Top 10 Things to Watch in the Stock Market Friday: A Closer Look

As we approach the final full trading week of the year, it's essential to keep an eye on the key developments shaping the stock market. Let's dive into the top 10 things to watch on Friday, December 27, and analyze how these factors might influence market trends and investor sentiment.

1. U.S. Stock Futures and Weekly Performance:
U.S. stock futures are lower to close out the year, but the Dow, S&P 500, and Nasdaq are still tracking for weekly gains after solid sessions on Monday and Tuesday. The Dow is up 15% year to date, the S&P is up 26.6%, and the tech-heavy Nasdaq has added 33.4%. Keep an eye on how these major indices perform throughout the day.

2. Market Oversold Conditions:
The market is technically oversold but just barely, according to our trusted momentum indicator, the S&P Short Range Oscillator. It ended Thursday's session at minus 4.77%. The threshold for being oversold is minus 4%. As the market nears this threshold, investors may look for opportunities to put money to work.

3. Oil Futures, U.S. Treasury Yields, and Bitcoin:
Oil futures, U.S. Treasury yields, and bitcoin are all higher on Friday. Meanwhile, gold and the U.S. dollar index are pulling back. The trajectory of the dollar index, which has climbed more than 6% this year, is something to watch after the Federal Reserve projected fewer rate cuts in 2025.

4. Global Stock Fund Inflows and Outflows:
Global stock funds saw "sharp inflows" of $34.38 billion over the past week, Reuters reported, citing LSEG data. This is a stark contrast to nearly $37 billion in outflows in the prior week. Driving the inflows was encouraging U.S. inflation data and Congress striking a deal to keep the government open. This shift in investor behavior can have a significant impact on market sentiment and performance.

5. OpenAI's Corporate Structure Change:
OpenAI detailed its plans to change its corporate structure to become a for-profit public benefit corporation in 2025. This move is not surprising, given the massive investments the organization has attracted thus far. Investors want a return, and to generate that return, a company must produce profits. Keep an eye on how this development affects the AI sector and tech stocks in general.

6. Netflix's NFL Broadcasting Success:
Netflix's pair of Christmas Day games were the most-streamed NFL contests in U.S. history, according to Nielsen. Both Chiefs versus Steelers and Ravens versus Texans averaged more than 24 million viewers. The streaming giant's first foray into NFL broadcasting had fewer tech issues than the Jake Paul-Mike Tyson boxing match. Where Netflix's sports push goes next will be interesting to see, with implications across the media landscape, including for Club holding Disney.

7. Broadcom's Strong Week:
Club name Broadcom is up 11% so far this week and on track for its best month ever. There hasn't been much news since its blockbuster earnings report on December 12, but investors rushed back into the stock after profit-takers took advantage of the post-earnings surge. Shares entered Friday about $5 below their all-time closing high of $250 on December 16. Keep an eye on Broadcom's performance and any potential catalysts that could drive the stock higher.

8. Constellation Brands and Stanley Black & Decker's December Struggles:
Within the Club portfolio, only two stocks are down more than 1% for the week: Corona brewer Constellation Brands and DeWalt parent Stanley Black & Decker, which have lost 1.5% and 1.3%, respectively. Both companies have tariff risk, and for Stanley, higher rates have been an issue. Keep an eye on these stocks and their respective sectors to identify any potential opportunities or risks.

9. UnitedHealth Group and Amedisys' Tie-Up Delay:
UnitedHealth Group and Amedisys pushed out the deadline to complete their tie-up into next year, according to a securities filing, as the $3.3 billion deal faces antitrust scrutiny. The Department of Justice and attorneys general in Maryland, Illinois, New Jersey, and New York sued to block UNH's acquisition last month, saying it could harm competition in the home health and hospice care markets. Monitor this situation for any updates or developments that could impact the healthcare sector.

10. Estee Lauder's China Performance:
China's retail sales surprised with faster growth in August, advancing 4.6% year-over-year, crushing estimates for a 3% gain. Perhaps indicating a better time ahead for the Chinese consumer in what's been some post-Covid struggles for the world's second-largest economy. Club name Estee Lauder, which does a lot of business there, is seeing its stock up more than 1%. Keep an eye on Estee Lauder's performance and any potential catalysts that could drive the stock higher.



As we navigate the final trading week of the year, these top 10 things to watch will help investors stay informed and make strategic decisions in the stock market. By keeping a close eye on these factors, investors can better understand the market's dynamics and position themselves for potential opportunities.