Market Performance - U.S. stock futures fell slightly, with S&P 500 and Dow Jones Industrial Average futures down nearly 0.1% [1][8] - On Monday, the S&P 500 rose 10.99 points (0.2%) to 6,977.27, the Dow Jones increased by 86.13 points (0.2%) to 49,590.20, and the Nasdaq composite gained 62.56 points (0.3%) to 23,733.90 [5][6] - For the year, the S&P 500 is up 131.77 points (1.9%), the Dow Jones is up 1,526.91 points (3.2%), the Nasdaq is up 491.91 points (2.1%), and the Russell 2000 is up 153.79 points (6.2%) [6] Federal Reserve and Regulatory Concerns - Concerns over the potential weakening of the Federal Reserve's independence in setting interest rates have emerged, with investors speculating that President Trump may push for faster rate cuts [1][8] - Tensions between President Trump and Fed Chair Jerome Powell escalated after the Department of Justice subpoenaed the Fed, threatening a criminal indictment related to Powell's testimony on building renovations [1][8] Sector-Specific Developments - Alphabet, Google's parent company, gained 1% in market value, surpassing USD 4 trillion, following a deal with Apple to enhance Siri using Google's Gemini [7] - Credit card companies experienced significant losses after Trump proposed a one-year, 10% cap on credit card interest rates, impacting their profit margins. Synchrony Financial fell 8.4%, Capital One Financial dropped 6.4%, and American Express decreased by 4.3% [8][9]

Group 1 - The dollar index (DXY00) fell by -0.27% due to threats to the Federal Reserve's independence following comments from Fed Chair Powell regarding potential criminal charges from the Justice Department [1][2] - The markets are currently pricing in a 5% chance of a -25 basis point rate cut at the upcoming FOMC meeting on January 27-28 [2] - The Federal Reserve is expected to cut interest rates by approximately -50 basis points in 2026, contrasting with the Bank of Japan's expected +25 basis point increase and the European Central Bank's anticipated unchanged rates [3] Group 2 - The dollar is under pressure as the Fed increases liquidity by purchasing $40 billion a month in T-bills, which began in mid-December [4] - Concerns regarding President Trump's potential appointment of a dovish Fed Chair are contributing to bearish sentiment for the dollar, with Kevin Hassett being viewed as the most dovish candidate [4] - The euro (EUR/USD) rose by +0.29% as threats to the Fed's independence weakened the dollar, while the Eurozone's January Sentix investor confidence index increased to a 6-month high of -1.8, surpassing expectations [5]

Core Insights - Gold prices reached a record high of $4,640 per ounce, driven by investor concerns regarding the Federal Reserve's independence amid a criminal investigation into Fed Chair Jerome Powell [1][3][8] - The investigation by the Justice Department is perceived as a political maneuver to pressure the Fed into lowering interest rates, which could undermine the legitimacy of U.S. monetary policy [2][5][8] Gold Market Dynamics - Gold futures increased nearly 2.7% to $4,625 per ounce, following a more than 4% rally the previous week, influenced by persistent inflation concerns and expectations of further interest rate cuts by the Fed [3][4] - The rise in gold prices reflects a trend where investors seek safe-haven assets during economic uncertainty, particularly when the independence of the Federal Reserve is questioned [5][8] Federal Reserve Context - The Federal Reserve has faced political pressure, with Powell asserting that interest rate decisions should be based on public interest rather than presidential preferences [2][3] - The Fed has cut interest rates in response to labor market weaknesses, but there is a division among policymakers regarding future rate cuts, especially with inflation remaining above the 2% target [7]

Core Insights - Home Depot's future performance is closely tied to interest rate trends leading into 2026, with current housing turnover at a 40-year low impacting demand [1][9] - The company is strategically positioned to benefit from a potential recovery in 2026, focusing on its Pro ecosystem and specialty building products [3][5] Demand and Market Conditions - Higher interest rates have created affordability concerns for new buyers and discouraged existing homeowners from undertaking renovations, leading to subdued demand [2][9] - The Federal Reserve has begun to cautiously cut rates, which could unlock pent-up demand and boost comparable sales growth in the future [1][2] Strategic Initiatives - Home Depot is enhancing customer experience through faster fulfillment and advanced digital tools aimed at professional contractors, including project planning and AI-powered tools [4][5] - The integration of GMS and SRS provides unique access to essential specialty building products, positioning the company for a surge in remodeling projects as borrowing costs decline [3][5] Financial Metrics - Home Depot's shares have decreased by 3.8% over the past year, outperforming the industry decline of 9.8% [6] - The company trades at a forward price-to-earnings ratio of 24.86, higher than the industry average of 22.60, and carries a Value Score of F [7][9] - The Zacks Consensus Estimate indicates a year-over-year sales growth of 3.2% for the current financial year, with a projected decline in earnings per share of 4.8% [11]

Core Viewpoint - The dollar index is experiencing a decline due to threats to the Federal Reserve's independence, particularly following comments from Fed Chair Powell regarding potential criminal charges from the Justice Department related to his testimony on Fed renovations [1][2]. Group 1: Federal Reserve Actions - Fed Chair Powell indicated that the Justice Department has issued grand jury subpoenas threatening criminal charges related to his June testimony on Fed headquarters renovations [2]. - Powell emphasized that the threat of criminal charges stems from the Fed's commitment to setting interest rates based on public interest rather than presidential preferences [2]. - The Federal Reserve is expected to cut interest rates by approximately 50 basis points in 2026, contributing to the dollar's underlying weakness [3]. Group 2: Market Reactions - The dollar index (DXY00) is down by 0.32%, reflecting market concerns over the Fed's independence and potential changes in leadership [1]. - The euro (EUR/USD) has risen by 0.35%, supported by the Fed's situation and an increase in the Eurozone's investor confidence index to a six-month high [5]. - Markets are currently pricing in a 5% probability of a 25 basis point rate cut at the upcoming FOMC meeting scheduled for January 27-28 [2]. Group 3: Future Expectations - The Federal Reserve has begun purchasing $40 billion a month in T-bills to boost liquidity in the financial system, which is also putting pressure on the dollar [4]. - Concerns are growing that President Trump may appoint a dovish Fed Chair, which could further negatively impact the dollar [4]. - National Economic Council Director Kevin Hassett is viewed as the most likely candidate for the next Fed Chair, perceived as the most dovish option by the markets [4].

