In a challenging trading session, the three major U.S. stock averages experienced their steepest decline since October, raising concerns among investors. As market participants brace for the next session, significant developments are on the horizon, including President Donald Trump’s appearance at the World Economic Forum in Davos on Wednesday. He is scheduled to give a keynote address and participate in an exclusive interview with CNBC’s Joe Kernen that will air during “The Exchange” at 1 p.m. ET. Speculation suggests that Trump may address Greenland, a territory rich in rare earth minerals, a sector that has seen extraordinary growth recently.
This year, several rare earth mining companies have shown remarkable performance: Critical Metals soared by 147%, U.S. Antimony increased by 85%, Energy Fuels climbed 62%, USA Rare Earth rose by 61%, and MP Materials gained 35%. These upward trends have investors eyeing the potential for further gains in 2026.
On the earnings front, Johnson & Johnson is set to report before the market opens. The healthcare giant has seen its stock rise 5% year-to-date and has been trading near all-time high levels. Over the past three months, Johnson & Johnson’s shares have appreciated by 12%, and in the last six months, they surged by 33%. Joseph Wolk, the company’s executive vice president and CFO, will discuss these results on “Squawk on the Street” during the 9 a.m. hour on Wednesday.
Another company to watch is Charles Schwab, which is also slated to announce earnings. The stock stands about 3% off its record high of $104.98 reached on January 16, boasting an impressive 32% increase over the past year and more than 6.5% in the last three months. Rick Wurster, the president and CEO of Charles Schwab, will join the “Money Movers” segment on Wednesday, providing insights into the company’s performance.
In sector performance, consumer discretionary stocks ended the day as the second weakest performers in the S&P 500, following technology stocks. However, JPMorgan retail analyst Matthew Boss expressed optimism about the resilience of the American consumer, noting robust spending trends. In his commentary on “Closing Bell,” Boss pointed out that while higher-income consumers are selective in their purchases, spending among lower-income demographics remains strong. He emphasized that the current market conditions are benefiting what he terms “value retail,” albeit not all retail names will see positive returns.
Among the retail chains that may present investment opportunities moving into 2026 and 2027 are:
- TJX Companies, which is just 2% off its all-time high from January 9 and has increased about 9% in the last three months.
- Ross Stores, reporting a growth of over 5% year-to-date and 20% in the past three months.
- Dollar General, gaining over 10% year-to-date and 38% in the last three months.
- Dollar Tree, which is up 9% year-to-date and 35% over the same period.
- Ollie’s Bargain Outlet, showing a slight uptick of 4% year-to-date, although it has decreased by 5.5% in the last three months.
As the market looks ahead, the interplay of earnings reports, economic discussions from global leaders, and shifting consumer patterns could significantly influence trading strategies in the following days.
