Group 1 - 3M shares surged after the company exceeded fourth-quarter profit and sales estimates, driven by higher demand across various product lines [1][4] - Adjusted earnings per share reached $1.68, surpassing analyst expectations, while revenue increased by 0.1% year-over-year to $6 billion, or $5.8 billion excluding "forever chemicals" [1][2] - The company attributed sales growth to broad-based demand in industrial sectors, strength in electronics and aerospace, and a strong holiday season, despite softer auto builds [2][4] Group 2 - Revenue in the Transportation & Electronics unit rose by 3.4% to $7.5 billion, supported by new product launches and market share gains [2] - The Safety & Industrial segment saw a revenue increase of 0.7% to $11 billion, driven by higher demand for roofing and industrial adhesive products [2] - The Consumer division experienced a revenue decline of 1.2% to $4.9 billion [2] Group 3 - 3M's restructuring program initiated in 2023, aimed at simplifying operations and improving margins, is reported to be largely complete [3][4] - Following the earnings release, 3M shares rose over 4% to $146.99, marking their highest level in three years [3]

Key TakeawaysCharles Schwab shares rose Tuesday after the financial services firm's earnings for the fourth quarter topped estimates.Revenue and profits surged from the same time a year ago as asset management fees set a quarterly record.Trading activity also rose, as the company said "client engagement surged" after the election. Shares of Charles Schwab (SCHW) rose Tuesday morning after the financial services company's fourth-quarter results beat analysts' expectations as trading activity rose and asset m ...

Core Insights - D.R. Horton reported better-than-expected fiscal 2025 first-quarter earnings, with EPS of $2.61 and revenue of $7.61 billion, despite a 1.5% year-over-year decline [1][4] - The company attributed increased buyer activity to incentives like mortgage rate buydowns, which helped address affordability challenges [2][4] - D.R. Horton plans to increase its stock buyback program to between $2.6 billion and $2.8 billion, up from a previous estimate of $2.4 billion [2][4] Financial Performance - Fiscal 2025 Q1 EPS was $2.61, exceeding analysts' expectations [1] - Revenue for the quarter was $7.61 billion, reflecting a 1.5% decline year-over-year [1] - The company's shares gained nearly 2% on the reporting day but remain slightly lower over the past year [3] Market Conditions - Executive Chair David Auld noted that demographics supporting housing demand remain favorable despite buyer affordability challenges [2] - The company is responding to high home prices by starting and selling more homes with smaller floor plans to meet demand [2]

Key TakeawaysGE Aerospace is set to report fourth-quarter results before markets open Thursday, and analysts are bullish on the maker of airplane engines and other parts.This will be the company's third full quarter since conglomerate General Electric split into three companies.GE Aerospace's stock fell following its last report. GE Aerospace (GE) is slated to report fourth-quarter results Thursday morning, and analysts are bullish on the maker of airplane engines and other parts. All nine analysts tracked ...

Investment Banking Performance - The largest US banks reported significant revenue and profit gains in Q4, driven by a resurgence in Wall Street dealmaking [2] - Investment banking revenue surged, with the largest banks reporting increases of 25% or more compared to the same quarter a year ago [2] - JPMorgan Chase and Bank of America led with investment banking revenue gains of 49% and 44% respectively [2] Market Reaction - Investors responded positively, with the SPDR S&P Bank ETF gaining over 8% last week [3] - Shares of major banks like JPMorgan, Wells Fargo, and Citigroup surged, recovering most of the decline since early December [3] Deals Driving Growth - Increased activity in securities underwriting and mergers and acquisitions fueled investment banking growth in Q4 [4] - US corporations issued $67.8 billion in bonds in December, nearly double the $35.7 billion issued in the same month a year earlier [6] - Global M&A deals totaled $3.4 trillion in 2024, up 15% from 2023 [6] Private Equity and Venture Capital - Private equity and venture capital firms hold approximately $3 trillion in uncommitted capital, which could further fuel an M&A rebound in 2025 [7] Net Interest Income and Investment Banking - Banks had enjoyed net interest income expansion due to the Fed's rate hikes over the past two years, but gains halted once the Fed started cutting rates [8][10] - Investment banking helped offset the decline in net interest income, contributing to overall revenue growth [8][10] JPMorgan's Performance - JPMorgan's net interest income fell marginally from Q3 and dropped 3% from Q4 2023 [9] - Overall revenue rose 10%, driven by a surge in investment banking and a 21% increase in asset management fees [9] - Quarterly profit increased 50% year over year, supported by revenue gains and a 7% decline in non-interest expenses [9] Industry Trends - Other large banks also saw similar trends, with investment banking business being the common driver of growth [11]

