A torrent of problems appears to be challenging US equities. Congress faces a January 30 deadline to fund the government or risk another partial government shutdown. Atomic scientists suggest the ‘Doomsday Clock’ is closer to midnight than ever before. The European Union and India reached a landmark trade deal to reduce tariffs and more importantly, trade in local currencies to sidestep the dollar. President Trump’s rhetoric to acquire Greenland has the Prime Ministers of Greenland and Denmark huddling with German Chancellor Fredrich Merz in Berlin, while UK Prime Minister Keir Starmer and Finnish Prime Minister Petteri Orpo are openly courting President Xi Jinping of China. All of this suggests a disturbing shift in geopolitics, so not surprisingly, many emerging market central banks (China, Poland, and Brazil) as well as individuals are buyers of gold sending precious metal prices to record highs. But it was the Trump administration’s proposal to keep the Medicare rates it pays insurers unchanged in 2027 that decisively smacked the health insurance sector this week, and the Dow Jones Industrial Average. Nonetheless, if one looks at the broad environment for equities, it is questionable whether these events present a shift for the financial world or are merely background noise.

In our view, it is merely background noise. In fact, even this week’s FOMC meeting has become less important to equity investors, who not long ago were laser focused on rate cuts to support their positive view of stocks. Today it is widely viewed that there will be no change in policy, and this is not expected to cause any ripples in the markets.

Earnings Are Stellar

What is important to the equity market is earnings and although the fourth quarter earnings season is still young, the season is off to a strong start, apart from a few isolated exceptions in the financial sector due to potential policy changes by the administration. According to LSEG IBES, of the 64 companies in the S&P 500 that released earnings last week, nearly 80% reported above analyst expectations. This was well above the long-term average of 67%. And equities are performing well. Small-cap stocks have outperformed large caps for 15 consecutive sessions, a run not seen in decades. The Russell 2000 index is beating the S&P 500 with a gain of 7.5% year-to-date, versus the S&P 500’s gain of 1.9%. However, even amid the turmoil we just noted, the S&P 500 and the Wilshire 5000 reached record high territory on January 27, 2026.The Russell 2000 index made an all-time high on January 22, 2026, at 2718.77.

None of this is surprising given the strength of the economy. The second estimate for third quarter 2025 GDP was 4.4% (SAAR), up from the initial 4.3% estimate. Part of this improvement came from updated data on trade. The net impact of trade on economic activity was negative 2.4% in the third quarter, down from negative 3.0% in the second quarter. More importantly, this percentage is below the long-term average of negative 3.7%. The improvement in net trade came primarily from a decline in the importation of goods which fell from 12.3% of GDP in the first quarter of 2025 to 10.4% in the third quarter. The imports of goods as a percentage of GDP have averaged 12.4% over the last 25 years. See page 4. In short, the administration’s tariff policy is raising money for the US Treasury and improving GDP. And as we noted last week, it is also improving the all-important US debt to GDP ratio.

This stellar economic activity is also supporting corporate earnings. Four-quarter trailing GDP corporate earnings increased 6.9% in the third quarter, after growing 4.5% in the second quarter. This is solid performance but far from the best performance seen in GDP profits. S&P 500 earnings grew at a healthy 13.0% pace on a cumulative four-quarter basis at the end of the third quarter, and some analysts see the current 14% YOY pace as peak earnings and a sign that earnings growth is about to decelerate. But historically, peak earnings growth has been greater than 25% YOY, as seen in the chart on page 5. Rates of 25% or more were seen in the quarters ending December 1973, September 1979, June 1984, December 1988, December 1993, June 2004, and September 2018. Peak growth rates more than 35% have been seen but were rebounds from recession level earnings. Plus, while the current trailing PE multiple is rather high at 26 times, it too has been much higher at major peaks. 

There were several economic releases in the past week but most of them were for November and not noteworthy. Pending home sales were down 3% YOY for December, a sign that the residential market continues to weaken. For the month of January, the Conference Board’s Consumer Confidence Index fell 9.7 points to a 12-year low of 84.5, but we would caution readers that the Conference Board has a pattern of revising previously released data upward. In sharp contrast, the University of Michigan sentiment for January rose 3.5 points to 56.4, and present conditions jumped 5 points to 55.4. The University of Michigan has a pattern of revising data lower. More importantly, both surveys are politically skewed and neither has been a good guide for economic or equity performance. See page 3.

