Good Morning!
On Tuesday, January 21, the S&P 500 closed at 6,049.24, gaining 0.59%. The NASDAQ was relatively flat, rising 0.11% to finish at 19,756.78 points. The Dow Jones Industrial Average increased by 1.15%, closing at 44,025.81. Meanwhile, the Russell 2000 advanced 1.4%, ending the trading session at 2,317.97.
The 2025 World Economic Forum (WEF), held in Davos, Switzerland, from January 20–24, brought together global leaders to address critical challenges under the theme "Collaboration for the Intelligent Age." Key discussions focused on climate action, artificial intelligence, and geopolitical tensions, including the war in Ukraine. European Commission President Ursula von der Leyen reaffirmed the EU’s climate commitments, while UN Secretary-General António Guterres highlighted the risks of unregulated AI. Business leaders called for ethical AI governance as the forum emphasized global collaboration in an increasingly complex world.
Crypto Highlights
Bitcoin (BTC): Currently trading at $104,095, down 0.51% over the past 24 hours.
Ethereum (ETH): Slightly down 0.42% to $3,282 per coin.
Solana (SOL): Soared 7.48% currently trading at $258.66.
Ripple (XRP): Up 1.22% in the last 24 hours at $3.17 per coin.
Yesterday's Earnings
Netflix (NFLX): Actual EPS: $4.27 (Beat by 1.67%), Expected EPS: $4.2, Actual Revenue: $10.25B (Beat by 1.18%), Expected Revenue: $10.13B, Market Cap: $371.75B
Charles Schwab (SCHW): Actual EPS: $1.01 (Beat by 13.48%), Expected EPS: $0.89, Actual Revenue: $5.3B (Beat by 3.32%), Expected Revenue: $5.13B, Market Cap: $148.15B
Prologis (PLD): Actual EPS: $1.37 (Beat by 93.66%), Expected EPS: $0.71, Actual Revenue: $2.2B (Beat by 12.24%), Expected Revenue: $1.96B, Market Cap: $110.47B
3M (MMM): Actual EPS: $1.68 (Beat by 0.6%), Expected EPS: $1.67, Actual Revenue: $6.01B (Beat by 3.98%), Expected Revenue: $5.78B, Market Cap: $79.24B
Capital One Financial (COF): Actual EPS: $3.09 (Beat by 8.42%), Expected EPS: $2.85, Actual Revenue: $10.2B (Met), Expected Revenue: $10.2B, Market Cap: $73.71B
DR Horton (DHI): Actual EPS: $2.61 (Beat by 9.66%), Expected EPS: $2.38, Actual Revenue: $7.61B (Beat by 6.88%), Expected Revenue: $7.12B, Market Cap: $45.65B
United Airlines Holdings (UAL): Actual EPS: $3.26 (Beat by 11.26%), Expected EPS: $2.93, Actual Revenue: $14.7B (Beat by 2.51%), Expected Revenue: $14.34B, Market Cap: $36.35B
Fifth Third (FITB): Actual EPS: $0.9 (Beat by 2.27%), Expected EPS: $0.88, Actual Revenue: $2.18B (Miss by 1.36%), Expected Revenue: $2.21B, Market Cap: $30.08B
Seagate (STX): Actual EPS: $2.03 (Beat by 8.56%), Expected EPS: $1.87, Actual Revenue: $2.33B (Beat by 0.43%), Expected Revenue: $2.32B, Market Cap: $21.42B
KeyCorp (KEY): Actual EPS: $0.38 (Beat by 15.15%), Expected EPS: $0.33, Actual Revenue: $865M (Miss by 50.29%), Expected Revenue: $1.74B, Market Cap: $19.52B
Earnings Today
P&G (PG): Actual EPS: $1.88 (Beat by 0.53%), Expected EPS: $1.87, Actual Revenue: $21.9B (Beat by 0.97%), Expected Revenue: $21.69B, Market Cap: $380.86B
