NEW YORK, January 19, 2026, 13:25 EST — The market has closed.
- U.S. communication services stocks reopen Tuesday weighed down by new tariff news denting risk appetite.
- The Communication Services Select Sector SPDR Fund (XLC) closed Friday down 0.9%.
- Netflix is set to report Tuesday, while Meta and Alphabet are scheduled to release their earnings later this month.
U.S. communication services stocks opened on edge Tuesday, following a dip in big tech shares across Europe after President Donald Trump threatened new tariffs. U.S. markets had been closed Monday for Martin Luther King Jr. Day.
This is significant since the sector is loaded with major ad platforms and media giants, where even a slight change in risk appetite can quickly sway broad indexes. Traders often see this segment as a gauge of advertising demand and consumer spending, which are both vulnerable to trade tensions.
The next catalysts are just around the corner. Netflix is scheduled to report fourth-quarter results on Tuesday, Meta’s earnings drop on January 28, Alphabet follows on February 4, and T-Mobile rounds out the batch on February 11.
XLC, the go-to proxy for U.S. communication services stocks, ended Friday at $115.17, slipping 0.89%. Meta held the largest stake, making up 18.85% of the fund. Alphabet’s two share classes combined for roughly 20%, according to the latest holdings. Netflix and Disney followed as the next biggest positions. The fund covers companies in telecom, media, entertainment, and interactive media and services. Broader market trackers barely moved, with SPY and QQQ both down 0.1% at the close.
Disney dropped 1.9% in the latest session, with T-Mobile sliding 2.3%. Alphabet slipped 0.9%, and Meta ended almost unchanged. Comcast and Verizon finished down as well.
Overseas trading on Monday signaled more pressure at the open. S&P 500 and Nasdaq futures—which trade when the cash market is closed and often point to the following day’s direction—dropped over 1.2% after Trump threatened new tariffs tied to a Greenland dispute, Reuters reported. “There is obviously a response (in financial markets) to the new tariff threats,” said George Lagarias, chief economist at Forvis Mazars. Reuters
Europe is already laying groundwork for a response. EU diplomats say leaders will convene an emergency summit this Thursday. Options include reactivating a tariff package or deploying an “Anti-Coercion Instrument,” which could hit services trade—putting U.S. digital platforms with European operations at risk. Reuters
Advertising remains a crucial focus for the group. Recent data points to agencies folding YouTube into their connected-TV budgets — that is, ads aimed at streaming video on internet-connected TVs. One ad exec told Business Insider the sector is “very close to a tipping point,” with traditional TV dollars poised to shift toward the platform. Google’s Americas president, Sean Downey, touted YouTube’s “innovative ad solutions,” though ad groups raised concerns about brand safety and content quality. Business Insider
Tuesday’s focus is split between two timers: macro risks and earnings. Tariff news will shape futures and early trading, while Netflix’s report will be dissected for clues on ad revenue, pricing strength, and consumer demand amid ongoing household belt-tightening.
But this dynamic works both ways. If tariff threats turn into actual policy, growth stocks could quickly reprice as investors seek a bigger risk premium. Marketers might also slash spending before the data even reflects it. A weak earnings report from any major player in the sector would only intensify the pressure.
Investors now turn to Tuesday’s first U.S. cash session following the holiday, then Netflix’s quarterly earnings later that same day. Add in headlines from Davos and Thursday’s EU summit, and there’s plenty to track.
