Feb 052025
 

Stocks closed higher on Tuesday, powered by Big Tech.  The Nasdaq jumped 1.4%, the S&P 500 up 0.7%, and the Down Jones climbed 0.3%.  China’s quick retaliation on Trump’s 10% tariffs is seen by some analysts as restraint from China, keeping hopes of a compromise alive, like the Mexico and Canada 1 month postponement deals.

The US Postal Service has temporarily suspended inbound packages from China and Hong Kong posts, delaying or blocking retail packages from retailers selling Chinese imported goods like Amazon, AliExpress, Temu, and Shein.  The package freeze highlights the complications of collecting Trump’s 10% fee on Chinese imports.  Trump’s Chinese tariff revokes a “de minimis” rule that allowed small packages under $800 to enter UD duty-free.

Shares of Alibaba (BABA) and JD.com are down in Hong Kong trading.  A phone call between Trump and China’s President Xi Jinping could happen today.

Alphabet (GOOG, GOOGL) shares plunged about 7% after earnings.  The company’s cloud revenue was disappointing and spending was higher than expectations.  Alphabet’s earnings are weighing on Nasdaq futures this morning.

Advanced Micro Devices (AMD) stock jumped in after-hours but then turned down 9%.  AMD beat revenue estimates and raised their revenue forecasts.  The company sees “growing demand for high-performance and adaptive computing,” however their data center business growth forecast disappointed investors looking for signs of momentum in AI chips.  AMD is battling to take AI market share from Nvidia (NVDA) in a time when AI powered PC sales are slowing.

Corporate earnings premarket include Alibaba Group (BABA), Walt Disney (DIS), Uber Technologies (UBER), ARCC, ARES, ATO, BBD, SAN, TECH, BSX, BG, CDW, COR, CCI, DAY, EMR, EQNR, EVR, FOXA, GSK, IEX, ITW, JCI, LINE, ODFL, IX, PAG, PFGC, SWK, TROW, TTE, and XPO.

Earnings after the bell include Arm (ARM), Ford Motor (F), Qualcomm (QCOM), AFL, ALGN, AVB, CTSH, CPAY, CTVA, CCK, EOH, GL, HOLX, MKL, MCK, MET, MSTR, MAA, MOH, NWSA, OHI, ORLY, PTC, RRX, SWKS, STE, SU, SYM, ALL, and UDR.

The economic calendar includes ADP @ 8:15am ET, Trade Balance @ 8:30am ET, S&P Global Final Services PMI @ 9:45am ET, and ISM Services PMI @ 10:00am ET.  Fed speakers include Barkin @ 7:30am ET and 9:00am ET, Goolsbee @ 2:30pm ET, and Bowman @ 3:00pm ET.

Volatility remains elevated and steady.  The ES 5-day average daily range is 86.50 points.

Whale bias is bearish into the 8:15am ET ADP report on lighter than recent overnight large trader volume.

 

 Posted by at 6:39 am

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