Markets Switch to "Risk-Off" Ahead of Trump at Davos

Market Overview - Major market indexes started the trading session in negative territory, with the Dow down 870 points (-1.76%), S&P 500 down 43 points (-2.06%), and Nasdaq down 561 points (-2.39%) [1] - The small-cap Russell 2000 outperformed, losing only 32 points (-1.22%) [1] Economic Sentiment - A "risk off" sentiment has emerged following President Trump's threats of new tariffs on European countries regarding the U.S. annexation of Greenland, impacting investor confidence [2] - Despite a strong start to 2026, the S&P 500 and Nasdaq have dipped into the red year-to-date, but this may present a potential entry point for investors [3] Q4 Earnings Reports - Netflix (NFLX): Reported earnings of 56 cents per share and revenues of $12.05 billion, slightly above estimates. However, guidance for the next quarter is lower than expected, with projected earnings of 76 cents per share and revenues of $12.16 billion [4][5] - United Airlines (UAL): Outperformed expectations with earnings of $3.10 per share and revenues of $15.40 billion, both exceeding estimates. Revenue per Seat Mile decreased by 1.6% quarter over quarter, but international and premium flights grew by 9% year over year [7] - Interactive Brokers Group (IBKR): Reported earnings of 65 cents per share and revenues of $1.67 billion, significantly beating expectations. Higher trading volumes and net interest income contributed to this performance [8] Upcoming Economic Reports - Anticipated economic reports include a delayed Construction Spending update for October and December Pending Home Sales, expected to be released shortly after the market opens [10]