MPC Morning Call 15th January 2026 – Stocks drift lower on Tech & Bank earnings, Silver rockets higher
Stocks continued to be weighed down by Bank earnings overnight, with Tech contributing to the weakness. Silver on the other hand, rocketed 7% to a record high of $93, now up 46% in the last month
WATCH ON YOUTUBE MPC Morning Call 15 th January 2026 – Stocks drift lower on Tech & Bank earnings, Silver rockets higher Stocks continued to be weighed down by Bank earnings overnight, with Tech contributing to the weakness. Silver on the other hand, rocketed 7% to a record high of $93, now up 46% in the last month Major U.S. banks came under pressure despite mostly stronger-than-expected earnings. Bank of America and Citigroup shares each dropped over 3% even after beating Wall Street forecasts, while Wells Fargo slid more than 4% as its revenue missed estimates. JPMorgan Chase reported a fourth-quarter profit decline linked to charges from acquiring Apple’s credit card business from Goldman Sachs and warned about potential fallout from President Trump’s proposed cap on credit card interest rates. JPMorgan CEO Jamie Dimon defended the independence of the Federal Reserve amid controversy over a criminal probe into Fed Chair Jerome Powell, calling political interference with monetary policy harmful. Economic data showed mixed signals for inflation and consumer spending. Producer price index (PPI) data for October and November indicated moderate monthly gains, with core PPI—excluding food and energy—up 0.7% in October and 0.2% in November, resulting in a 3.5% annual increase. Retail sales rose 0.6% in November, rebounding from a weak October and suggesting underlying strength in consumer spending. However, the Federal Reserve’s Beige Book noted growing cost pressures from tariffs, as more companies began passing higher import and production costs to consumers, signalling possible inflation persistence. Meanwhile, tech stocks fell sharply after reports that China restricted imports of Nvidia’s H200 chips, hurting chipmakers like Nvidia and Broadcom and dragging the broader tech sector lower. In contrast, crypto-related stocks such as Coinbase, Riot Platforms, and MicroStrategy surged alongside Bitcoin, buoyed by optimism over potential progress on the Digital Asset Market Clarity Act—a U.S. bill aimed at establishing regulatory certainty for digital assets. Gold prices surged to new record highs above $4,640 an ounce on Wednesday as escalating unrest in Iran fueled safe-haven demand, with silver and platinum also rallying sharply. Protests in Iran and warnings of potential U.S. military action heightened geopolitical risks, while softer U.S. inflation data and expectations of future Fed rate cuts further supported bullion. Concerns over the Federal Reserve’s independence amid a criminal probe into Chair Jerome Powell added to market unease, boosting demand for defensive assets. Other metals, including copper and palladium, also gained amid the broader rally in commodities. Corporate Earnings Wells Fargo -5% shares fell nearly 5% after the bank missed fourth-quarter profit estimates due to $612 million in severance costs tied to CEO Charlie Scharf’s ongoing efficiency drive. While net income rose to $5.36 billion, interest income slightly missed expectations, and 2026 guidance came in just below analyst forecasts. The lender, now free from its asset cap, plans to expand in credit cards, AI-driven services, and commercial lending but warned that President Trump’s proposed cap on credit card rates could limit lending. Despite continued job cuts, analysts said costs remain under control and loan quality strong, suggesting potential growth later in the year as mortgage activity improves. Citigroup -3.4% beat fourth-quarter profit estimates, fuelled by a rebound in mergers and acquisitions and stronger corporate banking demand, with investment banking fees jumping 35% and overall banking revenue up 78%. CEO Jane Fraser’s reorganization—focused on cost cuts, automation, and regulatory reforms—has improved operations as the bank continues divesting noncore assets like Banamex and its Russian unit. Despite a one-time loss tied to the Russia sale, Citi’s adjusted results remained solid, helped by rising net interest income and expanding prime brokerage activity. While challenges remain, including a lower-than-target return on equity, analysts view Citi’s turnaround as gaining traction heading into 2026. Government Bond Yields Commodities, Energy & FX ASX Overnight: SPI 8816 (+0.24%) The Day Ahead: The ASX should remain buoyant with commodities remaining firm. Tech may see some weakness, following the Nasdaq. Silver stocks should rocket today! The day ahead No Data Morgan Stanley, Goldman Sachs and Blockrock earnings tonight
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