2026-01-24 14:00

About one fifth of S&P 500 set to post quarterly results Microsoft, Apple, Tesla among those due to report Fed expected to hold rates steady on Wednesday as independence questions hover NEW YORK, Jan 23 (Reuters) - Investors who have been consumed by geopolitical turmoil to start the year may switch focus in the coming week to prospects for artificial intelligence-related profits and the path for interest rates, with a huge crop of earnings reports and a Federal Reserve ‌meeting on tap. U.S. stocks hit a rocky patch this week due to fallout from President Donald Trump's aggressive stance to acquire Greenland, which threatened a new trade war with Europe. Sign up here. Markets initially reeled, with stocks, bond prices and the U.S. dollar all swooning, an unusual occurrence. But major equity indexes rebounded later in the week after Trump backed off tariff threats, suggesting a deal was in sight for Greenland. "It's been a little bit of a short but steep roller-coaster ride over the past several days," said Yung-Yu Ma, chief investment strategist at PNC Financial Services Group. "I don't know that it's completely behind us, ‌but at least the acute phase seems to be behind us." INVESTORS SEEK INSIGHT ON AI BENEFITS TO PROFITS The upcoming reporting week could turn attention to the outlook for U.S. corporate profits, with earnings overall expected to rise substantially this year including gains from a wider group of companies. About one-fifth of the S&P 500 is due to report quarterly results, including Apple (AAPL.O) , opens new tab, Microsoft (MSFT.O) , opens new tab, Meta Platforms (META.O) , opens new tab and Tesla (TSLA.O) , opens new tab, four of the "Magnificent 7" megacap companies. Coming off the third straight year of double-digit returns for the S&P 500, ‍the benchmark index is up about 1% to start 2026. The index's valuation is also above 22 times expected earnings for S&P 500 companies, well higher than its long-term average of 15.9, so "the earnings bar had better be met," said Chris Galipeau, senior market strategist at Franklin Templeton. "We can get sidetracked by the economic data, we can get sidetracked by geopolitics like Greenland, but at the end of the day, earnings ⁠are the driver," Galipeau said. With 59 companies having reported results as of Thursday, 81% have beaten analysts’ earnings estimates. S&P 500 earnings are now expected to have climbed 9.1% in ‍the fourth quarter of last year from a year earlier, according to Tajinder Dhillon, head of earnings research at LSEG. In 2026, S&P 500 earnings are expected to climb more than 15%. A critical theme ‌this earnings ‌season is whether companies are starting to reap benefits from AI-related investments. Doubts that massive spending on data centers and other infrastructure would yield returns weighed on tech and other AI-related stocks late in 2025, after that group had been a key driver for the bull market in U.S. stocks that is entering its fourth year. "It's important just to hear from the major companies in the S&P 500 that they are continuing to push these uses and initiatives forward for AI so that people believe that it is not just a story of building and infrastructure," said PNC's ⁠Ma. FED RATE OUTLOOK, INDEPENDENCE IN FOCUS Investors widely ⁠expect the Fed to hold rates steady when it gives its monetary policy decision on Wednesday at the end of its two-day meeting. After the U.S. central bank lowered rates by a quarter percentage point at each of its last three meetings of 2025, Fed Funds futures are pricing in at least one more such cut this year, according to LSEG data. "We expect the Federal Open Market Committee to take an extended pause because the ‍fed funds rate is close to neutral, downside risks to the labor market have begun to ease, and inflation has peaked," Michael Pearce, chief U.S. economist at Oxford Economics, said in a note. The near-term rate outlook could take a back seat to issues around the Fed's political independence. The meeting follows the revelation this month that Fed Chair Jerome Powell faced legal threats from the Trump administration, which Powell called a "pretext" to gain the dramatic rate cuts Trump wants. Meanwhile, Trump is mulling his decision on a nominee to replace Powell, whose term ‍as chair ends in May. A decision could come soon. Investors will remain on guard for geopolitical wildcards or other policy proposals from the administration. "If the Greenland situation, for example ... were to go off the rails, and then we've got the tariff threat and all that sort of thing, that would certainly dent confidence and probably put the tape under pressure," Galipeau said. https://www.reuters.com/business/wall-st-week-ahead-fed-big-earnings-week-loom-markets-global-tensions-muddy-2026-01-23/

