[BRIEFING.COM] The stock market ended the first full trading week of 2026 on a high note, with the S&P 500 (+0.7%) once again capturing record highs. Broad-based gains saw the Nasdaq Composite (+0.8%) and DJIA (+0.5%) notch similar gains, with the Dow capturing a record closing high of its own. 

Stocks had a somewhat muted opening as investors digested a heavy batch of economic data. The December Employment Situation report (50,000; Briefing.com consensus 55,000) showed slightly weaker-than-expected growth in payrolls, while the unemployment rate dipped to 4.4% from 4.5% and average hourly earnings growth accelerated to 3.8% from 3.6%. The report pushed back the market's expectation of the next rate cut from April to June but painted a solid enough picture of the labor market to quell fears of a downturn in consumer spending and the economy. 

With all recent indicators pointing to a strong 2026 economy, stocks advanced in broad fashion, similar to Monday and Tuesday's sessions. Nine S&P 500 sectors captured gains, with several sector-specific developments acting as catalysts.

In the case of the top-weighted information technology sector (+1.0%), support came from a strong rebound in chipmaker names after yesterday's pullback. The PHLX Semiconductor Index finished 2.7% higher. Sandisk (SNDK 377.41, +42.87, +12.81%) was the sector's top performer after Tom's Hardware reported the company plans a sharp increase in enterprise SSD pricing in early 2026 as AI demand grows. Intel (INTC 45.55, +4.44, +10.80%) also captured a double-digit gain after President Trump touted a great meeting with CEO Lip-Bu Tan yesterday evening. 

The consumer discretionary sector (+1.1%) also had an eventful session, with homebuilder names such as Lennar (LEN 119.25, +9.70, +8.85%) and D.R. Horton (DHI 157.28, +11.38, +7.80%) leading the advance. President Trump ordered Fannie Mae (FNMA 11.01, +0.16, +1.47%) and Freddie Mac (FMCC 10.08, -0.06, -0.59%) to purchase $200 billion in mortgage bonds, reinforcing expectations for increased mortgage-market support. Additionally, the October Housing Starts report (-4.6%) showed single-unit starts up 5.4% month-over-month and at their highest level since July.

The iShares U.S. Home Construction ETF finished 6.3% higher.

Elsewhere in the sector, many retail names such as lululemon athletica (LULU 203.90, -8.27, -3.90%) traded lower today on disappointment that the US Supreme Court did not issue a decision on the legality of President Trump's IEEPA tariffs today, as many hoped it would. The next decision day for the Supreme Court at which a ruling could be announced is next Wednesday. 

Other outperformers include the materials sector (+1.8%), which was supported by a rally in precious metals prices, and the utilities sector (+1.2%), which saw its electric companies boosted after Vistra Corp. (VST 166.40, +15.80, +10.49%) and Meta Platforms (META 653.06, +7.00, +1.08%) entered a power purchase agreement. 

Only the health care sector (-0.6%) and the financials sector (-0.4%), which will see many of its major banking names report earnings next week, finished lower. 

Outside of the S&P 500, the Russell 2000 (+0.8%) and S&P Mid Cap 400 (+0.9%) slightly outperformed their larger-cap counterparts, a trend that has held over the first two weeks of trading this year.

The market is off to a strong start in 2026, with broadening strength driving the major averages to record highs. While next week's inflation data and a pickup in earnings reports will test that momentum, the broader macro backdrop continues to point to an economy supportive of further market growth.

U.S. Treasuries had a mixed finish to the week, with longer tenors showing relative strength while the 2-year note lagged after a December jobs report that was good enough to call the market's rate cut expectations into question. The 2-year note yield settled up five basis points to 3.54% (+6 basis points this week), and the 10-year note yield settled down one basis point to 4.17% (-2 basis points this week). 

