January 29, 2026

The major averages were slammed at the open today after disappointment in Microsoft’s (MSFT) 38% growth in Azure sent software and tech shares sharply lower. The DJIA was down -400-points and the NASDAQ down -2.5% early but a rotation out of technology shares and back into cyclical sectors left the different indexes mixed at the close. Economic data showed a stable labor market with Initial Jobless Claims slipping 1k to 209k, while Continuing Claims fell by 38k. November Factory Orders surprised to the upside jumping +2.7% vs. +1.5% estimated. Q4 earnings were a hit or miss with Meta Platforms (META) surging +10.40%, while Microsoft (MSFT) sank -9.99%. Other winners included International Business Machines (IBM), Honeywell (HON), Caterpillar (CAT), Royal Cruise Lines (RCL) and Southwest Airlines (LUV) trading higher after beating estimates, but Las Vegas Sands (LVS), ServiceNow (NOW) and Whirlpool (WHR) dropped after missing or weaker guidance. Crude oil prices stepped +3.67% higher on heightened US/Iran tensions. The Communication Services (XLC) sector was the day’s winner jumping +2.60% followed by strength in REITs (XLRE), Industrial (XLI) and Financial (XLF). Technology (XLK) was the weakest market group despite semiconductors battling back to the plus column late. Consumer Discretionary (XLY) and Healthcare (XLV) also lagged. The late bounce left the DJIA with a gain of 55.96 points (+0.11%) at 49071.56, while the S&P 500 eased 9.02 points (-0.13%) to 6969.01. The NASDAQ lost 172.33 points (-0.72%) finishing at 23685.12.

Breadth was mixed with advancing issues beating declining issues 1.4:1 on the NYSE, while declining issues led 1.4:1 on the NASDAQ. Advancing volume was 51% on the NYSE, whereas declining volume was 63% of the NASDAQ. The VIX was up 0.53 (+3.24%) and closed at 16.88. Crude oil prices added 2.32 (+3.67%) and the March contract closed at $65.53 a barrel. Gold prices jumped 117.40 (+2.21%) and finished at $ 5421.20 an ounce, a new record high. Bitcoin (BTC) closed the session down -5.20% at $84,180.

It was another volatile session off earnings but despite the weakness in software companies the rotation into industrial and financial shares was a plus. The iShares Software ETF (IGV) is now in a Bear market down -22% from its high. Tonight, we get earnings from Apple (AAPL) which is likely to move tech shares for a second day. Besides earnings and the raised tensions between the US and Iran, investors will also be keeping an eye on a potential government shutdown in the next week or so, but currently it appears that we could see a spending bill get passed.

Earnings releases to watch for on Friday include: American Express (AXP), Air Products (APD), Charter Communications (CHTR), Chevron (CVX), Colgate-Palmolive (CL), Exxon Mobil (XOM), Regeneron Pharma (REGN) and Verizon (VZ).

Friday’s Market Moving Economic Calendar: PPI-final Demand and Chicago PMI.

*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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