[BRIEFING.COM] The stock market ended the last full trading week of the year on a positive note as tech names extended their late-week rally against a backdrop of solid participation in the broader market. 

The S&P 500 (+0.9%) and Nasdaq Composite (+1.3%) both closed above their 50-day moving averages and finished with modest week-to-date gains. The DJIA (+0.4%) missed out on a gain for the week but still captured a gain today. The small-cap Russell 2000 (+0.9%) and S&P Mid Cap 400 (+0.9%) also notched solid gains. 

There was some doubt entering today's session about the major averages' ability to build on their tech-driven gains following yesterday's late-session weakness, but the top-weighted information technology sector (+2.0%) provided exceptional leadership. 

Micron (MU 265.92, +17.37, +6.99%) extended its post-earnings strength, while memory and storage peers like Sandisk (SNDK 237.61, +18.15, +8.27%) and Western Digital (WDC 181.08, +6.07, +3.47%) also advanced, building on their own rallies after Micron's earnings report featured a rosy industry outlook.

Oracle (ORCL 192.40, +12.37, +6.87%) was another top performer, rallying after headlines that TikTok signed a deal to sell its U.S. unit to a group of investors, including Oracle. Additionally, Michigan regulators approved a request from DTE Energy (DTE 127.64, -2.26, -1.74%) to power an Oracle and OpenAI data center, according to Bloomberg. 

NVIDIA (NVDA 180.99, +6.85, +3.93%) was a standout across mega-cap names, and the PHLX Semiconductor Index finished with a 3.0% gain, highlighting the improved sentiment across the AI trade today. 

Strength in the rest of the market was broad throughout most of the session but saw some late-session profit taking, similar to yesterday's action. 

Still, seven S&P 500 sectors finished higher, with several noteworthy performances in the mix. 

The industrials sector (+0.9%) had a solid day. Defense stocks rallied after President Trump told NBC News that he is not ruling out a war with Venezuela, sending the iShares U.S. Aerospace and Defense ETF 2.7% higher.

The health care sector (+0.7%) was another point of strength, supported by its pharmaceutical and biotechnology names. The White House confirmed nine new agreements with major pharmaceutical companies to lower prescription drug prices for Americans in line with the lowest prices paid by other developed nations. Gilead Sciences (GILD 124.29, +2.82, +2.32%), Amgen (AMGN 327.38, +2.96, +0.91%), and Merck (MRK 101.09, +0.40, +0.40%) were among the names that struck agreements. 

Meanwhile, the defensive utilities (-1.3%) and consumer staples (-0.5%) sectors lagged amid the rally in tech. Lamb Weston (LW 44.01, -15.32, -25.82%) was the worst-performing S&P 500 stock despite beating earnings expectations, increasing its quarterly dividend, and reaffirming its FY26 guidance. 

The consumer discretionary sector (-0.3%) also finished lower amid some notable earnings moves. Carnival (CCL 31.11, +2.77, +9.77%) outperformed after an EPS beat and upbeat FY26 guidance, sending other cruise line names such as Norwegian Cruise Line (NCLH 23.04, +1.41, +6.52%) sharply higher as well. 

NIKE (NKE 58.70, -6.92, -10.55%), however, lagged after disappointing guidance and soft sales in China.

Though not a member of the sector itself, KB Home (KBH 57.37, -5.38, -8.57%) also fell after its earnings report, which pressured other homebuilders such as D.R. Horton (DHI 147.17, -4.23, -2.79%) and home improvement names such as Lowe's (LOW 240.46, -7.25, -2.93%). 

While several sectors saw some modest selling pressure late in the afternoon, the information technology sector charted session highs through the close, underscoring a strong end to the week for the AI trade. The late-week advance also left the major averages technically better positioned after reclaiming key moving-average levels, which could factor into near-term positioning as the calendar turns.

U.S. Treasuries ended Friday with a small dip from their best levels of the week. The 2-year note yield settled up three basis points to 3.49%, and the 10-year note yield settled up four basis points to 4.15%. 

