Core Viewpoint - The U.S. financial sector experienced a significant decline following President Trump's call for a 10% cap on credit card interest rates, raising concerns about the profitability of banks and credit card companies [1][2] Group 1: Impact on Credit Card Companies - Credit card-related stocks saw notable declines, with Bread Financial (BFH.US) dropping over 10%, Synchrony Financial (SYF.US) down more than 8%, and First Capital Credit (COF.US) falling over 6.4% [1] - Analysts indicated that the proposed interest rate cap would directly compress the credit card spread, challenging business models that rely on high rates to cover risk costs [1] - If the 10% cap is implemented, credit card businesses could face overall losses, particularly affecting subprime credit cards [2] Group 2: Impact on Large Banks - Major banks such as Bank of America (BAC.US), Citigroup (C.US), and JPMorgan Chase (JPM.US), which have significant exposure to credit card operations, also saw their stock prices decline [1] - Analysts noted that Citigroup has the highest exposure in credit card business, followed by JPMorgan Chase, which was reflected in their stock performance [2] - The financial sector is expected to remain volatile in the short term, with future movements dependent on the likelihood of Trump's affordability proposal advancing in Congress [2]

Market Overview - US stocks initially opened lower due to concerns about Federal Reserve independence amid attacks from the Trump administration, but later recovered with the S&P 500 and Nasdaq 100 reaching new highs [2][4] - The S&P 500 Index closed up +0.16%, the Dow Jones closed up +0.17%, and the Nasdaq 100 closed up +0.08% [5] - European stocks also rose, with the Euro Stoxx 50 reaching an all-time high, and China's Shanghai Composite climbing to a 10.5-year high [3][8] Sector Performance - Data storage and chip makers led the market rally, with Western Digital up more than +6% and Seagate Technology up more than +5% [13] - Mining stocks surged as gold and silver prices hit all-time highs, with Hecla Mining up more than +8% and Coeur Mining up more than +5% [14] - Credit card companies and bank stocks declined after President Trump announced a potential cap on interest rates, with Synchrony Financial down more than -8% [15] Economic Indicators - The market is focused on upcoming economic news, including CPI and PPI data, with December CPI expected to remain at +2.7% year-over-year [6] - Q4 earnings season is set to begin, with S&P earnings growth projected to increase by +8.4%, excluding major tech stocks which are expected to grow by +4.6% [7] Interest Rates - The 10-year T-note yield rose to a one-month high of 4.205% amid concerns about Fed independence and rising inflation expectations [9][10] - European government bond yields fell, with the 10-year German bund yield down to 2.841% [12]

Core Viewpoint - President Trump's proposal to cap credit card interest rates at 10% for one year may lead to a reduction in rewards, particularly affecting consumers with lower credit scores [1] Group 1: Impact on Credit Card Companies - Capping interest rates could significantly alter the revenue model for credit card companies, potentially leading to decreased profitability [1] - Companies may respond to the cap by reducing rewards programs to maintain margins [1] Group 2: Consumer Implications - Consumers with less-than-stellar credit are likely to be the most affected, facing diminished rewards and benefits [1] - The proposed cap may incentivize consumers to improve their credit scores to access better rewards in the future [1]

Core Insights - Health and wellness providers using Clover devices can now offer CareCredit's patient financing solution, enhancing payment options for patients [2][4] - The integration allows providers to accept CareCredit payments and facilitate new applications at the point of sale, streamlining the payment process [2][3] - This expansion adds 40,000 health providers to CareCredit's network, increasing the total to 42,000 providers [4] Company Integration - The partnership between Synchrony and Fiserv's Clover aims to improve operational efficiency and enhance the patient experience [3][4] - CareCredit becomes the first patient financing solution available on the Clover App Market, indicating a significant competitive advantage [3] Market Trends - There is a growing consumer preference for platforms that simplify the purchasing process, making it faster and more personalized [5] - Financial products integrated into merchant ecosystems create a seamless customer journey, aligning with consumer expectations [6] Future Outlook - Fiserv is focused on expanding the capabilities of the Clover platform beyond just point-of-sale transactions, indicating a strategic shift towards a comprehensive business operating platform [7]

