New York, February 1, 2026, 13:20 (EST) — The market has closed.
- XLC wrapped up Friday at $120.08, gaining 0.24%. Telecom gains balanced out losses in internet platforms.
- Verizon jumped 11.8% after boosting its profit and cash flow forecast and announcing a $25 billion share repurchase program.
- Disney is set to report before the bell on Feb 2. Alphabet follows on Feb 4, and the jobs report lands on Feb 6.
U.S. markets were closed over the weekend. The Communication Services Select Sector SPDR ETF (XLC) ended its last session at $120.08, gaining 0.24%. Verizon jumped 11.8%, cushioning the impact of Meta’s 2.9% drop. (Finviz)
The sector played a key role during earnings season, balancing steady telecom cash flow against ad-dependent internet companies. The S&P 500 communication services sector index dropped 0.23% on Friday but closed January with a 5.7% gain, according to S&P Dow Jones Indices data. (S&P Global)
Friday’s trading had a political buzz. Investors digested Donald Trump’s choice of former Federal Reserve governor Kevin Warsh to replace Chair Jerome Powell, alongside earnings reports and inflation numbers. The S&P 500 dropped 0.43%, while the Nasdaq lost 0.94%. “Markets are calibrating” to the Fed pick and the outlook, said Michael Hans, chief investment officer at Citizens Wealth. Angelo Kourkafas of Edward Jones highlighted “mixed tech earnings” and inflation pressures as well. (Reuters)
Verizon surged after projecting 2026 adjusted earnings between $4.90 and $4.95 per share, alongside free cash flow of at least $21.5 billion — both figures beating expectations of $4.76 and $20.96 billion, per LSEG and Visible Alpha. The company also announced up to $25 billion in buybacks over three years, its first such move in nearly six years. Holiday promotions drove an addition of 616,000 postpaid phone subscribers, surpassing FactSet estimates. “Verizon will no longer be a hunting ground for our competitors,” said CEO Dan Schulman. Analysts at MoffettNathanson highlighted last week’s closing of the Frontier Communications deal as Verizon shifts toward bundled wireless and broadband offerings. (Reuters)
The surge boosted other telecom stocks as well. AT&T jumped 4.3% to $26.21, while T-Mobile US climbed 4.2% to $197.21 on Friday, despite weakness elsewhere in the market. (MarketWatch)
AT&T earlier this week projected adjusted earnings of $2.25 to $2.35 per share for 2026, banking on network expansion to hold its ground in wireless and home internet. CEO John Stankey said the company expects to cover more than 40 million customer locations with fiber by year-end, boosted by its deal to acquire Lumen Technologies’s consumer fiber assets and a spectrum purchase from EchoStar. (Reuters)
Comcast reported a bigger-than-expected drop in broadband subscribers for the fourth quarter, citing mounting competition. Co-CEO Mike Cavanagh noted that NBCUniversal plans to provide about 40% of major live events this year. The company also pointed to subscriber growth at its Peacock streaming service, driven by rights deals with the National Basketball Association and National Football League, ahead of major events like the Super Bowl and Winter Olympics. (Reuters)
Investors are now focused on whether the sector’s earnings momentum can meet lofty expectations. A January 30 update from FactSet showed that eight out of the 11 S&P 500 sectors posted year-over-year earnings growth, with information technology, industrials, and communication services leading the charge. (FactSet Insight)
The wireless surge, however, relies heavily on promotions, which cuts both ways. If carriers continue discounting to attract switchers, subscriber growth could erode margins. Plus, the sector’s blend of growth and defensive stocks makes it vulnerable to abrupt changes in rate expectations.
Disney is set to release its fiscal first-quarter results ahead of the Feb 2 open. Investors will focus on updates about streaming profitability, park attendance, and expense management. (The Walt Disney Company)
Alphabet plans to report its fourth-quarter and full-year 2025 results on Feb. 4. Investors will be closely tracking ad demand and whether the company’s spending aligns with the market’s appetite for large investment budgets. (Alphabet Investor Relations)
Aside from earnings, the spotlight this week falls on the Bureau of Labor Statistics employment report, set for release on Feb 6 at 8:30 a.m. ET. It will be a crucial gauge for rate forecasts following last Friday’s market turbulence. (Bls)
