Good Morning!
On Monday, February 10, the S&P 500 closed at 6,066.44, up 0.33% from the previous trading session. The NASDAQ was up 0.98%, finishing at 19,714.27. The Dow Jones Industrial Average remained flat, up 0.15% to close at 44,470.41. Meanwhile, the Russell 2000 rose 0.36%, ending the session at 2,287.94.
Crypto Highlights
Bitcoin (BTC): Currently trading at $96,949, down 0.79% over the past 24 hours.
Ethereum (ETH): Down 0.24%, now trading at $2,654 per coin.
Solana (SOL): Slid 3.74%, currently trading at $199.47.
Ripple (XRP): Up 0.71% in the last 24 hours, now trading at $2.46 per coin.
Headlines
Trump Confirms 25% Metal Tariffs With No Exemptions, Set for March Implementation
President Donald Trump has announced a sweeping 25% import tax on all steel and aluminum entering the U.S., set to take effect on March 12, with no exemptions for any country. The move is expected to have the biggest impact on Canada, the largest supplier of aluminum and a major steel exporter to the U.S., and has already drawn threats of retaliation from Canadian and European leaders.
Trump justified the tariffs as a boost to domestic production, arguing that “our nation requires steel and aluminum to be made in America, not in foreign lands.” However, business leaders and industry groups warn that the tariffs could increase costs for manufacturers, leading to price hikes for consumers. Despite this, shares in U.S. steelmakers surged following the announcement, with Cleveland-Cliffs stock jumping nearly 20%.
Canada, the EU, and Mexico have strongly opposed the tariffs, with Canada’s Minister of Innovation, François-Philippe Champagne, calling them “totally unjustified”. The EU has vowed “firm and proportionate countermeasures,” while Mexico is evaluating its response. Trump’s hardline trade stance has led to concerns over a potential global trade war, especially after he also imposed a 10% tariff on all Chinese goods, prompting immediate Chinese retaliatory measures.
While Trump claims tariffs will ultimately lower prices and create jobs, some economists remain skeptical, calling the move a negotiating tactic rather than a long-term policy shift. With international backlash mounting, analysts are watching to see whether Trump will maintain his strict stance or eventually carve out exemptions, as he did in 2018.
EU Pledges Retaliation Against Trump’s 25% Tariffs on Steel and Aluminum
The European Union has vowed to impose countermeasures against President Donald Trump’s newly announced 25% tariffs on steel and aluminum imports, set to take effect on March 12. European Commission President Ursula von der Leyen condemned the tariffs as “unjustified” and warned that the EU would respond with “firm and proportionate” retaliation. The move reignites a trade conflict between the U.S. and the EU, which previously imposed retaliatory duties on American products like Harley-Davidson motorcycles and Levi’s jeans when Trump implemented similar tariffs in 2018.
EU leaders, including German Chancellor Olaf Scholz, signaled a united front, stating that if the U.S. proceeds with the tariffs, Europe will react as one. The EU has prepared multiple lists of American goods for potential retaliatory tariffs and may quickly reapply measures that were previously suspended in a 2021 truce. Trump, meanwhile, justified the tariffs as a way to bolster domestic production and hinted that further duties could be imposed on other sectors, including automobiles and semiconductors.
U.S. Officially Renames Gulf of Mexico as 'Gulf of America'
The name “Gulf of America” is now officially recognized in U.S. government records and on Google Maps following an executive order from President Donald Trump. The change, first announced last month, was confirmed by Interior Secretary Doug Burgum, who declared on social media, “It’s official.” The renaming has been implemented in the U.S. Board on Geographic Names database, solidifying the administration’s decision.
