[BRIEFING.COM] The stock market ended the week on an underwhelming note, with the S&P 500 (-0.1%), Nasdaq Composite (-0.1%), and DJIA (-0.2%) unable to notch the gains necessary to finish the week in positive territory. 

The broader market was mixed today, and without any outsized moves at the sector level. The real estate sector (+1.2%), which captured the widest gain this week (+4.1%) was the only sector to close with a gain or loss of 1.0% or wider. 

Early in the session the top-weighted information technology sector (+0.1%) held a similar gain, though similar to yesterday's action it was unable to sustain the early growth. Chipmaker names had another strong session, sending the PHLX Semiconductor Index 1.3% higher, with Micron (MU 362.75, +26.12, +7.76%) among the outperformers after a company director purchased more than $7.8 billion in stock. The company also broke ground on a new production facility today. 

However, strength in chipmakers was largely offset by weakness in software names, with losses across the iShares GS Software ETF (-1.5%) sending it to its lowest levels since early May.

The industrials sector (+0.7%) was able to maintain the bulk of its earlier gain, with particular strength in power names such as GE Vernova (GEV 681.55, +39.32, +6.12%) following President Trump's call for the development of more power plants. 

The financials sector (+0.1%) finished just modestly higher despite a solid earnings report from PNC (PNC 223.18, +8.14, +3.79%) and a rebound in credit card names such as Synchrony Financial (SYF 80.19, +2.49, +3.20%) and American Express (AXP 364.79, +7.42, +2.08%).

Meanwhile, the health care sector (-0.8%) was the biggest laggard amid a relatively slow session for defensive sectors. Though not a component of the sector, Novo Nordisk A/S (NVO 62.34, +5.22, +9.14%) finished sharply higher amid solid demand for its recently launched weight loss pill. 

The communication services sector (-0.7%) was also near the bottom of the leaderboard, as Alphabet (GOOG 330.34, -2.82, -0.85%) was a mega-cap laggard for the second consecutive session. The Vanguard Mega Cap Growth ETF (-0.2%) finished modestly lower to end a tough week for the market's largest names that saw the ETF shed 1.5%. 

Outside of the S&P 500, the Russell 2000 (+0.1%) managed to scratch out a gain, while the S&P Mid Cap 400 (-0.3%) moved lower. 

Ultimately, a lack of fresh catalysts and mixed sector performance kept trading subdued, setting the stage for next week's data and earnings flow to determine whether momentum can reaccelerate.

On the policy front, Fed Vice Chair for Supervision Bowman (FOMC voter) pushed back against recent pause-friendly rhetoric, saying the Fed should remain ready to adjust policy toward neutral and avoid signaling a pause absent changing conditions. Despite the contrast with other FOMC members, markets made no change to their expected easing timeline.

What has shifted is the outlook for Fed leadership. CNBC reported that President Trump signaled he wants National Economic Council Director Mr. Hassett to remain in his current role, boosting prediction-market odds that former Fed Governor Mr. Warsh is now the leading contender to be the next Fed Chair.

U.S. Treasuries finished the week on a lower note, sending yields on 5s and 10s to their highest levels since late August/early September. The 2-year note yield settled up four basis points to 3.60% (+6 basis points this week), and the 10-year note yield settled up seven basis points to 4.23% (+6 basis points this week). Bond and equity markets will be closed on Monday for Martin Luther King Jr. Day.

• Russell 2000: +8.0% YTD
• S&P Mid Cap 400: +6.1% YTD
• DJIA: +2.7% YTD
• S&P 500: +1.4% YTD
• Nasdaq Composite: +1.2% YTD

Reviewing today's data:

• December Industrial Production 0.4% (Briefing.com consensus 0.2%); Prior was revised to 0.4% from 0.2%, December Capacity Utilization 76.3% (Briefing.com consensus 76.0%); Prior was revised to 76.1% from 76.0%
  • The key takeaway from the report is that manufacturing output was even better than the headline suggests given the nice upward revision for November. This is consistent with an economy that closed 2025 on a good note, notwithstanding the government shutdown in October.
• January NAHB Housing Market Index 37 vs (Briefing.com consensus 40); Prior 39

[BRIEFING.COM] The S&P 500 (flat), Nasdaq Composite (flat), and DJIA (-0.1%) are on track for a subdued close to the week that would see the major averages finish modestly lower across the board this week. 