2026-01-24 12:48

Largest regional grid sees electricity prices spike MISO imports power from another grid to meet demand amid gas supply constraints Texas grid faces winter storm test, but improvements reduce blackout risk BOSTON, Jan 24 (Reuters) - U.S. electric grid operators on Saturday stepped up precautions to avoid rotating blackouts, as frigid weather hitting half of the country's population stressed their operations. The PJM Interconnection - the largest U.S. regional grid that serves 67 million people in the East and Mid-Atlantic - reported temporary spikes in spot wholesale electricity prices that soared above $3,000 per megawatt hour on Saturday morning from earlier levels of less than $200 per MWh. Sign up here. PJM boosted its forecast for Tuesday, predicting an all-time high for winter electricity demand at 147.2 gigawatts. That would beat the current record of 143.7 GW set in January 2025. Spot wholesale electricity prices across the U.S. were volatile throughout Saturday, surging several times higher in New England and the Midwest, for example, than during normal winter operating conditions. Spot prices on ISO New England, the grid for six states, surged to nearly $600 per MWh, up sharply from Friday when prices were below $100 MWh during parts of the day. Meanwhile, older power plants, typically idled much of the year, came online to take advantage of the elevated prices to serve higher-than-expected demand, said Georg Rute, CEO of grid software company Gridraven, and an expert on how weather affects power line capacity. "A 40-year-old gas turbine switches on because it sees these super-high prices," Rute told Reuters. He added it was a sign of stress in the PJM system and elsewhere. Prices also soared in other regions as stormy weather and temperatures hovering around 0 degrees Fahrenheit (-18 Celsius) pushed up electricity demand and prompted some operators to shut in natural gas production in key basins, while grid companies also faced constraints on gas pipeline supply. Dominion Energy (D.N) , opens new tab, whose Virginia operations include the largest collection of data centers in the world, said if its ice forecast holds, it has the potential to be one of the largest winter events to affect the utility's operations. While regional grid operators juggle restricted fuel supplies, congested transmission lines and wild weather, electric utilities are staging crews to repair expected ice and snow damage on low-voltage distribution lines that bring power to homes and businesses. GRIDS FACE STRAIN Faced with constricted gas supplies, regional U.S. grid operators are asking coal and gas-fired power plants to boost output, according to grid operations reports. The Midcontinent Independent System Operator called on power plants to maximize output and curtailed electricity exports in a territory that stretches across 15 states in the Midwest and South and Manitoba, Canada. Over the past 24 hours, MISO imported up to several thousand megawatts of power from PJM's territory to meet demand, according to MISO's operations reports. PJM faces greater reliability threats in winter because natural gas plants - the backbone of its generation - frequently face fuel supply constraints and mechanical freezing during extreme cold, according to analysts at consulting firm ICF International. Neighboring grid MISO issued an all-hands-on-deck emergency action designed to avoid capacity shortfalls as some power plants are forced offline or reduce their output because of freezing temperatures. This alerted utilities to be prepared to produce as much electricity as possible. MISO spot wholesale electricity prices soared to above $400 per MWh throughout the grid operator's territory as the upper Midwest experienced transmission bottlenecks across high-voltage power lines. Electricity prices in MISO's southern territory, which were less than $50 per MWh earlier on Saturday, rose above $200 per MWh in parts of Louisiana and Mississippi, MISO reported. In New England, fuel oil generation kicked into high gear to help the six-state region's electric grid conserve natural gas, its top fuel source. As evening approached on Saturday, oil-fired generation accounted for 38% of the New England grid's output, compared with a typical level of about 1% or less, ISO New England's operations display showed. Natural gas, usually the grid's main fuel source, accounted for 24% of the grid's generation output. TEXAS GRID TESTED For the Electric Reliability Council of Texas, the winter storm is the biggest test for the state's main grid operator since 2021, when a storm nearly caused a catastrophic regional blackout. More than 200 people died as ERCOT lost about half of its generation capacity amid frigid weather. Since then, stricter state and federal rules have been implemented to require better winter readiness by utilities and grid operators throughout the country. Rute said ERCOT appears to be in good shape as it has abundant fossil-fuel generation, big contributions from wind and solar power, and more battery storage than any other grid. "I think there's very little chance of a (2021) rerun," he said. "But no blackout happens the same way twice." https://www.reuters.com/business/energy/us-electric-grid-shows-escalating-stress-amid-cold-blast-2026-01-24/

