Tesla, Chevron among market cap stock movers on Monday

As traders approach another pivotal day for financial markets, a series of crucial decisions and economic data releases that could sway market dynamics are expected on Tuesday, January 6, 2026. The Services PMI will be a key focus for market participants, offering insights into the health of the service sector, which makes up a significant portion of the U.S. economy. Additionally, the API Weekly Crude Stock report will provide valuable information on petroleum inventories, potentially influencing energy markets and related sectors.

Major Economic Events to Watch

• Services PMI (10:45 AM ET): Expected at 52.9, down from the previous 54.1. This monthly release by Markit Economics surveys over 400 executives in private sector service companies, with readings above 50 indicating expansion. A stronger than forecast reading would generally be bullish for the USD.

Other Important Economic Events to Watch

• S&P Global Composite PMI (10:45 AM ET): Forecast at 53.0, down from the previous 54.2. This composite index provides a broader view of economic activity across both manufacturing and services sectors.

• API Weekly Crude Stock (4:30 PM ET): Previous reading was an increase of 1.700M barrels. This report shows inventory levels of US crude oil, gasoline, and distillates, offering insights into petroleum demand. A smaller-than-expected increase or larger-than-expected decrease would typically be bullish for crude prices.

Other Economic Events to Watch

• FOMC Member Barkin Speaks (8:00 AM ET): Richmond Fed President Thomas Barkin will be speaking. His comments may provide subtle clues about future monetary policy directions.

• Redbook (8:55 AM ET): Previous reading was 7.6% year-over-year. This index tracks same-store sales growth in a sample of large US general merchandise retailers, representing about 9,000 stores. A higher than expected number is typically positive for the USD.

For further information and the latest updates, please refer to our Economic Calendar, here.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- TD Cowen downgraded Domino’s Pizza to Hold in a note Monday, warning that ongoing weakness in the pizza delivery category and pressure on lower-income consumers may limit the stock’s upside in 2026.

Analyst Andrew Charles wrote that the firm is lowering its 2026 U.S. same-store sales outlook to 2.5%, down from 3%, and below the 2.9% Consensus Metrix estimate.

TD Cowen now expects “lingering pizza delivery category & low income consumer challenges,” adding that the company’s value-focused strategy “has shifted more in this direction than we expected.”

The firm highlighted that while Domino’s saw “robust U.S. same store sales growth” in the second and third quarters, category pressures had already led to “4Q QTD softness.” 

Charles wrote that these headwinds “likely place a ceiling on the shares’ upside potential,” even as Domino’s continues to gain market share. TD Cowen embeds “250 bps of pizza delivery category headwinds” into its forecast.

The brokerage cut its price target to $460 from $500 and said valuation is “likely capped until investors gain more confidence that Domino’s can ‘comp the comp’ in 2026 while lapping over the marquee 2025 launches of stuffed crust & DoorDash.”

TD Cowen now models 2026–27 EPS of $19.43 and $21.34, slightly below consensus, and 2026–27 adjusted EBITDA of $1.10 billion and $1.16 billion, which is 2% below street expectations. 

Charles added that while he appreciates management’s agility on new value offerings, the increased emphasis on this area warrants caution to avoid “thesis creep.”

Investing.com -- US Energy Secretary Chris Wright plans to meet with oil industry executives this week to discuss revitalizing Venezuela’s energy sector following President Nicolás Maduro’s capture, according to a Bloomberg report Monday.

Wright will attend the Goldman Sachs Energy, Clean Tech & Utilities Conference in Miami where executives from Chevron and ConocoPhillips, among others, are scheduled to participate. Chevron currently stands as the only oil supermajor maintaining operations in the South American nation.

US President Donald Trump has pledged to rebuild Venezuela’s oil industry, which has suffered from years of underinvestment and neglect, causing production declines in the country that possesses the world’s largest crude reserves. Trump has indicated the revival effort could require billions of dollars, though it remains uncertain how willing foreign companies will be to undertake such a challenging investment.

Secretary of State Marco Rubio told CBS that companies would need "certain guarantees and conditions" before investing in Venezuela.

Investing.com-- The S&P 500 jumped Monday, underpinned by a rally in financials and energy stocks, with the latter boosted by rising oil prices as investors digested the U.S. attack on Venezuela and the broader geopolitical implications.

At 1:05 p.m. ET (18:05 GMT), the blue-chip Dow Jones Industrial Average gained 767 points, or 1.6%, the benchmark S&P 500 added 0.8%, and the tech-heavy Nasdaq Composite rose 0.8%.

U.S. forces captured Maduro in a weekend strike, with the Venezuelan leader now set to face drug-trafficking charges in New York. President Donald Trump said that Washington will run Venezuela until a new leader is elected, and that as part of the incursion, major U.S. oil companies will be allowed to move into the country.