• Nasdaq Composite: +20.7% YTD
• S&P 500: +16.2% YTD
• Russell 2000: +13.4% YTD
• DJIA: +13.1% YTD
• S&p Mid Cap 400: +7.4% YTD

Reviewing today's data:

• November Existing Home Sales 4.13 mln (Briefing.com consensus 4.10 mln); Prior was revised to 4.11 mln from 4.10 mln
  • The key takeaway from the report is that home sales in November were aided by lower mortgage rates, yet limited inventory, combined with high prices, got in the way of stronger selling activity.
• December Univ. of Michigan Consumer Sentiment - Final 52.9 (Briefing.com consensus 53.3); Prior 53.3
  • The key takeaway from the report is that consumer sentiment has fallen sharply versus the year-ago period, with "pocketbook issues," affordability concerns, and labor market worries weighing on consumers' psyche.

[BRIEFING.COM] The major averages are well positioned to end the week on a strong note, with today's gains lifting the S&P 500 (+0.9%) and Nasdaq Composite (+0.4%) into positive territory for the week. 

Yesterday's boost in sentiment around the AI trade only accelerated today, with many of the weighty names in the information technology sector (+1.7%) trading sharply higher. 

NVIDIA (NVDA 180.42, +6.28, +3.60%) is a standout across the "magnificent seven" names, and the PHLX Semiconductor Index (+3.3%) and Vanguard Mega Cap Growth ETF (+1.2%) both outperform, moving into positive territory for the week as well. 

[BRIEFING.COM] The S&P 500 (+0.9%), Nasdaq Composite (+1.2%), and DJIA (+0.6%) maintain their solid gains as the market enters the final hour of the session. 

The health care sector (+1.1%) has widened its gain past 1.0% for the day as a wide slate of names, including Gilead Sciences (GILD 125.68, +4.20, +3.46%) and Merck (MRK 102.00, +1.31, +1.30%), confirmed agreements to lower drug prices for American consumers. 

The sector holds a quarter-to-date gain of 11.3%, the best by nearly 6%, after an impressive run in November as the AI trade faced weakness. The S&P 500 holds just a 2.2% quarter-to-date gain. 

[BRIEFING.COM] The S&P 500 (+0.88%) is in second place on Friday afternoon, up about 60 points.

Briefly, S&P 500 constituents Moderna (MRNA 33.36, +2.41, +7.79%), SanDisk (SNDK 236.33, +16.87, +7.69%), and Incyte (INCY 101.95, +4.64, +4.76%) dot the top of the standings. For its part, MRNA jumps to four-month highs on continued strength in healthcare stocks, while SNDK and INCY follow the market higher despite a dearth of corporate news.

Meanwhile, Lamb Weston (LW 45.11, -14.22, -23.97%) sits at the bottom of the average following earnings.

[BRIEFING.COM] The tech-heavy Nasdaq Composite (+1.12%) is in first place on Friday afternoon, up about 257 points.

Gold futures settled $22.80 higher (+0.5%) at $4,387.30/oz, up about +1.4% on the week, as softer U.S. inflation data and cooling labor conditions reinforced expectations for Fed rate cuts in early 2026, weighing on real yields and the dollar. Safe-haven demand, ongoing central bank buying, and steady ETF inflows have further supported bullion prices despite occasional bouts of dollar strength.

Meanwhile, the U.S. Dollar Index at is up about +0.2% to $98.60.

[BRIEFING.COM] The Dow Jones Industrial Average (+0.66%) is in last place on Friday afternoon, up about 315 points.

A look inside the DJIA shows that Boeing (BA 215.62, +7.35, +3.53%), NVIDIA (NVDA 179.82, +5.68, +3.26%), and Goldman Sachs (GS 398.55, +22.25, +2.54%) are outperforming.

Meanwhile, Nike (NKE 58.96, -6.69, -10.16%) is getting crushed.

The DJIA is poised to end the week -0.39% lower.

[BRIEFING.COM] The S&P 500 (+1.0%), Nasdaq Composite (+1.2%), and DJIA (+0.7%) continue to chart session highs amid a second consecutive day of strong tech leadership and a broader market that trades mostly higher. 

