3M Co. (MMM) released its fourth quarter and full-year earnings report on Tuesday, January 21. The maker of Post-it Notes, Scotch Tape and Command Strips posted better-than-expected sales for the quarter, resulting in its shares rising almost 5%.

Net sales for the quarter came in at $6.01 billion. This was relatively unchanged from $6.00 billion reported in the same quarter last year but exceeded analysts’ estimates of $5.85 billion. Full-year sales reached $24.58 billion, a slight decrease from $24.61 billion one year ago.

"Our fourth quarter capped a year of strong results as we returned to positive organic revenue growth in the full year," said 3M CEO, William Brown. “I would like to thank the 3M team for their strong operational execution which helped us deliver double-digit earnings growth and robust free cash flow while returning $3.8 billion to shareholders. We are carrying this momentum forward and are confident in our ability to deliver our 2025 guidance.”

3M posted net income of $728 million or $1.33 per adjusted share for the quarter. Last year at this time, the company posted net income of $945 million or $1.70 per adjusted share. For the full year, the company reported net income of $4.17 billion.

The company’s Consumer segment posted sales of $1.23 billion, which is unchanged from $1.23 billion in the prior year. The Safety and Industrial segment reported sales of $2.70 billion during the quarter, up from $2.66 billion during the same period the year prior. 3M’s sales in the Transportation and Electronics segment reached $1.99 billion, down from $2.09 billion in 2023. For fiscal 2025, 3M expects sales growth to be in the range of 0.5% to 1.5% and adjusted earnings per share to be between $7.60 and $7.90.

3M Co. (MMM) shares ended the week at $149.43, up 3% for the week.

Netflix Report Earnings

Netflix Inc. (NFLX) reported its fourth quarter and full-year earnings on Tuesday, January 21. The streaming service’s stock prices increased by more than 14% following the report showing increased revenue and subscriber growth.

Netflix posted quarterly revenue of $10.25 billion. This is up 16% from $8.83 billion in revenue reported at the same time last year and above analysts’ expectations of $10.11 billion. Revenue for the full year came in at $39.00 billion.

“We enter 2025 with strong momentum, coming off a year with record net additions (41M) and having re-accelerated growth (16% increase in revenue),” wrote Netflix in a letter to shareholders. “We have to continue to improve all aspects of Netflix - more series and films our members love, a great product experience, increased sophistication in our plans and pricing strategy (including more advertising capabilities) - and grow into new areas like live programming and games.”

For the quarter, Netflix posted net income of $1.87 billion or $4.27 per adjusted share. This is up from net income of $937.84 million or $2.11 per adjusted earnings reported at this time last year. For the full year, net income returned at $8.71 billion.

In the fourth quarter, Netflix added its largest paid net subscribers of 18.9 million, ending the year with 301.6 million memberships which was attributed to strength across its content slate, improved product and market fit across regions as well as fourth-quarter seasonality. The company’s Average Revenue per Membership (ARM) reported an increase of 1% year-over-year. Operating income for the quarter was $2.27 billion, up 52% from $1.50 billion last year. For the full fiscal year 2025, the company revised its forecast and now expects revenue to come in at $43.5 billion to $44.5 billion.

Netflix Inc. (NFLX) shares closed at $977.59, up 13% for the week.

United Airlines Earnings Soar

United Airlines Holdings Inc. (UAL) posted its fourth quarter and full-year earnings report on Tuesday, January 21. After reporting strong revenue and quarterly earnings, the airline’s shares rose almost 4% following the release.

The company reported total operating revenue of $14.7 billion for the quarter, up almost 8% from $13.6 billion in revenue reported last year and above analysts’ expectations of $14.41 billion. For the full year, United Airlines reported $57.1 billion in revenue, an increase from $53.7 billion in the year before.

