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Investing.com -- Wall Street slid on Friday, as risk-off sentiment gripped market participants. A spectacular unwinding of the precious metals trade, along with hotter-than-expected producer inflation data, clouded the mood. The big news of the day was President Donald Trump’s nomination of former Federal Reserve governor Kevin Warsh as the new central bank chair. 

At 14:54 ET (19:54 GMT), the benchmark S&P 500 index dropped 0.4% to 6,940.40 points, the tech-heavy NASDAQ Composite slipped 0.8% to 23,501.90 points, and the blue-chip Dow Jones Industrial Average fell 0.4% to 48,885.96 points.

After a massive runup, precious metals cratered as investors locked in their massive gains. Gold prices were headed for their worst day in decades, while silver was headed for its worst day ever.  

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Warsh nominated for Fed chair role

"(Warsh) will go down as one of the GREAT Fed Chairmen, maybe the best," Trump said on his Truth Social service in announcing his pick. 

Warsh had been considered one of the frontrunners for the job. His nomination comes at a time when Trump is at odds with current Fed Chair Jerome Powell over the state of interest rates.

Trump has long ridiculed Powell for not lowering rates and has threatened to fire him. His administration has opened an investigation into the central bank chief, an action that Powell in an extraordinary move said was because of the Fed not taking rate decisions based on the president’s preference. 

"Market moves are relatively muted considering the magnitude of the change. That’s largely because Warsh was both an unsurprising pick and someone who is already a known figure in Fed circles," Steve Sosnick, chief strategist at Interactive Brokers, told Investing.com.

Warsh served as a Fed Governor from 2006 to 2011. He lost out to Powell for the Fed chair role in 2017. Recently, Warsh has largely aligned himself with Trump’s calls for lower rates in the past year, but was a long-time critic of the ultra-loose monetary policy pursued by the Fed since the financial crisis, including the central bank’s expanded balance sheet.

"Stocks may be a bit disappointed in that he is not particularly dovish – odd considering that the president seemed to really want someone who would share his desire for lower rates," Sosnick added. 

Warsh’s nomination will likely ease concerns about the independence of the Fed in light of his history and past hawkishness.  

Elsewhere, Trump publicly endorsed a bipartisan spending deal negotiated by Senate Republicans and Democrats that would avert a looming government shutdown, posting support on Truth Social and urging cooperation.

The compromise would fund most federal agencies while leaving contentious immigration issues for further negotiation.

Reports said Democrat and Republican leaders had also agreed to the deal, although it remained unclear when Congress will vote on the matter. Lawmakers have until midnight, Friday, to release more spending for the federal government. 

Hot December producer inflation

Traders also received some economic data before the opening bell that further reinforced the Fed’s decision earlier this week to hold interest rates steady.

The core December producer price index (PPI) came in 0.7% higher on a M/M basis, and 3.3% higher on a Y/Y basis. Both figures were well above the consensus estimates. 

The delayed PPI data suggested that inflation was still very much a sticky problem. 

"PPI data was hot. The three month and six month moving averages hottest since 2022," Diane Swonk, chief economist at KPMG U.S., said. 

"The components that feed into the Federal Reserve’s target measure of inflation, the PCE index were not as bad but underscore why the Fed needs to pause and see what shows up. It is the reason that Chair Powell was cautious on not declaring victory over inflation yet," she added.  

Apple’s iPhone sales surge

In the corporate sector, investors received more earnings from the likes of Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX), American Express (NYSE:AXP), and Verizon (NYSE:VZ).

After the close Thursday, Apple (NASDAQ:AAPL) comfortably beat profit and revenue expectations for the holiday quarter, its fiscal first quarter, enjoying its best quarterly iPhone sales growth performance in over four years.

iPhone sales jumped 23.3% year-on-year to $85.27 billion, marking the biggest increase since the fourth quarter of 2021.

The tech giant also forecast higher-than-expected revenue growth of up to 16% for the March quarter, powered by strong demand for its iPhones and a sharp rebound in China and accelerating demand in India.

Still, Apple’s shares slipped over 1% lower as sales in other parts of the company were less positive.

Verizon (NYSE:VZ) stock jumped after the telecoms giant reported fourth-quarter earnings and revenue that exceeded expectations, while providing an upbeat outlook for 2026 that signals the beginning of a strategic turnaround. 

Chevron (NYSE:CVX) stock rose after its oil major’s fourth-quarter profits fell but came in ahead of estimates as it focused on cutting costs and making its operations more efficient to contend with lower crude prices throughout 2025.

