💵 More earnings (GM, Starbucks, etc.)

and stocks hitting new highs

Good morning investors! The market rallied yesterday and today’s going to be very exciting with eyes on big names like Microsoft and Meta. Plus, Fed’s decision is expected and we don’t see a rate cut.

Today we cover:

  • GM beats but falls

  • More earnings (Starbucks, JetBlue, etc.)

  • Filing taxes

This is from yesterday’s poll. We think people are divided:

📊 Economy and News 

Stocks are hitting new highs

After a dull day, both big and small names rallied yesterday with some hitting new highs. META, set to announce earnings today, almost hit a new all-time high before pulling back slightly.

Another name that did well is Sea Limited, which surged to a 52-week high, reaching a price level of $119.86. Surprising investors, Wix.com has also soared to 52-week high, touching $246.85.

Similarly, fashion brand Polo Ralph Lauren did well, reaching a new all-time high of $257.59. Adding to the list is Bill.com, surging to a 52-week high, reaching a price level of $97.89.

Analysts think that some of these names have a lot more potential and we may see them create new records this year.

Global hits:

Exciting: Norway is set to become the first country to fully transition to electric vehicles. Furthermore, Google Maps will change the Gulf of Mexico to the Gulf of America. Also, Elon Musk’s X is entering the into financial services sector with Visa deal.

Which of these do you expect to rally after earnings today?

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📈 Stocks

S&P 500 6,067.70 (+0.92%)
DJIA 44,850.35 (+0.31%)
NASDAQ 19,733.59 (+2.03%)
BRENT CRUDE 77.63 (+0.53%)
* Prices as of Jan 29th, 12:20 AM UTC

GM falls after a beat

General Motors' stock dropped over 10%, marking its worst day since 2020, despite beating Wall Street’s fourth-quarter earnings expectations. The company forecast strong results for 2025, but analysts raised concerns over potential changes under the Trump administration, including tariffs on vehicle production and policy shifts affecting electric vehicle sales.

Shares fell roughly 9% despite meeting expectations. Analysts pointed to a lack of investor enthusiasm for the U.S. auto industry amid slower electric vehicle adoption, autonomous vehicle delays, and regulatory uncertainty.

GM expects a solid 2025, with net income guidance of $11.2 billion to $12.5 billion and adjusted EBIT of $13.7 billion to $15.7 billion. The company’s 2024 adjusted EBIT of $14.9 billion was a record, with net income of $6 billion.

For Q4, GM reported revenue of $47.7 billion, up 11% year-over-year, beating estimates. However, GM posted a loss of $2.96 billion due to special charges, including $4 billion for restructuring in China and $500 million related to ending its Cruise robotaxi business. Excluding these, GM earned $1.92 per share, surpassing the $1.89 estimate.

Boeing hopeful: Boeing CEO Kelly Ortberg said the company is making progress on its recovery, focusing on core businesses and stabilizing production, despite posting its sixth consecutive annual loss(an adjusted earnings loss of $-5.90, missing consensus by $2.67). Ortberg expects 737 Max deliveries to reach the "upper 30s" this month, up from 17 in December. He also anticipates turning cash flow positive in the second half of 2025 after burning through over $14 billion in 2024.

Boeing shares rose more than 6% after Ortberg's comments before falling back.

Also, Boeing is working with Elon Musk to deliver Air Force One replacements sooner.

More earnings:

☕️ Starbucks reported its fourth consecutive quarter of falling same-store sales but exceeded Wall Street’s earnings and revenue forecasts. Shares rose 3% in extended trading.

  • Earnings per share: 69 cents vs. 67 cents expected

  • Revenue: $9.4 billion vs. $9.31 billion expected

Net income dropped to $780.8 million, or 69 cents per share, from $1.02 billion a year ago, while revenue remained flat at $9.4 billion.

Global same-store sales fell 4%, with U.S. sales down 4% due to an 8% drop in traffic. The company’s in trouble and it needs to do more.

💼 LVMH, the world’s largest luxury company, reported better-than-expected full-year sales for 2024, hinting at a rebound in the high-end sector.

The owner of Louis Vuitton, Moët & Chandon, and Hennessy posted revenues of €84.68 billion ($88.27 billion), surpassing analyst forecasts of €84.38 billion. Organic growth stood at 1% compared to the previous year.

