New York, Jan 30, 2026, 20:18 ET — Market closed
- Merck shares climbed 1.78% on Friday, finishing just 2.3% shy of their 52-week peak
- Trading volume exceeded recent averages, driven by increased interest in large-cap healthcare stocks
- Attention shifts to Feb. 3 earnings and guidance, while rates and inflation data remain key factors
Merck shares climbed 1.78% to $110.27 on Friday, edging the drugmaker to within roughly 2.3% of its 52-week peak despite a dip in the broader market. Volume hit about 19.1 million shares, surpassing its 50-day average, MarketWatch reported.
The stock surged late in the week as U.S. markets closed until Monday, with investors still uneasy about the direction of policy. Wall Street’s major indexes slipped after Donald Trump tapped Kevin Warsh to replace Jerome Powell at the Federal Reserve, while fresh inflation concerns added pressure. “Markets are calibrating to Trump’s pick of Kevin Warsh … and the outlook for monetary policy,” said Michael Hans of Citizens Wealth. Reuters
Friday’s data stoked more nerves. The Producer Price Index, which tracks prices producers receive, jumped 0.5% in December — its largest increase in five months — well above economists’ 0.2% forecast in a Reuters poll. Carl Weinberg from High Frequency Economics said, “This report validates the pivot of the Fed away from labor market risks back toward price stability.” The January jobs report lands Feb. 6, followed by the consumer price index a week later. Reuters
Merck will release its fourth-quarter and full-year 2025 earnings on Tuesday, Feb. 3, followed by a conference call with analysts at 9:00 a.m. ET.
Earnings day has taken on new weight for drugmakers, with investors zeroing in on names that might weather a prolonged period of higher rates. Merck’s share price tends to move in line with forecasts for its cancer treatments and vaccine units, while guidance tends to drive the biggest swings.
The rates landscape is complicated. “The Fed did nothing and did it with conviction,” Karl Schamotta of Corpay remarked in a Reuters Instant View following the Fed’s midweek announcement. Reuters
Some investors eyed insider filings ahead of earnings. A Form 4 submitted Jan. 28 revealed Johannes Oosthuizen, president of the company’s U.S. market, received 5,026 shares on Jan. 26. This came from a net-of-tax distribution tied to performance share units that paid out at 94% of target. The filing listed the shares at $107.40.
Merck’s surge has lifted its peers too. Pfizer and Eli Lilly both climbed on Friday, while Johnson & Johnson held steady, highlighting that interest in big pharma is widespread, not just focused on a single stock.
That “safe” trade isn’t guaranteed. Should yields rise once more, or if Tuesday’s forecast disappoints on sales or 2026 projections, Merck might lose ground fast — particularly since the stock is already trading close to recent peaks.
The next major event is Feb. 3, when the company releases its numbers, guidance, and management’s outlook for the year. Monday’s open offers the first real opportunity for traders to take positions ahead of that.