Oil prices rebounded from a early-day slump to a more than 1% gain as investors continued to assess the impact of a potential ramp up global supplies following President Donald Trump’s plan to allow U.S. companies to develop Venezuela’s oil infrastructure and eventually ramp up production. 

Venezuela has the largest proven oil reserves in the world. But output from the country has faltered due to aging infrastructure and strict U.S. sanctions.

Still, Oil prices have a long way to recover after falling 18% 2025, their worst in five years, as fears of a supply glut and weakening demand battered crude markets.

Shares of U.S. oil groups Chevron, ExxonMobil, and ConocoPhillips all advanced in early trading, underpinned by the broader higher in energy. 

Much debate is now swirling around the implications of a potential U.S.-driven regime change in Venezuela, a source of uncertainty that has also burnished the appeal of "the liquidity of the dollar," analysts at ING.

Trump on Sunday floated the possibility of a second military strike on Venezuela, if the country’s interim administration did not cooperate.

Speaking to reporters aboard Air Force One, Trump also flagged potential action against Colombia over its role in the drug trade, and said Cuba was ready to fall. He reiterated as well his view that the U.S. must control Greenland for national security reasons.

Financials higher as banking stocks continue momentum

Financials also led the broader market move higher, led by a Wall Street banks including Goldman Sachs Group Inc (NYSE:GS), Citigroup Inc (NYSE:C), and State Street Corp (NYSE:STT).

Coinbase Global Inc (NASDAQ:COIN) was also among the biggest gainers, rising more than 7% after Goldman Sachs upgraded the crypto exchange to buy from neutral, citing optimism over further market share gains.

Fresh employment data looms large

Elsewhere, headlining the economic calendar this week is the upcoming release of U.S. employment data for December.

Economists expect the U.S. to have added some 57,000 roles during the final month of 2025, down from 64,000 in November. In October, a spate of government-related spending reductions triggered the sharpest decline in nonfarm payrolls in almost five years.

The cadence of monthly jobs figures is set to normalize after a prolonged, 43-day U.S. government shutdown led to the delay of these crucial reports. The previous batch of jobs data did not include an unemployment rate for October, marking the first gap in a series that stretches back to 1948.

Federal Reserve policymakers slashed interest rates at the conclusion of each of its last three gatherings in 2025, prioritizing worries over the health of a weakening labor market above signs of sticky inflationary pressures.

The outlook for lower rates has offered some support for stocks, although Fed officials appear to be divided over the path ahead for borrowing costs in 2026.

Meanwhile, a closely-monitored tracker of U.S. manufacturing sector activity is due to be unveiled on Monday. The Institute for Supply Management’s December manufacturing purchasing managers’ index is seen coming in at 48.3, edging up from 48.2 but still within the sub-50 contraction zone.

A gauge of prices paid by businesses in the segment is also anticipated to climb slightly.

Investing.com -- UBS upgraded Emerson Electric Company (NYSE:EMR), United Rentals Inc (NYSE:URI) and Dover, while cut rating on Eaton, on earnings momentum and estimate revisions that is most likely to emerge over the next two years.

UBS upgraded Emerson Electric to Buy from Neutral, saying near-term concerns around its software business are masking stronger underlying demand. It expects earnings growth to accelerate after a soft patch this year and sees a path to double-digit annual profit growth beyond 2026. UBS also said Emerson’s shares still trade at a discount to the broader industrial sector, despite what it views as improving returns on capital and rising free cash flow that should support buybacks. It set a price target of $168.

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UBS downgraded Eaton to Neutral from Buy, despite maintaining a positive long-term view. The bank said Eaton remains well positioned to benefit from data center spending and electrification trends, but near-term upside looks limited because earnings estimates are more likely to be revised down than up.

UBS expects Eaton’s initial 2026 guidance to fall short of current forecasts and said ongoing capacity expansion could hold back margins.

While demand from data centers remains strong, UBS believes a larger share of that growth is converting into lower-margin revenue. Eaton’s earnings over the next two years could come in below consensus, which it sees as a problem for a stock trading at a high valuation.

UBS upgraded United Rentals to Buy, saying improving U.S. non-residential construction activity should drive a pickup in growth from the second half of 2026 into 2027. The bank expects large projects in infrastructure, data centers, life sciences and power to support higher equipment demand, while easing pressure in commercial construction.

UBS said stronger demand should lift rental rates, improve fleet utilisation and help margins recover from recent headwinds. It also pointed to United Rentals’ low debt levels and scope for acquisitions as an added source of upside.

Dover was also upgraded to Buy, with UBS saying the company is poised to emerge from two years of cyclical pressure.

UBS said Dover combines improving growth with disciplined costs and balance sheet flexibility, which should support double-digit earnings growth over the next two years.

With the stock trading at a large discount to the broader industrial sector despite strong returns on capital, UBS sees scope for both earnings growth and a higher valuation. It set a price target of $256.