January 9, 2026
S&P futures +0.1% in Friday morning trading following a mostly higher Thursday close, with market broadening the dominant theme. The equal-weight S&P 500 outperformed the cap-weighted index by >110 bp, as defense, energy, consumer staples, regional banks, machinery, building materials, homebuilders, chemicals, restaurants, and retail/apparel led, while big tech, memory, semis, metals, and biopharma lagged.
Overnight, Asian markets were mostly higher, led by Japan, China, and South Korea, while European equities gained ~0.8%. Treasuries were slightly weaker with curve flattening, the dollar rose 0.1%, gold gained 0.4%, silver jumped 3.4%, Bitcoin futures fell 1.1%, and WTI crude rose 0.2%.
Friday is a major catalyst day, with focus on December NFP and a potential Supreme Court ruling on IEEPA tariffs. Labor expectations center on a softening but still stable “no-hire, no-fire” backdrop, with markets fully priced for two rate cuts in 2026. On tariffs, a ruling against IEEPA is seen as supportive for risk sentiment, though timing, refunds, deficit effects, and a pivot to alternative tariff authorities (Sections 122/301) could introduce follow-on volatility.
Policy and geopolitics remain elevated. Attention includes Trump’s state-capitalism/affordability push (instruction for the GSEs to purchase $200B of mortgage bonds), ongoing geopolitical flashpoints (Venezuela, Mexico, Greenland, Iran, Ukraine-Russia, Japan-China), and continued discussion around pro-cyclical rotation and market broadening.
On the calendar, December employment, preliminary January UoM sentiment, and October housing starts are due. Consensus looks for NFP +55K (risk skewed higher) and UR easing to 4.5%. Markets also expect the SCOTUS IEEPA decision today. President Trump is scheduled to meet with oil executives regarding Venezuela.
Company Highlights
- Okta (OKTA) — Shares boosted after announcing power infrastructure deals with Meta Platforms.
- Vistra (VST) — Higher on AI-power related agreements with Meta.
- Taiwan Semiconductor Manufacturing Company (TSM) — Reported December-quarter revenue up ~20% y/y, beating consensus.
- xAI — Reportedly burned ~$8B in cash over the first nine months of 2025.
- Glencore (GLEN) — Shares rose after confirmation of merger talks with Rio Tinto.
- Johnson & Johnson (JNJ) — Reached deal with U.S. government to lower select drug prices in exchange for tariff exemptions.
- Intel (INTC) — Benefited from positive comments by President Trump.
- General Motors (GM) — Announced ~$7B in Q4 charges tied to EV wind-down and China restructuring.
- Fannie Mae (FNMA) and Freddie Mac (FMCC) — In focus after Trump instructed the GSEs to purchase $200B of mortgage bonds, lifting mortgage and homebuilder stocks.
- WD-40 (WDFC) — Q1 miss; destocking and order timing cited as headwinds.
- Olin (OLN) — Pressured by negative Q4 preannouncement.
- AXT (AXTI) — Fell on negative Q4 preannouncement, citing China permitting issues.
U.S. equities finished mostly higher Thursday (Dow +0.55% | S&P 500 +0.01% | Nasdaq −0.44% | Russell 2000 +1.11%), though headline index performance masked very strong underlying breadth. The equal-weight S&P 500 outperformed the cap-weighted index by more than 110 bp, reflecting continued rotation away from mega-cap tech and toward cyclical and value-oriented areas. The Dow advanced, the Russell 2000 materially outperformed, and the Nasdaq declined, weighed down by weakness in semiconductors and networking.
Markets remained positioned ahead of several near-term catalysts, including Friday’s December employment report, a potential Supreme Court ruling on IEEPA tariffs, the Fed chair announcement, and the start of Q4 earnings season next week. Defense stocks were a major leadership pocket following President Trump’s renewed push for a ~50% increase in Pentagon spending. Rate pressure also stayed in focus, with the 10-year Treasury yield edging closer to the 4.20% area.
