After a whipsaw start to the week, U.S. stock futures hovered just above the flatline early Tuesday as investors prepare for a wave of mega-cap earnings and closely-watched economic data. Monday’s session closed mixed — with the Dow and S&P 500 inching higher while the Nasdaq dipped slightly, dragged down by Nvidia (NVDA).
The drop in NVDA came after reports that China’s Huawei is testing a new AI chip potentially capable of replacing Nvidia’s most advanced products, casting a shadow over sentiment in the AI sector.
But that’s just the beginning — the rest of this week features critical earnings from Apple (AAPL), Meta (META), Microsoft (MSFT), and Amazon (AMZN). Investors are closely listening for guidance, especially as President Trump’s volatile tariff policy continues to shake confidence and cloud investment outlooks.
“The going will get tougher from here,” noted Jonas Goltermann of Capital Economics, citing broad trade and economic uncertainty.
Trump’s Tariff Shift on Autos Could Be a Gamechanger
The Wall Street Journal reported that President Trump is expected to unveil changes to auto tariffs during a rally in Michigan today. He’s preparing to ease the burden by exempting certain auto parts used in U.S. manufacturing from overlapping tariffs, while allowing automakers to request reimbursement for duties already paid.
General Motors (GM) and Ford (F) both praised the move. GM CEO Mary Barra called discussions with the White House “productive,” while Ford said it “welcomes and appreciates” the decision.
Analysts caution that while this could alleviate some cost pressure, tariffs on the auto industry remain historically high. GM reports earnings this morning — keep an eye on the market’s reaction.
Corporate Earnings Parade Continues
Tuesday’s earnings lineup includes Coca-Cola (KO), Pfizer (PFE), and Spotify (SPOT) before the bell, while Visa (V), Starbucks (SBUX), and Mondelez (MDLZ) post after the close.
With over 180 S&P 500 companies reporting this week, investor attention will be squarely on forecasts. Many firms have already dialed back guidance in response to Trump’s trade policies. Still, Q1 earnings are projected to rise 10.9% year-over-year, according to LSEG data.
Economic Data in Focus: JOLTS and Consumer Confidence
Two key pieces of economic data hit the tape today:
- The JOLTS report, which measures job openings and labor turnover
- The Consumer Confidence Index, a forward-looking indicator on household sentiment
ING analysts noted that any weakness in JOLTS could weigh on the dollar and increase speculation of earlier rate cuts from the Fed.
Looking ahead, Wednesday brings the Q1 GDP report, expected to show the economy cooled to just 0.4% growth, down sharply from 2.4% last quarter.
Gold Slips, Oil Softens
Gold pulled back slightly on the news of Trump’s auto tariff adjustment. Treasury Secretary Scott Bessent emphasized that several nations are negotiating revised tariff terms with the U.S., and hinted that China must take the next steps to de-escalate tensions.
Meanwhile, oil prices dipped as traders weighed rising global supply against the murky economic picture painted by the trade standoff.
From the OP Trading Floor
Yesterday, OP chat scalped TSLA and WMT puts — and they paid big. All OP systems lit up green with solid results.
Today’s Setup:
- PYPL is setting up for a potential long entry — eyes on that name.
- Don’t forget, AC&I Live Stream is happening today. If you’ve completed the course, make sure you’re tuned in with Tracks as he breaks down today’s trading opportunities live.
Let’s keep stacking those gains. See you in chat.
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