Happy Friday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.

• 🟥 | US stocks fell sharply today as the latest batch of jobs data cast further doubt on the future of rate cuts from the Federal Reserve, pushing major indexes into the red for the new year to date.

• 📈 | One Notable Gainer: It’s the tale of two Constellations today, as Constellation Energy’s (CEG) stock surged more than 25% on news it will buy fellow energy giant Calpine in a $16.4 billion deal.

• 📉 | One Notable Decliner: Meanwhile, major alcohol supplier Constellation Brands (STZ) had its worst day in more than a decade on a sales and earnings miss, with its 17% tumble leading the S&P 500 losers.

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MARKET MOVERS

Walgreens, Allstate, Delta

WBA (+27.6%) Walgreens shares soar more than 20% on big earnings beat, as drugstore chain cuts costs (CNBC)

ALL (-5.6%) Allstate Stock, Other Insurers Fall as L.A. Fires Rage On. They Are Set to Lose This Much. (Barron’s)

DAL (+9%) Delta Air Lines Smashes Records: Why DAL Stock Soared Nearly 10% Amid Bold 2025 Forecasts (YF)

ON (-7.5%) On Semiconductor dips after Truist cuts rating to Hold (SeekingAlpha)

NVDA (-3%) Nvidia Stock On Track For Sharp Weekly Loss Despite CES Glow (IBD)

OVERHEARD ON THE STREET

Bloomberg: US jobs data came in stunningly strong in December, with 256,000 hires above the 155,000 expected and a drop in unemployment to 4.1%.

CNBC: President-elect Donald Trump was sentenced to unconditional discharge and no jail time in his New York hush-money case.

Investing.com: The strong payrolls report led traders to shift expectations for the next Federal Reserve rate cut to October.

WSJ: The US Supreme Court expressed skepticism about TikTok's challenge to a federal law requiring it to shut down or find new owners by Jan. 19.

AP: The Biden administration announced new sanctions on Russia's energy sector, but it will be up to Trump whether to maintain them upon taking office.

TOMORROW’S TRADE IDEA, TODAY

Succession Season 5

Stranger Than Fiction

The Murdoch family succession drama is stranger than fiction, but that hasn’t scared off Citibank (CITI).

On the contrary, the bank recently initiated coverage on Wall Street Journal-parent News Corp (NWSA) with a Buy rating and a price target of $36, implying some 33% upside from today’s close.

Divestiture Drama

News Corp is controlled by media mogul Rupert Murdoch’s family — for the time being.

Last month, a Nevada judge ruled against Murdoch’s bid to change the family trust and transfer control of his companies to his eldest son. Given the mogul’s differences with his other children, rumor has it he may look to divest his companies. News Corp already sold its Australian business Foxtel to DAZN for $2.1 billion, mere weeks after the ruling.

But Citi seems to have taken this development as a bullish signal. The firm expects continued divestments in the coming years, and thinks that this could create significant shareholder value.

See Ya, REA

Within the next two years, the bank predicts News Corp will increase its majority stake in Australian real estate advertising company REA from 61% to 80%, then spin it off to shareholders.

Citi analyst Jason Bazinet believes this could unlock up to $22 in share value, with just $2 of downside.

The recent court drama might have felt like a series finale, but Citi believes the power plays on the part of News Corp are just getting started. Investors might want to tune in — and not just for the entertainment value.

Together With ProsperityPub

Overnight "trick" to tune out the market noise

Nate Tucci's using a backtested CBOE strategy to target overnight payouts, every day the market is open. This overlooked market phenomenon could be your shortcut to automatic, end-of-day setups that when things work out close while you sleep. Spend just 2 minutes setting up and spend less time stressing!

ON OUR RADAR

The Verge: Here are the highlights from CES: fluffy robots, portable TVs, vacuums with limbs, and more.

BI: Meta is ending its DEI programs following backlash, legal challenges, and Donald Trump's reelection as US president.

BBC: The US announced a $25M reward for the arrest of Venezuelan President Nicolás Maduro on the day of his swearing-in for a third term.

CNN: Vince McMahon settled SEC charges for $1.7M over undisclosed settlements made on behalf of himself and WWE without informing the company's board.

Bloomberg: The UFC is seeking over $1B annually in its next TV rights deal, aiming to double its media revenue as viewership continues to grow.

THURSDAY’S POLL RESULTS

Are you bullish or bearish on private markets in 2025?

🟩🟩🟩🟩🟩🟩 🐂 Bullish

🟨🟨⬜⬜⬜⬜ 🐻 Bearish