February 5, 2026
Finance

Dow Jones Declines Sharply Amid Mixed Earnings Reports; Bristol Myers Squibb Surpasses Q4 Expectations

Market indexes retreat as sector performances diverge and key earnings releases influence investor sentiment

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Summary

On Thursday, the Dow Jones Industrial Average experienced a significant decline, dropping more than 400 points during mid-day trading, alongside negative movements across major U.S. stock indexes. Bristol Myers Squibb reported better-than-expected fourth-quarter results, contrasting with mixed financial performances from other companies. Sector dynamics showed a modest rise in real estate shares, while materials stocks declined substantially. International markets also faced downward pressure, and recent U.S. labor and energy data pointed to a nuanced economic backdrop.

Key Points

Dow Jones Industrial Average declined by over 400 points, falling 0.86% to 49,073.13 during Thursday's session.
Bristol Myers Squibb reported Q4 2025 revenues of $12.50 billion and adjusted earnings of $1.26 per share, beating consensus despite a 25% year-over-year earnings decline.
C3is Inc shares rose 40% after Imperial Petroleum disclosed majority ownership; Polestar Automotive gained 33% following a $400 million equity financing announcement.
Commodities such as oil, gold, silver, and copper all saw declines, reflecting weaker commodity markets on the day.

The U.S. stock market faced pronounced downward pressure in the middle of Thursday's trading session, with the Dow Jones Industrial Average decreasing by over 400 points or 0.86%, settling at 49,073.13. Alongside this, the NASDAQ Composite slipped 1.03% to 22,669.07, and the S&P 500 index declined 0.91% to 6,820.34, signaling a broadly negative market environment.

Within specific sectors, real estate equities demonstrated resilience, edging up by 0.1% during the session. Conversely, materials-oriented stocks experienced a notable retreat, falling by 2.2%, indicative of selective sector pressure.

Bristol Myers Squibb Quarterly Performance

Bristol Myers Squibb & Co. (NYSE: BMY) delivered quarterly financial results that exceeded consensus analyst projections. For the fourth quarter of 2025, the pharmaceutical giant reported revenues of $12.50 billion, surpassing the expected $12.281 billion and marking a 1% increase compared to the same period in the previous year.

On earnings per share, Bristol Myers announced adjusted earnings of $1.26 per share, outperforming the consensus estimate of $1.11. It is notable that these earnings figures reflected a 25% decrease year over year, affected by factors including acquired IPRD (In-Process Research and Development) charges and licensing income, illustrating the impact of non-recurring items within their earnings profile.

Notable Stock Movements

Among individual stocks, C3is Inc (NASDAQ: CISS) experienced a significant surge, with shares rising approximately 40% to $2.12. This increase followed a Securities and Exchange Commission filing that revealed Imperial Petroleum Inc. (NASDAQ: IMPP) now holds an 81.9% ownership stake in the company, signaling a substantial change in shareholder composition.

Polestar Automotive Holding UK Plc (NASDAQ: PSNY) also registered considerable gains, advancing 33% to $16.83. This upward trend coincided with the announcement of a $400 million equity financing round, underscoring investor interest in the company's growth capital raise.

SiTime Corp (NASDAQ: SITM) added 24% to reach $432.66 per share after releasing fourth-quarter results that surpassed market expectations. Furthermore, SiTime issued first-quarter guidance exceeding analysts' estimates and disclosed the acquisition of Renesas’ timing business, moves that contributed to positive market reception.

Stocks Facing Downward Pressure

Conversely, several companies encountered notable share price declines. Fluence Energy Inc (NASDAQ: FLNC) shares dropped 31% to $20.07 following the release of mixed first-quarter financial results, reflecting investor caution amid uncertain earnings performance.

Cerence Inc (NASDAQ: CRNC) saw its stock price decrease by 32% to $7.32 after reporting quarterly financial outcomes that were characterized as mixed. Additionally, the company issued full-year 2025 adjusted earnings per share guidance below consensus, which likely influenced the negative market response.

Ralliant Corp (NYSE: RAL) shares declined 29% to $40.00 after disclosing its fourth-quarter results and providing first-quarter adjusted earnings per share guidance with a mid-point below analyst expectations. The company also forecasted adjusted earnings for fiscal year 2026 that fell short of estimates, contributing to downward pressure on the stock.

Commodity Market Overview

In commodities trading, benchmark crude oil prices decreased by 2.5%, closing at $63.51 per barrel, indicating a retreat in energy markets. Gold prices also moved lower by 0.9%, ending the day at $4,907.60 per ounce. Silver experienced a pronounced decline of 9.4% to $76.455, while copper prices fell by 0.5% to $5.8210 per pound, reflecting a broadly soft day across key metals.

International Market Performance

European equity markets trended downward, with the STOXX 600 index in the eurozone declining by 1.05%. Among national indices, Spain's IBEX 35 dropped by 1.97%, London's FTSE 100 decreased 0.90%, Germany's DAX slipped 0.46%, and France's CAC 40 fell 0.29%, illustrating widespread weakness across major European benchmarks.

In the Asia-Pacific region, market results varied. Japan's Nikkei 225 index fell 0.88%, whereas Hong Kong's Hang Seng Index edged up marginally by 0.14%. Meanwhile, China's Shanghai Composite declined 0.64%, and India's BSE Sensex decreased by 0.60%, highlighting a generally cautious tone among Asian investors.

Economic Indicators

Recent U.S. labor market data revealed a decrease in job openings by 386,000 in December, settling at 6.542 million positions. This figure was notably lower than market estimates, which had projected 7.2 million openings, suggesting some easing in labor demand.

Weekly initial jobless claims for the last week of January rose by 22,000 to 231,000 claims, exceeding the market forecast of 212,000, indicating a slight uptick in unemployment filings.

Natural gas inventory data showed a drawdown of 360 billion cubic feet for the week ending January 30, pointing to a decrease in U.S. natural-gas stockpiles.

Risks
  • Bristol Myers Squibb's adjusted earnings fell 25% year-over-year, influenced by acquired IPRD charges and licensing income, introducing profitability uncertainties.
  • Several companies, including Cerence Inc and Ralliant Corp, issued earnings guidance that fell below market expectations, signaling potential headwinds.
  • Declines in commodity prices may reflect broader economic concerns that could impact related sectors and overall market sentiment.
  • Rising U.S. initial jobless claims and a reduction in job openings indicate potential labor market softness, which could affect economic growth projections.
Disclosure
Education only / not financial advice
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Ticker Sentiment
BMY - positive CISS - positive PSNY - positive SITM - positive FLNC - negative
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