Morning Dose: Defense Stocks Surge as Markets Brace for Record Defense …
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Welcome to The Morning Dose – Everything You Need to Know Before the Market Opens. It is Thursday, January 8th, 2026. The screens are flashing a bit of red to start the morning.
Overnight Headlines
- Geopolitical tensions and talks of a potential takeover of Greenland are making headlines.
- President Trump’s request for a massive $1.5 trillion defense spending for 2027 is moving the defense sector.
- Samsung’s record Q4 profits driven by AI demand and China’s expected approval of Nvidia H200 purchases are supporting the tech sector.
Economic Announcements
At 8:30 AM ET, look out for weekly Initial Jobless Claims, Q3 Productivity, and Unit Labor costs. Labor cost data may signal inflation, impacting yields and equities.
Earnings Highlights
Watch for updated feasibility news from Energy Fuels (UUUU) impacting the Uranium sector. Be cautious with Pharma stocks like Immuneering and Phathom Pharmaceuticals due to significant gaps down.
Top Movers
Defense contractors like Lockheed Martin, Northrop Grumman, and L3Harris are gapping up significantly due to increased defense spending. Keep an eye on the aerospace and defense sector for momentum.
Quick Trade Ideas
- Watch for support around 684 on the SPY with resistance at 690.
- Consider selective growth stocks within the tech sector as buying pressure remains strong despite the broader market weakness.
- Avoid falling knives in Pharma and focus on plays with positive catalysts like Uranium.
Key Takeaway
Stay nimble in this stock picker’s market. Keep stops tight, monitor price action, and be quick in taking advantage of opportunities while avoiding potential pitfalls.