Meanwhile, the Russell 2000 (+0.3%) maintains its modest gain today that seats it with a 2.2% week-to-date gain. The S&P Mid Cap 400 (-0.3%) also holds a solid weekly gain but moves slightly lower today with the broader market. 

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (+0.1%), and DJIA (-0.1%) remain little changed from previous levels amid a sleepy session for the market.

Though not a component of the S&P 500, Novo Nordisk A/S (NVO 62.13, +5.01, +8.77%) trades sharply higher today.  CNBC attributes the gains to a "solid start" for the company's launch of its GLP-1 weight loss pill in the U.S., which officially launched on January 5. 

Eli Lilly (LLY 1043.50, +10.53, +1.02%), which is seen as a direct competitor, also trades higher today, though the stock fell sharply yesterday after the FDA postponed an approval decision of the company's own weight loss drug to April 10. 

[BRIEFING.COM] The S&P 500 (+0.01%) is narrowly higher on Friday afternoon, giving up afternoon highs over the prior half hour.

Briefly, S&P 500 constituents GE Vernova (GEV 678.36, +36.13, +5.63%), Qnity Electronics (Q 97.76, +4.64, +4.98%), and Moderna (MRNA 41.22, +1.86, +4.73%) pepper the top of the standings. GEV is higher as investors favor equipment makers poised to benefit from the new construction mandate, while Q rallies as management reaffirmed FY25 guidance, easing uncertainty, while the internally managed CFO transition is being viewed as low risk.

Meanwhile, Constellation Energy (CEG 301.92, -39.28, -11.51%) slides hard after President Trump's proposed emergency power auction threatens its high-margin co-location model by forcing tech firms to fund massive new generation capacity, likely depressing power prices and eroding scarcity-driven profits across independent power producers.

[BRIEFING.COM] The tech-heavy Nasdaq Composite (+0.11%) is in first place on Friday afternoon, up 27 points.

Gold futures settled $28.30 lower (-0.6%) at $4,595.40/oz, as firmer U.S. economic data boosted the dollar and tempered expectations for near-term Fed rate cuts, reducing the appeal of non-yielding assets. The pullback was also aided by easing geopolitical tensions, though prices remain elevated after recently hitting record highs.

Meanwhile, the U.S. Dollar Index is less than +0.1% higher to $99.40.

[BRIEFING.COM] The Dow Jones Industrial Average (+0.09%) is in last place on Friday afternoon, up about 43 points.

A look inside the DJIA shows that UnitedHealth (UNH 333.50, -5.46, -1.61%), Salesforce (CRM 230.16, -3.37, -1.44%), and Walt Disney (DIS 111.89, -1.52, -1.34%) are underperforming.

Meanwhile, American Express (AXP 369.01, +11.64, +3.26%) shows solid gains.

The DJIA is poised to end the week -0.04% lower.

Also, at the top of the hour, Baker Hughes (BKR 51.98, -0.02, -0.04%) announced a weekly U.S. rotary rig count of 543, -1 w/w and -37 yr/yr.

[BRIEFING.COM] The S&P 500 (flat), Nasdaq Composite (-0.1%), and DJIA (-0.1%) have spent the morning oscillating around their flatlines as the market is on track to close the week on a subdued note. 

Sector strength is a nearly even split, with five S&P 500 sectors trading higher, and gains and losses are confined to within 0.9%. 

The top-weighted information technology sector (+0.2%) was an early standout but has since given up the bulk of its opening gains. Semiconductor stocks, however, are continuing their hot streak, pushing the PHLX Semiconductor Index 1.4% higher. Micron (MU 354.00, +17.37, +5.16%) holds a solid gain after breaking ground on a new facility and a considerable insider purchase by its director, while Super Micro Computer (SMCI 32.20, +2.78, +9.45%) is the best-performing S&P 500 name today. 

The real estate sector (+0.9%) holds the widest gain, which keeps it atop the weekly leaderboard with a 3.8% week-to-date gain. 

The industrials sector (+0.7%) holds a similar gain, with power companies such as GE Vernova (GEV 681.89, +39.66, +6.18%) trading higher after the Trump administration's call for big tech companies to fund the development of new plants. 