• Russell 2000: +5.7% YTD
• S&P Mid Cap 400: +4.7% YTD
• DJIA: +3.0% YTD
• Nasdaq Composite: +1.9% YTD
• S&P 500: +1.8% YTD

Reviewing today's data:

• December Nonfarm Payrolls 50K (Briefing.com consensus 55K); Prior was revised to 56K from 64K, December Nonfarm Private Payrolls 37K (Briefing.com consensus 50K); Prior was revised to 50K from 69K, December Unemployment Rate 4.4% (Briefing.com consensus 4.5%); Prior was revised to 4.5% from 4.6%, December Average Hourly Earnings 0.3% (Briefing.com consensus 0.3%); Prior was revised to 0.2% from 0.1%, December Average Workweek 34.2 (Briefing.com consensus 34.3); Prior 34.3
  • Granted, the employment situation could be better, but the key takeaway is that the low unemployment rate will temper concerns that consumer spending and the economy will slow rapidly due to a weak labor market. It will also likely keep the Fed's next rate cut at bay.
• September Housing Starts 1.306 mln (Briefing.com consensus 1.320 mln); Prior was revised to 1.291 mln from 1.307 mln, September Building Permits 1.415 mln (Briefing.com consensus 1.340 mln); Prior was revised to 1.330 mln from 1.312 mln
• October Housing Starts 1.246 mln (Briefing.com consensus 1.340 mln); Prior 1.306 mln, October Building Permits 1.412 mln (Briefing.com consensus 1.355 mln); Prior 1.415 mln
  • The key takeaway from the report is that the weakness in starts was driven entirely by multi-family units. Single-unit starts were up 5.4% month-over-month and at their highest level since July.
• January Univ. of Michigan Consumer Sentiment - Prelim 54.0 (Briefing.com consensus 53.0); Prior 52.9
  • 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.

[BRIEFING.COM] The major averages continue to chart session highs just before the close, well positioned to capture solid week-to-date gains in the first full trading week of 2026. 

The market navigated several key developments today, including a better-than-feared December Employment Situation Report and discussions between the Trump administration and oil executives in regard to Venezuela.

Next week's action could prove just as eventful as investors look towards the December CPI release on Tuesday (Briefing.com consensus 0.3%) and the November PPI release on Wednesday (Briefing.com consensus 0.2%). 

Additionally, the Supreme Court could rule on the legality of President Trump's IEEPA tariffs next Wednesday.  Many analysts thought that ruling would come through today, as it was also a decision day, but the Supreme Court does not decide which cases they will rule on beforehand.

[BRIEFING.COM] The S&P 500 (+0.8%), Nasdaq Composite (+1.0%), and DJIA (+0.5%) continue to chart new session highs as the market enters the final hour of the session. 

After spending the majority of the session in negative territory, Amazon (AMZN 246.85, +0.56, +0.23%) now holds a modest gain, with The Information reporting that the company is planning on opening a big box retail store. 

Even with today's sluggishness, the stock is a clear standout among the "magnificent seven" names to start the year, rising 6.9% so far.  Alphabet (GOOG 330.65, +4.64, +1.42%) holds the next widest year-to-date gain of 5.5%. 

[BRIEFING.COM] The S&P 500 (+0.76%) is in second place on Friday afternoon, up about 53 points.

Briefly, S&P 500 constituents Builders FirstSource (BLDR 123.96, +12.67, +11.38%), Lam Research (LRCX 218.36, +17.40, +8.66%), and Weyerhaeuser (WY 25.55, +1.56, +6.50%) dot the top of the standings. BLDR and WY rise as investors reacted to reports that President Trump and Commerce Secretary Lutnick met with homebuilders to boost housing affordability and construction, raising optimism for increased building activity and stronger demand for construction materials across the sector, while LRCX gets a boost from sell side target increases.

Meanwhile, lululemon athletica (LULU 201.89, -10.28, -4.85%) is today's worst laggard after Piper Sandler data showed SKUs on sale up roughly 90% yr/yr, reviving investor concerns that rising discounting -- unlike stabilizing promos at peers like Nike (NKE 65.60, +0.34, +0.52%) -- could pressure margins and earnings quality into January.

[BRIEFING.COM] With about two hours to go on the week the tech-heavy Nasdaq Composite (+0.91%) is in the lead, up about 213 points.

Gold futures settled $40.20 higher (+0.9%) at $4,500.90/oz, extending weekly gains to about +4%, as safe-haven demand stayed elevated amid geopolitical tensions and ongoing central bank buying. Expectations for easier Fed policy and lower real yields have further supported bullion, keeping gold well bid ahead of next week's CPI/PPI data.

