A second major development in the tariff political drama came late Monday as the United States and Canada reached an agreement to pause Donald Trump&#8217;s proposed trade levies <a href="https://www.benzinga.com/topic/tariffs">&#8220;for at least 30 days.&#8221;</a>



Canadian Prime Minister Justin Trudeau announced the deal on social media platform X following a phone call with Trump. 



The tariff deal includes new border security commitments to combat fentanyl trafficking and organized crime, mirroring Trump's agreement with <a href="https://www.benzinga.com/government/regulations/25/02/43440692/us-mexico-agrees-on-one-month-tariffs-pause-stocks-rebound-peso-rallies">Mexican President Claudia Sheinbaum.</a>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">I just had a good call with President Trump. Canada is implementing our $1.3 billion border plan — reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl. Nearly…&mdash; Justin Trudeau (@JustinTrudeau) <a href="https://twitter.com/JustinTrudeau/status/1886529228193022429?ref_src=twsrc%5Etfw">February 3, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<h3 class="wp-block-heading">Canada Rolls Out $1.3 Billion Border Plan</h3>



Trudeau outlined a $1.3 billion border reinforcement initiative featuring:



<ul>
<li>Deployment of nearly 10,000 frontline personnel equipped with new helicopters, surveillance technology and enhanced coordination with U.S. agencies.</li>



<li>The appointment of a fentanyl Czar to spearhead drug interdiction efforts.</li>



<li>Official designation of cartels as terrorist organizations to enable tougher enforcement measures.</li>



<li>The creation of a Canada-U.S. Joint Strike Force targeting organized crime, fentanyl networks and money laundering.</li>



<li>A $200 million intelligence directive to enhance monitoring and enforcement along the northern border.</li>
</ul>



&#8220;Proposed tariffs will be paused for at least 30 days while we work together,&#8221; the Canadian prime minister said. 



<h3 class="wp-block-heading">Markets React: Canadian Dollar Rallies, Equities Gain</h3>



The tariff deal gave a reprieve Canadian assets that were battered by heightened uncertainty earlier Monday. 



The Canadian dollar rallied, with the USD/CAD exchange rate dropping to 1.4391, down from 1.46 levels prior to the news.



Canadian equities also advanced in after-hours trading, with the iShares MSCI Canada Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWC#NYSE">EWC</a>) rising over 1%.



Read Next.



<ul>
<li><a href="https://www.benzinga.com/government/regulations/25/02/43447339/trump-announces-us-sovereign-wealth-fund-hints-at-tiktok-ownership">Trump Orders US Sovereign Wealth Fund, Hints At TikTok Ownership: &#8216;I Have The Right To Do That&#8217;</a></li>
</ul>



Photo via Shutterstock.

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Trump, Trudeau Strike Border Security Deal, Tariffs On Canada Paused For 'At Least 30 Days '

Palantir Technologies Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>) reported fourth-quarter financial results after the market close on Monday. Here&#8217;s a look at the key details <a href="https://www.benzinga.com/pressreleases/25/02/b43448656/palantir-reports-q4-2024-revenue-growth-of-36-yy-u-s-revenue-growth-of-52-yy-issues-fy-2025-revenu">from the quarter</a>.



Q4 Earnings: Palantir reported fourth-quarter revenue of $827.52 million, beating the&nbsp;<a href="https://www.benzinga.com/calendars/earnings" target="_blank" rel="noreferrer noopener">consensus estimate</a>&nbsp;of $775.91 million. The company reported fourth-quarter adjusted earnings of 14 cents per share, beating analyst estimates of 11 cents per share. 



Palantir has now met or exceeded analyst estimates in six consecutive quarters, according to data from&nbsp;<a href="http://pro.benzinga.com" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



Total revenue was up 36% year-over-year and U.S. revenue grew 52% year-over-year. U.S. Commercial revenue grew 64% year-over-year to $214 million and U.S. Government revenue climbed 45% year-over-year to $343 million.