Elsewhere, the financials sector (+0.6%) continues its late-week rebound effort following more bank earnings, while the energy sector (+0.2%) tracks a rebound in the price of oil. 

As for today's laggards, the materials sector (-0.7%) faces the widest loss. Mosaic (MOS 26.34, -1.24, -4.50%) lags after reporting North American fertilizer demand well below sesonal norms, while the secotr also faces pressure from a slide in precious metals prices today. 

Meanwhile, the communication services (-0.6%) and consumer discretionary services (-0.3%) face losses in the majority of their components, with a sluggish showing from mega-cap stocks unable to mask the weakness. 

Additionally, the defensive consumer staples, health care, and utilities sectors are all down 0.4%. 

In Fed-related developments, Fed Vice Chair for Supervision Bowman (FOMC voter) pushed back against recent pause-friendly rhetoric, saying the Fed should remain ready to adjust policy toward neutral and avoid signaling a pause absent changing conditions. Despite the contrast with other FOMC members, markets made no change to their expected easing timeline. What has shifted is the outlook for Fed leadership. CNBC reported that President Trump signaled he wants National Economic Council Director Mr. Hassett to remain in his current role, boosting prediction-market odds that former Fed Governor Mr. Warsh is now the leading contender to be the next Fed Chair.

Overall, today's trade has been a sideways drift, lacking a catalyst to push the major averages into positive week-to-date territory.

Reviewing today's data:

• December Industrial Production 0.4% (Briefing.com consensus 0.2%); Prior was revised to 0.4% from 0.2%, December Capacity Utilization 76.3% (Briefing.com consensus 76.0%); Prior was revised to 76.1% from 76.0%
  • The key takeaway from the report is that manufacturing output was even better than the headline suggests given the nice upward revision for November. This is consistent with an economy that closed 2025 on a good note, notwithstanding the government shutdown in October.
• January NAHB Housing Market Index 37 vs (Briefing.com consensus 40); Prior 39

[BRIEFING.COM] The major averages are little changed shortly after midday. 

PNC (PNC 222.79, +7.75, +3.60%) reported record Q4 results and issued upbeat 2026 guidance that surpassed market expectations, driving shares sharply higher. The bank enters 2026 with significant momentum following the completion of its FirstBank acquisition, forecasting robust revenue and loan growth while planning to increase its quarterly share repurchase activity to as much as $700 million in 1Q26.

Investors are applauding PNC's record performance and bullish 2026 outlook. The acquisition of FirstBank is a major catalyst, expanding PNC's footprint into high-growth Colorado and Arizona markets and adding about $1 per share to 2027 earnings. CEO Bill Demchak highlighted "substantial momentum" fueled by record technology and AI investments aimed at optimizing existing business lines. Key tailwinds include a resilient economy with 2% real GDP growth and stable unemployment. Management's decision to hike share repurchases to a $700 million quarterly pace signals strong capital flexibility.

[BRIEFING.COM] The S&P 500 (+0.2%), Nasdaq Composite (+0.2%), and DJIA (flat) have steadily improved from a morning slump, now sitting at their best levels of the session since shortly after the open. 

Fed Vice Chair for Supervision Michelle Bowman (FOMC voting member) gave a speech that offered some rebuttal to recent Fed commentary. Ms. Bowman said, "We should remain ready to adjust policy to bring it closer to neutral. We should also avoid signaling that we will pause without identifying that conditions have changed." While Ms. Bowman's commentary offers a contrast to other FOMC members who have called for keeping rates unchanged, the market's expected timeline of easing from the Fed has not changed any today. 

What has changed, however, is the market's expectations of who will be the next person at the helm of the Fed.  CNBC reported that President Trump said of National Economic Council Director Kevin Hassett, "I actually want to keep you where you are, if you want to know the truth," while praising the job Mr. Hassett has done. In response, prediction markets now mark former Fed Governor Kevin Warsh as the clear frontrunner for the next Fed Chair nomination. 