Meanwhile, the U.S. Dollar Index is up +0.3% to $99.13.

[BRIEFING.COM] The Dow Jones Industrial Average (+0.39%) is in last place on Friday afternoon, up about 195 points.

A look inside the DJIA shows that Home Depot (HD 372.78, +13.22, +3.68%), Boeing (BA 233.00, +5.62, +2.47%), and Caterpillar (CAT 616.99, +8.86, +1.46%) are performing well.

Meanwhile, American Express (AXP 375.31, -7.67, -2.00%) is today's top laggard.

The DJIA is set to end the week +2.23% higher.

Also, at the top of the hour, Baker Hughes (BKR 49.94, -0.26, -0.52%) announced a weekly U.S. rotary rig count of 544, -2 w/w and -40 yr/yr.

[BRIEFING.COM] The first half of today's session has seen stocks advance in broad fashion, pushing the S&P 500 (+0.6%) to a fresh all-time high while the Nasdaq Composite (+0.8%) and DJIA (+0.4%) hold similar gains. 

Nine S&P 500 sectors trade higher, with cyclical, growth, and defensive sectors all posting solid gains. The December Employment Situation Report showed nonfarm payrolls rising by 50,000 and the unemployment rate edging down to 4.4% from 4.5%. While the data effectively removed any chance of a January rate cut, the still-low unemployment rate may help temper concerns about a labor-market-driven slowdown in consumer spending and economic activity.

Cyclical stocks are continuing their impressive rally as a result, with rising oil and precious metals prices contributing to today's strength. 

This morning's data also contributed to a sharp rise in homebuilder names as the October Housing Starts report (-4.6%) showed single-unit starts up 5.4% month-over-month and at their highest level since July.  Notably, President Trump has instructed Fannie Mae (FNMA 10.99, +0.14, +1.29%) and Freddie Mac (FMCC 10.24, +0.10, +0.99%) to purchase $200 billion in mortgage bonds, reinforcing expectations for increased mortgage-market support.

The iShares U.S. Home Construction ETF is up 5.4% as names such as Lennar (LEN 117.51, +7.96, +7.27%) and D.R. Horton (DHI 155.12, +9.22, +6.32%) dot the top of the standings in the consumer discretionary sector (+0.8%). 

The top-weighted information technology sector (+0.8%) also holds a solid gain, supported by a rebound in chipmaker names that sends the PHLX Semiconductor Index 2.7% higher. Sandisk (SNDK 371.43, +36.89, +11.03%) is one of the top movers in the S&P 500 after Tom's Hardware reported the company plans a sharp increase in enterprise SSD pricing in early 2026 as AI demand grows. 

After some early shakiness, the mega-caps have also found their footing, with the Vanguard Mega Cap Growth ETF up 0.6%. 

The utilities sector (+1.7%) holds the widest gain, supported by strength in Vistra Corp. (VST 168.69, +18.09, +12.01%) after the company announced a 20-year agreement to power Meta Platforms (META 652.56, +6.50, +1.01%) operations.

Meanwhile, only the financials (-0.2%) and health care (-0.1%) sectors fail to post gains at this juncture. 

Outside of the S&P 500, the Russell 2000 (+1.2%) and S&P Mid Cap 400 (+0.9%) continue to outperform as early macro indicators support a favorable backdrop for growth-oriented stocks this year.

Today's strength adds to a solid rally in stocks from early this week before two consecutive mixed finishes. The broader macro backdrop continues to be supportive, keeping the major averages at record high levels heading into earnings season. 

