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📈 Rise of the Anti-FOMO Portfolio
Boeing takes $3B hit in Q4, Twilio stock surges, EA posts largest daily percentage drop since 2008, Samsung reveals game-changer wearable tech, Sleeper sectors offering solid value plays beyond Mag 7
Good morning.
⚡ The Fast Five → Boeing takes $3B hit in Q4, Twilio stock surges, EA posts largest daily percentage drop since 2008, Samsung reveals game-changer wearable tech, Sleeper sectors offering solid value plays beyond Mag 7
🔎 Market Trends → S&P 500 notches closing record with focus on Trump comments, earnings; US Futures Steady After S&P 500 Hits Record High
And now…
⏱️ Your 5-minute briefing for Friday, January 24, 2025:
MARKET BRIEF
Before the Open

As of market close 01/23/2025.
Pre-Market
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Fear & Greed

Markets in Review
S&P 500 Hits Record High as Trump Targets Oil Prices
The S&P 500 rose 0.5% to a record 6,118.7, while the Dow jumped 0.9% to 44,565.1. The Nasdaq edged up 0.2% to 20,053.7, with all sectors posting gains, led by health care and industrials.
The Big Picture:
The S&P 500 climbed to an all-time high as investors balanced strong corporate earnings with geopolitical and economic signals. President Donald Trump’s comments targeting lower oil prices and interest rates added intrigue to the trading session.
Trump’s remarks at the World Economic Forum in Davos suggested that reducing crude costs could accelerate an end to the Russia-Ukraine conflict, while also urging central banks to cut interest rates globally. Oil prices fell in response, adding a new layer to the inflation narrative.
West Texas Intermediate crude oil fell 1.6% to $74.22/barrel, while gold declined 0.4% to $2,760.80/oz. Silver dropped 1.9%.
Market Movers:
GE Aerospace (GE): Shares surged +6.6% after delivering a robust fourth-quarter earnings beat, driven by strong aerospace demand.
Union Pacific (UNP): Climbed +5.2% as earnings growth outpaced expectations, despite flat freight revenue.
Electronic Arts (EA): Dropped -16.7%, the steepest decline on the S&P 500, after missing fiscal Q3 revenue forecasts.
Leidos (LDOS): Fell -7.6% despite securing a TSA follow-on contract, as investors questioned margin pressures.
What They’re Saying:
"Lower oil prices could alleviate global inflationary pressures, potentially enabling central banks to ease monetary policy sooner," noted Stifel in a client note. "Trump’s rhetoric could catalyze a broader energy market shift in 2025."
WHAT WE’RE WATCHING
Events
Today: S&P Global - Flash Manufacturing PMI - 9:45am
Why You Should Care: It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy.
Today: S&P Global - Flash Services PMI - 9:45am
Why You Should Care: It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy.
Earnings Reports
Today: American Express, Verizon, HCA Healthcare, NextEra Energy, Ericsson, Oppenheimer & Co.
Monday: AT&T, Nucor, PotlatchDeltic, Graco Inc., Alexandria Real Estate Equities, SoFi
MARKET BRIEF
Leading News
Beyond the Magnificent Seven: Smart Money's Quiet Rotation into Value Plays
Why it matters:
As Trump 2.0 kicks off with stocks at nosebleed valuations, savvy investors are eyeing overlooked sectors that could be the next market darlings. The S&P 500's P/E ratio above 22 signals it's time to get creative with your portfolio.
Zoom Out:
The market's love affair with Big Tech has pushed valuations to levels we haven't seen since the pandemic era. But beneath the surface, a stealth rotation is brewing.
Think of it as the market's version of finding that hidden coffee shop that serves better brew than Starbucks – at half the price.
Key Insights:
Follow the smart money: Financials ($XLF) are trading at a modest 16.8x forward earnings – practically a bargain in today's frothy market. JPMorgan's Jamie Dimon may be wringing his hands about overall valuations, but his own sector could be the sleeper hit of 2025.
The industrial renaissance: With China stimulus in the pipeline and Trump's infrastructure promises, industrials are poised for double-digit earnings growth. They're expensive at 23x earnings, but still cheaper than tech's eye-watering 29.4x multiple.
The AI power play: Here's an contrarian thought – utilities (trading at 17.7x earnings) could be the backdoor AI trade nobody's talking about. That $500B Stargate venture is going to need a lot of electricity.
Market Pulse:
"Megacap tech stocks may continue to work... but it must be underpinned by earnings growth coming to fruition, rather than expectations that the market's multiple is going to continue to expand." - Mark Luschini, Janney Montgomery Scott
Bull’s Take:
While the Magnificent Seven ($MAGS) might still have gas in the tank, 2025's biggest winners could be hiding in plain sight. Smart investors are quietly building positions in quality companies trading at reasonable valuations – think banks, industrial powerhouses, and yes, even utilities. The key is finding growth at a reasonable price, not just growth at any price.
Headlines
Purdue Pharma and Sackler family to pay $7.4 billion in settlement to OxyContin lawsuits (link)
Boeing took nearly $3-billion hit in Q4 related to strike, layoffs and troubled government programs (link)
EA’s stock posts biggest daily percentage drop since 2008, as analysts parse key franchise’s troubles (link)
Samsung Reveals ‘Game-Changer’ Blood Glucose Monitoring To Outdo Apple Watch (link)
Twilio stock surges after company issues optimistic 2027 profit forecast (link)
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