Stock Indexes Mixed After DOJ Opens Probe Into Fed Chair Powell; Gold, Silver Set New Record Highs

QXO Stock Rises on Down Day on Upsized Equity Investment

3 minutes ago

More companies want in on Brad Jacobs’ plans for QXO.

A week after QXO (QXO) announced that an Apollo Global Management-led group had made a $1.2 billion convertible preferred equity investment to help fund future acquisitions, the Greenwich, Conn.-based roofing and waterproofing firm said it had been upsized to $3 billion.

The company said the $1.8 billion additional capital was led by Temasek—the sovereign wealth fund of Singapore—as well as Apollo, and “further strengthens QXO’s financial flexibility to pursue strategic acquisition opportunities.”

Shares of QXO, which is led by serial entrepreneur Jacobs, rose 3% on a down day for stocks overall, and have added nearly two-thirds of their value over the past year.

Big Bank Stocks Are Tumbling After Trump Said This

33 minutes ago

A number of banking and financial stocks slumped Monday morning after President Donald Trump over the weekend suggested capping credit card interest rates.

Trump posted on social media late Friday that Americans are being “ripped off” by interest rates of 20% to 30%, and said that effective Jan. 20 he would be calling for a one-year cap of 10%. How the cap would be implemented remains unclear.

Capital One Financial (COF) shares plunged over 5% in Monday morning, while shares of Citigroup (C) and American Express (AXP) were each down 3%. JPMorgan Chase (JPM), Bank of America (BAC) and Wells Fargo (WFC) each fell between 1% and 2%. Shares of Synchrony Financial (SYF) declined close to 7%, with Visa (V) and Mastercard (MA) losing about 3%.

Executives from several of those institutions will get a chance to respond to that idea this week as big banks kick off earnings season, starting with JPMorgan on Tuesday.

Financial stocks may also feeling the impact of the Trump administration’s latest pressure on the Federal Reserve, which sets the target federal funds rate that influences rates on a wide range of consumer loans. Late Sunday, Fed Chair Jerome Powell said the central bank received subpoenas on Friday for a grand jury investigation into his testimony to Congress last year about the Fed’s renovation that has been the subject of attacks from Trump. Powell said the investigation is politically motivated and comes after the Fed did not lower rates as quickly as the president wanted.

–Aaron McDade

Abercrombie & Fitch Stock Plummets Following Revised Outlook

1 hr 14 min ago

Abercrombie & Fitch (ANF) didn’t tinker with its fiscal 2025 guidance much, but investors sure aren’t pleased.

Shares of Abercrombie & Fitch sank 19% Monday morning after the New Albany, Ohio-based retailer revised its full-year net sales projection to “growth of at least 6%” from the prior “growth in the range of 6% to 7%.” The company also narrowed its full-year earnings per share forecast to a range of $10.30 to $10.40 from the previous $10.20 to $10.50.

However, Visible Alpha consensus called for 6.49% net sales growth and EPS of $10.37.

Abercrombie & Fitch shares have lost about 37% of their value over the past year.

Trump Unveils New Strategy to Slash Mortgage Rates. What It Could Mean for Homebuyers

1 hr 39 min ago

President Trump has ordered Fannie Mae and Freddie Mac to buy $200 billion in mortgage bonds, a move aimed at lowering rates that have kept many would-be homeowners stuck on the sidelines.

“I am instructing my Representatives to BUY $200 BILLION DOLLARS IN MORTGAGE BONDS. This will drive Mortgage Rates DOWN, monthly payments DOWN, and make the cost of owning a home more affordable,” Trump wrote on his Truth Social network.

Federal Housing Finance Agency Director William Pulte confirmed on social media that Fannie Mae and Freddie Mac will conduct the mortgage bond purchases.

Markets responded quickly. The 30-year mortgage rate dropped on Friday to near 6%, its lowest level since early 2023, according to Mortgage News Daily.

Read the full article here.

–Terry Lane

It’s President Trump’s Second Year. Here’s What That Could Mean for Stocks in 2026

2 hr 18 min ago

Could the second year of President Donald Trump’s second term buck theories suggesting headwinds for stocks? The data points to the likelihood of tough times ahead—but history doesn’t tell the whole story.

The second year of a presidential term tends to be the weakest of the four-year cycle, if the “Presidential Election Cycle Theory” is to be believed. The theory, coined by Stock Trader’s Almanac founder Yale Hirsch, holds that U.S. stocks tend to perform relatively poorly in the first year following a presidential election, with an even weaker second year, before a stronger second half of the term. 

Early reactions to new policies aimed at fulfilling campaign promises, along with political uncertainty heading into midterm elections, have been posited as explanations for trends pointing to weaker performance in the first half of a term. Efforts to shore up the economy and gain influence ahead of the next election are typically seen as helping returns in the second half.

Bank of America analysts warned clients last week that historical returns supporting the theory would suggest market underperformance this year, before likely giving way to a stronger 2027.

Since 1940, the S&P 500 has risen an average of 4.2% in the second years of presidential terms, compared to an average annual gain of about 9% over the full period, the analysts observed. Most of that relative pressure could come heading into midterms, the analysts said, even with the possibility that the fourth quarter of 2026 could bring a Santa Claus rally, lifting markets to close out the year.

Read the full article here.

–Kara Greenberg

Sun Country Airlines Stock Pops After Allegiant Buys Fellow Budget Carrier

3 hr 22 min ago

Investors see sunshine for Sun Country Airlines Holdings (SNCY) stock.

Sun Country shares soared 13% in premarket trading Monday, a day after the airline agreed to combine with fellow ultra-low-cost carrier Allegiant Travel Company (ALGT) to “create a leading leisure-focused U.S. airline.”

Las Vegas-based Allegiant will acquire Minneapolis-based Sun Country for $1.5 billion in cash and stock, including $400 million of net debt. Allegiant stock reversed earlier gains and were down 3% before the bell.

Upon closing, which is expected in the second half of 2026, Allegiant and Sun Country shareholders would own about 67% and 33%, respectively, of the combined company, which would continue under the Allegiant name. Each would operate separately until they obtain a single operating certificate from the Federal Aviation Administration.

Allegiant CEO Gregory Anderson would serve as the combined company’s CEO, while Sun Country CEO Jude Bricker would join the board and serve as an advisor to Anderson. The new company would be headquartered in Las Vegas but would “maintain a significant presence in Minneapolis-St. Paul,” according to the release announcing the deal.

“Allegiant and Sun Country are well positioned to create one of the most adaptable and resilient airline models in the industry, with the ability to respond quickly to changing market conditions, traveler demand, and charter and cargo partner needs,” the release said. “The combination of two financially strong leisure carriers in the U.S. will create benefits for customers, communities, employees, and partners by enhancing stability, expanding opportunities, and enabling continued investment and innovation.”

The deal likely would not face substantial regulatory concern, as the carriers have served different markets. Allegiant flies routes with little competition from small cities, while Sun Country handles cargo flights for Amazon (AMZN), charter routes, and scheduled flights across the U.S. and to international destinations in Mexico, Canada, Central America, and the Caribbean.

Stock Futures Sink, Gold Sets New Record High After DOJ Opens Probe Into Fed Chair Powell

4 hr 18 min ago

Futures contracts associated with the Dow Jones Industrial Average pointed down 0.7%.

S&P 500 futures declined 0.6%.

Nasdaq 100 futures were 0.8% lower.