Stocks moved higher Tuesday as investors monitored the latest developments in the Trump administration’s decision to impose tariffs on leading trade partners and digested a slew of corporate quarterly earnings reports.
The S&P 500 and Nasdaq Composite were up 0.6% and 1.2%, respectively, in midday trading, while the Dow Jones Industrial Average rose 0.1%. Stocks fell on Monday as investors kept close tabs on trade-related developments after Trump over the weekend signed executive orders calling for tariffs on Canada, Mexico and China.
Trump decided yesterday to delay by 30 days the 25% tariffs on Mexico and Canada that were scheduled to go into effect Tuesday. But 10% tariffs on Chinese imports went ahead as planned, leading Beijing to announce it would impose duties on imports of several U.S. products starting next week.
Among noteworthy movers on Tuesday, Palantir (PLTR) shares were up 24%, leading S&P 500 and Nasdaq gainers, after the analytics software provider reported better-than-expected fourth-quarter results and issued a rosy outlook amid booming AI-related demand. Spotify (SPOT) shares rose 11% after the streaming audio service reported strong revenue and subscriber numbers.
Shares of Merck (MRK) were down nearly 11%, leading Dow decliners, after the pharmaceuticals giant issued a disappointing outlook, while fellow drug maker Pfizer (PFE) fell 1.5% following its earnings release. Shares of PepsiCo (PEP) were down more than 4%, while Estee Lauder (EL) slid 17% after releasing quarterly results.
Large-cap technology stocks were up across the board, led by a 2.5% gain for AI chipmaker Nvidia (NVDA), which has fallen sharply over the past week after the revelation that Chinese startup DeepSeek had built a low-cost, high-performing AI model. Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), Meta Platforms (META), Tesla (TSLA) and Broadcom (AVGO) also gained ground. Alphabet is due to report quarterly results after the closing bell today, while Amazon’s earnings release is scheduled for Thursday.
The yield on 10-year Treasurys, which is correlated with market expectations about where interest rates are headed, was at 4.54% recent trading, little changed from yesterday’s close.
Bitcoin was around $99,100, down from an overnight high of $102,500, after a volatile day of trading yesterday sparked by the uncertainty surrounding tariffs. Gold futures were up 0.5% at around $2,870 an ounce, trading at record high levels, while WTI crude oil futures fell 0.5%.
What Analysts Think of AMD Ahead of Earnings Tuesday
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Advanced Micro Devices (AMD) is set to report its fourth-quarter results after the market closes Tuesday, with analysts projecting revenue and earnings growth on strong demand for AI chips.
AMD is expected to report revenue of $7.54 billion, up 22% year-over-year, and earnings of $1.1 billion, or 67 cents per share, up from $667 million, or 41 cents per share, a year earlier. Of the 14 analysts covering the stock tracked by Visible Alpha, eight have issued a “buy” or equivalent rating, compared with five “hold” ratings, and one “sell.” Their consensus price target is $164.
The stock was up 3% at around $118 in midday trading Tuesday. AMD shares have taken a hit over the past year, losing about a third of their value, amid concerns about the chipmaker’s outlook and ability to compete with Nvidia’s (NVDA) offerings.
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However, in notes to clients last week, Bank of America and Raymond James analysts suggested competition in the AI space from Chinese firms like DeepSeek, which rocked markets last week with its claims of a sophisticated, cost-efficient AI model, could push U.S. tech firms to spend even more on AI, to the benefit of chipmakers like AMD.
“Spending for AI continues unabated,” Citi analysts said last week, pointing to Meta’s (META) plans to invest $60 billion to $65 billion in capital expenditures this year. That level of AI spending is “good news” for AMD, as well as rivals like Broadcom (AVGO), the analysts said.
Spotify Jumps as Streamer Posts First Year of Profitability
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Spotify (SPOT) shares jumped Tuesday after the Swedish audio streaming giant posted its first full-year profit and quarterly revenue that beat estimates.
Spotify, which had been cutting costs in recent years, said fourth-quarter revenue jumped 16% year-over-year to 4.24 billion euros ($4.38 billion). That exceeded the 4.16 billion euros analyst consensus from Visible Alpha. The company’s net profit of 367 million euros, versus a loss of 70 million euros in the previous year, was, however, below estimates of 407.7 million euros.
Still, subscriber numbers soared. Monthly active users during the fourth quarter climbed 12% to 675 million, and premium subscriptions came in at 263 million. The numbers both exceeded forecasts Spotify made of 665 million MAUs and 260 million premium subscribers in the fourth quarter, as well as Visible Alpha’s estimates.
Looking ahead, Spotify forecast revenue of 4.2 billion euros, 678 million MAUs and 265 million premium subscribers in the first quarter of 2025.
Spotify shares were up 11% in recent trading and have gained about 170% over the past 12 months.
Merck Shares Slide on Soft Outlook
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Merck shares tumbled Tuesday morning after the drugmaker’s soft outlook outweighed fourth-quarter revenue that topped expectations.
Merck (MRK) reported $15.62 billion in revenue for the quarter, up 7% year-over-year and above the $15.43 billion analysts had expected, according to estimates compiled by Visible Alpha. The company’s net income came in at $3.74 billion, or $1.48 per share, compared to a $1.2 billion loss a year ago but below the $3.92 billion analysts had expected.
After adjusting for one-time charges like costs related to acquisitions, however, Merck’s adjusted net income of $4.37 billion topped estimates of $4.21 billion.
For 2025, the drugmaker expects revenue to come in between $64.1 billion and $65.6 billion, with adjusted earnings per share forecast between $8.88 and $9.03 per share. Analysts had higher expectations, with the current 2025 consensus at $67.08 billion in revenue and $9.09 adjusted EPS.
Sales rose across most of Merck’s medication portfolio, with declining sales for Gardasil and Januvia attributed to lower demand in some international regions and lower pricing in the U.S., respectively.
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Merck shares were down nearly 11% in recent trading, leading decliners in the Dow Jones Industrial Average, and have fallen nearly 30% over the past 12 months.
Palantir Levels to Watch as Stock Soars on Strong Outlook
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Palantir (PLTR) shares soared in premarket trading Tuesday after the analytics software company’s fourth-quarter revenue and 2025 outlook sailed past Wall Street expectations amid robust demand for its AI platform.
Palantir shares have consolidated within an ascending triangle since late December, a chart pattern that signals a continuation of the stock’s longer-term uptrend. Indeed, the price looks set to stage a breakaway gap above the pattern after the better-than-expected quarterly results.
It’s also worth noting that the stock registered its highest daily volume on Monday since December’s triple witching trading session, suggesting pre-earnings accumulation.
Bars pattern analysis projects a potential upside target of around $170 and indicates a continuation of the stock’s uptrend until late March. Investors should watch key support levels on Palantir’s chart around $85 and $66.
Palantir shares were up 23% at around $103 shortly before Tuesday’s opening bell. Through the close of Monday’s regular trading session, Palantir shares had gained 11% so far in 2025 and had risen five-fold over the past 12 months amid growing demand for the company’s suite of AI-powered software offerings.
Read the full technical analysis piece here.
Major Stock Index Futures Mixed
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Futures tied to the Dow Jones Industrial Average were down 0.1%.
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S&P 500 futures were up 0.1%.
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Nasdaq 100 futures rose 0.2%.
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