[BRIEFING.COM] The S&P 500 (+0.8%), Nasdaq Composite (+1.1%), and DJIA (+1.1%) continue to chart session highs shortly after midday. 

Shares of JPMorgan Chase (JPM 306.12, +4.08, +1.35%) have dipped from earlier session highs after Fox Business reported that President Trump has filed a $5 billion lawsuit against the company and CEO Jamie Dimon over alleged politically motivated debanking.

Elsewhere in the financials sector (+0.9%), Bloomberg reports that Bank of America (BAC 52.98, +0.90, +1.74%) and Citigroup (C 115.67, +1.81, +1.59%) are considering credit card options with a 10% interest rate amid President Trump's recent call for a one-year 10% cap on credit card interest rates. 

[BRIEFING.COM] The major averages are continuing their steady advance at midday. 

This morning's batch of earnings reports has resulted in several notable moves today. 

Procter & Gamble (PG 150.18, +4.12, +2.82%) is modestly higher after reporting its Q2 (Dec) results this morning. The packaged goods giant delivered a slight EPS beat, while revenue increased 1.5% yr/yr to $22.2 billion, in line with expectations. PG reiterated this was likely the softest quarter of the year, as a challenging consumer and competitive backdrop met a tough U.S. comparison tied to last year's port-strike and pantry-loading dynamics.

Meanwhile, GE Aerospace (GE 301.20, -17.30, -5.43%) delivered a robust Q4 performance that exceeded analyst expectations on both the top and bottom lines, yet the stock is selling off sharply following the earnings release. The company issued FY26 adjusted EPS guidance of $7.10 to $7.40, which stands above consensus estimates at the midpoint, but shares remain under pressure as investors weigh the outlook against a significant 70% year-over-year run-up. 

Abbott Labs (ABT 110.16, -10.57, -8.76%) is also trading sharply lower following its Q4 earnings report, mirroring the negative reaction seen in peer Johnson & Johnson (JNJ 220.20, +2.19, +1.00%) after its Q4 results. Abbott delivered in-line EPS, consistent with its recent trend of modest beats or in-line prints, but revenue and near-term guidance disappointed.

[BRIEFING.COM] The stock market has seen a continuation of yesterday's strength, though the market has advanced in a more orderly fashion this morning. 

The S&P 500 (+0.7%), Nasdaq Composite (+1.0%), and DJIA (+0.8%) hold similar gains amid broad strength. Seven S&P 500 sectors trade higher, and losses are contained to 0.3% or narrower. 

Mega-cap stocks, which were among the first to show weakness during yesterday's intraday slide, are posting solid gains today. As a result, the communication services (+1.6%), consumer discretionary (+1.1%), and information technology (+0.9%) sectors dot the top of today's leaderboard. Meta Platforms (META 636.79, +23.83, +3.89%) is an early standout, though all of the "magnificent seven" names trade higher. 

Outside of the S&P 500, the Russell 2000 (+1.3%) looks to outperform the major averages once again, while the S&P Mid Cap 400 (+0.5%) holds a more modest gain. 

After a volatile rally yesterday, the market has settled into a more measured tone as geopolitical tensions between the U.S. and Europe temporarily subside. Adding to the calmer backdrop, the delayed release of the November Personal Income and Spending report was largely in line with expectations. The core PCE Price Index, the Fed's preferred inflation gauge, was unchanged at 2.8% in November and is not expected to influence the Fed's outlook.

The CBOE Volatility Index is down 7.0% to 15.71. 

[BRIEFING.COM] The major averages continue to inch higher, now sitting a touch off of their opening high levels. 

The consumer discretionary sector (+1.0%) has advanced at a quicker pace and is now one of the best-performing S&P 500 sectors. Travel-related names such as Expedia Group (EXPE 281.04, +9.48, +3.49%) and Royal Caribbean (RCL 284.95, +7.18, +2.58%) are among some of the top movers this morning, while Amazon (AMZN 234.22, +2.91, +1.26%) and Tesla (TSLA 437.23, +5.79, +1.34%) provide solid mega-cap leadership. 

