S&P 500 Rises as Trump Withdraws Tariff Threats Against Europe
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 24 2026
0mins
Source: seekingalpha
- Earnings Season Kickoff: The S&P 500 closed higher on Friday, marking the start of a new earnings season, with investor expectations for corporate profits boosting market sentiment.
- Analyst Rating Changes: J.P. Morgan upgraded Chevron (CVX) to Overweight with a $176 price target, citing the company's favorable position following the Hess merger and potential annual savings of $3B-$4B by 2026.
- Netflix Quarterly Report Reaction: Although Netflix's (NFLX) quarterly results were deemed “mixed and underwhelming,” analysts believe its long-term growth potential remains strong, viewing the current stock weakness as a buying opportunity for investors.
- Applied Materials Rating Upgrade: Deutsche Bank upgraded Applied Materials (AMAT) from Neutral to Buy with a $390 price target, reflecting a more favorable semiconductor equipment market environment entering 2026 and 2027, which is expected to drive higher DRAM equipment spending.
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Analyst Views on PG
Wall Street analysts forecast PG stock price to rise
17 Analyst Rating
10 Buy
7 Hold
0 Sell
Moderate Buy
Current: 159.550
Low
150.00
Averages
164.50
High
180.00
Current: 159.550
Low
150.00
Averages
164.50
High
180.00
About PG
The Procter & Gamble Company is focused on providing branded consumer packaged goods to consumers across the world. The Company’s segments include Beauty, Grooming, Health Care, Fabric & Home Care and Baby, Feminine & Family Care. The Company’s products are sold in approximately 180 countries and territories primarily through mass merchandisers, e-commerce, including social commerce channels, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, specialty beauty stores, including airport duty-free stores), high-frequency stores, pharmacies, electronics stores and professional channels. It also sells direct to individual consumers. It has operations in approximately 70 countries. It offers products under brands, such as Head & Shoulders, Herbal Essences, Pantene, Rejoice, Olay, Old Spice, Safeguard, Secret, SK-II, Braun, Gillette, Venus, Crest, Oral-B, Ariel, Downy, Gain, Tide, Always, Always Discreet, Tampax, Bounty and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
FDA Pushes for Prescription Drugs to Become Over-the-Counter
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- Regulatory Streamlining: Legislation passed by Congress in November simplifies the regulatory process for transitioning prescription drugs to OTC status, including full, conditional, and partial switch pathways, which is expected to accelerate drug availability and enhance patient convenience in medication access.
- Increased Transparency: Makary emphasized that OTC sales would bypass insurers and pharmacy benefit managers, potentially lowering drug prices and increasing transparency, with cash prices for OTC medications possibly being lower than patients' copays for prescription drugs, thereby alleviating financial burdens on patients.
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- Analyst Rating Changes: Berenberg set a $156 price target for P&G while maintaining a Hold rating, whereas TD Cowen downgraded its rating from Buy to Hold and raised the price target from $150 to $156, showcasing differing market perspectives on future growth.
- Organic Sales Growth: TD Cowen noted that P&G's organic sales growth may accelerate sluggishly, with optimistic investors believing growth has bottomed out at 0% last year, which could impact the company's long-term investment appeal.
- Market Environment Challenges: UBS cut P&G's price target from $176 to $161 in mid-January while maintaining a Buy rating, emphasizing the company's operation in a tough market environment but suggesting potential improvements in fundamentals ahead.
See More
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- Regulatory Streamlining: Legislation passed by Congress in November simplifies the regulatory process for transitioning prescription drugs to OTC status, including full, conditional, and partial switch pathways, which is expected to accelerate drug availability and enhance patient convenience in medication access.
- Increased Transparency: Makary emphasized that OTC sales would bypass insurers and pharmacy benefit managers, potentially lowering drug prices and increasing transparency, with cash prices for OTC medications possibly being lower than patients' copays for prescription drugs, thereby alleviating financial burdens on patients.
- Industry Pushback: The pharmaceutical industry has raised concerns about this policy, arguing that OTC drugs may not be covered by insurance, leading to higher costs for patients, and that the FDA lacks authority over drug pricing, necessitating thorough consultations with manufacturers before any transitions.
