Stocks ended last week with modest losses after a volatile five days of market-moving economic data, geopolitics, and Fed drama. Last week several big banks began the quarterly earnings season with weaker-than-expected revenue. The Standard & Poor’s 500 Index slid 0.38% and ended Friday's session at 6,940.01. Despite the slight weekly drop, the market benchmark is up 1.4% this month. The Nasdaq Composite Index skidded 0.66% closing the week at 23,515.39. The Dow Jones Industrial Average edged down 0.29% closing the week at 49,359.33. By contrast, the MSCI EAFE Index, which tracks developed overseas stock markets, rose 1.41%.1,2 Choppy Trading Stocks started the week lower after pre-opening bell news that the Justice Department had launched a criminal investigation into Federal Reserve Chair Jerome Powell. A statement issued Tuesday morning by central bankers worldwide helped tamp down market volatility.3,4 The president backtracked on his preferred candidate to be the next Fed Chair. His comments led investors to believe that his new choice would be more market-friendly but perhaps less likely to adjust interest rates.8 The White House called for a 10% cap on credit card interest rates for 1 year, putting pressure on financial stocks. Meanwhile, news that headline inflation matched forecasts while core inflation came in cooler than expected was well received by investors.5,6 Despite solid retail sales and wholesale inflation reports for November, stocks were under pressure on Wednesday due to geopolitical tensions and disappointing Q4 results from a handful of financial stocks.7 JPMorgan Chase (JPM), Wells Fargo (WFC) and Citigroup (C) were among the banks that disappointed investors this week. JPMorgan and Wells Fargo both surpassed expectations for Q4 adjusted earnings per share but revenue missed Street views amid declines in investment banking. Citigroup, meanwhile, missed expectations on both the top and bottom lines. JPMorgan Chief Executive Jamie Dimon issued a warning that "markets seem to underappreciate the potential hazards - including from complex geopolitical conditions, the risk of sticky inflation and elevated asset prices." The financial sector had the largest percentage drop of the week, falling 2.3%, followed by a 2% decline in consumer discretionary and a 1.5% slip in communication services. Health care and technology also edged lower. In the financial sector, Wells Fargo (WFC) was among the top decliners with a 7.9% loss amid its weaker-than-expected Q4 revenue. Wells Fargo's Q4 corporate and investment banking revenue edged up to $4.62 billion from $4.61 billion in the prior-year quarter, but was weighed down by a 7% decline in investment banking. Then chip manufacturers and banks led a rebound, recouping most of the week’s losses. Cruise operators were among the hardest-hit stocks in consumer discretionary, with Royal Caribbean Group (RCL) shares falling 11% and Norwegian Cruise Line Holdings (NCLH) and Carnival (CCL) slipping 10% each.On the upside, real estate jumped 4.1%, followed by a 3.7% climb in consumer staples and a 3% increase in industrials. Energy, utilities and materials also edged higher.Top gainers in real estate included shares of Crown Castle (CCI), which climbed 8.6% as the company ended its infrastructure agreement with DISH Wireless after default on payments to the company. Crown Castle exercised its right to shares of terminate the agreement and recover over $3.5 billion in payments owed. The US stock market was closed on Monday for the Martin Luther King holiday. Finally, if you watched the College Playoff Championship on Monday, it was legendary! Congratulations to the Indiana University Hoosiers Football program for the first time in program history, the Indiana Hoosiers are college football national champions. The Hoosiers took down the Miami Hurricanes, 27-21, in an absolute thriller to complete their undefeated season under head coach Curt Cignetti. The program has officially punched it's ticket as a Big 10 and national powerhouse program. Meanwhile, my Oregon Ducks, (University of Oregon) finished their fantastic seson with a 13-2 record, (8-1 Big 10). |
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Source: YCharts.com, January 17, 2026. Weekly performance is measured from Monday, January 12, to Friday, January 16. TR = total return for the index, which includes any dividends as well as any other cash distributions during the period. Treasury note yield is expressed in basis points. |
This week: Key Economic Data Wednesday: Construction Spending* (Nov). Pending Home Sales. Thursday: Weekly Jobless Claims. Gross Domestic Product, Q3 (first revision). Personal Consumption & Expenditures (PCE) Index* (Nov). Friday: Consumer Sentiment. Purchasing Managers’ Index (PMI)—Services & Manufacturing. * indicates publication of a report delayed by the government shutdown in October and November Source: Investors Business Daily - Econoday economic calendar; January 16, 2026. The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to provide accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts are also subject to revision. This Week: Companies Reporting EarningsTuesday: Netflix, Inc. (FLIX), Interactive Brokers Group, Inc. (IBKR), 3M Company (MMM), U.S. Bancorp (USB) Wednesday: Johnson & Johnson (JNJ), The Charles Schwab Corporation (SCHW), Prologis, Inc. (PLD) Thursday: Procter & Gamble Company (PG), GE Aerospace (GE), Intel Corporation (INTC), Abbott Laboratories (ABT), Intuitive Surgical (ISRG), Capital One Financial Corporation (COF) Source: Zacks, January 16, 2026. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule their earnings reports without notice. |
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"As you get older your willingness to tell more of the truth is awakened and you don't have to think about it or imagine it because now you know this to be true." – Keith David |
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Tax Tips for Those in the MilitaryThe Internal Revenue Service has certain special tax breaks and programs for members of the U.S. Armed Forces. Earned Income Tax Credit Signing Joint Returns This information is not a substitute for individualized tax advice. Please consult with a qualified tax professional to discuss your specific tax issues. Tip adapted from IRS.gov9 |
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Stay Healthy During Flu SeasonConventional wisdom holds that flu season occurs in Fall and Winter, but the truth is it can vary widely from year to year and region to region. Fortunately, you may reduce your risk this coming flu season with a few simple steps. ● Get the flu vaccination: While getting the vaccine may not prevent you from getting a strain of the flu, it may help you avoid one of the other strains. This is especially important for anyone with a chronic health condition and those 65 and older. While this information should not substitute for medical advice from your healthcare provider, adopting better habits, such as frequent handwashing, wearing a face mask, and avoiding anyone who is ill, may help you and your loved ones stay healthy this flu season. Tip adapted from Centers for Disease Control10 |
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My three eyes blink, and I give you commands. Although I can’t see, the changing colors in me prompt you to obey me with your wheels, feet and hands. What am I? Last Week's Riddle: You can separate them with a word, yet they are mostly inseparable. What are they? Answer: Your lips. |
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Red Panda (Ailurus fulgens) Rhenen, Netherlands |
Footnotes And Sources 1. WSJ.com, January 16, 2026 11. MT Newswires, YCharts.com, January 12-16, 2026 |
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