Fourth-quarter sales also beat expectations, driven by strong demand in Europe, the U.S., and Japan, despite continued weakness in the wider Asia region.

✈️ JetBlue Airways' shares dropped -25% as the airline's financial forecast fell short of investor expectations. The carrier projected a 7% increase in unit costs, excluding fuel, for 2025, with a first-quarter rise of up to 10% year-over-year. Revenue for Q1 is expected to range from a 0.5% decline to a 3.5% increase, lagging behind stronger forecasts from competitors like Delta and United.

For 2025, JetBlue anticipates revenue growth of 3–6% with flat capacity. The airline is cutting costs by eliminating unprofitable routes, deferring aircraft purchases, and adding higher-priced seating. It has also offered senior pilots early retirement packages.

JetBlue’s growth has been hampered by two antitrust rulings: the 2024 block of its Spirit Airlines acquisition and the 2023 end of its regional partnership with American Airlines.

Exciting: Small investors bought the dip in Nvidia by a record amount Monday, putting more than $562 into the company, which bounced back yesterday jumping about 7%. Also, FDA has approved Novo Nordisk’s Ozempic to treat chronic kidney disease in those with diabetes, expanding its use.

Several more smaller companies reported earnings yesterday:

  • Chubb Limited reported better-than-expected fourth quarter results, driven by strong underwriting performance and higher investment income. Shares were trading marginally higher, up 0.3%, aftermarket Tuesday.

  • BXP Inc reported fourth quarter EPS of $-1.45, $1.93 worse than the analyst estimate of $0.48. Revenue for the quarter came in at $858.6M versus the consensus estimate of $836.85M. BXP Inc sees Q1 2025 EPS of $0.33-$0.35 versus the analyst consensus of $0.41.

  • Stryker Corp reported fourth-quarter earnings that beat Wall Street estimates, with earnings of $4.01 per share, ahead of analysts’ expectations of $3.87. Revenue rose to $6.4 billion, slightly ahead of the consensus estimate of $6.36 billion. For 2025, Stryker expects earnings of $13.45 to $13.70 per share, compared to the market's forecast of $13.47.

  • Nextracker Inc. shares surged 13.5% in after-hours trading on Tuesday after the solar tracker manufacturer reported third-quarter earnings that significantly exceeded analyst expectations and raised its full-year profit outlook.

  • Packaging America reported fourth quarter EPS of $2.47, $0.04 worse than the analyst estimate of $2.51. Revenue for the quarter came in at $2.15B versus the consensus estimate of $2.12B.

  • Logitech International reported better-than-expected third quarter results and raised its full-year guidance, sending shares up 1.2% in after-hours trading on Tuesday.

  • Axos Financial, Inc. reported better-than-expected earnings and revenue for its fiscal second quarter, sending shares up 1.9% in after-hours trading Tuesday.

  • Qorvo Inc shares jumped more than 18% in aftermarket trading after its third-quarter earnings beat Wall Street estimates.

💵 Personal Finance

Filing Deadlines and Extensions

The IRS filing and payment deadline for 2024 is April 15. However, there are circumstances where extensions may apply:

  • Disaster Areas: Residents and businesses in federally declared disaster areas often receive extensions for filing and paying taxes. For instance, those affected by Los Angeles wildfires have until October 15 to file and pay.

  • Six-Month Extension: Taxpayers unable to file by April 15 can request an automatic six-month extension. Remember, this only extends the filing deadline—not the payment deadline. Taxes owed must still be paid by April 15 to avoid penalties and interest.

You Can File for Free

The IRS has expanded its Direct File Program, now available in 25 states, allowing eligible taxpayers to file directly with the IRS for free. This program is typically available to filers with an adjusted gross income (AGI) of $84,000 or less.

Additionally, the IRS partners with private tax software firms through the Free File Program. Each partner has specific eligibility criteria, such as income thresholds, age, and state residency. Active-duty military personnel with an AGI of $84,000 or less also qualify for free tax preparation and filing.

Here’s a video on it:

We’ll talk more about taxes in tomorrow’s. issue, so stay tuned.

💰 Be a Better Investor

"Money is a terrible master but an excellent servant."

P.T. Barnum

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👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.