Stocks Boom on Trump Inauguration, 3M, Charles Schwab Earnings; Netflix Earnings Blow Away Estimates; UAL, COF In Play

With markets closed Monday for Martin Luther King Jr. Day, stock pickers were able to get an in-depth look at the inauguration and first day of Donald Trump's presidency, which included signing of fifty executive orders, various firings and the beginning of mass arrests and eventual deportations of illegal aliens in the U.S.

Having a full day to digest the proceedings in the nation's capital provided Wall Street with a solid understanding of what Trump dubbed, "America's Golden Age", and took little time to capitalize on the good vibes coming out of Washington, D.C.

Helping fuel the rally were earnings reports from a number of important companies, key among them 3M (MMM), which posted adjusted earnings per share of $1.68, beating estimates. The company also announced that it's restructuring plan was nearly complete. Shares were up more than four percent on the day, hitting its highest level in three years.

Capital One (COF) showed profits rising by 55% in the fourth quarter from a year ago. Their interest income growing as more consumers use credit cards issued by the company at nose-bleed interest rates, some as high as 30% or more.

Stock brokerage Charles Schwab (SCHW) posted better-than-expected results on higher asset management fees and a surge in trading volume. The company's stock was up sharply from Friday's close.

Adding to the excitement Wednesday morning were spectacular earnings reports from Netflix (NFLX), which announced Tuesday morning EPS of $4.27 for the fourth quarter, above consensus expectations of $4.18 and more than double the $2.11 EPS figure it reported in the year-ago period. Shares of the streaming service are up 14% in pre-market trading.

United Airlines (UAL) and CapitalOne (COF) also posted strong fourth quarter and full year results prior to the open, sending stock futures skyward. Dow futures are trending up about 160 points, NASDAQ futures sporting a gain of more than 200 points. S&P futures are ahead by 32 points. The S&P is at its highest level in a month, closing in on its all-time record close of 6,090.27 from December 6, 2024.

Bitcoin hit above $108,000 on Tuesday before pulling back to above $104,000. Gold is approaching its own record level, hovering around $2,770. Silver continues a laggard, though it is trending above $31/ounce. WTI crude oil ($75.69) got smacked down on Trump's enthusiastic massaging to "Drill, baby, drill."

Golden Age, indeed.

At the Close, Tuesday, January 21, 2025:
Dow: 44,025.81, +537.98 (+1.24%)
NASDAQ: 19,756.78, +126.58 (+0.64%)
S&P 500: 6,049.24, +52.58 (+0.88%)
NYSE Composite: 19,893.59, +286.22 (+1.46%)