PPI Rise and Wells Fargo (WFC) Charge

January 14, 2026 at 21:00 UTC

4 min read

Premarket equities drop after PPI data and Wells Fargo Q4 severance charge news

Key Points

November PPI rose 0.2% month-over-month and 3.0% year-over-year, which pushed premarket equity readings slightly lower and tempered near-term upside pressure on nominal yields.
Wells Fargo (WFC)'s Q4 results, including a $612 million severance charge and updated 2026 NII and expense assumptions, prompted early selling as investors weighed one-time items and capital return pace.
Energy and consumer staples ETFs outperformed while discretionary and tech ETFs underperformed, which weighed on overall risk appetite and added stock-specific volatility.

Global Market Summary

NKY rose 1.48% while 000001.SS slipped 0.31% as Asian markets diverged. In Europe UKX gained 0.46% while FRA40 fell 0.19% and DAX declined 0.53% amid mixed regional sentiment.

Top Movers

XLE (1.98%) and XLP (1.21%) were among the strongest sector ETFs. XLY (-1.77%) and VGT (-1.44%) underperformed and weighed on risk appetite. Notable single-stock moves included CRML (+33.51%) and BTDR (+13.16%) on the winners' list and TCOM (-17.33%) and DAVE (-13.09%) among the largest decliners.

Macro highlights

U.S. Producer Price Index rose 0.2% month-over-month and 3.0% year-over-year in November, a print that pushed premarket equity readings slightly lower and tempered near-term upside pressure on nominal yields. The Federal Reserve's Beige Book showed modest national growth with mixed sector anecdotes, and Governor Miran's speech on supply-side reforms further influenced rate expectations by highlighting structural drivers of inflation.

News that moved markets

Wells Fargo (WFC)'s Q4 results and guidance — including a $612 million severance charge and 2026 NII and expense assumptions — prompted early selling pressure as investors weighed one-time items and the pace of capital return. Reports of stronger November retail sales and a rebound in existing home resales reinforced signs of resilient consumer spending, keeping Fed policy considerations in focus. Columbus McKinnon reiterated the expected closing of its acquisition of Kito Crosby and announced the divestiture of certain product lines, and Alliance Entertainment completed the acquisition of Endstate and launched Endstate Authentic LLC. Announced transactions included Lower's acquisition of Acopia Home Loans and GlobalFoundries' planned purchase of Synopsys' Processor IP Solutions business.

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GB GDP MoM (NOV) forecast -0.1% vs -0.1% prior, Jan 15, 07:00 AM | Gauges monthly growth in output and economic activity.
DE Full Year GDP Growth (2025) forecast 0.2% vs -0.2% prior, Jan 15, 09:00 AM | Indicates annual GDP growth and overall economic output trend.
DE Full Year GDP Growth (2026) forecast 0.2% vs -0.2% prior, Jan 15, 09:00 AM | Indicates annual GDP growth and overall economic output trend.

Key Takeaways

Asian markets diverged as NKY rose while 000001.SS slipped; European indices (UKX, FRA40, DAX) finished mixed amid regional sentiment differences.
The November PPI print and Fed Beige Book reduced near-term nominal yield upside and pushed premarket equities lower; Wells Fargo (WFC)'s severance charge triggered early selling.
Sector breadth was uneven: XLE and XLP led gains while XLY and VGT lagged, and notable single-stock swings (CRML, BTDR, TCOM, DAVE) drove idiosyncratic volatility.