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (+0.1%), and DJIA (flat) sit within close proximity to their baselines amid a relatively uneventful morning for the stock market. Notably, the sluggishness keeps the major averages in modestly negative week-to-date territory

The top-weighted information technology sector (+0.3%) traded up as much as 0.8% this morning before pulling back. Semiconductor stocks remain a strong point, with the PHLX Semiconductor Index up 1.3%, widening its year-to-date gain to 12.0%. Micron (MU 353.89, +17.26, +5.13%) is among the outperformers after breaking ground on a new facility today and the company director disclosing the purchase of more than $7.8 mln worth of stock.

Elsewhere, cyclical sectors are mixed, with the industrials (+0.8%) and materials (-0.8%) sectors the best and worst performing S&P 500 sectors today. 

Mixed performances across the mega-caps see the communication services (-0.6%) and consumer discretionary (-0.3%) sectors trade lower, while defensive sectors are also under pressure. 

Outside of the S&P 500, the Russell 2000 (+0.2%) and S&P Mid Cap 400 (-0.2%) are mixed, also trading near their baselines. 

[BRIEFING.COM] The S&P 500 (-0.1%), Nasdaq Composite (-0.1%), and DJIA (-0.2%) now sit lower across the board. 

The financials sector (+0.1%) is one of just a handful of sectors that remains above its baseline this morning. 

Credit card names such as Synchrony Financial (SYF 81.06, +3.36, +4.32%), Capital One (COF 241.29, +4.32, +1.82%), and American Express (AXP 363.30, +5.92, +1.66%) are among the best-performing names today after sliding earlier this week following President Trump's call for a one-year 10% interest rate cap on credit cards. 

Earlier this morning, National Economic Council Director Kevin Hassett told Fox Business that he doesn't think a credit card cap will require legislation, as he hopes that the banks will voluntarily lower credit card interest rates. 

[BRIEFING.COM] The S&P 500 (flat) and Nasdaq Composite (flat) have retreated from their modest opening gains, while the DJIA (-0.2%) remains slightly lower. 

The materials sector (-0.9%) continues to be the worst-performing S&P 500 sector this morning. 

Mosaic (MOS 26.63, -0.95, -3.44%) is a laggard after providing a cautious update for 4Q25, warning that North American fertilizer demand fell significantly below seasonal norms. While the company faced a challenging environment late in the year due to economic and weather-related headwinds, it maintains a constructive outlook for 2026, driven by an expected recovery in nutrient replenishment and global supply constraints.

Elsewhere in the sector, Albemarle (ALB 163.13, -10.65, -6.13%) and Amcor (AMCR 42.06, -2.10, -4.77%) move lower despite Robert W. Baird upgrading both stocks to Outperform from Neutral, while Nucor (NUE 171.33, -3.46, -1.98%) and Freeport-McMoRan (FCX 58.06, -1.90, -3.16%) face pressure amid a slide in precious metals prices. 

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (+0.2%), and DJIA (-0.2%) sit mixed shortly after the open as semiconductor names once again do the heavy lifting while the broader market trades mostly lower. 

The top-weighted information technology sector (+0.6%) is one of just two sectors that trade firmly higher, though the gain is wide enough to prompt some growth at the index level. 

Micron (MU 363.05, +26.42, +7.85%) is sharply higher this morning after announcing the company will officially break ground today on a $100 billion memory manufacturing complex in Onondaga County, New York.

The PHLX Semiconductor Index is up 1.8%, and NVIDIA (NVDA 190.04, +2.99, +1.60%) is once again one of the best-performing mega-cap names. 

Elsewhere, the industrials sector (+0.3%) holds a decent gain as its engineering and construction names trend higher. 

The materials sector (-0.9%) is an early laggard, while the defensive utilities (-0.8%), consumer staples (-0.6%), and health care (-0.5%) sectors also trade lower. The other five S&P 500 sectors trade within 0.2% of their unchanged levels. 

Just released, the January NAHB Housing Market Index registered at 37 (Briefing.com consensus 40) from a prior level of 39.

The S&P 500 futures currently trade 15 points above fair value. 

Just released, industrial production increased 0.4% month-over-month in December (Briefing.com consensus 0.2%) following an upwardly revised 0.4% increase in December (from 0.2%).

The capacity utilization rate was 76.3% (Briefing.com consensus 76.0%) versus an upwardly revised 76.1% (from 76.0%) in November.