Yesterday's action saw the S&P 500 close above its 50-day moving average, a key technical level that the Nasdaq Composite has moved above this morning (23,124.63). 

Micron (MU 264.82, +16.27, +6.55%) extends its post-earnings strength, with memory and storage stocks such as Sandisk (SNDK 241.00, +21.54, +9.82%) and Western Digital (WDC 183.14, +8.13, +4.64%) furthering their own rallies following a rosy outlook for the industry. 

Elsewhere in the top-performing information technology sector (+1.7%), Oracle (ORCL 193.87, +13.84, +7.69%) is a standout after headlines that TikTok signed a deal to sell its U.S. unit to a group of investors, including Oracle. The upward move marks a boost in sentiment both for the AI trade and the stock, which faced a double-digit retreat last week following its earnings report. 

The broader market has trended higher throughout the session, with eight S&P 500 sectors holding gains, most of which currently sit near session highs. 

The healthcare sector (+0.9%) is a standout, with biotech and pharmaceutical names boosting the sector as the market awaits an announcement from President Trump this afternoon regarding lowering the price of pharmaceuticals. 

Elsewhere, the industrials sector (+0.7%) is supported by strength in its aerospace and defense names as President Trump told CBS News that he is not ruling out a war with Venezuela.

Solid performances across major banking names push the financials sector (+0.7%) to a similar gain.

Meanwhile, the defensive consumer staples (-0.4%) and utilities (-0.3%) sectors lag amid the rally in tech. 

The consumer discretionary sector (-0.1%) also trades slightly lower, with several notable earnings-related moves. Carnival (CCL 30.77, +2.43, +8.57%) outperforms after an EPS beat and upbeat FY26 guidance, while NIKE (NKE 58.83, -6.80, -10.36%) lags after disappointing guidance and soft sales in China. 

Outside of the S&P 500, the Russell 2000 (+1.0%) and S&P Mid Cap 400 (+0.8%) also hold solid gains. 

There was some skepticism heading into today's session about whether the major averages could extend their tech-fueled gains after yesterday's late-session weakness, but so far the market has shown that the improved sentiment around the AI trade may not be limited to a modest one-day advance. With today's gains, the S&P 500 and Nasdaq Composite now sit in modestly positive terrtiory for the week. 

Reviewing today's data:

• November Existing Home Sales 4.13 mln (Briefing.com consensus 4.10 mln); Prior was revised to 4.11 mln from 4.10 mln
  • The key takeaway from the report is that home sales in November were aided by lower mortgage rates, yet limited inventory, combined with high prices, got in the way of stronger selling activity.
• December Univ. of Michigan Consumer Sentiment - Final 52.9 (Briefing.com consensus 53.3); Prior 53.3
  • The key takeaway from the report is that consumer sentiment has fallen sharply versus the year-ago period, with "pocketbook issues," affordability concerns, and labor market worries weighing on consumers' psyche.

[BRIEFING.COM] The S&P 500 (+0.9%), Nasdaq Composite (+1.2%), and DJIA (+0.6%) steadily tick higher as the session progresses. 

Homebuilder stocks are under pressure following KB Home's (KBH 56.90, -5.84, -9.31%) earnings report, which saw the company beat top-and-bottom line estimates but saw a 9% decrease in homes delivered. 

Lennar (LEN 106.32, -2.00, -1.85%) was a laggard earlier in the week after an earnings miss, while D.R. Horton (DHI 146.65, -4.75, -3.14%) and PulteGroup (PHM 118.62, -3.04, -2.50%) also trail today. The iShares U.S. Home Construction ETF is down 2.2% today and 4.1% for the week.

[BRIEFING.COM] The major averages trade in a tight range near session highs at midday. 

The industrials sector (+0.7%) has ticked steadily higher throughout the session in tandem with the broader market. Defense names, such as Boeing (BA 215.19, +6.92, +3.32%), Axon (AXON 581.00, +17.72, +3.15%), and Huntington Ingalls (HII 332.12, +9.49, +2.94%), dot the top of the sector's standings. President Trump told NBC News last night that he is not ruling out a war with Venezuela after ordering a blockade of sanctioned oil tankers entering and leaving the country earlier in the week. 