J&J (JNJ): Actual EPS: $2.04 (Beat by 0.99%), Expected EPS: $2.02, Actual Revenue: $22.52B (Beat by 0.27%), Expected Revenue: $22.46B, Market Cap: $356.69B
Abbott Labs (ABT): Actual EPS: $1.34 (Met), Expected EPS: $1.34, Actual Revenue: $10.97B (Miss by 0.54%), Expected Revenue: $11.03B, Market Cap: $202.57B
Progressive (PGR): Expected EPS: $3.53, Actual Revenue: --, Expected Revenue: $18.14B, Market Cap: $141.19B
GE Vernova LLC (GEV): Actual EPS: $1.73 (Miss by 27.00%), Expected EPS: $2.37, Actual Revenue: $10.56B, Expected Revenue: --, Market Cap: $114.67B
Amphenol (APH): Actual EPS: $0.55 (Beat by 10.00%), Expected EPS: $0.5, Actual Revenue: $4.3B (Beat by 6.17%), Expected Revenue: $4.05B, Market Cap: $87.67B
Kinder Morgan (KMI): Expected EPS: $0.3362, Actual Revenue: --, Expected Revenue: $4.21B, Market Cap: $69.36B
Travelers (TRV): Actual EPS: $9.15 (Beat by 39.48%), Expected EPS: $6.56, Actual Revenue: $12.01B (Beat by 10.79%), Expected Revenue: $10.84B, Market Cap: $54.29B
United Rentals (URI): Expected EPS: $11.75, Actual Revenue: --, Expected Revenue: $3.93B, Market Cap: $51.78B
Discover (DFS): Expected EPS: $3.2, Actual Revenue: --, Expected Revenue: $4.41B, Market Cap: $47.55B
TE Connectivity (TEL): Actual EPS: $1.95 (Beat by 3.17%), Expected EPS: $1.89, Actual Revenue: $3.84B (Miss by 1.79%), Expected Revenue: $3.91B, Market Cap: $44.26B
Crown Castle (CCI): Expected EPS: $0.4488, Actual Revenue: --, Expected Revenue: $1.64B, Market Cap: $39.42B
Las Vegas Sands (LVS): Expected EPS: $0.5828, Actual Revenue: --, Expected Revenue: $2.91B, Market Cap: $32.89B
Halliburton (HAL): Actual EPS: $0.7 (Met), Expected EPS: $0.7, Actual Revenue: $5.61B (Miss by 0.53%), Expected Revenue: $5.64B, Market Cap: $25.94B
Teledyne Technologies (TDY): Actual EPS: $5.52 (Beat by 5.54%), Expected EPS: $5.23, Actual Revenue: $1.5B (Beat by 3.45%), Expected Revenue: $1.45B, Market Cap: $22.39B
Teradyne (TER): Expected EPS: $0.91, Actual Revenue: --, Expected Revenue: $740.47M, Market Cap: $21.55B
Steel Dynamics (STLD): Expected EPS: $1.41, Actual Revenue: --, Expected Revenue: $4.02B, Market Cap: $18.98B
Textron (TXT): Actual EPS: $1.34 (Miss by 0.74%), Expected EPS: $1.35, Actual Revenue: $3.61B (Miss by 4.24%), Expected Revenue: $3.77B, Market Cap: $15.06B
MarketAxess (MKTX): Expected EPS: $1.82, Actual Revenue: --, Expected Revenue: $209.74M, Market Cap: $8.37B
Headlines
EU Open for Business as Trump Takes Office, Von der Leyen Says
European Commission President Ursula von der Leyen declared that the European Union is “open for business” and ready to engage globally, as U.S. President Donald Trump’s administration signals a shift toward protectionism. Speaking at the World Economic Forum in Davos, von der Leyen emphasized the EU’s commitment to cooperation on shared challenges like climate change and artificial intelligence. She expressed readiness to work with longstanding allies, including the U.S., and other nations, provided there are mutual benefits.
