Stocks ended mixed Tuesday, as markets reacted to the latest round of tariffs from President Donald Trump and awaited comments on its effects for the U.S. economy from Federal Reserve Chairman Jerome Powell.
The Dow Jones Industrial Average climbed 123.24 points, or 0.28%, to finish the session at 44,593.65, while the S&P 500 added 0.03% to close at 6,068.50 and the tech-heavy Nasdaq slipped 0.36% to end the day at 19,643.86.
Apple rose 2.2% after The Information reported that the computer giant was partnering with Alibaba to roll out artificial intelligence features for iPhone users in China.
The companies have submitted the Chinese AI features they co-developed for approval by China's cyberspace regulator, the report said.
Updated at 12:26 PM EST
Tesla's Open distraction
Tesla (TSLA) shares extended their recent slump as analysts and investors counted the cost, in terms of potential stake sales, lost time and the broader prospect of even more distractions for CEO Elon Musk, following his unsolicited $97.4 billion bid to takeover ChatGPT creator OpenAi.
OpenAI CEO Sam Altman rejected the deal on face, calling in "ridiculous" while ramping up his years-long feud with Musk, whom he co-founded the AI giant with in 2015.
"Altman is the golden boy of the AI Revolution but Musk has massive power in the Beltway and this chain of events is likely just the start of a bigger soap opera poised to play out between them," said Webush analyst Dan Ives.
"The AI Arms Race is heating up in Big Tech and OpenAI has a very strong market position which poses a risk to other tech players - including Musk," he added.
Tesla shares were last marked 4.5% lower in mid-day trading and changing hands at $334.80 each, a move that extends their one-month decline to around 17%.
Related: Analyst revisits Tesla stock rating as Musk targets OpenAI takeover
Updated at 10:23 AM EST
No Rush
The Federal Reserve is in "no hurry" to lower its key lending rate, Chairman Jerome Powell told lawmakers in prepared remarks for his semi-annual testimony to the Senate Banking Committee, adding that the economy remains strong and labor markets aren't stoking inflation.
"The economy is strong overall and has made significant progress toward our goals over the past two years," Powell said. "We do not need to be in a hurry to adjust our policy stance. We know that reducing policy restraint too fast or too much could hinder progress on inflation."
"We are attentive to the risks to both sides of our dual mandate," Powell added. "Policy is well positioned to deal with the risks and uncertainties that we face."
Today, Chair Powell presents the semiannual Monetary Policy Report to the U.S. Senate Committee on Banking, Housing, and Urban Affairs: https://t.co/807Ho1H9Ndhttps://t.co/pgnEGEOsSt
— Federal Reserve (@federalreserve) February 11, 2025
Watch live: https://t.co/TL8c2ySyqe pic.twitter.com/smkTu70w3x
Updated at 9:33 AM EST
Red open
The S&P 500 was marked 18 points, or 0.3% lower in the opening minutes of trading, with the Nasdaq slipped 85 points, or 0.43%.
The Dow was marked 1027 points lower while the mid-cap Russell 2000 dipped
Benchmark 10-year Treasury note yields added another basis point to trade at 4.531% ahead of Powell's Senate Banking Committee testimony at 10:00 am Eastern time.
"Powell is likely to address inflation, the Fed's slower and measured approach to rate cuts this year, and the potential inflationary effects of tariffs," said Michael Rosner, managing director, Raymond James, based in Birmingham, MI.
"We anticipate one or two rate cuts this year and it's unlikely that we will see any more given the strong economy, labor market, and stickiness of inflation," he added.
S&P 500 Opening Bell Heatmap (Feb. 11, 2025)$SPY -0.31% 🟥$QQQ -0.52% 🟥$DJI -0.26% 🟥$IWM -0.88% 🟥 pic.twitter.com/Z3NIUY4amb
— Wall St Engine (@wallstengine) February 11, 2025
Updated at 8:40 AM EST
Coke adds price
Coca-Cola (KO) shares jumped firmly higher after the iconic drinks group saw the first increase in north American sales volumes in more than a year despite consistent price hikes across its vast global market.
Coca-Cola said volumes in north America rose 1% over the three months ending in December, helping it top the Street's overall revenue estimate with a topline of $11.40 billion. Profits were also 3 cents ahead of analysts' estimates at 55 cents per share.
Coca-Cola shares were marked 3.64% higher in premarket trading to indicate an opening bell price of $66.94 each.
