Happy Thursday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.

• 🟩 | US stocks ended higher Thursday. A strong GDP print gave markets a boost, but Tesla weighed on the Nasdaq Composite. More on Tesla below.

• 📈 | One Notable Gainer: American Airlines' stock surged 10% after surpassing expectations with higher-than-anticipated revenue and per-share earnings.

• 📉 | One Notable Decliner: Tesla's stock plunged over 12% after reporting weak auto revenue and projecting slower 2024 growth, prompting firms to lower their price targets.

• 🥡 | Tomorrow's Trade: Rising Sun, Rising Stocks? Scroll down for more.

Plus, jumpstart your journey from a beginner or intermediate trader to an advanced market expert.

YESTERDAY’S POLL RESULTS

Are you bullish or bearish on Eli Lilly (LLY)?

🟩🟩🟩🟩🟩🟩 🐂 Bullish

🟨🟨⬜️⬜️⬜️⬜️ 🐻 Bearish

MARKET MOVERS

IBM, Boeing & Humana

IBM: IBM's shares climbed 9.5% following a fourth-quarter earnings beat, with adjusted EPS of $3.87 surpassing the $3.78 analyst expectations and revenue of $17.38 billion, which also exceeded estimates.

BA: Boeing's shares dropped under 6% after a Bank of America downgrade, amid doubts about meeting future production goals and recent regulatory setbacks.

HUM: Humana's stock plummeted 11.7% following its warning that rising medical costs will impact earnings, forecasting 2024 adjusted earnings around $16 per share, well below the $29.10 analysts anticipated.

NOC: Northrop Grumman's stock dropped 6% after the company reported a $1.17 billion charge linked to the U.S. Air Force's B-21 bomber project.

NOK: Nokia jumped over 11% after the company announced a two-year, 600-million euro share buyback starting this quarter.

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OVERHEARD ON THE STREET

Wave3: Meta announced they will be building a new $800 million data center in Jeffersonville, Indiana that will employ approximately 100 people.

Semafor: Business Insider is reducing its workforce by 8%, joining other news organizations in recent weeks that have also made staff cuts due to industry-wide challenges.

TheVerge: Microsoft is cutting 1,900 jobs this week at Activision Blizzard and Xbox, affecting about 8% of its 22,000-employee Gaming division, including some roles at Xbox and ZeniMax.

Barrons: PayPal CEO, who promised to "shock the world" on January 25th, unveiled new AI features and the opportunity for cash back through the PayPal app. The stock fell after the announcement.

Bloomberg: Treasury Secretary Janet Yellen said that inflation is now “well under control” after a historic surge triggered by the pandemic, and that she believed many Americans would agree.

TOMORROW’S TRADE IDEA, TODAY

Rising Sun, Rising Stocks?

A New Age for An Ancient Market

Japan’s stock market has been on fire recently. Last year the Nikkei 225 stock index rose 28%, outpacing the S&P 500’s 24% gain.

Yet despite the run-up, many experts still think it’s a good time to get exposure to the land of the rising sun.

The latest uptick can be attributed to Japan’s efforts to combat deflation, improve corporate governance, and implement structural reforms that make the country more shareholder-friendly. 

Buffett Spotted It First, But Other Analysts Are Still Bullish

In typical Warren Buffett fashion, Berkshire Hathaway has been buying into Japan over the past three years.

The conglomerate first announced buys in 2020, and in June of last year, the company said it added holdings in Japan's five biggest trading houses. These include Itochu, Marubeni, Mitsubishi Corp, Mitsui & Co, and Sumitomo. Berkshire's stakes in each averages out close to 9%.

According to Russ Koesterich of BlackRock, the Japanese market is still priced fairly cheap, offering potential investors significant value, particularly when compared with US stocks. 

ETFs and Funds

US investors looking to capitalize on Japan’s gains have a few options at their disposal. The first of which is Vanguard’s FTSE Developed Markets ETF (VEA), which currently has Japan as its largest holding.

If investors want to focus solely on Japan, the iShares MSCI Japan (EWJ) ETF, which tracks 85% of the Japanese stock market, is a good actively managed option, per Morningstar. 

One thing potential investors should consider is whether or not a specific fund hedges against currency risk. The iShares Currency Hedged MSCI Japan ETF takes this into account.

Although Japan’s population has been on a decline since the 1980s, there are structural changes taking place that could make the country worth keeping an eye on as we settle into the new year.

TOGETHER WITH MARKET MASTERS

Superpowers For Traders

Market Masters breaks trading down into basic building blocks (like Legos) and tells you how to assemble them for success.

Think of them like a school, but for the real-world. We make learning the full stack of trading skills a fun, collaborative process.

Not only is live voice trading included, but you'll also get 1000+ hours of content, daily classes, trading view indicators, and more.

With a 4.93/5 positive feedback rating, it's no wonder thousands of customers have trusted Market Masters.

Click here to join premium today

ON OUR RADAR

BW: Over half of Americans who are planning to buy a vehicle will wait at least a year before making a purchase.

CNBC: Elon Musk acknowledged that Chinese electric automakers are likely to achieve "significant" success internationally, even as his company Tesla faces stiff competition from these firms.

Reuters: Egypt's Suez Canal dollar revenues have decreased by 40% since the start of the year compared to 2023.

CNBC: The U.S. gross domestic product, measuring total goods and services produced, grew at an annualized rate of 3.3% in the fourth quarter of 2023, based on seasonally and inflation-adjusted data.

Reuters: Democratically governed Taiwan lost Nauru, one of its few remaining diplomatic allies, to China on Jan. 15, just two days after a new Taiwanese president was elected.

Axios: In 2024, McDonald's is bringing back the Double Big Mac with 780 calories and 48 grams of fat, exceeding the regular Big Mac's 590 calories and 34 grams.