Palantir&#8217;s customer count grew 43% year-over-year and 13% on a quarter-over-quarter basis. The company said it closed 129 deals worth over $1 million during the quarter and 58 deals worth at least $5 million. Palantir generated $460 million in cash from operations and $517 million in adjusted free cash flow in the quarter. 



Palantir ended the quarter with $5.2 billion of cash, equivalents and short-term U.S. treasury securities.



&#8220;Our business results continue to astound, demonstrating our deepening position at the center of the AI revolution. Our early insights surrounding the commoditization of large language models have evolved from theory to fact,&#8221; said&nbsp;Alex Karp, co-founder and CEO of Palantir.



See Also: <a href="https://www.benzinga.com/government/regulations/25/02/43447339/trump-announces-us-sovereign-wealth-fund-hints-at-tiktok-ownership">Trump Orders US Sovereign Wealth Fund, Hints At TikTok Ownership: &#8216;I Have The Right To Do That&#8217;</a>



Guidance:&nbsp;Palantir expects first-quarter revenue to be in the range of $858 million to $862 million, versus estimates of $799.35 million. The company expects full-year 2025 revenue to be between $3.74 billion and $3.76 billion versus estimates of $3.52 billion. 



Palantir also guided for positive GAAP operating income and net income in each quarter of 2025 and said it anticipates full-year adjusted free cash flow between $1.5 billion and $1.7 billion. 



&#8220;We are still in the earliest stages, the beginning of the first act, of a revolution that will play out over years and decades,&#8221; Karp said in a letter to shareholders. 



&#8220;This is not an incremental advance or marginal acceleration of our business. This is a new phase. And the momentum we are seeing across sectors, both commercial and government, is unlike anything that has come before.&#8221;



Management will hold a conference call with analysts and investors to further discuss the quarter at 5 p.m. ET.



PLTR Price Action: <a href="https://www.benzinga.com/quote/PLTR" target="_blank" rel="noreferrer noopener">Palantir shares </a>were up approximately 10% year-to-date heading into the print. The stock was up 18.09% after-hours, trading at $98.99 at the time of publication Monday, according to <a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/top-stories/25/02/43432917/palantir-q4-earnings-countdown-bullish-charts-vs-bearish-analysts">Palantir Q4 Earnings Countdown: Bullish Charts Vs. Bearish Analysts</a></li>
</ul>



Photo: Shutterstock.



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="&#x1f534; WATCH LIVE: Palantir Technologies Q4 2024 Earnings Call &#x7C; $PLTR" width="500" height="281" src="https://www.youtube.com/embed/tjTnfbBBC0s?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div></figure>

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Palantir Q4 Earnings: Revenue Beat, EPS Beat, US Revenue Up 52%, Customer Count Up 43%, Strong Guidance

Asset manager Vanguard on Monday announced that it was slashing the fees associated with investing in its funds, saving investors <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43337274/why-voo-investors-should-keep-calm-despite-ai-stock-turbulence">up to $350 million in 2025 alone</a>.



What To Know: Vanguard has lowered the expense ratio across 87 of its funds, bringing its average asset-weighted fee down to just 0.07% versus an industry average of 0.44%, according to <a href="https://www.bloomberg.com/news/articles/2025-02-03/vanguard-s-average-fee-is-now-just-0-07-after-biggest-ever-cut?embedded-checkout=true">Bloomberg</a>.



The fee reductions, which became effective Feb. 1 and were announced in a <a href="https://corporate.vanguard.com/content/corporatesite/us/en/corp/articles/announcing-largest-fee-cut-vanguard-history.html">news release</a> Monday morning, represent the largest cut Vanguard has ever made. The cuts will lower investment costs for bond mutual funds, <a href="https://www.benzinga.com/etfs">ETFs</a>, U.S. equity, international equity and money market funds. 



&#8220;Lower fees mean fund investors can keep more of their returns and a competitive edge for our funds,&#8221; said Greg Davis, chief investment officer at Vanguard. 



