Morning Preview: February 03, 2025

Auto PostDaily Market Report

Early Look

Monday, February 3, 2025

Futures

Up/Down

%

Last

Dow

-572.00

1.28%

44,125

S&P 500

-88.25

1.45%

5,979

Nasdaq

-361.50

1.66%

21,227

 

 

U.S. stock futures tumbled overnight while oil prices rose after the White House hit Canada, Mexico, and China with tariffs over the weekend, raising inflation fears in the U.S. and trade tensions with partners. The tariffs, set to take effect on Tuesday, will include 25% duties on Canada and Mexico and 10% on China. Energy imports from Canada will be lower with a 10% duty. Canada said they plan to retaliate against the tariffs as Canadian Prime Minister Justin Trudeau said Canada would respond with $155 billion of tariffs on U.S. goods, starting with $30 billion as of Tuesday. Categories include beer, wine, and spirits, household appliances, lumber and plastics. Trump has flagged even wider tariffs in the coming months, including against the European Union and covering an ever-increasing variety of goods and industries. The U.S. dollar rose to more than 1-year highs on the news. Everything from autos, to wines, beer, semiconductors, medical devices, etc. are under pressure this morning as tariffs spark cost concerns.

 

Stocks are starting off the week lower after falling last week but ended January with gains. Last week, the S&P 500 fell 1%, the Nasdaq declined 1.64%, and the Dow climbed 0.27%. However, for the month, the S&P gained 2.7%, the Nasdaq climbed 1.64%, and the Dow climbed 4.7%. Energy stocks declined on Friday following earnings from Exxon Mobil and Chevron, while communication services posted the biggest rise. Outside of the tariff pressures, U.S. investors will keep a close eye on earnings with another 20% plus of the S&P 500 reporting this week. In Asian markets, The Nikkei Index tumbled 1,052 points to 38,520, the Shanghai Index was closed and the Hang Seng Index slipped -7 points to 3,250. In Europe, major averages pullback from record high as the German DAX drops -366 points to 21,365, while the FTSE 100 falls about -100 points to 8,575. Bitcoin prices declined -6.75% to $95,230 (well off overnight lows of $91,500), while Ethereum tumbles -22% to $2,585 in crypto.

 

Market Closing Prices Yesterday

  • The S&P 500 Index slipped -30.64 points, or 0.50%, to 6,040.53.
  • The Dow Jones Industrial Average fell -337.47 points, or 0.75%, to 44,544.66.
  • The Nasdaq Composite dropped -54.31 points, or 0.28%, to 19,627.44.
  • The Russell 2000 Index declined -19.76 points, or 0.86% to 2,287.69.

Economic Calendar for Today

  • 9:45 AM ET S&P Global Manufacturing PMI, Jan-final…prior 50.1
  • 10:00 AM ET                Construction Spending M/M for December…est. +0.2%
  • 10:00 AM ET ISM Manufacturing PMI for January…est. 49.8
  • 12:30 PM ET                Fed’s Bostic Speaks on Economic Outlook
  • 6:30 PM ET                   Fed’s Musalem Gives Welcoming Remarks

Earnings Calendar:

  • Earnings Before the Open: ARLP IDXX JOUT NSSC SAIA TSN TWST
  • Earnings After the Close: ACM BRBR CBT CLX CSWC DOC EQR FLXS JJSF KD KFRC KREF MTG NJR PLTR RBB RMBS SNCY WWD

Other Key Events:

  • Oppenheimer Healthcare Winter CEO & Investor Summit, 2/3-2/6

 

 

Macro

Up/Down

Last

Nymex

1.73

74.26

Brent

1.13

76.80

Gold

-4.00

2,831.00

EUR/USD

-0.0119

1.0245

JPY/USD

-0.49

154.69

10-Year Note

-0.024

4.566%

 

World News

  • Balances at the Federal Reserve’s overnight reverse repurchase agreement facility jumped on Friday as the combination of month-end dynamics drove more cash to the central bank. Some 57 counterparties on Friday parked $187.9 billion at the RRP facility, the most since Jan. 7, from $126 billion the prior session – Bloomberg.
  • The Department of Government Efficiency (DOGE) has said that over $1 billion in DEI related US government contracts have been cancelled so far.

