S&P, Nasdaq seesaw on first trading day of 2026

Watch on YouTube ↗  |  January 02, 2026 at 21:23  |  2:11  |  CNBC
Speakers
Mike Santoli — Senior Markets Commentator

Summary

CNBC's Michael Santoli reviewed the first trading day of 2026, noting that the S&P 500 and Nasdaq were relatively flat while energy and cyclicals rotated higher. He said last year's top momentum names are being bought again, while retail-trader favorites like Tesla, Palantir, and AppLovin saw profit-taking. He also highlighted Caterpillar as an AI infrastructure and power-constraint beneficiary.

  • S&P 500 and Nasdaq traded roughly flat on the first day of 2026.
  • Energy and cyclical stocks saw rotational buying.
  • Last year's top S&P 500 momentum names were bid again.
  • Retail-trader favorites Tesla, Palantir, and AppLovin lagged.
  • Speaker saw profit-taking in those retail favorites.
  • Caterpillar was framed as benefiting from AI infrastructure and power constraints.
  • A JPMorgan note focused on power as the main AI constraint.
  • Nasdaq was described as the big laggard.
Ideas
Mike Santoli Senior Markets Commentator 0:33
Money reloads into last year's winners.
Last year's top S&P 500 performers and momentum names are getting bid again as money reloads into the group, suggesting a mini chase. The speaker cites Dollar General, CVS, Tapestry, GE, and Huntington Ingalls as examples outside tech.
S&P 500 momentum names DG CVS TPR GE HII MED
Mike Santoli Senior Markets Commentator 1:26
Retail favorites face profit-taking, weak support.
Retail-trader favorites that were big winners last year, including Tesla, Palantir, and AppLovin, are among today's downside leaders. The speaker views this as profit-taking and argues they are not as fundamentally supportive.
TSLA PLTR APP MED
Mike Santoli Senior Markets Commentator 1:39
Caterpillar benefits from AI power buildout.
Caterpillar sits across the entire AI infrastructure food chain, and a detailed JPMorgan note argues power is the main constraint with investment levels needing to be sustained, which adds conviction to owning Caterpillar.
CAT HIGH
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This CNBC video, published January 02, 2026, features Mike Santoli discussing S&P 500 momentum names, DG, CVS, TPR, GE, HII, TSLA, PLTR, APP, CAT. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Mike Santoli  · Tickers: S&P 500 momentum names, DG, CVS, TPR, GE, HII, TSLA, PLTR, APP, CAT