Daily Market Recap – Tuesday Feb 11, 2025
Equities Struggle for Direction Amid Policy Uncertainty
U.S. equities finished mixed on Tuesday, with the Dow gaining 0.28%, the S&P 500 flat at +0.03%, and the Nasdaq slipping 0.36%, while the Russell 2000 declined 0.53%. Markets fluctuated throughout the session as investors awaited January’s CPI report and further clarity on Trump’s tariff policies. Energy stocks, refiners (PSX), chemicals, banks, media, and China tech outperformed, while medical devices, payments, travel-related stocks, and auto suppliers lagged. Big tech was mostly lower, with Tesla (TSLA) notably weak, though Apple (AAPL) stood out on AI-related headlines.
In the commodities space, WTI crude oil gained 1.3% following Monday’s rally, while gold dipped 0.1%. The dollar index declined 0.4%, while Bitcoin futures slumped 2.5%. Treasuries weakened as the curve steepened following a mixed performance on Monday.
Tariffs, Fed Testimony, and CPI Awaited
Trump formally signed 25% tariffs on steel and aluminum imports, with further reciprocal tariffs expected later this week, keeping trade policy uncertainty elevated. AI optimism remained a key upside narrative, supported by an Apple (AAPL) and Alibaba (BABA) partnership to bring AI features to iPhones in China. However, hawkish Fed comments, concerns over trade disruptions, and extended tech valuations weighed on sentiment.
Fed Chair Jerome Powell’s testimony before the Senate Banking Committee largely reiterated that the Fed is in no rush to cut rates, stating that while inflation is closer to the 2% target, risks remain to the upside. Powell also acknowledged that tariffs could put upward pressure on inflation but deferred judgment on their full impact. Other Fed officials echoed similar cautionary stances, with Cleveland Fed President Hammack highlighting upside inflation risks and NY Fed President Williams emphasizing that policy is well positioned to achieve the Fed’s goals.
Investors are now focused on Wednesday’s CPI release, which follows mixed inflation signals from recent economic data. Powell’s second day of testimony, along with a $42 billion 10-year note auction, will also be in focus. Later in the week, the market will digest PPI data, retail sales, industrial production, and business inventories.
Earnings Highlights and Corporate Developments
Apple (AAPL) announced a partnership with Alibaba (BABA) to bring AI-powered features to iPhones in China, providing a rare tailwind amid broader tech weakness.
JPMorgan (JPM) COO Piepszak said Q1 trading revenue and investment banking fees could both rise double digits year-over-year.
Intel (INTC) gained after Vice President Vance said the White House would prioritize U.S. manufacturing of AI systems.
Coca-Cola (KO) reported organic growth of +14%, beating estimates by 700 basis points, with strong pricing power supporting performance.
Shopify (SHOP) beat expectations, though the bar for upside was high, limiting stock gains.
Humana (HUM) and Fidelity National Information Services (FIS) both missed and guided below expectations for 2025, weighing on sentiment.
Phillips 66 (PSX) surged after reports that activist investor Elliott has amassed a $2.5 billion+ stake and plans to push for a midstream business spin-off.
BP (BP) promised a "fundamental reset" following a steep decline in Q4 earnings.
Notable Gainers & Decliners
Gainers:
SelectQuote (SLQT) +30.8%: Posted strong fiscal Q2 results, raised FY25 guidance, and announced a $350M strategic investment from Bain Capital, Morgan Stanley Private Credit, and Newlight Partners.
Lattice Semiconductor (LSCC) +7.7%: Q4 revenue and earnings in line, highlighted record design wins and strong margins, with Q1 guidance ahead of expectations.
DuPont (DD) +6.9%: Q4 earnings beat expectations, citing improvements in semiconductor demand and water/medical packaging markets.
Intel (INTC) +6.1%: Gained on White House policy favoring U.S. AI chip production.
Phillips 66 (PSX) +4.7%: Activist Elliott's $2.5B+ stake report fueled optimism about potential restructuring.
Decliners:
Fluence Energy (FLNC) -46.4%: Missed Q1 revenue, EBITDA, and EPS estimates, cut FY25 guidance, and received multiple downgrades on weak execution and pricing concerns.
Viasat (VSAT) -21%: Disclosed plans to exit certain EMEA ground network infrastructure locations, leading to a $130M-$180M impairment charge.
Fidelity National Information Services (FIS) -11.5%: Missed Q4 revenue estimates, guided FY25 revenue and EBITDA below consensus, disappointing investors.
Amkor Technology (AMKR) -11.4%: Weaker Q1 guidance, flagged supply chain headwinds, geopolitical risks, and a sequential drop in communications end markets.
Marriott (MAR) -5.4%: Q4 EPS and revenue beat expectations, but FY25 EPS forecast fell short due to weaker performance in Greater China and slower share repurchases.
Investment Takeaways
The market remained rangebound ahead of Wednesday’s CPI report, with Fed testimony reaffirming a cautious approach to rate cuts. While tariff-related uncertainty lingers, AI optimism continues to provide selective upside in tech stocks. The strong retail earnings cycle and activist investor moves in energy and industrials highlight ongoing sector rotation. However, policy uncertainty, potential inflationary pressures from tariffs, and extended equity valuations remain key risks for investors in the near term.