MPC Morning Call 22nnd January 2026 – Stocks recover as Trump brings TACO Wednesday to Davos
Stocks recovered overnight after President Donald Trump said he won’t impose tariffs on European nations after reaching a framework for a future deal on Greenland following a meeting with NATO chief Mark Rutte.
WATCH ON YOUTUBE MPC Morning Call 22nnd January 2026 – Stocks recover as Trump brings TACO Wednesday to Davos Stocks recovered overnight after President Donald Trump said he won’t impose tariffs on European nations after reaching a framework for a future deal on Greenland following a meeting with NATO chief Mark Rutte. At the World Economic Forum in Davos, President Donald Trump announced that he would no longer pursue new tariffs on European nations after securing a framework agreement regarding Greenland. Trump said the deal, formed in coordination with NATO Secretary General Mark Rutte, satisfies U.S. demands over the Arctic island and establishes American involvement in the region’s mineral rights and defense systems. The agreement includes plans for a "Golden Dome" — a multi‑layered missile defense system — with shared participation between the U.S. and European partners. Following the announcement, U.S. Treasury yields declined sharply, signaling a potential easing of global trade tensions. In corporate news, Netflix reported stronger-than-expected fourth-quarter earnings but issued weaker guidance for the upcoming quarter, citing declining demand for non‑branded licensed titles. Its performance update came as the company increased its $72 billion bid for Warner Bros Discovery’s studios in an ongoing takeover contest with Paramount Skydance. Meanwhile, United Airlines shares rose after surpassing profit expectations and offering a positive forecast for the year, supported by robust travel demand among higher‑income and business customers. Other major moves in U.S. stocks included a drop in Kraft Heinz shares after a regulatory filing revealed that Berkshire Hathaway might divest its 27.5% stake in the company. Johnson & Johnson also traded lower despite stronger long-term forecasts, as it warned of substantial costs tied to a new U.S. drug pricing deal. On the upside, Halliburton reported solid fourth‑quarter earnings that beat projections, and Travelers shares gained after strong underwriting and investment income results. Investors now await a busy earnings Thursday, with reports due from major firms including Procter & Gamble, GE Aerospace, Intel, Abbott Laboratories, and Intuitive Surgical. Earnings: Johnson & Johnson (NYSE:JNJ) stock fell despite the pharmaceutical giant forecasting 2026 sales and profit ahead of expectations, adding that it anticipates a hit of “hundreds of millions” of dollars from a drug pricing deal recently notched with the U.S. government. Halliburton (NYSE:HAL) stock climbed higher after the oil services company reported fourth-quarter earnings and revenue that exceeded analyst expectations, demonstrating resilience amid challenging market conditions. Travelers (NYSE:TRV) stock gained after the property and casualty insurance giant beat estimates for fourth-quarter profit, driven by stronger underwriting performance and higher investment returns. Government Bond Yields Commodities, Energy & FX ASX Overnight: SPI 8825 (+0.47%) The Day Ahead: do the opposite of yesterday….. AU Tech and Healthcare are cheap
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