Opening Comment — Friday, January 09, 2026
DJIA: 49,266.11, up 270.03
S&P 500: 6,921.46, up 0.53
NASDAQ: 23,480.02, down 104.26
Stocks higher ahead of jobs report
Stock futures are mostly higher Friday morning ahead of today’s release of the December jobs report. Investors will also be looking for the preliminary January reading of consumer sentiment from the University of Michigan and housing starts data. As of 7:19 AM ET, the Dow is little changed, while the S&P 500 is up 0.1%. The Nasdaq 100 is increasing 0.2% relative to fair value on the GLOBEX.
U.S. equities were mixed on Thursday as jobs cuts declined year-over-year (YOY) in December and jobless claims ticked up, while third-quarter nonfarm productivity accelerated from the prior quarter and unit labor costs fell. The U.S. trade deficit unexpectedly narrowed, and consumer credit showed a smaller-than-expected increase in November. The Dow was up 0.6%, while the tech-heavy Nasdaq Composite fell 0.4%. The S&P 500 was little changed with nine of 11 sectors finishing in positive territory. The Energy sector was the top performer, rising 3.2%, while the Information Technology sector was the bottom performer, falling 1.5%.
Technical Analysis
As of midday Thursday, the S&P 500 Index is still in an uptrend, with support at the 50-day and 200-day moving averages (6817 and 6317, respectively) and resistance at around 7000.
On the data front, December’s nonfarm payrolls are expected to expand by 70,000 versus the prior month’s 64,000, while manufacturing payrolls are projected to fall by 5,000, similar to the prior month’s decrease. Average hourly earnings are projected to rise 0.3% month-over-month (MOM) and 3.6% YOY for December, compared to the prior month’s increases of 0.1% and 3.5%, respectively. Meanwhile, the unemployment rate is expected to edge down to 4.5% in December from the prior month’s 4.6%, while the labor force participation rate is forecasted to ease to 62.4% from the prior month’s 62.5%. Housing starts are expected to have been an annualized 1.33 million in October, corresponding to an increase of 1.8% MOM. The preliminary reading of October building permits is expected to come in at an annualized 1.35 million, corresponding to an increase of 1.5% MOM. The University of Michigan’s preliminary January reading of consumer sentiment is forecasted to come in at 53.5, higher than the prior month’s 52.9. The one- and 5-10-year inflation expectations for January from the University of Michigan are expected to come in at 4.1% and 3.3%, respectively, compared to the prior month’s 4.2% and 3.2%, respectively. The Federal Reserve’s (Fed’s) measure of the household change in net worth for the third quarter is scheduled for release.
Across the pond, European stocks are mostly higher in mid-day trading as Germany’s industrial production for November rose unexpectedly, climbing 0.8% both MOM and YOY. The country’s trade surplus narrowed more than expected in November as exports fell more than projected and imports exceeded forecasts. Meanwhile, France’s industrial production for November registered a smaller-than-expected decline of 0.1% MOM, while rising 2.1% YOY, beating forecasts. The eurozone’s retail sales rose more than expected in November, rising by 0.2% MOM and 2.3% YOY.
Overnight in Asia, stocks were mixed as China’s Consumer Price Index (CPI) accelerated to 0.8% YOY in December, while the Producer Price Index (PPI) posted a smaller-than-expected decline of 1.9% YOY. Meanwhile, Japan’s preliminary composite leading index ticked up and the country’s household spending unexpectedly increased in November, rising by 2.9% YOY.
In FOREX trading, the U.S. dollar is slightly higher ahead of today’s U.S. jobs report and consumer sentiment data.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 0.8% higher at $58.24/barrel, supported by geopolitical instability.
In the metals complex, gold is 0.1% lower at $4,473.43/ounce following a strengthening U.S. dollar.