Von der Leyen highlighted Europe’s interest in strengthening ties with partners such as Switzerland, Mexico, and Mercosur, and expressed a pragmatic approach toward the U.S. amid Trump’s tariff threats against EU goods. German Chancellor Olaf Scholz echoed the importance of maintaining close U.S.-EU relations for economic and security reasons, though he acknowledged the challenges posed by Trump’s unpredictable policies. Addressing the EU’s strained ties with China, von der Leyen noted the upcoming 50th anniversary of EU-China relations as an opportunity to pursue a more balanced trade and investment partnership while defending European interests.
Dollar Tumbles as Trump Team Signals No Immediate Tariffs
The U.S. dollar fell sharply on Monday after an official from the incoming administration of President-elect Donald Trump signaled that no new trade tariffs would be imposed on his first day in office. This announcement eased concerns about the immediate implementation of previously pledged tariffs, including a 10% duty on global imports, a 60% tariff on Chinese goods, and a 25% surcharge on imports from Canada and Mexico. These proposed measures had raised fears of disrupted trade flows, increased costs, and potential retaliatory actions from trading partners.
In response to the news, currencies like the Canadian dollar, Mexican peso, and Chinese yuan strengthened significantly, with gains between 1% and 1.5%. The euro also surged 1.5%, marking its largest one-day rally against the dollar in over a year. European stock markets reacted positively, with indices showing notable gains.
Trump Pushes for Early Renegotiation of North American Trade Deal
The Trump administration is moving to renegotiate the U.S.-Mexico-Canada Agreement (USMCA) ahead of its scheduled 2026 review, aiming to protect U.S. auto jobs and counter Chinese competition in Mexico’s auto sector. Signed in 2020, the USMCA requires a joint review after six years, but President Donald Trump plans to accelerate discussions to tighten rules on auto production and prevent Chinese firms from using Mexican factories to access U.S. markets.
Trump also threatened to impose a 25% tariff on Canadian and Mexican products starting February 1, citing concerns over drugs and migration across the borders. The administration has accused Mexico of violating agreements on limiting metal exports and views the renegotiation as an opportunity to enforce stricter trade policies. Analysts and trade experts expected Trump to expedite this issue taking a more aggressive approach to revising the landmark trade deal.
Trump Plans 10% Tariffs on Chinese Imports, Escalating Trade Tensions
President Donald Trump announced a 10% tariff on Chinese imports set to take effect February 1, citing China’s role in America’s fentanyl crisis. Speaking from the White House, Trump claimed China was exporting fentanyl to Canada and Mexico, where it enters the U.S. This move adds to his earlier pledge of a 25% tariff on Canadian and Mexican imports, blaming them for failing to curb drug trafficking and illegal immigration.
China responded firmly, with Foreign Ministry spokesperson Mao Ning stating that Beijing would “safeguard” its interests and reiterating that trade wars yield no winners. The new tariff builds on existing levies on over $300 billion of Chinese goods from Trump’s first term, many of which were maintained by the Biden administration.
22 States Sue to Block Trump’s Order Ending Birthright Citizenship
Attorneys general from 22 states, along with the District of Columbia and San Francisco, have filed lawsuits to block President Donald Trump’s executive order challenging birthright citizenship. The order, issued Monday, seeks to limit automatic citizenship to children born in the U.S. whose parents meet specific legal residency or citizenship criteria. It is set to take effect on February 19. The plaintiffs argue the order violates the 14th Amendment, which guarantees citizenship to anyone born on U.S. soil, a principle upheld by landmark cases like the 1898 Wong Kim Ark decision.
Trump Ends Remote Work for Federal Employees, Aiming to Shrink Workforce
In one of his first executive actions as president, Donald Trump has ordered an end to remote work for all federal employees, requiring a return to in-person work. The move, aimed at reducing the federal workforce through attrition, directs executive branch leaders to implement this policy “as soon as practicable.” While department heads may grant exemptions, the order is expected to impact millions of federal employees, many of whom adopted telework arrangements during the COVID-19 pandemic.
