North American Morning Briefing: Relief Rally Over Greenland Poised to Continue

Dow Jones01-22 19:05

OPENING CALL

Stock futures pointed to a higher open Thursday as a relief rally over easing Greenland tensions looked set to continue.

Nasdaq contracts were driving premarket gains, while gold and oil prices fell, after Trump rowed back on Greenland-related tariffs.

Pepperstone said it was yet another example of Trump's "escalate to de-escalate" tactics".

"You'd expect market participants would've grown wise to this by now, yet the hysteria and hyperbole seen over the last few days suggests that very much is not the case."

But risks remain. Denmark's prime minister said Thursday "we cannot negotiate on our sovereignty."

Investors may get a break from the tariff drama today. Data out includes the Federal Reserve's preferred inflation measure.

The delayed PCE for October and November could offer clues about whether the Fed continues its course of cautious rate cutting .

Meanwhile in Davos , Trump launched his Board of Peace and Elon Musk is a late addition to the World Economic Forum agenda.

Stocks to Watch

Intel was up around 1.5% premarket. It rose 12% in Wednesday's regular session following an analyst upgrade and ahead of earnings Thursday. AMD, Micron Technology and other semiconductor companies also rallied ahead of the open.

Sweden's EQT agreed to buy U.K.-based private-equity firm Coller Capital for up to $3.7 billion. Shares in EQT rose 4.5%.

Thyssenkrupp rallied for a second day after it gave details of a pitch for a lucrative Canadian military contract.

Volkswagen said its car business unexpectedly threw off $7 billion of cash last year. The stock jumped 5% in Frankfurt.

Watch For:

Weekly Jobless Claims; Revised GDP for 3Q; Personal Income and Outlays for October and November; EIA Weekly Petroleum Status Report; earnings from GE Aerospace, Intel, Procter & Gamble

Today's Top Headlines/Must Reads:

- The Uproar Over Affordability Is Coming for Insurers

- Change in Venezuela Isn't the Only Reason to Own Oil-Field-Services Stocks

- Private-Credit Investors Are Cashing Out in Droves

MARKET WRAPS

Forex:

The dollar stabilized following recent losses.

Commerzbank said the Greenland episode could strengthen Europe's efforts to become more independent of the U.S and encourage the region to decouple itself more strongly from the dollar.

Bonds:

Treasury yields fell slightly in European trade as investors remained cautious despite a visibly calmer pattern compared with previous days.

The 10-year JGB yield was down .

Barclays said the bond market had found some calm amid expectations that Tokyo may introduce policy measures in response to the recent surge in yields.

Energy:

Oil prices were lower on easing geopolitical tensions.

Meanwhile, the International Energy Agency reiterated its expectation of a significant supply glut this year, but raised its oil-demand growth expectations.

Metals:

Gold prices slipped after the geopolitical concerns that fueled bullion's rally eased off.

Goldman Sachs raised its December 2026 forecast for gold to $5,400/oz from $4,900/oz previously.

Copper

Prices gained, likely due to signs of tightness in the base metal. ANZ Research said concerns around tightness are unlikely to be eased by continuing supply-side issues.

Iron ore

Prices edged lower in early Asian trading.

Positives had largely been priced in , Nanhua Futures said. Overall, supply and demand conditions remained relatively healthy.

   TODAY'S TOP HEADLINES 

Why AMD's stock just rocketed to its longest winning streak in nearly a year

Advanced Micro Devices shares extended their rally into a seventh session as optimism builds for the company's business of selling central processing units for artificial-intelligence servers.

When the chip maker announces fourth-quarter earnings results next month, KeyBanc analyst John Vinh said he's expecting a revenue beat and higher guidance, mostly driven by strong demand for AMD's server CPUs, noting the latest-generation Turin data-center CPU.

Intel Stock Surges to 4-Year High Ahead of Earnings. Why Optimism Is Growing.

Intel stock gained again on Wednesday ahead of the chip company's earnings report. Analysts are becoming gradually more enthusiastic about its prospects.