Economic Indicators - December CPI is expected to remain unchanged from November at +2.7% year-over-year, while December core CPI is anticipated to rise to +2.7% from +2.6% in November [1] - October new home sales are projected to decline by -10.6% month-over-month to 715,000 [1] - November PPI final demand is expected to increase by +2.7% year-over-year, with core PPI also expected to climb by +2.7% [1] - November retail sales are anticipated to increase by +0.5% month-over-month, and +0.4% month-over-month excluding autos [1] - December existing home sales are expected to rise by +2.2% month-over-month to 4.22 million [1] - Weekly initial unemployment claims are expected to increase by +7,000 to 215,000 [1] - January Empire manufacturing survey is expected to rise by +4.9 to 1.0 [1] - December manufacturing production is expected to fall by -0.1% month-over-month [1] - January NAHB housing market index is expected to increase by +1 to 40 [1] Federal Reserve and Market Reactions - Fed Chair Powell stated that the Federal Reserve received grand jury subpoenas from the Justice Department, which could lead to a criminal indictment related to his June testimony [2] - Concerns about Fed independence have increased due to the Trump administration's criticism, leading to a "Sell America" sentiment in US asset markets [3] - The markets are currently discounting a 5% chance of a -25 basis point rate cut at the next FOMC meeting [4] Stock Market Movements - Stock indexes opened lower but rose in the afternoon, with the S&P 500 up +0.28%, Dow Jones up +0.15%, and Nasdaq 100 up +0.55% [3] - Credit card companies and bank stocks are declining, with Synchrony Financial down more than -7%, Capital One down more than -6%, and American Express down more than -4% following President Trump's comments on interest rate caps [9] - Mining stocks are rising as gold and silver prices reach new all-time highs, with Hecla Mining up more than +8% and Coeur Mining up more than +6% [9] Company-Specific Updates - Alnylam Pharmaceuticals reported preliminary Q4 sales of Amvuttra at $827 million, below the consensus of $848.5 million, leading to a decline of more than -10% in its stock [9] - Henry Schein is down more than -2% after announcing a new CEO [10] - UnitedHealth Group is down more than -1% following a Senate committee investigation into its practices [11] - Dexcom reported Q3 preliminary revenue of $1.26 billion, exceeding the consensus of $1.24 billion, leading to a stock increase of more than +5% [12] - Walmart is up more than +2% as it will replace AstraZeneca in the Nasdaq 100 Index starting January 20 [13]

Key Takeaways Bank stocks fell Monday after President Donald Trump said over the weekend that credit card interest rates should be capped at 10% for at least a year.How a cap would be put in place and why for only a year remains unclear. A number of banking and financial stocks slumped Monday morning after President Donald Trump over the weekend suggested capping credit card interest rates. Trump posted on social media late Friday that Americans are being "ripped off" by interest rates of 20% to 30%, a ...

Market Overview - The U.S. stock market opened on January 12, 2026, with major indexes experiencing early declines due to a criminal probe involving Federal Reserve Chair Jerome Powell and a new policy proposal from President Donald Trump [1][3] - The Dow Jones Industrial Average (DJIA) and S&P 500 (SPX) had previously reached record highs following positive unemployment data [1] Major Index Performance - The S&P 500 opened at 6,944.12 points, down 0.32% from the previous close, while the DJIA opened at 49,499.67 points, down 0.01% [2] - The Nasdaq Composite opened lower at 23,576.88 points, down 0.40% [2] - Early trading saw the Dow decline approximately 400 points, a 0.3% drop, with the S&P 500 down 0.1% and the Nasdaq Composite slipping less than 0.1% [2] Key Market Catalysts - The U.S. Department of Justice has initiated a criminal probe into Jerome Powell, raising concerns about the independence of the Federal Reserve [3] - President Trump's proposal for a one-year cap on credit card interest rates at 10% negatively impacted financial stocks, with Synchrony Financial and Capital One Financial dropping approximately 8% and 6% respectively [4] Safe-Haven Assets - Gold futures surged to $4,605 an ounce, up 2.4%, as investors sought refuge amid market turbulence and geopolitical risks [5] - Crude oil prices edged lower, with West Texas Intermediate futures down 0.5% to $58.85 a barrel [5] Upcoming Economic Data - Key economic data releases include the U.S. Consumer Price Index (CPI) on January 13 and the Producer Price Index (PPI) on January 14 [7][8] - The Federal Reserve's monetary policy remains a focus, with analysts anticipating a pause in rate cuts at the upcoming FOMC meeting [8] Earnings Releases - Microsoft is scheduled to release its fiscal year 2026 second-quarter financial results on January 28, 2026 [9] - Other companies reporting earnings on January 12, 2026, include WaFd Inc, Platinum Group Metals, Lifecore Biomedical, and Loop Industries [9] Individual Stock Movements - Intel Corporation shares surged by 10.8% following a positive social media post from President Trump [10] - General Motors Company experienced a 0.3% dip after announcing $7.1 billion in special charges for restructuring [11] - Walmart shares advanced 2% due to its inclusion in the Nasdaq 100 index starting January 20 [10]

