New York, January 31, 2026, 13:50 (EST) — Market closed.
U.S. industrial stocks slipped slightly on Friday, with the Industrial Select Sector SPDR Fund closing down 0.19% at $165.13 ahead of the weekend.
The sector’s next test arrives early next week with the Institute for Supply Management set to release its manufacturing Purchasing Managers’ Index on Feb. 2, followed by the services PMI on Feb. 4, both at 10 a.m. EST. These PMI readings, based on surveys, indicate business conditions—numbers above 50 signal expansion. (Institute for Supply Management)
Wall Street is gearing up for the February 6 U.S. jobs report, following this week’s Federal Reserve decision to hold off on cutting rates. About 25% of the S&P 500 will report earnings in the next few days. Jim Baird of Plante Moran Financial Advisors noted, “For those companies where expectations have become very, very lofty, the onus is going to be on them to deliver.” Sid Vaidya at TD Wealth added that capital spending on AI infrastructure shows no signs of slowing. (Reuters)
Earnings have held up as a key support. According to FactSet, positive EPS surprises in the industrial sector have been major drivers boosting the index’s overall earnings growth this season. The blended S&P 500 earnings growth rate stood at 11.9% as of Jan. 30, with 127 companies set to report next week. (FactSet Insight)
Positioning hasn’t leaned defensive in the sector. According to LSEG Lipper data, industrial sector funds attracted $3.04 billion in inflows during the week ending Jan. 28, topping sector-focused equity funds. (Reuters)
Friday saw industrials push higher while the broader market pulled back; the Dow Jones Industrial Average declined 0.36%, and the S&P 500 dropped 0.43%. GE Aerospace stood out, finishing up 2.65%. (MarketWatch)
Tariffs continue to weigh on heavy equipment and manufacturing firms. Caterpillar estimates $2.6 billion in tariff-related expenses for 2026, with around $800 million hitting in the first quarter alone. The company also noted a boost from data-center power demand, as its power-and-energy segment sales climbed 23% to $9.40 billion this quarter. (Investing.com Australia)
Industrial traders have a busy week ahead with earnings reports from Emerson Electric and TransDigm Group, according to a corporate calendar. (MarketScreener)
There’s a key risk to the “week ahead” forecast: the U.S. Bureau of Labor Statistics warned that release dates could shift due to a government services lapse, even though it currently schedules the Employment Situation report for Feb. 6 at 8:30 a.m. Eastern. If that report gets delayed, markets will lean more heavily on interest rates and company guidance for cues. (Bureau of Labor Statistics)
Monday’s ISM manufacturing PMI release is the next key catalyst, with Friday’s payrolls report coming after. In between, new industrial earnings will reveal if investors remain willing to pay a premium for cyclical growth.
