Markets Kick Off the New Month and Quarter 01/07/2026

 HOT stories for today

Market wrap:

• U.S. stocks extended their gains Tuesday, with all three major indexes finishing higher and capping a strong first half of 2026. The Dow Jones Industrial Average added 136.46 points, or 0.26%, while the S&P 500 advanced 0.79%. The Nasdaq Composite outperformed, climbing 1.52% as chipmakers and AI-related stocks continued to lead the market higher. For the first six months of the year, the Dow gained 8.9%, marking its strongest first-half performance since 2021. The S&P 500 rose 9.6%, while the Nasdaq added 12.8%. Small-cap stocks also outperformed, with the Russell 2000 surging nearly 22% for its best first-half return since 1991. Semiconductor stocks remained a key driver of the rally, extending a powerful second-quarter advance fueled by continued optimism around artificial intelligence. A record rally in the sector added roughly $2 trillion in combined market value to chipmakers including Micron, Intel and Advanced Micro Devices during the quarter. In commodities, oil prices rebounded Wednesday after Brent crude posted its steepest monthly decline since March 2020. Brent futures rose 0.52% to $73.33 a barrel, while U.S. West Texas Intermediate gained 0.66% to $69.96. Meanwhile, gold and silver remained under pressure as investors continued to reduce exposure to precious metals amid uncertainty over the interest-rate outlook. 
• Investors now turn their attention to Federal Reserve Chair Kevin Warsh, who is scheduled to speak Wednesday at the European Central Bank Forum on Central Banking in Sintra, Portugal. Markets will be looking for fresh clues on the Fed's policy outlook as officials continue balancing persistent inflation risks against signs of moderating economic growth. Wednesday's economic calendar also features several key releases, including the June ADP employment report, the ISM Manufacturing PMI and the final global manufacturing PMI readings, all of which could provide further insight into the health of the U.S. economy and the path of monetary policy.

Nike Posts Earnings Beat, China Sales Fall

• Nike reported quarterly earnings and revenue that topped Wall Street expectations, but weakness in China and pressure on global consumers kept investors cautious. The athletic apparel giant posted adjusted earnings of 20 cents per share on revenue of $10.97 billion, beating analyst estimates of 13 cents per share and $10.86 billion in revenue, according to LSEG. Shares initially fell as much as 8% in after-hours trading before recovering some of those losses, as investors focused on a 12% decline in Greater China sales, one of Nike’s key growth markets. Revenue in the region fell to $1.30 billion, though it still came in ahead of Wall Street expectations. Nike’s North America revenue rose 3% to $4.83 billion, slightly missing analyst estimates.
• The company said global consumers remain under pressure, with weakness particularly visible in sportswear, where sales declined by a double-digit percentage during the quarter. Gross margin jumped 8.9%, helped by an expected tariff refund of nearly $986 million after the Supreme Court struck down many of President Donald Trump’s global duties. The refund added 52 cents to quarterly earnings per share, though analysts excluded the gain from adjusted estimates. CEO Elliott Hill said Nike remains committed to rebuilding momentum in China, but acknowledged that results are not yet where the company wants them to be, especially in Nike Sportswear and Jordan streetwear. Nike reiterated its near-term outlook, expecting earnings to remain roughly flat through the first two quarters of fiscal 2027. The results come as the company continues its turnaround effort, following layoffs, leadership changes and broader macroeconomic uncertainty.

Stocks on the move:

• SolarEdge (SEDG): Shares jumped 7% after Reuters reported that the Trump administration is working on a potential ban on imports of foreign inverters. Enphase Energy (ENPH) also rose 2% on the news.
• Air Products and Chemicals (APD): Shares climbed more than 8% after the industrial gases company said it will not move forward with its Louisiana Clean Energy Complex, citing expected financial returns that did not meet its criteria. The company expects to record up to $2.9 billion in pretax charges in the fiscal third quarter.
• Strategy (MSTR): Shares fell roughly 7%, giving back part of Monday’s sharp rally. The crypto-linked stock jumped 22.6% in the previous session, snapping an eight-day losing streak, while Bitcoin also declined more than 3% to trade near $58,430.
• Sellas Life Sciences (SLS): Shares reversed earlier gains and fell 4% after rallying nearly 25% on Monday. The move followed the company’s disclosure of changes to employment agreements with several C-suite executives, including severance benefits, fueling speculation about a potential takeover.

Watchlist: GIS, MU, SNDK, MRVL, AAPL, TSLA, MSTR, UNF, AMD

Key Economic Events Today:

EST time

08:15 am: USD ADP Non-Farm Employment Change
09:00 am: USD Fed Chair Warsh Speaks
09:45 am: USD Final Manufacturing PMI
10:00 am: USD ISM Manufacturing PMI, Prices
10:00 am: USD Construction Spending
10:30 am: USD Crude Oil Inventories


Earnings


BMO (Before Market Open): General Mills (GIS), FactSet Research (FDS), MSC Industrial Direct (MSM), Unifirst Corp (UNF)

AMC (After Market Close): Greenbrier Companies (GBX)


The TEFS Analyst team wishes you a successful day!