The Factor Report

Market Wrap

For the week ended January 9th, 2026, stocks were higher everywhere. Bonds were higher for the week as the iShares Core US Aggregate Bond ETF (AGG) rose 0.31% as yields fell; the 10-year US treasury yield dropped to 4.17%, according to Yahoo Finance. Asset price drivers of the week:

• Things started off on a positive note Monday when indices rose after the US capture of Venezuelan president Maduro. Energy and Defense stocks led the way.
• The rally continued on Tuesday after a report showed that the US services sector expanded again in December - the number was lower than expected, though, which was good for the Federal Reserve outlook.
• Wednesday brought some mixed data as private payrolls grew less than forecasted, but job openings were also less than expected. Factory orders also fell and so did stock indices.
• On Thursday, initial jobless claims came in lower than estimates. The US trade deficit was about half what it was expected to be and consumer credit plummeted. Stocks ended about flat for the day.
• Friday was the day everyone was waiting for - the first on-time monthly jobs report since September. The US added 50,000 new jobs, below the 73,000 forecasted. Wage growth was right on forecasts at +0.3% and unemployment actually ticked lower to 4.4%. This was what is referred to as a Goldilocks report and stocks rallied everywhere and bets for a Federal Reserve rate cut later this month increased.
• Next week will be a busy one as we will get commentary from a number of Federal Reserve officials, two key inflation readings (Tuesday and Wednesday), and retail sales data.

Performance Summary

As shown in the chart, there was no real winner geographically. Within the US, it was the more traditional stocks of the Dow Jones Industrial Average that led the way, thanks to the rally in defense stocks. However, the Tech-heavy Nasdaq also beat the S&P 500. From a factor perspective, Momentum, Value, and Quality outperformed the global All Country World Index (ACWI).

In The News

A report addressing the cash shortage for retirees.

https://www.thinkadvisor.com/2026/01/08/nearly-half-of-retirees-are-short-on-emergency-cash-study/?kw=Nearly%20Half%20of%20Retirees%20Are%20Short%20on%20Emergency%20Cash%3A%20Study&utm_source=email&utm_medium=enl&utm_campaign=earlywire&utm_content=20260109&utm_term=tadv&oly_enc_id=6911H2583589A7Z&user_id=3d158419d93f4751d4b3b79dd78d9abf446b89b61e92e7567cb4126b86cb53c5

A new bill to boost Social Security benefits.

https://www.thinkadvisor.com/2026/01/06/new-bill-boosts-social-security-benefits-150-per-month/?kw=New%20Bill%20Would%20Boost%20Social%20Security%20Benefits%20%24150%20Per%20Month&utm_source=email&utm_medium=enl&utm_campaign=earlywire&utm_content=20260107&utm_term=tadv&oly_enc_id=6911H2583589A7Z&user_id=3d158419d93f4751d4b3b79dd78d9abf446b89b61e92e7567cb4126b86cb53c5

10 financial rules to live by.

https://www.marketwatch.com/story/10-rock-solid-financial-rules-to-live-by-no-exceptions-or-it-depends-8d96674c?mod=home_lead

Disclosures

Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy will be profitable or equal the corresponding indicated performance level(s). Moreover, you should not assume that any of the above content serves as the receipt of, or as a substitute for, personalized investment advice from Metric Financial.

All data and performance information sourced from Morningstar and MarketWatch, unless otherwise indicated.

USA is the MSCI USA index, Non-US Developed is the MSCI EAFE index, Emerging Markets is the MSCI Emerging Markets index, and All Country World is the MSCI ACWI index. One cannot invest in an index. Because the factor indexes have varying inception dates, some of the returns provided are back-tested and do not represent actual performance. Inception dates are as follows:

Momentum = MSCI ACWI Momentum NR USD Index (Inception: 11/30/95)

Value = MSCI ACWI Enhanced Value NR USD Index (Inception: 5/29/15)

Quality = MSCI ACWI Quality NR USD Index (Inception: 5/29/92)

Low Volatility = MSCI ACWI Minimum Volatility (USD) NR USD Index (Inception: 5/28/93)

Size = MSCI ACWI Risk Weighted NR USD Index (Inception: 4/6/11)

Metric Financial, LLC (“Metric”) is a registered investment adviser offering advisory services in the State of Connecticut and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. Follow-up or individualized responses to consumers in a particular state by Metric in the rendering of personalized investment advice for compensation shall not be made without our first complying with jurisdiction requirements or pursuant to an applicable state exemption.

All written content is for information purposes only. Opinions expressed herein are solely those of Metric, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.