Reviewing today's data:

• December Nonfarm Payrolls 50K (Briefing.com consensus 55K); Prior was revised to 56K from 64K, December Nonfarm Private Payrolls 37K (Briefing.com consensus 50K); Prior was revised to 50K from 69K, December Unemployment Rate 4.4% (Briefing.com consensus 4.5%); Prior was revised to 4.5% from 4.6%, December Average Hourly Earnings 0.3% (Briefing.com consensus 0.3%); Prior was revised to 0.2% from 0.1%, December Average Workweek 34.2 (Briefing.com consensus 34.3); Prior 34.3
  • Granted, the employment situation could be better, but the key takeaway is that the low unemployment rate will temper concerns that consumer spending and the economy will slow rapidly due to a weak labor market. It will also likely keep the Fed's next rate cut at bay.
• September Housing Starts 1.306 mln (Briefing.com consensus 1.320 mln); Prior was revised to 1.291 mln from 1.307 mln, September Building Permits 1.415 mln (Briefing.com consensus 1.340 mln); Prior was revised to 1.330 mln from 1.312 mln
• October Housing Starts 1.246 mln (Briefing.com consensus 1.340 mln); Prior 1.306 mln, October Building Permits 1.412 mln (Briefing.com consensus 1.355 mln); Prior 1.415 mln
  • The key takeaway from the report is that the weakness in starts was driven entirely by multi-family units. Single-unit starts were up 5.4% month-over-month and at their highest level since July.
• January Univ. of Michigan Consumer Sentiment - Prelim 54.0 (Briefing.com consensus 53.0); Prior 52.9
  • 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.

[BRIEFING.COM] The S&P 500 (+0.7%), Nasdaq Composite (+0.8%), and DJIA (+0.6%) are firmly higher just after midday. 

Only the health care sector (-0.1%) holds a modest loss. Merck (MRK 111.41, +0.42, +0.38%) trades modestly higher after reportedly engaging in discussions to acquire Revolution Medicines (RVMD 112.96, +5.57, +5.19%) in a deal valued between $28 and $32 billion, or possibly more, according to the Financial Times. The potential acquisition aims to bolster MRK's oncology pipeline as it faces the looming patent cliff of its blockbuster immunotherapy, Keytruda.

Elsewhere in the sector, Moderna (MRNA 35.09, +1.23, +3.63%) takes back a solid chunk of yesterday's 5.7% retreat. 

[BRIEFING.COM] The major averages continue to chart session highs at midday, with the S&P 500 (+0.6%) currently trading above its all-time closing high (6,942.82).

U.S. homebuilder stocks are trading higher today as investors respond positively to signals of potential policy support for housing and evidence of resilient single-family construction demand. The iShares U.S. Home Construction ETF is up 5.0% due to solid gains from names such as Lennar (LEN 116.63, +7.08, +6.46%) and D.R. Horton (DHI 154.99, +9.09, +6.23%).

The key catalyst this morning is commentary from NEC Director Kevin Hassett indicating that President Trump will unveil a "comprehensive housing plan" at the World Economic Forum, with $200 billion in mortgage-backed securities (MBS) purchases described as only a small part of the overall package.

Additionally, the October Housing Starts report shows single-unit starts up 5.4% month-over-month and at their highest level since July, with weakness in the headline figure (a 4.6% decline) concentrated in multi-family. The shift toward single-family construction is generally favorable for the major public homebuilders, which are more leveraged to detached single-family demand.

[BRIEFING.COM] The S&P 500 (+0.5%), Nasdaq Composite (+0.7%), and DJIA (+0.3%) have traded steadily higher throughout the session as the market has responded well to several tests this morning. 

The December Employment Situation Report saw nonfarm payrolls increase by 50,000 and the unemployment rate tick down to 4.4% from 4.5%, While the data effectively killed any odds of a January rate cut, the low unemployment rate may help limit concerns that consumer spending and the economy will be slowed by a weak labor market. 

The market's other test was effectively postponed, as the Supreme Court did not issue a ruling on the legality of President Trump's IEEPA tariffs. 

Stocks are broadly higher as a result, with nine S&P 500 sectors holding gains just before midday. Cyclical sectors (with the exception of the flat financials sector) continue to post strong gains, with mega-caps providing solid leadership. Semiconductors, homebuilders, and defense stocks are among the outperformers.

The utilities sector (+1.5%) holds the widest gain, with electric companies posting sharp gains as Vistra Corp. (VST 170.80, +20.20, +13.41%) and Oklo Inc. (OKLO 110.04, +12.44, +12.74%) (which itself is not a component of the sector or the S&P 500) announced nuclear power agreements with Meta Platforms (META 654.10, +8.04, +1.24%). 

Outside of the S&P 500, the Russell 2000 (+0.8%) and S&P Mid Cap 400 (+0.7%) outperform amid a solid day for growth stocks. 

