S&P 500 – 6,978.60 (+0.41%)

Dow Jones – 49,003.41 (-0.83%)

NASDAQ – 23,817.10 (+0.91%)

• MARKETS: U.S. equity markets traded mostly higher Tuesday as investors digested a busy slate of corporate earnings, with the Dow as the lone major index in negative territory.
• ECONOMY: Bank of America warns that Winter Storm Fern could temporarily shave up to 1.5% off first-quarter GDP, though economists say lost activity is likely to bounce back in Q2.
• HEALTHCARE: Major insurers including Humana and UnitedHealth fell roughly 20% after the Trump administration proposed near-flat Medicare Advantage payments, far below market expectations.
• TECHNOLOGY: Microsoft launched its next-generation AI chip, Maia 200, to compete with Google, Amazon, and Nvidia while boosting efficiency for its own AI workloads.
• AUTOMOTIVE: General Motors plans to expand U.S. production and overtake Ford as the top domestic vehicle assembler, despite facing billions in tariffs.
• DEFENSE: Redwire surged 28% after being selected for a $151 billion Defense Department contract supporting Trump’s “Golden Dome” missile defense system.
• TARIFFS & PRECIOUS METALS: Tariff policy headlines weighed on markets as Trump threatened to raise South Korean imports to 25% and impose a 100% tariff on Canada; gold hit a record $5,000 and silver climbed above $110.
• CURRENCY & BONDS: The U.S. dollar index dropped nearly 2% in 2026, while Treasury yields remained steady, with the 10-year at 4.22% and the 2-year at 3.58%.
• MONETARY POLICY: Markets widely expect the Fed to hold rates steady at 3.5%–3.75% as the first FOMC meeting of the year concludes.
• LABOR & INFLATION: Jobless claims averaged 202,000, the unemployment rate fell to 4.4%, and core CPI rose 2.6% year-over-year in December, with inflation showing signs of stability.
• EARNINGS: S&P 500 earnings are expected to grow roughly 7% in Q4, pushing 2025 full-year growth to just over 11%, supported by strong results from United Parcel Service, Raytheon, and General Motors.
• ENERGY & COMMODITIES: Energy stocks rose on U.S.–Iran tensions and winter storms, with natural gas surging as freezing weather increased heating demand and disrupted supplies.
• TECH & INNOVATION: Nvidia rose after China advised local firms to prep orders for its H200 chip; Intel tumbled on weaker guidance, Zoom and CoreWeave gained, and Micron announced a $24B investment in Singapore.
• OTHER NOTABLE MOVERS: Boeing slipped despite positive cash flow, Apple rallied after a JPMorgan upgrade, UnitedHealth, Humana, and CVS fell on earnings, and Michael Burry disclosed buying GameStop shares.

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“What good is the warmth of summer, without the cold of winter to give it sweetness?” — John Steinbeck

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Notable Stocks

• Nvidia (NVDA)
• CoreWeave (CRWV)
• Intel (INTC)
• Boeing (BA)
• Redwire (RDW)

Weekly Notables

Redwire Shares Soar After Joining Major Defense Contract Tied to Trump’s ‘Golden Dome’

Shares of space and defense company Redwire surged nearly 28% on Tuesday after the firm was named as a participant in a massive Defense Department contract supporting President Donald Trump’s proposed “Golden Dome” missile defense system. Redwire is among thousands of vendors selected under a contract valued at up to $151 billion, led by the Missile Defense Agency, to develop new defense, aerospace, and cybersecurity capabilities aimed at protecting the United States.

GM Aims to Surpass Ford in U.S. Vehicle Production Despite Up to $4 Billion in TARIFFS

General Motors said it expects to ramp up U.S. vehicle production and ultimately overtake Ford as the largest assembler of vehicles in the country, even as the automaker faces billions of dollars in tariff-related costs. GM CEO and Chair Mary Barra outlined the goal Tuesday as the company reported 2025 earnings and issued its 2026 outlook, which includes an estimated $3 billion to $4 billion hit from TARIFFS. That figure is broadly in line with the $3.1 billion in tariff costs GM incurred last year, despite levies not being in place for the full year.

Earnings Spotlight: Tesla (TSLA)

Tesla is set to report its latest financial results after the market closes on Wednesday, with traders anticipating a sizable move from the electric vehicle maker's stock following the results. Options pricing suggests traders expect Tesla's stock could move about 5% in either direction by the end of the week. For the fourth quarter, Tesla is expected to report revenue of $25.1 billion, down about 2.4% from the same time a year ago, while adjusted earnings per share are forecast at $0.46, down from $0.60 last year, according to estimates compiled by Visible Alpha.

What's Ahead

Corporate earnings are dominating most investor attention this week, with more than 90 S&P 500 companies reporting results, including four members of the Magnificent 7: Apple, Microsoft, Meta, and Tesla.

Wednesday (Jan. 28): Advanced International Trade in Goods, Advanced Retail Inventories, Advanced Wholesale Inventories, EIA Crude Oil Inventories, MBA Mortgage Applications Index. Earnings from Amphenol Corp. (APH), ASML Holding NV (ASML), AT&T Inc. (T), Automatic Data Processing Inc. (ADP), Danaher Corp. (DHR), General Dynamic (GD), GE Vernova Inc. (GEV), International Business Machines Corp. (IBM), Lam Research Corp. (LRCX), Las Vegas Sands (LVS), Meta Platforms (META), Microsoft Corp. (MSFT), ServiceNow Inc. (NOW), Starbucks (SBUX), Tesla Inc. (TSLA), United Rentals Inc. (URI).

Thursday (Jan. 29): Continuing Claims, EIA Natural Gas Inventories, Factory Orders, Initial Claims, Trade Balance, Wholesale Inventories. Earnings from Apple Inc. (AAPL), Blackstone Inc. (BX), Caterpillar Inc. (CAT), Honeywell International Inc. (HON), KLA corp. (KLAC), Lockheed Martin Corp. (LMT), Mastercard Inc. (MA), Parker-Hannifin Corp. (PH), SanDisk Corp. (SNDK), Visa Inc. (V), Western Digital Corp. (WDC).

Friday (Jan. 30): Producer Price Index (PPI), Chicago Purchasing Managers' Index (PMI). Earnings from Air Products and Chemicals Inc. (APD), American Express Co. (AXP), AON PLC (AON), Chevron Corp. (CVX), Colgate-Palmolive Co. (CL), Exxon Mobil Corp. (XOM), Regeneron Pharmaceuticals Inc. (REGN), Verizon Communications Inc. (VZ).