Key Takeaways
- Fed Governor Stephen Miran anticipates aggressive monetary easing, projecting 150 basis points of interest rate cuts in 2026 to bolster the U.S. labor market, citing a lack of strong inflationary pressures.
- PayPal (PYPL) announced a new Chief Executive Officer, Enrique Lores, following a Q4 2025 earnings miss on adjusted earnings per share and revenue, coupled with a cautious outlook for fiscal year 2026.
- HP Inc. (HPQ) has named Bruce Broussard as interim CEO and reaffirmed its financial outlook for both the first quarter and the full fiscal year 2026.
- Kazakhstan significantly increased its oil supplies to Germany in January, delivering 310,000 tons via the Druzhba pipeline, with plans for further increases throughout 2026.
- Precious metals experienced a substantial rally, with gold prices extending gains by 7% and silver by 13% on the day, pushing their values above $4,950/oz and $87/oz, respectively.
Federal Reserve Governor Stephen Miran has signaled a strong inclination towards significant monetary easing, projecting 150 basis points of interest rate cuts throughout 2026. Miran believes that underlying inflation is currently running at approximately 2.3%, which he considers "within noise of our target," suggesting that overall inflation will trend downwards in the medium term. He also stated that better economic growth in the future does not necessitate higher interest rates and that he does not observe strong price pressures in the economy. Miran previously indicated that "well over 100 basis points of cuts are going to be justified this year" and argued there is "no inflation problem" when examining headline figures. In the January 2026 FOMC meeting, Miran dissented, advocating for a 25 basis point rate cut, while the Federal Reserve maintained the federal funds rate at its 3.5%-3.75% target range. Additionally, Miran endorsed Kevin Warsh as a "fantastic choice" to lead the Fed, expecting him to deliver a "knockout job" as central bank chair.
In corporate news, PayPal (PYPL) announced a leadership change, naming Enrique Lores as its new Chief Executive Officer and David W. Dorman as independent board chair. Jamie Miller will serve as interim CEO. The announcement comes as the company reported a disappointing fourth quarter of fiscal year 2025, with adjusted earnings per share of $1.23 against an estimate of $1.28, and net revenue of $8.68 billion compared to an $8.79 billion estimate. The company's outlook for Q1 adjusted EPS projects a mid-single-digit decline, with full-year adjusted EPS expected to see a low-single-digit decline to slightly positive growth. PayPal also anticipates $6 billion in share repurchases for the fiscal year. The board noted that the "pace of change and execution was not in line with board's expectations."
HP Inc. (HPQ) also saw a leadership transition, appointing Bruce Broussard as interim CEO. The company reaffirmed its first-quarter adjusted earnings per share outlook of 73 cents to 81 cents (against an estimate of 77 cents) and its fiscal year 2026 adjusted earnings per share guidance of $2.90 to $3.20 (compared to an estimate of $3.06).
Several other companies reported their latest financial results. TransDigm (TDG) posted strong Q1 results with revenue of $2,285 million against an estimate of $2,258 million, and adjusted EPS of $8.23 exceeding the $8.10 estimate, driven by 7.4% organic growth. Capri Holdings (CPRI) reported Q3 revenue of $1,025 million (vs. est. $1,004 million) and adjusted EPS of $0.81 (vs. est. $0.77). Pentair (PNR) announced Q4 sales of $1,020.5 million (vs. est. $1,009 million) and adjusted EPS of $1.18 (vs. est. $1.16), while providing a full-year adjusted EPS outlook of $5.25-$5.40. Ametek (AME) also beat revenue estimates with Q4 sales of $1,998.448 million against an estimated $1,947 million. Pfizer (PFE) reported Q4 revenue of $17,557 million (vs. est. $16,950 million) and adjusted EPS of $0.66 (vs. est. $0.57), but anticipates significantly lower Lagevrio sales and a $2.5 billion headwind from generic competition in its 2026 guidance. MPLX (MPLX) saw Q4 adjusted EBITDA of $1,804 million against an estimate of $1,787 million, with revenue reaching $3,252 million. Eaton (ETN) reported Q4 adjusted EPS of $3.33, surpassing the $3.29 estimate, on sales of $7,055 million.
In the energy sector, Kazakhstan's KazTransOil supplied 310,000 tons of oil to Germany via the Druzhba pipeline in January. The country aims to increase its oil exports to Germany to 2.5 million tons in 2026, up from 2.1 million tons in 2025. Additionally, oil loadings from Aktau Port to the Baku-Tbilisi-Ceyhan pipeline stood at 106,000 tons in January.
Precious metals saw significant gains, with gold prices increasing by 7% on the day to trade above $4,950/oz, and silver prices surging by 13% to over $87/oz. On the Multi Commodity Exchange of India (MCX), gold futures for April delivery rose 5.5% to approximately ₹1,52,000 per 10 grams, while silver futures for March jumped 10% to around ₹2,60,000 per kg.
Other notable developments include PepsiCo (PEP) cutting prices in response to consumer complaints about high costs. Wells Fargo (WFC) upgraded FedEx (FDX) to Overweight from Equal Weight, raising its target price to $380 from $295. Visa (V) announced plans to connect its Visa Direct service with UnionPay International’s MoneyExpress, expanding cross-border remittance capabilities. Finally, the U.S. announced a $3 billion Boeing (BA) deal with Air Cambodia, involving an order for up to twenty 737 Max narrowbodies, with a listed value of up to $2.4 billion.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.