Good Morning Investors!!! Markets closed last week in a bit of a tug-of-war, and this week looks even busier. The Federal Reserve meets, Congress faces a funding deadline, and big-name earnings could swing the mood fast. Overnight, a stronger yen and a jump in gold hinted that nerves are back on the menu. We are also watching rate-sensitive real estate stocks and a company that is spinning off a piece of its business. First stop today is 8:30 AM ET with fresh factory-order data.
Key Market DriversWashington noise: Fed meeting plus shutdown clock: The Federal Reserve meets this week, with a decision due Wednesday, Jan. 28. Traders expect no change, but bets point to one rate cut later this year. The chatter is loud, with talk of a new Fed chair pick and a government probe tied to Chair Jerome Powell. At the same time, Congress is racing to fund the Department of Homeland Security (border and emergency agency) before Friday, Jan. 30, or parts of government could pause. A shutdown can slow data reports and shake confidence. Markets hate surprises, even when they are made in Washington. 
S&P 500 – 1yr Chart – Jan 26, 2026
Earnings season gets real: Intel stumbles, Big Tech up next: Friday’s close was a tug-of-war. The Dow Jones Industrial Average fell 0.6%, the S&P 500 was flat, and the Nasdaq Composite rose 0.3%. Not a huge move, but the mood was jumpy. Intel (INTC) dropped 17% after its guidance disappointed. Now the spotlight swings to Apple (AAPL), Microsoft (MSFT), Meta Platforms (META), and Tesla (TSLA) this week. Investors want proof that big spending on artificial intelligence turns into sales, not just shiny servers. Yen jolt, gold sprints: risk mood gets jumpy: Overnight, the Japanese yen jumped as traders worried about joint action to support it. The move hit Japan’s Nikkei 225 (Nikkei-Japan’s main stock index), which slid about 1.8%. Europe was calmer, but you could feel the nerves through the screen. At the same time, gold popped above $5,000 an ounce as investors looked for a safe-haven (assets investors buy when scared). A softer U.S. dollar (USD) can lift metals, since it makes them cheaper overseas. Currency swings can spill into tech, travel, and global funds. Oil bumps higher on winter outages and Iran tension: Oil prices climbed after winter storm Fern froze some U.S. output. About 250,000 barrels a day went offline. Brent crude (global oil benchmark) was near $66 a barrel and West Texas Intermediate (U.S. oil benchmark) near $61. When oil rises, it can act like a tiny tax at the gas pump. It can also push up inflation, which the Fed watches closely. Energy stocks often cheer, while airlines and shipping firms may groan. |
Thoughts from InvestorsGrow:
Durable goods (coming out at 8:30 am ET) can move both stocks and bonds fast because it hints at how much businesses are buying. If it comes in hot, Treasury yields (interest rate on a U.S. government bond) can tick up, and rate-sensitive areas like housing and some tech can feel the pressure.
UPDATE: The delayed November durable-goods report came in strong: orders rose 5.3% from October, beating the 4.5% estimate after a revised 2.1% drop the month before. Even after you strip out transportation items like planes, orders still grew 0.5%, which hints the bounce was not just one big airplane order. The Chicago Fed National Activity Index (CFNAI) improved to -0.04 in November from -0.42 in October, so growth looks closer to its long-run trend (zero is “normal”). This is a net plus for the economy, but it can be a mixed bag for markets because firm data can keep rate-cut hopes in check and keep bond yields from falling fast.
Tomorrow is a busy one too. Consumer confidence and new home sales both tap the same nerve: how people feel about jobs, prices, and borrowing costs. A weak print can spark “slowdown” talk, while a strong one can bring back “rates stay higher” talk. Toss in major earnings before the bell, plus the Fed kicking off its meeting, and you have a day that may feel like a blender set to “pulse.”
REITs
Real estate can feel quiet, but it can move fast when rates twitch. The Real Estate Select Sector SPDR Fund (XLRE) tracks big U.S. Real Estate Investment Trusts (REITs). It fell about 2% over the past year ending Friday. These stocks are part “bricks,” part “bond,” and rates set the volume.
Rates are the main puppet strings. The 10-year Treasury yield ended Friday near 4.24%, and that level can change what investors pay for steady cash. Also, office-tower doom is not the whole sector, since office is only about 1% of XLRE by weight. Most of the fund is warehouses, apartments, stores, and health care sites.
Prologis (PLD):
Prologis owns large warehouses near ports and big cities, which helps fast delivery. Its edge is scale, since it has a wide network and many big tenants. It just reported fourth-quarter and full-year 2025 results, so the next test is 2026 rent growth.
Simon Property Group (SPG):
Simon runs top malls and outlet centers, where rent often tracks shopper sales. It stands out for “A” malls (the best-located malls) and high occupancy. Simon plans to report fourth-quarter 2025 results after the close on Feb. 2.
Vonovia SE (VONOY):
Vonovia is a Germany-based landlord with a huge pool of homes and flats. Its scale helps spread costs and fund upgrades in tight housing markets. Vonovia plans to post full-year 2025 results on March 19.
InvestorsGrow Takeaway:
Watch the 10-year Treasury yield, since it shapes borrowing costs and the “worth” of future rent. Two key numbers are Funds From Operations (FFO) (REIT cash-earnings metric) per share and occupancy. Red flag: watch for big debt due soon that must be rolled at higher rates. Watchlist: If the 10-year yield falls while FFO guidance rises, expect REITs to perk up.
Eaton (ETN)
Eaton (ETN) makes the gear that helps power move safely, like breakers, switches, and control systems. You see its work in data centers, factories, and aircraft, even if you never see the logo. When power demand rises, Eaton tends to get a seat at the table.
Today, the company said it plans to spin off its Vehicle and eMobility businesses into a separate, publicly traded company. Eaton expects the deal to be completed by the end of the first quarter of 2027, and it aims for a tax-free structure. Shares were up about 2.7% in premarket trading.
Eaton wants to put more time and money into its Electrical and Aerospace units, which are tied to grid upgrades and power-hungry data centers. The unit being spun out sells parts for trucks and electric vehicles (EV), like transmissions, clutches, and high-voltage fuses. Mobility sales fell 8% to $639 million in the third quarter of 2025. What to watch next is more detail on the new company’s finances, plus Eaton’s next earnings report on Feb. 3
InvestorsGrow Takeaway:
This is a “simplify the story” move, and markets often like those. Eaton is betting its best growth is in power gear for data centers and the grid, plus aerospace demand. The red flags are the long wait (2027 is far away) and any one-time split costs that nibble at profits. If orders stay strong while the spin plan stays clean, expect sentiment to stay upbeat.