The Bureau of Economic Analysis released the Personal Income/Outlays report for November alongside the delayed report for October. In November, Personal Income increased 0.3% month-over-month (Briefing.com consensus 0.4%) after a 0.1% increase in October (Briefing.com consensus 0.3%). Personal spending was up 0.5% in November (Briefing.com consensus 0.4%) after also increasing 0.5% in October (Briefing.com consensus 0.4%).

The PCE Price Index was up 0.2% month-over-month in October and November, as expected, while the core PCE Price Index was also up 0.2% for both months, which was also expected. On a year-over-year basis, the PCE Price Index decelerated to 2.7% in October but edged back up to 2.8% in November. The Core PCE Price Index also decelerated to 2.7% in October and edged back up to 2.8% in November.

The key takeaway from the report is that the core PCE Price Index, which is the Fed's preferred inflation gauge, was at 2.8% in November, essentially unchanged from September. As a result, this report should not alter the Fed's outlook since the inflation picture remains largely unchanged.

[BRIEFING.COM] The S&P 500 (+0.5%), Nasdaq Composite (+0.7%), and DJIA (+0.7%) trade in a relatively steady range, little changed by this morning's inflation readings. The Nasdaq Composite has reclaimed its 50-day moving average (23,268.96) with today's gain. 

Action remains somewhat subdued as the majority of S&P 500 sectors trade within 0.7% of their unchanged levels.

Breadth figures remain solid, with advancers outpacing decliners by a roughly 9-to-4 margin on the NYSE and a roughly 3-to-1 clip on the Nasdaq. 

[BRIEFING.COM] The S&P 500 (+0.3%), Nasdaq Composite (+0.5%), and DJIA (+0.4%) hold decent gains shortly after the open, though stocks have dipped from stronger opening gains. 

Strength is mixed, with six S&P 500 sectors trading higher. The communication services sector (+1.3%) is the early standout, as Meta Platforms (META 631.69, +18.73, +3.06%) and Alphabet (GOOG 331.88, +3.50, +1.07%) both provide solid leadership.

Mega-caps are garnering some buy-the-dip interest this morning, as the Vanguard Mega Cap Growth ETF is up 0.6%, though it is still down 1.1% for the week.

Gains elsewhere are limited to 0.5% or less, though the top-weighted information technology sector (+0.5%) is among the better performers. 

Losses are also modest, with the utilities sector (-0.6%) holding the widest loss.

Just released, personal income increased 0.3% month-over-month in November (Briefing.com consensus: 0.4%).

Personal spending jumped 0.5% month-over-month (Briefing.com consensus: 0.4%).

The PCE Price Index was up 0.2% month-over-month (Briefing.com consensus 0.2%) in November, and the core PCE Price Index, which excludes food and energy, was up 0.2% (Briefing.com consensus 0.2%). 

Stocks are indicated higher at the open as reduced geopolitical tension supports renewed buy-the-dip interest.

Initial jobless claims for the week ending January 17 were just 200,000 (Briefing.com consensus: 200,000), up 1,000 from the prior week's revised level. Continuing jobless claims for the week ending January 10 were 1.849 million, down 26,000 from the prior week's revised level.

The key takeaway from the report is that the low level of initial jobless claims substantiates the view that the labor market is still operating in a low-firing environment, which is supportive for consumer spending activity and the growth outlook.

Q3 real GDP was revised slightly higher to 4.4% (Briefing.com consensus: 4.3%) from the advance estimate of 4.3%, with an upward revision to exports and investment superseding a slight downward revision to consumer spending. The GDP Deflator was unrevised at 3.8% (Briefing.com consensus: 3.7%).

The key takeaway from the report is that it is a dated and little-changed report, so its market-moving capacity is nil; however, it is a headline reminder that the economy was running on the hotter side of things in the third quarter.

The S&P 500 futures currently trade 50 points above fair value. 