The S&P 500 futures currently trade 13 points above fair value. 

Equity indices in the Asia-Pacific region had a mixed finish to the week with Japan's Nikkei (-0.3%) inching down from record territory while South Korea's Kospi (+0.9%) cruised to another record high, extending its January gain to 14.9%. The Japanese yen extended this week's rise off an 18-month low against the dollar after Japan's Finance Minister Katayama hinted at a potential joint intervention with the U.S. Treasury. The Bank of Japan is not expected to announce a rate hike next week, but expectations for a rate increase in April are on the rise. NTT and Honda priced upcoming bonds while Credit Agricole priced its Samurai bonds. Japan's CDP and Komeito parties have established an alliance aimed at blocking Prime Minister Takaichi's LDP from gaining outright majority in the Lower House. The U.S. reached an agreement with Taiwan on a quota system for chip tariffs.

• In economic data:
  • Singapore's December trade surplus SGD2.205 bln (last surplus of SGD6.777 bln). December non-oil exports -9.4% m/m (expected -4.5%; last 7.1%); 6.1% yr/yr (expected 10.0%; last 11.5%)
  • New Zealand's December Business PMI 56.1 (last 51.4). December FPI -0.3% m/m (last -0.4%)

---Equity Markets---

• Japan's Nikkei: -0.3% 
• Hong Kong's Hang Seng: -0.3% 
• China's Shanghai Composite: -0.3% 
• India's Sensex: +0.2% 
• South Korea's Kospi: +0.9% 
• Australia's ASX All Ordinaries: +0.5%

Major European indices are on track for a lower finish to the week. Germany's final CPI report for December showed a dip below the 2.0% target. Spreads between yields on Germany's 10-yr bund and corresponding instruments from Spain and Italy have hit their tightest levels since 2008 thanks to improving fiscal situations in Spain and Italy combined with prolonged weakness in the German economy.

• In economic data:
  • Germany's final December CPI 0.0% m/m, as expected (last -0.2%); 1.8% yr/yr, as expected (last 2.3%)
  • Italy's December CPI 0.2% m/m, as expected (last -0.2%); 1.2% yr/yr, as expected (last 1.1%)

---Equity Markets---

• STOXX Europe 600: -0.2% 
• Germany's DAX: -0.3% 
• U.K.'s FTSE 100: -0.2%
• France's CAC 40: -0.7% 
• Italy's FTSE MIB: -0.3%
• Spain's IBEX 35: UNCH

The S&P 500 futures currently trade 14 points above fair value. 

Futures are receiving a boost from the mega-cap cohort, with all of the "magnificent seven" names currently trading higher in the premarket. Mega-caps have had a notoriously hard time maintaining gains this week, with the Vanguard Mega Cap Growth ETF down 1.4% for the week.

Equity futures point to a modestly higher open this morning after the major averages finished higher across the board but well off of session highs in yesterday's action. An upbeat earnings report from Taiwan Semiconductor Manufacturing (TSM) provided the spark for a rally in chipmakers and other AI-related names, though the afternoon saw mega-caps face significant selling pressure. 

A slate of banking names also posted solid earnings reports, which boosted the financial sector (a laggard this week). The market is currently receiving another batch of earnings from regional banking names this morning. 

The market will also hear from Fed Governor Michelle Bowman (voting FOMC member) and Fed Vice Chair Phillip Jefferson (voting FOMC member) today. Recent Fed commentary has been largely unsurprising, with most officials calling for the Fed to hold rates steady for the time being.

The major averages come into today's session with modest week-to-date losses, while the smaller cap Russell 2000 (+1.9% week-to-date) and S&P Mid Cap 400 (+1.7% week-to-date) have outperformed. 

In corporate news:

• Oil field services companies are eager to get back into Venezuela, according to The Wall Street Journal. 
• PNC Financial Services Group (PNC 222.00, +6.96, +3.2%) beat EPS expectations by $0.68, beat on revs, guided Q1 revs above consensus, and guided FY26 revs above consensus.
• Regions Financial (RF 27.22, -1.30, +4.6%) missed EPS expectations by $0.04 and reported revenues in-line. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region had a mixed finish to the week with Japan's Nikkei (-0.3%) inching down from record territory while South Korea's Kospi (+0.9%) cruised to another record high, extending its January gain to 14.9%. Japan's Nikkei: -0.3%, Hong Kong's Hang Seng: -0.3%, China's Shanghai Composite: -0.3%, India's Sensex: +0.2%, South Korea's Kospi: +0.9%, Australia's ASX All Ordinaries: +0.5%.

