Opening Comment — Friday, January 23, 2026
DJIA: 49,384.01, up 306.78
S&P 500: 6,913.35, up 37.73
NASDAQ: 23,436.02, up 211.20
Stocks lower ahead of PMI data
Stock futures are lower Friday morning ahead of today’s release of January purchasing managers’ indexes (PMIs) from S&P Global and finalized consumer sentiment data from the University of Michigan. As of 7:15 AM ET, the Dow is decreasing 0.2%, while the S&P 500 is down 0.1%. The Nasdaq 100 is falling 0.2% relative to fair value on the GLOBEX.
U.S. equities were higher on Thursday as the Personal Consumption Expenditures Deflator, the Federal Reserve (Fed’s) preferred gauge of inflation, rose 0.2% month-over-month (MOM) and 2.8% year-over-year (YOY) in November for both the headline and core measures. November’s personal income increased 0.3% MOM, while personal spending rose 0.5% MOM. Meanwhile, the third reading of third-quarter gross domestic product was revised higher to an annualized 4.4% quarter-over-quarter. Initial jobless claims ticked up, though continuing claims eased. The Dow was up 0.6%, while the tech-heavy Nasdaq Composite rose 0.9%. The S&P 500 increased 0.6% with seven of 11 sectors finishing in positive territory. The Communication Services sector was the top performer, rising 1.6%, while the Real Estate sector was the bottom performer, falling 1.1%.
Technical Analysis
As of midday Thursday, the S&P 500 Index is still in an uptrend, with support at the 50-day and 200-day moving averages (6837 and 6378, respectively) and possible resistance at 7000.
On the data front, the preliminary reading of S&P Global’s composite PMI for January is expected to come in at 53.0 versus the prior month’s 52.7, with the manufacturing and services PMIs forecasted at 52.0 and 52.9, respectively, compared to the prior month’s 51.8 and 52.5, respectively. The Leading Index for November is forecasted to show a decline of 0.2%. The finalized January reading of consumer sentiment from the University of Michigan is expected to come in at 54.0, while one-year and 5-10-year inflation expectations are projected to come in at 4.2% and 3.4%, all unchanged from the initial readings. The Kansas City Fed will release their Services Survey for January, with the composite index expected to come in at 3.0, similar to the prior month’s reading.
Across the pond, European stocks are mixed in mid-day trading as the eurozone’s preliminary January data showed the manufacturing PMI rising more than expected to 49.4, while the services PMI unexpectedly declined to 51.9. Meanwhile, the U.K.’s preliminary manufacturing PMI increased to 51.6 in January, and the services PMI rose more than anticipated to 54.3. The country’s retail sales rose 0.4% MOM and 2.5% YOY, both exceeding projections. France’s manufacturing confidence unexpectedly rose in January.
Overnight in Asia, stocks were mostly higher as the Bank of Japan kept its key interest rate unchanged at 0.75%. Japan’s national Consumer Price Index decelerated more than expected in December to 2.1% YOY on a headline basis, while the core reading eased less than expected to 2.9% YOY. Japan’s preliminary manufacturing and services PMIs for January rose to 51.5 and 53.4, respectively, while Australia’s PMIs rose to 52.4 and 56.0, respectively. South Korea’s consumer confidence increased in January.
In FOREX trading, the U.S. dollar is little changed ahead of today’s U.S. PMI data.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 1.7% higher at $60.35/barrel despite an unexpected increase in crude oil inventories.
In the metals complex, gold is 0.2% lower at $4,924.96/ounce.