Dear Friends,
Tangents:
January 28, 2009: In a swift victory for President Barack Obama, the Democratic-controlled House approved a $819 billion stimulus bill. Go to article.
January 28, 1958: The patent for the LEGO brick’s modern coupling is filed, enabling the toy’s global dominance.
1986: Challenger Space Shuttle explosion.
Everyone you will ever meet knows something you don’t. –Bill Nye, American Educator, b.1955.
VELCRO was first invented by nature. Burdock is a prickly plant whose burrs stuck to a Swiss engineer’s clothes and dog while out walking. He copied their tiny hooks and loops to invest VELCRO.
One of the Oxford English Dictionary’s most prolific contributors was William Chester Minor, who submitted thousands of quotations while confined in an asylum after committing murder.
Grammys to air live Sunday
The awards ceremony will provide a dose of "medicine" to a country in crisis, the Recording Academy president says.
Why wired headphones are making a comeback
Some wear them for style, others for sanity … because cords can be more reliable than a flaky Bluetooth connection.
Video: Diving for wine
A first-of-its-kind program in Chile is aging wine in underwater cellars and letting tourists dive to retrieve it.
| ‘The dream has come true’: Standard model of cosmology holds up in massive 6-year study of the universe — with one big caveat |
The six-year Dark Energy Survey has released its full results, showing that two leading models of cosmology are equally valid — but both fail to explain one key observation. Read More.
| 160,000-year-old sophisticated stone tools discovered in China may not have been made by Homo sapiens |
Archaeologists have found the oldest known evidence of hafted tools in East Asia, and they challenge a previously held assumption about stone tool use. Read More.
| Rock climbers in Italy accidentally discovered evidence of an 80 million-year-old sea turtle stampede |
Scientists say grooves on a rock face overlooking the Adriatic Sea may have been made by sea turtles fleeing an earthquake. Read More.
| See February’s full Snow Moon rise this weekend next to a glittering star cluster |
February’s full "Snow Moon" will be at its fullest on Sunday, Feb. 1, and will be best seen at moonrise. It will appear just beneath the Beehive Cluster, one of the closest star clusters to the solar system. Read More.
| Shark attacks in Hawaii spike in October, and scientists think they know why |
Sharktober is real in Hawaii — and it’s down to the reproductive pattern of predatory tiger sharks, an analysis of 30 years of data reveals. Read More.
| Creepy humanoid robot face learned to move its lips more accurately by staring at itself in the mirror, then watching YouTube |
EMO the robot learned how its silicone lips would move in response to its 26 facial motors by staring at its reflection. Read More.
PHOTOS OF THE DAY
Lustrafjord, Norway
‘The country in the autumn gives dramatic pictures with great light. What a beautiful place.’
Photograph: Louise de Vries
Saint-Malo, France
‘I do love the seasons in northern Europe – not least because I can snooze after that first alarm, have breakfast and still have time to contemplate a runner at dawn.
’Photograph: Alex Brown
London, UK
‘A stormy night is a great time to photograph reflections from the massive illuminated advertising displays in Piccadilly Circus. This shopper was hurrying through a splash of colour during a wet evening towards the end of 2025.
