In this environment, one potential scenario for investors involves a consistent push by the new administration toward lower corporate taxes and stronger infrastructure spending.
Shares of industrial conglomerate GE Aerospace (NYSEGE)
jumped 9.4% in the pre-market session after the company reported strong fourth-quarter results, which blew past analysts' revenue estimates amid improved demand for spare parts, commercial engines, and services. Growth accelerated during the quarter as orders rose by 46% compared to the previous year. The improved demand and pricing enabled the company to grow its cash flow and report earnings ahead of analysts' expectations.
Shares of infrastructure and defense services provider Parsons (NYSEPSN) fell 9.1% in the afternoon session after peer, CACI, reported fourth-quarter earnings results, with markets increasingly worried that new cost-cutting initiatives by the US government would affect Defense contracts.
Shares of electronic components and systems provider OSI Systems (NASDAQOSIS) jumped 15.2% in the afternoon session after the company reported a "beat and raise" quarter. Fourth-quarter results exceeded analysts' revenue and EPS expectations due to strong outperformance in its Security segment. Guidance was also strong as it raised its full-year revenue and EPS outlook. Overall, we think this was a solid "beat-and-raise" quarter with some key metrics above expectations.
XLK and XLE are trading in the final 5th wave of the wedge pattern, but there’s still space for slightly higher targets, ideally up to the upper wedge line before we will see a top formation this year.
Wells Fargo analyst Joe Quatrochi notes that Texas Instruments’ fourth-quarter results and guidance for the first quarter of fiscal year 2025 may not be the potential clearing event that the stock needs to rally.
United Airlines shares are trading lower on Thursday following American Airlines' latest earnings report, which issued weak guidance for the 2025 first-quarter and fiscal-year.
Innventure Inc (NASDAQINV) has an early-stage portfolio with high growth potential, according to Roth Capital. Analyst Chip Moore rates it a Buy with a $16 target.
BlackRock Inc (NYSEBLK) CEO Larry Fink is cautiously optimistic on the markets. He's optimistic on growth prospects, but warned Thursday that new inflationary pressures could negatively impact stocks.