Trump Orders Halt to Enforcement of U.S. Anti-Bribery Law
President Donald Trump has signed an executive order directing the Department of Justice to suspend enforcement of the Foreign Corrupt Practices Act (FCPA), a 1977 law that prohibits American companies from bribing foreign officials to secure business deals. Trump defended the move as a way to boost U.S. competitiveness, arguing that the law deters American businesses from expanding internationally. “It sounds good on paper, but in practice, it’s a disaster,” Trump said, adding that companies fear legal action when operating abroad. Attorney General Pam Bondi has been instructed to review existing FCPA cases and issue new enforcement guidelines aimed at promoting “American competitiveness.”
The decision has drawn sharp criticism from anti-corruption experts, who warn that weakening the FCPA could undermine global efforts to combat corporate bribery and harm American businesses in the long run. The law has been instrumental in prosecuting major corruption cases, including settlements with Trafigura, RTX, and McKinsey over bribery scandals. Critics argue that most U.S. companies benefit from the FCPA because it allows them to refuse bribes in foreign markets. While the Trump administration claims the policy shift will ease regulatory burdens and advance national security interests, legal experts warn that halting enforcement could open the door to widespread corporate misconduct.
Gold Nears $3,000 as Trump’s Tariff Threats Fuel Safe-Haven Demand
Gold prices surged to a record high of $2,911.30 per ounce on Monday, with analysts predicting the metal will soon break the $3,000 milestone amid escalating global trade tensions. The rally, driven by U.S. President Donald Trump’s latest 25% tariff threats on steel and aluminum imports, marks the seventh new peak for gold in 2025. Investors are piling into gold as a hedge against inflation and geopolitical uncertainty, with prices already up 11% this year, following a 27% gain in 2024.
Central bank demand has also intensified, with gold purchases rising 54% year-over-year in Q4 2024, according to the World Gold Council. China’s central bank has continued buying for a third consecutive month, while a rush of gold shipments to the U.S. from London and Asia has tightened supply. With bullion in high demand at U.S. futures markets, analysts expect the rally to continue. "Gold is clearly targeting $3,000—it’s just a matter of when, not if," said independent analyst Ross Norman, underscoring the relentless momentum behind gold’s ascent.
Trump Suggests Ukraine ‘May Be Russian Someday,’ Raising Geopolitical Concerns
President Donald Trump has once again unsettled U.S. allies by stating that Ukraine “may be Russian someday”, ahead of a key meeting between Vice President JD Vance and Ukrainian President Volodymyr Zelensky. In an interview with Fox News, Trump reiterated his transactional approach to foreign policy, suggesting that U.S. aid to Ukraine should be repaid with rare earth minerals, and emphasizing the possibility of Ukraine making a deal with Russia to end the war.
The Kremlin quickly seized on Trump’s remarks, with spokesperson Dmitry Peskov claiming that many Ukrainians “want to become Russia” and referencing the sham referendums held in occupied territories. Trump also touted his administration’s efforts to lay the groundwork for peace talks between Kyiv and Moscow, though his comments contrast sharply with European leaders’ stance that Russia should not be rewarded for its invasion. As U.S. and European officials prepare for discussions at the Munich Security Conference, Poland’s President Andrzej Duda warned that Russia “cannot draw benefit” from its aggression, stressing that Ukraine’s territorial integrity must be defended.
Elon Musk's $97.4 Billion Offer for OpenAI Rejected by Sam Altman
Elon Musk and a group of investors reportedly made a $97.4 billion offer to acquire OpenAI, but CEO Sam Altman swiftly declined, responding on X: “no thank you, but we will buy Twitter for $9.74 billion if you want.” Musk, who co-founded OpenAI in 2015 before departing over strategic disagreements, called Altman a "swindler" in response. The bid, first reported by The Wall Street Journal, would have significantly undervalued OpenAI compared to SoftBank’s planned $40 billion investment at a $260 billion valuation.
