January 16, 2026

Better-than-expected economic data sent yields higher and left the major averages with minor losses today. Industrial Production jumped +0.4% vs. +0.1% estimated and yields ticked to their highest level since September. The rate on the 10-year Treasury increased to 4.228% and the two-year T-Bill landed at 3.605%. Despite higher yields equities traded on both sides of the breakeven line throughout the day. Earnings were mixed with State Street Bank (STT) and Regions Bank (RF) dropping on results while PNC (PNC) beat and traded higher. Most sectors were red but REITs (XLRE) and Industrial (XLI) outperformed. Communication Services (XLC), Healthcare (XLV), Materials (XLB) and Utilities (XLU) were the weakest market groups. One winner was Novo Nordisk (NVO) jumping +8.95% on orders for its pill version of an obesity drug. The major averages traded in a narrow range in the afternoon but slipped into the close with the DJIA down 83.11 points (-0.17%) at 49359.33. The S&P 500 eased 4.46 points (-0.06%) to 6940.01, while the NASDAQ fell 14.63 points (-0.06%) finishing at 23515.39.

Breadth was mostly negative with declining issues beating advancing issues 1.3:1 on the NYSE and 1.2:1 on the NASDAQ. Declining volume was 53% on the NYSE, but advancing volume was 54% of the NASDAQ. The VIX added 0.02 (+0.13%) and closed at 15.86. Crude oil prices rose 0.33 (+0.56%) and the February contract closed at $59.52 a barrel. Gold prices lost 33.40 (-0.72%) and finished at $4590.30 an ounce. Bitcoin (BTC) closed the session at $95,330.

Despite being options expiration day, it was a pretty quiet session. The major averages closed the week lower but the secondary indexes, including the DJ Transportation Index, small cap Russell 2000 and Philadelphia Semiconductor Index traded higher and were able to post new record highs. The NYSE is closed for MLK Day on Monday, but investors will be greeted by a full slate of earnings next week with a key inflation report due on Friday.

Earnings releases to watch for on Monday include: None.

Monday's Market Moving Economic Calendar: NYSE Closed for MLK Day.

*Charts of the various market timing components can be found by going to the Market Edge Home page and clicking on 'Market At A Glance', which is located on the right-hand side of the page just below the 'Market Recap' section.

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