’Photograph: Kevin Freeman
Market Closes for January 28th, 2026
| Market Index |
Close | Change |
| Dow Jones |
49015.60 | +12.19 |
| +0.02% | ||
| S&P 500 | 6978.03 | -0.57 |
| -0.01% | ||
| NASDAQ | 23857.45 | +40.35 |
| +0.17% | ||
| TSX | 33176.07 | +79.68 |
| +0.24% |
International Markets
| Market Index |
Close | Change |
| NIKKEI | 53739.50 | +380.79 |
| +0.71% | ||
| HANG SENG |
27826.91 | +699.96 |
| +2.58% | ||
| SENSEX | 82344.68 | +487.20 |
| +0.60% | ||
| FTSE 100* | 10154.43 | -53.37 |
| -0.52% |
Bonds
| Bonds | % Yield | Previous % Yield |
| CND. 10 Year Bond |
3.427 | 3.418 |
| CND. 30 Year Bond |
3.864 | 3.859 |
| U.S. 10 Year Bond |
4.2412 | 4.2412 |
| U.S. 30 Year Bond |
4.8581 | 4.8570 |
| BOC Close | Today | Previous |
| Canadian $ | 0.7388 | 0.7363 |
| US $ |
1.3533 | 1.3582 |
| Euro Rate 1 Euro= |
Inverse | |
| Canadian $ | 0.6166 | 1.6216 |
| US $ |
0.8344 | 1.1984 |
Commodities
| Gold | Close | Previous |
| London Gold Fix |
5064.25 | 5090.80 |
| Oil | ||
| WTI Crude Future | 63.21 | 60.63 |
MARKET COMMENTARY:
On this day in 2002, Global Crossing filed for bankruptcy. The telecommunications company had spent some $15 billion building fiber-optic networks in 27 countries since it was launched by former Drexel Burnham junk bond trader Gary Winnick in 1997.
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the second day, climbing 0.2%, or 79.68 to 33,176.07 in Toronto.
Cameco Corp. contributed the most to the index gain, increasing 6.2%.
Energy Fuels Inc/Canada had the largest increase, rising 14.5%.
Today, 108 of 218 shares rose, while 108 fell; 3 of 11 sectors were higher, led by materials stocks.
Insights
* This month, the index rose 4.6%
* The index advanced 31% in the past 52 weeks. The MSCI AC Americas Index gained 16% in the same period
* The S&P/TSX Composite is 0.8% below its 52-week high on Jan. 26, 2026 and 49.3% above its low on April 7, 2025
* The S&P/TSX Composite is up 1% in the past 5 days and rose 3.7% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 21.4 on a trailing basis and 20.7 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$5.25t
* 30-day price volatility fell to 8.56% compared with 8.61% in the previous session and the average of 9.48% over the past month
Index Points
Materials | 135.3742| 1.9| 43/13
Energy | 90.0225| 1.8| 26/12
Information Technology | 16.7394| 0.6| 3/7
Health Care | -0.8521| -1.0| 0/3
Real Estate | -1.3525| -0.3| 5/13
Utilities | -2.2489| -0.2| 7/7
Communication Services | -2.3864| -0.4| 2/3
Consumer Discretionary | -12.4160| -1.2| 0/9
Consumer Staples | -14.0202| -1.3| 4/6
Industrials | -29.4423| -0.9| 9/20
Financials | -99.7432| -1.0| 9/15
Cameco | 32.4300| 6.2| 40.2| 44.5
Agnico Eagle Mines | Ltd | 31.2900| 3.0| -3.9| 29.9
Wheaton Precious | Metals | 26.9700| 4.2| 25.1| 31.1
Scotiabank | -12.3500| -1.4| 26.9| 0.8
RBC | -31.9700| -1.4| 82.3| -3.4
TD Bank | -41.7300| -2.7| -35.1| -1.9
MT Newswires:
After two days of little change, the Toronto Stock Exchange returned to record territory on Wednesday, buoyed by elevated commodity prices, even amid fresh uncertainty around the outlook for the economy that had CIBC asking is it "stuck in a neutral zone trap?".
The S&P/TSX Composite Index closed up 79.67 points, or 0.2%, to 33,176.07, its tenth record finish of 2026 already, even with sectors mixed.
According to Dow Jones Market Data, FactSet, going in to Wednesday’s session the TSX was month and year to date up 4.36% or 1383.64 points.
Of commodities, gold resumed its surge Wednesday, rising to a record on a weaker dollar and momentum buying as investors turn to hard assets amid geopolitical turmoil.
Gold for March delivery was last seen up US$286.90 to US$5,407.90 per ounce, well above the record close of US$5,407.0 set on Monday.
The price of the metal is up 83% over the past 12 months, climbing as investors look for safety amid the economic turmoil of U.S. tariff policies, concerns over rising government debt, a falling dollar and violence in the Middle East and elsewhere.
Also, West Texas Intermediate oil closed at a four-month high as U.S. production remains limited following a polar vortex that brought freezing weather and cut output, while inventories unexpectedly fell last week.