The iShares Aerospace and Defense ETF (+2.6%) holds a solid gain as a result. 

[BRIEFING.COM] The S&P 500 (+0.8%), Nasdaq Composite (+1.0%), and DJIA (+0.6%) trade near session highs, supported by strong leadership in the information technology sector (+1.5%) and a broader market that trades mostly higher. 

Micron (MU 264.56, +16.01, +6.44%) continues its post-earnings rally, contributing to a 2.7% gain in the PHLX Semiconductor Index. 

Oracle (ORCL 193.36, +13.33, +7.40%) is another standout, rebounding from recent weakness following headlines that TikTok signed a deal to sell its U.S. unit to a group of investors, including Oracle.

The health care sector (+0.9%) is another top mover, climbing steadily throughout the morning. Biotechnology and pharmaceutical names are outperforming after White House Press Secretary Karoline Leavitt posted on X "Today at 1 PM at the White House: President Trump will be announcing more incredible deals that will lower prices of drugs and pharmaceuticals. Tune in!"

The iShares Biotechnology ETF is up 2.2%. 

Meanwhile, the other defensive sectors, the utilities (-0.3%) and consumer staples (-0.2%) sectors, are laggards.

The consumer discretionary sector (-0.2%) also trades lower as Tesla (TSLA 479.00, -4.37, -0.90%) is a laggard among mega-cap names.  The sector is also home to some of the more notable earnings-related moves in NIKE (NKE 59.22, -6.42, -9.77%) and Carnival (CCL 30.77, +2.43, +8.57%). 

Outside of the S&P 500, the Russell 2000 (+0.7%) and S&P Mid Cap 400 (+0.5%) hold similar gains to that of their larger-cap counterparts. 

[BRIEFING.COM] The major averages trade in a steady range, maintaining the bulk of their opening gains. 

NIKE (NKE 59.92, -5.71, -8.70%) reported 2Q26 results that surpassed expectations on both the top and bottom lines, yet the company's cautious outlook for the crucial holiday quarter and continued struggles in Greater China have sent shares tumbling lower. While North American growth provided a bright spot, management's guidance reflects a steep climb ahead as the brand navigates structural transitions and macroeconomic headwinds. Furthermore, for Q3, NKE's revenue guidance of a low-single-digit decline fell short of the more optimistic forecast for growth of just of 1%, according to the FactSet Consensus.

Furthermore, the looming 315 bps tariff hit in Q3 serves as a stark reminder of the external volatility Nike faces. 

The stock is the worst performer in the consumer discretionary sector (-0.3%) and one of the worst-performing S&P 500 names today. 

Elsewhere in the sector, Carnival (CCL 31.02, +2.68, +9.44%) is the best-performing S&P 500 stock after its own earnings report this morning. The company beat EPS expectations by $0.09 and reported revenues in line. The company guided Q1 EPS below consensus but guided FY26 EPS above consensus. 

[BRIEFING.COM] The S&P 500 (+0.6%), Nasdaq Composite (+0.8%), and DJIA (+0.5%) are now a touch off of their opening highs, though they still remain seated with nice gains. 

Existing home sales increased 0.5% month-over-month in November to a seasonally adjusted annual rate of 4.13 million (Briefing.com consensus 4.10 million) from an upwardly revised 4.11 million (from 4.10 million) in October. Sales were down 1.0% on a year-over-year basis.

The key takeaway from the report is that home sales in November were aided by lower mortgage rates, yet limited inventory, combined with high prices, got in the way of stronger selling activity.

The final University of Michigan Consumer Sentiment reading for December decreased to 52.9 (Briefing.com consensus: 53.3) from the preliminary reading of 53.3. In the same period a year ago, the index stood at 74.0.

The key takeaway from the report is that consumer sentiment has fallen sharply versus the year-ago period, with "pocketbook issues," affordability concerns, and labor market worries weighing on consumers' psyche.

