Morning Preview: February 20, 2026

Early Look

U.S. futures are showing little change as markets experienced a slight decline on Thursday. Despite this, they remain on track for weekly gains. Investors are cautious ahead of the key inflation Personal Consumption Expenditures (PCE) data set to be released at 8:30 AM ET, along with other significant economic indicators including personal income, GDP data, S&P global manufacturing, new home sales, and Michigan confidence readings. Additionally, the U.S. Supreme Court will meet at 10 AM ET, with potential implications for tariffs.

Market Overview

This week has been dominated by earnings reports, with over 74% of the 425 S&P 500 companies that have reported so far exceeding analysts' expectations. No major companies are scheduled to report today, but the earnings season is expected to gain momentum next week.

Market Performance

• Dow: -25.00 points (0.05%) to 49,433
• S&P 500: -2.25 points (0.04%) to 6,874
• Nasdaq: -4.50 points (0.02%) to 24,854

Geopolitical Developments

Increased macroeconomic headlines have impacted market sentiment. Reports indicate that President Trump is contemplating a limited air strike on Iran to pressure the country into compliance with nuclear deal negotiations. This potential military action could occur within days, raising concerns about broader military engagement. Consequently, oil prices surged to their highest levels in six months before experiencing a slight decline overnight. Gold prices have also risen, reaching $5,000 per ounce, while silver is priced at $80 per ounce.

Global Market Updates

Asian markets saw mixed results, with Mainland China and Taiwan markets closed, while Hong Kong's Hang Seng index fell by 292 points to 26,413. The Nikkei index in Japan dropped by 642 points to 56,825. In Europe, the German DAX rose by 58 points to 25,102, and the FTSE 100 increased by 62 points to 10,689.

Economic Calendar for Today

• 8:30 AM ET: Personal Income M/M for December (est. +0.3%)
• 8:30 AM ET: Personal Spending M/M for December (prior +0.3%)
• 8:30 AM ET: PCE Price Index M/M for December (est. +0.3%, prior +0.2%)
• 8:30 AM ET: PCE Price Index Y/Y for December (est. +2.8%, prior +2.8%)
• 8:30 AM ET: Core PCE Price Index M/M for December (est. +0.3%, prior +0.2%)
• 8:30 AM ET: Core PCE Price Index Y/Y for December (est. +2.9%, prior +2.8%)
• 8:30 AM ET: GDP Q4 advance reading (est. +3.0%)
• 9:45 AM ET: S&P Global Manufacturing PMI, flash-Feb (est. 52.6)
• 10:00 AM ET: University of Michigan Sentiment, Feb-final (est. 57.3)
• 10:00 AM ET: New Home Sales M/M for December (est. 730K)

Sector News Breakdown

Consumer Sector

Comfort Systems reported Q4 EPS of $9.37, exceeding estimates. Copart's Q2 EPS fell slightly short of expectations. Floor & Décor Holdings guided FY comps lower than anticipated.

Energy Sector

Con Ed reported Q4 adjusted EPS of $0.89, slightly above estimates, while Northern Oil & Gas announced an ownership adjustment in a joint acquisition.

Financial Sector

American Home 4 Rent met expectations with Q4 FFO/SHR of $0.47. Blue Owl reassured investors about its capital position.

Healthcare Sector

AbbVie and Genentech received expanded FDA approval for their cancer drug, while Grail Inc. faced setbacks in trial results for its early detection test.

Technology Sector

Nvidia is nearing a $30 billion investment in OpenAI, revising its previous commitment. Akamai Technologies and Alarm.com reported positive earnings, exceeding estimates.

Conclusion

As the market prepares for a busy day of economic data and geopolitical developments, investors remain cautious but optimistic about the ongoing earnings season and its potential impact on market trends.