New York, January 5, 2026 — Wall Street kicked off 2026 with a mixed bag Friday, as gains in tech—particularly semiconductor and artificial intelligence stocks—were offset by broader weekly declines. It’s a familiar story: optimism about the future battling current economic realities.
The Dow Jones Industrial Average edged down 0.7%, while the benchmark S&P 500 fell 1%, and the tech-heavy Nasdaq Composite lost 1.5%. The Russell 2000, tracking smaller companies, also dipped, declining 1%.
What Investors Need to Watch This Week
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The first full week of 2026 brings a flurry of economic data, with the jobs report taking center stage.
- Investors will be closely watching the monthly jobs data, expected to show a slowdown in hiring.
- The ISM manufacturing and services PMIs will offer insights into economic activity.
- CES 2026 in Las Vegas will be a hotbed for tech announcements, especially in AI.
- AMD is poised for a potential rally following its CES keynote.
- Cal-Maine Foods faces a challenging earnings report amid industry headwinds.
The economic calendar is packed. Economists predict nonfarm payrolls grew by 54,000 in December, a decrease from 67,000 in the prior month. The unemployment rate is forecast to tick down to 4.5% from 4.6%. Beyond jobs, the ISM manufacturing and services Purchasing Managers’ Indexes (PMIs) will provide crucial signals about the health of the manufacturing and service sectors.
Corporate earnings are relatively quiet this week, with Constellation Brands, Jefferies Financial Group, Albertsons, and Applied Digital among those reporting.
Meanwhile, all eyes will be on the Consumer Electronics Show (CES) in Las Vegas. Tech giants like Nvidia, Intel, Qualcomm, Meta Platforms, Samsung, LG, Sony, and Motorola are expected to unveil their latest innovations, with a heavy focus on artificial intelligence.
Stock to Buy: Advanced Micro Devices
Advanced Micro Devices (AMD) looks like a compelling buy this week, fueled by the anticipation surrounding CES 2026. CEO Dr. Lisa Su is scheduled to deliver a keynote address on Monday at 6:30 PM PT (9:30 PM ET).
Su is expected to detail AMD’s AI strategy across cloud, enterprise, edge, and device applications, potentially showcasing advancements in AI chips and related technologies. Historically, AMD shares have tended to rally during and after major product presentations, often attracting analyst upgrades. Currently, analysts rate AMD a Strong Buy, with 40 Buy recommendations and 11 Hold recommendations, suggesting a 26.5% upside for 2026. TD Cowen recently named AMD a top AI pick, setting a $290 price target.
AMD’s growth is driven by its expanding AI product portfolio, including the MI300 series accelerators, which are gaining ground against competitors like Nvidia. Shares closed Friday at $223.47, demonstrating resilience after rebounding from mid-2025 lows around $150. Strong trading volume supports this upward trend. A successful keynote—featuring new partnerships or product roadmaps—could propel AMD toward its 52-week high near $270.
Stock to Sell: Cal-Maine Foods
Cal-Maine Foods, currently trading at $78.47—near its 52-week low—faces a challenging week. Wall Street anticipates a weak earnings report due to rising feed costs, supply chain disruptions, and fluctuating demand.
The largest U.S. producer and distributor of shell eggs is scheduled to release its fiscal second-quarter results before the market opens on Wednesday at 6:00 AM ET, followed by a conference call at 9:00 AM ET. Analysts expect earnings of $2.08 per share, a significant drop from $4.47 in the same period last year. Revenue is projected to decline 14.7% year-over-year to $814.2 million, impacted by volatile egg prices and potential disruptions from avian flu outbreaks.
Looking ahead, the company’s guidance is expected to reflect continued uncertainty surrounding production and cost stabilization. Technically, CALM has broken through key support levels, and declining volume suggests waning investor interest. While the one-year target price is $95.50, the risks associated with a disappointing report outweigh potential gains.
Given the potential for underwhelming results and guidance, Cal-Maine Foods is a sell this week to avoid event-driven volatility.
Disclosure: This is not financial advice. Always conduct your own research.
At the time of writing, I am long on the S&P 500, and the via the , and the ETF. I am also long on the Technology Select Sector SPDR ETF. I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic environment and companies’ financials.
The views discussed in this article are solely the opinion of the author and should not be taken as investment advice.
Follow Jesse Cohen on X/Twitter @JesseCohenInv for more stock market analysis and insight.
