NEW EPISODE ALERT: Given the events with the Fed, we have delayed our episode with David Burrows to discuss what happens when politics collides head-on with monetary policy. On this episode of In the Money with Amber Kanwar, I speak with legendary Fed watcher Ed Yardeni, President of Yardeni Research, to unpack what he calls an unprecedented threat to the independence of the U.S. Federal Reserve — and why the market may be more resilient than the headlines suggest. Tune in on Apple, Spotify or here.
Today is a day for healing. Words were exchanged, feelings were hurt, but today is a new day. I’m talking about bed time with the kids, but this could also be applied to the state of affairs in Washington.
Here are five things to know today:
Pull up: US markets managed to shake off threats to central bank sovereignty and finish in the green yesterday. Early this morning 11 central bankers from around the world, including the Bank of Canada, released a statement saying they “stand in full solidarity” with Fed Chair Jerome Powell. The US administration seems to be distancing themselves from the action as well with the President saying he wasn’t involved and US District Attorney Jeanine Pirro saying they never used the word indictment and all the Fed has to do is answer some questions. This morning, attention turns to inflation data out of the US. Headline inflation held in a 2.7% but core inflation was a tick weaker at 2.6% vs 2.7% expected. Month-over-month core inflation was also softer than expected. Predictably, US futures rallied on hopes this would drive rate cuts. Given there are still distortions in the data from the government shutdown, I’m not sure how much of a real impact the data will have throughout the trading day.
Tougher than a Dimon: Shares of JPMorgan are mildly higher after profit beat expectations. The US bank is kicking of Q4 earning season with a bit of a mixed bag that I imagine would be more severely punished had to stock not weakened yesterday on US President Donald Trump saying he wants a cap on credit card interest. On the positive side, profit beat expectations, their outlook for profit for 2026 was higher than expected, and CEO Jamie Dimon called the US economy resilient noting consumers continue to spend. On the negative side, overall profit was down from a year ago and investment banking fees fell on weaker debt underwriting.
Buckle up: Delta Airlines is falling in the pre-market despite profit beating expectations as its outlook for 2026 fell short. The government shutdown curbed revenue and profit growth in the quarter. On the plus side, international performance improved and corporate sales were up high-single digits. The airline also reached an agreement with Boeing to buy 30 new jets. “Judging from the initial reaction premarket, DAL guide is slightly disappointing at the margin. We don’t see it that way,” wrote Evercore’s Duane Pfennigwerth, “20% earnings growth feels sufficient.”
Deep pockets: L3Harris Technologies is surging 14%. after announcing an investment by the US government. The US Department of Defense will be investing in the defense contractor’s missile unit with a $1 billion convertible preferred security. The Missile Solutions business is going to be spun out and go public, at which point the government’s investment would convert to to shares. L3 says this investment from the government will help it significantly increase capacity to supply rocket motors for US missiles. This is the first time the government has taken an equity stake in a defense contractor, although taking equity positions is becoming common place with the Trump administration making 10 such investments (including Intel, Westinghouse and US Steel).
Eat up: Watch Maple Leaf Foods at the open after boosted its dividend 10.5% and setting its outlook for 2026. The dividend boost looks a bit better than expected. The outlook for sales calls for mid-single digit growth which is right in line with expectations. “Following a year of transformational financial performance, we are increasing our annual dividend by 10%, marking our eleventh consecutive annual increase,” said CEO Curtis Frank in the statement. Shares of Maple Leaf Foods have been under pressure since October after the spin off of its Canadian Packers business (pork producer and distributor) and then fell again in November after disappointing quarterly results. “MFI has passed a key (free cash flow) inflection point, and is now poised to potentially accelerate return of capital to shareholders, and invest to drive growth,” wrote RBC’s Irene Nattel in a note to clients in December.
This episode with David Burrows will now air Thursday!
