Closing Bell: Markets Cool Off as Retail Sales Momentum Fades

Key Points

• Major indexes snapped a two‑day rally after soft retail sales, with the S&P 500 down 0.33%, Nasdaq‑100 off 0.56%, and Russell 2000 lower by 0.34%.
• Coca‑Cola shares fell after mixed Q4 results, as revenue missed expectations despite an EPS beat.
• Amazon beat revenue estimates but missed on EPS and issued 2026 cap-ex guidance of $200B—well above consensus.

After two days of gains, major indexes closed lower following weaker-than-expected retail sales data. The S&P 500 (SPX) finished down 0.33%, the Nasdaq-100 (NDX) dropped 0.56%, and the Russell 2000 (RUT) remained under pressure, closing lower by 0.34%. Utilities, Real Estate, and Materials led the session’s gains, while Communication Services and Financials lagged.

Coca-Cola Shares Fall After Earnings

Coca-Cola (KO) ended the session in negative territory after reporting mixed quarterly results. The company posted Q4 revenue of $11.82 billion, missing consensus estimates of $12.03 billion. Adjusted EPS of $0.58, however, exceeded expectations of $0.56. Global unit case volume rose 1%, but softer demand in North America and Asia weighed on overall sales performance.

Retail Sales Growth Slows

Retail sales were flat in December, coming in at 0.0% month-over-month versus expectations for a 0.4% m/m increase, following a solid 0.6% gain in November. Sales excluding autos were also unchanged, missing forecasts for a 0.3% m/m rise, while the Control Group—which excludes autos, gas, building materials, and food services—fell 0.1% m/m. The slowdown appears to reflect tariff-related price pressures on discretionary goods, a softening labor market, and increased consumer caution.

Market Events for Tomorrow

• 08:30 AM ET: Non-Farm Employment Change
• 08:30 AM ET: Unemployment Rate
• 10:00 AM ET: FOMC Member Schmid Speaks
• 10:15 AM ET: FOMC Member Bowman Speaks
• 10:30 AM ET: Crude Oil Inventories
• 01:01 PM ET: 10-YR Bond Auction
• 02:00 PM ET: Federal Budget Balance
• 04:00 PM ET: FOMC Member Hammack Speaks

Notable Earnings for Tomorrow

• A.M: BWA, CHEF, FNMA, ULCC, GNRC, GFS, HLT, HUM, KHC, LAD, MLM, MCD, NTES, NI, PSN, PAG, R, SN, SHOP, SW, TMUS, THC, TMHC, TEX, TSEM, U, VRT, WAB

P.M: ALB, AMCX, AR, APP, CSCO, CGNX, CPA, CW, FSLY, HUBS, IFF, MFC, MSI, NBR, NE, PAYC, PPC, PRCH, QTWO, QS, ROL, TYL

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