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- 👉 Historic Week in the USA
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Welcome to your new week.
And goodness gracious — it’s a MASSIVE one.
As you read this newsletter, Donald Trump has once again become the President of the United States.
By the time we go to sleep tonight, there may have been 100+ executive orders signed by President Trump. It’s impossible to know what exactly is going to happen today, and how financial markets are going to respond.
Whether it’s border security, energy (drilling), crypto, deportations, foreign relations, or anything in between — we’re due for some serious headlines.
Pop your popcorn!
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Key Earnings Announcements:
Major earnings from a wide variety of industries report this week.
Monday (1/20): Markets Closed for Martin Luther King Jr. Day
Tuesday (1/21): Capital One, Charles Schwab, Fifth Third Bank, Interactive Brokers, Netflix, United, 3M
Wednesday (1/22): Abbott, Ally, Discover, Johnson & Johnson, Kinder Morgan, Procter & Gamble
Thursday (1/23): American Airlines, GE Aerospace, Intuitive Surgical, Texas Instruments
Friday (1/24): American Express, HCA Healthcare, Nextera Energy, Verizon
What We’re Watching:
American Express (AXP)
American Express enters its Q4 earnings following a stellar 2024 — delivering a +60% total shareholder return. Analysts expect 16%+ EPS growth and 10%+ revenue growth, but the stock’s premium valuation and sky-high expectations raise the bar for what’s needed to sustain momentum. AXP’s increasing global brand and affluent customer base — spending 3x more on average than other card networks — has been key to its success. However, with Fed uncertainty a consumer slowdown remains a key risk.
In other news this week, AXP recently agreed to a $230 million settlement with regulators over past sales practices. While the costs were mostly accounted for earlier and won’t impact 2024 guidance, it underscores the importance of strong compliance in maintaining its premium reputation.
American Express Co. (AXP) Stock Performance, 5-Year Chart, Seeking Alpha
Netflix (NFLX)
Source: Q3 ‘24 Letter to Shareholders
Netflix’s impressive 2024, with +15% revenue growth and a record 30% operating margin in Q3, fueled optimism around the stock. Hits like Squid Game S2 and Cobra Kai boosted engagement, while ad-supported memberships surged +35% quarter-over-quarter. Regional growth highlights include +19% revenue growth in APAC and steady momentum in EMEA and UCAN. However, the LATAM region saw minor challenges from price changes, though recovery began in Q4.
Despite these achievements, Netflix faces headwinds in 2025, including slowing paid membership growth and flat average revenue per member (ARM) outside foreign exchange adjustments. While its growing ad business and global content slate support long-term potential, market expectations for sustained outperformance may set the stage for disappointment next year.
Netflix, Inc. (NFLX) Stock Performance, 5-Year Chart, Seeking Alpha
Investor Events / Global Affairs:
47th Presidential Inauguration, IPO market heating up, and a high-octane Monster Energy event.
Donald Trump’s Inauguration
Source: Spencer Platt/Getty Images
Donald J. Trump was inaugurated as the 47th U.S. president, becoming the second person to serve non-consecutive terms, alongside Vice President J.D. Vance. His Day One agenda includes declaring a national energy emergency, boosting Alaska's energy production, and reversing many of Biden's renewable energy policies. Key executive orders target immigration by ending birthright citizenship, reinstating the "Remain in Mexico" policy, and deploying troops to the border.
Trump also plans to dismantle federal diversity, equity, and inclusion initiatives while reintroducing Schedule F — stripping job protections for thousands of federal workers. He will delay a TikTok ban, signaling a cautious approach to tech regulation. Prominent tech and media figures attended the scaled-back inauguration ceremony.
Major CEOs that were in the U.S. Capitol included:
Elon Musk (TSLA)
Jeff Bezos (AMZN)
Tim Cook (AAPL)
Sundar Pichai (GOOG)
Mark Zuckerberg (META)
Early actions aim to redefine trade, energy, and immigration policies while fostering optimism in sectors like cryptocurrency. We’ll see exactly what he says very shortly!
Just remember one thing… the President isn’t in control of your money and your life. YOU are the one that must take the proper steps to secure your financial future.
“What matters going forward is to actually make significant changes… Have us submit those changes, and it will set the foundation for America to be strong for a century, for centuries, forever.”
IPO Market Heats Up
Source: Monthira/Shuttershock
The IPO market is gaining momentum this week with five companies set to go public. The headliners are Toppoint (TOPP), a truckload services and solutions provider, and Venture Global (VG), a U.S. liquefied natural gas exporter.
Other notable debuts include Decent Holding (DXST), Maverick Lifestyle (MVRK), and FBS Global (FBGL). Investors will be watching closely for pricing trends and initial trading performance as indicators of broader market appetite for new listings in 2025.
You’ve heard me talking about this for months now… 2025 is the year that IPOs likely return to the market in a big way!
I can’t wait to see companies like Klarna, SpaceX, and Stripe hopefully go public!
Monster Energy Event
Source: Jet City Image / iStock Editorial via Getty Images
Monster Beverage will host its highly anticipated 2025 Analyst Day, offering updates on key growth drivers, including the re-launch of Bang and its innovation pipeline. As a company with an unbroken track record of positive annual sales growth, Monster’s demand-side resilience positions it as a standout in the beverage industry. However, investors should note its cost-side cyclicality, as factors like aluminum prices and transportation costs can impact margins.
This event will be especially relevant to shareholders of rival Celsius Holdings (CELH) and MNST stakeholder Coca-Cola (KO).
Major Economic Events:
Besides Trump’s executive orders — Existing Home Sales and Consumer Sentiment highlight the week’s updates.
Monday (1/20): None Scheduled, Martin Luther King Jr. Day
Tuesday (1/21): None Scheduled
Wednesday (1/22): U.S. Leading Economic Indicators
Thursday (1/23): Initial Jobless Claims
Friday (1/24): Consumer Sentiment (Final), Existing Home Sales, S&P Flash Manufacturing PMI, S&P Flash Services PMI
What We’re Watching:
Existing Home Sales
U.S. existing home sales jumped +4.8% in November 2024, reaching a seasonally adjusted annualized rate of 4.15 million — the highest in eight months and passing market expectations of 4.07 million.
This marked a large increase from 3.96 million in October — signaling strengthened momentum in the housing market, despite still elevated mortgage rates. We’ll find out this week if that report was more of a “one-off” or a true trend change.
“Home sales momentum is building. More buyers have entered the market as the economy continues to add jobs, housing inventory grows compared to a year ago, and consumers get used to a new normal of mortgage rates between 6% and 7%.”
Michigan Consumer Sentiment
Source: University of Michigan
The University of Michigan's Consumer Sentiment Index fell to 73.2 in January 2025 – down from December’s eight-month high of 74 and missing forecasts of 73.8. The decline reflects a sharp drop in the expectations subindex to 70.2 from 73.3, while the current conditions gauge ticked up slightly. This divergence highlights easing concerns over current living costs but growing anxiety about the future.
Inflation fears are front and center with year-ahead inflation expectations surging to 3.3% – an eight-month high from 2.8% in December. Long-run inflation expectations also climbed to 3.3%.
“January’s divergence in views of the present and the future reflects easing concerns over the current cost of living this month, but surging worries over the future path of inflation. Overall, this month’s deterioration in the expectations index was seen across political affiliations, including declines of about -3% for Independents and -1.5% for Republicans.”
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Cover image source: TheStreet
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