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Tuesday, January 21

Some of the largest macro moves in the market today: Bitcoin +2.3%. Oil (WTI) -1.5%. USD/CNH +0.3%. Noteworthy US mega-cap moves today: Apple Inc (AAPL) -1.9%. Alphabet Inc (GOOGL) +1.4%. Alphabet Inc (GOOG) +1.4%. 

The inauguration of President Donald Trump has significantly influenced market sentiment, particularly with his statements regarding the imposition of 25% tariffs on imports from Canada and Mexico starting February 1. This news led to an immediate depreciation in both the Canadian Dollar (CAD) and Mexican Peso (MXN), as traders reacted to potential inflationary pressures that could arise from these tariff measures.

In economic data releases, Canada's annual inflation rate eased slightly to 1.8% for December, remaining within the Bank of Canada's target range but raising expectations for further interest rate cuts this year. Meanwhile, UK employment figures showed a rise in unemployment rates alongside strong wage growth; however, job losses were noted which may impact future monetary policy decisions by the Bank of England.

Additionally, U.S. industrial production rose unexpectedly by 0.9% in December while housing starts surged dramatically by over 15%, indicating robust activity despite concerns surrounding Trump's trade policies and their implications for broader economic stability moving forward.

Bitcoin (BTC/USD) [+2.3%]
Bitcoin's price has increased amid market fluctuations influenced by President Donald Trump's announcement of 25% tariffs on Canada and Mexico. This development has heightened demand for safe-haven assets like Bitcoin, as uncertainty surrounds trade relations. Initial declines in the cryptocurrency market were noted following Trump's inauguration speech, which did not mention cryptocurrencies, but prices recovered later. Social media discussions reflect a polarized atmosphere regarding Trump's presidency, with mixed sentiments about Bitcoin's future. Speculation persists about whether Bitcoin will drop below $100K again, while some users highlight potential institutional adoption growth in 2025, as noted by WisdomTree. Concerns remain that Trump's policies may neglect cryptocurrencies, possibly impacting Bitcoin's pricing negatively. The market has experienced volatility recently, attributed to the implications of Trump's return to office on trade and currency dynamics.

USD/CNH (USD/CNH) [+0.3%]
The USD/CNH has increased, reflecting a daily return driven by President Donald Trump's announcement of a 25% tariff on imports from Canada and Mexico. This move is expected to bolster the US Dollar amid heightened trade concerns in North America. The tariff plan has reversed prior dollar losses linked to disappointing inflation figures, prompting a reassessment of potential Federal Reserve interest rate cuts. Additionally, the People's Bank of China raised the CNY Central Parity Rate significantly, surpassing market expectations. Concurrently, fluctuations in commodity currencies, particularly the Canadian Dollar, have added volatility to USD/CNH trading. Social media discussions have highlighted Trump's recent actions and their implications for the USD, including reinstating Cuba on the State Sponsors of Terrorism List and calls for universal tariffs. The USD/CAD has also seen an increase, suggesting broader market movements that may influence USD/CNH.

SCHW | +5.3% | +7.7B
Charles Schwab Corp | Investment Banking & Brokerage
Charles Schwab Corp reported its fourth-quarter results, revealing an adjusted earnings per share (EPS) of 1.01, surpassing the consensus estimate of 0.91. The net income reached 1.84 billion, a significant increase from 1.045 billion in the previous year. Net revenue for the quarter was 5.33 billion, exceeding expectations of 5.19 billion and reflecting a robust year-over-year growth of 19.5%. The company noted total net new assets of 108.4 billion for the quarter, with an annualized growth rate of 4.3%. Client engagement remained strong, with 1.12 million new brokerage accounts opened. Additionally, total client assets were reported at 10.10 trillion, slightly below the estimate of 10.17 trillion, while net interest revenue was 2.53 billion, surpassing expectations of 2.43 billion. Bank deposits stood at 259.1 billion, above the estimated 250.9 billion.

MMM | +4.3%| +3.5B
3M Co | Industrial Conglomerates
3M Co reported its fourth-quarter results, announcing an adjusted earnings per share (EPS) of 1.68, slightly surpassing the consensus estimate of 1.66. Quarterly sales reached 5.808 billion, exceeding expectations of 5.781 billion, though this reflects a significant decline of 24.5% compared to the same period last year. The company also provided guidance for 2025, projecting adjusted total sales growth of 0.5% to 1.5% and adjusted EPS between 7.60 and 7.90. Following the earnings announcement, the stock experienced a notable increase in pre-market trading, reflecting positive market sentiment toward the favorable earnings report despite the year-over-year revenue decline. The CEO emphasized a return to positive organic revenue growth for the full year, further supporting the positive reaction in the stock price.

RKLB | +7.8% | +987.6M
Rocket Lab USA Inc | Aerospace & Defense
Rocket Lab USA Inc's price target has been raised from 22 to 35 by Citi, which maintains a Buy rating. This adjustment was reported approximately 24 hours ago and is part of a Q4 earnings preview for the aerospace and defense sector. Citi anticipates positive commentary from commercial aftermarket suppliers in Q4, suggesting that recent selloffs in defense stocks may be overdone. Additionally, social media discussions noted that Rocket Lab was gapping higher by 4% in overnight trading, attributed to comments made during Trump's inauguration speech regarding plans to plant "stars and stripes on planet Mars." Conversations also touched on Rocket Lab's valuation, with some users indicating that while it appears richly valued now, it could look cheaper at a market cap of 12 billion in one to two years.

DHI | +3.4%| +1.7B
DR Horton Inc | Homebuilding
D.R. Horton reported strong fiscal Q1 results, with GAAP EPS of 2.61, surpassing the estimate of 2.44 by nearly 7%. Revenue reached 7.613 billion, exceeding expectations of 7.082 billion by approximately 7.5%. The company maintained a pretax profit margin of 14.6%, and net sales order value stood at 6.7 billion. Despite a decline in net income from 2.82 per share a year earlier, the results were positively received as they beat analyst forecasts. D.R. Horton reaffirmed its fiscal 2025 revenue guidance of 36 billion to 37.5 billion, closely aligning with market estimates. Following these announcements, the stock experienced significant pre-market activity, rising over 5%. Social media discussions highlighted the strong earnings report and the projected closure of between 90,000 and 92,000 homes by homebuilding operations, despite some concerns regarding demand lagging.

EDU | -13.1% | -11.5B
New Oriental Education & Technology Group Inc | Education Services
New Oriental Education & Technology Group Inc reported its Q2 results, revealing revenue of 1.04 billion, surpassing the FactSet estimate of 1.01 billion and reflecting a significant increase from the previous year. However, adjusted earnings per share were 0.22, missing the consensus estimate of 0.30 and marking a decline from the same quarter last year. The company projected Q3 revenue between 1.01 billion and 1.03 billion. Following the earnings report, shares of New Oriental Education dropped significantly, moving down by approximately 13.1% shortly after the announcement.

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