Core Insights - Gold and silver prices have reached record highs, with gold at approximately $4,600 per ounce and silver at $83.96 per ounce, driven by safe-haven demand amid geopolitical tensions and economic uncertainty [2][11] - The rally in precious metals is supported by expectations of interest rate cuts by the Federal Reserve, which typically benefits non-yielding assets like gold and silver [3][6] Market Drivers - Geopolitical tensions, particularly unrest in Iran and strained U.S.-Europe relations, have heightened safe-haven buying [4] - Political pressure on the Federal Reserve and controversies surrounding its leadership have contributed to increased demand for precious metals [5] Investment Opportunities - Agnico Eagle Mines Limited (AEM) is a leading gold producer with strong growth prospects, reporting record adjusted net income and a Zacks Rank 1 (Strong Buy) [8][10] - Royal Gold Inc. (RGLD) has diversified its portfolio and reported record revenues, with a Zacks Rank 1, indicating strong growth potential [12][13] - Pan American Silver Corp. (PAAS) has expanded its silver reserves and reported significant revenue growth, also holding a Zacks Rank 1 [14][16] - Hecla Mining (HL), the largest silver producer in the U.S. and Canada, is advancing its projects and has a Zacks Rank 2 (Buy), indicating solid growth prospects [17][19]

Market Performance - Wall Street's major equity averages ended positively, with the S&P 500 reaching a new record high [1] - Data storage companies saw significant gains, with Sandisk (SNDK) up over +12% and Seagate Technology Holdings (STX) rising more than +6% [1] - Chip stocks advanced, led by Intel (INTC) which surged over +10% following supportive comments from President Trump [1] - Vistra (VST) and Oklo (OKLO) also experienced notable increases of over +10% and +7% respectively after securing power supply agreements with Meta Platforms [1] - Qualcomm (QCOM) faced a decline of over -2% after a downgrade by Mizuho [1] Economic Indicators - The U.S. Labor Department reported a nonfarm payroll increase of 50K in December, below the expected 66K, while the unemployment rate fell to 4.4%, better than the anticipated 4.5% [4] - Average hourly earnings rose by +0.3% month-over-month and +3.8% year-over-year, surpassing expectations [4] - The University of Michigan's preliminary consumer sentiment index improved to 54.0 in January, exceeding expectations of 53.5 [4] Federal Reserve Insights - Richmond Fed President Tom Barkin noted modest job growth and a low-hiring environment, emphasizing the need for vigilance regarding unemployment and inflation risks [5] - San Francisco Fed President Mary Daly described the current phase as "fine-tuning" rather than making large policy changes [5] - U.S. rate futures indicate a 94.3% probability of no rate change and a 5.7% chance of a 25 basis point rate cut at the upcoming Fed meeting [5] Upcoming Economic Data - The U.S. consumer inflation report for December is anticipated to influence expectations for future rate cuts by the Fed [6] - Other significant data releases include U.S. retail sales for November and various indices related to manufacturing and job claims [6] Corporate Earnings - The fourth-quarter earnings season is set to begin, with major banks like JPMorgan Chase (JPM), Bank of America (BAC), and Wells Fargo (WFC) reporting this week [8] - Other notable companies scheduled to report include Morgan Stanley (MS), Goldman Sachs (GS), and Delta Air Lines (DAL) [8] International Market Developments - The Euro Stoxx 50 Index declined by -0.18% amid concerns over Fed independence and President Trump's proposed cap on credit card interest rates [10] - The Eurozone's Sentix Investor Confidence Index improved to -1.8, better than the expected -5.1 [11] - China's Shanghai Composite Index reached a new 10-year high, driven by advancements in AI and expectations of policy support [12]

One kilogram gold bars stacked at the Perth Mint Refinery, operated by Gold Corp.Matt Jelonek | Bloomberg | Getty ImagesGold hit a fresh record high on Monday, extending a blistering rally as investors piled into havens amid a swirl of geopolitical and policy shocks in recent days.Spot gold advanced 2% to hit over $4,600 an ounce for the first time, before paring gains slightly, data from LSEG showed. Prices have risen around 6% this year alone so far.An investigation into Federal Reserve Chairman Jerome Po ...

Core Insights - The article discusses the impact of consecutive interest rate cuts in the second half of 2025 on the carry of various fixed-income ETFs [1] Group 1 - The focus is on how interest rate cuts influence fixed-income investment strategies [1]

By Peter Tchir of Academy SecuritiesFast And Furious 47The Fast and Furious franchise is on its 10th or 11th movie. The U.S. government is on its 47th President.In an interesting “mash-up,” we have entered into the arena of Fast and Furious 47.I don’t think we have ever seen the generation of so many headlines, on so many subjects, so quickly from any world leader, as we’ve seen since the start of this year!Aside from the “obvious” headlines on Venezuela, which after Friday’s press conference looks more and ...