See More
Altria Group: Dividend Growth and Investment Opportunities
- Dividend Yield Advantage: Altria Group currently boasts a 6.3% dividend yield, and over the past five years, shareholders have achieved nearly 18% annualized returns through reinvested dividends, significantly outperforming the S&P 500's 13%, indicating its continued appeal among dividend investors.
- Market Performance Comparison: Since February 2021, Altria's total return has reached 128.6%, far exceeding the S&P 500's 85.8% and outperforming Coca-Cola and Procter & Gamble, showcasing its strong performance in the consumer goods sector despite challenges in industry innovation.
- Dependence on Tobacco Products: While Altria generates around 88% of its revenue from smokeable products, its competitor Philip Morris International has successfully derived 41.5% of its revenue from smoke-free products, highlighting Altria's lag in adapting to market changes, which could impact future growth potential.
- Future Growth Potential: Altria is expected to continue offsetting declining cigarette volumes through price increases, and if it can successfully launch smokeless products, it could significantly enhance its valuation, with a current price-to-earnings ratio of only 12 times, indicating its attractiveness as a long-term investment.
See More
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- Dividend Growth: Altria Group has raised its dividend for 56 consecutive years, achieving Dividend King status with a current forward yield of 6.3%, which not only boosts investor confidence but also provides a stable cash flow for the company.
- Superior Investment Returns: Over the past five years, Altria has generated annualized returns nearing 18%, significantly outperforming the S&P 500's 13%, indicating that despite lagging in industry innovation, Altria can still deliver substantial returns to investors.
- Dependence on Tobacco Products: Although Altria has made slow progress in transitioning to smoke-free products, it still derives around 88% of its revenue from combustible products; however, successful future launches of smoke-free products could significantly enhance the company's valuation and market performance.
- Acquisition Potential: To bolster its smokeless product line, Altria may consider acquiring smaller competitors like Turning Point Brands, which could not only enhance earnings growth but also drive valuation expansion, as Altria currently trades at a forward P/E of just 12 times, well below competitors' 22 times.
See More
Consumer Staples Benefit from Market Rotation in 2026
- Sector Performance: In 2026, the consumer staples sector has surged over 15.5% in the S&P 500, becoming the third-best performing sector, indicating a growing investor preference for defensive stocks amid a market rotation.
- Valuation Surge: Wolfe Research noted that market-weighted valuations for consumer staples have reached their highest levels since the 1990s, reflecting increased investor confidence in the sector despite a lackluster overall market performance.
- Walmart's Market Position: Walmart's stock jumped 20% in 2026, allowing it to join the $1 trillion market cap club, showcasing its adaptability in the AI economy and solidifying its leading position in retail.
- Future Outlook: Analysts predict that as consumer demand rebounds in 2026, the fundamentals for the consumer staples sector are likely to improve, particularly with potential tax relief for lower-income households boosting product demand.
See More
Procter & Gamble Stock Performance Analysis
- Stock Performance: Procter & Gamble (PG) shares have declined by 6% over the past year but have risen by 13% year-to-date, indicating market volatility and reflecting investor caution regarding future performance.
- Analyst Rating Changes: Berenberg set a $156 price target for P&G while maintaining a Hold rating, whereas TD Cowen downgraded its rating from Buy to Hold and raised the price target from $150 to $156, showcasing differing market perspectives on future growth.
- Organic Sales Growth: TD Cowen noted that P&G's organic sales growth may accelerate sluggishly, with optimistic investors believing growth has bottomed out at 0% last year, which could impact the company's long-term investment appeal.
- Market Environment Challenges: UBS cut P&G's price target from $176 to $161 in mid-January while maintaining a Buy rating, emphasizing the company's operation in a tough market environment but suggesting potential improvements in fundamentals ahead.
See More
Market Divergence: Industrials Surge While Tech Stocks Struggle
- AI Fears Hit Financial Stocks: Concerns over a new AI-driven tax planning feature led to significant declines in Wells Fargo and Capital One, with shares dropping over 7.4% and nearly 7% respectively, highlighting investor sensitivity to potential threats in the wealth management sector, although Wells Fargo's rating upgrade on Friday provided some stabilization.
- Strong Performance in Industrials: Stocks like Eaton, Honeywell, and GE have continued their strong performance in 2026, with Eaton's shares rising over 4% last week and up 22% year-to-date, reflecting market optimism about economic recovery and driving what Jim Cramer describes as an
See More