Dollar Yen

We are not concerned about the current messiness of geopolitics, but we are worried about the weakness in the dollar and the yen and the ramification this can have on security markets. The weakness in the yen is the result of the stimulus proposed by Prime Minister Sanae Takaichi coupled with Japan’s debt to GDP ratio of 230%, the highest in the developed world. This combination makes Japanese sovereign debt a risky investment. Although foreign ownership of Japan’s sovereign debt has been rising in recent years, it is still less than 12%; nevertheless, foreigners account for over 50% of daily trading volume and this adds to volatility. Japan is also the single largest holder of US Treasuries with $1.2 trillion as of November 2025. Japan is followed by the UK with $888.5 billion and China with $682.6 billion of US Treasuries. In comparison, the Federal Reserve currently holds $4.24 trillion US Treasury securities. The immediate risks are twofold. Japan could intervene in currency markets to strengthen the yen which could also mean selling US Treasuries to buy yen. This would raise interest rates and weaken the dollar. A second concern in the yen-dollar carry trade. Estimates for the total size of the yen-dollar carry trade range from $250 billion to over $1 trillion (when leverage is included) and an unwinding of the carry trade could be very disruptive to markets. The yen-carry trade has worked for many years because borrowing in yen (where interest rates are currently low and were negative from January 2016 to March 2024) and investing in higher yielding investments, like US stocks and bonds is a solid strategy — as long as currencies remain stable. But with Japanese interest rates headed higher and US interest rates potentially headed lower, this trade is becoming less attractive, particularly in the current environment of weakening and/or volatile currencies. Keep in mind that a potential unwinding of the carry trade, while unsettling, would not impact corporate earnings growth, which is the foundation of the current bull market. In short, an unwinding of the carry trade would be a buying opportunity, in our view. Technical indicators improved this week. In particular, the NYSE cumulative advance decline line made a new high on January 27, 2026, in line with, and confirming the record highs seen in the S&P 500 and the Wilshire 5000. And while the S&P 500 made a new high, most sectors of the market are outperforming this index as seen on page 11. This is due to the rotation of leadership that has taken place this year. Rotation is a healthy sign in a bull market advance.  

Gail Dudack

Click to Download

This week, as President Trump approached his one-year anniversary in the White House, the Wall Street Journal wrote “economists have learned to stop worrying about Trumponomics” and are now forecasting GDP growth to exceed 2% this year. In our view, even a 2% estimate may be too conservative for 2026; still, it is obvious that the stagflation forecasted for 2025 never came to pass. December’s core CPI decelerated to 2.6% YOY, down from 3.3% YOY in January and GDP was running at a hot 4.3% pace in the third quarter.

President Trump has proven the media wrong about the economy; however, he continues to find new and bigger ways to agitate them. This week, along with threatening to place tariffs on countries that disagree with his view on acquiring Greenland, a 10% cap on credit card interest rates, he signed an executive order that implied defense contractors “are not permitted in any way, shape, or form to pay dividends or buy back stock, until such time as they are able to produce a superior product, on time and on budget.” In short, he wants defense companies with government contracts to invest in their businesses and become more efficient, instead of repurchasing stock or paying their top executives salaries of $5 million or more a year. In line with this, Defense Secretary Pete Hegseth has made overhauling Pentagon acquisition policy a priority and pledged to broaden its range of vendors with more startups and commercial companies. In our opinion, this executive order is Trump being Trump, i.e., a businessman and a disruptor, and like any normal consumer, he wants value when spending tax-payer dollars. The intent may be commendable, but the approach is creating a major backlash among corporate leaders and may generate more harm than good in the longer run.

Nevertheless, we disagree with the following Wall Street Journal statement: “Stock buybacks, like dividends, return capital to investors. They also boost earnings per share and help propel stock prices, which is why many investors prize them and would recoil at the notion of government interference.”

Much like our argument that tariffs are not taxes, we believe stock buybacks are not dividends. Stock buybacks make earnings-per-share look better, but changing the denominator does not mean real earnings power (the numerator) has grown nor does it guarantee higher stock prices. We also disagree that buybacks are “prized” by investors; the real return on capital for equity investors is a combination of rising stock prices and dividend payouts. Stock buybacks do not guarantee higher prices to investors, whereas stock dividends represent real money in the pockets of investors. Moreover, dividends are typically a guaranteed revenue stream to shareholders.

