Market Summary - January 09, 2026

Mid-Morning Look

On January 9, 2026, U.S. stock markets opened higher, continuing to extend gains following the release of the nonfarm payrolls jobs report, which came in largely as expected. The unemployment rate decreased to 4.4%, prompting a rise in stock prices and treasury yields, with the 10-year yield reaching 4.211%, the highest since early September. The dollar strengthened for the fourth consecutive day, while the Japanese Yen weakened to above the 158-handle.

Key Economic Indicators

• U.S. payrolls increased by 50,000 in December, slightly below the expected 60,000.
• The unemployment rate fell to 4.4%, down from 4.6% and below the estimated 4.5%.
• Average hourly earnings for December rose by 0.3%, matching expectations.
• Housing starts for October fell by 4.6% to a rate of 1.246 million units, below the consensus of 1.330 million.
• Consumer sentiment, as measured by the University of Michigan, improved to a preliminary January reading of 54.0, above the consensus of 53.5.

Sector Movements

Several sectors experienced significant movements due to recent news:

• Mortgage/Housing: President Trump announced a directive to purchase $200 billion in mortgage-backed securities (MBS) to lower housing costs and mortgage rates. This news positively impacted shares of mortgage lenders and REITs.
• Nuclear/Utility: META entered into 20-year agreements to purchase power from three Vistra nuclear plants, boosting shares in the nuclear sector.
• Healthcare Technology: Truist upgraded several healthcare technology stocks, indicating a positive outlook for the sector.
• Transports: Bank of America upgraded shares of FedEx and UPS, citing expected demand growth from infrastructure investments.

Stock Performances

Gainers

• ARDX: +12% after an upgrade and strong guidance.
• CLF: +6% following an upgrade due to a transformational opportunity.
• KALV: +16% after exceeding revenue expectations.
• LDI: +20% in response to the MBS purchase announcement.
• LUV: +4% after a double upgrade based on EPS potential.

Losers

• AQST: -35% after receiving an FDA letter indicating deficiencies in its application.
• GM: -2% due to a $6 billion charge related to EV investments.
• HIMS: -4% following competition from Amazon Pharmacy.
• LUNR: -5% after a downgrade amid contract uncertainties.
• OLN: -5% after cutting Q4 EBITDA guidance.

Conclusion

The market's positive response to the jobs report and strategic announcements from key sectors indicates a cautiously optimistic outlook for the economy. Investors are closely monitoring the implications of government actions on housing and energy sectors, as well as the overall economic indicators as they unfold.