2026-01-24 11:29

TRIPOLI, Jan 24 (Reuters) - Libya signed a 25-year oil development agreement on Saturday with France's TotalEnergies and U.S.-based ConocoPhillips, involving more than $20 billion ‌in foreign-financed investment, Prime Minister Abdulhamid al-Dbeibah said. Signed through Waha Oil Company, the deal is aimed at boosting production capacity by up to 850,000 barrels per day (bpd) and is expected to generate net revenues of more than $376 ‌billion, Dbeibah said in a post on X. Sign up here. A Waha source said the company's daily output typically ranges between 340,000 and 400,000 bpd under normal operations. Waha, a subsidiary of Libya's state-run National Oil Corporation, ‍operates five main oil and gas fields as well as several producing subfields, connected by pipeline networks that transport crude to the Sidra oil terminal and gas ⁠to processing facilities. The government also signed a memorandum of understanding with ‍U.S. oil major Chevron and a cooperation agreement with Egypt's oil ministry during the ‌Libya ‌Energy and Economy Summit being held in Tripoli. The agreements reflect "the strengthening of Libya's relations with its largest and most influential international partners in the global energy sector," Dbeibah said. Separately, Masoud Suleman, acting chairman of the ⁠National Oil Corporation (NOC), ⁠said during the summit that the results of Libya's first oil exploration bidding round in more than 17 years would be announced on February 11. Libya is one of Africa's biggest ‍oil producers and a member of the Organization of the Petroleum Exporting Countries (OPEC). Foreign investors have been wary of putting money into Libya, which has been in a state of chaos since the overthrow of ‍Muammar Gaddafi in 2011. Disputes between armed rival factions over oil revenues have often led to oilfield shutdowns. https://www.reuters.com/business/energy/libya-sign-25-year-deal-with-totalenergies-conocophillips-bring-over-20-billion-2026-01-24/

2026-01-24 11:28

Jan 24 (Reuters) - Delta Air Lines (DAL.N) , opens new tab said on Saturday it made additional flight cancellations for Atlanta and along the U.S. East Coast, including at its hubs in Boston and New York, as it continued to adjust schedules due to winter storm Fern. Ice accumulation is expected to affect Atlanta on Sunday, along with significant snowfall in the Northeast beginning Sunday afternoon, the airline said. Sign up here. The storm is disrupting U.S. air travel, prompting airlines to cancel flights, warn of delays, and issue travel waivers as ice, snow, and strong winds sweep across major hubs and regional airports in the South, East, and central parts of the U.S. Delta on Friday urged passengers traveling this weekend to reschedule their flights as a major winter storm threatens to disrupt operations and force widespread cancellations. The airline said customers should expect flight cancellations across the Ohio and Tennessee Valleys, including Nashville and Raleigh–Durham, as the storm threatens to disrupt weekend travel. Delta canceled flights at several airports in five states on Thursday, warning that slow operations could trigger more delays and cancellations, and complicate rebooking during one of the busiest winter travel periods. The National Weather Service warned that a mix of freezing rain, sleet and snow could make travel hazardous and cause power outages and tree damage across the Southeast, with heavier snowfall expected farther north as the storm moves up the country. https://www.reuters.com/world/us/delta-cancels-additional-atlanta-east-coast-flights-winter-storm-threatens-2026-01-24/

