Wall Street’s main indexes ended mostly higher on Friday, the first trading day of 2026, powered by gains in semiconductor names and AI-related stocks. Even so, all three indexes posted modest declines for the week.
Source: Investing.com
The 30-stock Dow Jones Industrial Average dipped 0.7%, the benchmark declined 1%, while the tech-heavy Nasdaq Composite lost 1.5% and the small-cap Russell 2000 fell 1%.
The first full trading week of the new year is expected to be an eventful one as the monthly jobs data headlines a busy start to 2026 for investors. The Street is expecting nonfarm job growth of 54K for the month, down from 67K in December. The unemployment rate is seen falling to 4.5% from 4.6%. In addition, the ISM manufacturing and services PMIs will also be closely watched.
Source: Investing.com
Elsewhere, on the earnings docket, there are just a handful of corporate results due, including Constellation Brands, , Jefferies Financial Group, Albertsons, and Applied Digital.
Meanwhile, investors in the tech and consumer sectors will have their eyes on the CES conference in Las Vegas. Notable companies to watch for product announcements, strategy reveals, or AI updates include Nvidia, , Intel, Qualcomm, Meta Platforms, Samsung, LG, Sony, and Motorola.
Regardless of which direction the market goes, below I highlight one stock likely to be in demand and another which could see fresh downside. Remember though, my timeframe is just for the week ahead, Monday, January 5 – Friday, Jan. 9.
Stock to Buy: Advanced Micro Devices
AMD stands out as a compelling buy this week, with the upcoming 2026 Consumer Electronics Show (CES) serving as a major catalyst. The key event is CEO Dr. Lisa Su’s opening keynote at CES 2026, scheduled for Monday at 6:30PM PT (9:30PM ET).
Su is expected to outline AMD’s vision for AI solutions spanning cloud, enterprise, edge, and devices, potentially unveiling fresh progress on AI chips and related technologies. AMD shares tend to rally during the week of its major product presentations. The semiconductor giant has a has a strong track record of receiving several analyst upgrades following its product launches.
Source: Investing.com
Analysts are optimistic, with a consensus Strong Buy rating based on 40 Buy and 11 Hold recommendations, implying a 26.5% upside potential for 2026. TD Cowen recently highlighted AMD as one of its top AI picks, with a $290 price target.
Fundamentally, AMD’s growth is underpinned by its AI product lineup, including the MI300 series accelerators, which are gaining traction against competitors like Nvidia.
Source: Investing.com
AMD shares ended Friday’s session at $223.47. Technically, the stock has shown resilience, rebounding from mid-2025 lows around $150 to current levels, with strong volume supporting the uptrend. If the keynote delivers on hype—such as new partnerships or product roadmaps—AMD could test its 52-week high near $270 soon.
As InvestingPro points out, AMD sports a Financial Health Score of 2.98 (“GOOD”), reflecting a strong balance sheet and operating momentum thanks to the buzz around its next-gen AI products.
Be sure to check out InvestingPro to stay in sync with the market trend and what it means for your trading. Tap here and save 55% on all plans as part of our New Year’s sale!
Stock to Sell: Cal-Maine Foods
In contrast, Cal-Maine Foods enters the week at $78.47—perched right near its 52-week low—with Wall Street bracing for a weak earnings report and dour outlook due to a combination of unfavorable factors, including rising feed costs, supply chain disruptions, and fluctuating demand.
The largest U.S. producer and distributor of shell eggs is scheduled to report its fiscal second-quarter update before the stock market opens on Wednesday at 6:00AM ET, followed by a conference call at 9:00AM ET.
Source: InvestingPro
Cal-Maine is seen earning $2.08 per share, tumbling 53.5% from EPS of $4.47 in the year-ago period due to elevated input costs and volatile demand patterns. Revenue is forecast to decline 14.7% year-over-year to $814.2 million amid ongoing volatility in egg prices and potential impacts from avian flu outbreaks, which have disrupted supply chains in recent quarters.
Looking ahead, the company’s guidance for future quarters is expected to reflect continued uncertainty around production normalization and cost stabilization, creating additional headwinds for investor confidence and stock performance.
Source: Investing.com
Technically, CALM has broken below key support levels, with declining volume signaling waning investor interest. The one-year target price of $95.50 suggests limited upside, but risks from a disappointing report outweigh this.
Given the potential for underwhelming results and guidance, CALM is a sell this week to avoid event-driven volatility.
Whether you’re a novice investor or a seasoned trader, leveraging InvestingPro can unlock a world of investment opportunities while minimizing risks amid the challenging market backdrop.
Subscribe now to get 55% off all plans with our New Year’s holiday sale and instantly unlock access to several market-beating features, including:
- ProPicks AI: AI-selected stock winners with proven track record.
- InvestingPro Fair Value: Instantly find out if a stock is underpriced or overvalued.
- Advanced Stock Screener: Search for the best stocks based on hundreds of selected filters, and criteria.
- Top Ideas: See what stocks billionaire investors such as Warren Buffett, Michael Burry, and George Soros are buying.
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.