[BRIEFING.COM] The S&P 500 (+0.8%), Nasdaq Composite (+1.1%), and DJIA (+0.5%) hold solid gains shortly after the open as the top-weighted information technology sector (+1.7%) surges higher. 

The opening gains put the sector in modestly positive territory for the week as the sector expands on yesterday's strength. 

In particular, Micron (MU 267.02, +18.47, +7.43%) continues its post-earnings surge, while Oracle (ORCL 192.97, +12.94, +7.19%) holds a similar gain after reports that TikTok has finalized a binding agreement to transfer its U.S. operations to an American-led investor group.

Similar to yesterday's action, a strong majority of the sector's largest components trade higher. However, the mega-caps are relatively flat elsewhere. 

Eight S&P 500 sectors hold gains, though the technology sector is the only sector with a gain wider than 0.7%. Losses in the three sectors that trade lower are contained to 0.2% or narrower. 

Just released, existing home sales increased 0.5% month-over-month in November to a seasonally adjusted annual rate of 4.13 million (Briefing.com consensus 4.10 million) from an upwardly revised 4.11 million (from 4.10 million) in October.

The final University of Michigan Consumer Sentiment reading for December decreased to 52.9 (Briefing.com consensus: 53.3) from the preliminary reading of 53.3.

The stock market is on track for a mostly higher opening this morning as tech names look to expand on yesterday's momentum amid a record day of options expirations.

New York Fed President Williams (FOMC voting member) told CNBC the government shutdown may have introduced technical factors that biased inflation data lower, adding that while the Fed is encouraged by recent inflation readings, he does not feel an urgency to adjust the Fed funds rate despite expecting rates to move lower over time.

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

Equity indices in the Asia-Pacific region ended the week on a higher note. The Bank of Japan raised its policy rate by 25 basis points to a 30-year high of 0.75%, as expected. The rate hike vote was unanimous. New Zealand saw a big improvement in business confidence for December while its trade deficit shrunk significantly. Fitch affirmed New Zealand's AA+ rating, observing that gradual recovery has hampered fiscal consolidation. Chinese press speculated that the People's Bank of China is preparing to lower its reserve requirement ratio in January.

• In economic data:
  • China's November FDI -7.5% YTD (last -10.3%)
  • Japan's November National CPI 0.4% m/m (last 0.4%); 2.9% yr/yr (last 3.0%). National Core CPI 3.0% yr/yr, as expected (last 3.0%)
  • South Korea's November PPI 0.3% m/m (last 0.2%); 1.9% yr/yr (last 1.5%)
  • Australia's November Private Sector Credit 0.6% m/m, as expected (last 0.7%) and Housing Credit 0.6% m/m (last 0.6%). November Commodity Prices -3.8% yr/yr (last -1.7%)
  • New Zealand's November trade deficit NZD163 mln (expected deficit of NZD1.175 bln; last deficit of NZD1.598 bln). November Credit Card Spending 4.7% yr/yr (last 1.6%). December ANZ Business Confidence 73.6 (last 67.1)

---Equity Markets---

• Japan's Nikkei: +1.0%
• Hong Kong's Hang Seng: +0.8% 
• China's Shanghai Composite: +0.4%
• India's Sensex: +0.5%
• South Korea's Kospi: +0.7%
• Australia's ASX All Ordinaries: +0.5%

Major European indices trade near their flat lines, tracking a quiet finish to the week. Today's economic data batch included some soft spots like weak November Retail Sales in the U.K. (-0.1%; expected 0.3%) and weak January Consumer Climate in Germany (-26.9; expected -23.0). The EU agreed to provide an EUR90 bln loan to Ukraine but could not agree on spending frozen Russian assets. European Central Bank officials appear comfortable with the current level of rates while Goldman Sachs expects the Bank of England to cut its bank rate three times in 2026.

