NEW YORK, Jan 17, 2026, 14:08 EST — Market closed.
Communication services stocks closed the week weaker, as the Communication Services Select Sector SPDR ETF fell 0.9% on Friday to $115.17. The ETF has slipped roughly 2.3% over the last five sessions, marking a fifth consecutive daily drop. 1
XLC is an ETF that tracks the communication services sector of the S&P 500, covering media, entertainment, telecom, and interactive services. It’s heavily weighted at the top, with Meta Platforms and Alphabet leading the pack. Netflix and Disney follow as some of the largest holdings. 2
That concentration takes on added significance heading into a holiday-shortened week, with U.S. markets closed Monday for Martin Luther King Jr. Day. “Historically the middle part of January tends to be pretty choppy,” said Bruce Zaro, managing director at Granite Wealth Management. 3
On Friday, Alphabet slipped 0.9%, and Disney dropped 1.9%. Telecom stocks took a hit as T-Mobile slid 2.3% and Verizon dropped 1.1%. Meta barely moved, while Netflix dipped slightly.
Netflix is set to release its fourth-quarter results on Tuesday, with investors likely to zero in on its pursuit of Warner Bros Discovery’s studio and streaming units—and what the next steps might be in a drawn-out battle. “The earnings will be overshadowed by what Netflix says about the deal … what’s next and the questions around it,” said Paolo Pescatore, analyst at PP Foresight. According to LSEG data cited by Reuters, analysts forecast holiday-quarter revenue to climb 16.82% to $11.97 billion. 4
Netflix has inked a multi-year global deal with Sony Pictures, securing exclusive streaming rights to Sony films for the first 18 months following their theatrical and video-on-demand releases, the companies announced. The agreement kicks off later this year and aims for full worldwide coverage by early 2029, after which the rights will transfer to Disney. 5
Late Friday, Alphabet’s Google asked U.S. District Judge Amit Mehta to delay an order that would force it to share data with competitors while it appeals a ruling that brands the company an illegal monopoly in online search, court documents reveal. Google warned that handing over the data could reveal trade secrets and argued the move would aid rivals, including generative AI firms like OpenAI. The Justice Department and the states behind the lawsuit have until Feb. 3 to decide whether to challenge Mehta’s rejection of tougher penalties, according to Reuters. 6
Investors are closely watching if U.S. stock leadership is expanding beyond the mega-cap growth giants, amid ongoing concerns about valuations and the payoff from AI investments. “I still think tech works. You don’t want to be chasing it, but you also don’t want to be underweight,” said Natixis Investment Managers portfolio manager Jack Janasiewicz. 7
Communication services face risks on both ends. If Netflix’s deal story remains unclear or regulators crack down harder than anticipated, its stock could weigh down the sector. On the flip side, a clearer plan from the company might boost the group. Meanwhile, the timing of Google’s court case adds another variable to watch.
Netflix is set to release its earnings Tuesday, Jan 20. Investors will be watching closely to see if management addresses the lingering concerns about deals in the sector. 8