Equity indices in the Asia-Pacific region climbed on Thursday with South Korea's Kospi (+0.9%) reaching another fresh record. Japan reported a smaller-than-expected trade surplus for December as imports grew more than expected while export growth undershot estimates. Australia reported strong employment figures for December with the Unemployment Rate unexpectedly falling to 4.1% from 4.3%, which boosted expectations for a rate hike in February. Expectations for a near-term rate hike from the Bank of Japan also increased. The BoJ will release its latest statement overnight, but a rate hike is not expected just yet.

• In economic data:
  • Japan's December trade surplus JPY105.7 bln (expected JPY357.0 bln; last JPY316.7 bln). December Imports 5.3% yr/yr (expected 3.6%; last 1.3%) and Exports 5.1% yr/yr (expected 6.1%; last 6.1%)
  • South Korea's Q4 GDP -0.3% qtr/qtr (expected 0.1%; last 1.3%); 1.5% yr/yr (expected 1.9%; last 1.8%)
  • Hong Kong's December CPI 0.3% m/m (last 0.0%); 1.4% yr/yr (last 1.2%)
  • Australia's December Employment Change 65,200 (expected 28,300; last -28,700) and full Employment Change 54,800 (last -65,300). December Unemployment Rate 4.1% (expected 4.4%; last 4.3%) and Participation Rate 66.7% (expected 66.8%; last 66.6%)
  • New Zealand's December Electronic Card Retail Sales -0.1% m/m (last 1.2%); -0.5% yr/yr (last 1.6%)

---Equity Markets---

• Japan's Nikkei: +1.7%
• Hong Kong's Hang Seng: +0.2%
• China's Shanghai Composite: +0.1%
• India's Sensex: +0.5%
• South Korea's Kospi: +0.9%
• Australia's ASX All Ordinaries: +0.7%

Major European indices trade in the green while regional sovereign debt is also on the rise. Automotive names are among the outperformers after Volkswagen and Michelin reported strong cash flow for 2025. German Chancellor Merz called for "significant" defense investment. Bundesbank expects only modest growth in the German economy in Q1.

• In economic data:
  • U.K.'s December Public Sector Net Borrowing GBP11.58 bln (expected GBP13.40 bln; last GBP10.49 bln). January CBI Distributive Trades Survey -17 (expected -35; last -44)

---Equity Markets---

• STOXX Europe 600: +1.0%
• Germany's DAX: +1.1%
• U.K.'s FTSE 100: +0.5%
• France's CAC 40: +1.1%
• Italy's FTSE MIB: +1.2%
• Spain's IBEX 35: +0.9%

The S&P 500 futures currently trade 40 points above fair value. 

Just released, initial jobless claims for the week ending January 17 increased by 1,000 to 200,000 (Briefing.com consensus: 200,000) from an upwardly revised 199,000 (from 198,000).

Continuing jobless claims for the week ending January 10 decreased by 26,000 to 1.849 million. The prior reading was downwardly revised to 1.875 million from 1.884 million.

Q3 GDP was revised up to 4.4% (Briefing.com consensus: 4.3%) from 4.3%.

The GDP deflator was unrevised at 3.8% (Briefing.com consensus: 3.7%).

Equity futures point to a higher open this morning after stocks captured broad gains amid easing geopolitical tensions yesterday. The market had a sort of roller coaster session yesterday, rising sharply out of the gate after President Trump said he would not use force to acquire Greenland, ceding the bulk of those gains without a clear headline catalyst, and then retaking them late in the session after President Trump announced there is a "concept of a deal" regarding Greenland and he will not impose new tariffs on NATO members.

The New York Times reports that Denmark could give the U.S. sovereignty over small pockets of land in Greenland where the U.S. could build bases.

While there is lingering uncertainty around the details, the market seems satisfied for the time being, knowing that a trade war with Europe has been walked back. 

In the meantime, the market has another slate of earnings reports to digest, with several regional banking names in the fold, among others. 

Today is also a relatively busy day on the data front, which will feature the October and November Personal Income and Spending reports, which include the October PCE Price Index (Briefing.com consensus 0.2%) and November PCE Price Index (Briefing.com 0.4%), the Fed's preferred inflation gauge. 

