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Coming off a dormant Monday, where Wall Street was closed for MLK’s birthday, we’re surprisingly active with things to discuss this morning. Q4 earnings season has yet to hit a high gear but moves forward, business and government leaders throughout the world meet up in Davos, Switzerland for their annual meeting this week, and Donald Trump begins his second day in his second (non-consecutive) term in the White House.
Due to this last thing, perhaps we shouldn’t be surprised we have so much to talk about. Davos isn’t missing the memo: as it discusses global warming, he sees President Trump once again leaving the Paris Accord on climate change amid chants of “drill baby drill.” World leaders also take note of Trump’s new “External Revenue Service,” or tariffs program soon to be articulated.
TikTok has gotten a 75-day reprieve after a 14-hour shutdown last weekend; what will transpire over the next 2 1/2 months? And regarding the war in Ukraine, Vladimir Zelensky will address the Davos crowd. Next month will mark three years since Russia’s unprovoked attack on its neighboring country.
Earnings Update: DR Horton, Chas Schwab Beat
Mid-level homebuilder D.R. Horton (DHI - Free Report) reported fiscal Q1 results this morning ahead of the bell, easily surpassing estimates on both top and bottom lines. Earnings of $2.61 per share marked a +8.75% beat over the expected $2.40 (though still behind the $2.82 per share reported a year ago). Revenues outperformed expectations by +6.8% in the quarter to $7.61 billion. Shares are up +3% on the news in today’s pre-market, adding to the +5.6% gains year to date. For more on DHI’s earnings, click here.
Zacks Rank #2 (Buy)-rated commercial investment services firm Charles Schwab (SCHW - Free Report) also surpassed estimates in its quarterly report this morning, sending pre-market shares up +4% at this hour. Earnings of $1.01 per share outpaced expectations by +12.22% over the 90 cents per share in the Zacks consensus. Revenues of $5.18 billion amounted to a +16.2% positive surprise, largely on higher trading volume and $115 billion in new assets for the quarter.
What to Expect from the Stock Market This Tuesday
Analysts will continue to parse the substantial changes President Trump is making via executive order. Day One was eventful, as mentioned above, but this new administration has plenty of fish to fry; marking its vast differences from the previous Joe Biden administration is expected to continue in notable fashion.
After today’s closing bell, we’ll see the first of the so-called “Magnificent 7” companies reporting Q4 earnings: Netflix (NFLX - Free Report) . Expectations are for a large +98.58% hike in earnings per share year over year, and +14.5% in revenues. The streaming giant — with a current Zacks Rank of #3 (Hold) — looks for its fourth straight earnings beat.
We’ll also see earnings results from United Airlines (UAL - Free Report) , currently residing at a top-of-the-heap Zacks Rank #1 (Strong Buy) with a Value-Growth-Momentum score of A, along with credit card major Capital One (COF - Free Report) , a Zacks Rank #3. United is expected to show +50.5% earnings growth and +5.6% on revenues, while Capital One looks for +18.75% on earnings and +6.85% on revenues.
At this hour, the Dow is +183 points and the S&P 500 +28. The Nasdaq is up +126 points and the small-cap Russell 2000 is +17. All these major indexes are up greater than +2% year to date, following two solid years of yearly growth. Bond yields are moderately lower at this hour: +4.56% on the 10-year and +4.25% on the 2-year.
Image: Bigstock
Pre-Markets Start Trading Week in the Green
Tuesday, January 21, 2025
Coming off a dormant Monday, where Wall Street was closed for MLK’s birthday, we’re surprisingly active with things to discuss this morning. Q4 earnings season has yet to hit a high gear but moves forward, business and government leaders throughout the world meet up in Davos, Switzerland for their annual meeting this week, and Donald Trump begins his second day in his second (non-consecutive) term in the White House.
Due to this last thing, perhaps we shouldn’t be surprised we have so much to talk about. Davos isn’t missing the memo: as it discusses global warming, he sees President Trump once again leaving the Paris Accord on climate change amid chants of “drill baby drill.” World leaders also take note of Trump’s new “External Revenue Service,” or tariffs program soon to be articulated.
TikTok has gotten a 75-day reprieve after a 14-hour shutdown last weekend; what will transpire over the next 2 1/2 months? And regarding the war in Ukraine, Vladimir Zelensky will address the Davos crowd. Next month will mark three years since Russia’s unprovoked attack on its neighboring country.
Earnings Update: DR Horton, Chas Schwab Beat
Mid-level homebuilder D.R. Horton (DHI - Free Report) reported fiscal Q1 results this morning ahead of the bell, easily surpassing estimates on both top and bottom lines. Earnings of $2.61 per share marked a +8.75% beat over the expected $2.40 (though still behind the $2.82 per share reported a year ago). Revenues outperformed expectations by +6.8% in the quarter to $7.61 billion. Shares are up +3% on the news in today’s pre-market, adding to the +5.6% gains year to date. For more on DHI’s earnings, click here.
Check out the updated Zacks Earnings Calendar here.
Zacks Rank #2 (Buy)-rated commercial investment services firm Charles Schwab (SCHW - Free Report) also surpassed estimates in its quarterly report this morning, sending pre-market shares up +4% at this hour. Earnings of $1.01 per share outpaced expectations by +12.22% over the 90 cents per share in the Zacks consensus. Revenues of $5.18 billion amounted to a +16.2% positive surprise, largely on higher trading volume and $115 billion in new assets for the quarter.
What to Expect from the Stock Market This Tuesday
Analysts will continue to parse the substantial changes President Trump is making via executive order. Day One was eventful, as mentioned above, but this new administration has plenty of fish to fry; marking its vast differences from the previous Joe Biden administration is expected to continue in notable fashion.
After today’s closing bell, we’ll see the first of the so-called “Magnificent 7” companies reporting Q4 earnings: Netflix (NFLX - Free Report) . Expectations are for a large +98.58% hike in earnings per share year over year, and +14.5% in revenues. The streaming giant — with a current Zacks Rank of #3 (Hold) — looks for its fourth straight earnings beat.
We’ll also see earnings results from United Airlines (UAL - Free Report) , currently residing at a top-of-the-heap Zacks Rank #1 (Strong Buy) with a Value-Growth-Momentum score of A, along with credit card major Capital One (COF - Free Report) , a Zacks Rank #3. United is expected to show +50.5% earnings growth and +5.6% on revenues, while Capital One looks for +18.75% on earnings and +6.85% on revenues.
At this hour, the Dow is +183 points and the S&P 500 +28. The Nasdaq is up +126 points and the small-cap Russell 2000 is +17. All these major indexes are up greater than +2% year to date, following two solid years of yearly growth. Bond yields are moderately lower at this hour: +4.56% on the 10-year and +4.25% on the 2-year.
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