Weekly Wrap

The stock market finished the week with mixed results as investors navigated swings in mega-cap tech and AI-related names, sector rotation, and some highly anticipated data releases that had minimal impact on expectations for near-term monetary policy. The S&P 500 (+0.1% WTD), DJIA (-0.7% WTD), and Nasdaq Composite (+0.5% WTD) reflected divergent trends across large-cap indexes, while smaller-cap benchmarks were relatively subdued: the Russell 2000 (-0.9% WTD) underperformed, and the S&P Mid Cap 400 remained flat.

Stocks in the information technology sector (+0.5% WTD) led both the volatility and the week’s headlines. Early-week weakness in Oracle and Broadcom extended their post-earnings slide despite positive guidance, contributing to swings in the PHLX Semiconductor Index (+0.5% WTD) and the Vanguard Mega Cap Growth ETF (+0.8% WTD). Micron’s blowout earnings midweek sparked a reversal in the AI trade, sending chipmakers higher and giving the sector a late boost.

Cyclical sectors showed pockets of strength amid the turbulence in tech. The consumer discretionary sector (+1.0% WTD) benefited from gains in travel, leisure, and mega-cap names such as Tesla. The energy sector (-2.9% WTD) struggled as optimism about a potential Russia-Ukraine peace deal weighed on oil prices. Defensive sectors such as consumer staples (-0.9%) and utilities (-0.6%) underperformed as tech rallied later in the week. Meanwhile, the health care sector (+0.6% WTD), also defensive in nature, closed higher following news of new agreements to lower prescription drug prices, which buoyed several major pharmaceutical names.

Economic releases this week largely reinforced the narrative of a cautious labor market and steady spending, without prompting a major shift in monetary policy expectations. November payrolls beat expectations with 64,000 new jobs, though prior-month revisions highlighted weakness, and the unemployment rate ticked higher to 4.6%. Retail sales for October were largely flat, while CPI data showed a modest slowdown in year-over-year inflation. Collectively, the data confirmed ongoing moderation in inflation but did little to alter the market’s near-term Fed expectations.

Overall, the week underscored the market’s sensitivity to swings in mega-cap tech and AI-related names, while sector rotation and company-specific catalysts shaped relative performance. Despite the volatility, the major averages remained near key technical levels, setting the stage for year-end positioning and continued attention on earnings, AI developments, and data releases in the coming sessions.

• Nasdaq Composite: +0.5%
• S&P 500: +0.1%
• S&P Mid Cap 400: flat
• DJIA: -0.7%
• Russell 2000: -0.9%

Monday:

The S&P 500 (-0.2%), Nasdaq Composite (-0.6%), and DJIA (-0.1%) retreated from modest gains this morning amid another weak session for the information technology sector (-1.0%), with losses across mega-cap tech names weighing the major averages down despite strength in the broader market. 

Notably, Broadcom (AVGO 339.86, -20.07, -5.58%) and Oracle (ORCL 184.82, -5.15, -2.71%) continued their post-earnings slide, which prompted a pullback in the AI trade last week.

Apple (AAPL 274.20, -4.08, -1.47%) and Microsoft (MSFT 474.75, -3.78, -0.79%) were among the mega-caps that faced pressure, though NVIDIA (NVDA 176.12, +1.10, +0.63%) captured a nice gain. 

Separately, ServiceNow (NOW 764.67, -100.39, -11.60%) posted the widest loss in the sector (and the S&P 500), trading lower after Bloomberg reported that the company is looking to acquire Armis for approximately $7 billion. The stock was downgraded to Underweight from Sector Weight with a $775 target at KeyBanc.

Elsewhere, the communication services sector (-0.2%) finished with a more modest loss, though it too was a result of mega-cap weakness. Alphabet (GOOG 309.30, -1.22, -0.39%) faced a slight retreat, though headlines surrounding the company spurred much more significant losses elsewhere. Aim Group reported that the company is looking to test real estate listings by including them directly in search results, a prospect that weighed heavily on real estate listing stocks such as Zillow (ZG 66.67, -5.71, -7.89%) and CoStar Group (CSGP 63.73, -4.50, -6.60%).

The energy sector (-0.8%) also closed with a loss as crude oil futures settled today's session $0.64 lower (-1.1%) at $56.82 per barrel. 

While weakness in tech prevented gains at the index level, the broader market found support through continued rotation into other areas.

Defensive sectors such as the health care (+1.3%), utilities (+0.9%), and consumer staples (+0.3%) sectors notched gains as the AI trade widened its pullback. 