We do agree that government interference is the antithesis of capitalism. However, government interference has been a part of every administration, although the interference is usually done behind closed doors. For example, it was revealed that government agencies controlled social media posts and medical studies regarding COVID-19 and vaccines several years after the fact. Vaccines continue to directly impact public health and wellbeing. Equally important, government-mandated vaccines resulted in extraordinary earnings gains for the pharmaceutical industry; yet the media has never investigated this connection. The current administration on the other hand, is unusually open and transparent, perhaps too much so and the chaos this creates is problematic for those who like order and tranquility.

As we go to print, President Trump is on his way to Davos, Switzerland, to speak at The World Economic Forum (January 19-23, 2026), an annual gathering of global leaders in business, government, and civil society. It comes at a time when Trump has upset the global community with his statement that there is “no going back” on his goal to control Greenland for national and world security. Moreover, the threat to impose 10% tariffs on the eight European countries that oppose his view has galvanized European leaders against President Trump. Ironically, Trump is threatening more tariffs just as the world awaits a US Supreme Court decision on the legality of the administration’s use of an emergency law to enact tariffs. Nonetheless, at a midday White House press conference, the President hinted that there may be a pathway that leads NATO nations to agree with his view. In short, it will be fascinating to watch egos colliding in the Swiss Alps this week.

There was a flurry of economic releases this week and the PCE deflator for October and November and the second estimate for 3Q25 GDP will be released later this week. Last week’s November’s PPI release showed final demand prices rising 2.9%, up slightly from October, but down from September. December industrial production rose 2% YOY, but utility production of 2.3% YOY was key to the strength. December’s existing home sales were surprisingly strong at 4.35 million units (annualized) which was a 1.4% YOY increase. At that pace the months of supply fell to 3.3 from 4.2 months in November. The median single-family home price was $405,400, up 0.4% YOY. However, the January NAHB housing index weakened to 37 from 39 and remains well below the breakeven 50 level. See page 5. The NFIB small business index inched up to 99.5 in January, representing the eighth consecutive month above the long term average of 98. See page 4.

In our opinion, the most important release of the week was the US current account deficit (trade plus investment income) which narrowed to $226.4 billion, or 2.9% of GDP, in the third quarter of 2025. This was $22.8 billion lower than the revised second quarter deficit of $249.2 billion, or 3.3% of GDP. The smaller deficit was the result of a few factors, including a shift from a deficit to a surplus in net income payments, a larger surplus in services, and a smaller deficit in goods. The importance of this is that deficits subtract from GDP. As deficits decline, GDP will strengthen. See page 3.

The current administration, Secretary of the Treasury Scott Bessent in particular, is focused on both US deficits, including the fiscal deficit. At the end of 2025 (December), the 12-month sum of monthly fiscal deficits represented 5.4% of nominal GDP (3Q25), down from 5.7% at the end of the fiscal 2025 year and down from the 6.2% seen at the end of fiscal 2024. This 5.4% should be lower once nominal GDP for the fourth quarter of the year is released. The goal of the administration is to get the fiscal deficit to 3% of GDP or less, and to have economic activity above 3.5%. This combination would reverse the unsustainable trend seen in 2024. In the long run it should also lower long-term interest rates.

There have only been twelve trading days in 2026, but they have been interesting ones. Despite January 20^th’s 871-point decline in the Dow Jones Industrial Average, the index is up 0.9% year-to-date. The Dow Jones Transports are up 2.9%, the DJ Utility index is up 1.5%, the S&P 500 is off fractionally, and the Nasdaq Composite is down 1.2%. However, the Russell 2000 index is up a stellar 6.6% year-to-date and has been a significant outperformer in 2026. This rotation of leadership among sectors and from large-cap to small-cap equities is characteristic of a healthy bull market cycle. And while this week’s decline — sparked by a 19-basis point jump in Japanese government bond yields and anxiety related to Greenland — was the largest since October 9, 2025, it did not generate a 90% down day. Our view has not changed. The 2025 equity market was driven by better-than-expected earnings growth, and we expect the same will be true in 2026. Trailing 12-month earnings growth is currently 14.3% versus the long-term average of 8.1%. See page 6. We remain a buyer of dips.

