Stocks Finish Slightly Lower as Bond Yields Climb

Economic Indicators - December manufacturing production unexpectedly rose by +0.2% month-over-month, contrary to expectations of a -0.1% decline [3] - November manufacturing production was revised upward to +0.3% month-over-month from previously reported unchanged [3] - The January NAHB housing market index unexpectedly fell -2 to 37, weaker than expectations of an increase to 40 [3] Stock Market Performance - The first full week of Q4 earnings season saw 89% of the 28 S&P 500 companies that reported beating expectations, with S&P earnings growth expected to climb by +8.4% in Q4 [2] - The S&P 500 Index closed down -0.06%, the Dow Jones Industrials Index down -0.17%, and the Nasdaq 100 Index down -0.07% [6] - Overseas stock markets also settled lower, with the Euro Stoxx 50 down -0.19%, China's Shanghai Composite down -0.26%, and Japan's Nikkei Stock 225 down -0.32% [7] Sector Movements - Chip makers and data storage companies saw gains due to optimism for AI spending, with TSMC boosting its 2026 capital expenditure forecast [4][12] - Super Micro Computer closed up more than +10%, Micron Technology closed up more than +7%, and other notable gainers included Applied Materials, Lam Research, and Broadcom, all closing up more than +2% [12] - Power supply companies faced pressure, with Talen Energy down more than -11% and Constellation Energy down more than -9% due to President Trump's push for an emergency wholesale electricity auction [13] Company-Specific News - State Street closed down more than -5% despite better-than-expected Q4 EPS, citing a forecast of full-year expenses up 3% to 4% [14] - Mosaic closed down more than -4% after estimating a -20% year-over-year decline in North American phosphate market shipments for Q4 [14] - Rocket Lab Corp closed up more than +6% after an upgrade from Morgan Stanley, while Eaton Corp and PNC Financial Services Group also saw gains following upgrades and positive earnings reports [17][18]