Good Morning!
On Friday, the S&P 500 closed at 5,996.66, up 1.00%, while the NASDAQ climbed 1.51% to finish at 19,630.20. The Dow Jones Industrial Average advanced 0.78% to close at 43,487.83. Over the past week, the S&P 500 gained 3.71%, the NASDAQ surged 3.84%, and the Dow Jones climbed 3.53%. Meanwhile, small caps, represented by the Russell 2000, jumped 4.57% to end the week at 2,275.88.
Since the presidential inauguration, Donald Trump has signed more than 100 executive orders into law. A separate article on this topic will be published later today.
Crypto Highlights
Bitcoin (BTC): In the last 24 hours Bitcoin is down 3.85% trading at $103,553.
Ethereum (ETH): Down 1.85%, trading at $3,285 per coin.
Ripple (XRP): Slid 4.46%, trading at $3.13 per coin.
Solana (SOL): Down 5.15%, trading at $242.63.
Following the launch of the $TRUMP coin over the weekend, Solana also hit an all-time high of $292 amid a buying frenzy. The Solana network experienced congestion, and transactions were delayed on Coinbase as users withdrew funds to purchase $TRUMP and $MELANIA, a second meme coin launched by the Trump team on Sunday. Just before the inauguration, Bitcoin reached an all-time high of $108,594.
Earnings Today
Netflix (NFLX): Expected EPS: $4.2, Expected Revenue: $10.13B, Market Cap: $366.8B
Charles Schwab (SCHW): Actual EPS: $1.01, Expected EPS: $0.89, Actual Revenue: $5.3B, Expected Revenue: $5.13B, Market Cap: $139.87B
Prologis (PLD): Actual EPS: $1.37, Expected EPS: $0.71, Actual Revenue: $2.2B, Expected Revenue: $1.96B, Market Cap: $105.15B
3M (MMM): Actual EPS: $1.68, Expected EPS: $1.67, Actual Revenue: $6.01B, Expected Revenue: $5.78B, Market Cap: $76.8B
DR Horton (DHI): Actual EPS: $2.61, Expected EPS: $2.38, Actual Revenue: $7.61B, Expected Revenue: $7.12B, Market Cap: $47.37B
Fifth Third (FITB): Actual EPS: $0.9, Expected EPS: $0.88, Actual Revenue: $2.18B, Expected Revenue: $2.21B, Market Cap: $29.73B
KeyCorp (KEY): Actual EPS: $0.38, Expected EPS: $0.33, Actual Revenue: $865M, Expected Revenue: $1.74B, Market Cap: $20.25B
Headlines
Trump Threatens 25% Tariffs on Mexico and Canada, Delays Broad Trade Pledges
President Donald Trump has announced plans to impose 25% tariffs on Mexico and Canada starting February 1, signaling a dramatic shift in North American trade policy. Signed on his first full day in office, the executive action sets the stage for potentially significant disruptions to trade relationships with two of the United States' largest partners. While Trump’s broader campaign promises of universal tariffs on imports have been delayed, his administration has directed federal agencies to investigate trade deficits, reassess existing agreements, and explore stricter trade policies targeting migration and drug flows.
The tariffs could raise prices for U.S. consumers already grappling with inflation, as businesses are likely to pass the additional costs onto buyers. Mexico and Canada collectively account for 30% of U.S. exports, and retaliatory tariffs from these countries could harm key American industries.
China’s Crude Oil Imports from Russia Hit Record High in 2024
China’s crude oil imports from its top supplier, Russia, reached a new high in 2024, increasing by 1% compared to 2023, as refiners took advantage of discounted Russian oil to mitigate weak margins. According to data from China’s General Administration of Customs, imports from Russia, including pipeline and seaborne supplies, totaled 108.5 million metric tons, or 2.17 million barrels per day (bpd). In contrast, imports from Saudi Arabia, the largest OPEC producer, dropped 9% to 1.57 million bpd due to competition from cheaper Russian and Iranian supplies. However, Saudi Arabia regained some market share in the fourth quarter after implementing price cuts and benefiting from reduced Iranian exports.
