Weekly Market Recap:

This week, U.S. equities experienced declines across major indices. The Dow (-1.86%), S&P 500 (-1.94%), Nasdaq (-2.34%), and Russell 2000 (-3.49%) all ended lower, reversing recent gains. Outperformers included airlines, drug stores, energy, and apparel manufacturers. Key laggards were media, China tech, homebuilders, fund managers, and semiconductors. Treasuries weakened with the yield curve steepening. The dollar index rose +0.7%, marking its 14th increase in 15 weeks. Gold gained +2.3%, WTI crude climbed +3.5%, while Bitcoin dropped -4%.

Corporate Highlights:

• Delta Air Lines (DAL +13.5%): Beat estimates and issued strong guidance, driven by better supply-demand dynamics.

• Walgreens Boots Alliance (WBA +23.8%): Reported robust U.S. Healthcare and International results, reaffirming FY25 guidance.

• Constellation Brands (STZ -18.1%): Missed expectations and lowered guidance, citing softer consumer spending.

• NVIDIA (NVDA -5.9%): Offered updates at CES but failed to boost sentiment amid valuation concerns.

• Stryker (SYK +1.2%): Announced a $4.9B acquisition of NARI (+59.3%).

Sector Performance:

Energy (+0.90%) and Healthcare (+0.52%) outperformed, while Real Estate (-4.10%), Tech (-3.10%), and Financials (-2.71%) were the largest underperformers.

The ongoing debate surrounding TikTok’s future in the United States has taken an intriguing turn with Kevin O’Leary, renowned investor and "Shark Tank" star, leading a consortium willing to bid up to $20 billion for the platform. This move, in collaboration with billionaire Frank McCourt Jr., offers a potential resolution to the national security concerns that have placed TikTok’s fate in the hands of the Supreme Court. O’Leary’s group proposes acquiring TikTok without its algorithm, a bold strategy aimed at preserving the platform’s operations for its 170 million U.S. users. While the Supreme Court considers a law requiring TikTok to be sold or banned by January 19, the consortium’s offer highlights the bipartisan effort to keep the app accessible. McCourt mphasized the importance of ensuring TikTok’s longevity while addressing concerns over data security. Critics argue that banning TikTok could set dangerous precedents for free speech and government intervention in technology. Meanwhile, ByteDance, TikTok’s parent company, remains resistant to a forced sale, citing logistical and legal barriers. However, O’Leary contends that divestiture aligns with ByteDance’s financial interests, as a ban could wipe out $30 to $40 billion in shareholder value. This saga encapsulates the intersection of technology, politics, and global economics. O’Leary’s syndicate represents an ambitious attempt to balance innovation and national security while preserving a platform that has reshaped digital content creation. The outcome of this high-stakes battle will have far-reaching implications for the tech industry and the global digital landscape.

Next Week:

Notable Earnings

• Monday (1/13)

  • ServiceTitan Inc. Cl A ($TTN)

• Tuesday (1/14)

  • Applied Digital Corp. ($APLD)

• Wednesday (1/15)

  • JPMorgan and Chase & Co. ($JPM)

  • Wells Fargo & Co. ($WFC)

  • BlackRock Inc. ($BLK)

• Thursday (1/16)

  • UnitedHealth Group Inc. ($UNH)

  • M&T Bank Corp. ($MTB)

  • Bank of America Corp. ($BAC)

• Friday (1/17)

  • Truist Financial Corp. ($TFC)

  • Citizens Financial Group Inc. ($CFG)

  • Webster Financial Corp. ($WBS)

Notable Ex-Dividend Dates

• Monday (1/13)

  • Universal Corp. ($UVV) 6.22%*

  • Hormel Foods Corp. ($HRL) 3.69%*

• Tuesday (1/14)

  • American Financial Group ($AGG) 2.33%

  • Quest Diagnostics Incorporated ($DGX) 1.85%

• Wednesday (1/15)

  • AbbVie Inc. ($ABBV) 3.46%)*

  • Quest Diagnostics ($DGX) 1.85%

• Thursday (1/16)

  • Accenture PLC ($ACN) 1.70%

  • Commercial Metals Co. ($CMC) 1.44%

• Friday (1/17)

  • Williams-Sonoma Inc. ($WSM) 1.21%

*Dividend Aristocrat