In corporate news:

• Alibaba (BABA 175.38, +6.71, +4.0%) is planning an IPO for its chipmaking unit, according to Bloomberg. 
• GE Aerospace (GE 319.00, +0.50, +0.2%) beat EPS expectations by $0.14, beat revenue expectations, and guided FY26 EPS in-line. 
• Proctor & Gamble (PG 144.70, -1.36, -0.9%) beat EPS expectations by $0.02, reported revenues in-line, and reaffirmed FY26 EPS and revenue guidance.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region climbed on Thursday with South Korea's Kospi (+0.9%) reaching another fresh record. Japan's Nikkei: +1.7%, Hong Kong's Hang Seng: +0.2%, China's Shanghai Composite: +0.1%, India's Sensex: +0.5%, South Korea's Kospi: +0.9%, Australia's ASX All Ordinaries: +0.7%.

In news:

• Japan reported a smaller-than-expected trade surplus for December as imports grew more than expected while export growth undershot estimates.
• Australia reported strong employment figures for December with the Unemployment Rate unexpectedly falling to 4.1% from 4.3%, which boosted expectations for a rate hike in February.
• Expectations for a near-term rate hike from the Bank of Japan also increased. The BoJ will release its latest statement overnight, but a rate hike is not expected just yet.

In economic data:

• Japan's December trade surplus JPY105.7 bln (expected JPY357.0 bln; last JPY316.7 bln). December Imports 5.3% yr/yr (expected 3.6%; last 1.3%) and Exports 5.1% yr/yr (expected 6.1%; last 6.1%)
• South Korea's Q4 GDP -0.3% qtr/qtr (expected 0.1%; last 1.3%); 1.5% yr/yr (expected 1.9%; last 1.8%)
• Hong Kong's December CPI 0.3% m/m (last 0.0%); 1.4% yr/yr (last 1.2%)
• Australia's December Employment Change 65,200 (expected 28,300; last -28,700) and full Employment Change 54,800 (last -65,300). December Unemployment Rate 4.1% (expected 4.4%; last 4.3%) and Participation Rate 66.7% (expected 66.8%; last 66.6%)
• New Zealand's December Electronic Card Retail Sales -0.1% m/m (last 1.2%); -0.5% yr/yr (last 1.6%)

Major European indices trade in the green while regional sovereign debt is also on the rise. STOXX Europe 600: +1.0%, Germany's DAX: +1.1%, U.K.'s FTSE 100: +0.4%, France's CAC 40: +1.1%, Italy's FTSE MIB: +1.0%, Spain's IBEX 35: +0.5%.

In news:

• Automotive names are among the outperformers after Volkswagen and Michelin reported strong cash flow for 2025.
• German Chancellor Merz called for "significant" defense investment. Bundesbank expects only modest growth in the German economy in Q1.

In economic data:

• U.K.'s December Public Sector Net Borrowing GBP11.58 bln (expected GBP13.40 bln; last GBP10.49 bln). January CBI Distributive Trades Survey -17 (expected -35; last -44)

[BRIEFING.COM] The stock market faced some choppy action today, though the S&P 500 (+1.2%), Nasdaq Composite (+1.2%), and DJIA (+1.2%) finished with solid gains that saw them reclaim about half of yesterday's losses. 

Today's action was defined by three distinct market-level moves. The first of these events occurred shortly before the open as investors digested commentary from President Trump at the World Economic Forum. While President Trump reiterated his stance that the U.S. needs to acquire Greenland for national security, he said that the U.S. would not use force as a means of acquisition. Equity futures spiked in response, and the major averages set off on a course of broad-based gains after the open. 

Even after the EU announced a suspension of the Turnberry Deal, which would have suspended tariffs on all US industrial goods and established a tariff-rate quota system for a large number of US agri-food products entering the EU, the major averages continued to chart session highs until just before midday. 

