New York, February 1, 2026, 13:20 (EST) — The market is now closed.
- XLC ended Friday at $120.08, up 0.24%. Gains in telecom offset declines in internet platforms.
- Verizon surged 11.8% following an upgraded profit and cash flow outlook, coupled with a $25 billion share buyback plan.
- Disney will release its earnings before the bell on Feb 2. Alphabet is up next on Feb 4, with the jobs report due on Feb 6.
U.S. markets remained shut over the weekend. The Communication Services Select Sector SPDR ETF (XLC) closed its most recent session at $120.08, up 0.24%. Verizon surged 11.8%, offsetting some of the pain from Meta’s 2.9% decline.
The sector was a major player this earnings season, offsetting stable telecom revenues against internet firms reliant on advertising. On Friday, the S&P 500 communication services sector index slipped 0.23%, yet it finished January up 5.7%, per S&P Dow Jones Indices data.
Friday’s session carried a political edge as investors weighed Donald Trump’s selection of former Federal Reserve governor Kevin Warsh to succeed Chair Jerome Powell. Earnings reports and inflation data also factored in. The S&P 500 slipped 0.43%, while the Nasdaq fell 0.94%. Michael Hans, chief investment officer at Citizens Wealth, said the “markets are calibrating” to the Fed appointment and outlook. Angelo Kourkafas from Edward Jones pointed to “mixed tech earnings” and ongoing inflation pressures. Reuters
Verizon jumped after forecasting adjusted earnings of $4.90 to $4.95 per share in 2026, with free cash flow at a minimum of $21.5 billion — both numbers topping consensus estimates of $4.76 and $20.96 billion, according to LSEG and Visible Alpha. The company also unveiled plans for up to $25 billion in buybacks over the next three years, marking its first such program in nearly six years. Holiday promotions helped add 616,000 postpaid phone subscribers, beating FactSet forecasts. “Verizon will no longer be a hunting ground for our competitors,” said CEO Dan Schulman. Analysts at MoffettNathanson pointed to last week’s closing of the Frontier Communications deal as a key step in Verizon’s pivot to bundled wireless and broadband services. Reuters
The rally lifted other telecom names too. AT&T surged 4.3% to $26.21, with T-Mobile US up 4.2% at $197.21 on Friday, even though the broader market showed signs of weakness.
AT&T forecasted adjusted earnings between $2.25 and $2.35 per share for 2026 earlier this week, relying on network growth to sustain its wireless and home internet segments. CEO John Stankey highlighted plans to reach over 40 million customer locations with fiber by year-end, fueled by its acquisition of Lumen Technologies’s consumer fiber assets and a spectrum purchase from EchoStar.
Comcast saw a sharper-than-anticipated decline in broadband subscribers in Q4, blaming rising competition. Co-CEO Mike Cavanagh highlighted that NBCUniversal is set to deliver around 40% of major live events this year. The company also flagged subscriber gains at its Peacock streaming platform, boosted by rights deals with the NBA and NFL ahead of big-ticket events like the Super Bowl and Winter Olympics.
Investors are zeroing in on whether the sector’s earnings momentum can live up to high expectations. According to a January 30 update from FactSet, eight of the 11 S&P 500 sectors showed year-over-year earnings growth. Information technology, industrials, and communication services stood out as the top performers.
The wireless surge leans heavily on promotions, and that’s a double-edged sword. If carriers keep slashing prices to lure customers, margins could take a hit. On top of that, the mix of growth and defensive stocks in the sector leaves it exposed to sudden shifts in rate outlooks.
Disney plans to report its fiscal first-quarter earnings before the market opens on Feb. 2. Investors are zeroing in on streaming profits, attendance figures at its parks, and how well the company is controlling costs.
Alphabet is set to release its Q4 and full-year 2025 earnings on Feb. 4. Investors will zero in on ad demand and how the company’s spending matches up with market tolerance for big investment outlays.
Beyond earnings, all eyes are on the Bureau of Labor Statistics employment report, due out Feb 6 at 8:30 a.m. ET. This number will be key for shaping rate expectations after last Friday’s market shakeup.
