"Faith is taking the first step even when you don't see the whole staircase." ✍️

- Martin Luther King Jr.

✅ U.S. equity markets finished modestly lower on Friday. Gains in real estate and industrial stocks were offset by weakness in the health care sector.

✅ Trump threatened tariffs up to 25% on imports from eight European allies if Greenland is not sold to the U.S., sparking EU condemnation.

✅ Elon Musk is seeking $134 billion from OpenAI and Microsoft, claiming “wrongful gains” from his early contributions, which the companies reject.

✅ Trump plans to sue JPMorgan over alleged “debanking” after Jan. 6, criticizing CEO Jamie Dimon and alleging political discrimination.

✅ Nvidia suppliers halted H200 chip production after China blocked shipments, threatening planned Chinese orders.

✅ Saudi FDA approved ImmunityBio’s ANKTIVA® for bladder cancer, expanding global access and supporting ongoing clinical trials.

MARKET SNAPSHOT

↘ Dow                            49,359.33                       - 0.17%
↘ Nasdaq                       23,515.39                       - 0.062% 
↘ S&P                              6,940.01                       - 0.064% 

Trump Threatens Tariffs on Eight European Nations Over Greenland

President Donald Trump said Saturday that the United States will impose escalating tariffs on imports from eight European NATO allies unless Greenland is sold to the U.S.

In a post on Truth Social, Trump said tariffs on goods from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland will begin at 10% on Feb. 1 and rise to 25% by June 1 if a deal is not reached. The new duties would be added to existing U.S. tariffs already in place on imports from those countries.

Trump suggested the move was prompted by recent troop deployments to Greenland by several European nations, calling the situation “very dangerous” for global security. He reiterated that U.S. control of Greenland is necessary for national security and hinted the tariff strategy could mirror past efforts to pressure foreign governments through trade measures.

The announcement has heightened tensions with the European Union, where tariffs applied to any member state would extend to the entire 27-nation bloc. The threat also jeopardizes a U.S.–EU trade agreement reached in August. Senior EU officials said approval of the deal is now unlikely under the current circumstances.

EU ambassadors are scheduled to hold an emergency meeting on Sunday to discuss a coordinated response. European leaders broadly condemned the tariff threat, characterizing it as an attack on close allies and a challenge to the trans-Atlantic partnership.

European Commission President Ursula von der Leyen rejected the ultimatum, emphasizing cooperation over confrontation. Denmark’s prime minister said the troop movements were defensive and coordinated transparently with allies, while leaders from France, Sweden, and other countries warned they would not be pressured through economic coercion.

EU foreign policy chief Kaja Kallas cautioned that the dispute risks benefiting geopolitical rivals, urging that any security concerns related to Greenland be addressed within NATO rather than through unilateral trade action.

Musk Seeks Up To $134 Billion From OpenAI and Microsoft in ‘Wrongful Gains’

Elon Musk is seeking up to $134 billion from OpenAI and Microsoft, arguing that he is entitled to “wrongful gains” the companies allegedly earned from his early involvement, according to a court filing submitted Friday.

Musk claims OpenAI generated between $65.5 billion and $109.4 billion in value from his contributions when he helped co-found the organization in 2015, while Microsoft gained between $13.3 billion and $25.1 billion. The filing comes ahead of a jury trial between Musk and the two companies.

“Without Elon Musk, there would be no OpenAI,” said Musk’s lead trial lawyer, Steven Molo, in a statement to Reuters, citing Musk’s seed funding, reputation, and guidance on scaling the business.

OpenAI rejected the claim, calling it an “unserious demand” and part of what it described as a broader harassment campaign by Musk. Microsoft declined to comment outside regular business hours.

Earlier this week, OpenAI characterized Musk’s lawsuit as “baseless,” while a Microsoft attorney said there is no evidence the company aided or abetted any alleged misconduct. Both companies also filed a separate motion Friday challenging Musk’s damages claims.

Musk, who left OpenAI in 2018 and now leads xAI, a competitor to ChatGPT, alleges that OpenAI violated its founding mission by restructuring into a for-profit entity.

A federal judge in Oakland, California, ruled earlier this month that the case will proceed to a jury trial, currently expected to begin in April.

According to the filing, Musk contributed roughly $38 million—about 60% of OpenAI’s initial seed funding—and played a key role in recruiting staff, connecting founders with industry contacts, and lending credibility to the venture. Musk argues that, like early startup investors, he is entitled to gains far exceeding his original investment.

Musk’s damages calculations were prepared by expert witness C. Paul Wazzan, a financial economist. The filing also notes that Musk may seek punitive damages and other penalties, including a possible injunction, should the jury find either company liable.