In other moves, SanDisk (NASDAQ:SNDK) shares surged after the storage-chip maker delivered a significant profit beat and raised guidance, as demand for data-center and AI-related memory products outpaced forecasts.

Gold, silver bloodbath

Gold prices crashed, as Warsh’s nomination quelled central bank independence concerns. Those worries had added to gold’s lure as a safe haven, contributing to the yellow metal’s recent massive runup.

After nearing $5,600/oz early on Wednesday, profit-buyers finally stepped in to lock some profits, halting Spot gold’s eight-day win streak.  

Spot gold was last down 8% to $4,942.63/oz, while Gold Futures for April fell 7.3% to $4,966.71/oz.  

Other precious metals also slumped on Friday after logging wild swings this week. Spot silver slid a whopping 25.5% to $85.96/oz, tumbling from a Thursday record high, while spot platinum slid 17.6% to $2,159.85/oz. 

Oil prices seesawed after a three-day rally, though they were on track for hefty weekly gains as traders focused on potential U.S. military action against Iran. 

Brent Oil Futures were last up 0.2% to $69.73 a barrel, and Crude Oil WTI Futures were up 0.4% to $65.67 a barrel.

Both benchmarks were set to gain over 7% this week.

The Organization of Petroleum Exporting Countries and allies, known as OPEC+, is set to meet on Sunday, with recent reports indicating that the cartel is likely to keep its output unchanged.

Ambar Warrick, Ayushman Ojha, and Peter Nurse contributed to this report

Investing.com -- Fitch Ratings has downgraded BlackRock TCP Capital Corp.’s long-term issuer default rating and debt ratings to ’BB’ from ’BB+’ and placed them on Rating Watch Negative.

The rating action reflects an anticipated 19% decrease in the company’s net asset value (NAV), which will significantly reduce its asset coverage cushion, according to Fitch’s announcement on Friday.

The firm’s leverage is expected to increase to 1.74x at year-end 2025, with net regulatory leverage rising to 1.45x, exceeding its internal target range of 0.9x-1.20x. Fitch noted that it will likely take multiple quarters for the company to return to its target range.

Asset quality continues to deteriorate, with non-accrual investments expected to reach 4.0% of the debt portfolio at fair value and 9.6% at cost by year-end 2025. Net realized losses were 12.1% of the average portfolio at fair value for the first nine months of 2025, significantly above the business development company (BDC) peer average.

Dividend coverage is expected to face pressure in 2026 as the company deals with tighter spreads, potential rate cuts, and the expiration of a partial base management fee waiver after the fourth quarter of 2025. Management expects net investment income to be between $0.24 and $0.26 in the fourth quarter of 2025, compared to its quarterly dividend of $0.25.

The company faces $325 million of unsecured notes maturing in February 2026, which it plans to refinance using revolving facilities. This move is expected to weaken its liquidity position and impact earnings capacity.

Fitch indicated that failure to reduce leverage, enhance asset coverage, or improve dividend coverage could result in further negative rating actions. The rating agency’s sector outlook for BDCs in 2026 is deteriorating due to elevated interest rates and challenging macroeconomic conditions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- S&P Global Ratings has downgraded Clearwater Paper Corp. to ’B+’ from ’BB-’ due to weaker-than-expected performance, with a negative outlook.

The rating agency expects Clearwater’s S&P Global Ratings-adjusted leverage to exceed 4x for the next 12 months, primarily due to weak earnings. Increasing excess solid bleached sulfate (SBS) paperboard capacity in the U.S. market is likely to put pressure on industry pricing as market participants secure volume in 2026.

S&P projects Clearwater will generate adjusted EBITDA of about $87 million. With approximately $375 million of adjusted debt outstanding, the company’s adjusted debt to EBITDA ratio will likely fall in the 4x-5x range by the end of 2026. Any material unplanned downtime could further reduce adjusted EBITDA.

Cash flow deficits represent a substantial risk across the forecast horizon. Clearwater’s high capital expenditure needs will continue to strain cash flow as earnings remain weak. The company’s asset-based lending revolving facility becomes current in November 2026, while $275 million in unsecured notes mature in August 2028.

S&P believes Clearwater has the capacity to temporarily reduce growth capital expenditures to preserve cash. The rating agency expects the company to cut capex to about $70 million in 2026, down from roughly $100 million per year in 2024 and 2025. Working capital management is anticipated to provide cash flow support in 2026 as the company aligns inventory with SBS demand.

