To The Moon

On Tuesday (11 Feb) we saw major U.S. stock indexes finished the session in a mixed mode, this happened after President Trump decided to move forward with his threat to impose tariffs on steel and aluminum imports. 

The major indices was fluctuating around previous closing levels. DJIA was the outperformer with 0.28% gain, S&P 500 only managed a modest 0.03% while NASDAQ declined by 0.36%. The market showed a lack of strong direction which is largely influenced by the performance of mega-cap stocks.

American Steelmakers Shares Mixed After Tariffs Confirmed

The latest tariffs which apply to all steel and aluminum imports and will be effective on 12 March have seen shares of American steelmakers were mixed Tuesday, with Cleveland-Cliffs (CLF) slipping after soaring yesterday and Steel Dynamics (STLD) rising.

Fed Chair No Urgency Make Market Trade Mixed

The market digested news related to tariffs and Federal Reserve Chair Jerome Powell's semi-annual testimony before Congress. Powell reiterated that there is no urgency to change the current policy stance, echoing his remarks from the January FOMC meeting.

S&P 500 Consumer Staples Sector Led The Pack

We saw only three S&P 500 sectors in the red, where consumer discretionary sector decline of 1.23% was contributed by Tesla Motors (TSLA) 6.34% loss due to painful selloff which has continued into its fifth consecutive trading day.

Consumer staples did a modest 0.91% gain after we saw $Coca-Cola(KO)$ achieved a 7% comparable EPS growth in 2024, despite facing currency headwinds and bottler refranchising challenges. Q4 saw a 14% organic revenue growth, driven by price/mix and unit case volume increases. Innovations and market share gains across beverage categories contributed to the company's strong performance, with free cash flow reaching $10.8 billion.

Information technology also did fairly well because of performance from Intel (INTC) with 6.07% gain and Apple (AAPL) with 2.18% gain.

Significant Mega Cap Performance

$NVIDIA(NVDA)$ was trading significant in the mega-cap sector having rise by 0.7% to its peak then was down by as much as 1.9% before closing lower -0.58% at the close.

On the hand, we saw significant rise in $Apple(AAPL)$ shares which gained 2.18% on Tuesday (11 Feb), the rise was catalysed by the news of its potential collaboration with Alibaba (BABA) to develop artificial intelligence for iPhone users in China. Alibaba's shares also rose by 1.31%.

Note Yield Higher

We saw the note yield higher with 2-year yield rising two basis points to 4.29% and the 10-year yield climbing four basis points to 4.54%. The $58 billion 3-year note sale attracted strong demand, but the market reaction was subdued.

Stocks To Watch

$SUPER MICRO COMPUTER INC(SMCI)$ shares decreased by 3% in after-hours trading following the release of its preliminary second-quarter results and guidance. The company reported adjusted earnings between $0.58 and $0.60 per share, with revenues rising 54% year-over-year to approximately $5.6B-$5.7B. For the upcoming period, Super Micro anticipates adjusted earnings between $0.46 and $0.62 per share and revenues ranging from $5B to $6B. The company is also working towards filing its 2024 annual report by February 25.

Lyft (LYFT) posted a profit in Q4, exceeding Wall Street's expectations, despite after-hours pressure due to soft Q1 guidance. The company reported $1.6B in revenue, a 27% increase year-over-year, and adjusted EBITDA nearly doubled to $112.8M. Record bookings and active riders were key drivers of the company's profitability.

CRISPR Therapeutics (CRSP) reported a Q4 GAAP EPS of -$0.44, beating estimates by $0.68, with revenues of $35.69M. The stock saw positive momentum following RFK Jr.'s investment disclosure, and the company secured a reimbursement deal for its sickle cell therapy in England.

$Intel(INTC)$ shares surged 9% as Vice President J.D. Vance announced that the U.S. will manufacture the most advanced AI chips domestically. This move is part of the Trump administration's strategy to maintain America's technological edge. Vance cautioned against excessive regulation that could hinder technological progress.

As posted in yesterday’s article, I am looking for sign that INTC could make a possible daily uptrend, and with the news of U.S. Vice President Vance saying that advanced AI chips would be done domestically, this should help INTC, and we saw how market have reacted to it.

Together with the latest processor, the Intel Core Ultra 9 275HX, which has received positive reviews for its performance and battery life enhancements, I would think that the INTC bulls are back to try building a daily uptrend expansion, as seen from the RSI, we are seeing an increase steadily moving towards the overbought region though.

One more signals is the RSI cross above the RSI MA, which normally signal a longer term upside, so this might be a good time to consider INTC.

DoorDash (DASH) reported robust Q4 results with a 25% increase in revenue to $2.9 billion and a 19% rise in orders. The company achieved an all-time high in monthly active users, driven by improvements in merchant selection and category offerings, contributing to a strong performance in the food delivery sector.

Summary

I would think now the focus on AI revolution is getting clearer, as chips maker would need to adjust their strategy while the new administration would try to lessen the regulation, but this might be still in early stages.

While it is still early, we could plan our strategy around it if you are into the tech and AI stocks, as I foresee some rotation to tech and AI stocks coming really soon.

Appreciate if you could share your thoughts in the comment section whether you think market can continue in a positive mixed mode while investors rotate into tech and AI stocks.

@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.