To The Moon

Major U.S. equities indexes moved lower to start February trading after U.S. President Donald Trump declared over the weekend that he will impose tariffs on imports from key trading partners Canada, Mexico, and China.

The stock market experienced some volatility at the start of the week but we saw stocks bounced off their morning lows as Trump announced that tariffs against Mexico would be delayed for a month but did not fully recover due to ongoing concerns about tariffs affecting growth and increasing inflation.

The S&P 500 and Nasdaq Composite decreased by as much as 1.9% and 2.5%, respectively. Meanwhile, the Dow Jones Industrial Average dropped over 650 points at its lowest point. At the end of the session, we saw S&P 500 lost 0.76% on Monday (03 Feb), DJIA recovered from steeper losses in the morning to end the session down 0.28%, while weakness in the tech sector weighed on the NASDAQ, which fell 1.2%.

Manufacturing Sector In Expansion Signal More Demand

We saw the manufacturing sector entered expansion territory for the first time after 26 months of contraction, highlighting improved demand as seen in new orders and employment indexes.

The January S&P Global US Manufacturing PMI - Final came in higher at 51.2 than the previous at 50.1. January ISM Manufacturing Index also came in higher at 50.9% than the consensus at 49.1% while the previous was revised to 49.2% from 49.3%.

The increase in new single-family construction activity despite rising interest rates came after we saw December Construction Spending came in higher at 0.5% than the consensus of 0.2% while previous was revised to 0.2% from 0.0%.

On Tuesday (04 Feb) we will be expecting the December job openings at 10:00 ET which have the previous at 8.098 million. December Factory Orders will be also expected with consensus at -0.3% compared to previous at -0.4%.

Significant Stock Performance Post Earnings - PLTR

$Palantir Technologies Inc.(PLTR)$ reported impressive fourth-quarter results, with a non-GAAP EPS of $0.14, surpassing estimates by $0.03. The company achieved a revenue of $827.52 million, a 36% year-over-year increase, exceeding expectations by $46.28 million. Palantir closed 129 deals worth at least $1 million, including 32 deals over $10 million, and recorded a U.S. commercial total contract value of $803 million, a 134% annual increase. The company projects Q1 2025 revenue between $858 million and $862 million, above the consensus of $799.36 million, and full-year 2025 revenue between $3.741 billion and $3.757 billion, surpassing the consensus of $3.53 billion.

I have been writing about how Palantir would win as we see AI revolution move, the recent news of DeepSeek have shown that open-sourced LLM could be a common things, but how organization massage their data would be crucial on how the model would turn out for consumers at the inference stage.

Inference stage is where focus for AI should be, and some chips makers would perform much better than others. Like $NVIDIA(NVDA)$ $Advanced Micro Devices(AMD)$ - the gaming chips which could also provide the compute for inference results.

S&P 500 Consumer Staples Led Due To Buying Interest Increase

We saw five sectors closed in the green with the consumer staples, utilities, energy, health care and materials closing higher between 0.05% to 0.68% which was driven by increased buying interest.

With the increased selling in heavily-weighted sectors like information technology, consumer discretionary and financials saw them losing 1.80%, 1.35% amd 1.03% respectively.

But we should see a nice recovery from the information technology as PLTR earnings should help the sector and also we are anticipating some more big tech earnings coming on this Tuesday (04 Feb).

Note Yield In Mixed Response To Sell Off

Treasuries had a mixed response, with the 10-year yield settling three basis points lower at 4.54% before ending higher.

The 2-year yield settling three basis points higher at 4.27%.

Stocks To Watch

$Tesla Motors(TSLA)$ shares tumbled 5.2% as investors weighed the implications of Trump's tariff policies. The electric vehicle (EV) maker could see an impact from shifts in the global trade environment and potential retaliatory moves in response to the tariffs, especially given Tesla's exposure to markets in China as well as its close ties to the U.S. presidential administration. A report showing a downturn in registrations for Tesla vehicles in Norway and Sweden during January also raised concerns about perceptions of the brand in Europe.

$Tyson(TSN)$ started fiscal 2025 strongly, with exceptional performance in its Chicken segment, marking its best first-quarter adjusted operating income in eight years. The Beef and international operations also surpassed expectations, while prepared foods maintained profitability. Tyson's CEO highlighted a 65% growth in adjusted EPS and a reduction in the net leverage ratio to 2.3 times. The company raised its full-year adjusted operating income guidance to $1.9 billion to $2.3 billion, driven by gains in chicken and operational efficiencies.

This might be one of the stock in the food industry that I will be venturing into, because the focus would be going into consumer staples with the tariffs now in motion.

If we looked at how TSN have been trading, it looked like TSN was experiencing a challenge as the bulls was trying to clear its support level near the 200-day MA period, but failed to do so since start of 2025, but with this exceptional earnings, this might make TSN current stock price a good entry target.

I will be monitoring the price action on TSN today (04 Feb) to see if can take a position.

BlackRock (BLK) saw a decline of nearly 5% in its stock price, breaking a seven-session winning streak. Despite this drop, BlackRock has gained nearly 39% over the past year, outperforming the S&P 500 Index. The company plans to strengthen its presence in the Gulf region by opening an office in Kuwait.

Summary

I think crypto stocks might get a boost with the mention of sovereign fund, but we do not know if it is to store the Bitcoin as reserve currency, but the development of tariffs should be moving towards more positive.

If we looked at how tariffs would be processed, it would like the local produce to be purchased by the U.S. consumers hence consumer staples sector would be something to look at.

Appreciate if you could share your thoughts in the comment section whether you think market would have a positive bias with tech sectors making a small recovery.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.