Musk’s offer adds another layer to his ongoing legal battle with OpenAI, where he seeks to prevent its transition from a nonprofit to a for-profit entity, citing his initial $45 million donation as conditional on maintaining nonprofit status. Legal experts note that OpenAI must sell assets at fair market value, which Musk has contested, requesting California’s attorney general to investigate potential undervaluation. Meanwhile, Musk’s xAI, a competing AI firm, continues to challenge OpenAI’s dominance, as tensions escalate over the future of artificial intelligence and strategic partnerships, including OpenAI’s deep ties with Microsoft.
Canada’s TD Bank to Sell Charles Schwab Stake for $14.6 Billion Amid U.S. Regulatory Pressure
Toronto-Dominion Bank (TD) announced plans to sell its entire 10.1% stake in U.S. financial services firm Charles Schwab for approximately $14.6 billion as part of a strategic overhaul following a record U.S. fine. The sale includes 165.4 million shares priced at $79.25 each, totaling $13.1 billion, while Schwab will repurchase the remaining shares for $1.5 billion. The move comes after U.S. regulators imposed a $434 billion asset cap and other restrictions on TD due to money laundering failures, which led the bank to plead guilty and pay over $3 billion in penalties.
TD’s new CEO, Raymond Chun, who took charge this month, stated that C$8 billion ($5.58 billion) from the sale will be allocated for share buybacks, with the remaining funds invested in business performance and organic growth. Analysts estimate the deal will free up C$10-12 billion in capital, simplifying TD’s U.S. operations and potentially signaling a shift in its wealth management strategy. Previously, TD had pursued an acquisition of Tennessee-based First Horizon but withdrew amid regulatory scrutiny.
Xpeng, Geely Shares Drop as BYD Offers Free Smart Driving Features
Shares of Chinese automakers Xpeng and Geely Auto tumbled on Tuesday following BYD's bold move to offer free smart driving features across nearly all its models. Xpeng’s stock fell as much as 9.2%, while Geely’s dropped 11.4%, marking their worst one-day decline since October 2024. In contrast, BYD’s shares hit a record high before closing slightly lower.
BYD’s decision to include its “God’s Eye” advanced driver-assistance system (ADAS) at no extra cost has intensified competition in China’s already fierce EV market. The company’s Seagull model, priced at just $9,555, now includes features similar to Tesla’s but at a significantly lower price. Analysts fear this could trigger a new price war, putting pressure on smaller EV makers like Xpeng, which may struggle to match BYD’s aggressive pricing.
Yesterday's Earnings
McDonald’s (MCD): Actual EPS: $2.83 (Miss by 2.41%), Expected EPS: $2.90, Actual Revenue: $6.39B (Miss by 1.84%), Expected Revenue: $6.51B, Market Cap: $221.02B
Vertex (VRTX): Actual EPS: $3.98 (Miss by 1.00%), Expected EPS: $4.02, Actual Revenue: $2.91B (Beat by 4.30%), Expected Revenue: $2.79B, Market Cap: $121.03B
Arch Capital (ACGL): Actual EPS: $2.26 (Beat by 22.83%), Expected EPS: $1.84, Actual Revenue: $4.76B (Beat by 18.11%), Expected Revenue: $4.03B, Market Cap: $34.27B