• In economic data:
  • Eurozone's October Current Account surplus EUR25.7 bln (expected surplus of EUR16.0 bln; last surplus of EUR23.1 bln)
  • Germany's November PPI 0.0% m/m (expected 0.1%; last 0.1%); -2.3% yr/yr (expected -2.2%; last -1.8%). January GfK Consumer Climate -26.9 (expected -23.0; last -23.4)
  • U.K.'s November Retail Sales -0.1% m/m (expected 0.3%; last -0.9%); 0.6% yr/yr (expected 1.6%; last 0.6%). November Core Retail Sales -0.2% m/m (expected 0.2%; last -0.8%); 1.2% yr/yr (expected 1.6%; last 1.6%). November Public Sector Net Borrowing -GBP11.65 bln (expected -GBP10.20 bln; last -GBP21.19 bln). December CBI Distributive Trades Survey -44 (expected -29; last -32)
  • France's November PPI 1.1% m/m (last 0.0%); -3.3% yr/yr (last -0.8%)
  • Italy's December Business Confidence 88.4 (expected 89.3; last 89.5) and Consumer Confidence 96.6 (expected 96.0; last 95.0). October Industrial Sales -0.5% m/m (last 1.9%); 1.7% yr/yr (last 3.4%)

---Equity Markets---

• STOXX Europe 600: flat
• Germany's DAX: +0.1%
• U.K.'s FTSE 100: UNCH 
• France's CAC 40: -0.1%
• Italy's FTSE MIB: +0.4% 
• Spain's IBEX 35: +0.2%

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

CNBC reports that today's session could see some volatile action as four different types of securities are expiring today, an event dubbed "quadruple witching." According to Goldman Sachs, more than $7.1 trillion in notional options exposure is set to expire today, the most on record. 

Equity futures point to a mostly higher opening this morning after the major averages notched solid gains yesterday, with the S&P 500 snapping a four-day streak of lower finishes and reclaiming its 50-day moving average. 

Tech and mega-cap names led the advance after a strong earnings report from Micron (MU 252.20, +3.65, +1.5%), while the broader market benefitted from a cooler-than-expected November CPI report. 

The major averages hold week-to-date losses of 0.8% to 1.0% heading into today's session. 

Tech names look poised to expand upon yesterday's momentum, with Oracle (ORCL 187.50, +7.47, +4.2%) an early standout after TikTok signed a deal to sell its U.S. unit to a consortium of U.S. companies including Oracle. 

On the policy front, Fed Governor Waller had a "strong interview" with President Trump for Fed Chair, BlackRock's Rick Rieder is scheduled to be interviewed during the final week of 2025, and Michelle Bowman is no longer under consideration, according to CNBC. 

The market will not receive the November Personal Income and Spending report, leaving today's data releases limited to November Existing Home Sales  (Briefing.com consensus: 4.1 mln)  and the final reading of the December University of Michigan Consumer Sentiment Index (Briefing.com consensus: 53.3) at 10:00 a.m.

In corporate news:

• Nike (NKE 58.35, -7.28, -11.1%) beat EPS expectations by $0.16 and beat on revenues but trades sharply lower after revenues slumped 16% in China, with expectations for a similar decline next quarter. 
• The U.S. is reviewing sales of advanced Nvidia (NVDA 175.67, +1.53, +0.9%) artificial intelligence chips to China, according to Reuters. 
• Oracle (ORCL 187.50, +7.47, +4.2%) and OpenAI had a request approved by Michigan regulators to power a Michigan data center, according to Bloomberg.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended the week on a higher note. Japan's Nikkei: +1.0%, Hong Kong's Hang Seng: +0.8%, China's Shanghai Composite: +0.4%, India's Sensex: +0.5%, South Korea's Kospi: +0.7%, Australia's ASX All Ordinaries: +0.5%.

In news:

• The Bank of Japan raised its policy rate by 25 basis points to a 30-year high of 0.75%, as expected. The rate hike vote was unanimous.
• New Zealand saw a big improvement in business confidence for December while its trade deficit shrunk significantly.
• Fitch affirmed New Zealand's AA+ rating, observing that gradual recovery has hampered fiscal consolidation.
• Chinese press speculated that the People's Bank of China is preparing to lower its reserve requirement ratio in January.

