The big market story today is the return of Donald Trump. After being sworn in yesterday, Trump signed a flurry of executive orders whose impacts are rippling through the market.
In addition, market participants are watching what Trump says about tariffs closely. After Trump referenced 25% tariffs on Canada and Mexico by February 1st markets briefly plummeted last night, but have since rebounded. Here’s a look at where markets stand as of 11:10 a.m. ETF:
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Dow Jones Industrial Average: Up 385.43 (+.89%)
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S&P 500: Up 29.81 (+.50%)
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Nasdaq Composite: +37.54 (+.21%)
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Russell 2000: Up 3.63 (+1.35%)
Here are some of today’s biggest storylines.
Dow Jones Leads All Indexes
The Dow Jones leads the S&P 500 and Nasdaq Composite in today’s trading. What’s driving its outperformance? 3M (NYSE: MMM) is up nearly 5% after reporting earnings that surpassed expectations.
The company reported earnings per share of $1.68, which beat expectations of $1.66. Looking forward to guidance for next year, 3M is projecting EPS of $7.60 to $7.90, which is slightly below Wall Street expectations at its midpoint. Yet, investors are overlooking this guidance as the stock is performing well today.
Other stocks rising in the Dow include Caterpillar, Boeing, Home Depot, and UnitedHealth. Overall, the Industrial sector is seeing the strongest performance at 1.63% today. The worst performing sectors are Information Technology (-.26%) and Energy (-.56%).
Apple and Tesla Fall
Shares of Apple (Nasdaq: AAPL) are getting hammered this morning, down 4.26% as of 11:20 a.m. ET. The other notable loser when looking at megacap stocks is Tesla (Nasdaq: TSLA), which is down around 3%.
What’s weighing on these two stocks today? Data out of China isn’t helping. Both Tesla and Apple rely on Chinese sales for their products in an outsized way. Data from Counterpoint Research shows Apple iPhone sales fell 18% in the holiday season. The company has struggled to keep momentum in China as government mandates have favored local smartphone makers. In addition, Apple may struggle as AI features that will soon become the main selling point in smartphone carry privacy concerns that Apple may have a tough time balancing.
Tesla has been rallying in large part thanks to Elon Musk’s close relationship with Donald Trump, but the company is down 3% today after Trump signed an executive order that directs his administration to consider removing EV subsidies. The executive order doesn’t explicitly remove Federal Rules that favor EV cars, but does challenge state-level policies that restrict gas-powered cars.