China’s overall crude oil imports declined 1.9% in 2024, marking the first non-pandemic-related annual drop, driven by tepid economic growth and slowing fuel demand. Meanwhile, imports from Malaysia, a key trans-shipment hub for sanctioned Iranian and Venezuelan oil, surged by 28% to 1.41 million bpd, making it China’s third-largest supplier. Shipments from Venezuela remained minimal, while imports from Brazil grew by 17%, and purchases from the U.S. plunged 36%.
Trump Targets Electric Vehicle Policies, Prioritizes Consumer Freedom and Energy Independence
President Donald Trump signed an executive order on January 20, 2025, to dismantle what he called "Biden's EV mandate," signaling his administration's focus on prioritizing consumer choice and traditional energy sectors over government-driven electric vehicle (EV) adoption. The order pauses funding for EV infrastructure, such as charging stations, and directs agencies to eliminate subsidies and emissions regulations that Trump argues unfairly favor EVs while driving up costs for gasoline-powered vehicles. He also vowed to ease tailpipe emission standards, asserting that stricter regulations have burdened automakers and consumers without delivering meaningful environmental benefits.
Trump’s actions reflect his belief that EV incentives are a government overreach that distort free markets and disadvantage average Americans. Critics of EV policies highlight issues such as higher costs for vehicles, limited range, and unreliable charging infrastructure that fail to meet the needs of many drivers. By promoting domestic energy production and loosening regulations, Trump aims to strengthen the economy and reduce reliance on expensive, taxpayer-funded green initiatives.
U.S. Withdraws from Paris Agreement Under Trump Administration
On January 20, 2025, President Donald Trump signed an executive order to withdraw the United States from the Paris Agreement, making it one of only four countries globally not participating in the landmark climate accord. The agreement, designed to curb global greenhouse gas emissions and limit global warming to manageable levels, previously saw the U.S. rejoin under President Biden in 2020 after Trump’s initial withdrawal during his first term. The latest decision underscores Trump’s administration’s commitment to expanding fossil-fuel production and rolling back clean-energy initiatives.
US Exit from WHO Started
President Donald Trump has signed an executive order initiating the United States' withdrawal from the World Health Organization (WHO), marking the second time his administration has taken such action. Trump criticized the WHO’s handling of the COVID-19 pandemic, its governance reforms, and its alleged susceptibility to political influence, calling the organization's funding demands on the US "unfairly onerous." The US contributed nearly 20% of the WHO's $6.8 billion budget in 2023, making it the largest funder.
Trump Vows to Reclaim Panama Canal, Cites ‘Manifest Destiny’ in Inaugural Speech
In his second inaugural address, President Donald Trump pledged to take back control of the Panama Canal, accusing Panama of breaking agreements made during the canal’s transfer in 1999 and alleging undue Chinese influence in its operation. Trump declared, “We didn’t give it to China. We gave it to Panama, and we’re taking it back,” while stopping short of detailing when or how he intends to act. Panama’s President Jose Raul Mulino firmly rebutted Trump’s claims, stating the canal is responsibly managed and remains under Panamanian sovereignty. Critics have denounced Trump’s rhetoric as modern-day imperialism, warning it could embolden other global powers, such as Russia and China, in their territorial ambitions.
Trump’s speech also invoked the 19th-century doctrine of "Manifest Destiny," framing territorial expansion as central to U.S. identity. He linked this vision to space exploration, promising to plant the American flag on Mars and declaring the U.S. “a growing nation” with aspirations to expand its wealth, cities, and territory. Alongside his call to rename the Gulf of Mexico as the “Gulf of America,” Trump’s remarks revived themes of American expansionism
Trump Signs Executive Order to End Birthright Citizenship
President Donald Trump signed an executive order on January 20, 2025, aiming to end birthright citizenship for children born to undocumented immigrants and certain non-citizen parents in the United States. The order, “Protecting the Meaning and Value of American Citizenship,” challenges the 14th Amendment, which has long been interpreted to guarantee citizenship to anyone born on U.S. soil. Effective February 19, the policy would deny citizenship to infants born to undocumented mothers or mothers with temporary legal status if the father is also a non-citizen or non-resident.