[BRIEFING.COM] The S&P 500 (+0.4%), Nasdaq Composite (+0.5%), and DJIA (+0.2%) trade at their best levels of the session. 

The top-weighted information technology sector (+0.4%) has shaken off some early sluggishness with the help of its chipmaker components, which have rebounded nicely from yesterday's pullback. 

The PHLX Semiconductor Index is up 2.1%, which pushes its week-to-date gain to 3.0%.  Sandisk (SNDK 364.33, +29.79, +8.90%) is one of the top-performing S&P 500 names today after Tom's Hardware reported the company is planning a sharp increase in enterprise SSD pricing in early 2026 as AI demand grows.

Intel (INTC 43.74, +2.63, +6.40%) is another top mover, rising sharply after President Trump posted on Truth Social that he had a great meeting with CEO Lip-Bu Tan.

[BRIEFING.COM] The S&P 500 (+0.3%), Nasdaq Composite (+0.3%), and DJIA (+0.1%) trade with slight gains amid relatively muted action this morning. 

The preliminary University of Michigan Consumer Sentiment reading for January increased to 54.0 (Briefing.com consensus: 53.0) from the final reading of 52.9 for December. In the same period a year ago, the index stood at 71.7.

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.

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (flat), and DJIA (-0.1%) are mixed higher shortly after the open. 

The Supreme Court will not issue a ruling on the legality of the IEEPA tariffs today. 

Nine S&P 500 sectors trade at or above their baselines, though gains are largely modest. The utilities sector (+1.8%) is the early standout, with Vistra Corp. (VST 172.04, +21.44, +14.24%) rising sharply after announcing an agreement with Meta Platforms (META 646.79, +0.73, +0.11%) to support nuclear plants in PJM and add new nuclear generation to the grid.

The industrials sector (+0.9%) is another top mover, benefitting from continued strength in its defense names after President Trump called for a substantial increase in the military budget for 2027.

Just released, the preliminary University of Michigan Consumer Sentiment reading for January increased to 54.0 (Briefing.com consensus: 53.0) from the final December reading of 52.9.4

Equity futures now point to a higher opening after a busy morning of economic data. 

The employment situation in December was better than feared and not entirely bad, unless one is counted among the long-term unemployed.

Nonfarm payrolls increased by 50,000; the unemployment rate fell to 4.4% from 4.5%; and average hourly earnings increased 3.8% year-over-year versus 3.6% in November. Granted, the employment situation could be better, but the key takeaway is that the low unemployment rate will temper concerns that consumer spending and the economy will slow rapidly due to a weak labor market. It will also likely keep the Fed's next rate cut at bay.

Housing starts in October declined 4.6% month-over-month to a seasonally adjusted annual rate of 1.246 million (Briefing.com consensus: 1.340 million). Building permits decreased 0.2% to a seaonally adjusted annual rate of 1.412 million (Briefing.com consensus: 1.355 million).

The key takeaway from the report is that the weakness in starts was driven entirely by multi-family units. Single-unit starts were up 5.4% month-over-month and at their highest level since July.

The S&P 500 futures currently trade 27 points above fair value. 

Equity indices in the Asia-Pacific region ended the week on a mostly higher note. Press reports suggest that China has continued tightening restrictions on exports to Japan with The Wall Street Journal reporting that licensing for rare earth exports has been suspended. Japan's Finance Minister Katayama is expected to discuss the issue with U.S. officials during a visit next week. Fast Retailing increased its guidance for FY26. TD expects the Reserve Bank of Australia to announce a 25-basis point rate hike in February.

