Positive - Markets react positively to softening trade tariff policy, showing improvements and easing tariff war fears.

From Nasdaq: 2025-02-03 18:02:00

Monday’s trading session resulted in slight negative closes across major indexes, but improvements were seen throughout the day with the Dow finishing -122 points, S&P 500 -45, Nasdaq -235, and Russell 2000 -27. An immediate retraction of a 25% tariff on imported goods from Mexico eased tariff war fears with potential negotiation ahead.

Economic prints during the trading day showed positive signs with S&P Manufacturing PMI for January at +51.2 and ISM Manufacturing at +50.9%, reaching highs not seen since 2022. The manufacturing sector has faced challenges, but recent reports show growth and potential for job creation.

Earnings reports after the bell included Palantir posting earnings of 14 cents per share and revenues of $828 million, NXP Semiconductor exceeding estimates with earnings of $3.18 per share, and Clorox surpassing earnings estimates with $1.55 per share. Market expectations for Tuesday include a labor market print and a full complement of earnings reports, including PayPal, PepsiCo, and Spotify.

Investors can access Zacks’ picks for $1 for 30 days to explore portfolio services like Surprise Trader and Technology Innovators that have shown significant gains in recent years. Several companies, including Palantir, NXP Semiconductor, and Clorox, have released their earnings reports and provided guidance for the upcoming quarters. Expectations for the stock market on Tuesday include labor market data and a full slate of earnings reports from notable companies.



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