S&P has revised projections downward, reflecting capacity oversupply. The agency expects Clearwater to operate its facilities at about 85% capacity in 2026, below the 90%-95% considered normal demand. Additional industry capacity announced in 2025 is expected to be fully operational in 2026, likely increasing downward pressure on SBS pricing if industry demand lags supply.

While increasing demand for sustainable packaging supports favorable medium to longer-term industry fundamentals, S&P believes near-term industry demand will lag available supply over the next 12 months. This is expected to keep Clearwater’s utilization rate low, further pressuring margins and limiting its ability to increase prices.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- The dollar store sector has seen remarkable shifts in 2026, with several key players delivering exceptional returns amid changing consumer spending patterns. According to WarrenAI’s comprehensive analysis using Investing Pro metrics, certain stocks stand out for their combination of value, growth potential, and financial strength.

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Dollar General has emerged as the clear leader in the dollar store space, with its impressive turnaround story capturing investor attention. Five Below continues its growth trajectory with strong momentum, while Canadian retailer Dollarama demonstrates superior profitability despite valuation concerns. Dollar Tree rounds out the top performers but faces mixed signals ahead.

Here’s a closer look at the top dollar store stocks of 2026:

1. Dollar General (NYSE:DG): The Comeback King

Dollar General has delivered an extraordinary 100.8% return over the past year, establishing itself as the sector’s standout performer. The company offers a healthy 3.4% dividend yield alongside 23.8% analyst target upside. With a forward P/E of 21.8x and a FAIR Pro Score of 2.44, DG shows balanced fundamentals. Technical indicators are particularly encouraging, with strong buy signals across weekly and monthly timeframes. The company’s expanding delivery capabilities and aggressive store remodeling initiatives have successfully driven market share gains, while its business model continues to resonate with value-conscious consumers.

In recent developments, JPMorgan upgraded Dollar General to Overweight, citing its growth initiatives. The company also expanded its same-day delivery service to more than 17,000 stores nationwide.

2. Five Below (NASDAQ:FIVE): Growth Meets Momentum

Five Below has rewarded investors with a 96.0% one-year return, powered by exceptional growth prospects. The company boasts the sector’s highest projected EPS growth at 38.7% for 2026 and substantial analyst target upside of 30.6%. Its GOOD Pro Score of 2.71 reflects solid financial health, though the 29.5x forward P/E indicates investors are paying a premium for this growth story. Five Below’s success stems from its agile merchandising approach, focus on trending products, and ambitious store expansion strategy. Technical indicators remain bullish across all major timeframes, supporting continued momentum.

Five Below reported a strong holiday performance, featuring a 14.5% comparable sales increase. Following the results, several firms, including UBS and Truist Securities, raised their price targets for the company.

3. Dollarama (TSX:DOL): The Canadian Profit Machine

Dollarama stands out for its exceptional profitability metrics, including a 26.5% EBITDA margin and remarkable 148.9% ROE. The Canadian retailer has delivered a 33.1% one-year return and recently exceeded earnings expectations. However, with a -16.9% fair value upside and a 39.0x forward P/E, much of Dollarama’s quality appears priced into the stock. Nevertheless, analysts maintain optimism with a C$211.38 mean price target, representing 8.3% upside potential. The company’s GOOD financial score continues to attract quality-focused investors despite the premium valuation.

Dollarama surpassed third-quarter earnings and revenue expectations. Additionally, Moody’s Ratings changed the company’s outlook to positive from stable, citing its strengthening business profile and track record of growth.

4. Dollar Tree (NASDAQ:DLTR): Value Play or Value Trap?

Dollar Tree has posted a solid 57.5% one-year return but now faces conflicting signals. The stock offers modest fair value upside of 4.1% and reasonable projected EPS growth of 23.6% for 2026. With a 9.1% analyst target upside and a relatively attractive 19.6x forward P/E, DLTR appears reasonably valued. However, technical indicators have turned negative, with strong sell signals on most timeframes. The company’s FAIR Pro Score of 2.17 reflects adequate but unexceptional financial health. Key challenges include executing its digital strategy and maintaining brand identity amid ongoing pricing adjustments.

Dollar Tree appointed Daniel Delrosario as its new Senior Vice President of Investor Relations and Treasurer. The company also received a price target increase from Truist Securities, which maintained a Buy rating on the stock.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.