New York, January 31, 2026, 14:39 (EST) — Market closed
- Merck shares climbed roughly 1.8% on Friday, standing out against a wider market slide
- The stock closed about 2% shy of its 52-week high, with volume running above average
- Attention now turns to Merck’s earnings call on Feb. 3 and upcoming inflation reports that will influence rate expectations
Merck & Company, Inc. (MRK) shares closed Friday on an uptick, outperforming a weaker U.S. market and holding close to a recent high.
Wall Street is closed for the weekend, so all eyes turn to Monday’s open to see if that bid holds or slips away.
Timing is key. Merck is hovering near a 52-week high, and stocks hitting these levels seldom receive much wiggle room on their guidance.
Friday’s trading was volatile. U.S. stocks slipped following President Donald Trump’s nomination of Kevin Warsh to lead the Federal Reserve, as investors digested mixed inflation cues. “Markets are calibrating to Trump’s pick of Kevin Warsh … and the outlook for monetary policy,” noted Michael Hans, chief investment officer at Citizens Wealth. (Reuters)
Merck climbed 1.8% to close at $110.27 on Friday, even as the S&P 500 dropped 0.43%. The stock ended about 2% shy of its 52-week peak at $112.90, with trading volume hitting roughly 19 million shares. That pace outstripped rivals like Johnson & Johnson, Pfizer, and Eli Lilly. (MarketWatch)
Merck’s strength came across as the kind of trade favored for size and liquidity rather than a narrative-driven stock. The surge in volume indicated that many investors were still shifting shares well into the month’s end.
Inflation remained firmly in control. The Producer Price Index, tracking wholesale price pressures, came in hotter than anticipated in December. Economists caution tariffs may still be pushing costs higher. “This suggests businesses have been able to pass along some of the costs from tariffs as higher prices,” said Michael Hanson, an economist at JPMorgan, in a Reuters report that also highlighted the Fed’s preferred PCE inflation data set for release on Feb. 20. (Reuters)
This hits drugmakers hard since interest rates influence their valuation calculations. If investors fear the Fed will maintain tight policy for longer, the value of long-term cash flows can drop sharply.
Merck, still heavily reliant on Keytruda’s oncology sales, is moving quickly to secure fresh revenue sources ahead of rising competition. Earlier this month, the company boosted its forecast for “new growth drivers,” aiming for $70 billion in revenue from those areas by the mid-2030s as it speeds up drug rollouts. (Reuters)
Yet a stock trading close to its peak can flip fast. A weak signal on demand, pricing, or the speed of new launches could sour sentiment. And U.S. drug pricing policy risks can ignite abruptly, catching investors off guard.
Feb. 3 marks the next major event, as Merck unveils its fourth-quarter earnings and hosts the call. Investors will zero in on 2026 guidance and watch closely for updates on Keytruda, new product launches, and pipeline focus. (Merck)