Intel shares were up 11.7% at $54.25 for the session, their highest close since January 2022.

Procter & Gamble Earnings Are Up Next. Weak Consumer Spending Remains a Worry.

Procter & Gamble stock has struggled lately, with Wall Street worrying about a slowdown in spending that could weigh on demand for consumer goods. Shareholders likely are hoping an earnings report due out on Thursday morning can stop the rot.

Analysts are expecting the company, owner of the Head & Shoulders and Gillette brands, to report adjusted earnings of $1.86 a share for its fiscal second quarter, according to FactSet. The consensus forecast is that revenue will rise 1.9% from a year ago, to $22.30 billion.

Global Markets, U.S. Futures Rally on Trump Tariff U-Turn

Global markets and U.S. futures rallied after President Trump back-tracked on threats to hit eight European countries with 10% tariffs in February. In a Truth Social post, Trump said that he agreed "the framework of a future deal" over Greenland with NATO Secretary-General Mark Rutte. After jumping sharply Wednesday, U.S. equities continued to rally premarket, following broad gains in Asia and a strong European open.

Across the globe, the market picture looked closer to last Friday's close. Safe-haven precious metals fell back, while oil gained. U.S. Treasurys and the dollar stabilized following Trump's speech at Davos and subsequent tariff pivot. Sentiment was also improved by easing pressure on Japanese Government Bonds amid anticipation of policy intervention in Tokyo to soothe investor fears over soaring yields.

Inflation Just Won't Go Away. Why PCE Should Keep the Fed on Hold.

A key inflation report due Thursday morning is expected to show price pressures holding steady, reinforcing why Federal Reserve officials remain cautious about cutting interest rates.

The Fed's preferred inflation gauge, the personal consumption expenditures price index, is forecast to show core prices, which exclude volatile food and energy prices, rose 0.2% in November and 2.8% from a year earlier, according to FactSet estimates. Headline PCE is also expected to increase 0.2% on the month and 2.8% year-over-year.

Supreme Court Balks at Trump's Push to Control the Fed

WASHINGTON-Supreme Court justices across the ideological spectrum expressed deep unease on Wednesday about President Trump's attempt to fire a member of the Federal Reserve, with several stressing the importance of a central bank insulated from political pressure.

Their comments during nearly two hours of oral arguments signaled that the court will likely allow Fed board member Lisa Cook to remain in the job while her legal challenge to her dismissal proceeds in the lower courts.

Inside Trump's Head-Spinning Greenland U-Turn

DAVOS, Switzerland-When President Trump arrived in the snow-covered Swiss Alps on Wednesday afternoon, European leaders were panicking that his efforts to acquire Greenland would trigger a trans-Atlantic conflagration. By the time the sun set, Trump had backed down.

The about-face followed days of back-channel conversations between Trump, his advisers and European leaders, including NATO Secretary-General Mark Rutte and German Chancellor Friedrich Merz, according to people close to the talks. The Europeans, who stood united in their opposition to Trump acquiring Greenland, employed a mix of enticements, such as offers to boost Arctic security, and warnings, including about the dangers to the U.S. of a deeper rupture in the North Atlantic Treaty Organization.

The Chinese Spy Machine Infiltrating Taiwan's Military

TAIPEI-Sgt. Lai Chung-yu had almost everything a Chinese spy recruiter could want in a Taiwanese asset.

As a member of the military police battalion tasked with guarding the offices of the president and many senior officials, he knew the security personnel and measures used to protect them.

The U.S. Is Actively Seeking Regime Change in Cuba by the End of the Year

Emboldened by the U.S. ouster of Venezuelan President Nicolás Maduro, the Trump administration is searching for Cuban government insiders who can help cut a deal to push out the Communist regime by the end of the year, people familiar with the matter said.

The Trump administration has assessed Cuba's economy as being close to collapse and that the government has never been this fragile after losing a vital benefactor in Maduro, these people said. Officials don't have a concrete plan to end the Communist government that has held power on the Caribbean island for almost seven decades, but they see Maduro's capture and subsequent concessions from his allies left behind as a blueprint and a warning for Cuba, senior U.S. officials said.