• In economic data:
  • China's December CPI 0.2% m/m (last -0.1%); 0.8% yr/yr, as expected (last 0.7%). December PPI -1.9% yr/yr (expected -2.0%; last -2.2%)
  • Japan's November Household Spending 6.2% m/m (expected 2.7%; last -3.5%); 2.9% yr/yr (expected -1.0%; last -3.0%). November Leading Index 110.5 (expected 110.4; last 109.8) and Coincident Indicator -0.7% m/m (expected 0.5%; last 1.0%)
  • South Korea's November Current Account $12.24 bln (last $6.81 bln)

---Equity Markets---

• Japan's Nikkei: +1.6% 
• Hong Kong's Hang Seng: +0.3%
• China's Shanghai Composite: +0.9%
• India's Sensex: -0.7%
• South Korea's Kospi: +0.8% 
• Australia's ASX All Ordinaries: UNCH

Major European indices trade in the green while Spain's IBEX (-0.2%) lags. Germany's industrial production grew unexpectedly in November. European Central Bank policymaker Centeno is reportedly looking to run to replace Vice President de Guindos. There is some ongoing focus on merger talks between Rio Tinto and Glencore.

• In economic data:
  • Eurozone's November Retail Sales 0.2% m/m (expected 0.1%; last 0.3%); 2.3% yr/yr (expected 1.6%; last 1.9%)
  • Germany's November trade surplus EUR13.1 bln (expected surplus of EUR16.3 bln; last surplus of EUR17.2 bln). November Imports 0.8% m/m (expected 0.2%; last -1.5%) and Exports -2.5% m/m (expected 0.0%; last 0.3%). November Industrial Production 0.8% m/m (expected -0.6%; last 2.0%); 0.8% yr/yr (last 1.1%)
  • France's November Consumer Spending -0.3% m/m (expected -0.1%; last 0.5%) and Industrial Production -0.1% m/m (expected -0.2%; last 0.2%)
  • Italy's November Retail Sales 0.5% m/m (expected 0.3%; last 0.5%); 1.3% yr/yr (last 1.3%)
  • Spain's November Industrial Production 4.5% yr/yr (last 1.2%). December Business Confidence -3.5 (last -3.2)
  • Swiss December Unemployment Rate 3.0%, as expected (last 3.0%)

---Equity Markets---

• STOXX Europe 600: +0.7%
• Germany's DAX: +0.6%
• U.K.'s FTSE 100: +0.6%
• France's CAC 40: +1.0% 
• Italy's FTSE MIB: +0.1%
• Spain's IBEX 35: -0.2%

The S&P 500 futures currently trade 27 points above fair value. 

December nonfarm payrolls increased by 50,000 (Briefing.com consensus: 55,000) after increasing by a revised 56,000 (from 64,000) in November.

December private sector payrolls increased by 37,000 (Briefing.com consensus: 50,000) following a 50,000 increase (from 69,000) in November.

The December unemployment rate was 4.4% (Briefing.com consensus: 4.5%) versus a revised 4.5% (from 4.6%) in November.

December average hourly earnings were up 0.3% (Briefing.com consensus: 0.3%) versus a revised 0.2% (from 0.1%) increase in November.

The average workweek in December was 34.2 hours (Briefing.com consensus: 34.3) versus 34.3 hours in November.

Total housing starts declined to an adjusted annual rate of 1.306 million in September (Briefing.com consensus: 1.320 million) from 1.307 million in August. Housing starts then declined again in October to 1.246 million (Briefing.com consensus 1.340 million). 

Building permits increased to a seasonally adjusted annual rate of 1.415 million in September (Briefing.com consensus: 1.340 million) from a revised 1.330 million (from 1.312 million) in August. Building permits then decreased to 1.412 million in October (Briefing.com consensus 1.355 million).

Equity futures point to a modestly higher opening after yesterday's action saw investors rotate out of tech stocks while cyclical names resumed their rally from earlier in the week. The major averages have finished mixed in the past two sessions, though they enter today's action with solid week-to-date gains. 

Today's session could likely be the most notable of the new year so far, with multiple catalysts in play. The U.S. Supreme Court is expected to deliver opinions on the legality of President Trump's broad tariffs that were enacted under the International Emergency Economic Powers Act (IEEPA). If the court finds the tariffs illegal, refunds, or at least partial refunds of tariff revenue collected, could be paid. 

The market also has a full slate of economic data to assess this morning, including the December Employment Situation Report. Recent labor data suggests the labor market is still in a low-firing, low-hiring state. The market is expectant of multiple rate cuts from the Fed this year, but it is not until April that the probability of a rate cut reaches 50%, according to the CME FedWatch tool. 