The health care sector captured the widest gain today as a majority of its components traded higher. Bristol-Myers (BMY 54.30, +1.88, +3.60%) advanced the furthest after Bank of America Securities upgraded the stock to Buy from Neutral, with a price target of $61. The sector's largest component, Eli Lilly (LLY 1062.71, +35.20, +3.43%), captured a similar gain, extending last week's bounce off its lowest level since early November. 

A handful of cyclical sectors also managed to capture gains, with the consumer discretionary sector (+0.5%) a relative standout. 

Tesla (TSLA 475.12, +16.16, +3.52%) was a rare point of strength across mega-cap names, trading higher after reports that the company is now testing its robotaxi service in Austin, Texas, without the use of a human safety driver. 

The sector was also supported by a particularly strong day for stocks across the travel industry, including cruise lines such as Carnival (CCL 28.59, +0.97, +3.51%), hotels such as Marriott (MAR 308.52, +9.80, +3.28%), and travel services companies such as Expedia Group (EXPE 283.42, +9.21, +3.36%). 

All told, strength in the broader market saw the S&P 500 Equal Weighted Index (+0.1%) scratch out a slight gain and outperform the market-weighted S&P 500. Unlike recent sessions, however, smaller-cap stocks did not benefit from the rotational action today, as the Russell 2000 (-0.8%) and S&P Mid Cap 400 (-0.3%) both closed lower. 

On the policy front, President Trump has stated that his search for the next Fed Chairman nominee is down to National Economic Director Kevin Hassett and former Fed Governor Kevin Warsh. Mr. Hassett had been viewed as the frontrunner in recent weeks but has faced criticism over concerns that he may lack independence from President Trump.

Fed commentary echoed many of the sentiments from last week's FOMC meeting. New York Fed President John Williams (voting FOMC member) said that he expects inflation to decrease and GDP to increase over the next year, remarking that "the economy is poised to return to solid growth and price stability."

Meanwhile, Fed Governor Stephen Miran (voting FOMC member) reiterated his stance that a quicker pace of policy easing is needed to prevent further weakness in the labor market. 

Looking ahead, the market will be particularly attuned to tomorrow's release of the November Employment Situation Report, especially considering Fed Chair Powell stated at last Wednesday's FOMC meeting that there is a possibility that recent employment reports have overstated recent hiring figures. 

U.S. Treasuries began the week on a positive note, though intraday action saw a pullback from morning highs. The 2-year note yield settled down two basis points to 3.51%, and the 10-year note yield settled down one basis point to 4.18%. 

Reviewing today's data: 

• The Empire State Manufacturing Survey fell to -3.9 in December (Briefing.com consensus 10.6) from 18.7 in November.
• The NAHB Housing Market Index rose to 39 in December (Briefing.com consensus 39) from 38 in November.

Tuesday:

The stock market traded lower on a broad basis for most of the session, but late-afternoon strength in select technology and mega-cap stocks lifted the Nasdaq Composite (+0.2%), sparing the major averages from an across-the-board decline.

The S&P 500 (-0.2%) and DJIA (-0.6%) spent only a brief amount of time this morning in positive territory before retreating. Participation was weak across the market today, a stark contrast to the broad-market rotational strength seen in recent sessions of tech underperformance. The Russell 2000 (-0.3%) and S&P Mid Cap 400 (-0.5%) also underperformed in today's action.

Eight S&P 500 sectors finished lower, with losses largely modest aside from a few notable laggards. 

The energy sector (-3.0%) faced the widest loss as swelling optimism around a potential Russia-Ukraine peace deal saw oil prices fall as the market anticipates Russia's return to the global oil market. Crude oil futures settled today's session $1.53 lower (-2.7%) at $55.29 per barrel, the lowest finish since early 2021. Phillips 66 (PSX 131.77, -9.74, -6.88%) and Marathon Petroleum (MPC 176.78, -8.73, -4.71%) were among the worst-performing S&P 500 names today. 

The health care sector (-1.3%) was the other outlier, facing some pressure after outperforming in yesterday's trade. Health insurance names such as Humana (HUM 258.14, -16.60, -6.04%) and Centene (CNC 38.96, -1.49, -3.68%) were also S&P 500 laggards. NBC News reported that the House will not vote on an extension of the Affordable Care Act subsidies, which effectively guarantees that they will expire at the end of the year. 

Pfizer (PFE 25.54, -0.89, -3.37%) also had a tough session after the company reaffirmed its FY25 EPS guidance but trimmed its revenue outlook while issuing FY26 EPS guidance that came up short of analyst expectations. 

