U.S. stocks opened little changed after rallying all week, and were still on track for a second consecutive weekly gain after President Donald Trump softened his tone on tariffs, and called for lower interest rates and cheaper oil in his first week back in the White House.
Trump suggested 25% duties on Canada and Mexico on Feb. 1, which is later than his prior pledge to slap on tariffs on his first day. He also mentioned tariffs of only 10% on all Chinese imports, which would be considerably lower than the 60% he proposed on the campaign trail.
“This has left investors with the feeling that not only are his tariff plans likely lower down on the priority list, but they may end up being far less aggressive than initially feared,” said Matthew Ryan, head of market strategy at global financial services firm Ebury.
Further fueling stock gains, Trump told world leaders gathered in Davos, Switzerland on Thursday he would demand lower interest rates and ask Saudi Arabia and other oil-producing countries to cut the cost of oil. Oil was up 0.11% at $74.70 per barrel around 10 AM ET but is set to end the week lower.
Around 10 AM ET, the broad S&P 500 was up 0.13%, or 7.9 points, to 6,126.61, above its record close on Thursday of 6,118.71. The blue-chip Dow fell 0.31%, or 136.63 points, to 44,428.44, and the tech-heavy Nasdaq inched up 0.22%, or 44.6 points, to 20,098.27. The benchmark 10-year Treasury yield edged up to 4.65%
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Mixed company news
With tariffs on the back burner of investors’ minds for now, they can turn their attention back to corporate news, especially earnings. Some of the day’s top company news includes:
- Verizon’s earnings in the last three months of last year beat analysts’ expectations. The wireless provider also saw its best postpaid phone subscriber growth in five years, surprising analysts. Shares were last up 0.82%.
- Novo Nordisk shares rallied 8.11% on positive early-stage results for its once weekly amycretin obesity drug.
- Twilio issued a stronger-than-expected earnings outlook, and its shares jumped 22%
- Texas Instruments warned its first-quarter profits would miss analysts’ forecasts as it contends with inventory buildup in its key automotive and industrial markets. Shares fell 5.8%.
- CSX shares declined more than 3% after the transport company said its fourth-quartere results dropped due to sharp declines in coal and fuel surcharge revenue.
- Last night, Boeing warned of a larger-than-forecast fourth-quarter loss due to a prolonged strike, charges related to U.S. government projects and expenses linked to a slew of job cuts. Shares were up less than 1% this morning.
Bitcoin gains
Bitcoin prices continue to seesaw after reaching a record high ahead of Trump’s inauguration on Monday on speculation Trump would sign an executive order for a national bitcoin reserve.
Trump ended up not doing that, which has pinned bitcoin prices in a range. This morning, the cryptocurrency was last up 1.73% at $105,758.70.
On one hand, Trump has pledged to end the Securities and Exchange Commission’s crackdown on the crypto industry, and appointed crypto-friendly Paul Atkins to lead the commission. He also signed an executive order Thursday to create a crypto working group led by White House crypto and artificial intelligence czar David Sacks.
But on the other hand, all of that still falls short of the national strategic crypto reserve Trump promised, market watchers say