“United had a unique strategy coming out of COVID and our people have delivered for customers leading to a structurally and permanently changed industry,” said United Airlines CEO, Scott Kirby. “2024 was a strong year across the board for United as we have become the leading global airline and we enter 2025 with demand trends continuing to accelerate which puts us on the path to double-digit pre-tax margins.”

United posted net income of $985 million or $2.95 per adjusted share during the quarter. This was up from net income of $600 million or $1.81 per adjusted share during the same quarter last year. For the full year, the company reported net income of $3.1 billion, an increase from $2.6 billion reported for fiscal 2023.

The Chicago, Illinois-based company’s total revenue per available seat mile (TRASM) increased 1.6% compared to the same quarter in the prior year. The company experienced revenue growth in all segments. For the quarter, Passenger segment revenue reached $13.3 billion, a 7% increase compared to the previous year. Cargo revenue rose 30%, amounting to $521 million. Additionally, United reported a 20% rise in revenue from basic economy seats, while revenue from premium seating increased 10%. For fiscal 2025, United projects full year diluted earnings per share between $11.50 to $13.50. 

United Airlines Holdings Inc. (UAL) shares ended the week at $105.00, down 4% for the week.

The Dow started the week at 43,529 and closed at 44,424 on 1/24. The S&P 500 started the week at 6,014 and closed at 6,101. The NASDAQ started the week at 19,734 and closed at 19,954.

U.S. Treasury yields rose early in the week as investors assessed the effects of executive orders enacted by the newly inaugurated U.S. president. Yields continued to rise at the end of the week as the most recent jobs report suggested that further interest rate cuts by the Federal Reserve may take longer than anticipated.

On Monday, President Donald Trump signed multiple executive orders that addressed energy policy and initiated an investigation into the factors contributing to America’s trade deficits. One of the executive orders also directed agencies to analyze trade agreements with Mexico and Canada, including their impacts on workers and businesses. The executive orders did not include direct tariffs or surcharges on close trading partners.

"There was a definite relief and a bit of surprise that tariffs were not called out in the first round of executive actions that happened yesterday," said chief market strategist at BMO Private Wealth, Carol Schleif. "Markets are leaping to the conclusion, probably rightfully so, that the administration will take a more nuanced approach."

The benchmark 10-year Treasury note yield opened the week of January 21 at 4.64% and traded as low as 4.56% on Wednesday. The 30-year Treasury bond opened the week at 4.86% and traded as low as 4.78% on Wednesday.

On Thursday, the U.S. Department of Labor reported that initial claims for unemployment increased by 6,000 to 223,000 for the week ended January 18. Continuing unemployment claims increased by 46,000 to 1.90 million, reaching the highest level in over three years.

“The labor market is historically tight but some sectors are slowing the pace of hirings,” said chief economist at LPL Financial, Jeffrey Roach. “The data suggest minimal stress in job markets. As long as wage growth outpaces the rate of inflation, the economy will chug along, and the Fed will not cut rates as much as expected only a few months ago.”

The 10-year Treasury note yield finished the week of 1/21 at 4.63% while the 30-year Treasury note yield finished the week at 4.85%.

Freddie Mac released its latest Primary Mortgage Market Survey on Thursday, January 23. The survey indicated a decrease in mortgage rates for the first time in more than a month.

This week, the 30-year fixed rate mortgage averaged 6.96%, down from last week’s average of 7.04%. Last year at this time, the 30-year fixed rate mortgage averaged 6.69%.

The 15-year fixed rate mortgage averaged 6.16% this week, down from last week’s average of 6.27%. During the same week last year, the 15-year fixed rate mortgage averaged 5.96%.

“After crossing the 7%-mark last week, the 30-year fixed-rate mortgage saw its first decline in six weeks,” said Freddie Mac’s Chief Economist, Sam Khater. “While affordability challenges remain, this is welcome news for potential homebuyers, as reflected in a corresponding uptick in purchase applications.”

Based on published national averages, the savings rate was 0.41% as of 1/21. The one-year CD averaged 1.82%.

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