S&P futures up 0.1% Tuesday morning, following a mixed start to the week where big tech and semis rallied but defensives and rate-sensitive sectors faced pressure. Treasuries slightly weaker, continuing Monday’s bear steepening. Dollar index down 0.2%, gold up 0.3%, Bitcoin futures off 1%, and WTI crude up 0.7%.
Markets remain focused on NVDA’s CES keynote, highlighting advancements in physical AI. Other key themes include big tech’s breakout, weak breadth, Trump 2.0 tariff and reconciliation volatility, a busy macro week ahead (NFP Friday), and M&A momentum. Today’s economic calendar features November JOLTS and December ISM services, with Treasury selling $39B of 10-year notes. The week includes ADP private payrolls and FOMC minutes on Wednesday, and December jobs report on Friday.
Corporate highlights:
- NVDA-US unveiled new AI products and partnerships at CES 2025.
- SYK-US to acquire NARI-US for $4.9B in cash.
- NXPI-US acquiring TTech Auto for $625M.
- PSX-US acquiring EPIC Y-Grade assets for $2.2B.
- ULTA-US announced CEO transition and raised Q4 guidance.
- SSTK-US and GETY-US to merge.
- META-US added three new board members.
- AAPL-US expanding its News app to drive publisher revenues.
US equities ended mixed on Monday, with the Dow down 0.06%, S&P 500 up 0.55%, Nasdaq rising 1.24%, and Russell 2000 off 0.08%. Gains followed a strong Friday rally but left indices mostly lower for the holiday-shortened week. The S&P snapped a five-day losing streak on Friday but struggled to hold momentum. The dollar index fell 0.6%, reversing some of its prior week’s gains, as the Trump administration denied reports of tariff adjustments. WTI crude dipped 0.5%, while Bitcoin futures surged 3.7%, crossing the $100K mark. Treasuries weakened across the curve, with the 2/10 spread reaching its most positive level since May 2022.
AI remained a key theme, bolstered by Nvidia’s upcoming CES keynote and Microsoft’s AI-related investments. Economic data were mixed, with November factory orders falling 0.4% m/m, below consensus, while the December Markit Services PMI rose to 56.8, reflecting strong business confidence and robust new orders. Tariff uncertainty lingered as reports on Trump’s potential easing were denied, but his focus on GOP priorities through a reconciliation bill continues to draw attention. The legislative backdrop and a less aggressive Fed easing cycle remain top concerns for investors.
It’s a packed week ahead with November JOLTS, December ISM services (Tuesday), ADP private payrolls and FOMC minutes (Wednesday), and December jobs report (Friday). Continued AI enthusiasm, legislative updates, and tariff policy clarity could drive near-term sentiment. Treasury auctions and ongoing earnings updates will also influence trading momentum
Corporate News by GICS Sector
Information Technology
- +3.4% NVDA-US (NVIDIA): CEO Jensen Huang delivered a CES 2025 keynote, emphasizing AI opportunities. Stock continued its recent rally, with optimism surrounding AI demand.
- +8.2% X-US (United States Steel): Filed a lawsuit against the Biden administration after the blocked Nippon Steel deal. Media reports noted Biden went against senior officials advocating negotiations.
- -5% PLTR-US (Palantir): Downgraded to underweight at Morgan Stanley, citing valuation concerns and overreliance on cost-cutting rather than revenue growth for free cash flow expansion.
Consumer Discretionary
- +23.3% PYCR-US (Paycor HCM): Bloomberg reported advanced acquisition talks with PAYX-US; a deal could be announced this week.
- +6.6% SEDG-US (SolarEdge): Announced a restructuring plan involving 400 job cuts and new safe harbor agreements for clean energy tax credits.
- +2.5% SHOP-US (Shopify): Upgraded to outperform by Wedbush, citing pricing power in subscription services and payments growth.
- -2.6% PAYX-US (Paychex): Down on reports of acquisition talks with PYCR-US.
Industrials
- +7.2% TER-US (Teradyne): Upgraded to outperform at Northland Capital, citing advanced packaging tailwinds in memory and application processor markets.
- +3.2% CMC-US (Commercial Metals): FQ1 results in line; highlighted resilient North America demand and downstream bidding strength.
Health Care
- -2.4% PRGO-US (Perrigo): Downgraded to neutral at Piper Sandler due to slower-than-expected improvement in infant formula and delays in Opill ramp-up.
Financials
- +2.5% C-US (Citigroup): Upgraded to overweight at Barclays, noting expected earnings growth acceleration and valuation improvement in 2025.
- -2.3% HLNE-US (Hamilton Lane): Downgraded to sell at Goldman Sachs on concerns over slowing fee growth and softer demand in retail/private wealth.
Energy
- WTI crude fell 0.5%, with no major headlines directly impacting energy stocks during the session.
Real Estate
- +2.5% BROS-US (Dutch Bros): Upgraded to outperform at Baird, citing strong operating momentum and expectations for market outperformance.
Eco Data Releases | Tuesday January 7, 2025
S&P 500 Constituent Earnings Announcements | Tuesday January 7, 2025
No constituents report today
Data sourced from FactSet Research Systems Inc.
