Stocks opened higher Tuesday after President Donald Trump returned to office and issued a barrage of executive orders, including several that will have an impact on businesses and the economy.
The Dow Jones Industrial Average and S&P 500 were up 0.6% and 0.4%, respectively about 15 minutes the opening bell, while the Nasdaq Composite rose 0.1%. Stocks finished higher on Friday—ahead of a break for Martin Luther King Jr. Day—and posted their best weekly performance since the week of the presidential election in early November.
Among the dozens of orders signed after the inauguration on Monday, Trump called on federal agencies to take steps to reduce inflation, develop new energy sources and deport unauthorized immigrants. While he did not implement tariffs as he had previously pledged to do on “day one”, Trump said that the administration is considering 25% tariffs on Mexico and Canada, and he also said an “External Revenue Service” would be established “to collect “massive amount of money pouring into our treasury coming from foreign sources.”
Among noteworthy movers early Tuesday, shares of Dow component 3M (MMM) were up more than 5% after the conglomerate reported better-than-expected earnings. Financial services provider Schwab (SCHW) and homebuilder D.R. Horton (DHI) were up 6% and 4%, respectively, after reporting strong quarterly results. Shares of Netflix (NFLX), which is scheduled to release its earnings report after the closing bell, were up about 1%
Shares of major technology companies, which helped spearhead last week’s rally, were mixed this morning. EV maker Tesla (TSLA) and iPhone maker Apple (AAPL) each dropped more than 3%, while Microsoft (MSFT) was down slightly. Nvidia (NVDA), Alphabet (GOOGL), Amazon (AMZN) and Meta Platforms (META) were gaining ground.
The yield on 10-year Treasurys, which is sensitive to expectations about where interest rates are headed, was at 4.57%, down from 4.61% on Friday and at its lowest level in two weeks. Better-than-expected inflation data last week sent the yield sharply lower as investor hopes were renewed that the Federal Reserve could cut its benchmark rate again in the coming months.
Bitcoin was trading at $103,800 recently, up from an overnight low of around $100,000 but well below the record high of above $109,000 hit yesterday morning ahead of Trump’s inauguration. The digital currency has gained about 50% since the election amid hopes that the crypto-friendly administration will adopt policies that benefit the asset class. Trump made no mention of crypto yesterday, dashing hopes of some who thought he would take immediate steps that would support the market.
Gold futures were down slightly this morning at $2,745 an ounce, while crude oil futures fell about 2%.