Stocks Jump As Trump Halts Greenland Tariffs; Eli Lilly, Google, Zions In Focus

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0:41Good afternoon, everyone. Welcome to Stock Market Today for Wednesday, January 21st. My name is Ken Shreve. On today's show, we're going to talk about a pretty crazy day for the stock market today. A lot of developments today out of Davos, Switzerland with President Trump on scene. Boy, we had another crazy day for data storage stocks. They outperformed again. We had gold stocks under some pressure, oil and gas stocks outperforming. Lots to talk about today before we get to all of that. Let me bring on our news editor, Ed Carson, who, as usual, has got three stocks to watch. Good afternoon, Ed.

1:22Good afternoon. I want to take a look at Eli Lilly, Google, and Zion's Bancor. Eli Lilly, Alphabet, and Zion Bancor. Very good. Let's get to those in just a little bit. Before we do that, let's take a look at the major stock indexes. We had broad-based gains again today for the stock market. Let's start by taking a look at the Russell 2000. And I'll start just by taking a look at the zero RUS here because the Russell 2000 outperformed again. Looks like it closed with a gain of 1.9 percent, close to 1.9 percent. That's going to be an all-time closing high for the small cap index. And then gains for the rest of the market looks like 1.2 percent across the board.

2:13Here's a look at the Dow Jones Industrial Average. It is stuck just a little bit below that 10-day moving average after a drop below the 21-day line on Tuesday. Here's a look at the S &P 500. That also ended with a gain of 1.2 % after a pretty sharp drop through that 50-day moving average yesterday. That was also up 1.2%. And then that NASDAQ composite, it did avoid a distribution day yesterday. Volume was lower than the prior session just by a little bit. but a bad break of the 50-day moving average yesterday, but a nice, well, almost a retake of the line. We did get a little bit of selling during the final hour of trading, but a decent gain for the NASDAQ composite today, up 1.2%, but a little bit of selling during the final hour and not quite a retaking of that 50-day moving average today.

3:09So not a bad day, and President Trump was in Davos, So, of course, there are some headlines coming out of Switzerland today. Yes. I mean, President Trump, before the Open, said he wasn't going to use force to acquire Greenland. And then later on, on Truth Social, he said, well, he's going to hold off on those European tariffs regarding Greenland, which is what triggered that sell-off yesterday. day. He said he's not going to do that, citing some kind of framework that apparently will involve missile defense and also mineral rights. It's not exactly clear what that'll be. Seems like it'll stop short of a Greenland takeover, but who knows?

3:48It is tricky for individual investors. If you bought on Friday, how are you supposed to deal with that? It's hard enough when the market is a news-driven market, but when it's a tweet-driven market, And it's like literally you can see these massive swings. I mean, if you own stocks from April or May, you know, this is all little minor gyrations ultimately. But if you bought, say, on Friday, some stocks, you know, like might have had to sell. And then you see them bounce back. So it just makes it a little tricky in that regard. But yeah, the NASDAQ is a laggard, still below the 50-day line, could easily retake that.

4:24S &P would be nice to get above the 21-day line. Everything else looks sort of pretty good. I mean, the Dow looks pretty good. Small caps look great. SP and QQQE, those are both close to record highs. You know, it's hard to, it's, you know, these are the equal rate ETFs and they're looking strong. So there's a lot of breadth. I mean, there's weakness in certain names. Some of the mega caps, software still looks terrible. I mean, software came off lows, but it looks terrible. So that's been an issue. But there's a lot of things. to buy. It just makes it a little tricky with new buys. This is one reason why we talk about sometimes making incremental buys.

5:03Because if you went from like, went crazy, I'm not invested, and I'm going fully invested, and you did that on a Friday, you might have seen, depending on how aggressive you were, you could have seen 2%, 4%, 6 % losses. And that's hard to take. So do it incremental. Yeah. Well, it's always, I'd be like looking at RSP because, you know, you have the S &P 500, that bad break of the S &P 500, bad break of the 50-day moving average. yesterday. And again, it was a good day. This buying in the stock market today happened around 2.30 p.m. Eastern time. But again, during the final hour of trading today, we were reminded that there are still some sellers around here because the S &P 500, it looked like it was going to be a nice retaking of the 50-day moving average.

5:50And it was. I mean, the S &P 500 did manage to close up near its high. But at least for the NASDAQ composite, it was in tech land anyway. Well, a slightly different story. The NASDAQ closed a little bit further off its high. But when you look at the average stock in the market today, very nice close for RSP. This is the equal weighted version of the S &P 500. And then QQQE definitely looks a little better than the NASDAQ 100 at this point, holding comfortably above its 50-day moving average and sitting right at its 10-day moving average here. You know, the average stock still looking OK in this market.