$KO | Coca-Cola Q424 Earnings:
— Diamond Options💎 (@diamondoptions2) February 11, 2025
Comparable EPS: $0.55 (est $0.52)
Revenue: $11.50B (est $10.67B)
Outlook FY Adj Free Cash Flow: $9.50B
Outlook FY Organic Revenue Growth: 5% - 6% pic.twitter.com/FnjOI2Bn2i
Updated at 7:18 AM EST
Humana outlook improving
Humana (HUM) shares moved higher in early trading after the health insurance group issued a downbeat 2025 profit forecast following a solid set of fourth-quarter earnings.
Humana sees profit in the region of $16.25 a share over the coming year, shy of the Street's $16.71 forecast, noting that higher overall costs won't be offset by a modest increase in Medicare Advantage payouts.
However, the group did see its insurance segment benefit ratio, he amount of benefits it pays out relative to the revenue it takes in, narrowing to around 90.1% to 90.5% in 2025 from last year's tally of 91.9%.
“We were pleased with Humana’s solid finish to the year, while also reaffirming our outlook for 2025,” said CEO Jim Rechtin. “We are confident in our long-term strategy and 2025 will be a critical step in returning to compelling, normalized margins.”
Humana shares were last marked 2.1% higher in premarket trading to indicate an opening bell price of $272.40 each.
🚨 Humana Q4'24 Earnings Highlights $HUM 🚨
— Solix Trading (@Solix_Trade) February 11, 2025
🔹 Adj EPS: ($2.16) (Est. -$2.13) 🔴
🔹 Revenue: $29.21B (Est. $28.72B) 🟢 +10% YoY
🔹 Adjusted Benefit Ratio: 91.9% 📈
💼 FY25 Guidance: 🔹 Adjusted EPS: $16.25 (Est. $16.91) 🔴
🔹 GAAP EPS: ~$15.88
📊 Q4 Performance: 🔹 Adjusted…
Stock Market Today
President Donald Trump unveiled his plan to push levies on steel and aluminum imports by 15%, taking them to 25%, from the White House late Monday, telling reporters no "exemptions of any kind" would be made when the new duties are put in place March 4.
The move reminded investors once again of the latent trade-war risks that Trump's plans have inserted into the global economy, with the European Union has indicated its plans to assign targeted, yet reciprocal, tariffs on U.S.-made goods heading into the bloc.
“I deeply regret the US decision to impose tariffs on European steel and aluminum exports,” said European Commission President Ursula von der Leyen. “Unjustified tariffs on the EU will not go unanswered; they will trigger firm and proportionate countermeasures.”
Gold prices were the first to react, rising to a new all-time high of $2,942 an ounce in overnight trading while the U.S. dollar index held steady against a basket of its global peers at 108.251.
"A global trade war could cause widespread economic damage, increasing the appeal of safe-haven gold," said Ricardo Evangelista, senior analyst at ActivTrades.
"At the same time, American protectionism is likely to push up prices for imported goods, driving inflation higher and enhancing the appeal of the precious metal, which is seen as a hedge against monetary devaluation," he added.
Related: Gold price eyes $3,000 as bullion surges on Trump tariff risks
Treasury bond yields nudged modestly higher as well, with benchmark 10-year notes rising past the 4.5% mark and last trading at 4.253%, while 2-year notes were marked at 4.281% ahead of Powell's testimony to the Senate Banking Committee later this morning.
On Wall Street, stocks are set for a modestly weaker open on the heels of last night's solid close, with futures contracts tied to the S&P 500 indicating a 20-point opening bell decline.
Futures linked to the Dow Jones Industrial Average, meanwhile, are priced for a 90-point pullback with the tech-focused Nasdaq called 100 points lower.
Tesla (TSLA) CEO Elon Musk unveiled a surprise $97.4 billion bid for OpenAI, the nonprofit backed by Microsoft (MSFT) , even as the group is nearing a funding round with SoftBank (SFTBY) that could value it closer to $300 billion.
More Wall Street Analysis:
- Goldman Sachs analysts warn on Trump tariff impact for stocks
- Analyst predicts stocks likely to join the S&P 500 in 2025
- Every major Wall Street analyst's S&P 500 forecast for 2025
In Europe, the regional Stoxx 600 benchmark slipped 0.03% in early Frankfurt trading, with Britain's FTSE 100 down 0.09% in London.
Overnight in Asia, the regionwide MSCI ex-Japan index was marked 0.48% lower into the close of trading, while the Nikkei 225 was closed for Japan's traditional February Fountain Day holiday.
Related: Veteran fund manager issues dire S&P 500 warning for 2025
