Clorox to Acquire GOJO Industries, Owner of Purell January 22, 2026 Expands Clorox's Leadership in Health & Hygiene + 3 • Advances Portfolio Evolution to Strengthen Strategic Advantage: Expands Clorox's position in health & hygiene with a renowned and trusted brand in Purell® – expanding reach across B2B and retail channels • Capitalizes on Attractive Category Tailwinds: Provides exposure to sizeable and growing categories underpinned by favorable macro and consumer tailwinds where brand trust provides diff ...

Core Viewpoint - Procter & Gamble Company reported a modest earnings beat for the second quarter, with adjusted earnings per share of $1.88, surpassing the Street's estimate of $1.86, while revenue fell slightly short of expectations at $22.21 billion compared to the consensus forecast of $22.28 billion [1][2]. Financial Performance - The company lowered its fiscal 2026 GAAP earnings guidance, adjusting its EPS outlook to a range of $6.58 to $6.90 from a previous range of $6.71 to $7.09, which is below the consensus estimate of $6.91 [2]. - Bank of America Securities analyst Peter Galbo maintained a Buy rating on the stock with a price target of $170, citing margin strength as a key driver for the earnings upside [3]. - P&G reiterated its full-year organic sales and adjusted earnings outlook, suggesting an acceleration in the second half of the fiscal year [4]. Segment Performance - By segment, results were largely in line with expectations, with strength in Health Care offsetting weaker performance in Grooming. Skin Care exceeded forecasts due to a premium mix and pricing strength, particularly in Greater China [6]. Market Reaction - Procter & Gamble shares rose by 3.78% to $149.39 following the earnings report, although the market reaction is expected to remain muted due to the largely in-line quarter [6].

Core Insights - A 70-year-old investor with a $2.5 million portfolio primarily in blue-chip dividend stocks is questioning the safety of a conservative investment strategy [2][4] - The portfolio consists of five established companies: Johnson & Johnson, Microsoft, Procter & Gamble, Coca-Cola, and Verizon, which are known for their strong margins and consistent dividend payments [2][3] - The current weighted average yield of the portfolio is approximately 3.1%, generating an estimated annual income of around $77,500, which falls short of the $100,000 target based on a 4% withdrawal rate [4][5] Portfolio Analysis - The portfolio's holdings yield: Johnson & Johnson at 2.31%, Microsoft at 0.74%, Procter & Gamble at 2.85%, Coca-Cola at 2.86%, and Verizon at 6.92% [3][4] - Over the past decade, Microsoft has significantly outperformed with a return of 893%, while Verizon, despite its high yield, only gained 47% [5][6] - A portfolio equally weighted across these five stocks would have grown approximately 285% over 10 years, surpassing the S&P 500's gain of 253% [6][7] Risk and Growth Considerations - The investor's portfolio is 100% equities, which may seem aggressive; however, four of the five holdings have betas below 0.40, indicating lower volatility compared to the market [8] - Only Microsoft, with a beta of 1.07, provides significant growth exposure, while the other stocks are more defensive [8]

Market Overview - U.S. stocks traded higher, with the Dow Jones index gaining approximately 300 points, up 0.63% to 49,387.01, NASDAQ up 0.77% to 23,402.89, and S&P 500 up 0.51% to 6,910.38 [1] Sector Performance - Communication services shares increased by 1.7% on Thursday, while energy stocks dipped by 0.4% on Wednesday [2] Company News - Procter & Gamble Company (NYSE:PG) stock rose around 2% after reporting second-quarter adjusted earnings per share of $1.88, exceeding the analyst consensus estimate of $1.86, although quarterly sales of $22.208 billion fell short of the expected $22.282 billion [3] Commodity Market - Oil prices decreased by 1.9% to $59.47, while gold prices increased by 0.2% to $4,845.00. Silver rose by 1.7% to $94.215, and copper fell by 0.4% to $5.7450 [5] European Market - European shares were higher, with the eurozone's STOXX 600 gaining 1.4%, Spain's IBEX 35 Index up 1.5%, London's FTSE 100 up 0.7%, Germany's DAX up 1.5%, and France's CAC 40 up 1.5% [6] Asian Market - Asian markets closed higher, with Japan's Nikkei gaining 1.73%, Hong Kong's Hang Seng Index up 0.17%, China's Shanghai Composite up 0.14%, and India's BSE Sensex rising 0.49% [7] Notable Stock Movements - 60 Degrees Pharmaceuticals, Inc. (NASDAQ:SXTP) shares surged 297% to $7.94 following a partnership announcement. iOThree Limited (NASDAQ:IOTR) shares increased by 80% to $5.28, and Creative Media & Community Trust Corporation (NASDAQ:CMCT) shares rose 63% to $4.7750 after closing the sale of its lending division. Conversely, C3is Inc. (NASDAQ:CISS) shares dropped 37% to $0.0888 due to a reverse stock split announcement [9] Economic Indicators - U.S. initial jobless claims rose by 1,000 to 200,000 for the week ending Jan. 17. The U.S. economy grew at an annualized rate of 4.4% in the third quarter, surpassing the preliminary estimate of 4.3% and marking the strongest growth since the third quarter of 2023 [10]

Core Insights - The Nuveen ESG Large-Cap Value ETF (NULV) provides a solution for investors seeking quality companies without chasing momentum, focusing on established, dividend-paying businesses with ESG standards [2][3] Portfolio Functionality - NULV acts as a large-cap value anchor with an ESG overlay, relying on cash flows from mature companies in sectors like financials, consumer staples, and industrials, while maintaining diversification across 120+ holdings [3] - The fund has returned 54% over the past five years, underperforming the S&P 500's 79% gain but outperforming pure value benchmarks like IWD (68%) when considering ESG constraints [4] ESG-Value Dynamics - NULV's dual mandate of value investing and ESG criteria creates friction, as traditional value sectors like energy and materials are often excluded or underweighted, with NULV holding only 3.5% in energy compared to 8-10% in traditional value indexes [5] - The fund's significant 7.71% position in Alphabet raises concerns about concentrated single-stock risk, being four times larger than its next holding, alongside recent insider selling of $58 million [6][7]

Financial Data and Key Metrics Changes - The company reported organic sales growth of nearly 3%, with volume down one point and pricing up one point for the quarter [3][4] - Core earnings per share (EPS) were $1.88, in line with the prior year, while core gross margin decreased by 50 basis points and operating margin fell by 70 basis points compared to the previous year [5][6] - Adjusted free cash flow productivity was 88%, with $4.8 billion returned to shareholders, including $2.5 billion in dividends and $2.3 billion in share repurchases [6] Business Line Data and Key Metrics Changes - Seven out of ten product categories held or grew organic sales, with hair care growing mid-single digits and skin and personal care, personal health care, home care, and oral care each up low single digits [3][4] - Baby care and family care were down low singles, with family care specifically down approximately 10% due to base period dynamics [4] - Organic sales excluding family care were up 1% for the quarter [4] Market Data and Key Metrics Changes - Organic sales in North America were down 2%, with volume down three points, while European focus market organic sales were up 1% [4] - Greater China organic sales grew 3%, driven by Pampers and SK2, each up mid-teens or more [4] - Latin America organic sales were up 8%, with solid growth across Mexico, Brazil, and other smaller markets [5] Company Strategy and Development Direction - The company is focused on strong innovations supported by sharper consumer communication and retail execution, with a commitment to integrated growth strategies [11][12] - The strategy includes a long-term reinvention of P&G to adapt to changing consumer preferences and market dynamics, emphasizing the importance of brand building and consumer engagement [12][15] - The company aims to leverage superior data, technology, and capabilities to create competitive advantages and drive market growth [15][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in stronger growth in the second half of the fiscal year, despite a challenging start due to softer consumer markets and aggressive competition [22][25] - The company anticipates organic sales growth of in line to plus 4% for fiscal 2026, with expectations for improved performance in the U.S. as interventions take hold [22][23] - Management highlighted the need for continuous adaptation to the evolving retail landscape and consumer behavior, emphasizing the importance of innovation and execution quality [12][13] Other Important Information - The company is undergoing a restructuring program aimed at improving operational efficiency and focusing on higher growth segments [22][41] - There is an expectation of modestly higher interest expenses and a core effective tax rate in the range of 20%-21% for fiscal 2026 [23] Q&A Session Summary Question: What gives confidence in near-term acceleration? - Management noted strong growth outside the U.S., particularly in Latin America and Europe, as evidence of underlying acceleration [27][28] Question: What excites about the longer-term "reinvention" of P&G? - Management highlighted growth opportunities in changing media and retail landscapes, leveraging unique strengths and capabilities [32][33] Question: What are the most important priorities for driving better execution in the U.S.? - Key priorities include adjusting to the new media landscape, focusing on stronger core products, and enhancing consumer value across categories [46][49]

Group 1 - The fourth quarter earnings season is gaining momentum, with major financial institutions like Charles Schwab and regional banks such as Fifth Third set to report results, alongside Netflix and Intel, which are expected to draw significant attention [1][5] - An optimistic consensus is emerging, with 7% of S&P 500 companies having reported fourth quarter results as of January 16, and analysts projecting an 8.2% increase in earnings per share, marking the potential for the 10th consecutive quarter of annual earnings growth for the index [2] - Analysts had initially anticipated an 8.3% increase in earnings per share heading into the reporting period, a decrease from the previous quarter's 13.6% growth rate, but expectations have been raised recently, particularly for technology companies [3] Group 2 - The current earnings season is expected to test the improved stock market breadth observed at the beginning of 2026, with ongoing themes from 2025, such as artificial intelligence and economic policies, continuing to influence market dynamics [4] - In addition to Netflix and Intel, other notable companies reporting this week include United Airlines, 3M Company, D.R. Horton, Johnson & Johnson, GE Aerospace, Procter & Gamble, Abbott Laboratories, and Capital One [5]

Core Insights - 3M reported solid fourth-quarter results for 2025, with organic sales growth of 2.2%, an operating margin of 21.1%, and earnings per share of $1.83, alongside a free cash flow conversion exceeding 130% [4][2][6] Financial Performance - The adjusted operating margin increased by 140 basis points to 21.1%, with operating profit rising by $125 million, benefiting from $275 million in volume growth and productivity improvements, partially offset by $50 million in growth investments and $100 million in tariff impacts [2][4] - For the full year 2025, 3M achieved an organic growth of 2.1%, with an adjusted operating margin of 23.4% (up 200 basis points), adjusted EPS of $8.06 (up 10%), and free cash flow conversion slightly above 100% [7][9] Operational Metrics and Innovation - 3M launched 284 new products in 2025, a 68% increase from 2024, with expectations of 350 launches in 2026 [9][10] - Key operational metrics showed on-time in-full delivery (OTIF) above 90% and overall equipment effectiveness (OEE) at approximately 63%, both reflecting significant improvements [11] Segment Performance - The Safety and Industrial segment saw a 3.8% increase in organic sales, driven by growth in safety and industrial adhesives, while the Transportation and Electronics segment reported a 2.4% increase, supported by aerospace and electronics demand [13][14] - The Consumer segment experienced a decline of 2.2% in organic sales due to weaker consumer sentiment and retail traffic, although new products and increased advertising helped mitigate some of the decline [15] 2026 Guidance - Management anticipates approximately 3% organic sales growth for 2026, with adjusted operating margin expansion of 70-80 basis points and EPS projected between $8.50 and $8.70 [6][16] - The company plans to return about $2.5 billion to shareholders through gross share repurchases in 2026 [18] Transformation and Footprint Optimization - 3M ended 2025 with around 108 factories, with plans to consolidate this number to approximately 100 over time as part of its transformation strategy [20]

Core Insights - The average American household spent $78,535 in 2024, according to the Bureau of Labor Statistics, indicating a significant financial burden on households as inflation continues to rise despite a reported cooling to 2.7% annually [1][2] - Essential costs, particularly food prices, have increased, with specific items like coffee and beef seeing nearly 20% price hikes, further straining household budgets [1][2] Spending Breakdown - The BLS Consumer Expenditures report categorized household spending across 14 categories, highlighting that a large portion of the average budget is consumed by non-negotiable living expenses [2] - Major spending categories included housing at $26,266, transportation at $13,318, and food at $10,169, with additional costs for insurance, healthcare, and other essentials [6] Income Analysis - The mean personal income in 2024 was reported at $67,080, but this figure is skewed by high earners, while the median personal income was significantly lower at $45,140, providing a more accurate representation of typical earnings [3][4] - For full-time workers, the median weekly earnings were $1,214 in Q3 2025, translating to an annualized income of about $63,128, which helps explain the disparity between median personal income and median worker earnings [5]

Earnings Season Overview - The fourth quarter earnings season is gaining momentum, with major banks having reported results and upcoming reports from Charles Schwab and regional banks like Fifth Third [1] - Attention is expected to shift towards Netflix and Intel, which are headlining the earnings calendar [1] Earnings Growth Expectations - As of January 16, 7% of S&P 500 companies have reported fourth quarter results, with analysts estimating an 8.2% increase in earnings per share for the quarter, marking the 10th consecutive quarter of annual earnings growth for the index [2] - Analysts had initially expected an 8.3% jump in earnings per share, a decrease from the third quarter's 13.6% growth rate, but have since raised expectations, particularly for tech companies [3] Market Themes and Influences - The earnings season will test the improved stock market breadth observed at the start of 2026, with ongoing themes from 2025 such as artificial intelligence, tariff and economic policies from the Trump administration, and a K-shaped consumer economy continuing to influence market dynamics [4] Upcoming Earnings Reports - This week's earnings releases will include reports from United Airlines, 3M Company, D.R. Horton, Johnson & Johnson, GE Aerospace, Procter & Gamble, Abbott Laboratories, and Capital One, in addition to Netflix and Intel [5]