6:32Mentioned that, you know, energy stocks outperformed today. You can see XLE here has been a nice little been in a nice little uptrend after moving above that 50 day moving average near 45. A little over two weeks ago, it looks like. Saw some gold stocks today under some selling pressure. GLD was up 1.4 % today. We saw leaderboard stock KGC did reverse lower today. It ended lower by 3.4 % after a nice strong move in recent days here. So we did want to take a look at financials, Ed, today. Nice move for regional banks today. KRE, look at that move for the SPDR S &P regional banking ETF. That was up 4.7 % today.

7:31This was almost a breakout today for KRE. That looks great. And honestly, I think regional banks, you never know when something's going to happen. They tend to move together, but you never know when bad news will hit one of them. And so there's a lot of argument to say, if you want to buy regional banks, that going with an ETF would work. We're going to look at another one, one of the members of KRE, doing it right after earnings is a good way to do it too. But yeah, this was really strong. These were laggards. You can see how it sort of lagged and there's been weakness for a while. I mean, some of the strength in the banks has been, and capital markets and M &A and stuff.

8:08But this is like, this is lending. This is, you know, and that's also a positive sign about the economy. So nice to see this move. Yeah, we were talking about that big two-day move for the 10-year treasury yield. Big move on Friday. Another big move on Tuesday. Yesterday, that was under, you know, quite a bit of pressure today. Did reverse lower. It looks like it was only down about four basis points or so. down to about 4.25%. Let's take a look at some individual stuff. I just want to make one point. Is this going to be a new floor kind of thing? Or is the 200-day line going to be a floor? Or is that going to fall back below the 200-day line and back into that area around 4.1, 4.2?

8:52So it'll be interesting to see what happens here. It was nice to see it come down, but we're making some higher highs. Again, I don't want to make too much of it. It was nice to see the flow back into U.S. assets today after a pretty ugly day yesterday. Absolutely. So that 200-day moving average for that 10-year yield, right around about 4.23%. So we'll see if it will be a floor or not for that 10-year treasury yield. Good point there. My day kicks off with a refreshing Celsius energy drink, then straight to the gym. Pre-K pickup, back home to meal prep. Time for my fire station shift. One more Celsius, got to keep the lights on.

9:31When the three alarm hits, I'm ready. Celsius. Live. Fit. Go. Grab a cold, refreshing Celsius at your local retailer or locate now at Celsius.com. Eli Lilly has come under some selling pressure, but Lilly did make a nice bounce today. Notice that up 3.7 % today. You can see last week it broke through the 50-day moving average with a little bit of volume, but a nice move for Lilly today up 3.7%. Yeah, I didn't see really any news. It's probably just investors and analysts reevaluating. I mean, there was news like strong sales of the Novartis oral drug for their oral weight loss drug. Lilly's won't be coming until at least April, but eventually it'll come.

10:22And, you know, it seems like in the long run, Eli Lilly will do well. Again, that's just how the market seems to be taking it now. The rebound over the 50-day line, the 21-day line, you could argue a very steep trend line that is breaking. You know, if you wanted to take an entry here, I think you could have. You know, I still think it's a little awkward now because there's a breakout that sort of failed from basically 11-12. But I think you could still use that. If you also have another way to do it, it wouldn't be too far up there. But yeah, so this one seems like, you know, just really strengthened.

10:54Again, if you want to – it's nice to have diversification and having this as a name, if you have tax, if you have some other names. But this provides some diversification that shows some real powerful growth as well. So I think Lilly came down to the 50-day moving average here. Investors were spooked a little bit because Novo's oral weight loss drill launched in the U.S. And then Lilly said, well, you know, the FDA is not going to the approval is not going to come until April. But I'm not even sure that that was delayed. I thought that Lilly said that the approval was going to be coming in the in the second quarter anyway of of of of next year.

11:35So we'll see. But approval is expected for for Lilly's oral weight loss pill. So we will see. But Lilly still looking good here on a on a weekly chart. Looks like the test of that 10-week moving average nicely above the 10-week line here and really doing quite well after that nice uptrend and crossing of that 1 ,000 level. And you can see growth prospects still bright for Lilly. You can see these annual earnings estimates looking very, very strong as they make a lot of money in the weight loss market. Next up, we're going to take a look at Google. This has been a long time holding in the leaderboard model portfolio.

