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All three main U.S. equity indexes opened in the green but struggled to hold gains during a mixed trading session on Wednesday. Still, the Dow Jones Industrial Average and the S&P 500 set new all-time intraday highs before slipping into the red, and the Nasdaq Composite is rising on breadth expansion and sector rotation.
One big name was a big winner and another big name was a big loser, but health care stocks still managed to join communication services and tech stocks in positive territory.
Consumer discretionary faded late, and energy stocks reflect a market still digesting President Donald Trump’s major move to reestablish U.S. hegemony in the Western Hemisphere through an updated Monroe Doctrine focused on oil reserves purportedly held by Venezuela.
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Utility stocks and materials were lower, too, after posting notable gains earlier in the week. Financial stocks retreated, as well, with sector leader JPMorgan Chase (JPM, -2.3%) among the notable names scheduled to report earnings next week.
The economic calendar is once more a source of timely government-collected data. This week, it’s highlighted by the Friday 8:30 am Eastern Standard Time release of the December jobs report.
In the interim, the ADP National Employment Report showed private firms added 41,000 jobs last month. And the Job Openings and Labor Turnover Survey (JOLTS) from the Bureau of Labor Statistics indicated job openings, hires and separations were little changed in November.
“The labor market has cooled a little since the summer,” observes Guy Berger, the workforce economist in residence at Guild, who notes that the unemployment rate has increased and hiring is a little lower than it was a few months ago. “But we don’t have more precision than that,” he adds. “It’d be nice to have more data to prove (or disprove) it. And on Friday, we’re getting that data!”
By Wednesday’s closing bell, the Dow Jones Industrial Average was off 0.9% to 48,996, despite reaching a fresh peak early in the session. The S&P 500, meanwhile, had shed 0.3% to 6,902, also setting another new all-time intraday high in the process.
The Nasdaq Composite held on for a 0.2% gain to 23,584, rising for a third straight session even as sectors other than tech continue to show some leadership.
UNH vs AMGN
UnitedHealth Group (UNH, -2.1%) was No. 25 among Dow Jones stocks today, even as No. 1 Amgen (AMGN, +3.5%) tried to lead the price-weighted index to the upside.
The health insurance and care provider joined with other high-priced stocks such as Goldman Sachs (GS, -1.6%) and Caterpillar (CAT, -4.3%), which at $900-plus and $600-plus account for its heaviest weightings, to drag the Dow back into the red after it set new all-time closing highs on Monday and Tuesday. UNH, the No. 7 Dow stock by weighting, closed at $341.81.
Meanwhile, analyst Mike Yee assumed coverage of AMGN at UBS by raising the firm’s rating on the biotech stock to Buy from Neutral (or Hold) and upping the 12-month target price to $380 from $317.
In a January 6 note, Yee cites potential earnings upside from Amgen’s MariTide obesity drug and its lipoprotein therapy to address stroke and heart attack risk. The treatments are each in Phase III trials and “both of which should come to market and drive growth to the end of the decade.”
Is President Trump bad for beer sales?
Constellation Brands (STZ, -2.1%), facing a particular set of challenging circumstances among consumer staples stocks, is scheduled to report fiscal 2026 third-quarter earnings after Wednesday’s closing bell.
Jefferies analyst Kaumil Gajrawala downgraded STZ from Buy to Hold and reduced his 12-month target price from $170 to $154 last month, noting that headwinds for Hispanic consumers due to the Trump administration’s immigration policy “appear more prolonged than expected.”
Results of a recent immigration survey conducted by KFF and The New York Times suggest a delayed recovery, and the analyst lowered his fiscal year 2026 sales and earnings forecast.
“Immigration policy has led to a notable shift in behavioral patterns,” Gajrawala writes, “with 41% of Hispanic respondents avoiding away-from-home activities.” As Gajrawala explains, Hispanic consumers represent greater than 40% of sales for Constellation’s beer portfolio.