OpenAI and Microsoft, however, urged the court to limit Wazzan’s testimony, arguing that his analysis is “unverifiable,” “unprecedented,” and could mislead jurors. They also disputed Musk’s damages estimates more broadly, calling the methodology unreliable and implausible.

Trump Blasts Dimon, Threatens Lawsuit Against JPMorgan Over ‘Debanking’

President Donald Trump criticized JPMorgan Chase & Co. and its chief executive, Jamie Dimon, on Saturday, threatening to sue the bank over his claim that he was improperly “debanked” following the Jan. 6, 2021, Capitol riot.

Trump’s remarks came in response to a Wall Street Journal report suggesting he had previously floated Dimon as a potential Federal Reserve chair—a claim Trump dismissed. In a post on social media, Trump said no such offer was ever made and added that he plans to file a lawsuit against JPMorgan within the next two weeks for what he described as the bank’s “incorrect and inappropriate” closure of his accounts.

Trump has previously alleged that JPMorgan discriminated against him by asking him to close accounts he had held for decades, an action he believes was politically motivated in the aftermath of Jan. 6. JPMorgan has said it opposes political or religious discrimination in banking and supports efforts to address concerns over so-called debanking, noting it is subject to ongoing regulatory reviews and legal proceedings related to the issue.

JPMorgan spokesperson Trish Wexler reiterated that the bank does not close accounts based on political or religious beliefs and welcomed recent efforts by the administration to address the matter.

Dimon said earlier this week that he would not consider serving as Federal Reserve chair under any circumstances, though he indicated he would be open to discussions about leading the Treasury Department. In a separate statement, Dimon said no job offers had been made and praised Treasury Secretary Scott Bessent’s performance.

Trump has not yet named a successor to Federal Reserve Chair Jerome Powell, whose term as chair expires in May. He said Friday that he has a candidate in mind but declined to identify the individual.

The dispute comes amid renewed public tension between Trump and Dimon over the president’s criticism of the Federal Reserve, including recent Justice Department subpoenas related to renovations at the Fed’s headquarters. Dimon has warned that undermining the central bank’s independence could lead to higher inflation and interest rates over time.

Nvidia Suppliers Halt H200 Production After China Blocks Chip Shipments

Suppliers of key components for Nvidia’s H200 AI chips have paused production after Chinese customs authorities blocked shipments from entering China.

The H200 chip had recently received U.S. approval for sale in China, prompting Nvidia to ramp up production in anticipation of strong demand.

Chinese customs officials this week instructed logistics firms in Shenzhen not to submit clearance applications for H200 shipments, though it remains unclear whether the move is temporary.

A sustained ban would deal a significant blow to Nvidia, which had expected orders of more than one million units from Chinese customers, with initial deliveries planned as early as March.

Regulatory uncertainty led suppliers to halt output to avoid inventory losses, particularly for components such as printed circuit boards that are custom-designed for the H200 and cannot be repurposed.

The development reflects China’s broader push to prioritize domestically produced chips, as regulators continue to debate whether and how to allow limited access to advanced foreign AI processors.

The Saudi Food and Drug Authority (SFDA) has granted accelerated approval for ANKTIVA® (nogapendekin alfa inbakicept) plus BCG to treat adult patients with BCG-unresponsive non-muscle-invasive bladder cancer (NMIBC) with carcinoma in situ, with or without papillary disease.

This approval adds to existing authorizations in the U.S. and U.K., as well as conditional approval in the European Union, reflecting ImmunityBio’s goal of providing bladder surgery-sparing options globally.

Enrollment in the randomized QUILT-2.005 trial for BCG-naïve NMIBC patients is ahead of schedule, with full enrollment expected by Q2 2026 and potential BLA submission targeted for year-end.

ImmunityBio plans to open a regional office in Saudi Arabia and partner with BioPharma Cigalah to support physicians, expand access across the Middle East and North Africa, and address the region’s growing unmet need for innovative cancer treatments.

About ANKTIVA®: ANKTIVA® is a first-in-class IL-15 agonist that activates NK cells and restores memory CD8+ T cell activity, enhancing immune response against resistant tumor cells and prolonging complete response duration. It is a key component of ImmunityBio’s BioShield platform.

ImmunityBio (IBRX) continued to climb on Friday after surging over 30% on Thursday, following the release of strong guidance for its bladder cancer treatment.

📉 ON THE MOVE AND NOTABLES 📈

✔️ There was a heavy dose of economic data for investors to digest this week, highlighted by the monthly inflation and retail sales data. Both the headline month-over-month (MoM) and year-over-year (YoY) figures were in-line with estimates (+0.3% and +2.7%, respectively), but both the core figures came in 0.1% below expectations (+0.2% and +2.6%, respectively).