In economic data:

• China's November FDI -7.5% YTD (last -10.3%)
• Japan's November National CPI 0.4% m/m (last 0.4%); 2.9% yr/yr (last 3.0%). National Core CPI 3.0% yr/yr, as expected (last 3.0%)
• South Korea's November PPI 0.3% m/m (last 0.2%); 1.9% yr/yr (last 1.5%)
• Australia's November Private Sector Credit 0.6% m/m, as expected (last 0.7%) and Housing Credit 0.6% m/m (last 0.6%). November Commodity Prices -3.8% yr/yr (last -1.7%)
• New Zealand's November trade deficit NZD163 mln (expected deficit of NZD1.175 bln; last deficit of NZD1.598 bln). November Credit Card Spending 4.7% yr/yr (last 1.6%). December ANZ Business Confidence 73.6 (last 67.1)

Major European indices trade near their flat lines, tracking a quiet finish to the week. STOXX Europe 600: -0.1%, Germany's DAX: -0.1%, U.K.'s FTSE 100: UNCH, France's CAC 40: -0.1%, Italy's FTSE MIB: +0.3%, Spain's IBEX 35: -0.1%.

In news:

• Today's economic data batch included some soft spots like weak November Retail Sales in the U.K. (-0.1%; expected 0.3%) and weak January Consumer Climate in Germany (-26.9; expected -23.0).
• The EU agreed to provide an EUR90 bln loan to Ukraine but could not agree on spending frozen Russian assets.
• European Central Bank officials appear comfortable with the current level of rates while Goldman Sachs expects the Bank of England to cut its bank rate three times in 2026.

In economic data:

• Eurozone's October Current Account surplus EUR25.7 bln (expected surplus of EUR16.0 bln; last surplus of EUR23.1 bln)
• Germany's November PPI 0.0% m/m (expected 0.1%; last 0.1%); -2.3% yr/yr (expected -2.2%; last -1.8%). January GfK Consumer Climate -26.9 (expected -23.0; last -23.4)
• U.K.'s November Retail Sales -0.1% m/m (expected 0.3%; last -0.9%); 0.6% yr/yr (expected 1.6%; last 0.6%). November Core Retail Sales -0.2% m/m (expected 0.2%; last -0.8%); 1.2% yr/yr (expected 1.6%; last 1.6%). November Public Sector Net Borrowing -GBP11.65 bln (expected -GBP10.20 bln; last -GBP21.19 bln). December CBI Distributive Trades Survey -44 (expected -29; last -32)
• France's November PPI 1.1% m/m (last 0.0%); -3.3% yr/yr (last -0.8%)
• Italy's December Business Confidence 88.4 (expected 89.3; last 89.5) and Consumer Confidence 96.6 (expected 96.0; last 95.0). October Industrial Sales -0.5% m/m (last 1.9%); 1.7% yr/yr (last 3.4%)

[BRIEFING.COM] The S&P 500 (+0.8%), Nasdaq Composite (+1.4%), and DJIA (+0.1%) finished higher across the board as Micron's (MU 248.55, +23.03, +10.21%) earnings report gave the AI trade a nice lift, while the broader market was boosted by a cooler-than-expected November CPI report. 

The report was atypical, lacking month-over-month data because of missing October figures, but year-over-year inflation showed clear improvement, with CPI slowing to 2.7% from 3.0% and core CPI easing to 2.6% from 3.0%.

Ultimately it proved to be another pre-market boost for a market that was already trending up after a stellar beat-and-raise earnings report from Micron. The company shattered estimates for both revenue and earnings while providing a Q2 outlook that far exceeded market expectations.

Chipmakers unsurprisingly rallied on the report, with the PHLX Semiconductor Index gaining 2.5%. 

Additionally, the blowout results provided a significant lift to peer memory and storage stocks, including Sandisk (SNDK 219.46, +12.63, +6.11%), Seagate Tech (STX 292.00, +14.35, +5.17%), and Western Digital (WDC 175.01, +8.75, +5.26%). 

