Monday's market session served as a stark reminder that even in broad selloffs, opportunities exist for those who know where to look. While the Dow Jones Industrial Average shed roughly 350 points and financial stocks endured their worst day in months, a handful of companies bucked the trend.

Leading the winners was Walmart, which gained 1.86% on news of its impending inclusion in the Nasdaq-100 index. Caterpillar added 1.43%, benefiting from its position as an infrastructure and industrial bellwether. Procter & Gamble rose 0.94%, as investors sought refuge in consumer staples.

Walmart's Nasdaq-100 Moment

The retail giant's outperformance wasn't accidental. On January 20, 2026, Walmart will officially join the Nasdaq-100 index, replacing a departing member in the annual reconstitution. The addition is expected to trigger billions of dollars in automatic buying from index-tracking funds.

This technical catalyst comes atop already strong fundamentals. Walmart has emerged as the clear winner in the "value rotation" sweeping American retail, capturing budget-conscious shoppers abandoning higher-priced competitors. While Target struggles to find its footing under new leadership, Walmart's grocery dominance and e-commerce investments continue paying dividends.

"Walmart is running on news it will join the NASDAQ-100 on January 20, 2026, which should increase its investor exposure and attract billions in capital inflows from index-tracking funds."

— Market analysis, January 12, 2026

Caterpillar: The Infrastructure Trade

Caterpillar's gains reflect a different thesis entirely. The heavy equipment manufacturer stands to benefit from multiple tailwinds: ongoing infrastructure spending from the Inflation Reduction Act, data center construction driven by AI demand, and potential new stimulus under the Trump administration.

Monday's gain also reflected sector rotation. With financial stocks in freefall and technology under pressure from rising yields, industrial names offered relative safety. Caterpillar's dividend yield of approximately 1.8% provided additional appeal for income-seeking investors.

The company also benefits from what analysts call "pricing power"—the ability to raise prices without losing customers. In an environment where the Fed probe raises questions about monetary policy independence, companies with stable demand and pricing flexibility become more attractive.

Consumer Staples as Safe Haven

Procter & Gamble's modest gain exemplified the classic defensive playbook. When uncertainty spikes, investors historically rotate into companies selling products people need regardless of economic conditions: toothpaste, laundry detergent, diapers.

P&G's consistent dividend growth—the company has raised its payout for 68 consecutive years—provides ballast in volatile markets. The stock's beta of roughly 0.4 means it historically moves less than half as much as the broader market in either direction.

The Broader Defensive Theme

Beyond these three winners, Monday's session showed investors gravitating toward quality and stability. Utilities held up better than financials. Healthcare outperformed technology. Companies with strong balance sheets and consistent cash flows attracted premium valuations.

This defensive posture reflects multiple concerns converging simultaneously:

  • The Department of Justice probe into Fed Chair Jerome Powell raises unprecedented questions about central bank independence
  • Trump's credit card rate cap proposal threatens bank profitability
  • Tuesday's CPI report could reignite inflation fears
  • Bank earnings this week face heightened scrutiny

Portfolio Implications

For investors, Monday's divergence offers several lessons. First, diversification across sectors proved its value—portfolios heavily concentrated in financials suffered disproportionate losses. Second, quality factors like dividend consistency and pricing power matter more during periods of uncertainty.

The Walmart story also illustrates how technical factors—index inclusion, fund flows—can override broader market sentiment. Investors who anticipated the Nasdaq-100 addition captured gains even as the index itself declined.

Looking ahead, the question becomes whether defensive leadership will persist. If Tuesday's CPI report comes in cooler than expected and bank earnings reassure investors, the rotation could reverse quickly. But if uncertainty lingers, the quality trade may have further to run.

In markets dominated by fear, sometimes the best opportunities are simply the names that refuse to fall.