Core Insights - More than 18,000 Costco employees represented by the International Brotherhood of Teamsters union have voted to authorize a nationwide strike if a new labor agreement is not reached by the end of the month [2][5] - The union's vote passed with an overwhelming 85 percent margin, citing Costco's failure to negotiate constructively and provide a fair contract offer despite record-breaking profits [3][4] - Costco reported a profit of $7.4 billion for its fiscal year 2024, a 17% increase year-over-year, with revenues exceeding $254 billion [3][5] - Costco shares have surged over 35% in the past year, closing at $943.19, with potential catalysts for further growth including a possible stock split [5]

Earnings and Analyst Expectations - Johnson & Johnson (JNJ) is set to report earnings with analysts expecting revenue and profit growth compared to the same period last year [2] - Revenue is expected to rise to $22.51 billion from $21.4 billion, and net income to $4.4 billion from $4.05 billion in Q4 2023 [3] - Analysts are cautiously optimistic, with 6 out of 12 analysts giving a "buy" rating and 6 giving a "hold" rating, with an average price target of $175 implying 19% upside from Friday's close [2] Stock Performance - Johnson & Johnson shares trended lower from mid-October through the end of 2024, ending the year down nearly 8% [3] - The stock has gained close to 2% in January, closing at $147.03 as of Friday [3] Challenges and Risks - The company faces unresolved class action lawsuits related to its talc powder, with hearings scheduled early this year to determine the fate of a subsidiary's bankruptcy plan and a multi-billion dollar settlement [4] - An expiring patent for one of its popular drugs is expected to bring competition [4] - The company's AAA credit rating is at risk due to recent acquisitions, including the $14.6 billion deal to acquire Intra-Cellular Therapies (ITCI), which is expected to be financed with a combination of cash and debt [5] Strategic Moves - Johnson & Johnson made several acquisitions in 2024 and started 2025 with the acquisition of Intra-Cellular Therapies (ITCI) for $14.6 billion, expected to close this year [5]

Key TakeawaysProctor & Gamble is set to report fiscal second-quarter earnings before the opening bell Wednesday.A majority of analysts tracked by Visible Alpha have a "buy" or equivalent rating for the company's stock.Their consensus price target at about $179 would suggest 11% upside from Friday's closing price.  Proctor & Gamble (PG) is set to report fiscal second-quarter earnings before the opening bell Wednesday, with analysts calling for revenue and earnings growth. Of the 16 analysts covering the stoc ...

Market Overview - Major US equities indexes ended the week higher, with the S&P 500 advancing 1%, the Nasdaq gaining 1.5%, and the Dow rising 0.8% [1] - Optimism about potential Federal Reserve interest rate cuts in 2025 contributed to the market strength, supported by signs of easing inflation [1] Technology Sector - Intel shares surged 9.3%, marking the best performance in the S&P 500, amid reports of potential acquisition interest [2] - The company announced plans to transition its venture fund into a stand-alone entity, aiming to boost efficiency and maximize asset value [2] Energy Sector - SLB reported better-than-expected Q4 profits, increased its dividend, and accelerated share repurchases [3] - Despite cautious 2025 revenue growth outlook due to high oil supply levels, SLB shares jumped 6.1% following the strong earnings report [3] Financial Sector - Truist Financial shares gained 5.9% after exceeding quarterly sales and profit estimates [4] - Higher net interest income, non-interest income, and increased average deposit balances drove the strong results, despite a decline in average loan balances [4] Transportation Sector - J.B. Hunt Transport Services shares tumbled 7.4%, the steepest drop among S&P 500 stocks, after missing Q4 sales and profit expectations [5] - Revenue declines across all segments and slumping volumes weighed on performance, with the company focusing on margin repair amid industry challenges [5] Healthcare Sector - Eli Lilly shares fell 4.2% after cutting sales guidance and facing potential Medicare scrutiny for its weight-loss and diabetes treatments [6] - Novo Nordisk's US-listed ADRs sank 5.3% after its products were selected for potential Medicare price negotiations [6] Technology Sector (Software) - Fair Isaac Corp shares declined 3.5% despite earlier gains from a price target boost by Jefferies [7] - While business-to-business volume expectations increased, slower mortgage originations in the high interest rate environment remained a concern [7]

Key TakeawaysA TikTok ban could go into effect in the U.S. on Sunday, leaving other companies to compete for its users’ attention and almost $10 billion in ad revenue.Meta could be the biggest winner given its large user base said analysts at Morgan Stanley.Alphabet's YouTube, along with Snapchat, Pinterest, and Roblox are some of the top contenders to benefit from the ban. With a TikTok ban potentially taking effect in the U.S. on Sunday, analysts at Morgan Stanley said other social media platforms could c ...