See Also: <a href="https://www.benzinga.com/25/02/43443587/stocks-trim-losses-on-mexico-tariff-delay-gold-extends-records-tesla-sinks-6-whats-driving-markets-monday">Stocks Trim Losses On Mexico Tariff Delay, Gold Extends Records, Tesla Sinks 6%: What&#8217;s Driving Markets Monday?</a>



Vanguard has reduced its expense ratios more than 2,000 times since 1975 and was already one of the cheapest operators before the latest cuts. Following the cuts, 86% of Vanguard mutual fund and ETF assets are in the lowest-cost deciles of their peer group.



According to Bloomberg, Vanguard ETFs brought in $305 billion of inflows last year, which was close to an all-time high for the asset manager. 



"After paying for technology and investments that we need to make in the company, the way we effectively give the value back to our clients — who are also our owners — is through fee cuts. The larger we become, the lower it goes," Vanguard CEO Salim Ramji, reportedly told Bloomberg.



The cuts are specifically attractive for investors looking to increase exposure to fixed income. Vanguard&#8217;s average weighted fee on its actively managed <a href="https://www.benzinga.com/money/best-vanguard-bond-funds">bond funds</a> is now down to 0.1% versus an industry average of about 0.52%.



The report indicates that Vanguard recently released a <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/01/36485117/vanguard-predicts-bonds-to-make-strong-comeback-short-term-pain-can-lead-to-long-te">10-year outlook</a> showing that it expects U.S. bonds to outperform U.S. equities over the next decade. 



"Even if we're wrong, people's portfolios are out of balance and they need more bonds in there, even just as a ballast to diversify back to 60/40. But as they do that, they don't need to pay 50 basis points,&#8221; Ramji reportedly said. 



Read Next:



<ul>
<li><a href="https://www.benzinga.com/news/global/25/02/43442691/mexico-etf-faces-volatility-despite-temporary-tariff-reprieve">Mexico ETF Faces Volatility Despite Temporary Tariff Reprieve</a></li>
</ul>



Photo: Shutterstock

Mutual Funds

Vanguard Slashes Investing Fees, Saving Investors Millions: 'The Larger We Become, The Lower It Goes'

President Donald Trump announced plans for the creation of the first-ever U.S. sovereign wealth fund through an <a href="https://www.benzinga.com/topic/donald-trump">executive order on Monday. </a>



The fund, which aims to &#8220;monetize the asset side of the U.S. balance sheet for the American people,&#8221; will leverage government-owned assets to generate economic value, Treasury Secretary Scott Bessent said while speaking to the media at the White House.



&#8220;We&#8217;re going to have a Sovereign Wealth Fund, which we&#8217;ve never had,&#8221; Trump told reporters in the Oval Office. 



Bessent indicated the fund would include a variety of &#8220;liquid assets&#8221; and strategic holdings within the U.S. economy.



&#8220;The extraordinary size and scale of the U.S. government and the business it does with companies should create value for American citizens,&#8221; he stated.



<h3 class="wp-block-heading">President Eyes TikTok Inclusion, No Bitcoin Mention </h3>



While details remain limited, Trump indicated the fund could include the Chinese-owned social media platform TikTok.



&#8220;For example, TikTok—we&#8217;re going to be doing something perhaps with TikTok, and perhaps not. If we make the right deal, we&#8217;ll do it, otherwise, we won&#8217;t,&#8221; Trump said, adding, &#8220;I have the right to do that.&#8221;



The U.S. government previously mandated ByteDance, TikTok's parent company, to divest its U.S. operations by Jan. 19, 2025, or face a ban.



On his first day in office, Trump issued an executive order delaying the ban by 75 days to explore potential deals. 



One option under discussion is a joint venture where the U.S. government would hold a 50% stake in TikTok, allowing the platform to continue operating while addressing national security concerns.