Gail Dudack

Click to Download

Economic news was surprisingly supportive of a rate cut later this month, but this was not apparent in the news headlines. Regarding inflation, Reuters wrote “US consumer inflation increases steadily, but households paying more for food and rents.” The actual CPI report showed headline inflation was unchanged at 2.7% YOY and core inflation fell from 2.8% to 2.6% YOY in December. (Note: Due to the government shutdown, there was no inflation report for October, and only partial data for November. However, for our charts, we left October data unchanged from September and incorporated BLS data for November and December. The BLS release has a chart showing headline inflation falling from 3% in September to 2.7% in November/December and core CPI falling from 3% in September to 2.6% in November/December.)

It is true that food inflation was 3.1% in December, up from 2.6% in November but this was due to stubborn inflation seen in meats, poultry, fish, and eggs at 3.9%. However, this category is down from 4.7% in November and a recent peak of 7.9% in March 2025. The other culprit in the food category is nonalcoholic beverages and beverage materials which indicated prices rose 5.1% YOY, up from 4.3% YOY in November. Food away from home has always remained high and in December it showed prices up 4.1% YOY versus 3.7% in November. Yet despite the increases in food inflation, core CPI fell because energy price inflation fell from 4.2% YOY in November to 2.3% YOY in December. The Reuters headline regarding rents is true since prices are typically rising except for periods of recession or depression, but it is still misleading since homeowners’ equivalent rent was 3.4% YOY, down fractionally from November and down from 3.8% in September. In short, don’t rely on headlines if you want the real news.

The ISM nonmanufacturing index was 54.4 in December, up from 52.6 and six of the nine components rose during the month. The declines were seen in suppliers’ deliveries, order backlog, and prices paid (a plus!). The employment index was 52.0, up from 48.9, and the sum of employment in both surveys now totals 96.9. This is good news since it carries this index safely into neutral territory and above the danger zone of 92.1 or less. See page 6. This is especially reassuring since the December job report was worrisome.

The employment report indicated a below consensus 50,000 jobs were created in the month of December. However, the underlying data was weaker since previous months were reduced by a net 76,000 jobs. In short, the 3-month average fell to a loss of 22,330 jobs per month. Most concerning is that the year-over-year change in employment shows the growth rate fell to 0.4% YOY, which is well below the long-term average of 1.7% YOY. Note that when the year-over-year change in jobs turns negative it is a near-certain sign of a recession. In contrast, the household survey was more sanguine and showed the unemployment rate fell from 4.5% in November to 4.4% in December. This was due in large part to a decrease in the civilian labor force and a 278,000 decline in the number of people unemployed. The U6 unemployment rate fell from 8.7% to 8.4%. See page 3.

Deceleration in the labor market is obvious in the numbers. Over the last twelve months, the average growth in jobs was 48,670 per month; this fell to 14,500 per month over the last six months. The current 3-month change shows a loss of 22,330 jobs per month. As we noted, December’s household survey was the most positive of the two BLS surveys, but while the household survey tends to be volatile it rarely diverges from the establishment survey for long. See page 4. Keep in mind that the jobs report for January will incorporate several revisions including the annual benchmark revision. The BLS already estimated this benchmark revision will show that the economy generated 911,000 fewer jobs than reported between April 2024 and March 2025. This amounts to roughly 71,000 fewer jobs a month, far fewer than the original estimate of 147,000 jobs created per month. On a happier note, the misery index (the sum of the unemployment rate and the rate of inflation) is 7.1% and well below the 12.5% negative level. 

Under normal circumstances December’s weak employment report coupled with December’s mild inflation report might inspire the Federal Reserve to lower rates at their January 27-28, 2026, meeting. However, the controversy over subpoenas sent to Powell asking for more information regarding the Fed’s $2.5 billion renovation project may result in a harder stance by the FOMC later this month.

Federal Reserve Chair Jerome Powell announced over the weekend that he has been indicted by the Department of Justice; however, President Trump said he was unaware of the situation. US Attorney Jeanine Pirro stated that the word indictment only came from Powell and subpoenas would not have been needed had he responded to requests for information. Nevertheless, President Trump’s comments calling Powell “incompetent or a crook,” only stoked the situation into a global media frenzy.