In news:

• The Japanese yen extended this week's rise off an 18-month low against the dollar after Japan's Finance Minister Katayama hinted at a potential joint intervention with the U.S. Treasury.
• The Bank of Japan is not expected to announce a rate hike next week, but expectations for a rate increase in April are on the rise.
• NTT and Honda priced upcoming bonds while Credit Agricole priced its Samurai bonds.
• Japan's CDP and Komeito parties have established an alliance aimed at blocking Prime Minister Takaichi's LDP from gaining outright majority in the Lower House.
• The U.S. reached an agreement with Taiwan on a quota system for chip tariffs.

In economic data:

• Singapore's December trade surplus SGD2.205 bln (last surplus of SGD6.777 bln). December non-oil exports -9.4% m/m (expected -4.5%; last 7.1%); 6.1% yr/yr (expected 10.0%; last 11.5%)
• New Zealand's December Business PMI 56.1 (last 51.4). December FPI -0.3% m/m (last -0.4%)

Major European indices are on track for a lower finish to the week. STOXX Europe 600: -0.1%, Germany's DAX: -0.4%, U.K.'s FTSE 100: UNCH, France's CAC 40: -0.7%, Italy's FTSE MIB: -0.2%, Spain's IBEX 35: -0.1%.

In news:

• Germany's final CPI report for December showed a dip below the 2.0% target.
• Spreads between yields on Germany's 10-year bund and corresponding instruments from Spain and Italy have hit their tightest levels since 2008 thanks to improving fiscal situations in Spain and Italy combined with prolonged weakness in the German economy.

In economic data:

• Germany's final December CPI 0.0% m/m, as expected (last -0.2%); 1.8% yr/yr, as expected (last 2.3%)
• Italy's December CPI 0.2% m/m, as expected (last -0.2%); 1.2% yr/yr, as expected (last 1.1%)

[BRIEFING.COM] The stock market had an eventful session today that saw the S&P 500 (+0.3%) and Nasdaq Composite (+0.3%) finish significantly below their session highs as mega-cap tech faced considerable afternoon profit taking. Broad strength helped the DJIA (+0.6%) finish closer to its own session high, though most pockets of the market closed off of their best levels. 

Despite facing a considerable pullback of their own, semiconductor names were still one of the day's biggest winners. An impressive earnings report from Taiwan Semiconductor Manufacturing (TSM 341.64, +14.53, +4.44%) precipitated the sharp early gains across chipmakers and other AI plays. Notably, the company expects between $52 billion and $56 billion in capital spending in 2026, which provided a boost to the AI trade today. 

The PHLX Semiconductor Index (+1.8%) traded as much as 3.9% higher, though it found itself in the crosshairs of some selling activity this afternoon. The broader information technology sector (+0.5%) shed the bulk of its early gain after trading over 1.5% higher today. 

The pullback did somewhat coincide with comments from Commerce Secretary Howard Lutnick, who said in a CNBC interview that semiconductor companies without production in the U.S. will likely face a 100% tariff rate. However, the space was likely due for some profit-taking after a hot start to 2026 that had the PHLX Semiconductor Index up over 12% for the year. 

KLA Corporation (KLAC 1544.96, +110.46, +7.70%) still managed to capture the widest gain across S&P 500 names today, supported by Wells Fargo upgrading the stock to Overweight from Equal Weight with a $1600 target, while Morgan Stanley upgraded shares to Overweight from Equal Weight with a $1697 target.

Additionally, NVIDIA (NVDA 186.99, +3.85, +2.10%) remained a mega-cap standout despite a tough afternoon for the market's largest names. The Vanguard Mega Cap Growth ETF (+0.1%) finished flattish after moving as much as 0.7% higher. 

Mega-cap weakness saw the consumer discretionary sector (+0.4%) finish with about half of its previous gain, while a retreat in Alphabet (GOOG 333.16, -3.15, -0.94%) sent the communication services sector (-0.4%) lower. 

