CNBC Business News Update - Market Close: Stocks Higher, Dow And S&P 500 Each Hit New All Time Highs, Investors Brush Off DOJ Investigation Of Fed Chair 1/12/26

Episode Date: January 12, 2026

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I'm Jessica Eddinger, CNBC. Wall Street opens Tuesday morning after a record-setting day on Wall Street investors brushing off a Department of Justice criminal investigation of the Federal Reserve Chair Jay Powell, believing it will go nowhere. The Dow and the S&P 500 index hit new all-time highs. The Dow was up 86 points after having been down more than 400. Walmart shares led the Dow higher up 3%. The S&P 500 index up 10.5.000. points the NASDAQ was up 62 points. Companies whose shares hit fresh all-time highs include Walmart. Now, Walmart is shifting its listing to the NASDAQ and being added to the NASDAQ 100 and the popular QQQ exchange traded fund. Also Monday, gold and silver popped. Gold hitting another record high. Above 4,600 announced for the first time silver at a record topping $85 an ounce. Republicans and former Fed officials quickly pushing back against what some saw as a politically motivated DOJ criminal investigation of Fed Chair Jay Powell.

The powerful group of former Federal Reserve chairs and Treasury secretaries, including Alan Greenspan, Ben Bernanke, Janet Yellen, and Robert Rubin. They all released a striking joint statement in defense of Federal Reserve independence and in opposition to the Department of Justice's criminal investigation of current share Jay Powell. In it, they write, this is how monetary policy is made in emerging markets with weak institutions, with highly negative consequences for inflation and the functioning of their economies more broadly. It has no place in the United States whose greatest strength is the rule of law, which is at the foundation of our economic success. CNBC's Aiman Javvers at the White House, at least one Republican senator, North Carolina's Tom Tillis, has vowed to block any Trump-Fed appointees, including anyone for the Fed chair job. In a statement, Senator Tillis said,

if there's any remaining doubt whether the Trump administration is actively pushing to end the independence of the Federal Reserve, there should now be none. Here's a take from Skybridge capitals Anthony Scaramucci on CNBC. He's not going to jail Jerome Powell and there's not going to be an aggressive criminal investigation

against the chairman, but this is more messaging from the president. And I think he's one message whether people like to hear that or not. Meantime, the banks reacted to President Trump calling for a 10% cap on credit card interest rates. It was a campaign promise that just disappeared for a while. Shares fell.

American Express was down 4% on Monday. Congress would need to act. Earnings season begins Tuesday morning with quarterly results coming from J.P. Morgan Chase and Delta Airlines. I love January earnings. It's probably my most. favorite earnings season because we get our outlook for the full year. It'll be fun. I'm sitting here with estimates that are just slightly above consensus, mainly due to the investment banking fees

that have been rolling through. I think 2026 will be a year of large cap bank earnings strength broadening out. Morgan Stanley's Betsy Grasick on CNBC. Also on Tuesday's watch list, we get the latest on inflation with the consumer price index. Boeing reports airplane deliveries. Christie's auctions off items from John D. Rockefeller the 3rd and Jimmy Carter. Jessica Eddinger, CNBC. Warren Buffett, America's greatest investor on business, philanthropy, and life. Becky Quick with never-before-seen interviews.

Warren Buffett, a life and legacy, a two-hour event. Tuesday 7 Eastern, CNBC.