WTI crude oil for March delivery closed up $0.82 to settle at US$63.21 per barrel, a highest since Sept. 29, while March Brent oil rose US$0.85 to US$68.42.
According to CIBC economists Ali Jaffery and Avery Shenfeld, no one was surprised by the Bank of Canada’s well-telegraphed decision to keep rates on hold today, or its assessment that rates are at the right level if their forecast pans out.
The bank remains firmly neutral on where things go from here, saying that "it’s difficult to predict the timing or direction of the next move."
But, the CIBC economists said, if there’s any slight leaning, it is still toward some concerns on the growth front due to trade uncertainties, and slightly more comfort that underlying inflation is decelerating.
They noted the BoC hasn’t made any major changes in its forecasts, with an upside surprise in Q3 offset by a stall in growth in Q4 2025.
With both historical actual growth and potential growth revised higher, the output gap in Q4 is in the range of -1.5% to -0.5%, unchanged from October’s estimate.
CIBC will stick to a forecast of no interest rate moves by the BoC in 2026, but they see the odds of a further cut as more likely than a hike, given the potential minefield of trade negotiations ahead, and a starting point that still shows significant economic slack.
The pair’s report said the press conference did not provide more color than the opening statement.
The BoC, they added, "clearly does not want to tip its hand either toward a future rate cut or a future hike, with the Governor’s view that, if the status quo is maintained, the hole in Canada’s economy would likely never heal, though growth would gradually normalize as businesses adapt by reallocating capital to more productive uses and integrating with other foreign markets".
They noted Governor Macklem once again reiterated the view that the BoC has a limited role in facilitating the structural transition, which means the Bank is reluctant to move policy out of its current position at the low end of the neutral range.
But, the CIBC duo asked, is that the right interpretation of the role of monetary policy during a structural transition?
"Not everyone would agree," they said, noting several leading macro researchers have argued that monetary policy can potentially be more powerful than normal and play a greater role during major structural transitions, or, more generally, in instances where costs can temporarily spike.
One of the arguments they put forward, is that more accommodative monetary policy could boost real wages in sectors less affected by the shock, encouraging workers in hard-hit sectors to move into other sectors and raising labor mobility and capital reallocation, and limiting the permanent damage to the economy.
There are also direct gains in interest-sensitive sectors, such as housing and construction, they noted.
"True," Jaffery and Shenfeld said, "the cost could be somewhat higher inflation in the short-run, but Canada’s underlying inflation rate is not exactly sizzling right now, with inflation momentum below 2% on several core measures, and aggregate real wage growth remains paltry.
We have yet to see material evidence of the trade cost adjustments in the data, and even if that were to show up, it is not obvious that this would result in persistent inflation as opposed to a price-level shock.
The Fed, for all its challenges, seems to be more open-minded than the Bank of Canada about the risks of persistent inflation versus a price-level shock, and it’s surprising the Bank has not been more even-handed about how those cost adjustments would impact prices in Canada."
They added: "That sort of thinking may be forcing Canada’s economy into a neutral zone trap.
As in hockey, we’re hunkering down and playing defence by keeping policy in neutral, but the trouble is that we’re down at least a couple of goals at the end of the first period.
Monetary policy cannot lead the offence to bring our trade back with the U.S., but it can help get other parts of our economy going, especially those less affected by the trade war and where gains from trade with new markets, public investment, and greater
digitalization could support higher growth.
The slight leaning towards worries growth make us hopeful these arguments are being talked about on Wellington Street.
But it will take a string of mild inflation reports to move the Bank of its current path and think more carefully about getting out of the neutral zone."
In the eyes of veteran economist, David Rosenberg, the U.S. Fed, like the BoC, also struck a "cautious tone" today as the U.S. central bank also kept rates steady.
Rosenberg noted the tone of the Fed press statement was upbeat on the economy there, despite the fact that there were two dissents to trim rates today.
He said the big difference between the Fed and the BoC is the relative state of the two economies, fiscal stimulus, and the near 150 basis point gap in their policy rates.
