Markets
Markets rebound despite a series of tariffs. Sentiment eases slightly after the Mexican concession. China’s retaliatory tariff of 15% on select American goods didn’t faze investors, yet. S&P 500 companies that released earnings grew on average 16.3% in 24Q4 as per FactSet. $GOOG cloud revenue of $11.9b disappointed when consensus was $12.1b. The market was earlier disappointed in $MSFT $40b cloud revenue lagging behind $41.1b. $PLTR soared 24%. $BTC dips below $100k again. Yields fell. Dollar fell.
Headlines
• China retaliates with additional tariffs of up to 15% on select U.S. imports starting Feb. 10
15% on coal and LNG, 10% on crude oil and many other.
• Alphabet shares drop 7% on company revenue miss
Cloud revenue of $11.9b disappoints when consensus was $12.1b
• Palantir soars 24% to record high as AI powers strong earnings and guidance
• ‘Strongman’ leaders of Europe don’t look so strong anymore
The nationalist-populist leaders of Hungary, Slovakia, Germany and France were expected to see some boost since Trump inauguration – but it’s not that simple.
• Senators float resolution to overturn Biden methane fee rule
The methane fee was mandated by the 2022 IRA to force oil and gas companies to greenhouse gas emissions. Trumps wants America to drill.
• Chipotle assesses fallout from Mexico tariffs, forecasts tepid annual sales growth
$CMG depends on supplies, including half of their Avocados, from Mexico.
• U.S. Begins Migrant Flights to Guantanamo Bay
The new administration plans for the naval base in Cuba to hold 30k immigrants.
• Trump Order Set to Ban Transgender Girls and Women From Female School Sports
• Trump Campaigned on Ending Foreign Entanglements. Now He Wants to Own Gaza.
Trump was previously vocal about shrinking America’s role abroad. He talked about Greenland, the Panama Canal. Now it’s Gaza.
• The Fed could find itself in a policy Catch-22 if tariffs spike inflation and slow growth
