The stock market ended the first full trading week of 2026 with the Dow Jones Industrial Average and S&P 500 at record highs, following the release of the latest jobs report.
Source: Investing.com
Wall Street’s major indexes posted a winning week. The 30-stock Dow Jones rose 2.3%, the benchmark S&P 500 rose 1.6%, while the tech-heavy Nasdaq Composite and the small-cap Russell 2000 jumped 1.9% and 4.6%, respectively.
The week ahead is expected to be eventful as investors continue to assess the outlook for the economy and interest rates.
Most important on the economic calendar will be the U.S. consumer price inflation report for December released on Tuesday, which could trigger further turmoil if it turns out to be higher than expected. The CPI data will be accompanied by the release of the latest producer price figures, which will help complete the inflation picture, as well as the December retail sales report.
Source: Investing.com
Elsewhere, fourth-quarter earnings season is set to kick off, with JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, Goldman Sachs, BlackRock, Delta Air Lines and Taiwan Semiconductor among some of the big names expected to report results.
Additionally, the Supreme Court could issue a Trump ruling on the tariffs next week, after failing to do so on Friday.
Regardless of which direction the market is heading, below I highlight one stock likely to be in demand and one that could see further decline. Remember though that my deadline is just for the coming week, from Monday January 12 to Friday January 16.
Stocks to Buy: Morgan Stanley
Morgan Stanley is well positioned to deliver one of the most impressive earnings performances in the financial sector this quarter, driven by a significant pickup in mergers and acquisitions activity, strong IPO underwriting activity and exceptional performance in its core investment banking businesses.
The company’s fourth-quarter update is expected to be released before the market opens Thursday at 7:30 a.m. ET. Market participants expect a significant fluctuation in MS shares after the release, with…
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