"As was the case in Canada this morning, there were no surprises coming out of today’s FOMC meeting (no rate cut for the first time in three confabs), at least based on the tone from the press statement (we still have to hear from Jay Powell at the post-meeting press conference, but it is worth noting that the BoC’s Tiff Macklem did everything he could at his presser to stay right in line with the narrative from the statement)," Rosenberg said, before adding: "These central bankers believe that the best thing to do in a heightened state of uncertainty is to do nothing at all — and that includes avoiding much in the way of forward guidance.
The biggest difference is that the BoC is at the low end of the "neutral range" on rates, while the Fed is deliberately keeping its policy moderately restrictive."
Rosenberg’s view is that both central banks are likely not done, and that there is even more room for the Fed to act once it becomes clearer that the gap between real GDP growth and stagnant labor market conditions, as well as personal disposable income, is not exactly a sustainable development.
Meanwhile, Claire Fan, Senior Economist at RBC, said overall, the case for further rate easing is weak.
Yet, she noted, persistent trade uncertainty and gradually moderating inflation are also arguing against a near-term pivot to rate hikes.
As a base case, RBC expects the BoC will maintain the overnight rate steady through the end of 2026.
At National Bank, Taylor Schleich and Warren Lovely said while their assessment "leans a bit dovish, it’s marginal".
The most important takeaway for them is that the BoC’s stand-pat stance is unlikely to change anytime soon, barring material changes to the outlook.
The National Bank pair said while there are scenarios in which the next rate change could be a cut or a hike, they think market watchers will probably have to wait until the second half of the year for either of these outcomes to come to fruition.
In December, National projected the BoC would start its return to neutral (2.75%) in Q4 2026, but that call was and is contingent on Canada-U.S. trade relations not totally breaking down and uncertainty being somewhat contained.
"There’s no doubt that 2026 has not gotten off to a great start on these fronts," Schleich and Lovely said.
US
By Rita Nazareth
(Bloomberg) — The Federal Reserve’s decision to leave rates steady sent stocks and bonds wavering, with Jerome Powell refraining from signaling any imminent resumption of rate cuts amid a solid economy.
The dollar rose as Treasury Secretary Scott Bessent touted a strong currency.
Bonds barely budged.
Following a tech-led rally that drove the S&P 500 briefly above 7,000, equity gains faded.
Investors are looking to mega cap earnings for clues on the artificial- intelligence trade.
In late hours, Microsoft Corp. and Meta Platforms Inc. sank after their results.
Powell talked up a “clear improvement” in what’s expected for the economy in the year ahead.
The Fed chief reiterated the labor market has shown signs of stabilizing, but added, “I wouldn’t go too far with that,” noting there were also signs of cooling.
He demurred when asked what it may take for the committee to cut again.
“The Fed song remains the same — lower interest rates may be coming, but investors will have to remain patient,” said Ellen Zentner at Morgan Stanley Wealth Management.
“With signs of stabilization in the labor market and inflation holding steady, the Fed is in position to play the wait-and-see game.”
The Federal Open Market Committee voted 10-2 to hold the benchmark federal funds rate in a range of 3.5%-3.75%.
Governors Christopher Waller and Stephen Miran dissented in favor of a quarter-point reduction.
Just two dissents underscored how tight the consensus is, which means any new Fed Chair that comes in after Powell’s term is up will have a hard time convincing other officials that rates need to go much lower, according to Sonu Varghese at Carson Group.
“The Fed is likely on an extended pause with strong activity data and signs of stabilization in the labor market suggesting little need to take out further insurance,” said Kay Haigh at Goldman Sachs Asset Management.
“However, we expect easing to resume later in the year as a moderation in inflation allows for two further ‘normalization’ cuts.”
The S&P 500 was little changed.
The yield on 10-year Treasuries was little changed at 4.25%.
The dollar climbed 0.4%.
Bessent told CNBC the US hasn’t intervened to strengthen the yen, sending the Japanese currency slumping almost 1%.
Gold topped $5,300.
“In a word, today’s FOMC was ‘boring’,” noted Jack McIntyre at Brandywine Global.
