Morning Dose: Rotational Tension Crucial Data Boosts Defensive Stocks
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Good morning, traders! Welcome to The Morning Dose – Everything You Need to Know Before the Market Opens. It is Tuesday, December 16th, 2025, and the screens are flashing a bit of red this morning. We are seeing modest losses across the board as we head into the open.
Overnight Headlines
Equity futures are pointing down, with S&P 500 futures off by about 13 points and Nasdaq futures down roughly 32 points. The theme right now? It’s all about rotation with money moving out of high-flyers into safer spots, resulting in weakness in tech.
Economic Announcements
- November Employment Situation Report: Consensus at 30,000 jobs added.
- October Retail Sales: Expected to be up just 0.2 percent.
Earnings Highlights
- Kraft Heinz (KHC): Appointed a new CEO, Steve Cahillane, formerly of Kellanova.
- PayPal (PYPL): Applying to become a bank.
- Ford: Confirming a 19.5 billion dollar charge in special items.
- Target & Walmart: FDA warning letters regarding infant botulism linked to a specific formula they sold.
Top Movers
Rotation: Money flowing out of AI plays and into cyclical and defensive stocks like healthcare, utilities, and consumer staples.
Quick Trade Ideas
Smart money: Stay defensive. Look for dip-buying opportunities in insurance or industrials like C-B or S-A-I-C with tight stops. Avoid chasing fading momentum in semiconductors or biotech.
Key Takeaway
Watch the 675 level on the SPY and be prepared for market direction to be influenced by the 8:30 data release. Trade smart and keep an eye on safe plays amidst market rotations.