• Headline: "Dow Rises, Nasdaq Dips as Tariffs, Earnings Shape Market Direction"

  • Feb 11 2025
  • Length: 4 mins
  • Podcast

Headline: "Dow Rises, Nasdaq Dips as Tariffs, Earnings Shape Market Direction"

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  • Summary

  • **Major Index Performance**

    - **Dow Jones Industrial Average**: Traded 0.3% higher on Tuesday afternoon.
    - **S&P 500**: Ticked up 0.1%.
    - **Nasdaq Composite**: Down 0.2%.

    **Key Factors Driving Today's Market Direction**

    - **Tariffs**: President Trump's announcement to impose 25% tariffs on steel and aluminum imports, effective March 12, influenced market sentiment. This move led to higher Treasury yields and impacted inflation expectations[1][5].
    - **Earnings Season**: Strong earnings reports from companies like Coca-Cola (KO), which saw its stock rise 4% premarket, and DuPont (DD), up 4%, countered some of the negative impacts of the tariffs[1][5].
    - **Federal Reserve**: Investors are closely watching Federal Reserve Chair Jerome Powell's biannual testimony to Congress, which began on Tuesday. Powell's updates on the U.S. economy and inflation targets are crucial for market direction[1].

    **Notable Sector Performance**

    - **Top Gainers**:
    - American steelmakers like Cleveland-Cliffs (CLF) and Steel Dynamics (STLD) rose for a second consecutive day due to the tariff announcement[1][5].
    - Coca-Cola (KO) and DuPont (DD) saw significant gains following strong earnings reports[1][5].
    - **Top Decliners**:
    - Shopify (SHOP) fell 7% after its outlook disappointed investors[1].
    - Astera Labs (ALAB) dropped nearly 5% despite beating earnings estimates[1].

    **Market Highlights**

    - **Most Actively Traded Stocks**: Stocks of American steel and aluminum producers, such as Cleveland-Cliffs (CLF) and Steel Dynamics (STLD), were highly active due to the tariff news[1][5].
    - **Biggest Percentage Gainers and Losers**:
    - Gainers: Coca-Cola (KO) up 4%, DuPont (DD) up 4%.
    - Losers: Shopify (SHOP) down 7%, Astera Labs (ALAB) down nearly 5%[1][5].
    - **Significant Market-Moving News Events**:
    - Trump's tariff announcement on steel and aluminum imports.
    - Jerome Powell's testimony to Congress.
    - Earnings reports from key companies like Coca-Cola and DuPont[1][5].

    **Technical Analysis**

    - **Current Market Trend**: The overall momentum is mixed, with the Dow Jones and S&P 500 showing slight gains, while the Nasdaq Composite declined. The US500 (S&P 500) chart indicates a potential bullish bounce from the pivot level of 6,005.90[1][3].
    - **Key Support and Resistance Levels**:
    - S&P 500: Pivot at 6,005.90, support at 5,928.30, and resistance at 6,137.83[3].
    - **Trading Volume Analysis**: Trading volume was significant, particularly for stocks reacting to earnings reports and tariff news.
    - **VIX Movement and Implications**: The VIX was not specifically mentioned, but the market's reaction to tariffs and earnings suggests increased volatility.

    **Forward-Looking Elements**

    - **Pre-market Futures Indication**: Futures contracts connected to the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 were down 0.3%, 0.4%, and 0.6%, respectively, in premarket trading due to the tariff announcement[1][5].
    - **Key Events to Watch for Tomorrow**: Jerome Powell's continuation of his testimony to the House of Representatives.
    - **Important Upcoming Earnings Releases**: Investors will be watching for more corporate earnings reports as the season continues.
    - **Potential Market Catalysts**: The impact of the tariffs on inflation and the Federal Reserve's policy decisions will be closely monitored. Additionally, any updates from BP on its strategy reset could influence the energy sector[1][5].
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