12:15And boy, you look at a lot of the magnificent seven stocks like Amazon, NVIDIA. I mean, you name it. Meta, Amazon, there's a lot of hurt, a lot of selling among the magnificent seven stocks. But Alphabet just is humming along here, doing quite well. Yeah, it almost reached a 10-week line. It did it yesterday. It did find support at the 21 day balanced off of that. So it's back above the three, you know, we're right at, I guess at the, at the end of the day, it backed off. Thought sweet green was just salads. Think again. There's a new way to do sweet green wrapped and ready. These handheld wraps pack bold flavor and 40 plus grams of protein into something hearty, satisfying and built for life on the go from craveable sauces to satisfying textures.

13:06They're designed to keep you going without slowing you down. So put that fork down. Try the new wraps today in app or at order.sweetgreen.com. Available at participating locations only. Closed just below the 328.83 buy point. You know, I think people could have bought this in anticipation like today off of that 21 day line, but technically below the buy point, but acting acting so well. The relative strength on it has been solid, right at highs. The stock hasn't had real gyrations. Yes, it had come down for a few days. But I think one thing is that it's nice to have some stocks that have some solid performance.

13:45I mean, this has been a real leader, let's be clear. But also having some that aren't just going to gyrate quite as much. And Google seems like that it has been much calmer than a lot of other names. And so it's just sort of comforting. It's like, oh, it's a bad day. Well, oh, Google's down 1%. I can live with that, you know, as opposed to, oh, this went down, I'm down 10 % on this stock. I mean, it just, the fun beta, high beta stocks aren't so much fun on the way down. So there's a lot to like about Google. It does seem like a winner. There's accelerating growth on the revenue. It'll be interesting to see how earnings are going forward because it's supposed to slow down next year quite a bit, you know, 6 % growth scene.

14:28So that'll be interesting to see what they have to say about that. And, of course, CapEx. We're going to be really looking forward in the next couple of weeks. What are all these giants going to be doing on CapEx? We're going to be hearing from quite a few of the magnificent seven stocks next week. Not from Alphabet. I think they're going to be a week later. But next week we'll be hearing from Microsoft, Meta, Tesla, Apple. We'll be hearing from a lot of the data storage stocks that went crazy again today. SanDisk, Western Digital, Seagate. So big week next week of tech earnings, but Alphabet will be out the following week.

15:14So that's a look at Alphabet, one of the large cap tech stocks left standing. Not too much good news to report in large cap tech, but Alphabet still doing quite well. And then we mentioned the strength in regional banks today, so it makes sense to take a look at Zion's, Z-I-O-N. And that's a nice technical move for Zion's Bancor. Yeah, and this is one that had earnings last night. It looks a lot like KRE, honestly. I mean, that has a similar action. It's back above the 5940 buy point from this consolidation. It actually cleared over a month ago, but it's basically been trading that range. You could argue that getting above the recent range is another entry.

16:02So even at today's high, it was basically just clearing that. So however you want to look at it, I think that was actionable today. Picking up the solid earnings growth. We'll see about this. It's not supposed to have tremendous earnings growth the next couple of years. That is just something out there. But nice to see things, the relative strength line at least got above the recent highs. So that's the highest in a few months. Yeah. So this was just solid performance. All of a sudden, they sort of slept on us, the regional banks, but they're really coming on. I know that David Chung was pointing that out and seeing some messaging back and forth, like, oh, look at some of these names.

16:39And Zion was just one of them. There was a lot of them, but this one may have been one of the more actionable names that you could have done today. Very good. Yeah. Well, we looked at a few earnings reports after the close yesterday. I'm not sure if there was anything noteworthy after the close today, anything on your radar today, Ed, or is it pretty quiet? Not really, yeah. Tomorrow morning we'll get GE Aerospace and tomorrow night we'll get Intel. But the real earnings are going to be – the big earnings wave is next week. Next week, definitely. Okay. Well, that will do it for today. And as usual, we appreciate your insight, Ed.

17:17Thank you very much. Thank you, Ken. All right. And that'll do it for today. And that will we appreciate you watching as usual tomorrow on IBD Live. Rachel Fox will be in the host chair. So be sure to join us for IBD Live. That will be tomorrow. Like I said, Thursday, starting at 920 a.m. Eastern Time, 620 a.m. on the West Coast. Just go to investors.com slash IBD live. Alexis Garcia and Ed Carson will be in. We'll have your back for the SMT video on Thursday. So be sure to check that out. In the meantime, hope you have a great rest of the day and we will see you back here tomorrow. Take care, everybody.

18:18Thank you.