Trump Revokes Security Clearances of Former Officials Over Hunter Biden Laptop Letter
President Donald Trump signed an executive order on January 20, 2025, revoking the security clearances of 51 former intelligence officials who signed a 2020 letter suggesting emails from Hunter Biden’s laptop bore “all the classic earmarks of a Russian information operation.” The action also targeted John Bolton, Trump’s former national security adviser, for allegedly mishandling sensitive information in a memoir critical of Trump.
Trump Pushes Vivek Ramaswamy Out of DOGE Role Amid Tensions
Vivek Ramaswamy’s anticipated tenure as co-chair of the proposed Department of Government Efficiency (DOGE) has seemingly come to an abrupt end due to reported clashes with department insiders and lack of cooperation with fellow co-chair Elon Musk. Sources close to Donald Trump’s administration revealed that Ramaswamy’s presence had become unwelcome, with one insider remarking that he had "worn out his welcome." Despite spending significant time at Mar-a-Lago during the transition, Ramaswamy and Musk reportedly failed to collaborate effectively on the agency’s cost-cutting objectives.
Amid mounting frustration, Trump encouraged Ramaswamy to pivot to a potential Ohio Senate seat vacated by Vice President-elect JD Vance. However, that role ultimately went to Ohio Lieutenant Governor Jon Husted. Sources suggest that Ramaswamy now plans to run for Ohio governor in 2026, signaling his exit from Trump’s immediate circle.
China’s Ambitious Bid to Rival Rolls-Royce in Aviation
China is intensifying efforts to challenge Western aerospace dominance, aiming to break the long-standing duopoly of Airbus and Boeing and reduce its reliance on foreign imports. The state-backed Commercial Aircraft Corporation of China (Comac) is advancing its C919 aircraft, a passenger plane already established on domestic routes, and is seeking international certification to expand globally. However, the centerpiece of China’s bold plan is the development of the CJ-1000, its first indigenous commercial jet engine, intended to replace the American-French Leap engine currently used in the C919.
This ambitious project aligns with President Xi Jinping’s vision to achieve self-reliance in critical industries, especially as geopolitical tensions rise under Donald Trump’s renewed presidency. While skeptics highlight China’s limited track record in high-tech aviation and challenges like poor reliability and mechanical failures in domestically produced engines, Beijing’s ability to rapidly ascend in industries such as electric vehicles and microchips suggests it cannot be underestimated.
SEC Sues Nova Labs Over Alleged Unregistered Crypto Securities Offerings
The United States Securities and Exchange Commission (SEC) has filed a lawsuit against Nova Labs, the company behind the Helium Network, just days before SEC Chair Gary Gensler steps down on January 20. The SEC accuses Nova Labs of selling unregistered investment products, including cryptocurrency-mining devices called "Hotspots" and a program known as "Discovery Mapping," which allegedly allowed users to trade personal data for cryptocurrency. The lawsuit also claims Nova Labs misled investors by falsely suggesting partnerships with major corporations such as Lime, Nestlé, and Salesforce.
This legal action comes as the SEC maintains its aggressive stance on regulating cryptocurrencies under Gensler's leadership. The crypto industry has faced similar lawsuits over unregistered securities, despite notable rulings like Ripple Labs’ victory in July 2023, which found that XRP did not qualify as an unregistered security in programmatic sales. As new SEC leadership takes over, reports suggest the agency may review ongoing crypto cases, potentially freezing those without fraud allegations.
