Disney stock has now climbed in three straight years, but still lags the S&P 500. The Daily Breakdown digs into its charts.
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Weekly Outlook
After government shutdowns, delayed data, and the holidays, we’re finally getting back to some normalcy on Wall Street.
This week will feature a big update on the labor market, with the ADP (private payrolls report) and JOLTS (job openings) reports on Wednesday, jobless claims on Thursday, and the monthly jobs report (which includes the unemployment rate) on Friday.
There are some smaller earnings from companies like Constellation Brands and Aehr Test Systems, but earnings season won’t officially kick off until the banks start reporting next week.
Today also marks the last day of the Santa Claus Rally, which began on Christmas Eve this year. So far, the S&P 500 is down about 0.7% for this year’s stretch. We’ll see if today’s pre-market rally can help tip the scales.
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The Setup — Disney
Disney finished higher by about 2% in 2025. While that was its third straight annual gain, it has lagged the S&P 500’s return over that stretch. Will 2026 be the year where Disney finally starts to outperform?
Chart as of the close on 1/2/2025. Source: eToro ProCharts, courtesy of TradingView.
Using the weekly chart, bulls may have noticed how Disney stock recently found support from the 200-week moving average — which was resistance earlier in the year. Then, DIS shares broke out over downtrend resistance (the blue line) in December. If it can stay above this measure, they are hoping more bullish momentum drives Disney back toward its recent highs. However, if selling pressure mounts, the 200-week could be back in play.
Options
Investors who believe shares will move higher over time may consider participating with calls or call spreads. If speculating on a long-term rise, investors might consider using adequate time until expiration.
For investors who would rather speculate on the stock decline or wish to hedge a long position, they could use puts or put spreads.
To learn more about options, consider visiting the eToro Academy.
What Wall Street’s Watching
Friday was the first trading day of the new year and started with strong gains, but US stocks faded on the day and closed in the red. The same can’t be said for ASML, which surged over 8% on the day and is up another 3% today. That has the stock set to open at record highs, as enthusiasm climbs for chipmakers and AI stocks. Check out our Deep Dive on ASML.
XLE
Shares of US energy stocks are jumping this morning, led by gains in Chevron, Exxon Mobil, Valero, Baker Hughes, and more. The XLE ETF is jumping higher as well, up about 4%. The rally comes on news out of Venezuela, even though oil prices are mostly unchanged.
BTC
Bitcoin is looking for its fifth straight daily gain, as it briefly cleared the $93K level at one point this morning. That was Bitcoin’s highest price since Dec. 11th, as bulls are hoping BTC can help deliver a better return in 2026. Prices are now back above the 50-day moving average, but many investors want to see if it can return to — and regain — the key $100K mark. Check out the charts for BTC.
Disclaimer:
Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.