Equities, particularly financial stocks, fell this week after President Trump said credit card rates should be capped at 10%. We doubt that any president has the power to cap credit card rates; nevertheless, equity prices fell. President Trump is also fomenting uncertainty by urging Iranians to continue to protest and indicating that “help is on the way.” He also announced his intention to impose 25% tariffs on countries doing business with Iran. These events have pushed the capture of Nicolas Maduro, Venezuela, Greenland, and the pending Supreme Court decision on tariffs, to the background. Of these, only the decision on tariffs will have economic ramifications, in our view.

What is most important for investors is fourth quarter earnings season. In 2025, the equity market was supported by a steady string of positive earnings surprises. This will be more difficult to accomplish in 2026, but we believe it is possible. Financials typically start the earnings season and JPMorgan Chase & Co.’s (JPM – $310.90) results were less than stellar and this weighed on the stock market on Tuesday. Ten more financial stocks will be reporting fourth quarter results this week. Good earnings reports are critical.

The LSEG IBES consensus earnings estimate for 2026 fell $0.04 to $313.84 this week. The S&P Dow Jones estimate for 2026 fell $0.42 to $310.43. Our estimate for 2026 is $315, and we believe this could prove to be conservative. Although PE multiples appear rich, it is important to note that the forward earnings yield for the S&P 500 is 4.6% and the dividend yield is 1.2%. This sum of 5.8% compares well to a 10-year Treasury bond yield of 4.2%. Plus, the 12-month sum of S&P 500 operating earnings shows growth of 14.2% YOY, far better than the 75-year average pace of 8.1% YOY. On a technical basis, breadth data has been bullish. The NYSE cumulative advance/decline line made a record high on January 13, 2026. This means that advancing stocks outnumbered declining stocks despite the 398.21-point decline in the Dow Jones Industrial Average on January 13^th. The 10-day average of daily new highs is currently 461 and the 10-day average of daily new lows is 77. Since the new high list is averaging well over 100 per day, this is positive. Some have worried that sentiment has become too bullish; however, the AAII bullish index is at 42.5% and bearishness is at 30%. This is far from the 50/20 split that is negative. We remain a buyer of weakness.   

Gail Dudack

Click to Download

Venezuela

Sometimes presidential actions have no economic significance, but often they do. There were many political stories to discuss this week, but the main one is that of Venezuelan President Nicolas Maduro and his wife Cilia Flores who were seized from their Caracas compound on Saturday and swiftly flown to the US as part of a special forces operation to face charges in a US federal court. Not surprisingly, politicians are looking for ways to divide public opinion and are campaigning on this action. Democrats are calling it an act of war and a US-driven regime change, while Republicans are calling it an enforcement of outstanding warrants for illegal drug, weapons, and narcoterrorism charges. There has not been a regime change in Venezuela. Delcy Rodríguez, Maduro’s vice president, is currently the acting president. Most of Nicolas Maduro’s ministers are still in their posts, and the powerful military remains loyal to her. It is also worth noting that left-of-center Wikipedia describes Maduro’s reign as “characterized by electoral fraud, human rights abuses, corruption, censorship and severe economic hardship. The United Nations (UN) and Human Rights Watch have alleged that under Maduro’s administration thousands of people died in extrajudicial killings and seven million Venezuelans were forced to flee the country due to economic collapse resulting from crippling US sanctions.”

But the seizure of Maduro could have economic as well as political repercussions. Experts are theorizing about Venezuela and Venezuela’s oil, but no one can be certain of what the future will bring. Still, oil and oil equipment stocks responded to the news as seen by year-to-date gains of 2.1% in the Energy Select Sector SPDR (XLE – $45.64) and 8.7% in the iShares DJ US Oil Equipment & Services ETF (IEZ – $22.69). See page 10. The ideal result of Maduro’s capture and imprisonment would be for current leadership in Venezuela to allow for a new election, the US helps rebuild Venezuela’s crippled resource sector, and all Venezuelans reap the benefits of a re-energized Venezuela and its wealth of oil and mineral reserves. This is aspirational but an extremely big leap. At present, one can assume that there should be more infrastructure spending in Venezuela and more oil coming to market in the future. More oil means lower oil prices, which also means lower inflation. This would be a plus for all consumers and investors and it should be good for US oil services and integrated oil companies.

