Tech Weighs After Solid Retail Sales, Bank Results

Published as of: January 14, 2026, 9:14 a.m. ET

(Wednesday market open) Stocks backpedaled and volatility surged amid geopolitical rumblings, fresh bank earnings, and economic data. Tech stocks mostly fell, weighing on major indexes, but at first glance, today's inflation and retail sales numbers appeared positive.
 

December's Producer Price Index (PPI) showed wholesale inflation up 0.2%, in line with consensus. Core PPI—excluding food and energy—was flat and below the 0.2% estimate. November retail sales climbed 0.6% versus a 0.4% consensus. "More of the focus is on retail sales, given the inflation data are still plagued by the government shutdown," said Kevin Gordon, head of macro research and strategy, Schwab Center for Financial Research (SCFR). "The jump in November sales confirms that consumers had relatively strong demand heading into the holiday season, and it was good to see healthy breadth across categories. There was slight downside in that October sales were revised down, but not by enough to cause major concern."
 

Major indexes slipped yesterday amid banking weakness following JPMorgan Chase (JPM) results that disappointed investors, though the S&P 500 Equal Weight Index (SPXEW) forged new highs. A slightly cool December Consumer Price Index (CPI) report pushed down Treasury yields. Crude oil rose again this morning amid Iran unrest, while investors await a possible Supreme Court tariff decision today that could affect shares of retailers and other companies which rely heavily on imports.

1. Regional banks join parade—are roaches vanquished? A parade of financial earnings from large and small institutions this week continues tomorrow morning with Goldman Sachs (GS) and Morgan Stanley (MS). Along with them come smaller, regional banks—which are more exposed to the ups and downs of local real estate and small businesses. The KBW Nasdaq Regional Banking Index (KRX) lost ground earlier this week after rising 18% from its October low to last week's high. Some well-known regional banks including Regions Financial (RF) and PNC Financial Services (PNC) enjoyed stellar fourth quarters on the charts, and both report Friday. A moribund U.S. housing market on the one hand and falling interest rates on the other create a tug of war for regional bank fortunes. The commercial real estate market remains risky, and many small banks have exposure. Back in October during its earnings call, JPMorgan Chase (JPM) CEO Jamie Dimon used a "cockroach" analogy after some hiccups in the credit market—implying there might be more to come—but small banks appeared to pull through with little or no damage.
    
2. Productivity gains in focus as fundamental tailwind: Despite this week's early struggles on Wall Street, the bullish backdrop remains from a fundamental standpoint, said Nathan Peterson, director of derivatives research and strategy, SCFR. He noted a firm economy with double-digit earnings growth despite labor market softness. He also cited coming stimulus from major economic legislation including tax rebates and credits, along with deregulation. "The AI secular growth story is intact since we are still in infrastructure investment cycle, capital markets are opening up with AI initial public offerings expected later this year, and the Fed is accommodative," Peterson added. One argument for AI adoption is possible productivity benefits that can improve company profit margins, but it's unclear how much AI influenced last week's strong third quarter productivity data. Rising productivity can mean lower costs for companies and less inflation for consumers, but a single quarter isn't the final word. Banks are a business that many analysts think can quickly benefit from incorporating AI, something executives might get asked about on earnings calls this week. Also, the Federal Reserve's "Beige Book" this afternoon might offer clues on productivity changes across U.S. regions.
    
3. Banks fight as crypto bill hits key stage: Banks are waging a fierce battle as long-awaited legislation that will set the rules for crypto markets nears a pivotal stage on Thursday. That's when the Senate Banking Committee's draft bill is scheduled for markup—votes on amendments and whether to approve the overall draft. The committee released its latest draft late Monday. One big change: It says companies can't pay interest to people for passively holding stablecoins in an account, though they can offer certain "rewards" for using the stablecoins. That sounds like a win for banks, which are defending their deposit business. But it's more complicated than that, and the banks don't consider it a win, said Michael Townsend, managing director of legislative and regulatory affairs at Schwab. "There are a lot of moving parts here and I expect amendments to emerge between now and Thursday's committee markup," Townsend said. Another sticking point: The draft also doesn't contain provisions prohibiting elected officials from profiting from the industry—a provision sought by Democrats—and at least some Democratic votes will be needed for Senate passage.

Wells Fargo (WFC) dropped 1.7% in early trading following earnings that appeared to disappoint. Though the company's per-share results exceeded analysts' earnings expectations, revenue fell short of consensus with a 4.5% year-over-year rise. Net interest income rose 4%, driven by higher loan and investment securities balances, the company said.
 

