Investment Week at a Glance
Stocks finished higher for the week. The Dow Jones Industrial Average rose 0.3%, the S&P 500 was up 1.1%, and the NASDAQ rose 1.5%. Foreign stocks (MSCI EAFE) were also up for the week, rising 0.3%. Bond prices were down for the week, with the 10-year U.S. Treasury ending the week at 4.08%. (Data source: Wall Street Journal)
Supreme Court Strikes Down Tariffs
The Supreme Court released its much-anticipated ruling last week, as tariffs were struck down. The Court did not address whether importers are entitled to refunds from the previously imposed tariffs or how that all will work out. Lower courts are likely to come up with these rulings, which could drag out for months or even years to come. The Trump administration immediately responded, saying it would use Section 122 to implement a 10% tariff across all trading partners. This will last for 150 days, as any further extension will need Congressional approval. During those 150 days, the administration will look to use sections 301 or 232 to implement tariffs going forward.
How Supreme Court Decision Impacts Markets
While the decision will get a lot of attention and headlines, the market was expecting this ruling and had almost no reaction to the decision. Many expect this not to mean much in the long run, as there are other ways for tariffs to get imposed. Some companies may get a refund, which will boost earnings, but it likely won’t have a major impact, if anything, slightly positive. The ruling did give investors some clarity and took an uncertainty off the table, which is typically a positive. Time will tell if any real change comes from this ruling or if we see any impact on the economy going forward.
Coca-Cola Stock Up Over 13% Year to Date
The beverage giant, Coca-Cola, beat Q4 earnings expectations on February 10th, 2026, while reporting $11.82 billion in revenue, missing estimates of $12.03 billion. The company provided a conservative outlook for the remainder of the year due to weakening demand in international markets (KO Investor Relations). Despite the conservative outlook for the remainder of 2026, the company has still been attractive to many investors as a shift from technology into consumer staples has taken place to start the year. Coke’s rival Pepsi has seen similar drops in beverage demand but seems to offset this drop through its other product lines, such as Frito-Lay. If sustained drops in beverage demand continue, Pepsi’s well-diversified portfolio may make its stock more attractive to investors in the long run over its rival, Coke. (CNBC)
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Quiz
What is the top sector in the S&P 500 for 2026? (Scroll Down for Answer)
- Technology
- Utilities
- Consumer Staples
- Energy
Answer:
4. Energy. The rise in energy prices have helped the energy sector this year, up over 23% in less than 2 months to start 2026. Energy is also the best performing sector over the past 5 years up nearly 140%. The next closest is technology up 106% over the same time period.
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