The information technology sector (+1.4%) finished with one of the widest gains as a result. 

The consumer discretionary sector (+1.8%) nabbed the top spot on the leaderboard, supported by solid leadership in its mega-cap components Tesla (TSLA 483.37, +16.11, +3.45%) and Amazon (AMZN 226.76, +5.49, +2.48%). 

Elsewhere in the sector, lululemon athletica (LULU 215.11, +7.24, +3.48%) traded higher after The Wall Street Journal reported that Elliot Investment Management has built a $1 billion stake in the company, and Starbucks (SBUX 89.42, +4.21, +4.94%) notched the widest gain in the sector as the company's "Back to Starbucks" plan is starting to yield results. 

The communication services sector (+1.5%) also benefitted from strength in the market's largest names. The Vanguard Mega Cap Growth ETF (+1.3%) captured a nice gain, helping the market-weighted S&P 500 (+0.8%) outperform the S&P 500 Equal Weighted Index (+0.2%). 

That margin was closer throughout most of the day, though some late-session selling activity saw five S&P 500 sectors close lower.  It is worth noting that all five sectors that closed lower today finished at or above their baselines in yesterday's action, highlighting the recent back-and-forth trend seen in the market. 

Additionally, only the energy sector (-1.4%) closed with a loss wider than 0.7%. 

Outside of the S&P 500, the Russell 2000 (+0.6%) and S&P Mid Cap 400 (+0.5%) followed the seesaw trend, notching solid gains after retreating yesterday. 

While the AI trade certainly showed signs of rejuvenation today, the broader trend is still reflective of some choppy action. The information technology sector (+1.4%), the PHLX Semiconductor Index (+2.5%), and the Vanguard Mega Cap Growth ETF (+1.3%) all outperformed today, but recent weakness still seats them week-to-date and month-to-date losses. 

Additionally, CNBC reported that, according to Goldman, more than $7.1 trillion in notional options exposure is scheduled to expire this Friday, including about $5 trillion linked to the S&P 500, which could make for a volatile end to this week's action.

Still, the S&P 500 notched a technical victory by reclaiming its 50-day moving average (6,765.55), and the major averages finished higher across the board, placing today's session firmly in the win column. 

U.S. Treasuries enjoyed a swift recovery from their shallow midweek dip, with the belly leading Thursday's advance. The 2-year note yield settled down three basis points to 3.46%, and the 10-year note yield settled down four basis points to 4.12%. 

• Nasdaq Composite: +19.1% YTD
• S&P 500: +15.2% YTD
• DJIA: +12.7% YTD
• Russell 2000: +12.5% YTD
• S&P Mid Cap 400: +6.4% YTD

Reviewing today's data:

• Total CPI for the two-month period from September to November was up 0.2% (Briefing.com consensus: 0.3%), while core CPI, which excludes food and energy, was also up 0.2% for the two-month period (Briefing.com consensus: 0.3%). The October data were not available due to the government shutdown. On a year-over-year basis, total CPI increased 2.7% versus a prior 3.0%, and core CPI was up 2.6% versus a prior 3.0%.
  • The key takeaway from the report is twofold: first, it is a messy report because of the lack of October data, but secondly and more to the point today, the disinflation in the year-over-year readings is a welcome sight for policymakers and market participants.
• Initial jobless claims for the week ending December 13 decreased by 13,000 to 224,000 (Briefing.com consensus: 229,000). Continuing jobless claims for the week ending December 6 increased by 67,000 to 1.897 million.
  • The key takeaway from the report is its low firing-low hiring dynamic, evidenced by the decrease in initial claims and the increase in continuing claims. That is a delicate balance that helps validate the Fed's willingness to walk the line with a rate cut at its December meeting, particularly when paired with the disinflation seen in the November CPI report.
• The Philadelphia Fed Index dropped to -10.2 in December (Briefing.com consensus: 2.9) from -1.7 in November. The headline reading, though, was also accompanied by a welcome 13-point drop in the prices paid index to 43.6, which is the lowest reading since June.