Rockwell Automation (ROK): Actual EPS: $1.83 (Beat by 16.56%), Expected EPS: $1.57, Actual Revenue: $1.88B (Miss by 0.53%), Expected Revenue: $1.89B, Market Cap: $34.17B
Cincinnati Financial (CINF): Actual EPS: $3.14 (Beat by 67.02%), Expected EPS: $1.88, Actual Revenue: $2.54B (Beat by 9.48%), Expected Revenue: $2.32B, Market Cap: $21.2B
ON Semiconductor (ON): Actual EPS: $0.95 (Miss by 2.06%), Expected EPS: $0.97, Actual Revenue: $1.72B (Miss by 2.27%), Expected Revenue: $1.76B, Market Cap: $20.03B
Loews (L): Actual EPS: $0.86, Revenue: $4.55B, Market Cap: $18.45B
Incyte (INCY): Actual EPS: $1.43 (Miss by 5.30%), Expected EPS: $1.51, Actual Revenue: $1.18B (Beat by 3.51%), Expected Revenue: $1.14B, Market Cap: $13.16B
Earnings Today
Coca-Cola (KO): Actual EPS: $0.55 (Beat by 5.77%), Expected EPS: $0.52, Actual Revenue: $11.5B (Beat by 7.48%), Expected Revenue: $10.7B, Market Cap: $278.07B
S&P Global (SPGI): Actual EPS: $3.77 (Beat by 12.20%), Expected EPS: $3.36, Actual Revenue: $3.59B (Beat by 4.66%), Expected Revenue: $3.43B, Market Cap: $159.73B
Gilead (GILD): Expected EPS: $1.71, Expected Revenue: $7.16B, Market Cap: $118.99B
Welltower (WELL): Expected EPS: $0.4057, Expected Revenue: $2.12B, Market Cap: $89.11B
Marriott Int (MAR): Actual EPS: $2.45 (Beat by 3.38%), Expected EPS: $2.37, Actual Revenue: $6.43B (Beat by 0.94%), Expected Revenue: $6.37B, Market Cap: $84.6B
DoorDash (DASH): Expected EPS: $0.3315, Expected Revenue: $2.84B, Market Cap: $80.02B
Ecolab (ECL): Actual EPS: $1.81 (Met Expectations), Expected EPS: $1.81, Actual Revenue: $4.01B (Beat by 0.25%), Expected Revenue: $4B, Market Cap: $69.64B
Carrier Global (CARR): Actual EPS: $0.54 (Beat by 10.20%), Expected EPS: $0.49, Actual Revenue: $5.15B (Miss by 2.28%), Expected Revenue: $5.27B, Market Cap: $59.42B
AIG (AIG): Expected EPS: $1.28, Expected Revenue: $6.79B, Market Cap: $46.84B
Fidelity National Info (FIS): Actual EPS: $1.40 (Beat by 2.94%), Expected EPS: $1.36, Actual Revenue: $2.6B (Miss by 1.14%), Expected Revenue: $2.63B, Market Cap: $44.5B
Edwards Lifesciences (EW): Expected EPS: $0.5508, Expected Revenue: $1.36B, Market Cap: $41.93B
Humana (HUM): Actual EPS: -$2.16 (Miss by 1.41%), Expected EPS: -$2.13, Actual Revenue: $29.21B (Beat by 1.71%), Expected Revenue: $28.72B, Market Cap: $32.13B
DuPont De Nemours (DD): Actual EPS: $1.13 (Beat by 14.14%), Expected EPS: $0.99, Actual Revenue: $3.09B (Beat by 0.32%), Expected Revenue: $3.08B, Market Cap: $31.87B
Super Micro Computer (SMCI): Expected EPS: $8.12, Expected Revenue: $6.95B, Market Cap: $24.97B
FirstEnergy (FE): Expected EPS: $0.7133, Expected Revenue: $4.36B, Market Cap: $22.97B
GlobalFoundries (GFS): Actual EPS: $0.46 (Beat by 2.22%), Expected EPS: $0.45, Actual Revenue: $1.83B (Met Expectations), Expected Revenue: $1.83B, Market Cap: $20.86B
Leidos (LDOS): Actual EPS: $2.37 (Beat by 4.87%), Expected EPS: $2.26, Actual Revenue: $4.37B (Beat by 5.81%), Expected Revenue: $4.13B, Market Cap: $19.05B
Masco (MAS): Actual EPS: $0.89 (Beat by 1.14%), Expected EPS: $0.88, Actual Revenue: $1.83B (Miss by 0.54%), Expected Revenue: $1.84B, Market Cap: $16.74B
Assurant (AIZ): Expected EPS: $3.43, Expected Revenue: $3.07B, Market Cap: $10.9B
