Good Morning Investors!!! Stocks finished yesterday with a relief bounce as trade and tariff chatter cooled, but interest rates are still the boss in the room. Today’s quick reads on the economy, the Purchasing Managers’ Index (PMI) (business survey pulse check) and consumer sentiment, could move bonds and then stocks before lunch. We also dig into U.S. infrastructure names, where backlogs, steel, and fuel costs can make or break results. Plus, Abbott showed that even “steady” health care can trip when guidance comes in soft.
Key Market DriversTariff U-turn lifts stocks: Stocks climbed Thursday after tariff (a tax on imports) threats tied to Greenland talks eased. The S&P 500 rose 0.55% and the Nasdaq Composite gained 0.91%. Small-company stocks also hit a record close (see chart below). Tariff talk can move markets fast because it can raise prices, squeeze profits, and slow trade. The quick rebound is a reminder that headline risk is real right now, so owning a mix of sectors and asset types can help you sleep when the news cycle gets spicy. 
Russell 2000 – 1yr Chart – Jan 23, 2026
Hot economy, sticky prices: New data showed shoppers kept spending and layoffs stayed low. Gross Domestic Product (GDP – the total size of the economy) growth in the third quarter of 2025 was revised up to a 4.4% annual rate, and jobless claims were 200,000. The core PCE price index (the Fed’s preferred inflation gauge) rose 2.8% from a year earlier (November). That mix makes it easier for the Federal Reserve (Fed – the U.S. central bank) to stay patient at its Jan 27-28 meeting. The 10-year Treasury yield sat near 4.23% early Friday morning. When yields rise, stocks often cool off because bonds pay more. BOJ pause, gold pop: Overnight, the Bank of Japan (BOJ – Japan’s central bank) kept rates on hold, but sounded ready to hike again. The yen whipped around, and Japan’s 2-year bond yield touched 1.25%. Gold hit a record near $4,967 an ounce, and U.S. futures edged lower. Japan has been the world’s “cheap money” shop, so any move toward higher rates can ripple into global bonds and stocks. Gold’s sprint toward $5,000 hints some investors still want a safety blanket when politics gets loud and the U.S. dollar feels shaky. Intel hits a speed bump: Intel (INTC) jolted traders Thursday night with a weak outlook, and the stock fell about 13% after hours. The company said it cannot make enough server chips for artificial intelligence (AI) data centers. It guided first-quarter revenue to $11.7B to $12.7B. This matters because chips are the picks-and-shovels for today’s AI boom, and tech earnings can steer the whole market. A “supply problem” is better than a “demand problem,” but it can still pinch profit in the near term. Next week’s big-tech reports could add fuel to the rally—or throw cold water on it. |
Thoughts from InvestorsGrow:
If you only circle two things today, make it the PMI and the Consumer Sentiment report. The PMI is like a quick “pulse check” for the economy before the week ends. A reading above 50 often means growth, and below 50 often means negative growth. A big surprise can move bonds (and then stocks) fast.
The Michigan sentiment report is about vibes, but vibes can pay the bills. When people feel good, they tend to spend more, and that can help company sales. Traders also watch the inflation expectations inside it, because that can shape what the Federal Reserve might do next.
Earnings add the spice. Traders love the “what’s next?” part as much as the “what just happened?” part. If guidance is strong, the stock can pop even on so-so results, and the reverse is also true.
U.S. Infrastructure
Today’s spotlight is the United States infrastructure crew. It is the stuff we drive on and the pipes we forget about until they leak. It includes roads, bridges, water lines, and the firms that dig, haul, and pave. The iShares U.S. Infrastructure exchange-traded fund (ETF), ticker IFRA, closed Thursday at $56.97, up about 18% from a year ago.
Two big drivers are interest rates and input costs like steel, cement, and fuel. Tariff talk matters here because those inputs can get pricier fast. Higher rates can slow projects that rely on loans, while higher costs can squeeze profits. For investors, watch backlog (future work customers already signed up for) growth and whether firms can raise prices to keep up.
Caterpillar (CAT):
Caterpillar builds the machines used on job sites and in mines. Its edge is a huge dealer and parts network that brings repeat service cash. It reports fourth quarter (Q4) (three-month earnings period) 2025 results on Jan. 29 before the open, and markets will listen for demand clues.
Vulcan Materials (VMC):
Vulcan sells aggregates like crushed stone plus asphalt mix for roads. Location is its moat since rock is heavy and shipping far gets costly. Its Q4 2025 call is Feb. 17, with pricing and volume trends in focus.
CRH (CRH):
CRH is Dublin-based but earns a lot of its money in the U.S. selling building basics like aggregates and asphalt. Scale and steady deal-making help it grow in a business where local plants matter. It plans to report Q4 2025 results on Feb. 18 after the close.
InvestorsGrow Takeaway:
Infrastructure tends to move like wet cement, slow at first, then it sets. If rates jump or costs spike, expect bumps, but an ETF can spread risk across the whole crew.
Abbott Laboratories (ABT)
Abbott Laboratories (ABT) makes health care products you might actually see at home: infant formula, nutrition drinks, blood sugar sensors, and lab tests. It also sells heart devices and other medical gear. Because it has many lines, investors often view it as a steady, slow-and-steady name.
That steady vibe got a shake on Thursday when Abbott shared its fourth quarter results and a cautious outlook for early 2026. Revenue came in light, and leaders said the nutrition unit is still feeling price pressure. The stock dropped about 10% by the close, even though some parts of the business held up.
This is a reminder that even “boring” brands can wobble when costs rise and shoppers trade down. Abbott expects adjusted earnings per share (EPS) (profit per share, with one-time items removed) of $1.12 to $1.18 for the current quarter, below what analysts had penciled in. Next, watch whether nutrition demand improves as the year goes on, and whether testing sales keep fading now that COVID-19 demand is much lower.
InvestorsGrow Takeaway:
Abbott is still a big health care toolbox, but right now one tool is slipping out of your hand. If you like it long term, you are betting that devices and core care keep growing while nutrition steadies and profit margins rebuild. Red flags include more discounting in nutrition, cost spikes that hit profit, and any hit to trust in infant formula.
