Breakfast News: Futures Slide on Trump's EU Threat
January 20, 2026
| Friday's Markets |
|---|
| S&P 500 6,940 (-0.06%) |
| Nasdaq 23,515 (-0.06%) |
| Dow 49,359 (-0.17%) |
| Bitcoin $95,370 (-0.04%) |
Source: Image created by Jester AI.
1. Trump Tariff Push Sparks Stock Selloff
S&P 500 futures fell over 1.5% early Tuesday, with the Nasdaq down as much as 2%, as U.S. markets are set to reopen after the long weekend following President Trump's fresh tariff threat on European allies and geopolitical tension surrounding Greenland.
- Retaliatory European tariffs of up to $108 billion are already being discussed: Trump's gambit is for 10% tariffs on eight European countries starting next month rising to 25% in June if no agreement on Greenland is reached. Trump is set to speak at the World Economic Forum in Davos on Wednesday.
- Companies with heavy European exposure led pre-market declines: ASML (ASML +2.07%) and Novo Nordisk (NVO +8.95%) fell over 4%, with Booking Holdings (BKNG 1.49%) down close to 1%.
2. Earnings Today From Stock Advisor Recs
Netflix (NFLX 0.04%) will report quarterly earnings after the closing bell, with revenue expected to grow by 16.8% versus the same period last year. Fool contributing analyst Anders Bylund said last week that regardless of how the Warner Bros. Discovery (WBD +0.32%) bidding plays out, "Netflix remains a cash-generating content powerhouse."
- Revenue projected to grow by 14.1% versus same period last year: Interactive Brokers (IBKR 0.43%) releases results when the market closes, aiming to build on the strong customer account growth from last quarter, with a focus on trading activity and net interest margin.
- Only missed revenue expectations twice in the past two years: 3M (MMM 1.87%) fell over 1.5% after reporting ahead of the opening bell, with revenue ahead of estimates but down on the previous quarter, with the path to simplify and improve the company's sprawling operations taking time.
3. Key Q4 Results This Week
Intel (INTC 2.81%) reports on Thursday after the market closes, with the management outlook from the previous quarter focusing on the ramp-up in new products, including the new Core Ultra Series 3 launched earlier this month.
- Dividend yield of 3.03% versus 1.14% for the S&P 500: Dividend Investor recommendation Prologis (PLD +0.33%) releases earnings Wednesday ahead of the opening bell. Optimism is riding high after CEO Hamid Moghadam said the logistics market has "one of the most compelling setups I've seen in 40 years."
- Preliminary data shows Q4 revenue grew 19% versus last year: Rule Breakers rec Intuitive Surgical (ISRG 1.17%) reports full-year results after the market closes on Thursday, with preliminary Q4 data released last week indicating growing adoption of the da Vinci and Ion robotics surgical systems, backing up Q3 results.
4. Inflation and GDP Data to Test Fed Path
Thursday brings Core Personal Consumption Expenditures (PCE) data for both October and November (due to the government shutdown), with the latter expected to be 2.7%, up from 2.8% in September. It remains the Federal Reserve's preferred inflation gauge.
- Outperformance expected versus the 3.3% Q3 2024 figure: After the initial delayed release of the Q3 GDP figure in late December, the revision on Thursday is due to match the 4.3% previously noted, although any changes higher or lower could impact how investors view the broader economy.
- Both data sets are projected to be in expansionary territory: Friday sees the preliminary release of Services and Manufacturing Purchasing Managers Index (PMI), with readings of 52.8 and 52.1 expected. Any figure above 50 indicates growth.
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