Market Summary - January 07, 2026

Market Overview

On January 7, 2026, the stock market opened with a cautious tone following a record closing high for the S&P 500, Dow Transports, and Dow Jones Industrials. The DJ Industrials fell by 212.46 points (0.44%) to 49,246, while the S&P 500 decreased by 2.73 points (0.04%) to 6,942. The Nasdaq, however, saw a slight increase of 57.56 points (0.25%) to 23,605, while the Russell 2000 dropped by 10.24 points (0.40%) to 2,572.

Economic Data

Investors were digesting mixed economic data:

• The ADP national employment report indicated an increase of 41,000 private sector jobs in December, slightly below the expected 50,000.
• JOLTS job openings fell to 7.146 million in November, below the consensus of 7.600 million.
• The ISM Services Index rose to 54.4 in December, surpassing the consensus of 52.2, indicating growth in the non-manufacturing sector.
• U.S. factory orders declined by 1.3% in October, worse than the expected decline of 1.1%.

Oil and Energy News

Energy Secretary Chris Wright announced plans to revive Venezuelan oil production, aiming to facilitate U.S. oil companies' entry into the country. President Trump stated that a deal was reached to export up to $2 billion worth of Venezuelan crude to the U.S., with Venezuela expected to turn over between 30 million and 50 million barrels of sanctioned oil.

Sector Movements

Various sectors experienced notable movements:

• Oil refiners and services surged following the announcement regarding Venezuelan oil.
• In the security software sector, several companies were downgraded due to increased competition and slowing demand.
• Transportation stocks were reviewed, with a preference shift towards LTL and IMC over Rails.
• Footwear stocks saw downgrades due to concerns over discounting and tariff pressures.
• Broadline and hardline retail sectors were upgraded, anticipating improvements in discretionary goods demand.

Stock Performers

Gainers

• CRML: +11% after discussions regarding Greenland acquisition.
• GLUE: +39% following positive interim phase 1 data.
• INTC: +9% as a notable outperformer in the semiconductor index.
• MBLY: +9% on acquisition news.
• REGN: +2% after a double upgrade from Bank of America.

Losers

• APOG: -13% after mixed results and lowered guidance.
• ARWR: -6% due to a public offering announcement.
• ASTS: -8% after a downgrade from Scotiabank.
• FSLR: -7% following a downgrade due to limited visibility.
• SWKS: -11% as a notable decliner in the semiconductor sector.

Conclusion

The market exhibited a cautious approach as investors awaited further economic indicators, particularly the upcoming nonfarm payrolls report. The mixed economic data and geopolitical developments, especially concerning Venezuelan oil, influenced market sentiment and sector performance.