVS), and Robinhood (HOOD).

Thursday, Feb. 13: Applied Materials (AMAT), Unilever (UL), Sony (SONY), Brookfield (BN), Moody’s (MCO), Airbnb (ABNB), Honda Motor (HMC), Motorola (MSI), and Coinbase (COIN).

Friday, Feb. 14: Enbridge (ENB) and Moderna (MRNA).

Global hits:

Free Starbucks (hurry!): Members of the Starbucks Rewards loyalty program can activate a coupon that will appear in the Starbucks app on Monday for one free, tall-sized (12-ounce) hot or iced coffee. They can redeem the coupon Monday by ordering on the app or in person at stores. ☕️

Myth busted: Elon Musk says he does not have plans to buy TikTok.

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📈 Stocks

S&P 500 6,025.99 (-0.95%)
DJIA 44,303.40 (-0.99%)
NASDAQ 19,523.40 (-1.36%)
BRENT CRUDE 74.66 (+0.50%)
* Prices as of Feb 10th, 12:20 AM UTC

Beauty sector had a great fall

Several beauty stocks plunged last week as E.l.f. Beauty and Estee Lauder reported disappointing earnings and cut guidance.

E.l.f. Beauty had its worst week since 2018, with shares dropping nearly -29%. Despite beating revenue estimates, it missed on earnings per share and lowered its full-year sales forecast.

CEO Tarang Amin attributed weak January sales to post-holiday discount fatigue and declining online beauty interest. Analysts from Morgan Stanley, D.A. Davidson, and UBS downgraded the stock.

Estee Lauder shares tumbled -22%, marking their worst week since November. The company announced plans to cut up to 7,000 jobs by 2026 and warned that slowing travel retail in Asia would hurt third-quarter sales, overshadowing a second-quarter earnings beat. CEO Stéphane de La Faverie admitted the company had failed to capitalize on growth opportunities.

Ulta Beauty and Coty also fell -9% and -8%, respectively, marking their worst weeks in months.

The sector also faces potential pressure from tariffs, with China imposing new levies in response to U.S. trade policies. E.l.f., which produces 80% of its goods in China, expressed relief that the new tariffs were capped at 10%, down from earlier threats of 60%.

Exciting: Why tariffs will not hurt TJ Maxx. Elsewhere, Sony’s PlayStation Network (PSN) experienced a massive outage that lasted about 24 hours.

Also check: Amazon faces new union test in North Carolina.

💵 Personal Finance

Is GM a Buy?

We discussed two top names in this week’s PRO issue (Alphabet and GM). Here is an excerpt from the issue:

GM and the broader auto industry must navigate softening new car prices, potential tariffs under Trump, evolving EV policies, persistently high interest rates, and increased competition. For GM, the key to staying on course will be disciplined cost management and effective capital allocation.

If GM continues to return cash to shareholders through dividends and potential new buybacks while keeping costs in check, the stock may still perform well—even amid uncertainty. However, investors are demanding more clarity on how the company plans to adapt to shifting policies and market conditions. The coming months will be critical in determining whether GM’s strong financials can translate into sustained investor confidence.

At its current price, GM stock appears undervalued. With a forward price-to-earnings (P/E) ratio of 4.36, it trades at a substantial discount compared to industry averages and its key competitor, Ford.

You can read the full issue here. Remember, PRO membership is available for as low as $3.99 per month (for a limited time). So, upgrade now to receive these weekly PRO issues and much more.

Here’s an excerpt from our section on Alphabet (Google):

💰 Be a Better Investor

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Nothing in this newsletter is financial advice. Always do your own research and think for yourself.