Stock Focus Report – Market Analysis for January 13, 2026

The major indexes retreated Tuesday as earnings season kicked off with a whimper and political headwinds rattled key sectors. The Dow led losses down 413 points (-0.83%), while the S&P 500 and Nasdaq slipped 0.25% and 0.33% respectively—a mild pullback that masked some serious sector-specific pain beneath the surface.

JPMorgan Chase (JPM) set a cautious tone for bank earnings, reporting a 7% drop in Q4 profit despite CEO Jamie Dimon insisting the economy remains “still strong and doesn’t seem to be getting worse.” Meanwhile, payment processors faced their worst day in six months as Visa (V) and Mastercard (MA) plunged after President Trump backed proposals requiring cheaper credit-card processing options—a potential threat to their duopoly pricing power.

The December CPI reading came in at 2.7% year-over-year, matching November’s figure and providing “the first full view of inflation trends in months” according to the Labor Department. Treasury yields edged higher across the curve, with the 10-year climbing to 4.17%, suggesting bond markets aren’t convinced the inflation battle is won.

Today’s selloff was driven by a toxic mix of earnings disappointment and regulatory uncertainty. The payment processing space took the biggest hit as Trump’s support for processing fee reform sent shockwaves through what’s been one of the market’s most reliable growth stories. Investors clearly weren’t expecting political interference in the cozy Visa-Mastercard duopoly.

In brighter spots, Boeing (BA) shares hit a two-year high after securing orders for up to 60 additional planes—building momentum after a recent 145-plane order haul. The aerospace giant’s order book is finally recovering from its multi-year quality and safety crisis. Thermo Fisher (TMO) also caught a bid after CEO Marc Casper announced multiple new contracts to help pharmaceutical clients shift production back to the United States, riding the reshoring wave.

Energy markets got interesting as a Canadian oil tycoon offered to help the US restart Venezuela’s oil industry (BNO, DBO, GUSH), while Trump’s promise to block Venezuelan oil to Cuba creates geopolitical crosscurrents. Tech saw mixed action with Intel (INTC) surging $3.23 while software darlings Salesforce (CRM) and Adobe (ADBE) tumbled $18.35 and $17.72 respectively.

Investor psychology today felt like the honeymoon phase is ending. After riding strong momentum into 2026, traders are now confronting the reality that Trump’s second-term policies cut both ways—deregulation for some industries means disruption for others. The payment processor selloff shows that no sector is immune from political risk, even seemingly untouchable fintech infrastructure plays.

The renewed Trump-Powell tension isn’t helping sentiment either. Trump’s latest criticism of the Fed Chair as “incompetent or crooked” raises fresh questions about central bank independence just as markets hoped for policy stability. With inflation still running at 2.7% and the Fed walking a tightrope, the last thing investors wanted was a replay of the 2018-2019 Trump-Powell feud.

Interestingly, Bitcoin jumped 3.5% to $94,415, suggesting risk appetite isn’t completely dead—it’s just rotating. The crypto rally alongside a stronger dollar (DXY up to 99.14) creates an unusual dynamic that hints at investors seeking alternatives to traditional finance amid political and regulatory uncertainty.

Today’s action serves as a useful reminder that valuations matter and political risk is real. With the S&P 500 near 7,000, there’s limited room for error when earnings disappoint or policy curveballs emerge. JPMorgan’s 7% profit decline—despite a “strong” economy according to Dimon—suggests margin pressures are building even for the bluest of blue chips.

The real story developing is the reshaping of American industry. Thermo Fisher winning contracts for domestic pharma production, Canadian energy expertise potentially heading to Venezuela via US coordination, and Trump’s push to restructure payment processing fees all point to a more interventionist approach to economic policy. Whether that’s bullish or bearish depends entirely on which side of the trade you’re on.

As earnings season accelerates, watch whether other financials echo JPMorgan’s cautious tone or if the big bank is an outlier. Also keep an eye on software stocks—the CRM and ADBE selloffs could signal a broader reassessment of premium tech valuations. With inflation stuck at 2.7% and political noise rising, volatility might be the only certainty ahead.