Wall Street Breakfast Rates rise on sticky inflation
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Jan 22, 2026 Rates are climbing as core PCE holds steady at 2.8%, indicating persistent inflation. Analysts voice concerns over GE Aerospace's slower margin expansion despite solid earnings. Updates on Q3 GDP reveal a revision to 4.4%, while jobless claims see notable movements. Abbott Labs faces a revenue miss and a disappointing outlook for Q1. Meanwhile, EU regulators gear up for parallel reviews of competitive Warner bids, with J.P. Morgan and Allen & Company expecting to profit regardless of the outcome.
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Inflation Remains Stubborn
- Core PCE held at 2.8% year-over-year, signaling persistent inflation pressures.
- Resilient consumer spending and wage gains likely keep policy restrictive for longer.
Growth And Labor Paint A Solid Picture
- Q3 GDP was revised up to a 4.4% annualized pace driven by exports and investment.
- Labor data showed weekly claims near multi-decade lows, supporting the growth picture.
GE Aerospace Growth Could Slow
- GE Aerospace beat Q4 and 2026 guidance but analysts warn margin expansion may slow in 2026.
- Headwinds include equipment growth outpacing services and spare engine normalization risks.