Markets Pull Back Ahead of PPI Data 14/01/2026

HOT stories for today

Market wrap:

• U.S. and global equities ended the week at fresh records, extending gains even as U.S. stocks retreated in Tuesday’s regular session, with losses led by blue chips. The S&P 500 slipped 0.2%, the Dow Jones Industrial Average sank nearly 400 points, or 0.8%, and the Nasdaq Composite edged down 0.1%. Financials were the weakest segment of the benchmark index. JPMorgan Chase slid more than 4% after fourth-quarter investment-banking fees appeared to fall short of expectations, dragging down peers including Goldman Sachs and Bank of America. 
• Oil jumped more than 2% after President Donald Trump scrapped meetings with Iranian officials and told protesters that “help is on its way.” Energy shares advanced broadly, lifting the sector about 1.5%. Trump’s attacks on Federal Reserve Chair Jerome Powell continued, fueling concerns about the central bank’s independence. Overseas, China reported a record $1.2 trillion annual trade surplus even as exports to the U.S. plunged 20%. Japanese stocks climbed to another record amid speculation over a snap election, while European markets were set for a mixed open as attention turns to talks on Greenland. Looking ahead, investors will focus on U.S. producer price data later today, with earnings season still in full swing.

Sticky Inflation Hits U.S. Households Where It Hurts

• Rising prices for everyday essentials continued to strain American households in December, highlighting the uneven nature of cooling inflation. The consumer price index increased 0.3% last month, pushing the annual rate to 2.7%, still above the Federal Reserve’s 2% target. Food costs remained a key source of pressure, with prices for groceries and restaurant meals each climbing 0.7% on the month. Over the past year, food at home rose 2.4%, while dining out jumped 4.1%, led by sharp gains in items such as coffee and beef. Middle-income families are feeling the impact most acutely.
• Nearly 69% say their income is falling behind the cost of living, according to Primerica, reflecting persistent increases in necessities that are difficult to cut back. Electricity prices rose 6.7% from a year earlier, adding to the burden as utility bills climbed through the winter. Some relief emerged in goods prices and gasoline, which fell over the past year. Still, the report helps explain why consumer sentiment remains weak — even as markets welcomed sticky inflation that could support expectations for future interest-rate cuts.

Stocks on the move:

• Chipotle Mexican Grill (CMG): Shares fell more than 3% after the fast-casual chain reaffirmed its 2025 outlook, which points to a low single-digit percentage decline in comparable-store sales. The company also named an interim chief marketing officer following the departure of Chris Brandt.
• Moderna (MRNA): Shares jumped more than 14% after Chief Executive Officer Stéphane Bancel said at JPMorgan’s health-care conference that 2025 sales are expected to total about $1.9 billion, above the midpoint of the company’s initial guidance.
• L3Harris Technologies (LHX): The defense contractor added about 1% after announcing a partnership with the U.S. Defense Department to expand solid rocket motor capacity and plans to pursue an initial public offering of its missile business in the second half of 2026. The agreement includes a $1 billion convertible preferred investment by the U.S. government that would convert to common stock following an IPO.
• Boeing (BA): The aerospace company rose more than 3% after surpassing Airbus in annual aircraft orders for the first time since 2018. Boeing reported net orders of 174 planes in December, including more than 100 737 Max jets for Alaska Airlines, and delivered 63 aircraft during the month.

Watchlist: BA, CMG, INTC, AMD, GOOGL, WFC, C, NVDA, TSLA

Key Economic Events Today:

EST time


08:30 am: USD PPI, Core PPI
08:30 am: USD Retail Sales
09:50 am: USD FOMC Member Paulson Speaks
10:00 am: USD Business Inventories
10:00 am: USD Existing Home Sales
10:30 am: USD Crude Oil Inventories
02:00 pm: USD Beige Book



Earnings

BMO (Before Market Open): Bank of America (BAC), Wells Fargo (WFC), Citigroup
AMC (After Market Close): H.B. Fuller (FUL), Compass Diversified (CODI)



The TEFS Analyst team wishes you a successful day!