S&P 500 – 6,796.86 (-2.06%)

Dow Jones – 48,488,59 (-1.76%)

NASDAQ – 22,954.32 (-2.39%)

• Market Volatility: Investors face a choppy start to trading as fears of a U.S.-EU trade war mount ahead of earnings season, following new tariff threats from Trump and potential EU retaliation.
• Supreme Court: The Supreme Court will hear arguments on Jan. 21 on whether President Trump can fire Federal Reserve Governor Lisa Cook while her lawsuit challenging the move is pending.
• U.S.-EU Relations: Trump’s renewed push to acquire Greenland and threats of new tariffs have escalated tensions with Europe, prompting warnings of a strong and coordinated EU response.
• Retail Prices: Amazon CEO Andy Jassy said Trump’s tariffs are beginning to push some prices higher as sellers exhaust pre-tariff inventory and face rising costs.
• Artificial Intelligence: OpenAI said its annualized revenue surpassed $20 billion in 2025, driven by expanding computing capacity, user growth, and new enterprise partnerships.
• Earnings & Markets: European stocks fell and U.S. futures slid after Trump threatened 10% tariffs on eight European countries, with Netflix earnings also in focus.
• Safe-Haven Assets: Gold and silver hit record highs as geopolitical tensions fueled demand for havens, with silver jumping more than 7% and gold rising nearly 3%.
• Bond Market: The 30-year Treasury yield rose to 4.909% as trading resumed after the U.S. holiday and investors reacted to renewed tariff uncertainty.
• Market Fear Gauge: The VIX jumped to its highest level since late November, reflecting heightened investor anxiety.
• Energy Markets: Crude oil prices rose as traders weighed geopolitical risks and potential supply disruptions.
• Cryptocurrency: Bitcoin futures fell nearly 5% even as Strategy disclosed a $2.13 billion bitcoin purchase over the past eight days.
• Electric Vehicles: Tesla is expected to benefit from Canada’s removal of 100% tariffs on Chinese-made EVs due to its Shanghai production and established Canadian sales network.
• Obituary: Legendary Italian fashion designer Valentino Garavani has died in Rome at the age of 93, the Valentino Foundation said.
• Mergers & Acquisitions: GSK agreed to buy RAP Therapeutics for $2.2 billion, strengthening its food allergy treatment portfolio.
• Earnings Reaction: 3M shares fell after the company beat earnings expectations but missed on revenue in the fourth quarter. Netflix shares fell in after-hours trading Tuesday after the streaming giant issued weaker-than-expected guidance for early 2026 and warned of slowing growth, overshadowing record subscriber levels and surging advertising revenue.
• Analyst Action: Hawaiian Electric shares declined after Jefferies issued a Sell rating with a $12.50 price target.
• Big Tech: All seven “Magnificent Seven” stocks fell as investors rotated out of risk assets.
• Media Deal: Netflix has reportedly revised its $72 billion bid for Warner Bros. Discovery to an all-cash offer.
• Legal: Estée Lauder was sued by startup Nomi Beauty, which alleges the company stole its technology after ending contracts in 2018 and 2020.
• Transportation: JB Hunt shares fell after the company reported a year-over-year revenue decline and cited soft demand for final-mile services.
• Banking: JPMorgan Chase shares slipped after Trump threatened legal action, accusing the bank of “debanking” him after the Jan. 6 Capitol riot.

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“Europe will be forged in crises and will be the sum of the solutions adopted for those crises.” – Jean Monnet

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Notable Stocks

• Nvidia (NVDA)
• 3M (MMM)
• Tesla (TSLA) 
• Netflix (NFLX)
• Hawaiian Electric (HE)

Weekly Notables

Trump Tariff Threats, Greenland Standoff Jolt Markets and Fuel US-EU Tensions

Over the weekend, Trump said eight NATO countries would face 10% import duties unless the U.S. secured a deal to purchase the Danish territory. He escalated the dispute on Monday by renewing his push for Greenland as the EU weighed $108 billion in retaliatory tariffs and considered deploying its “anti-coercion instrument,” which could affect up to $8 trillion in U.S. assets. Trump also threatened a 200% tariff on French wine after President Emmanuel Macron rejected an invitation to join his proposed “Board of Peace.” 

Amazon CEO says Trump Tariffs are Beginning to Push Prices Higher

Amazon CEO Andy Jassy said President Donald Trump’s tariffs are starting to show up in the prices of some products, as sellers grapple with higher import costs. Speaking Tuesday with CNBC’s Becky Quick at the World Economic Forum in Davos, Switzerland, Jassy explained that Amazon and many third-party sellers initially tried to blunt the impact of the tariffs by stockpiling inventory in advance. However, most of that pre-purchased supply was depleted by last fall.

Earnings Spotlight: Johnson & Johnson (JNJ)

Johnson & Johnson is scheduled to release its fourth-quarter fiscal 2025 results before the market opens on Wednesday, January 21. Analysts expect a sharp rise in earnings but a modest growth in sales, as the world’s largest healthcare products maker pursues portfolio diversification. Investors will pay particular attention to JNJ’s FY26 guidance to assess the demand across both its drug portfolio and medical devices segment.

What's Ahead

Attention now turns to the World Economic Forum in Davos, where Trump is expected to meet with global leaders over the Greenland dispute and deliver a key address today.

Wednesday (Jan. 21): Building Permits, Construction Spending, Housing Starts, MBA Mortgage Applications Index, Pending Home Sales. Earnings from CACI International Inc. (CACI), Charles Schwab Corp. (SCHW), Halliburton Co. (HAL), Johnson & Johnson (JNJ), Kinder Morgan Inc. (KMI), Knight-Swift Transportation Holdings (KNX), Pinnacle Financial Partners Inc. (PNFP), Prologis Inc. (PLD), Rli Corp. (RLI), TE Connectivity PLC (TEL), Travelers Companies Inc. (TRV), Truist Financial Corp. (TFC).

Thursday (Jan. 22): Continuing Claims, EIA Crude Oil Inventories, EIA Natural Gas Inventories, Q3 GDP – Revised (3rd estimate), Initial Claims, PCE Prices, Personal Income, Personal Spending. Earnings from Abbott Laboratories (ABT), Alcoa Corp. (AA), Capital One Financial Corp. (COF), CSX Corp. (CSX), East West Bancorp (EWBC), Freeport-McMoRan Inc. (FCX), GE Aerospace (GE), Huntington Bancshares (HBAN), Intel Corp. (INTC), Intuitive Surgical Inc. (ISRG), McCormick & Company (MCK), Procter & Gamble Co. (PG).

Friday (Jan. 23): University of Michigan Consumer Sentiment – Final. Earnings from Booz Allen Hamilton Holding Corp. (BAH), Comerica Inc. (CMA), First Citizens BancShares (FCNCA), SLB NV (SLB), Webster Financial Corp. (WBS).