✔️ Retail sales for November came in above estimates (0.6% vs. +0.4% expected), as did the ex-autos figure (+0.5% vs. +0.3% expected).

✔️ Bond yields moved higher, with the 10-year U.S. Treasury yield ending the day at 4.23%.

✔️ Overseas, Asian markets closed higher after the announcement of a Taiwan–U.S. trade agreement that would reduce tariffs on Taiwanese imports to 15% from 20%, in exchange for a $250 billion investment in U.S. semiconductor manufacturing capacity.

✔️ European markets declined following President Trump’s proposal to impose new tariffs on countries opposing U.S. control of Greenland.

✔️ The U.S. dollar strengthened against major currencies.

✔️ Crude oil futures fell more than 4% as traders reassessed the likelihood of a U.S. military strike on Iran following comments from President Donald Trump.

✔️ Silver futures rose more than 1% to a record high, while gold futures slipped less than 1% from their own record levels.

✔️ Bitcoin futures declined more than 1% on Thursday, pulling back from a two-month high after the Senate Banking Committee delayed a vote on a key market-structure bill. Bitcoin edged slightly higher early Friday and marked its third straight weekly gain for the first time since July.

✔️ Fourth-quarter earnings season began this week, led by the major U.S. banks. JPMorgan Chase, Bank of America, Wells Fargo, Goldman Sachs, and Morgan Stanley all reported results that exceeded analysts’ expectations.

✔️ Overall, S&P 500 earnings are expected to grow approximately 8.0% year over year in the fourth quarter, with the technology sector leading the way at more than 25% growth.

✔️ Treasury yields rose modestly, with the 10-year yield closing at 4.23%. The benchmark yield has remained largely range-bound between 4.0% and 4.25% in recent months.

✔️ Micron Technology (MU) jumped after a board member disclosed the purchase of almost $8 million worth of company shares.

✔️ PNC Financial (PNC) advanced after reporting earnings that exceeded expectations. The bank said fourth-quarter profit rose 25%, driven by higher interest income and dealmaking activity, and projected 11% revenue growth in 2026, above consensus forecasts.

✔️ Shares of J.B. Hunt (JBHT) fell after the logistics company reported lower quarterly revenue, citing weaker transcontinental load volumes.

✔️ Coupang (CPNG) gained after Deutsche Bank upgraded the stock to Buy, noting that much of the regulatory uncertainty facing the Korean e-commerce retailer appears to be priced in.

💲What to Watch Next Week💲

Economic:

🟢 Monday (Jan. 19): -no reports-

🟢 Tuesday (Jan. 20): -no reports-

🟢 Wednesday (Jan. 21): Building Permits, Construction Spending, Housing Starts, MBA Mortgage Applications Index, Pending Home Sales

🟢 Thursday (Jan. 22): Continuing Claims, EIA Crude Oil Inventories, EIA Natural Gas Inventories, Q3 GDP – Revised (3rd estimate), Initial Claims, PCE Prices, Personal Income, Personal Spending

🟢 Friday (Jan. 23): University of Michigan Consumer Sentiment - Final
 

Earnings:

🟢 Monday (Jan. 19): -no reports-

🟢 Tuesday (Jan. 20): D.R. Horton Inc. (DHI), Fastenal Co. (FAST), Fifth Third Bancorp (FITB), KeyCorp (KEY), Interactive Brokers Group Inc. (IBKR), Netflix Inc. (NFLX), 3M Co. (MMM), United Airlines (UAL), US Bancorp (USB), Zions Bancorporation (ZION)

🟢 Wednesday (Jan. 21): CACI International Inc. (CACI), Charles Schwab Corp. (SCHW), Halliburton Co. (HAL), Johnson & Johnson (JNJ), Kinder Morgan Inc. (KMI), Knight-Swift Transportation Holdings (KNX), Pinnacle Financial Partners Inc. (PNFP), Prologis Inc. (PLD), Rli Corp. (RLI), TE Connectivity PLC (TEL), Travelers Companies Inc. (TRV), Truist Financial Corp. (TFC)

🟢 Thursday (Jan. 22): Abbott Laboratories (ABT), Alcoa Corp. (AA), Capital One Financial Corp. (COF), CSX Corp. (CSX), East West Bancorp (EWBC), Freeport-McMoRan Inc. (FCX), GE Aerospace (GE), Huntington Bancshares (HBAN), Intel Corp. (INTC), Intuitive Surgical Inc. (ISRG), McCormick & Company (MCK), Procter & Gamble Co. (PG)

🟢 Friday (Jan. 23): Booz Allen Hamilton Holding Corp. (BAH), Comerica Inc. (CMA), First Citizens BancShares (FCNCA), SLB NV (SLB), Webster Financial Corp. (WBS)

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