Netflix earnings, Trump speaks at Davos, IBM reports: 3 things to watch for on Tuesday

CEO Of Netflix, Reed Hastings, attends the red carpet during the Netflix presentation party at the Invernadero del Palacio de Cristal de la Arganzuela on April 4, 2019 in Madrid, Spain.
Juan Naharro Gimenez | Getty Images

Here are the most important things to know about Tuesday before you hit the door.

1. Netflix reports earnings

Netflix is set to report its fourth-quarter results on Tuesday after the bell.

Wall Street analysts are expecting the streaming media company to have earned 52 cents per share in the fourth quarter, more than the 30 cents per share it earned in the same quarter a year ago, according to FactSet.

Investors will pay attention to Netflix's subscriber growth in light of the increased competition in the streaming space. SunTrust analyst Matthew Thornton said he expects international paid subscription to grow by 7 million in the fourth quarter, in line with guidance, while domestic membership is expected to come in slightly ahead of the guidance of 0.6 million.

Shares of Netflix have rallied 15% in the past three months, despite the launch of Disney+ in mid-November.

2. Trump's Davos speech

Business leaders and politicians from around the world will gather at the World Economic Forum in Davos, Switzerland next week. President Donald Trump skipped the event last year amid a row with the Democratic Party over security spending. This year marks the 50th anniversary of the event in the Swiss Alps and its theme is "Stakeholders for a Cohesive and Sustainable World."

The president's speech came after top trade negotiators from the U.S. and China signed the long-awaited phase one trade deal. It also followed the Senate's passing of a new North American trade deal. Trump will likely touch on the state of the economy as well as trade issues in his speech.

3. IBM also reports

IBM is on deck to release quarterly earnings on Tuesday. Analysts are expecting earnings per share of $4.69 in the fourth quarter, slightly lower than the $4.87 earned in the same quarter a year prior, according to FactSet.

Morgan Stanley downgraded IBM to equal weight from overweight on Friday ahead of the earnings report. The bank said long-term revenue growth at IBM is less likely without a more meaningful shift in the portfolio.

Shares of IBM have underperformed the market in the past year, gaining 12% versus the S&P 500's 26% rise.

Major events (all times ET):

5:15 a.m. President Donald Trump speaks at Davos

8:30 a.m. Philadelphia Fed Non-manufacturing

Major earnings:

Netflix (after the bell)

IBM (after the bell)

United Airlines (after the bell)

Capital One (after the bell)

TD Ameritrade (after the bell)