Macro data were mixed. Initial claims matched expectations at 208K, while continuing claims rose. Preliminary Q3 productivity surprised to the upside at 4.9% SAAR, offsetting unit labor cost growth of 1.9%. The October trade deficit narrowed sharply to $29.4B, the smallest since 2009. The NY Fed consumer survey showed higher near-term inflation expectations alongside rising labor-market pessimism.
Across assets, Treasuries sold off modestly (yields +2–4 bp). The dollar index rose 0.2%. Gold was flat, silver fell 3.2%, Bitcoin futures dipped 0.2%, and WTI crude surged 3.2% on energy-specific headlines.
Sector Highlights
Sector performance underscored the breadth-driven, pro-cyclical rotation. Energy (+3.20%) led decisively, followed by Consumer Staples (+2.26%), Consumer Discretionary (+1.72%), Materials (+1.38%), Real Estate (+0.79%), Industrials (+0.78%), Communication Services (+0.59%), Financials (+0.57%), and Utilities (+0.32%). Technology (−1.54%) and Health Care (−0.91%) lagged, weighed down by semiconductors/memory and biotech after M&A clarification. Overall, the session reinforced broadening participation beyond mega-cap tech heading into key labor, legal, and earnings catalysts.
Energy
- Exxon Mobil (XOM) — Sector sentiment improved alongside a sharp rebound in crude; earnings chatter highlighted weaker upstream trends offset by stronger Energy Products margins.
Industrials
- Northrop Grumman (NOC) +2.4% — Advanced on Trump’s call for a $1.5T Pentagon budget, implying a >50% increase from FY26 levels.
- RTX (RTX), General Dynamics (GD), L3Harris Technologies (LHX) — Also benefited from the defense-spending push.
- Acuity Brands (AYI) −12.9% — Sold off after margins missed expectations despite in-line revenue.
Financials
- Jefferies Financial Group (JEF) −5.6% — Post-earnings laggard as fixed-income trading and DCM activity were light and non-comp expenses weighed.
- Regional banks, asset managers, and private-equity names broadly participated in the cyclical advance.
Information Technology
- NVIDIA (NVDA) — Bloomberg reported China may approve imports of H200 chips as early as Q1, though the broader memory and semiconductor complex lagged.
- Samsung Electronics — Preliminary Q4 results beat expectations, but shares lagged amid elevated memory-cycle expectations.
- Canadian Solar (CSIQ) — Pressured after announcing a $200M convertible offering.
Health Care
- Eli Lilly (LLY) — Confirmed acquisition of Ventyx Biosciences (VTYX) for $1.2B in cash.
- AbbVie (ABBV) −4.0% — Downgraded at Wolfe Research; company said it is not in talks to acquire Revolution Medicines (RVMD).
- Globus Medical (GMED) +4.5% — Pre-announced Q4 revenue nearly 6% above expectations and issued initial 2026 guidance above consensus.
- Teleflex (TFX) −13.1% — Lowered FY25 revenue guidance due to softer demand.
Consumer Discretionary
- Costco Wholesale (COST) +3.7% — Reported December U.S. comps +6.3%, exceeding expectations and supporting staples-adjacent retail.
- Constellation Brands (STZ) +5.3% — FQ3 EPS and revenue beat; beer depletions better than feared; FY26 guidance reiterated.
- Toll Brothers (TOL) — Announced a CEO transition as homebuilders broadly benefited from cyclical rotation.
- Angi (ANGI) — Announced a global workforce reduction.
Communication Services
- Alphabet (GOOGL) — Continued to outperform within the Mag 7 on improving AI-execution sentiment.
- Paramount Global / Skydance — Reaffirmed its bid for Warner Bros. Discovery, keeping media M&A in focus.
Eco Data Releases | Friday January 9th, 2026
S&P 500 Constituent Earnings Announcements | Friday January 9th, 2026
No constituents report today
Data sourced from FactSet Research Systems Inc.