Seven total S&P 500 sectors closed with gains, with the defensive utilities sector (+1.0%) capturing the widest gain as it was largely resilient to the afternoon sell-off. 

Cyclical sectors finished mostly higher, with the industrials sector (+0.9%) finishing near the top of the leaderboard. Airline names such as Delta Air Lines (DAL 71.34, +2.85, +4.16%) and United Airlines (UAL 116.02, +5.27, +4.76%) outperformed today as they rebounded from previous losses this week that followed Delta's earnings release on Monday. 

The financials sector (+0.4%) also closed with a gain, though it was one of many sectors to finish well off of its best levels.  Morgan Stanley (MS 191.29, +10.51, +5.81%), Goldman Sachs (GS 975.88, +43.21, +4.63%), and BlackRock (BLK 1156.90, +65.05, +5.96%) all finished sharply higher after topping earnings estimates this morning, providing the financials sector with some reprieve after what has been a tough week. 

Meanwhile, the energy sector (-0.9%) closed with the widest loss as oil prices continued to fall sharply in response to a de-escalation of tensions between the U.S. and Iran that makes a U.S. strike seem unlikely for the time being.  Crude oil futures settled today's session $2.79 lower (-4.5%) at $59.09 per barrel. 

The health care sector (-0.6%) was another laggard, though its weakness was exacerbated by a few stock-specific developments. Eli Lilly (LLY 1032.72, -40.58, -3.78%) provided weak leadership after Reuters reported the FDA has delayed its approval decision of the company's weight loss pill to April 10. Boston Scientific (BSX 90.00, -3.74, -3.99%) was another laggard following the announcement of its agreement to acquire Penumbra (PEN 350.42, +37.00, +11.80%) in a deal valued at approximately $14.5 billion.

Outside of the S&P 500, the Russell 2000 (+0.9%) and S&P Mid Cap 400 (+1.2%) also ceded some of their early strength, though they were much more resilient to the pullback and once again decidedly outperformed the larger-cap major averages. 

The trend of broadening leadership continues to pervade the market as mega-cap stocks struggle in 2026. The Vanguard Mega Cap Growth ETF is down 0.9% year-to-date, while the Russell 2000 (+7.8% year-to-date) and S&P Mid Cap 400 (+6.4% year-to-date) have surged. This dynamic is also evident in the widening performance gap between the market-cap-weighted S&P 500 (+1.5% year-to-date) and the S&P 500 Equal Weight Index (+4.2% year-to-date), as cyclical sectors continue to post solid gains on expectations for a strong economy in 2026, even with recent Fed commentary pointing to several months before the next potential rate cut. 

U.S. Treasuries had a mixed showing on Thursday, with relative weakness in the front end lifting the 2-year yield to its highest settlement since early December while the long bond outperformed, recording its third consecutive gain. The 2-year note yield settled up five basis points to 3.56%, the 10-year note yield settled up two basis points to 4.16%, and the 30-year note yield settled down one basis point to 4.79%. 

• Russell 2000: +7.8% YTD
• S&P Mid Cap 400: +6.4% YTD
• DJIA: +2.9% YTD
• S&P 500: +1.5% YTD
• Nasdaq Composite: +1.2% YTD

Reviewing today's data:

• Weekly Initial Claims 198K (Briefing.com consensus 210K); Prior was revised to 207K from 208K, Weekly Continuing Claims 1.884 mln; Prior was revised to 1.903 mln from 1.914 mln
  • The key takeaway from the report is that it corroborates a low firing-low hiring environment that will keep the Fed on watch but also on hold in terms of a rate cut this month and possibly until June, which is when the fed funds futures market is projecting the first cut in 2026.
• January Philadelphia Fed Index 12.6 (Briefing.com consensus -5.0); Prior was revised to -8.8 from -10.2
• November Import Prices 0.4%; Prior 0.1%
• November Import Prices ex-oil 0.6%; Prior 0.1%
• November Export Priices 0.5%; Prior 0.0%
• November Export Prices ex-ag. 0.4%; Prior 0.0%
• January Empire State Manufacturing 7.7 (Briefing.com consensus 1.0); Prior was revised to -3.7 from -3.9