Sector News Breakdown

Consumer

  • Costco Wholesale Corporation’s (COST) union representing workers has reached a tentative agreement with the retailer, avoiding a potential strike by thousands of employees
  • Dollar General (DG) mentioned positively in Barron’s noting the company is seeking to restore its standing with investors after a tough few years for the company and its shares; says the stock now looks like a bargain after having dropped 70% since a 2022 high, and its earnings have been cut in half over the same period.
  • Li Auto Inc. (LI) announced that it delivered 29,927 vehicles in January 2025. As of January 31, 2025, Li Auto’s cumulative deliveries reached 1,163,799.
  • NIO Inc. (NIO) announced its January 2025 delivery results saying they delivered 13,863 vehicles in January 2025, representing an increase of 37.9% y/y. The deliveries consisted of 7,951 vehicles from the Company’s premium smart electric vehicle brand NIO, and 5,912 vehicles from its family-oriented smart electric vehicle brand ONVO.
  • Tempur Sealy International Inc. (TPX) was cleared to proceed with its $4 billion acquisition of Mattress Firm Inc. after a federal judge in Texas rejected a claim by the FTC that the deal would hurt consumers.
  • XPENG (XPEV) delivered 30,350 Smart EVs in January, representing a 268% increase y/y, surpassing 30,000 units for the third consecutive month. XPENG MONA M03 has delivered over 15,000 units per month for two consecutive months. Meanwhile, XPENG P7+ reached 20,000 cumulative deliveries within just two months of launch.

Energy, Industrials and Materials

  • TRIUMPH (TGI) to be acquired by Affiliates of Warburg Pincus and Berkshire Partners in an all-cash transaction valued at approximately $3B, with Triumph shareholders receiving $26.00 in cash per share.
  • German mineral mining group K+S (KPLUY), which also produces potash fertilizers in Canada, said that import tariffs to be imposed by the United States would greatly challenge U.S. farmers. The group ships about 300,000 tonnes of potash from its Bethune site in the Canadian province of Saskatchewan into the U.S. per year.
  • For steelmakers (X, NUE, STLD), before Trump announced 25% tariffs on all imports from Mexico and Canada, steel prices started rising for some U.S. companies and executives are bracing for more increases to come – WSJ.

Financials

  • Cullen/Frost (CFR) downgraded to Neutral from Buy at DA Davidson.
  • Prologis (PLD) was downgraded to Market Perform at Raymond James.

Healthcare

  • Hologic (HOLX) downgraded to Hold from Buy at Needham.
  • Idexx Laboratories (IDXX) Q4 EPS $2.62 vs. est. $2.40; Q4 revenue $954M vs. est. $936.68M; sees 2025 EPS $11.74-$12.24 vs. est. consensus $11.84 and sees 2025 revenue $4.06B-$4.17B vs. est. $4.15B
  • Owens & Minor (OMI) commences the process to raise additional debt; sees $310M non-cash goodwill impairment charge in Apria division; sees Q4 adj EPS 52c-55c vs. est. 53c and sees Q4 revenue $2.67B-$2.7 vs. est. $2.73B; sees FY24 adj EPS $1.50-$1.53 vs. est. $1.51 and sees FY24 revenue $10.67B-$10.7B vs. consensus $10.74B.
  • Tectonic (TECX) announces $185M private placement.

                                                                                                        

Technology, Media & Telecom

  • Amphenol (APH) mentioned positively in Barron’s saying it has consistently outperformed the S&P 500 over the last few years thanks to the artificial intelligence boom but now may be the time to buy the maker of electrical and data connectors after its shares fell 13% following the release of China’s DeepSeek chatbot.
  • InterDigital (IDCC) announced that it has initiated litigation against Disney (DIS), including Disney+, Hulu and ESPN+, over their ongoing infringement of InterDigital’s intellectual property.

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Market commentary provided by Hammerstone Markets, Inc, a firm separate from and not affiliated with Regal Securities. Regal Securities has not participated in the creation of the content, and does not explicitly or implicitly endorse the content.

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