Elon Musk, head of the Department of Government Efficiency (DOGE), strongly supported the decision, stating in a Wall Street Journal op-ed that remote work privileges should not be taxpayer-funded if employees resist returning to offices. Approximately 10% of the federal workforce, or 228,000 employees, currently hold fully remote positions. The administration plans further measures to reduce government jobs, including relocating federal positions outside Washington, D.C., as part of broader efforts to get more republicans and centrists into government positions.
SEC Launches ‘Crypto Task Force’
The Securities and Exchange Commission (SEC) has announced the formation of a "crypto task force" to develop a clear and comprehensive regulatory framework for digital assets. In a press release issued Tuesday, the agency highlighted its commitment to creating a balanced approach that aligns with legal boundaries. Headed by SEC Commissioner Hester Peirce, the task force aims to engage a broad range of stakeholders, including investors, industry experts, academics, and the public, to shape a regulatory environment that safeguards investors, fosters market integrity, and supports innovation.
The task force's launch reflects a notable shift in U.S. leadership's approach to cryptocurrency. Formerly critical of digital assets, President Donald Trump embraced them during his latest campaign, becoming the first presidential candidate to accept crypto donations via Coinbase Commerce. Trump’s nominee for SEC chair, Paul Atkins, is a known crypto advocate, tasked with promoting digital assets.
Oracle Surges, Chip Stocks Rise as Trump Unveils $500 Billion AI Plan
Oracle's shares surged nearly 9% on Wednesday following U.S. President Donald Trump’s announcement of a $500 billion artificial intelligence initiative named the Stargate Project. The joint venture, involving Oracle, OpenAI, SoftBank, and others, aims to secure the United States' leadership in AI development, particularly against global competitors like China. The project will deploy $100 billion immediately, with the remainder invested over the next four years. Construction of data centers has already begun in Texas, signaling rapid implementation.
The announcement also boosted shares of other tech partners in the venture. Nvidia, tasked with supplying chips, rose 2.7%, while Microsoft gained 1.1%, and Arm climbed 5.5%. The ripple effect extended across AI-related sectors, with Dell Technologies and Super Micro Computer posting gains of 4.3% and 2.7%, respectively. Nuclear power company Vistra rose 3.8%, driven by increased demand for data centers.
Microsoft Loses Exclusive Cloud Provider Status for OpenAI
Microsoft, OpenAI's largest investor and primary cloud partner, has lost its status as the exclusive provider of computing capacity for the artificial intelligence startup. The change was disclosed during President Donald Trump’s announcement of the Stargate Project, a joint venture with OpenAI, Oracle, and SoftBank to develop AI infrastructure in the U.S. As part of the revised agreement, Microsoft retains a “right of first refusal” when OpenAI seeks additional cloud capacity but will no longer have exclusivity.
The Stargate Project will see an initial $100 billion investment, scaling up to $500 billion over four years, with data centers already under construction in Texas. Oracle, alongside Microsoft, Nvidia, and Arm, will play a key role in building the infrastructure. Despite the shift, Microsoft has secured a new commitment from OpenAI for Azure services and retains rights to OpenAI's intellectual property for products like Copilot.
Netflix Plans Now Cost Between $8 and $25 After Latest Price Hike
Netflix has announced another subscription price increase, impacting viewers in the U.S., Canada, Portugal, and Argentina. The company’s Standard plan with ads now costs $8 per month, up from $7, while the ad-free version jumps from $15 to $18. The Premium plan, offering 4K Ultra HD and HDR, rises from $23 to $25. Additionally, the cost of adding an extra member outside a household has increased from $8 to $9 per month.
In its shareholder letter, Netflix justified the hikes by citing the need to reinvest in programming and enhance value for members. This marks the first price adjustment since Netflix eliminated its Basic plan in major markets in 2023. The increase accompanies positive financial results, including $10 billion in operating income and a 16% revenue growth in Q4 2024.