Losses were contained to 1.0% or narrower in the six other S&P 500 sectors that closed lower, with the majority seeing improvement late in the session. 

In the case of the information technology (+0.3%), consumer discretionary (+0.3%), and communication services (+0.2%) sectors, the late afternoon action could be more accurately described as a modest rally. Each sector had several forays into modestly positive territory today as a handful of mega-cap names traded higher, but a sharp move higher in the last hour or so of today's action reflected a more concentrated buy-the-dip bid effort. 

The information technology sector (+0.3%) saw its seven largest components finish higher, with Oracle (ORCL 188.56, +3.64, +1.97%) and Broadcom (AVGO 341.30, +1.49, +0.44%) finally seeing some relief from last week's post-earnings slide. 

In the consumer discretionary sector (+0.3%), Tesla (TSLA 489.88, +14.57, +3.07%) was a standout across mega-cap names for the second consecutive day, reaching an all-time high this afternoon. 

The communication services sector (+0.2%) also benefitted from strong leadership in one of its largest components, Meta Platforms (META 657.15, +9.64, +1.49%). Elsewhere in the sector, Comcast (CMCSA 29.73, +1.52, +5.39%) finished with the widest gain across mega-cap names after CNBC's David Faber said that swaps trading might indicate there is an activist investor involved. 

The Vanguard Mega Cap Growth ETF (+0.4%) ended the day with a solid gain, helping the market-weighted S&P 500 (-0.2%) outperform the S&P 500 Equal Weighted Index (-0.7%). 

The market's action over the past two sessions highlights a back-and-forth dynamic as investors search for fresh catalysts in the wake of the December FOMC meeting. Yesterday, weakness in technology and mega-cap names contrasted with broad-market strength, while today the opposite was true: tech and select mega-caps provided late-session support even as the broader market struggled. This rotation underscores a market still probing for direction as the end of the year approaches.

On the data front, the market finally received the Employment Situation report for November (64,000; Briefing.com consensus 30,000), which beat expectations by a solid margin, but it also followed the loss of 105,000 nonfarm payrolls in October. The Retail Sales report for October was released at the same time, showing no headline growth (Briefing.com consensus 0.3%) while sales excluding autos increased 0.4% (Briefing.com consensus 0.3%).

While the data was the first comprehensive look at the labor market since last week's FOMC meeting, it did little to change the market's expectations for additional easing in the near term. 

U.S. Treasuries continued their upbeat start to the week with a Tuesday advance that endured some early volatility before a finish near session highs. The 2-year note yield settled down three basis points to 3.48%, and the 10-year note yield settled down three basis points to 4.15%. 

Reviewing today's data:

• November Nonfarm Payrolls 64K (Briefing.com consensus 30K); Prior -105K,November Nonfarm Private Payrolls 69K (Briefing.com consensus 34K); Prior 52K, November Unemployment Rate 4.6% (Briefing.com consensus 4.4%); Prior 4.4%, November Avg. Hourly Earnings 0.1% (Briefing.com consensus 0.3%); Prior 0.4%, November Average Workweek 34.3 (Briefing.com consensus 34.3); Prior 34.2
  • The key takeaway from the employment report will be the bump in the official unemployment rate and the softening in the U-6 unemployment rate. Both have helped substantiate the Fed's concerns about downside risk to employment that served as the basis for the December cut.
• October Retail Sales 0.0% (Briefing.com consensus 0.3%); Prior was revised to 0.1% from 0.2%, October Retail Sales ex-auto 0.4% (Briefing.com consensus 0.3%); Prior was revised to 0.1% from 0.3%
  • The key takeaway from the report is that there were solid increases in spending across many discretionary spending categories. The notable exceptions were building material and garden equipment and supplies dealers sales (-0.9%) and food services and drinking places (-0.4%). Department store sales (+4.9%), on the other hand, had a big month along with furniture and home furnishings (+2.3%), sporting goods (+1.9%) and nonstore retailers (+1.8%).
• September Housing Starts DELAYED (Briefing.com consensus 1.320 mln); Prior 1.307 mln, September Building Permits DELAYED (Briefing.com consensus 1.348 mln); Prior 1.312 mln
  • The key takeaway from the report is the weakness in single-unit starts (-7.0% month-over-month) and single-unit permits (-2.2%), which is a reflection of affordability constraints for builders and prospective homeowners alike. Strikingly, single-unit starts in the South—the nation's largest homebuilding region—plunged 17.0% in August.
• December S&P Global U.S. Manufacturing PMI - Prelim 51.8; Prior 52.2
• December S&P Global U.S. Services PMI - Prelim 52.9; Prior 54.1
• September Business Inventories 0.2% (Briefing.com consensus 0.1%); Prior 0.0%

Wednesday:

A mid-morning sell-off across tech and mega-cap names sent the S&P 500 (-1.2%), Nasdaq Composite (-1.8%), and DJIA (-0.5%) firmly lower after early mixed action. 

