Futures Slide on Tariff Threat; Netflix Earnings Next 20/01/2026

HOT stories for today

Market wrap:

• The S&P 500 fell 0.4% last week, while the Dow Jones Industrial Average slid 0.3%. The Nasdaq Composite dropped 0.7%, even as AI-linked chipmakers caught a brief bid Thursday after Taiwan Semiconductor’s blockbuster fourth-quarter results. Dow futures pointed to a 378-point decline at Tuesday’s open. Trade tensions are also in focus. In a Saturday post on Truth Social, President Donald Trump said imports from eight NATO members would be hit with escalating tariffs “until such time as a Deal is reached for the Complete and Total purchase of Greenland.” The levies would begin at 10% on Feb. 1 and rise to 25% on June 1, he said. European leaders called the move “unacceptable.” European automakers and luxury shares fell Monday, while some defense names advanced. 
• Monday night marks the first full opportunity for U.S. investors to price in the escalation after markets were shut for the Martin Luther King Jr. holiday. The Supreme Court could rule as soon as next week on whether to overturn the tariffs, which Trump imposed under the International Emergency Economic Powers Act. Treasury Secretary Scott Bessent said Sunday he views it as “very unlikely that the Supreme Court will overrule a president’s signature economic policy.” Earnings season ramps up with results due from Netflix, Charles Schwab, Johnson & Johnson and Intel. Netflix reports after Tuesday’s closing bell.

Big Tech Slips, Small Caps and Staples Take Over

• Investors are trimming the “Magnificent Seven” and moving into laggards, improving market breadth even as tech drags on the S&P 500. The index is up 1.4% in 2026, while information technology is down 0.6% for the year, according to FactSet. Consumer staples, a traditional defensive pocket, surged 3.7% last week and are up 5.7% this year. Small caps have led the charge, with the Russell 2000 up 7.9% in 2026. The shift follows years of underperformance: consumer staples trailed the S&P 500 by 67 percentage points over the three years through 2025, setting up a catch-up trade as investors reassess allocations.
• AI enthusiasm is also broadening beyond megacaps and into chip hardware. Semiconductor equipment names like Lam Research and KLA are up about 30% this year, helping lift the iShares Semiconductor ETF 13.7%. Meanwhile, the Roundhill Magnificent Seven ETF is down 1.6% in January, on pace for its longest monthly losing streak since 2023, a sign leadership is changing even as the broader market advances.

Stocks on the move:

• ImmunityBio (IBRX): The biotech jumped 13%, extending a 30% surge in the prior session after strong guidance for its bladder cancer drug Anktiva. The company expects full-year revenue for the therapy to rise by about 700%.
• Worthington Steel (WS): The Columbus, Ohio-based maker of hot- and cold-rolled steel climbed 7% after agreeing to buy Germany’s Kloeckner & Co., valuing the deal at $2.4 billion on an enterprise-value basis.
• Coupang (CPNG): Shares rose about 3% after Deutsche Bank upgraded the Korean retail giant to buy, saying most regulatory uncertainty is already priced in.
• PNC (PNC): The Pittsburgh-based bank gained 4% after topping fourth-quarter estimates and issuing upbeat guidance. Revenue was $5.96 billion versus $5.89 billion expected, while earnings were $4.88 a share versus $4.22.
• Honeywell (HON): The industrial giant added nearly 2% after JPMorgan upgraded the stock to overweight, citing upside as the company advances its breakup plan.

Watchlist: NFLX, NVDA, TSLA, MMM, USB, FAST, DHI, INTC

Key Economic Events Today:

EST time

No major economic news today!


Earnings

BMO ( Before Market Open): 3M Company (MMM), U:S: Bancorp (USB), Fastenal Company (FAST), D:R: Horton (DHI)
AMC (After Market Close): Netflix (NFLX), United Airlines (UAL), Interactive Brokers (IBKR)



The TEFS Analyst team wishes you a successful day!