Trump's idea that the U.S. strategic fund could take control of TikTok raises significant concerns about media influence and state-backed control of digital platforms, potentially reshaping the landscape of digital free speech and platform governance.



No mention of digital assets or Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) was made in connection with the sovereign wealth fund, though they were not explicitly ruled out. The largest cryptocurrency rose to $100,000, up by 3% as of 2:30 p.m. ET. 



Joseph Brusuelas, chief economist at RSM US LLP, voiced skepticism about the initiative, calling it "problematic at best&#8221; and indicating that fund's structure could invite &#8220;crony capitalism and corruption.&#8221;



His concerns stem from the lack of clarity on where the money will come from and how it will be allocated, particularly if tariff revenues are involved.



Brusuelas also raised doubts about the fund's objectives, asking what specific economic goals it aims to achieve and on what evidence those decisions will be based.



<h3 class="wp-block-heading">US-Mexico Tariff Talks Continue</h3>



Trump also addressed ongoing tariff negotiations with Mexico, following early morning confirmations that <a href="https://www.benzinga.com/government/regulations/25/02/43440692/us-mexico-agrees-on-one-month-tariffs-pause-stocks-rebound-peso-rallies">a 25% tariff had been temporarily placed on hold. </a>



&#8220;We haven&#8217;t agreed on tariffs yet, and maybe we will, maybe we won&#8217;t,&#8221; he stated.



Trump stressed border security concerns, particularly regarding fentanyl trafficking and illegal immigration. 



&#8220;We&#8217;ve had a great talk with Mexico. We&#8217;ve had good relations, but we have to stop fentanyl from coming in,&#8221; he said.



According to Trump, Mexico has agreed to deploy 10,000 soldiers permanently to the border. &#8220;They have a big incentive to do so,&#8221; he added, without specifying further details.



The iShares MSCI Mexico ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWW#NYSE">EWW</a>) slightly trimmed its session rally to 2.3%. The Mexican peso held gains, up 1%. 



<h3 class="wp-block-heading">US-Canada Trade Relations Under Scrutiny</h3>



Turning to trade relations with Canada, Trump criticized the country's business practices, claiming that U.S. banks are restricted from operating in Canada and that Canadian policies are unfair to American agricultural and automotive exports.



&#8220;We&#8217;re not treated well by Canada, and we have to be treated well,&#8221; Trump said. &#8220;They don&#8217;t take our agricultural product for the most part. They don&#8217;t take our cars. We take theirs.&#8221;



Trump hinted at continued negotiations with Canadian Prime Minister Justin Trudeau, with another call scheduled for later in the day.



Trump also reiterated his idea that Canada should become the 51st U.S. state, an outcome that would eliminate trade barriers.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/25/02/43445680/wall-streets-most-accurate-analysts-spotlight-on-3-financial-stocks-with-over-13-dividend-yields">Wall Street&#8217;s Most Accurate Analysts Spotlight On 3 Financial Stocks With Over 13% Dividend Yields</a></li>
</ul>



Photo: Chip Somodevilla/Shutterstock.com

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Trump Orders US Sovereign Wealth Fund, Hints At TikTok Ownership: 'I Have The Right To Do That'

Ontario Premier Doug Ford is scrapping a nearly $100 million contract with Elon Musk&#8216;s Starlink, citing U.S. tariffs that Ford says <a href="https://www.benzinga.com/topic/tariffs">threaten Canadian businesses. </a>



The deal, signed in November, was meant to deliver high-speed internet to 15,000 remote and rural locations across the province, but Ford now says Ontario will no longer do business with American firms until the tariffs are lifted, <a href="https://www.cbc.ca/news/canada/toronto/ford-ripping-up-province-contract-with-starlink-1.7448763">CBC </a>reports Monday.



What Happened: Ford announced Monday that Ontario will terminate its agreement with Starlink, a subsidiary of Musk's SpaceX, after President Donald Trump announced sweeping tariffs on Canadian goods over the weekend. Speaking in Etobicoke, Ford accused Musk of being part of a team that aims to "destroy families, incomes, destroy businesses."



