The stock market ended a rollercoaster week on a somewhat subdued note, with the S&P 500 (flat), Nasdaq Composite (+0.3%), and DJIA (-0.6%) finishing mixed as the market balanced solid mega-cap performances against relatively weak breadth. 

Seven S&P 500 sectors finished higher, though the gains were largely modest in nature. 

The materials sector (+0.9%) captured the widest gain, supported by strength in its container and packaging names such as Smurfit Westrock plc (SW 43.80, +2.02, +4.83%) and Amcor (AMCR 44.28, +1.51, +3.53%). 

Meanwhile, the consumer discretionary (+0.7%) and information technology (+0.5%) sectors performed similarly, with each sector benefitting from solid mega-cap leadership.

Microsoft (MSFT 465.95, +14.81, +3.28%) was a standout among the magnificent seven names amid a session that saw the Vanguard Mega Cap Growth ETF gain 0.6%.

NVIDIA (NVDA 187.68, +2.84, +1.54%) also traded higher despite a tough day for chipmakers that sent the PHLX Semiconductor Index 1.2% lower. Disappointing Q1 guidance from Intel (INTC 45.07, -9.25, -17.03%) saw the stock sell-off sharply, but it was arguably due for a pullback given it was up nearly 50% in 2026. 

Importantly, Microsoft, Meta Platforms (META 658.76, +11.13, +1.72%), Apple (AAPL 248.04, -0.31, -0.12%), and Tesla (TSLA 449.06, -0.30, -0.07%) all report earnings next week. 

Reaction to earnings saw Capital One (COF 217.22, -17.84, -7.59%) finish as one of the worst-performing S&P 500 names today. The stock moved sharply lower after the company missed EPS expectations and announced it has acquired Brex Inc.  The financials sector (-1.4%) ended up as the worst-performing S&P 500 sector today, facing a loss in a majority of its components. 

The industrials sector (-0.8%) also faced broad weakness, with United Airlines (UAL 107.73, -2.67, -2.42%) giving up a chunk of its previous post-earnings strength. 

Elsewhere, the defensive health care (-0.6%) and utilities (-0.4%) sectors also finished lower amid a modest rotation back into mega-cap names. 

Despite only four S&P 500 sectors closing lower, soft breadth figures highlight some weakness beneath the surface. Decliners outpaced advancers by a roughly 3-to-2 clip on both the NYSE and Nasdaq. The S&P 500 Equal Weighted Index (-0.5%) lagged its market-weighted counterpart as a result.

Outside of the S&P 500, the Russell 2000 (-1.8%) and S&P Mid Cap 400 (-1.0%) faced considerable pullbacks today. Weakness across these smaller cap indices that have substantially outperformed so far this year highlights the variance of today's session when compared to typical action so far this year. 

Still, solid performances across some of the market's heaviest components helped prevent further losses and keep the major averages mixed. The price action of these mega-cap stocks will continue to garner attention as the market heads into a week that will see four of the "magnificent seven" names report earnings. With the market still in close proximity to record high levels, impressive upside guidance will be as important as beating earnings expectations to maintain upward momentum. 

U.S. Treasuries finished a volatile abbreviated week on a slightly higher note, continuing their resilient showing after a Tuesday plunge alongside JGBs. The 2-year note yield settled down one basis point to 3.60% (unchanged this week), while the 10-year note yield settled down one basis point to 4.24% (+1 basis point this week). 

• Russell 2000: +7.5% YTD
• S&P Mid Cap 400: +5.5% YTD
• DJIA: +2.2% YTD
• Nasdaq Composite: +1.1% YTD
• S&P 500: +1.0% YTD

Reviewing today's data:

• January S&P Global U.S. Manufacturing PMI - Prelim 51.9; Prior 51.8
• January S&P Global U.S. Services PMI - Prelim 52.5; Prior 52.5
• January Univ. of Michigan Consumer Sentiment - Final 56.4 (Briefing.com consensus 54); Prior 54
  • The key takeaway from the report is that consumer sentiment, while improved a bit, is still guarded due to lingering concerns about high prices and softening labor markets.
• Leading Economic Index -0.3%; Prior -0.1%