Markets Reverse as Economic Data Takes Center Stage 22/01/2026

 

HOT stories for today

Market wrap:

• US equities rallied, with the S&P 500 up about 1.2% and the Dow Jones Industrial Average gaining roughly 589 points, or 1.2%. The Nasdaq Composite climbed nearly 1.2%, while the Russell 2000 rose about 2% to a record close. Stocks accelerated early in the session after President Donald Trump said he would shelve new tariffs on Europe that were slated to take effect Feb. 1, and touted a “framework” for an agreement involving Greenland. Trump, who has recently intensified his push for US control of the territory, said Wednesday on Truth Social that he and NATO Secretary General Mark Rutte had “formed the framework of a future deal with respect to Greenland.”
• He later told CNBC the US had “a concept of a deal.” Equities had already been higher after Trump said at the World Economic Forum in Davos that he wouldn’t seek to acquire Greenland by force. Fresh catalysts arrive Thursday, with traders awaiting the personal consumption expenditures price index, the Federal Reserve’s preferred inflation gauge, which can capture shifts in consumer spending patterns. Weekly jobless claims are also due. Earnings remain in focus, with results expected Thursday from Procter & Gamble, Intel and GE Aerospace.

Big Tech’s Grip Loosens as Mag 7 Lag Stretches On

• The “Magnificent Seven” have shifted from market leaders to laggards, with the Roundhill Magnificent Seven ETF down more than 7% since Halloween versus a 0.6% drop in the S&P 500, according to FactSet. The divergence has dragged the ETF’s price ratio versus the SPDR S&P 500 Trust to its lowest level since early September, highlighting how decisively investors have rotated away from megacaps. Valuations have cooled alongside returns. The group’s forward price-to-earnings ratio fell to its lowest since Sept. 12 on Wednesday, after months of selling in the largest tech names and stronger performance elsewhere, from small caps and cyclicals to value stocks and international equities.
• Even within technology, the split has widened, with semiconductor shares holding up while software has struggled. The narrowing of leadership has been stark over the past three years. All seven members beat the S&P 500 in 2023, but that fell to four in 2024, and only Alphabet and Nvidia have outperformed the benchmark in 2025. Some strategists see the underperformance as a clearing event after crowded positioning built up last year, arguing the recent weakness could present selective buying opportunities,  potentially influenced by the US dollar’s next move. Others are leaning in ahead of earnings, saying megacaps’ operating leverage remains an advantage and that concerns about AI spending pressuring margins may fade as expectations remain conservative.

Stocks on the move:

• Halliburton (HAL) shares climbed after the oilfield-services firm posted a “beat-and-raise” quarter. Adjusted earnings came in at $0.69 a share versus the $0.54 consensus.
• After the close, Kinder Morgan (KMI) edged higher following a decisive fourth-quarter “beat-and-raise,” powered by record results in its natural-gas pipeline business. Adjusted EPS was $0.39, topping estimates of $0.36.
• Charles Schwab (SCHW) slipped initially after revenue of $6.34 billion narrowly missed expectations of $6.38 billion. The brokerage highlighted the completion of its TD Ameritrade integration and record client assets of $11.9 trillion. Net interest margin rose to 2.90%, signaling the “cash sorting” headwinds that weighed on results for roughly two years may be stabilizing.
• Ally Financial (ALLY) fell early despite an earnings beat, reporting $1.09 a share versus the $1.03 estimate. The slide followed cautious 2026 guidance and ongoing worries about auto-loan credit quality, overshadowing a new $2 billion share repurchase program and record consumer loan originations.
• Johnson & Johnson (JNJ) declined after a mixed fourth quarter. Revenue topped expectations at $24.6 billion, up 9.1%, but adjusted EPS of $2.46 missed the $2.53 consensus. Strength in oncology, including Darzalex, and MedTech was offset by a near-50% drop in Stelara sales amid biosimilar competition, while 2026 guidance was viewed as conservative.

Watchlist: PG, GE, INTC, FCX, NVDA, MSFT, TSLA, COIN, SLV, KMI

Key Economic Events Today:

EST time

08:30 am: USD Final GDP
08:30 am: USD Unemployment Claim
10:00 am: USD Core PCE
10:00 am: USD Personal Income



Earnings

BMO ( Before Market Open): Procter and Gamble (PG), GE Aerospace (GE), Abbott Laboratories (ABT), Freeport McMoran Inc.
AMC (After Market Close): Intel Corp. (INTC), Intuitive Surgical (ISRG), Capital One (COF)


The TEFS Analyst team wishes you a successful day!