Economic Indicators - December CPI is expected to remain unchanged from November at +2.7% y/y, while December core CPI is anticipated to rise to +2.7% y/y from +2.6% y/y in November [1] - October new home sales are projected to decline by -10.6% m/m to 715,000 [1] - November PPI final demand is expected to increase by +2.7% y/y, with core PPI also expected to climb by +2.7% y/y [1] - November retail sales are anticipated to increase by +0.5% m/m and +0.4% m/m excluding autos [1] - December existing home sales are expected to rise by +2.2% m/m to 4.22 million [1] - Weekly initial unemployment claims are expected to increase by +7,000 to 215,000 [1] - January Empire manufacturing survey is expected to rise by +4.9 to 1.0 [1] - December manufacturing production is expected to fall by -0.1% m/m [1] - January NAHB housing market index is expected to increase by +1 to 40 [1] Federal Reserve and Market Reactions - Fed Chair Powell stated that the Federal Reserve received grand jury subpoenas from the Justice Department, which could lead to a criminal indictment related to his congressional testimony [2] - Concerns about Fed independence have increased due to the Trump administration's criticism, leading to a "Sell America" sentiment in US asset markets [3] - The 10-year T-note yield rose by +2 bp to 4.19% amid these concerns [3] - March 10-year T-notes are down by -4 ticks, with the yield up by +2.6 bp to 4.191% [6] - The 10-year breakeven inflation rate rose to a 1.75-month high of 2.30% [6] Stock Market Movements - The S&P 500 Index is down -0.23%, the Dow Jones is down -0.58%, and the Nasdaq 100 is down -0.27% [4] - Credit card companies and bank stocks are declining after President Trump announced that lenders must cap interest rates at 10% for one year, with Synchrony Financial down more than -7% [10] - Mining stocks are rising as gold and silver prices reached new all-time highs, with Hecla Mining up more than +8% [11] - Shake Shack reported preliminary Q4 revenue of $400.5 million, below its forecast, leading to a decline of more than -2% in its stock [12] - ANI Pharmaceuticals is up more than +8% after forecasting 2026 net revenue of $1.055 billion to $1.1185 billion, exceeding consensus expectations [14]

Core Viewpoint - President Trump's proposal to cap credit card fees at 10% has led to significant declines in the stock prices of major credit card lenders, raising concerns about the potential impact on their earnings and the broader financial industry [1][4]. Group 1: Market Reaction - Shares of Capital One and Synchrony Financial fell as much as 9% in premarket trading, while American Express and Citigroup saw declines of about 4%, and JPMorgan Chase and Bank of America were down closer to 2% [1]. Group 2: Proposal Details - Trump announced a one-year cap on credit card interest rates of 10%, effective January 20, 2026, but the method of implementing this cap without Congressional legislation remains unclear [2][3]. Group 3: Financial Impact - The proposed cap could reduce large bank earnings before tax by an estimated 5%-18%, potentially wiping out earnings for lenders focused solely on credit cards, such as Capital One and Synchrony Financial [4]. Group 4: Industry Context - Credit card interest rates have significantly increased, with the average rate reaching 22.30%, up from 16.28% in 2020, indicating a growing concern over high fees in the industry [5]. Group 5: Political Support and Opposition - The proposal has garnered attention from politicians across the spectrum, with some expressing support for limitations on high fees, while banking industry trade groups have warned against the negative consequences of such a cap [6][7][8].

Core Viewpoint - U.S. stock futures are lower, with significant declines in several companies' shares during pre-market trading, particularly Exelixis Inc, which reported preliminary financial results for fiscal year 2025 [1]. Group 1: Exelixis Inc - Exelixis reported preliminary US net product revenue of $2.123 billion for fiscal year 2025 [1]. - The company projects net product revenue for 2026 to be between $2.325 billion and $2.425 billion [1]. - Exelixis shares fell 4.6% to $42.01 in pre-market trading following the announcement [1]. Group 2: Other Companies - Synchrony Financial shares dipped 9.5% to $78.61 in pre-market trading [3]. - Stoke Therapeutics Inc declined 8.7% to $30.00, announcing updates on enrollment timelines and Phase 3 data for zorevunersen [3]. - Capital One Financial Corp fell 8.4% to $228.35 in pre-market trading [3]. - Bread Financial Holdings Inc tumbled 8.3% to $73.72 [3]. - Himalaya Shipping Ltd dipped 5.7% to $8.72 [3]. - Mesoblast Ltd fell 5.1% to $19.90, despite a previous gain after reporting increased sales [3]. - American Express Co declined 5% to $357.00 [3]. - Lumentum Holdings Inc fell 4.7% to $335.00 [3]. - WPP PLC declined 4.5% to $22.63 [3]. - Citigroup Inc fell 4% to $116.50, with earnings results expected on January 14 [3].