Stock Market Update

[BRIEFING.COM] The stock market has seen relatively subdued action today, with the S&P 500 (-0.3%), Nasdaq Composite (-0.1%), and DJIA (-0.6%) drifting modestly lower. 

Although this morning's December CPI (0.3%; Briefing.com consensus: 0.3%) and Core CPI (0.2%; Briefing.com consensus: 0.3%) gave equity futures a modest lift—thanks to the core figure coming in slightly better than expected—the data didn't alter the market's expectations for Fed easing in 2026 and have had little impact on stocks today. 

Sector strength has been a mixed bag in response, with several sectors oscillating between modestly positive and modestly negative territory. 

The financials sector (-1.8%) has underperformed from the open, facing pressure in its banking names after JPMorgan Chase's (JPM 313.12, -11.37, -3.50%) earnings report.  The company missed on GAAP EPS, although adjusted EPS came in better than expected. Revenue increased 7.1% year-over-year to $45.8 billion, which was slightly below analyst expectations.

Credit card names such as Visa (V 328.00, -15.20, -4.43%) and Mastercard (MA 540.83, -25.45, -4.49%) continue to post wide losses following President Trump's call for a one-year 10% cap on credit card interest rates. 

Elsewhere, the health care sector (-0.6%) also sees an extension of yesterday's weakness, while the consumer discretionary (-0.5%) and real estate (-0.5%) sectors hold similar losses. 

The information technology sector (-0.1%) has seen some back-and-forth action today, spurring session highs and lows across the major averages as it has spent time both well above and well below its current level. 

Select chipmakers, including NVIDIA (NVDA 186.34, +1.40, +0.75%), help the PHLX Semiconductor Index gain 1.5% today.  Intel (INTC 47.77, +3.71, +8.42%) and Advanced Micro Devices (AMD 221.08, +13.40, +6.45%) are outperformers after KeyBanc Capital Markets upgraded both stocks to Overweight from Sector Weight. 

Meanwhile, the energy sector (+1.5%) maintains the top position on the leaderboard as the price of oil increases $1.55 (+2.6%) to $61.05 per barrel. Geopolitical tensions in Iran contribute to the surge in oil prices, with President Trump announcing via Truth Social that he has cancelled all meetings with Iranian officials while protesters "take over your institutions."

Solid gains across aerospace and defense names such as Boeing (BA 245.42, +5.61, +2.34%) and Huntington Ingalls (HII 411.85, +13.60, +3.41%) help the industrials sector (+0.4%) trade modestly higher despite Delta Air Lines (DAL 69.06, -1.97, -2.77%) lagging after a cautious 2026 EPS outlook overshadowed a Q4 beat. 

Outside of the S&P 500, the Russell 2000 (+0.2%) and S&P Mid Cap 400 (+0.2%) continue to outperform their larger-cap counterparts.

While this morning's inflation readings and earnings releases brought with them the promise of a consequential session, there were few surprises among the releases, leaving the market to drift slightly lower from yesterday's record highs. 

Reviewing today's data:

• December NFIB Small Business Optimism 99.5; Prior 99.0
• December CPI 0.3% (Briefing.com consensus 0.3%); Prior 0.2%, December Core CPI 0.2% (Briefing.com consensus 0.3%); Prior 0.2%
  • The key takeaway from the report is that core CPI was a touch cooler than expected, which prevented the year-over-year rate from rising. While this is a small victory, it is a welcome sight for a market that hopes to see some more future disinflation that would encourage the Fed to keep cutting rates.
• October New Home Sales 737K; Prior 738K
  • The key takeaway from the report is that the South region—the nation's largest housing sector—was the sole source of strength in October. Home sales declined in all other regions, with higher home prices, on average, acting as a headwind.
• September New Home Sales 738K (Briefing.com consensus 710K); Prior was revised to 711K from 800K