He said the tone around the economy was skewed toward “hawkish patience” — showing the Fed is not in a hurry to see lower policy rates until at least the summer.
“The message: the Fed is comfortable on pause at 3.5% to 3.75% and could stay there for a while as it looks to confirm that the labor market is in the process of stabilizing, police the tariff-driven inflation peak still to come and assess the impact of fiscal stimulus from coming tax refunds,” said Krishna Guha at Evercore.
The statement is consistent with his longstanding call that Powell will probably not cut rates again before he steps down as chair in May.
“Recent data continues to show an economy still running hot, with strength across multiple fronts,” said Seema Shah at Principal Asset Management.
“And with the unemployment rate unexpectedly dropping last month, the Fed feels confident enough to remove any reference to downside risks. Still, the flurry of high‑profile layoffs suggests it’s too early to declare victory.”
There is justification for the “wait-and-see” approach given the potential for a “second wave” of higher prices as the tariff pass-through rate increases, noted Eric Teal at Comerica Wealth Management.
Given the more likely Fed view that dual risks of inflation and unemployment are mostly in balance, we should not expect any change in policy at the March meeting, according to Jeffrey Roach at LPL Financial, who sees policy easing only later this year.
The change to the Fed’s statement is another sign that the Fed is unlikely to cut interest rates again for at least a couple more meetings, according to Stephen Brown at Capital Economics.
Nonetheless, the two dissenting votes in favor of a 25 basis-point cut suggest that the bias is still toward further loosening, he said.
“Lingering effects of potential distortions in economic data may have prompted the majority of voting Fed officials to pause and await more data,” said Luis Alvarado at Wells Fargo Investment Institute.
“It also seems that the threat of inflation remaining stuck in the upper 2’s% is a big concern.”
In his view, the window of opportunity for further cuts, if truly data-dependent, may be shrinking as we move forward into 2026.
However, given all the potential crosscurrents in Fed voting composition, he believes there is potential for two additional cuts later in 2026.
While the Fed continues to see inflation as “somewhat elevated,” the tone suggests no urgency to cut again in the near term, according to Dan Siluk at Janus Henderson Investors.
“Dissenting dovish votes from Governors Waller and Miran highlight an ongoing internal split, but the majority is adopting a more patient, data‑dependent stance, supported by firmer growth and tentative labor‑market stability,” he said.
“Today’s decision is unlikely to move the needle much on 2026 rate cut expectations,” said Jason Pride at Glenmede.
“A reasonable base case is that the Fed takes up 1-2 more cuts, but that process is likely to begin toward the middle of the year.”
This allows the Fed to gather more data before it is confident of further progress on inflation and/or sufficiently worried about further labor market deterioration, especially since some official data sources continue to deal with lingering impacts from last year’s government shutdown, Pride added.
“The Fed has lots of time to make up its mind,” said David Russell at TradeStation.
“Inflation is still running above target and jobless claims are low. We’re also expecting more stimulus from tax refunds, so if ever there was a good time to stand pat, this was it. The committee has settled into two groups in Powell’s final months, with most wanting to wait and see and a smaller dovish faction.”
This unsurprising statement lets investors shift focus from economic news to earnings, which are likely to be the main catalyst in coming weeks, he added.
The easing bias is still there, but this pause could give the dollar a lift and keep the 10‑year yield anchored in the upper half of that 4% to 4.5% range, according to Angelo Kourkafas at Edward Jones.
For equities, the takeaways are limited, in his view.
“We expect stocks can continue to benefit from the tailwinds of rising earnings, solid growth, and supportive financial conditions,” Kourkafas added.
The Fed paused, but the “pivot is still alive,” according to Gina Bolvin at Bolvin Wealth Management Group.
“Markets are reading this as a strategic pause, not a policy shift,” she said. “For investors, it’s a reminder to stay positioned in high-quality growth, income-generating assets, and sectors that benefit from a lower-rate environment on the horizon.”