Santa Claus Rally

2025 was a good year for equity investors but many are worried about 2026 for a variety of reasons. Equities did not follow seasonal patterns in the last year, yet some are still worried that there was no Santa Claus rally. The Santa Claus rally is determined by the last five trading days of the old year and first two trading days of the new year. In the S&P 500 index, this 7-day period ended with a loss of 0.11% and it was a cause for concern. The Nasdaq Composite index also lost 0.7%. However, the Russell 2000 index gained 0.3% and the Dow Jones Industrial Average gained 1.1%. In other words, not only was there a Santa Claus rally this year, but it was a demonstration of sector rotation with gains in small cap and non-technology issues. Sector rotation is a sign of a healthy bull market. So, we would ignore the naysayers and believe in Santa Claus.

Equity Ownership

Federal Reserve data regarding total household and nonprofit assets in June of 2025 showed equity ownership at a record 31%. This exceeds the prior June 2021 peak level of 30% and the March 2000 peak of 27%. Economists are worried. And when just measuring financial assets, equities represented a record 31% of household assets, far more than the 27.4% seen in June 2021 and 24.5% in March 2000. Nevertheless, the charts on page 3 explain why equity ownership has been rising. As corporations shifted pensions from defined benefit plans to defined contribution programs, household assets in pension fund reserves declined nearly 10% from a peak of 34.4% in March 2003 down to 24.8% in June 2025. Fed data includes equities owned directly or indirectly (through defined contribution or insurance plans) and therefore equity ownership levels have increased. Assets in noncorporate, or proprietors’ equity have also declined, and as a result, historical comparisons regarding household equity ownership are difficult. If one only looks at household assets in cash, bonds, and equities, the equity percentage in June was 70.5%, just below the 70.7% recorded at the end of 2021 and just above the 69.6% recorded in March 2000. Real estate ownership has also been declining, and young adults have been shut out of the real estate market due to unaffordable prices and high interest rates. As a result, we are seeing more young people investing in equities and Bitcoin. In sum, the level of household equity ownership for this generation is different and not easy to compare historically. In short, we are not worried about current equity ownership levels.

Economies by State

We were intrigued by a recent article on interstate migration. U-Haul Holding Company (UHAL – $53.37), the do-it-yourself moving and storage operator for household and commercial goods reviewed more than 2.5 million one-way transactions across the US and Canada for its 2025 Growth Index. The results showed that Texas tops the ranks of in-migration states, followed by Florida, North Carolina, Tennessee, and South Carolina. The states with the most people leaving are California, Illinois, New Jersey, New York, and Massachusetts. Blue-to-red state migration has become a hotly debated topic particularly now that states are redistricting and population has consequences in the House of Representatives. According to U-Haul, “the migration became more pronounced after the pandemic of 2020, continues to be a discernable trend, and seven of the top ten growth states currently feature Republican governors, and nine of those states went red in the last presidential election.” As a past New Yorker, who now enjoys Florida, the migration is understandable in so many ways.

The December ISM manufacturing index fell from 48.2 to 47.9, its tenth consecutive reading below 50. However, five of the ten components of the index rose for the month, and one — prices paid — was unchanged. Production fell slightly to 51.0, imports fell 4.3 to 44.6, inventories fell 3.7 to 45.2, and customers’ inventories fell to 43.3. But employment, new orders, suppliers’ deliveries, order backlog, and exports all rose. Overall, the survey was better than the headline, but manufacturing remains sluggish. See page 4.

Our recent outlook for 2026 indicated that our S&P 500 earnings estimate of $315 coupled with an unchanged trailing PE of 26 translates into a price target for the S&P of 8190. We continue to emphasize that this has been an earnings-driven rally. The LSEG IBES consensus earnings estimate for 2026 rose $1.51 to $313.88 this week. The 2027 forecast rose $1.46 to $359.43. The S&P Dow Jones 2026 earnings estimate rose $1.88 to $310.85. Both surveys are moving toward our estimate of $315, which may prove to be conservative. See page 5. At present, the forward earnings yield of 4.6% and dividend yield of 1.2% compare well to a 10-year Treasury bond yield of 4.2%. Plus, the 12-month sum of operating earnings shows a gain of 14.2% YOY, far better than the 75-year average of 8.1% YOY. And technical indicators remain positive. Most importantly, the NYSE cumulative advance/decline line made a new high on January 6, 2026, confirming the new highs in the indices. This implies the market advance is broad based and healthy. See pages 6-8.

Gail Dudack

Click to Download