Equities were an afterthought on Friday, as plunging precious metals prices took center stage.  The overarching message was that the days of “free money” are over with Kevin Warsh at the helm of the Federal Reserve.  It explains why investors were flabbergasted by Consumer Staples (XLP) and ditched Materials (XLB), and to a degree, also ditched Technology (XLK).

Earnings Back in Focus

A ton of earnings this week, but not sure which name(s) could have the longest coattails. It still takes a lot more than simply beating to move the needle higher, as Disney (DIS) is spinning its wheels.

Warsh Effect

Talk about an introduction.  Kevin Warsh, as the new Fed Chair, rocked the market and dismantled the so-called debasement trade. To be sure, a lot of the action in silver and gold was a relief valve, allowing those with monster profits a reason to ring the register. Gold received another target above $6,000 this morning.  These trades and wild gyrations are not over.

The Canary Didn’t Squawk

While there continues to be handwringing over the level of the ten-year bond yield, it must be acknowledged that they have been steady as volatility wanes.  When precious metals were diving on Friday, the bond market was as cool as the other side of the pillow.

Turning the Page

A new month always means new hope (unless it's September or October). That’s the case this morning, especially after the S&P 500 eked out a gain for January.

Looking for Leadership

Small caps fared best in January, but toward the end of the month, anxious investors flocked back to large-cap names. We are waiting for decisions from the Supreme Court, how Iran plays out, and other peripheral factors that have helped stall the market.

Today’s Session

Major indices are mostly looking to open slightly lower.

ISM Manufacturing PMI will be out later this morning.

Comments

Metals have been as Crazy at Crypto lately but I wonder if all the uncertainty has anything to do with the pending SCOTUS ruling on Tariffs. I’m hoping that SCOTUS sees the wisdom behind using tariffs as a negotiating tool in foreign affairs and is more than lenient in their decision. A little wisdom will go a long way here! Terry Lavis on 2/2/2026 10:19:36 AM

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