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Markets are generally taking the day off today digesting overextended situations. The bulls have rallied hard in recent sessions and we discussed in the Trading Lounge yesterday how a little digestion was in order. That is what is occurring today as we see what pattern forms next. A high-base or an orderly pullback would be ideal for the bulls as it would provide the next entry signal from a broad market perspective. We will continue to follow the technicals and will identify those patterns when they form in the Tackle Today video and in the Trader’s Lounge in depth.

Stocks in the News

• GE Aerospace (GE): Reported Q4 EPS of $1.32 ($1.03), beating expectations by 24.53%, with revenue of $10.81 billion, down 44.33% YoY. The company announced a $7 billion buyback and a 30% dividend increase. Shares gapped up to an all-time high and are up 6% on the day.
• Union Pacific (UNP): Reported Q4 EPS of $2.91 ($2.78), beating expectations by 3.93%, with revenue of $6.12 billion, down 0.62% YoY. Despite moving up 4% today, EPS handles of 2.69, 2.74, and 2.78 over the last three quarters highlight consistency but limited growth.
• Elevance Health (ELV): Reported Q4 EPS of $3.84 ($3.80), beating expectations by 1.05%, with revenue of $45.44 billion, up 6.55% YoY. The company raised its quarterly dividend by 5% to $1.71 per share. Shares are up 2.5% and attempting to reverse.
• Freeport-McMoRan (FCX): Reported Q4 EPS of $0.31 ($0.24), beating expectations by 24.00%, with revenue of $5.72 billion, down 3.13% YoY. Shares gapped down 5% and are attempting to hold support.
• Discover Financial Services (DFS): Reported Q4 EPS of $5.11 ($3.17), beating expectations by 61.20%, with revenue of $6.12 billion, up 9.33% YoY. Shares are up 2% and running hot following the strong report.
• Apple (AAPL): Goldman Sachs reiterated a buy rating on Apple but lowered its price target slightly to $280 (from $286). The firm cited post-holiday inventory digestion and seasonal weakness as reasons for the stock’s underperformance, down 11% year-to-date. Analysts are optimistic about new product launches later in 2025 and accelerating growth in 2026.
• Disney (DIS): Goldman Sachs maintained its buy rating on Disney and raised its price target to $139 (from $137), implying 27% upside. The firm expects an EPS beat in the upcoming earnings report, driven by strong performance in its movie and sports businesses. Disney shares are down more than 2% this year but remain a top pick for long-term growth.

Economic Reports

Unemployment claims came in line with expectations today as macro data continues to take a back seat to policy news coming out of the new administration and earnings season.

Next 24 Hours

Services and manufacturing PMI numbers will be released before 15 minutes after the market opens tomorrow. Before the market opens we will have had another wave of companies report earnings including notable names including Texas Instruments (TXN), CSX (CSX), Verizon (VZ), and American Express (AXP).

Have a fantastic Thursday!

S&P 500 (SPY)

S&P 500 taking a day off as it sets up for its next move. It takes time for those short-term moving averages to catch up and this “take a break days” are very normal after bigger moves.

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