 In corporate news:

• President Trump, in an interview, says oil companies have pledged to spend $100 billion in Venezuela, and he will meet with oil executives today, according to Politico.
• Merck (MRK 111.00, +0.01, +0.0%) could pay between $28 billion and $32 billion for Revolution Medicines (RVMD 123.00, +15.61, +14.5%), according to Financial Times.
• Taiwan Semiconductor Manufacturing (TSM 319.41, +1.40, +0.4%) beat revenue estimates, according to Bloomberg. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended the week on a mostly higher note. Japan's Nikkei: +1.6%, Hong Kong's Hang Seng: +0.3%, China's Shanghai Composite: +0.9%, India's Sensex: -0.7%, South Korea's Kospi: +0.8%, Australia's ASX All Ordinaries: UNCH.

In news:

• Press reports suggest that China has continued tightening restrictions on exports to Japan with The Wall Street Journal reporting that licensing for rare earth exports has been suspended. Japan's Finance Minister Katayama is expected to discuss the issue with U.S. officials during a visit next week.
• Fast Retailing increased its guidance for FY26.
• TD expects the Reserve Bank of Australia to announce a 25-basis point rate hike in February.

In economic data:

• China's December CPI 0.2% m/m (last -0.1%); 0.8% yr/yr, as expected (last 0.7%). December PPI -1.9% yr/yr (expected -2.0%; last -2.2%)
• Japan's November Household Spending 6.2% m/m (expected 2.7%; last -3.5%); 2.9% yr/yr (expected -1.0%; last -3.0%). November Leading Index 110.5 (expected 110.4; last 109.8) and Coincident Indicator -0.7% m/m (expected 0.5%; last 1.0%)
• South Korea's November Current Account $12.24 bln (last $6.81 bln)

Major European indices trade in the green while Spain's IBEX (-0.3%) lags. STOXX Europe 600: +0.6%, Germany's DAX: +0.4%, U.K.'s FTSE 100: +0.6%, France's CAC 40: +0.9%, Italy's FTSE MIB: +0.1%, Spain's IBEX 35: -0.3%.

In news:

• Germany's industrial production grew unexpectedly in November.
• European Central Bank policymaker Centeno is reportedly looking to run to replace Vice President de Guindos.
• There is some ongoing focus on merger talks between Rio Tinto and Glencore.

In economic data:

• Eurozone's November Retail Sales 0.2% m/m (expected 0.1%; last 0.3%); 2.3% yr/yr (expected 1.6%; last 1.9%)
• Germany's November trade surplus EUR13.1 bln (expected surplus of EUR16.3 bln; last surplus of EUR17.2 bln). November Imports 0.8% m/m (expected 0.2%; last -1.5%) and Exports -2.5% m/m (expected 0.0%; last 0.3%). November Industrial Production 0.8% m/m (expected -0.6%; last 2.0%); 0.8% yr/yr (last 1.1%)
• France's November Consumer Spending -0.3% m/m (expected -0.1%; last 0.5%) and Industrial Production -0.1% m/m (expected -0.2%; last 0.2%)
• Italy's November Retail Sales 0.5% m/m (expected 0.3%; last 0.5%); 1.3% yr/yr (last 1.3%)
• Spain's November Industrial Production 4.5% yr/yr (last 1.2%). December Business Confidence -3.5 (last -3.2)
• Swiss December Unemployment Rate 3.0%, as expected (last 3.0%)

[BRIEFING.COM] The S&P 500 (flat), Nasdaq Composite (-0.5%), and DJIA (+0.6%) finished mixed today as broad gains were dampened at the index level by a sharp retreat in tech. 

Nine S&P 500 sectors captured gains, with a strong rotation into cyclical sectors once again evident in today's trade. 

The energy sector (+3.2%) captured the widest gain as oil prices surged higher today, rebounding from recent slides in response to developments in Venezuela. Crude oil futures settled today's session $1.76 higher (+3.1%) at $57.75 per barrel.

The consumer discretionary sector (+1.7%) was another top performer, with a majority of its components trading higher. This morning's batch of economic data painted a solid growth picture of the economy, sending homebuilder names surging. Solid gains across names such as Lennar (LEN 109.55, +5.62, +5.41%) and D.R. Horton (DHI 145.90, +6.59, +4.73%) sent the iShares U.S. Home Construction ETF 4.2% higher. 

