Stocks finished the week on a positive note as volume thins ahead of two holiday-shortened weeks. But Friday's gains weren't enough for one of the main market indexes to erase its weekly deficit.
At the close, the blue-chip Dow Jones Industrial Average was up 0.4% at 48,134, the broader S&P 500 was 0.9% higher at 6,834, and the tech-heavy Nasdaq Composite rose 1.3% to 23,307. While the Dow and S&P 500 managed weekly wins, the Nasdaq ended the week down 0.7%.
The tech sector saw the biggest gains on Friday, as measured by the State Street Technology Select Sector SPDR ETF (XLK, +2.2%). This was thanks to a strong rally in Oracle (ORCL), which jumped 6.8% on news the tech giant is part of a joint venture that will buy 50% of TikTok's U.S. operations.
The agreement ends a lengthy effort to force TikTok's parent company, ByteDance, to sell the Chinese social media app's U.S. operations. The deal is scheduled to close on January 22, 2026, one day ahead of a January 23 deadline established by an executive order President Donald Trump signed earlier this year.
TikTok CEO Shou Zi said the group will ensure content moderation, algorithm security and "software assurance." And Oracle will host TikTok's data in its cloud computing data center and serve as the "trusted security partner" to ensure the platform follows national security protocols.
Moderna leads health care stocks higher
Health care was another strong performer on Friday, with the State Street Health Care Select Sector SPDR ETF (XLV) gaining 0.7%. Moderna (MRNA, +9.2%) saw some of the largest gains among S&P 500 stocks after the Coalition for Epidemic Preparedness Innovations (CEPI) agreed to invest $54.3 million for a Phase 3 study on the drugmaker's mRNA-based pandemic influenza vaccine.
MRNA shares peaked near the $480 price level in mid-2021 thanks to the company's COVID-19 vaccine. But COVID vaccine sales have declined rapidly in recent years and the stock now trades closer to $33.
Jefferies analyst Roger Song recently initiated coverage on Moderna with a Hold rating and $30 price target.
"While we expect COVID vaccine sales continue to decline, MRNA is looking to diversify its portfolio into flu, RSV, norovirus and cancer vaccines, among others," Song wrote in a December 11 note. Despite the broader pipeline of products, he doesn't expect Moderna to break even on cash flow until 2030, which is two years after management's target.
Nike sinks as China sales tumble
Nike (NKE), meanwhile, found itself on the negative side of the ledger after the athletic apparel and footwear retailer disclosed earnings. Shares slumped 10.5%, easily making NKE the worst Dow Jones stock today.
For its fiscal 2026 second quarter, Nike reported earnings of 53 cents per share, down 32% year over year, on revenue of $12.4 billion (+1% YoY). The results beat analysts' estimates for earnings of 38 cents per share on $12.2 billion.
But Wall Street seems worried about a 17% sales slump in Greater China. Additionally, CEO Elliott Hill said on the earnings call that while the company is taking action to address its China troubles, "it's not happening at the level or pace we need to drive wider change."
Still, Hill remains optimistic that "China continues to stand out as one of the most powerful long-term opportunities in sport," even as the company expects headwinds to remain through the end of its current fiscal year.
Nike is now down more than 22% for the year to date – putting it on track to finish as one of the worst Dow stocks of 2025.
So what's an investor to do?
Whether or not you decide to sell Nike based on its disappointing technical performance or buy it on the dip is up to you. Analysts, for what it's worth, are generally upbeat toward the stock, but divided on the company's recovery efforts.
Jefferies analyst Randal Konik, for one, says to "Just BUY It," arguing that Nike's fiscal Q2 print confirms " the turnaround is gaining traction, with targeted investments in running, wholesale, and North America driving clear outperformance."
Konik has a Buy rating and $110 price target, representing implied upside of 87% to current levels.
But Needham analyst Tom Nikic says Nike's turnaround is "more frustrating than middle schoolers yelling '6-7.'" While he agrees with the retailer's "overarching strategy (focus on sport, re-engagement with wholesale, etc.), it's becoming evident that the company's issues prior to CEO Elliott Hill's arrival were far deeper than we initially realized."
Nikic has a Buy rating on the blue chip stock and a $68 price target.