“The path of least resistance is higher and although there will be pullbacks along the way – as there always are – we believe that the underlying strength in the economy will underpin corporate profits and stock prices will move higher as a result,” said Chris Zaccarelli at Northlight Asset Management.
Looking ahead, easing inflation pressures and resilient corporate profits point to an environment where financial conditions can stay supportive even without rapid rate cuts, according to Lale Akoner at eToro.
Slower job growth is increasingly being interpreted as a productivity story, especially as AI adoption changes hiring patterns, rather than a signal of an impending downturn.
That matters for markets: productivity-led growth allows margins to hold up even as wage pressures cool, Akoner noted.
“For investors, this backdrop favors staying invested in risk assets in 2026, with a bias toward quality equities, companies leveraging productivity gains, and sectors with pricing power and strong cash flows,” Akoner said.
“Bond markets are likely to remain range-bound, while equities should be driven more by earnings delivery than Fed expectations.”
With geopolitical noise easing for now — having stolen the limelight from what’s been a relatively quiet year for AI so far — attention may soon swing back to where tech and AI fundamentals really stand, according to Jim Reid at Deutsche Bank AG.
Given lingering valuation concerns, investors are heading into the tech earnings season seeking clarity on AI demand and monetization, as well as capital investment guidance, according to Ulrike Hoffmann-Burchardi at UBS Global Wealth Management.
“We believe AI will remain a key driver for equity performance, and see beneficiaries broadening into the intelligence and application layers,” she said.
Hoffmann-Burchardi expects US equities to stay supported and forecast the S&P 500 to reach 7,700 by year-end with “broad- based” gains.
“We see opportunities across the tech, health care, financials, utilities, and consumer discretionary sectors, and recommend investors with concentrated positions to diversify their exposure,” she said.
After three straight years of double-digit returns, concentrated around the largest companies levered to the AI trade, the market has “broadened out” to start the year with energy, materials and staples leading gains, noted Chris Senyek at Wolfe Research.
Optimism that the American economy is set to take off has fueled the rotation, with companies whose fortunes are closely tied to the business cycle attracting investor cash.
At the same time, AI investing has become less monolithic in the tech sector, with investors starting to choose winners and losers.
“The ‘broadening out’ trade stops with big tech earnings,” said Senyek. “Our sense is the combination of solid fourth- quarter results, lower valuations, and continued AI tailwindswill likely pull investor interest back into these companies.”
Until a more significant macro or regulatory shock forces a reset, earnings momentum is likely to stay elevated and big tech will continue to lead the market narrative,” according to Chris Brigati at SWBC.
“Big tech and the AI trade continue to push higher with remarkable strength, and investors should stay constructive on near‑term growth while remaining realistic that the current pace will eventually cool,” he said.
When that happens, Brigati says disciplined stock selection becomes critical: the long‑term winners will be the companies that execute flawlessly, protect margins, lead in innovation, and stay aligned with shifting consumer spending patterns.
One of the concerns for the bulls has been the inability of the Nasdaq 100 to confirm the new all-time high in the S&P 500 in a “significant way,” according to Matt Maley at Miller Tabak.
“If the Nasdaq 100 can push to a meaningful new high — and confirm these record highs from the S&P 500 and Russell 2000 — it will still be something that will give the bulls a nice boost as we move through the end of January and into February,” he said.
Corporate Highlights:
* Texas Instruments Inc. surged after giving a surprisingly robust forecast for the first quarter, indicating that demand for industrial equipment and vehicles is recovering from a rough patch.
* Amazon.com Inc. is cutting 16,000 corporate jobs in an effort to remove layers of bureaucracy and “increase ownership,” becoming the latest company to target managers for layoffs in recent years.
* ASML Holding NV posted record orders in the fourth quarter, even as the Dutch semiconductor equipment maker’s executives faced questions during a call with analysts about whether it can sustain its artificial intelligence-fueled momentum.
* SK Hynix Inc. reported its strongest quarterly results to date, underscoring the depth of an artificial intelligence wave that’s triggered an unprecedented surge in memory demand.
* Blackstone Inc. is considering expanding its financial commitment to Oracle Corp.’s data-center project in Michigan even as other investors have balked at the risks.