The sector also benefitted from solid mega-cap leadership from Amazon (AMZN 246.29, +4.73, +1.96%) and Tesla (TSLA 435.80, +4.40, +1.02%).

With that being said, one might find it surprising that the Vanguard Mega Cap Growth ETF (-0.8%) actually faced a considerable retreat today. However, the weakness was almost entirely confined to the information technology sector (-1.5%), with NVIDIA (NVDA 185.00, -4.11, -2.17%) today's "magnificent seven" laggard. 

The PHLX Semiconductor Index (-1.8%) faced its second consecutive day of losses after a strong start to the week, with memory storage names such as Sandisk (SNDK 334.54, -19.02, -5.38%) and Western Digital (WDC 187.68, -12.20, -6.10%) among the worst performers. 

The health care sector (-0.9%) was the only other S&P 500 sector to finish with a loss, once again facing pressure in pharmaceutical and biotech names. 

Meanwhile, the consumer staples sector (+2.3%) finally saw some action after a negative start to the year.  Constellation Brands (STZ 147.98, +7.49, +5.33%) captured the widest gain after beating top-and-bottom-line expectations, while Costco (COST 915.31, +32.73, +3.71%) traded nicely higher after reporting strong December adjusted comparable sales growth of 6.2%. 

Defense names also captured solid gains in today's action, with Huntington Ingalls (HII 378.30, +21.85, +6.13%) and L3Harris (LHX 325.81, +16.05, +5.18%) among the outperformers in the industrials (+0.7%) sector. The move came after President Trump called for a 66% increase in the military budget to $1.5 trillion in 2027. 

Outside of the S&P 500, the Russell 2000 (+1.1%) and S&P Mid Cap 400 (+0.4%) returned to the winners' circle after a retreat yesterday, padding their year-to-date gains that give them an early lead over the major averages. 

All told, today's action reflected a broadening of leadership as early indicators point to a strong economy in 2026, with cyclical and small-cap stocks poised to benefit. Attention now turns to a busy Friday of economic data that includes the December Employment Situation Report, along with an expected ruling from the Supreme Court on the legality of President Trump's sweeping IEEPA tariffs.

U.S. Treasuries retreated on Thursday, giving back their midweek gains, with the 10-year note leading the way. The 2-year note yield settled up two basis points to 3.49%, and the 10-year note yield settled up five basis points to 4.18%. 

• Russell 2000: +4.9% YTD
• S&P Mid Cap 400: +3.8% YTD
• DJIA: +2.5% YTD
• S&P 500: +1.1% YTD
• Nasdaq Composite: +1.0% YTD

Reviewing today's data:

• Weekly Initial Claims 208K (Briefing.com consensus 217K); Prior was revised to 200K from 199K, Weekly Continuing Claims 1.914 mln; Prior was revised to 1.858 mln from 1.866 mln
  • The key takeaway from the report is that initial claims are quite low to support a view that consumer spending should hold up; however, continuing claims remain high enough to support a view that the Fed will worry enough about a softening in the labor market (i.e., weak hiring activity) such that it remains inclined to pursue easier monetary policy.
• Q3 Productivity-Prel 4.9% (Briefing.com consensus 2.5%); Prior was revised to 4.1% from 3.3%, Q3 Unit Labor Costs-Prel -1.9% (Briefing.com consensus 0.8%); Prior was revised to -2.9% from 1.0%
  • The key takeaway from the report is that it is the golden ticket for the economy (and the Fed, per chance), as it reflects strong growth without labor cost inflation.
• October Trade Balance -$29.4 bln (Briefing.com consensus -$61.3 bln); Prior was revised to -$48.1 bln from -$59.6 bln
  • The key takeaway from the report is that the headline deficit number is the lowest since June 2009. A residual takeaway is that the improvement clearly has something to do with the introduction of higher tariff rates that have detracted from import demand.
• October Wholesale Inventories 0.2% (Briefing.com consensus 0.2%); Prior 0.5%
• Consumer credit increased by $4.2 billion in November (Briefing.com consensus: $10.3 billion) following an unrevised $9.2 billion increase in October.