Ontario&#8217;s procurement budget totals $30 billion annually, and Ford stated that American companies will be blocked from receiving government contracts until the tariffs are repealed. "U.S.-based businesses will now lose out on tens of billions of dollars in new revenues. They only have President Trump to blame," Ford said.



According to CBC, Ford has faced previous criticism over the Starlink contract, with Ontario Liberal Leader Bonnie Crombie calling for its cancellation last week. Crombie argued the province should have prioritized Canadian providers from the start. Opposition leaders, including NDP Leader Marit Stiles and Green Party Leader Mike Schreiner, also welcomed the decision, though they questioned why the contract was awarded to Musk's company in the first place.



Also Read: <a href="https://www.benzinga.com/news/global/25/02/43442691/mexico-etf-faces-volatility-despite-temporary-tariff-reprieve">Mexico ETF Faces Volatility Despite Temporary Tariff Reprieve</a>



Why It Matters: Ontario's decision to retaliate against the U.S. tariffs with procurement restrictions signals a deepening trade rift between Canada and its largest trading partner. The move could have major financial implications for American businesses that rely on provincial contracts, CBC reports.



Musk responded with "Oh well" on X, the platform he owns.



While Ford defended the original contract by stating that only two providers, Starlink and Xplore Inc., met Ontario's technical requirements, he now says a Canadian alternative must be pursued. He insisted the province has not paid Starlink anything yet and suggested legal action may be unnecessary to exit the deal.



The controversy comes as Starlink expands its footprint in Canada, now serving approximately 400,000 subscribers. Meanwhile, the satellite provider is also making headlines in the U.S. after teaming up with Apple Inc. and T-Mobile US Inc. to introduce Starlink-powered texting on iPhones, initially <a href="https://www.benzinga.com/25/01/43294364/apple-surprises-iphone-users-by-teaming-up-with-spacex-and-t-mobile-to-bring-starlink-satellite-texting-heres-what-you-need-to-know-about-the-new-feature">in a limited beta test.</a>



Read Next:



<ul>
<li><a href="https://www.benzinga.com/government/regulations/25/02/43440692/us-mexico-agrees-on-one-month-tariffs-pause-stocks-rebound-peso-rallies">US, Mexico Agree On 1-Month Tariff Pause: Stocks Rebound, Peso Rallies</a></li>
</ul>



Image created using photos from Shutterstock.

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Elon's Trump Alignment Costs Him Canada Starlink Contract: 'Oh Well'

Merck &amp; Co Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MRK#NYSE">MRK</a>) and Pfizer Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PFE#NYSE">PFE</a>) are duking it out for investor attention with <a href="https://www.benzinga.com/earnings">fourth-quarter earnings</a> being reported on Tuesday.



Both pharmaceutical heavyweights have very different technical setups, leaving investors to wonder which stock will have the upper hand.



Let's break down the charts and what the technical signals are saying about each company as they prepare to report.



<h1 class="wp-block-heading">Merck Stock's Mixed Signals: Bullish Short-Term, But Long-Term Resistance Looms</h1>



<figure class="wp-block-image size-full"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent020325&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="626" height="490" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/03115322/Screenshot-2025-02-03-at-10.22.11-PM.png" alt="" class="wp-image-763045" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/03115322/Screenshot-2025-02-03-at-10.22.11-PM.png 626w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/03115322/Screenshot-2025-02-03-at-10.22.11-PM-300x235.png 300w" sizes="(max-width: 626px) 100vw, 626px" /></a></figure>



<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent020325&amp;t=be2bearmibe3na1" target="_blank" rel="noreferrer noopener">Chart created using Benzinga Pro</a>



Merck stock has shown some solid short-term strength, with its stock price of $98.90 comfortably sitting above its eight-day and 20-day simple moving averages (SMAs) of $97.81 and $98.64, respectively. These short-term buying signals, along with a neutral Relative Strength Index (RSI) of 50.39, suggest a continuation of the current trend, barring any earnings surprises.