ICE Moves to Enter Homes Without Warrants Signed by a Judge

The Trump administration is asserting new powers to forcibly enter the homes of people they are hoping to arrest without a criminal warrant signed by a judge, according to people familiar with the matter, including current and former U.S. Immigration and Customs Enforcement officials.

Over the summer, lawyers at ICE and its parent agency, the Department of Homeland Security, penned a secret memo expanding the authority by which agents may enter homes of immigrants with final deportation orders, the people said.

Write to gareth.mcpherson@wsj.com

TODAY IN CANADA

Earnings:

Novagold Resources 4Q

Economic Indicators $(ET)$:

0830 New Housing Price Index for December

0830 Employment Insurance for November

Stocks to Watch:

Fresnillo Completes Acquisition of Probe Gold; Paid C$770M for Probe Gold; to Start Work to Advance Development of Novador Project; Now Received All Required Shareholder, Court, Regulatory Approvals

Greenland Resources Reassays for Magnesium, Finds Critical Minerals Including Rare-Earth Elements; to Investigate Potential Recovery of Rare-Earth Minerals From Future Malmbjerg Molybdenum Operation

Expected Major Events for Thursday

00:01/UK: BRC Consumer Sentiment Monitor

05:00/JPN: Dec Steel Production

05:00/JPN: Dec Supermarket sales

07:00/UK: Dec Public sector finances

08:59/JPN: Jan Monthly Economic Report

11:00/UK: Jan CBI Distributive Trades Survey

13:00/RUS: Weekly International Reserves

13:30/US: 3Q GDP

13:30/US: 3Q Revised Corporate Profits

13:30/CAN: Nov Employment Insurance

13:30/US: 1/17 Unemployment Insurance Weekly Claims Report - Initial Claims

13:30/CAN: Dec New Housing Price Index

15:00/US: Nov Personal Income and Outlays

15:30/US: 01/16 EIA Weekly Natural Gas Storage Report

16:00/US: Jan Federal Reserve Bank of Kansas City Survey of Tenth District Manufacturing

17:00/US: 01/16 EIA Weekly Petroleum Status Report

21:30/US: Foreign Central Bank Holdings

21:30/US: Federal Discount Window Borrowings

23:30/JPN: Dec CPI (Nation), CPI ex-food (Nation)

23:30/JPN: Nov Final Labour Survey - Earnings, Employment & Hours Worked

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Expected Earnings for Thursday

1st Source Corp (SRCE) is expected to report $1.61 for 4Q.

ACM Research Inc $(ACMR)$ is expected to report for Full year.

Abbott Laboratories $(ABT)$ is expected to report $1.22 for 4Q.

Alcoa Corp $(AA)$ is expected to report $0.91 for 4Q.

Amalgamated Financial Corp (AMAL) is expected to report $0.90 for 4Q.

Amerant Bancorp Inc (AMTB) is expected to report $0.36 for 4Q.

Atlantic Union Bankshares Corp $(AUB)$ is expected to report $0.84 for 4Q.

Bank First Corp $(BFC)$ is expected to report $1.77 for 4Q.

Cadence Bank (CADE) is expected to report $0.79 for 4Q.

$Capital One Financial Corp(COF-N)$ $(COF)$ is expected to report $3.14 for 4Q.

Cass Information Systems Inc $(CASS)$ is expected to report $0.64 for 4Q.

Cathay General Bancorp $(CATY)$ is expected to report $1.23 for 4Q.

City Holding Co $(CHCO)$ is expected to report $2.26 for 4Q.

Cohen & Steers Inc $(CNS)$ is expected to report $0.80 for 4Q.

Commerce Bancshares Inc $(CBSH)$ is expected to report $0.99 for 4Q.

East West Bancorp Inc $(EWBC)$ is expected to report $2.49 for 4Q.

Esquire Financial Holdings Inc $(ESQ)$ is expected to report $1.53 for 4Q.

First Mid Bancshares Inc $(FMBH)$ is expected to report $1.05 for 4Q.