The S&P 500 surrendered its 50-day moving average (6,766.98) in today's action as the market's heaviest names suffered considerable losses amid a backdrop that skewed slightly negative in the broader market. 

The information technology sector (-2.2%) retreated the furthest, facing pressure in the majority of its largest components. 

Oracle (ORCL 178.45, -10.20, -5.41%) closed with one of the widest losses, extending last week's post-earnings slide after Financial Times reported that Blue Owl Capital (OWL 15.39, -0.44, -2.78%) is no longer funding a $10 billion data center project in Michigan.

That headline also weighed heavily on power stocks such as GE Vernova (GEV 614.19, -72.03, -10.50%) and Constellation Energy (CEG 340.98, -24.64, -6.74%), as Oracle's potential funding hurdles for large-scale data center development raised concerns about delays or cancellations across the hyperscale AI infrastructure buildout, threatening expected demand growth for electricity generation, transmission, and related upgrades. The industrials sector (-1.6%) was among today's laggards as a result. 

Elsewhere in the information technology sector, Advanced Micro Devices (AMD 198.11, -11.06, -5.29%) also extended post-earnings losses amid a tough day for chipmakers. Micron (MU 225.71, -6.80, -2.93%), which reports its earnings after the close, and NVIDIA (NVDA 170.94, -6.78, -3.81%) also struggled and contributed to a 3.8% slide in the PHLX Semiconductor Index. 

Weakness in the AI trade saw Alphabet (GOOG 298.06, -9.67, -3.14%) add to its week-to-date losses, sending the communication services sector (-1.9%) near the bottom of today's leaderboard. 

Elsewhere in the sector, Warner Bros. Discovery's (WBD 28.21, -0.69, -2.39%) Board of Directors unanimously recommended that shareholders reject Paramount Skydance's (PSKY 13.10, -0.75, -5.42%) hostile takeover bid, noting that they do not find it provides superior value to Netflix's (NFLX 94.79, +0.22, +0.23%) offer. Nonetheless, Paramount affirmed its commitment to acquiring Warner Bros. Discovery despite the recommendation.

The consumer discretionary sector (-1.2%) rounds out the four S&P 500 sectors that closed with a loss of 1.0% or wider. Tesla (TSLA 467.26, -22.62, -4.62%) was a laggard across mega-cap names, which faced considerable weakness today, while Lennar (LEN 112.23, -5.34, -4.54%) and other homebuilders moved lower after the company missed EPS estimates. 

Meanwhile, four S&P 500 sectors managed to notch gains, though they were modest with the exception of the energy sector (+2.2%). 

The sector slid 3.0% in yesterday's trade as the price of oil fell 2.7% amid growing optimism around a Russia-Ukraine peace deal, which would likely result in Russia's return to the already oversupplied global oil market. Crude oil futures settled today's session $0.51 higher (+0.9%) at $55.80 per barrel, with the bump largely attributed to President Trump's orders for a blockade of sanctioned tankers entering and leaving Venezuela.

The consumer staples (+0.5%), materials (+0.4%), and real estate (+0.3%) sectors also finished higher. The financials sector finished flat.

Outside of the S&P 500, the small-cap Russell 2000 (-1.1%) and S&P Mid Cap 400 (-0.5%) moved into negative territory for the month with today's losses.

Ultimately, today's action highlights the recent choppiness in the market. While a late-session rally in tech and mega-cap names helped the major averages finish mixed yesterday, a larger pullback this morning pushed the indices lower.

Oracle's potential funding issues tied to its Michigan data center have reignited concerns about the timing and reliability of investment returns on large-scale AI buildouts, sending many of the market's largest names lower. The Vanguard Mega Cap Growth ETF, which tracks these mega-cap stocks, closed 1.9% lower, underscoring how such a wide loss among the market's heaviest weights makes it nearly impossible for the major averages to notch gains. 

U.S. Treasuries ended a subdued Wednesday session with slim losses across the curve. The 2-year note yield settled up one basis point to 3.49%, and the 10-year note yield finished unchanged at 4.15%.

Reviewing today's data:

• The weekly MBA Mortgage Index fell 3.8% to follow last week's 4.8% increase. The Purchase Index was down 2.8% while the Refinance Index fell 3.6%.

Thursday:

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%. 

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.

Friday:

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.