Market Awaits Leading Economic Indicators

Economic & Earnings CommentaryComing 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 BeatMid-level homebuilder D.R. Horton DHI 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.Zacks Rank #2 (Buy)-rated commercial investment services firm Charles Schwab SCHW 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 TuesdayAnalysts 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. 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, 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, 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.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report United Airlines Holdings Inc (UAL): Free Stock Analysis Report Netflix, Inc. (NFLX): Free Stock Analysis Report Capital One Financial Corporation (COF): Free Stock Analysis Report The Charles Schwab Corporation (SCHW): Free Stock Analysis Report D.R. Horton, Inc. (DHI): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks