President-elect Donald Trump became President Donald Trump on Friday, as over two hundred and fifty thousand onlookers crowded the national mall to witness the swearing in of the 45th President of the United States. The market has been increasingly volatile in anticipation of what lies ahead under the Trump administration. The Dow started the week on Tuesday just below the elusive 20,000 mark due to markets being closed on Martin Luther King Day (Monday). The industrial average continued it’s downtrend all week before finally seeing some relief on Friday when the President was sworn in.
Meanwhile, earnings season is getting underway with the release of some major player’s Q4 earnings. CSX corporation came in meeting earnings estimates at $0.49 a share. Financials were crushing estimates, with Morgan Stanley reporting $0.81 a share compared to a consensus estimate of $0.65. Citigroup beat analyst estimates, reporting $1.14 a share compared to the $1.12 consensus. Goldman also performed very well in Q4, reporting $5.08 a share relative to the $4.76 consensus. Netflix however, was the talk of the town, reporting $0.15 a share, well above consensus estimates of $0.13. Netflix shares trade into the $140 range after hours before returning to the high $130’s the following day, a gain of nearly $10 per share on growing user base.
Next week, the street will continue to look for big earnings reports coming in from MMM, JNJ, LMT, VZ, T, as well as others. We will see how the markets take to the newly elected President as well.