2026-01-24 10:21

MUMBAI, Jan 24 (Reuters) - U.S. Treasury Secretary Scott Bessent on Friday signaled the potential removal of additional 25% tariffs on India following a sharp reduction in Indian imports of Russian oil. Trade tensions escalated in August when U.S. President Donald Trump doubled tariffs on Indian goods to 50%, including a 25% levy in response to India's imports of Russian crude. Sign up here. "Indian purchases by their refineries of Russian oil have collapsed. So that is a success. The tariffs are still on, 25% tariffs for Russian oil are still on. I would imagine there is a path to take them off," Bessent said in an interview with Politico at the World Economic Forum. India's Russian oil imports in December dropped to their lowest in two years, lifting OPEC's share of Indian oil imports to an 11-month high, Reuters reported on Friday, citing trade data. Bessent's remarks came amid heightened pressure from Trump, who earlier warned that tariffs could increase further unless India curtails its Russian oil purchases. https://www.reuters.com/world/india/bessent-hints-possible-us-tariff-relief-india-russian-oil-imports-drop-2026-01-24/

2026-01-24 10:08

Heating restored to many buildings but over 3,000 lack heat Energy minister says over 8,000 Kyiv households without power Kyiv rolls out more heated shelters for affected residents Russia's heavy bombardment happens as peace talks continue Jan 24 (Reuters) - Russia launched another vast attack on Ukraine's energy system, rocking Kyiv with explosions overnight and into Saturday morning, leaving 1.2 million properties without power countrywide during sub-zero winter cold. Deputy Prime Minister Oleksiy Kuleba said more than 3,200 buildings in the capital remained without heating in the late evening, down from 6,000 in the morning. Night-time temperatures were hovering around -10 degrees Celsius (14 F). Sign up here. More than 160 emergency crews were operating in the capital to restore heating, he said. Crews were also at work in other affected areas, mainly in western and southern Ukraine. Energy Minister Denys Shmyhal, writing on Telegram after the daily meeting of officials devoted to energy, said more than 800,000 Kyiv households were still without power as were a further 400,000 in Chernihiv region, north of the capital. "As for power, constant enemy attacks unfortunately keep the situation from being stabilised," he wrote. Many residents' apartments were already freezing cold from disruption to Kyiv's centralised heat distribution system following previous attacks. Moscow carried out the strikes as trilateral, U.S.-brokered talks between Russia and Ukraine continued into a second day in the United Arab Emirates, later adjourning with no sign of compromise. More talks were due to take place next weekend. Prime Minister Yulia Svyrydenko said Russia targeted the capital and four regions in the country's north and east. "We are quickly restoring damaged power generation facilities, increasing imports as much as possible, and introducing new alternative capacity," she said. Kyiv Mayor Vitali Klitschko said one person was killed in the capital city and four were injured, three of them requiring hospitalisation, while over 30 people including a child were injured in Ukraine's second city, Kharkiv. Klitschko visited Kyiv's worst-affected district, the northeastern suburb of Troyeshchyna, where 600 buildings were without power, water and heat. He said vulnerable residents were being given hot food and medicine, and that the city was rolling out extra, heated shelters which would be operating around the clock in the area. Kyiv recently loosened its wartime military curfew to allow people in freezing apartments to go to heated tents or public buildings at night. Russia, which has pummelled Ukraine's power grid since November 2022, nine months into its full-scale invasion, is conducting its heaviest bombardment campaign on energy facilities this winter. People across Ukraine have been left with only a few hours of electricity a day, some without heat or water. Ukraine's air force said Russia had unleashed 375 drones and 21 missiles, including two of its rarely deployed Tsirkon ballistic missiles, in its overnight attack. The sky over Kyiv was lit up by regular orange flashes as air defences fired on missiles and drones descending on the capital. Loud booms echoed around the city's tall buildings. Tymur Tkachenko, head of Kyiv's military administration, reported strikes in at least four districts. A medical facility was among the buildings damaged. Before Saturday, Kyiv had already endured two mass overnight attacks since the New Year that have knocked out power and heating to hundreds of residential buildings. Emergency workers were still engaged in restoring services to residents that had been knocked out by those attacks, and Klitschko said many of the buildings that had lost heating on Saturday had only recently had it restored. In Kharkiv, a frequent target 30 km (18 miles) from the Russian border and much closer to eastern battlefronts, Mayor Ihor Terekhov said 25 drones had hit several districts. Writing on Telegram, Terekhov said the drones had struck a dormitory for displaced people and two medical facilities, including a maternity hospital. https://www.reuters.com/world/ukrainian-capital-under-russian-attack-air-defences-operation-2026-01-24/