{"id":57931,"date":"2026-01-21T09:38:26","date_gmt":"2026-01-21T13:38:26","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/global-trade-and-corporate-earnings-eu-targets-wto-reform-ustr-cautious-on-china-defense-stocks-upgraded\/57931\/"},"modified":"2026-01-21T09:38:26","modified_gmt":"2026-01-21T13:38:26","slug":"global-trade-and-corporate-earnings-eu-targets-wto-reform-ustr-cautious-on-china-defense-stocks-upgraded","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-trade-and-corporate-earnings-eu-targets-wto-reform-ustr-cautious-on-china-defense-stocks-upgraded\/57931\/","title":{"rendered":"Global Trade and Corporate Earnings: EU Targets WTO Reform, USTR Cautious on China, Defense Stocks Upgraded"},"content":{"rendered":"<p>Global trade policy is facing significant potential changes as the <strong>European Union<\/strong> advocates for reforms to the <strong>World Trade Organization&#39;s (WTO)<\/strong> &quot;Most Favoured Nation&quot; (MFN) trade rules. This move could reshape how countries interact economically, as the MFN principle generally requires WTO members to treat all trading partners equally. The EU&#39;s push for modernization comes amidst broader calls for WTO reform to address current gaps in the rulebook concerning issues like subsidies and state-owned enterprises.<\/p>\n<p>Meanwhile, <strong>U.S. Trade Representative (USTR) Jamieson Greer<\/strong> offered a cautious outlook on a comprehensive trade deal with <strong>China<\/strong>, stating uncertainty about achieving such an agreement. Greer suggested that a series of smaller, non-sensitive agreements or arrangements might be a more likely path forward. Despite the broader trade complexities, Greer highlighted positive developments, including robust sales of agricultural goods to China and a consistent flow of rare earths from the nation. He also emphasized the administration&#39;s readiness to implement alternative tariffs immediately should the Supreme Court rule against President Trump&#39;s existing tariffs, underscoring a commitment to using tariffs as a trade policy tool.<\/p>\n<p>In corporate news, <strong>defense contractors<\/strong> are seeing increased optimism from analysts. <strong>RBC Capital<\/strong> notably raised its target price for <strong>Lockheed Martin (<a href=\"\/stock\/LMT\">LMT<\/a>)<\/strong> to <strong>$615<\/strong> from <strong>$525<\/strong>. Similarly, <strong>RBC<\/strong> also increased its target price for <strong>RTX Corp (<a href=\"\/stock\/RTX\">RTX<\/a>)<\/strong> to <strong>$220<\/strong> from <strong>$200<\/strong>. These upgrades reflect a positive sentiment in the defense sector.<\/p>\n<p>In the technology and software space, <strong>Netflix (<a href=\"\/stock\/NFLX\">NFLX<\/a>)<\/strong> experienced a <strong>7%<\/strong> drop in <a href=\"https:\/\/stockmarketwatch.com\/movers\/premarket\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Premarket Movers\">pre-market trading<\/a>. This decline occurred despite the company reporting a modest earnings beat for the fourth quarter, with EPS of <strong>$0.56<\/strong> against an estimate of <strong>$0.55<\/strong>, and revenue of <strong>$12.05 billion<\/strong> exceeding the <strong>$11.97 billion<\/strong> consensus. Investor concern shifted to the streaming giant&#39;s light Q1 profit view and the costly and uncertain bidding war for <strong>Warner Bros. Discovery (WBD)<\/strong> assets, which also led to a pause in share buybacks.<\/p>\n<p>Conversely, <strong>Progress Software (<a href=\"\/stock\/PRGS\">PRGS<\/a>)<\/strong> saw its shares climb <strong>6.5%<\/strong> in pre-market activity. The software provider reported strong fourth-quarter results, beating analyst estimates with <strong>$1.51 EPS<\/strong> against a <strong>$1.31<\/strong> consensus and revenue of <strong>$252.67 million<\/strong>. The company also provided robust guidance for fiscal year 2026, projecting revenue between <strong>$986 million and $1 billion<\/strong>, a 1%-2% increase over 2025, signaling strong future growth and market confidence.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Global trade policy is facing significant potential changes as the European Union advocates for reforms to the World Trade Organization&#39;s 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