Good Morning Investors!!! Stocks are back after the long weekend, and the vibe is a bit jumpy. Fresh tariff threats tied to Greenland have global markets on edge, with investors leaning into “safe” spots like gold. Bonds are also stealing the spotlight, with the 10-year U.S. Treasury yield pushing higher, which can make stock prices feel heavier. Today’s key beats: big bank results from U.S. Bancorp, Netflix after the close, and a headline pharma deal as GSK goes shopping. Plus, we zoom in on sports betting and online gaming stocks, and what could move the group next.
Key Market DriversTariff talk spooks the open: U.S. markets were shut Monday, so Friday was the last close. Coffee met chaos. Standard and Poor’s 500 Index (S&P 500) futures were down 1.8%, after new tariff talk (a tax on imports) tied to Greenland. This matters because tariffs can raise costs, dent profits, and cool sales fast. Europe’s index fell 1.3% and investors ran to safer spots, with gold near $4,728 an ounce. A Supreme Court tariff case is pending. 
Gold 1 year Price Chart – Jan 20, 2026
Bond yields climb, and stocks feel it: The 10-year U.S. Treasury yield ended Friday at 4.24% and pushed toward 4.27% overnight. When yields rise, bond prices fall, and stocks can wobble because higher rates make future profits worth less. Rates moved up around the world, not just here, with Japan’s 40-year government bond yield hitting 4% in the latest selloff. Global rates often travel in a pack, so a jump abroad can push U.S. borrowing costs up too, and that raises the bar for stocks. Oil holds near $60, with China in focus: West Texas Intermediate (WTI) was near $58.95 a barrel, while Brent (global oil benchmark) sat near $63.83 early this morning. Prices held steady despite tariff noise, helped by a weaker dollar and signs that China’s demand may not be rolling over. The 10-year Treasury yield ended Thursday near 4.17%, and the dollar stayed firm versus major currencies. Higher yields can act like a speed bump for stock prices, but they also pay bond investors more for waiting. Earnings season is back on the calendar: Earnings season is the report card for stocks, and it is back after the long weekend. Netflix reports after Tuesday’s close, and the market will listen for any shift in ad sales and live events. Analysts expect S&P 500 profits to rise about 8.8% from a year ago. For new investors, the surprise is that the outlook can matter more than last quarter. Watch for guidance on sales and costs, because that shapes Wall Street’s next guess. If the outlook looks shaky, even “good” numbers can fall flat. |
Thoughts from InvestorsGrow:
Today is light on big U.S. data, so earnings may steer the ship. Think of it like a road trip with no weather report. You end up staring at the gas gauge (profits) and the road signs (company outlook) a lot more.
For the economy, Wednesday at 10:00 AM ET is the main event. Construction spending is a “how busy are builders” check. Pending home sales are like a handshake that comes before the final closing. If both beat, rates can tick up because it hints the economy still has pep. If both miss, rates can cool and rate-sensitive stocks may breathe easier.
For earnings, watch “guidance”, Netflix is the headline act after the close, so listen for notes on ads, costs, and what they think 2026 looks like. U.S. Bancorp and Johnson & Johnson are more like the steady adults in the room. If they sound calm, markets often do too.Sports Betting and Online Gaming
Online sports betting and internet gaming (online casino games) is the “chips on your phone” business. It is already big, about a $14 billion U.S. market. It matters to investors because it tracks consumer spending, and more states making it legal can mean more users and more sales. The flip side is that rules, taxes, and ad costs can change the mood fast.
Right now, investors are watching prediction markets (platforms where people trade on outcomes) that are testing sports. That added competition has kept the group choppy. The VanEck Gaming exchange-traded fund (BJK) slipped about 2% last week, closing near $39.34 on Jan 16 vs. $40.21 on Jan 9. Traders may stay cautious until earnings and regulators weigh in.
DraftKings (DKNG):
DraftKings runs mobile sports betting and iGaming, plus daily fantasy sports. It stands out as an app-first brand that also builds betting software, so it can move fast without owning casinos. Shares fell about 8% on Friday, a reminder that this stock can swing when new rivals show up.
Flutter Entertainment (FLUT):
Flutter is a global betting group and it owns FanDuel in the U.S. Its edge is size and a leading U.S. spot, which can help spread costs across more bets and more markets. The risk is that new rivals or new rules can hit the mood in a hurry.
MGM Resorts (MGM):
MGM is a casino and resort giant, and it co-owns BetMGM with Entain. Its edge is the link between in-person guests and the online app, using rewards to bring people back. BetMGM has pointed to strong online casino growth, but promo spending still matters for profit.
InvestorsGrow Takeaway:
This industry is like a busy food court, with someone always handing out coupons. Watch two dials: rules and promo spend. If those calm down, the winners can look a lot steadier.
GSK (GSK)
GSK (GSK) makes vaccines and medicines for things like asthma, infections, and cancer. It spends big on research, then sells drugs for years. When a key drug loses its patent, sales can drop fast, so the pipeline matters.
This morning, GSK said it will buy RAPT Therapeutics (RAPT), a California biotech, in an all-cash deal. The price is $58 per share, valuing it at about $2.2 billion. The main asset is ozureprubart, which targets immunoglobulin E (IgE) (antibody tied to allergic reactions) to help prevent severe food allergy attacks. It is in Phase IIb (mid-stage trial).
Why should investors care? This is mergers and acquisitions (M&A) (companies buying each other) at work. Big drug makers buy smaller labs to restock the “drug fridge” before patents expire. If ozureprubart works, GSK could add a long-acting allergy option, which fits its push for meds you take less often.
One plain-English data point: GSK is paying about 65% above RAPT’s last close to get the deal done. (Term: Acquisition premium is extra price paid above the market.) Premiums can look rich, but they can beat years of slow lab work. Next up, watch for trial updates, the next study plan, and whether the deal closes in the first quarter of 2026.
InvestorsGrow Takeaway:
GSK is paying up for a shot at a future allergy win, and betting that fewer-dose drugs can win fans. The bull case is simple: if the drug works, GSK can scale it fast. The red flags: it is not approved yet, and trials can fail or slip. Keep an eye on the pipeline, not just the headline.
