• In the first 11 months of 2024, Canada and Mexico supplied about 28% of US imports, while China accounted for 13.5%, according to Census Bureau data. 1
• The combined market cap of the ten largest US companies is $20.9 trillion, representing over 70% of US GDP. These companies are now larger than China's $19.5 trillion economy and the combined GDP of Germany, Japan, India, the UK, and France. *2
• The Magnificent 7 derive 49% of their revenue from international sales, compared to 26% for the S&P 493 (i.e., the S&P 500 excluding the Mag 7) and 21% for the small-cap Russell 2000. This makes them more vulnerable to new tariffs. *3
• Companies are once again looking to reduce their stock prices through stock splits to appeal more to retail investors. Last year, there were 17 stock splits in the S&P 500—the most since 2013. Historically, stocks returned an average of 25% in the year following a split. *4

1. WSJ - "Trump Slaps Tariffs on Mexico, Canada and China in Opening Salvo of Trade War"
2. MFS - "Beyond the News"
3. Goldman Sachs- "Market Monitor"
4. Barrons - "It’s Bananas, but Stock Splits Can Pay Off. Here Are 5 Likely Contenders."

*Past performance is not indicative of future performance

Economic Calendar

Monday:

S&P final U.S. manufacturing PMI (Jan), Construction spending (Dec), ISM manufacturing (Jan), Atlanta Fed President Raphael Bostic speaks, Auto sales

Tuesday:

Job openings (Dec), Factory orders (Dec), Atlanta Fed President Raphael Bostic speaks on housing, San Francisco Fed President Daly speaks, Federal Reserve Vice Chairman Philip Jefferson speaks

Wednesday:

ADP employment (Jan), U.S. trade deficit (Dec), Richmond Fed President Tom Barkin speaks, S&P final U.S. services PMI (Jan), ISM services (Jan), Chicago Fed President Goolsbee speaks, Fed Governor Michelle Bowman speaks, Fed Vice Chairman Philip Jefferson speaks

Thursday:

Initial jobless claims (Feb), U.S. productivity (Q4), Fed Governor Christopher Waller speaks, Dallas Fed President Lorie Logan speaks

Friday:

U.S. employment report (Jan), U.S. unemployment rate (Jan), U.S. hourly wages (Jan), Hourly wages year over year, Fed Governor Michelle Bowman speaks, Wholesale inventories (Dec), Consumer sentiment (prelim) (Jan), Consumer credit (Dec)

Upcoming Earnings Calls

Monday - PLTR, MUFG, NXPI, IDXX, EQR

Tuesday - GOOGL, TM, MRK, PEP, AMD

Wednesday - NVO, BABA, DIS, QCOM, ARM

Thursday- AMZN, LLY, AZN, LIN, PM

Friday - SCCO, MFG, FTV, KIM, AVTR

Client Focused Trading® for large institutions, pensions, hedge funds, wealthy families, and private equity for over 30 years.

Glen Eagle Wealth, LLC is a member FINRA and SIPC

This desk commentary is for informational purposes only

Carol Ann Fernandez

Rob Michel

Grier Vacek

Glen Eagle Wealth, LLC

4422C Route 27

PO Box 399

Kingston, NJ 08528

(609) 631-8231