Morning Brew January 28 2026

Good morning,

Despite the worst consumer confidence numbers in 12 years and a significant shock to healthcare stocks, the S&P 500 rose for the fifth day in a row, closing at a new record high. The Dow lost 0.8% as UnitedHealth dropped around 20%. The Nasdaq 100 showed a positive trend, increasing by 0.88%. In Europe, the Stoxx 50 gained approximately 0.5%, while the DAX lost 0.15%. Among tech giants, Microsoft rose by 2.2%, Apple by 1.1%, Micron by 5.4%, and Broadcom by 2.4%. General Motors saw a surge of 8.8% after raising its 2026 guidance. UnitedHealth fell by 19.6% due to poor Q4 earnings and lower rate increases in Medicare plans, while CVS dropped by 14.1%. Boeing slipped by 1.6%. Post-market, Seagate gained an additional 8% after forecasting strong Q3 revenue and earnings, resulting in gains for Western Digital, SanDisk, and Micron, which were up between 3% to 6%.

After the significant move we saw when gold and silver broke key levels on Friday, it is interesting to note the S&P just below 7,000 ahead of crucial events. All eyes will be on Meta, Microsoft, and Tesla tonight as the first of the mega-tech companies reporting. Their results will test the resilience of the AI trade that has underpinned Wall Street's rally for much of the past year. In total, 102 S&P 500 companies are set to release earnings results this week. Of the 64 that had reported by Friday, 79.7% have exceeded analyst expectations, according to data compiled by LSEG.

Additionally, the Federal Reserve is expected to set rates today, and Jerome Powell will hold his press conference. No significant action is anticipated, and it remains uncertain how consequential his speech will be, especially as the announcement of a new Fed chair is expected soon.

Donald Trump made public statements yesterday, sounding somewhat more conciliatory regarding the violence in Minnesota. ICE is currently collaborating with local authorities to calm the situation. Regarding the U.S. dollar, Trump remarked that it represents great value when asked if he thought it had declined too much. The USD is at a four-year low. EUR/USD is rapidly approaching 1.20, currently at 1.1990, USD/JPY is trading at 152.70, and GBP/USD at 1.38.

Precious metals are strong again, with gold above 5,265, silver testing 115, and platinum at 2,670. This is not necessarily a fundamentally driven move; expect volatility. Trade safely, as the market feels complacent for the inherent event risk and month-end dynamics. I will be taking a week off starting Friday, which is always a good source of volatility.

Wednesday January 28

Data Australia CPI, Bank Of Canada, US Rate Decision

Earnings ASML, AT&T Starbucks, Microsoft, Meta, Tesla, IBM,

Speakers:  Jerome Powell

Thursday January 29

Data EU Consumer Confidence, US initial Jobless Claims, Factory Orders

Earnings :  Mastercard, Visa, Apple, SAP, SANDISK

Friday January 30

Data Tokyo CPI, Swiss KoF

Earnings SoFi, American Express Verizon,  Chevron, ExxonMobile,