Despite the confusion of the first week of the incoming Trump administration, the stock market rally gained momentum and the S&P 500 edged to record highs. IBD notched its Stock Market Exposure Guide to the 80% – 100% range on Tuesday. Leaderboard hoisted its Market Outlook to Confirmed Uptrend. That puts investors in good standing as the year-end earnings season rumbles into high gear.
Apple (AAPL), Microsoft (MSFT), Meta Platforms (META) and Tesla (TSLA) are amount the names due to report in the coming week. A Fed meeting and policy announcement top the economic calendar, ongoing initiatives from the White House and the rapidly changing regulatory apparatus give investors plenty to keep an eye on.
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Big Tech Earnings Take Center Stage As Stocks Rally Near Highs
Stocks To Watch: Rally Mode — Time To Act
That means it’s time for investors to start acting on some of the stocks on their watchlists. CrowdStrike (CRWD), Sea Ltd. (SE), HubSpot (HUBS), Bank of America (BAC) and Broadcom (AVGO) are close to buy points from shallow bases. CrowdStrike and HubSpot are offering early entries. Shares of CrowdStrike are already up 11% in January, Sea has a 10% gain. None of these stocks have earnings in the coming week, but other big reports could have an impact.
Economic Calendar: Fed Meeting Highlights Week
The Federal Reserve wraps its meeting on Wednesday, leading a big week for economic news. The first official estimate of Q4 GDP growth arrives Thursday and, on Friday, January consumer spending figures include the Fed’s primary inflation rate, the core PCE price index. The 12-month core inflation rate is seen holding at 2.8%. Chairman Jerome Powell’s Wednesday news conference will be key. Uncertainty surrounding the Trump agenda of tariffs, tax cuts, deregulation and deportations means the Fed will proceed carefully, barring a clear weakening of the job market. Markets currently don’t expect a rate cut until June, though the May meeting is a close call.
Next Fed Meeting: The Rate-Cut Outlook And What It Means For Stocks
Investors Turn To Tesla’s 2025 Outlook
Tesla reports fourth-quarter results late Wednesday. Analysts predict Q4 EPS growing 7% to 76 cents with sales totaling $27.14 billion, up 7.8%. The EV giant already reported record Q4 deliveries on Jan. 2, but failed to hit its target of annual vehicle unit growth compared to 2023. Instead, investors will be looking for 2025 delivery guidance, for when Tesla’s long-awaited “affordable” vehicle might start production, whether fully autonomous self-driving remains on track for California and Texas by mid-2025, and the timeline for the much-touted Optimus humanoid robot. Tesla shares are up 2% in January, and up nearly 200% from an April 2024 low.
Heavy Equipment: CAT, URI Start To Gain Traction
Caterpillar (CAT) and United Rentals (URI) roll out Q4 results Thursday. Truist recently trimmed price targets, but kept buy ratings for both as the industry shows rising strength. United Rentals’ $4.8 billion deal for H&E Equipment (HEES) will be of central interest. URI is climbing in a two-month consolidation. Caterpillar has jumped 16% from an early January low.
Dow Earnings: Apple Faces Low Expectations
In addition to Boeing (BA), Caterpillar and Microsoft, Apple reports in the coming week. The stock has fallen ahead of Thursday’s fiscal first-quarter report. Wall Street is bracing for weak iPhone sales, especially in China, and a possible guide down for the March quarter. For the current quarter, Wall Street is modeling Apple earnings per share of $1.67, up 9%, on sales of $96 billion, up 6%. Apple stock is testing its 200-day line.
Software: Microsoft’s Azure Growth In Focus
Microsoft reports fiscal Q2 results late Wednesday. Analysts predict its slowest earnings growth in eight quarters and slowest sales growth in six quarters. The Azure cloud computing business targets revenue growth of 30.2%, down from 31.1% in the September quarter. Microsoft stock is in a consolidation pattern with a 468.35 buy point.
Social Media: Watching for TikTok-Instagram Impact
Facebook parent Meta Platforms’ on Wednesday targets a 27% earnings jump and a 17% revenue gain for Q4. Chief Executive Mark Zuckerberg is expected to forecast 2025 capital expenditures, rising rapidly as Meta builds out data centers to power its AI ambitions. Analysts expect spending of about $51 billion, up more than 30% year-over-year. Investors might also listen for the possible impact on Instagram if TikTok is indeed banned.
Financial: Gauging The LA Fires Fallout
Investors are likely to gain some additional insight into the financial impact of the ongoing Los Angeles-area wildfires as California’s 10th-largest property and casualty insurer, Chubb (CB), reports late Wednesday. Travelers (TRV), the state’s sixth-largest insurer, reported Wednesday the fires would have a “material impact” on its Q1 results, but didn’t yet have details to offer. Other, smaller insurers due to report, including Brown & Brown (BRO), W.R. Berkley (WRB) and reinsurer RenaissanceRe (RNR), also report during the week.
Stock Market Earnings Briefs
IBM (IBM) reports Q4 results late Wednesday. Analysts polled by FactSet expect a 2% earnings decrease to $3.78 per share. Sales are expected to grow 1% to $17.6 billion. IBM stock gained 36% last year, helped by AI optimism. Shares are in a flat base pattern, 6% below a 239.35 buy point.
Synchrony Financial (SYF) is trading in a flat base buy zone near record highs, above a 69.39 buy point ahead of Q4 results on Tuesday. FactSet expects an 87% increase in earnings to $1.93 per share on 4.6% revenue growth to $3.83 billion.
General Motors (GM) reports Tuesday. Analysts expect a 46% earnings jump on a 4% sales gain. The No. 1 U.S. automaker is lapping easy comparisons from the year-ago quarter, which included an autoworkers’ strike. CEO Mary Barra said GM is aligned with the new administration’s goal of boosting U.S. manufacturing. But Trump’s emissions and trade policies could be a threat. GM is vulnerable on both fronts due to its big EV investments and its significant vehicle manufacturing in neighboring Canada and Mexico.
Royal Caribbean (RCL) releases Q4 results early Tuesday. Analysts expect earnings to increase 20% to $1.50 per share on about 13% revenue growth to $3.76 billion. RCL stock is in a flat base with a 258.70 buy point.
Stryker (SYK) is on deck to report its fourth-quarter earnings after the market closes on Tuesday. Analysts polled by FactSet expect the company to earn an adjusted $3.87 per share on $6.36 billion in sales. Earnings would rise nearly 12% as sales increase more than 9%. Shares are in a cup base.
Mastercard (MA) reports early, Visa (V) reports late Thursday. Piper Sandler lifted price targets for both stocks Friday, saying the ability of AI to generate hefty margin is underappreciated. Visa broke to new highs. Mastercard is in a brief consolidation.
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