Stocks then faced a sharp intraday retreat without a clear catalyst that narrowed the gains of nearly every corner of the market. Mega-cap names were among the first to show signs of weakness, and the Nasdaq Composite, which had traded over 1.0% higher, briefly entered negative territory. The top-weighted information technology sector (+0.9%) also entered negative territory after trading over 1.0% higher. 

The major averages then drifted through the early afternoon with a portion of their earlier strength before the broader market saw one final sharp intraday move. 

President Trump announced that the framework of a future deal with respect to Greenland and the entire Arctic region has been formed with Mark Rutte, Secretary General of NATO. Additionally, he said he will not impose the tariffs that were set to go into effect February 1.

Stocks rallied in response, with the major averages climbing back to earlier session high levels. 

All eleven S&P 500 sectors finished higher, and seven finished with gains of 1.0% or wider. 

The information technology sector (+1.0%) had the choppiest day but finished with a solid gain. Semiconductor names once again provided strong leadership, with the PHLX Semiconductor Index finishing 3.2% higher.  Intel (INTC 54.25, +5.69, +11.72%) was one of the top-performing S&P 500 names today, posting another monster gain that seats the stock with a 47.0% gain this year. 

Only Moderna (MRNA 49.81, +6.81, +15.84%) finished higher, rallying after the company, along with Merck (MRK 111.09, +1.64, +1.50%), reported encouraging five-year data regarding their melanoma vaccine.  The health care sector (+1.8%) was a top performer and was largely resilient to the broader market swings. 

Improvements across mega-cap names such as Tesla (TSLA 431.44, +12.19, +2.91%) and Alphabet (GOOG 328.38, +6.22, +1.93%) helped the consumer discretionary (+1.6%) and communication services (+1.4%) sectors finish higher as well. The Vanguard Mega Cap Growth ETF finished 0.9% higher after entering negative territory around midday. 

The energy sector (+2.3%) was the top gainer, trading in a stable range since the morning hours. Crude oil futures settled today's session just $0.24 higher (+0.4%) at $60.60 per barrel, but the sector was propped up by natural gas settling $0.98 higher (+25.1%) at $4.88/MMBtu. Additionally, President Trump, in his WEF address, made comments highlighting the future profitability of oil production in Venezuela.  Halliburton (HAL 33.36, +1.30, +4.05%), which has risen in conjunction with developments in Venezuela, posted a solid gain after topping earnings estimates this morning. 

United Airlines (UAL 110.96, +2.39, +2.20%) also traded higher after beating earnings estimates, while Netflix (NFLX 85.36, -1.90, -2.18%) traded lower after topping estimates but issuing soft near-term guidance. 

Outside of the S&P 500, the Russell 2000 (+2.0%) and S&P Mid Cap 400 (+1.8%) followed a similar path to that of the major averages and once again slightly outperformed them. 

While today's intraday volatility reflected lingering sensitivity to geopolitical headlines, stocks ultimately finished with broad gains that helped the S&P 500 reclaim its 50-day moving average (6,832). The market now cautiously proceeds to tomorrow's session that will feature another batch of earnings reports and key inflation data in the form of the PCE Price Index. 

U.S. Treasuries climbed on Wednesday with longer tenors reclaiming roughly half of their losses from Tuesday while the short end turned slightly positive for the week. The 2-year note yield finished unchanged at 3.60%, and the 10-year note yield settled down four basis points to 4.25%.

• Russell 2000: +8.7% YTD
• S&P Mid Cap 400: +6.5% YTD
• DJIA: +2.1% YTD
• S&P 500: +0.4% YTD
• Nasdaq Composite: -0.1% YTD

Reviewing today's data:

• Weekly MBA Mortgage Applications Index 14.1%; Prior 28.5%
• September Construction Spending -0.6% (Briefing.com consensus 0.0%); Prior was revised to 0.4% from 0.2%
• December Pending Home Sales -9.3% (Briefing.com consensus 0.7%); Prior 3.3%
• October Construction Spending 0.5% (Briefing.com consensus 0.2%); Prior -0.6%
  • The key takeaway from the report is that the rebound in October was driven by residential spending and specifically private residential improvements.