U.S. equities moved up on Tuesday, with the Dow gaining about 0.4% and the S&P 500 nudging up 0.1%, while the Nasdaq hovered near flat as major tech names slipped. The market seemed to lean on the latest retail sales report, which painted a more muted picture of consumer spending.
December’s retail sales data showed virtually no change from the previous month, falling far short of economists’ expectations. The slowdown in holiday‑season spending dampened confidence, prompting investors to re‑evaluate the Federal Reserve’s policy path.
Although most traders still anticipate the Fed will hold rates steady next month and into April, the percentage of those betting on a cut has grown, with more than three‑quarters now expecting rates to be lower by June.
Market participants are also keeping an eye on Wednesday’s January jobs report, a key indicator of labor‑market strength, and Friday’s Consumer Price Index, which will offer fresh insight into inflation pressures as the Fed balances its dual mandate.
In corporate news, earnings from companies such as Coca‑Cola, CVS Health, and Ford made headlines. Ford’s fourth‑quarter results are set to be released after the bell, with analysts focusing on EV sales and the lingering impact of a major fire at an aluminum plant.
Gold and Bitcoin, both still on investors’ radar after a sharp pullback last week, slipped slightly on Tuesday. Gold’s value dipped a touch after topping $5,000 earlier in the week, while Bitcoin fell below $69,000 before a modest recovery, reflecting a broader risk‑off mood.
Ford’s earnings are expected to capture attention, as the automaker’s stock rose about 7% in pre‑market trading ahead of the announcement, amid heightened interest in its EV strategy and supply‑chain challenges.
Meanwhile, a major media company is intensifying its bid for a larger competitor, offering an all‑cash price and a quarterly “ticking fee” that would be paid if the deal isn’t closed by the end of 2026. The offer includes a substantial termination fee to end an existing partnership with a streaming giant that is currently under investigation by the Department of Justice.
Following its guidance for 2026, Coca‑Cola’s shares fell roughly 2% as investors reacted to the company’s cautious outlook on international sales, despite a surprising uptick in its Coke Zero and water product lines.
