The stock market exited the week stronger than it started, closing in a solid position ahead of the presidential inauguration and the holiday weekend. The Nasdaq and S&P 500 punched past resistance on Friday. IBD’s Stock Market Exposure guide strengthened notably. The Russell 2000’s five-day rally showed a sharp rebound from 200-day support, and cleared its 21-day moving average.
The stock market faces a rousing session Tuesday, after Monday’s holiday and inauguration, as the fourth-quarter reporting season gains momentum. Bitcoin and cryptocurrencies will be closely watched. Netflix (NFLX), GE Aersopace (GE) and GE Vernova (GEV) report, along with a handful of Dow Jones Industrial names. And investors should be on the hunt for breakouts among healthy stocks, as the market orients itself toward new highs.
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Stocks Surge Into Trump 2.0; Viking Holdings, ServiceNow, Amazon.com In Focus
Stocks To Watch: Five Stocks Near Buy Points
The stock market indexes are wrestling near key levels ahead of Inauguration Day uncertainties, but there’s broad leadership underneath. Broadcom (AVGO), ServiceNow (NOW), ExlService Holdings (EXLS), Energy Transfer (ET) and Goldman Sachs (GS) are near buy points. All are signaling resilience as these stocks have held up well, often after strong runs. Broadcom and ServiceNow are near early entries. ServiceNow is six weeks into a flat base and Broadcom is putting the final touches on its flat base. ExlService is flirting with a breakout from a traditional buy point. Energy Transfer and Goldman have broken out and are in buy zones — with Goldman already up nearly 9% so far in January.
Market Movers: Trump’s Busy Inauguration Day
The second Trump administration gets underway at noon ET on Monday, and is expected to set a record pace in revamping U.S. policies, with 100 executive orders set for day one. Monday’s Martin Luther King Jr. Day means the stock market won’t feel the impact, which could be significant, until Tuesday. In November, Trump vowed on day one to increase tariffs on China by 10%, and impose 25% tariffs on Canada and Mexico. Still, appear to expect only a partial follow through. Also on the docket: immigration policy, crypto regulation, expanded energy production, pardoning Jan. 6 offenders, and banning transsexuals from participating in women’s sports or serving in the military.
Netflix Earnings Seen Doubling
Subscription streaming video giant Netflix will report its fourth-quarter results late Tuesday. Wall Street is looking for Netflix to add 8.2 million new subscribers worldwide in the fourth quarter, for a total of 290.9 million. However, Netflix has said this will be the last quarter that it will report quarterly subscriber numbers. It wants investors to focus on revenue and operating margin instead. Analysts polled by FactSet expect Netflix to earn $4.20 a share, up 99% year over year, on sales of $10.12 billion, up 15%, in the quarter ended Dec. 31. The stock’s 83% rally in 2024 started with a 15.9% jump last January. This year, shares are down about 3% so far for the month.
Energy/Aerospace: Tracking A Divided GE
GE Vernova reports early Wednesday and GE Aerospace early Thursday. Analysts expect GE Aerospace to deliver earnings of $1.04 on revenue of $9.495 billion, according to FactSet. They see Vernova posting EPS of $2.30 and sales of $10.693 billion. Year-ago comparisons are muddied by the breakup of General Electric, which saw its jet engine and energy businesses emerge as independent companies last April. GE stock is consolidating near highs with a 194.80 buy point. GEV stock, up nearly 200% since its spin off, broke out ahead of earnings and is now extended.
Financials: Dow Leader In A Buy Range
A fast-rising American Express (AXP) reports early Friday. Analysts expect a 16% EPS gain on 9% revenue growth. Ahead of the fourth-quarter report, the credit card company agreed to pay about $230 million to settle federal investigations and claims tied to wire fraud and deceptive marketing. Amex cards’ well-heeled customers equate to low delinquencies and solid fundamentals. The company reports inroads with Gen Z customers as well. American Express stock is in buy range from a breakout past 307.82, following a big 2024 rally.
Warren Buffett Winner Enters Buy Range Amid Bank Boom
Blue Chip Radar: Insurers Face Tough Questions
In addition to American Express, Dow names including Verizon (VZ), Johnson & Johnson (JNJ), Procter & Gamble (PG), Progressive (PGR), Travelers (TRV), and 3M (MMM) are due to report in the coming week. Expectations are low across the board. Progressive and especially Travelers could face energetic earnings calls regarding the financial impact and industry response to the Los Angeles fires. Both stocks are rebounding. 3M has the best looking chart in the group, a fraction below a flat-base buy point.
Stock Market Briefs
Capital One (COF) reports Q4 results late Tuesday. FactSet expects earnings to increase 26% to $2.83 per share on 7% revenue growth to $10.21 billion. COF stock is trading in a double-bottom base with a 194.30 buy point.
Interactive Brokers (IBKR) reports late Tuesday. Analysts project a 21% earnings jump on a 19% sales gain. The online brokerage stock eyes a 193.41 buy point after a strong rally in 2024. But Interactive has seen upstart rival Robinhood encroach on its turf with an advanced desktop trading platform and expansion in options and futures trading.
Discover Financial Services (DFS) releases Q4 results late Wednesday. Analysts predict earnings will increase 134% to $3.61 per share on 4.5% revenue growth to $4.39 billion. DFS stock is hovering below a 188.26 buy point for a flat base, after easing from its record high of 188.99 from Wednesday.
Kinder Morgan (KMI) late Wednesday offers its Q4 results and a check-in on the fast-moving pipeline industry stocks. After nearly two years of spotty results, analysts see performance stabilizing in 2025, starting with a Q4 EPS gain of 20%. KMI is extended after Tuesday’s cup-base breakout.
MakeMyTrip (MMYT) reports fiscal Q3 results on Thursday. Analysts see earnings increasing 11% year over year to 24 cents per share, according to FactSet. Sales are seen rising 22% to $265.1 million. MakeMyTrip stock has surged more than 120% over the past 12 months, helped by a strong travel market in India.
SLM (SLM) started life as the Student Loan Marketing Association. No longer a government entity, SLM has struggled with erratic quarterly results. After a 309% earnings tumble in Q3, analysts see a 23% slip with a 10% revenue drop for Q4. Still, shares rallied 46% in 2024 and are trading just off highs ahead of Thursday’s earnings report.
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