Bank of America (BAC) inched higher ahead of the open after the company beat analysts' earnings and revenue estimates, driven in part by a 10% rise in net interest income that reflected strength in global markets activity, fixed-rate asset repricing, and higher deposit and loan balances.
 

Citigroup (C) climbed more than 1% in early trading despite quarterly revenue results that fell short of consensus. Earnings per share surpassed the average Wall Street expectation, however. Revenue weakness might have reflected a 1% drop in the markets division, driven by lower fixed income and equity revenue. One possible source of positive energy could be Citigroup's forecast for 5% to 6% net-interest income gains in 2026. Another could be strong fourth quarter banking revenue.
 

Silver (/SI) surged again early Wednesday, climbing 6% to new record highs above $92 an ounce. Gold (/GC) also traded higher, both helped partly by Fed independence and geopolitical concerns, along with a slight drop in the U.S. dollar. Shares of mining firms Newmont (NEM) and Freeport-McMoRan (FCX) rode higher on the coattails of the metals complex.
 

Bitcoin (/BTC) climbed about 0.7% ahead of the opening bell, building on yesterday's gains and climbing back above $95,000 for the first time in more than a week. Stocks related to cryptocurrencies generally rose early Wednesday. In other news, BitGo, a digital wallet and custody firm, expects to launch its initial public offering (IPO) next week, Barron's reported.
 

Boeing (BA) rose 2% Tuesday on news it outsold Airbus in new aircraft orders last year and on a large order from Delta (DAL) for 30 Boeing 787 Dreamliner jets. It was Delta's first-ever purchase of that model, Bloomberg reported, and could signal the airline's optimism for international travel demand.
 

Netflix (NFLX) gained more than 1% early Wednesday, bolstered by a Bloomberg report that it might adjust its bid for Warner Bros. Discovery (WBD) to an all-cash offer. Netflix reports next week, a chance for investors to get up-to-date information on the bid.
 

Energy stocks generally rose early Wednesday on strength in the crude oil market, led by nearly 1% gains for Conoco Phillips (COP) and 0.6% for Exxon Mobil (XOM).
 

JPMorgan Chase (JPM) tumbled 4% Tuesday after reporting its quarterly results. Investment banking revenue fell 5% year over year. It's rare for JPMorgan to miss on this metric, and investors will check if other big banks struggled there as well. Other major banks fell in sympathy with JPM.
 

Moderna (MRNA) posted a 17% Tuesday gain, possibly signaling institutional accumulation amid an improving technical outlook for shares, Barron's noted.
 

Tesla (TSLA) fell slightly today after CEO Elon Musk announced a shift to subscriptions-only for Full Self Driving, Barron's reported.
 

Semiconductor stocks slid almost across the board early Wednesday after a strong Tuesday when they rose about 1% as a sector on strength in Intel (INTC), Nvidia (NVDA), and Advanced Micro Devices (AMD). Energy firms linked to AI demand, including GE Vernova (GEV) and Nucor (NUE), also performed well Tuesday.

Divorce and your finances: If you're getting divorced, it's important to consider the many ways this may affect your financial life. Learn some steps to prioritize in Schwab's latest financial planning article.
 

Debt ceiling primer: The debt ceiling is the total amount the federal government is authorized to borrow. Uncertainty around it can affect financial markets, particularly if investors begin to question the government's ability to meet its obligations on time. Learn more in Schwab's look at this important metric.

The dollar has already given up a large amount of ground over the last five years to silver and gold as investors seek assets not tied to the U.S. currency. However, most of the gains for these two metals came in the last year. The U.S. dollar index ($DXY–candlesticks) has barely risen versus sharp gains for silver (/SI–blue line) and gold (/GC–purple line).

Check out the investors' calendar for a summary of the top economic events and earnings reports on tap this week.

January 15: Expected earnings from Morgan Stanley (MS), Goldman Sachs (GS), BlackRock (BLK), and First Horizon (FHN).

January 16: December industrial production and expected earnings from PNC Financial (PNC), State Street (STT), M&T Bank (MTB), and Regions Financial (RF).

January 19: No data or earnings, markets closed in observance of Dr. Martin Luther King Jr.'s birthday.

January 20: Expected earnings from 3M (MMM), U.S. Bancorp (USB), Fastenal (FAST), D.R. Horton (DHI), Fifth Third Bancorp (FITB), KeyCorp (KEY), Netflix (NFLX), Interactive Brokers Group (IBKR), and United Airlines (UAL). 

January 21: Expected earnings from Johnson & Johnson (JNJ), Truist (TFC), Halliburton (HAL), Kinder Morgan (KMI), and Steel Dynamics (STLD).