CNBC Business News Update - Market Midday: Stocks Lower, Software Makers Lower On AI Fears, Eli Lilly With Strong Results 2/4/26

Episode Date: February 4, 2026

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I'm Jessica Eddinger, CNBC. We're in the red across the board now this afternoon. Major averages all lower. The Dow is now down 70 points. It's being led lower by shares of Goldman Sachs, which are down 4.5%. Invidia is also tanking 4%. The S&P 500 index down 69 points. That's 1%. The NASDAQ falling 511 points. More than 2%. software company shares are falling. Investors realizing again today that AI could replace a lot of software made by a lot of the big names. I mean, this is really about what's happened in AI over the last few weeks. It's shifted from answering questions to doing the actual work.

And that is really what's behind the disruption that we're seeing across the software trade. CNBC's Dear Drabosa, Salesforce, down 25% Adobe, down 20% service. now down almost 30% docusign, down 32%. Meantime chipmaker AMD shares are plunging 15% while CEO Lisa Sue says chip demand is accelerating. Job creation in January came in at just 22,000, according to ADP. Manufacturing has lost jobs every month since March of 2024. The service sector, well, without that, we wouldn't have much going on.

Small business has been extremely challenged. since the Liberation Day tariffs at zero, a goose egg right there. It had a slight gain last month, and it's been negative before that. Medium-sized business doing a little better, up 41,000 and large businesses, shedding workers this time around, down 18,000. CNBC's senior economics reporter Steve Leesman. Drugmaker Novo Nordisk shares are lower. It's got the blockbuster, diabetes and weight loss drugs, OZempik, and Wagovi.

But the CEO warns that revenue is going to get worse before it gets better. the company's lowering some prices, but drug maker Eli Lilly shares are higher. That's Novo's competitor. Lilly has also lowered prices for the diabetes and weight loss drugs, Manjaro and Zepbound. There's some differences here. One, Lily's the market leader here in the U.S. and abroad in both diabetes and obesity now in revenue. And terseptitide, the ingredient in Zepbound and Manjaro, patients really experienced not only increased weight loss, but better tolerability and are prefering it across the whole. system. While prices have come down, people jump into the market when they see more affordability.

And too many people don't get insurance here. We'd like to expand that. We will expand that this year with the government deal we struck. But when the prices come down, they're sensitive to that and have seen market growth. That's Eli Lilly's CEO, David Ricks, on CNBC. Jessica Eddinger, CNBC. Support Black Heritage Month when you join the sharks and shop the tank. Level up your social games. Shop the tag. Tuesday's 9 Eastern, CNBC.