Good morning investors! Stocks fell yesterday due to the growing Greenland issue.
Today we cover:
No tariff ruling?
Netflix reports
United Airlines impresses
📊 Economy and News
Supreme Court Delays Ruling on Trump’s Sweeping Tariffs
The U.S. Supreme Court did not issue an expected ruling yesterday, regarding the legality of President Donald Trump’s broad tariffs, leaving markets and policymakers in continued uncertainty.
The tariffs, imposed under the 1977 International Emergency Economic Powers Act (IEEPA), are a cornerstone of Trump’s economic and negotiation strategy. Despite media speculation of a 10 a.m. ET announcement, no decision appeared on the Court’s docket.
Justices showed skepticism during late-2025 hearings, leading markets to favor a ruling against the administration. Polymarket currently gives only a 36% chance of the Court upholding the tariffs — up slightly from earlier lows.
U.S. Trade Representative Jamieson Greer stated that new duties are ready to be implemented “the next day” if the current ones are struck down.
The case carries wider implications for Trump’s tariff-heavy approach, recently used to pressure European nations over U.S. acquisition of Greenland — a move EU leaders have called “blackmail” and are considering counter-measures against.
Global hits:
India’s December infrastructure output grows 3.7% y/y.
Japan’s bond market experiences chaotic selloff amid fiscal concerns.
India’s insurance premium growth to outpace China, US through 2030.
Reminder: Global growth expectations reach highest since 2021.
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📈 Stocks
S&P 500 6,796.86 (+0.42%)(-2.07%)
DJIA 48,488.59 (+0.14%)(-1.76%)
NASDAQ 22,954.32 (+0.57%)(2.39%)
BRENT CRUDE 64.14 (-1.23%)
* Prices as of Jan 21st, 12:20 AM UTC
Netflix Report Fails to Impress Investors
Netflix reported Q4 2025 results that slightly exceeded Wall Street expectations, reaching a milestone of 325 million global paid subscribers — the first update since stopping quarterly reports a year ago.
Key financial highlights (vs. LSEG estimates):
EPS: $0.56 (beat $0.55 expected)
Revenue: $12.05 billion (beat $11.97 billion expected), up 18% year-over-year
Full-year 2025 ad revenue surged more than 2.5x to over $1.5 billion. Netflix forecasts 2026 revenue at $50.7–$51.7 billion, driven by membership growth, pricing adjustments, and roughly doubling ad revenue again.
Amid intense competition, co-CEOs Ted Sarandos and Greg Peters emphasized improving content variety and quality. The company amended its Warner Bros. Discovery deal to all-cash ($27.75 per share, ~$72 billion equity value) to acquire the film studio and HBO Max, pausing share buybacks to fund it. Leaders expressed confidence in regulatory approval, arguing the deal is pro-consumer and preserves jobs.
Shares fell over 4% in after-hours trading, reflecting market concerns over growth and the acquisition amid rival bids from Paramount Skydance.
United Airlines flies higher: United Airlines reported Q4 2025 results that met or beat expectations, fueled by robust premium and basic-economy sales despite challenges like a government shutdown.
Key Q4 highlights (vs. LSEG estimates):
Adjusted EPS: $3.10 (beat $2.94 expected)
Revenue: $15.4 billion (met $15.4 billion expected) — record quarterly high
Full-year 2025 adjusted EPS rose 8% to $10.20, with record annual revenue of $59.1 billion.
Premium revenue grew 9% in Q4 and 11% for the year; basic-economy sales up 7% in Q4.
United forecasts 2026 adjusted EPS of $12–$14 (in line with analyst expectations ~$13), signaling potential record profits.
Surprising: Greenland should be prepared for ‘everything,’ prime minister says, not ruling out U.S. military action.
💵 Personal Finance
Trump Administration Pauses Student Loan Collections for Defaulted Borrowers
The Trump administration announced a temporary delay on forced collections for defaulted federal student loans, including wage garnishment and tax refund seizures. This reverses earlier plans to resume these actions in January 2026 and allows time to implement repayment reforms from the "One Big Beautiful Bill Act."
Around 9 million borrowers are in default on over $1.6 trillion in outstanding student debt. The pause's duration is unclear, so experts urge quick action.
What borrowers should do now:
File taxes immediately: The IRS begins accepting 2026 returns on Jan. 26; electronic filing typically yields refunds in 21 days, potentially before collections resume.
Get out of default quickly: Consolidate loans (fastest option, often 4 weeks) or rehabilitate by making 9 affordable payments over 10 months. Note: Consolidation may reset forgiveness progress or limit future plan options post-June 2026.
Enroll in an affordable plan: Apply for income-driven repayment (IDR) at StudentAid.gov, such as Income-Based Repayment (IBR). A new Repayment Assistance Plan (RAP) starts July 1, 2026, with longer terms but potentially lower payments. Deferments are available for hardship.
This reprieve protects wages (up to 15% garnishable) and benefits but won't last indefinitely—act soon to avoid future seizures.
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