Five Point Holdings LLC (FPH) is expected to report for 4Q.

Freeport-McMoRan Inc $(FCX)$ is expected to report $0.29 for 4Q.

GE Aerospace $(GE)$ is expected to report $1.55 for 4Q.

Heritage Financial Corp $(HFWA)$ is expected to report $0.56 for 4Q.

HomeTrust Bancshares Inc (HTB) is expected to report $0.86 for 4Q.

Huntington Bancshares Inc $(HBAN)$ is expected to report $0.33 for 4Q.

Independent Bank Corp $(INDB)$ is expected to report $1.56 for 4Q.

Independent Bank Corp (Michigan) $(IBCP)$ is expected to report $0.84 for 4Q.

Intuitive Surgical Inc $(ISRG)$ is expected to report $1.92 for 4Q.

LSI Industries Inc $(LYTS)$ is expected to report $0.17 for 2Q.

McCormick & Co Inc $(MKC)$ is expected to report $0.88 for 4Q.

Northern Trust Corp $(NTRS)$ is expected to report $2.35 for 4Q.

Norwood Financial Corp (NWFL) is expected to report $0.85 for 4Q.

NovaGold Resources Inc (NG,NG.T) is expected to report $-0.02 for 4Q.

OceanFirst Financial Corp (OCFC) is expected to report $0.27 for 4Q.

Old Republic International Corp (ORI) is expected to report $0.90 for 4Q.

Pathward Financial Inc (CASH) is expected to report $1.38 for 1Q.

Preferred Bank Los Angeles $(PFBC)$ is expected to report $2.79 for 4Q.

Procter & Gamble Co $(PG)$ is expected to report $1.83 for 2Q.

S&T Bancorp Inc $(STBA)$ is expected to report $0.88 for 4Q.

Texas Capital Bancshares Inc (TCBI) is expected to report $1.77 for 4Q.

TriCo Bancshares (TCBK) is expected to report $1.00 for 4Q.

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ANALYST RATINGS ACTIONS

Abercrombie & Fitch Raised to Buy From Neutral by Citigroup

ABM Industries Cut to Hold From Buy by Truist Securities

Albemarle Raised to Buy From Hold by Truist Securities

Alliant Energy Raised to Equal-Weight From Underweight by Barclays

APA Cut to Underweight From Equal-Weight by Barclays

Apellis Pharmaceuticals Raised to Buy From Neutral by B of A Securities

Biohaven Raised to Outperform From Sector Perform by RBC Capital

Brinker International Raised to Outperform From Market Perform by Raymond James

Carter's Raised to Buy From Neutral by Citigroup

CNX Resources Cut to Underweight From Equal-Weight by Barclays

Cognizant Started at Buy by Berenberg

Darden Restaurants Cut to Market Perform From Outperform by Raymond James

FedEx Cut to Neutral From Buy by Rothschild & Co

Lisata Therapeutics Cut to Hold From Buy by Brookline Capital

Netflix's Spending Spooks Investors For Now, But Long-Term Foundation Is Sound -- Analysis

Oklo Raised to Buy From Neutral by B of A Securities

Rapt Therapeutics Cut to Equal-Weight From Overweight by Barclays

Rapt Therapeutics Cut to Market Perform From Outperform by Leerink Partners

Rein Therapeutics Cut to Hold From Buy by Brookline Capital

Sally Beauty Holdings Raised to Outperform From Market Perform by Raymond James

ServisFirst Bancshares Raised to Strong Buy From Outperform by Raymond James

Tetra Technologies Cut to Hold From Buy by Clear Street

Ulta Beauty Raised to Strong Buy From Outperform by Raymond James

Waste Management Cut to Sector Perform From Sector Outperform by Scotiabank

Watts Water Raised to Overweight From Sector Weight by Keybanc

WillScot Holdings Cut to Neutral From Outperform by Baird

This article is a text version of a Wall Street Journal newsletter published earlier today.

 

(END) Dow Jones Newswires

January 22, 2026 06:05 ET (11:05 GMT)

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