Good Morning Investors!!! Monday had stocks inching closer to a fresh high, helped by a new wave of artificial intelligence (AI) (software that learns from data) excitement and a solid mood across the market. A key factory survey jumped back into “growth mode,” but it also hinted that price pressure is still hanging around like glitter after a party. Oil slid as Middle East supply fears eased, and Washington’s shutdown is adding a little data fog by delaying some jobs reports. Today, keep one eye on big earnings and the other on headlines, then stick around for our “trash is cash” industry spotlight plus why Palantir (PLTR) just grabbed the market’s attention.
Key Market DriversStocks flirt with a record as AI chips roar: Stocks ended Monday on a good note. The S&P 500 rose 0.54% to 6,976 (just shy of last week’s record close), while the Dow climbed 1.05% and the Nasdaq added 0.56% as artificial intelligence (AI) chip stocks and small-company shares both jumped. That mix matters because investors like when gains spread beyond a few tech names. Overnight, stocks in Japan and South Korea jumped, and S&P 500 futures were up 0.2%. It also puts earnings in the hot seat this week, so guidance matters. 
S&P 500 1‑Year Price Chart — Feb. 3, 2026
Factory survey flips to growth and prices stay warm: U.S. factories flashed a green light in January, at least on paper. The Institute for Supply Management (ISM) said its manufacturing Purchasing Managers Index (PMI) rose to 52.6 from 47.9, and new orders jumped to 57.1. Above 50 means growth. More growth can help sales, but it can also keep prices sticky. The survey’s ‘prices paid’ gauge rose to 59.0, and some firms said tariff talk makes planning hard. The Federal Reserve (Fed) (US central bank) just held rates steady, and this kind of report can keep it patient. Oil cools off as Iran talk eases nerves: Oil prices slipped again as traders priced in fewer supply scares. Brent was near $66 a barrel and West Texas Intermediate (WTI) was about $62, after both fell 4% on Monday when talk of new U.S.-Iran talks, set for Friday, hit the headlines. Lower oil can feel like a coupon at the gas pump, and it can also cool inflation. Cooler inflation can take pressure off rates, which markets tend to cheer. The flip side is that energy firms may earn less, while airlines and shippers often breathe easier. Shutdown delays the jobs report and adds fog: Washington’s partial shutdown is turning off a key set of market headlights. The Bureau of Labor Statistics (BLS) said the January jobs report will be delayed until funding resumes, and the Job Openings and Labor Turnover Survey (JOLTS – the job openings report) is delayed too. Investors use jobs data to guess what the Fed will do next, so a delay leaves more room for rumors to drive price swings. Lawmakers are aiming for a vote Tuesday to restore funding, but each extra day adds clutter. If the shutdown drags on, data quality can suffer too. |
Thoughts from InvestorsGrow:
This week has a bit of “data fog” thanks to the shutdown. The Bureau of Labor Statistics has put some key labor reports on pause, including today’s JOLTS and the January jobs report that was set for Friday. That can make markets more jumpy since traders have fewer “official” signposts to follow.
So tomorrow’s ADP print matters a bit more than usual. If it lands well above 45,000 jobs, bond yields can pop since investors may think rates stay higher for longer. If it comes in well below 45,000, yields may cool, but the market may also start to sniff around for slower growth.
Waste and Recycling
Trash stays busy, even when markets don’t: Waste and recycling firms do a simple job: pick up what we toss out. Demand is not flashy, but it is steady, so these stocks often act “defensive” (holds up better in rough markets). For a quick snapshot, the VanEck Environmental Services ETF (EVX) is up about 15% over the past year.
The growth angle is recycling plus fuel. The new twist is turning waste into higher value products. Renewable natural gas (RNG) (cleaned landfill gas used as fuel) can turn a landfill into a mini energy plant. Better plastics sorting also helps more bottles become bottles again. Earnings this month should show if pricing stays strong and if volumes hold up.
Waste Management (WM):
WM runs the biggest U.S. trash-and-recycling network, with landfills and routes that are hard to copy. That scale can support steady price increases and strong cash flow. Management guided for 2026 revenue of $26.4B–$26.6B and free cash flow (FCF) (cash left after upkeep) of $3.75B–$3.85B.
Republic Services (RSG):
Republic is another major U.S. player, and it is investing in “better recycling,” not just more bins. It has been building Polymer Centers with partners to turn sorted plastics into usable raw material for packaging. The company is set to report fourth-quarter results after the close on Feb. 17.
Veolia (VEOEY):
Veolia is a global leader in water and waste services, with a growing U.S. footprint. It agreed to buy hazardous-waste specialist Clean Earth for about $3B, with the deal expected to close by mid-2026. Its 2025 yearly results are scheduled for Feb. 26.
InvestorsGrow Takeaway:
Watch housing starts, because more building usually means more waste volume. For company updates, focus on price increases and total tons collected, since those two knobs drive most of the revenue story. A key red flag is a volume dip paired with higher fuel or labor costs, which can squeeze profit. If housing starts fall while prices stop rising, expect this “steady” group to wobble.
Palantir Technologies (PLTR)
Palantir makes software that helps teams pull lots of data into one place and then find patterns. Think of it like a super-powered “search and sort” for messy info, used by the U.S. government and big companies. It also sells AI tools that help workers ask questions in plain English and get usable answers fast.
After Monday’s close, Palantir shared results for the last quarter of 2025. Sales came in at about $1.41 billion, up roughly 70% from a year ago, helped by a sharp rise in U.S. government work. Palantir also gave a strong 2026 sales forecast, and the stock jumped about 10% before the open Tuesday.
This matters because markets are in “prove it” mode on AI. Investors want real dollars, not just slick demos and big buzzwords. Palantir’s forecast for 2026 sales is around $7.2 billion, and that is well above what analysts had penciled in near $6.27 billion. The catch is price: its price-to-earnings ratio (P/E) is around 140 on next year’s estimates, so the bar is high.
InvestorsGrow Takeaway:
Palantir is trying to win in two lanes at once: steady government budgets and fast AI adoption in business. Watch U.S. commercial sales growth and big new contract wins, since those two levers feed the next forecast. Keep a side-eye on pushback about data use, because headlines can slow deals and make renewals harder. If growth stays hot while the P/E cools down, the ride can get smoother. If growth slips, a pricey stock can lose its balance fast.
