The Morning Bull - US Market Morning Update Wednesday, Jan, 21 2026

US stock futures are pointing higher this morning, with contracts linked to the S&P 500 and Nasdaq 100 up around 0.4%, as investors weigh a jump in government bond yields against a softer US hiring signal. The 10 year US Treasury yield is at 4.29%, the highest since August, which means borrowing costs across the economy are staying relatively expensive for mortgages, car loans and corporate debt. At the same time, a private payrolls report shows hiring slowing to about 8,000 new jobs a week, hinting that the job market is cooling. The key question for investors is whether higher borrowing costs bite harder than a gentler jobs market helps, putting interest rate sensitive areas like banks, real estate and smaller US companies under the spotlight.

With borrowing costs staying high, now is a smart time to focus on dividend stocks with yields > 3% before they get crowded.

Top Movers

• Lumentum Holdings (LITE) jumped 10.05% after highlighting advanced laser products ahead of its SPIE Photonics West showcase.
• Sandisk (SNDK) climbed 9.55% as Citi raised its price target and boosted earnings estimates for the stock.
• AngloGold Ashanti (AU) gained 7.89% following a Citi price target increase on the gold miner.

Is Lumentum Holdings still a smart investment or just hype? Read our most popular narrative and get all the answers you need.

Top Losers

• AeroVironment (AVAV) fell 15.77% after Space Force issued a stop work order on a key contract.
• Roblox (RBLX) declined 9.67% as Deutsche Bank cut its price target despite JPMorgan calling engagement trends encouraging.
• NetApp (NTAP) dropped 9.37% following a downgrade at Morgan Stanley.

Look past the noise - uncover the top narrative that explains what truly matters for NetApp's long-term success.

On The Radar

Big bank earnings and rising US yields are set to shape the tone for equities this week.

• Bank earnings cluster: Truist Financial (TFC), Citizens Financial (CFG) and Travelers (TRV) report today, with a focus on credit quality and deposit trends.
• Blue chip healthcare: Johnson & Johnson (JNJ) posts Q4 results today, providing an update on a core defensive holding.
• Logistics and energy infrastructure: Prologis (PLD) and Kinder Morgan (KMI) release Q4 numbers today, highlighting demand for warehousing and pipelines.
• Semis in focus: Intel (INTC) reports Q4 results on Thursday, with attention on data center developments and capital spending plans.
• Oilfield services: Halliburton (HAL) and SLB (SLB) report earnings today and Friday, offering an update on global drilling and spending appetite.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.