* AT&T Inc. reported fourth-quarter profit and revenue that beat analysts’ estimates, buoyed by customers who subscribed to more than one connectivity service.
* Starbucks Corp. Chief Executive Officer Brian Niccol delivered the best evidence yet that his turnaround plan is taking hold, with the coffee chain posting unexpectedly strong growth and a solid outlook for the rest of the year.
* Delta Air Lines Inc. has channeled its optimism for international travel into another order for widebody aircraft, agreeing to purchase 31 Airbus SE jets just days after it announced a similar-sized deal from Boeing Co.
* Home Depot Inc. is cutting jobs across several teams and requiring corporate staff to return to the office, as the world’s largest home-improvement retailer contends with a slowdown in business caused by the frozen housing market.
* Eli Lilly & Co. struck a deal worth more than $1.1 billion with German biotech Seamless Therapeutics GmbH to develop gene therapies for hearing loss.
* Carvana Co. sank after a short seller alleged the online auto retailer overstated earnings with the help of close ties to businesses controlled by the family of Chief Executive Officer Ernie Garcia III.
* Elevance Health Inc. forecast a worse 2026 profit outlook than analysts were expecting and lowered its long-term margin target as it grapples with weakness in its government health plan business, the latest blow to health insurers hammered this week by bad news.
* Brinker International Inc. boosted its full-year profit outlook as the owner of Chili’s said the restaurant chain will continue to see strong demand this year.
* GE Vernova, one of three global manufacturers of the natural gas turbines crucial to powering the AI boom, said it is in frequent talks with the Trump administration about ramping up production.
* Deutsche Bank AG was raided by German authorities as part of a money laundering probe looking at past dealings by staff with firms linked to the now-sanctioned Roman Abramovich, according to people familiar with the matter.
* The Swiss government is entering the next stage of the political process to set new capital requirements for UBS Group AG, expecting that the bank will ultimately be forced to accept most of its demands.
* Volkswagen AG plans to increase exports of cars made in China as the manufacturer tries to benefit from the Asian country’s low production costs amid a bruising price war there.
* Stellantis NV is slashing prices for its Fiat, Opel and Peugeot cars in France in a bid to regain market share at a time when the manufacturer is conducting a deep review of its global operations.
* Kia Corp. said US tariffs cost it 3.3 trillion won ($2.3 billion) last year and the South Korean automaker will roll out incentives to boost sales as competition intensifies.
* BYD Co. is weighing options to expand in India, including local assembly to meet surging demand for the Chinese automaker’s electric vehicles, according to people familiar with the matter.
Some of the main moves in markets:
Stocks
* The S&P 500 was little changed as of 4 p.m. New York time
* The Nasdaq 100 rose 0.3%
* The Dow Jones Industrial Average was little changed
* The MSCI World Index fell 0.2%
* Bloomberg Magnificent 7 Total Return Index was little changed
* The Russell 2000 Index fell 0.5%
Currencies
* The Bloomberg Dollar Spot Index rose 0.4%
* The euro fell 0.8% to $1.1945
* The British pound fell 0.4% to $1.3799
* The Japanese yen fell 0.8% to 153.40 per dollar
Cryptocurrencies
* Bitcoin was little changed at $89,033.92
* Ether was little changed at $3,009.53
Bonds
* The yield on 10-year Treasuries was little changed at 4.25%
* Germany’s 10-year yield declined two basis points to 2.86%
* Britain’s 10-year yield advanced two basis points to 4.54%
* The yield on 2-year Treasuries was little changed at 3.58%
* The yield on 30-year Treasuries was little changed at 4.86%
Commodities
* West Texas Intermediate crude rose 1.6% to $63.38 a barrel
* Spot gold rose 3.9% to $5,383.13 an ounce
Have a lovely evening.
Be magnificent!
As ever,
Carolann
If youth knew; if age could. –Sigmund Freud, 1856-1939.
Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor
Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7
Tel: 778.430.5808
(C): 250.881.0801 (Text Only)
Toll Free: 1.877.430.5895
Fax: 778.430.5828