We saw the stock market on Tuesday (15 April) opened higher but it could not sustain throughout the entire session, with modest declines across the indices.
S&P 500 closed lower by 0.17%, NASDAQ declined by 0.05% and DJIA ended the session 0.38% lower. We are seeing that investors comprehending the potential impact of tariffs following the multiple trade-related headlines.
That caused limited movement and sentiment for both the bulls and bears. We have some of these trade developments, where President Trump hinted at possible tariff changes for the auto sector.
A Bloomberg report indicated minimal progress in trade talks between the EU and US. The Department of Commerce initiated Section 232 investigations into imports of semiconductors, semiconductor manufacturing equipment, pharmaceuticals, and pharmaceutical ingredients, raising concerns about potential tariff increases.
Positive Earnings From Banks Well Received
We saw Bank of America (BAC) and Citigroup (C) posted positive earnings and both was well received and was up 3.60% and 1.76% respectively. This helped to boost the overall equity market,
Though we saw the major indices ended the session modestly negative, we saw that the market breadth was positive and the advancers outnumbering decliners by a 3-to-2 margin at the NYSE and a 4-to-3 margin at the Nasdaq.
S&P 500 Technology Sector Led The Pack
We saw some of the big tech names in significant gains, and this has helped the technology sector to lead the pack, ended the session 0.36% higher. $Palantir Technologies Inc.(PLTR)$ contribute the most with 6.24% gain, followed by Hewlett Packard Enterprise Co (HPE) with 5.11% gain.
Financials sector gained 0.25% with help from $Bank of America(BAC)$ which gained 3.60% after itrs earnings, followed by Blackstone (BX) which gained 2.35%.
Bank of America (BAC) reported strong first-quarter results, with a 6% revenue growth driven by net interest income and wealth management. The bank's CEO, Brian Moynihan, emphasized the resilience of consumer spending and credit quality, contributing to a $7.4 billion net income.
Citigroup (C) also posted positive earnings, with CEO Jane Fraser highlighting a $4.1 billion net income and a 9.1% return on tangible common equity. The bank saw significant growth in markets revenue and wealth management, while returning $2.8 billion to shareholders.
The lagger sector was consumer discretionary which closed 0.72% lower after we saw names like Ford Motor Co (F) and Ulta Beauty, Inc (ULTA) losing 2.68% and 2.23% respectively.
Yield Settled Mixed Even When Treasuries Was Higher
We saw treasuries closed higher, extending the previous day's gains. Investors demanding higher yield to own 30-year Treasuries over two-year maturities has increased for nine straight weeks.
The 10-year yield dropped four basis points to 4.32%, while the 2-year yield remained unchanged at 3.83%.
Stocks To Watch
CoreWeave (CRWV) has become the first cloud provider to offer $NVIDIA(NVDA)$ new Grace Blackwell GPUs at scale. Despite this milestone, CoreWeave's stock fell 7% on Tuesday, while Nvidia saw a 1.4% rise. Companies like Cohere and IBM (IBM) are already leveraging these GPUs for enhanced AI performance, with Cohere noting significant improvements in training large language models.
With this, it looks like the demand for GPUs might not reduced in the near term, what Nvidia might to handle might be on the licensing charges that could be impacting their earnings as part of the tariffs movement.
In a significant leadership change, Mark Rogers, Apple's (AAPL) executive in charge of enterprise sales and Western Europe, announced his departure after 27 years. This move comes as Apple navigates ongoing challenges, including tariff impacts. Apple's shares ended the day with a slight loss.
$Meta Platforms, Inc.(META)$ CEO Mark Zuckerberg considered spinning off Instagram in 2018 due to potential antitrust concerns, as revealed during an FTC trial. This strategic contemplation reflects ongoing scrutiny over big tech companies and their market dominance.
$Interactive Brokers(IBKR)$ announced a mixed Q1 2025 earnings report, with earnings slightly below analyst estimates but revenue surpassing expectations. The company also declared a four-for-one stock split to increase accessibility for investors.
I think there is some potential for upside as the bulls have taken over the 26-EMA level and push it above the 200-day period, and we are seeing RSI also gaining momentum to move away from the oversold region.
We can continue to watch IBKR as I foresee that there would be investors confidence growing as it approach the stock split, and we could see IBKR above the 50-day period in this week or early next week.
Johnson & Johnson (JNJ) projected a $400 million impact from tariffs in 2025, primarily affecting its MedTech division. Despite these challenges, the company reaffirmed its full-year earnings outlook and slightly increased its sales guidance.
Summary
I think the short rally cannot be sustained because there are still uncertainities on how the tariffs negotiation and how it would eventually be like at the end.
As investors, I would think that we remain long term and plan to add more shares when your target price is reached, remain invested in the market because this phase might passed, it is just a matter of time.
Appreciate if you could share your thoughts in the comment section whether you think market would continue to trade in a mixed mode while we ride out the uncertainities because of the tariffs turmoil.
@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.
Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.
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