However, the story changes when looking at Merck stock&#8217;s long-term trend. Its 50-day SMA of $99.64 and 200-day SMA of $114.28 are higher than its stock price, indicating that the stock may face resistance moving forward. Merck&#8217;s Moving Average Convergence Divergence (MACD) of a negative 0.47 suggests bearish momentum in the near term, adding an element of risk.



On the flip side, analysts are bullish on Merck with a <a href="https://www.benzinga.com/quote/MRK/analyst-ratings">consensus target of $124</a>, representing an implied upside of 20.25%. That positive outlook could be enough to offset the short-term technical pressure, making Merck stock a bit of a mixed bag heading into earnings.



Read Also: <a href="https://www.benzinga.com/general/health-care/25/01/43321236/rfk-jr-and-big-pharma-stocks-to-watch-as-health-secretary-hopeful-answers-pointed-questions-on-drugs-insurance-trump-exec-orders">RFK Jr. And Big Pharma: Health Secretary Hopeful Answers Pointed Questions On Drugs, Insurance, Trump Exec Orders</a>



<h1 class="wp-block-heading">Pfizer Stock's Bearish Downtrend: Can It Overcome The Struggles?</h1>



<figure class="wp-block-image size-full"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent020325&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="626" height="490" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/03115333/Screenshot-2025-02-03-at-10.21.55-PM.png" alt="" class="wp-image-763046" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/03115333/Screenshot-2025-02-03-at-10.21.55-PM.png 626w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/03115333/Screenshot-2025-02-03-at-10.21.55-PM-300x235.png 300w" sizes="(max-width: 626px) 100vw, 626px" /></a></figure>



<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent020325&amp;t=be2bearmibe3na1" target="_blank" rel="noreferrer noopener">Chart created using Benzinga Pro</a>



In stark contrast, Pfizer stock is looking much weaker technically. The stock has been firmly entrenched in a bearish trend, with its share price sitting below its five-, 20- and 50-day exponential moving averages (EMAs), signaling ongoing selling pressure. Pfizer stock at $26.30 has eight-day SMA at $26.51 and the 20-day SMA at $26.56, both signals pointing to potential further downside.



Pfizer stock's 50-day SMA of $26.15 provides some minor support, but overall, the chart points to more trouble ahead. The MACD indicator of 0.04 shows only a glimmer of bullish potential, while the RSI of 47.61 reinforces the neutral sentiment surrounding the stock. While there's a chance for some short-term recovery, Pfizer's overall trajectory looks weaker than Merck's.



Despite the challenges, Pfizer's analyst <a href="https://www.benzinga.com/quote/PFE/analyst-ratings">consensus price target</a> is $36.74, offering an implied upside of 13.80%. However, with the Pfizer stock trading significantly below its 200-day SMA of $27.87, it's clear Pfizer has a tough road ahead.



<h1 class="wp-block-heading">Merck Vs. Pfizer: Who Will Win The Earnings Showdown?</h1>



When it comes to earnings, Merck's solid analyst outlook and bullish short-term signals seem to give it the edge over Pfizer, which is struggling with technical bearishness. 



While both stocks face risks, Merck's upside potential, supported by a 20% price target boost from analysts, makes it the more promising candidate for investors looking for stability and growth. 



Pfizer, on the other hand, remains a riskier play, though it does offer some upside potential if it can overcome its technical hurdles.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/trading-ideas/movers/25/01/43403416/is-big-pharma-about-to-win-goldman-sachs-weighs-in-on-340b-and-medicaid-shifts">Is Big Pharma About To Win? Goldman Sachs Weighs In On 340B And Medicaid Shifts</a></li>
</ul>



Photo: Merck: Zah108; Pfizer: Vadi Fuoco

Biotech

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Technicals

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Merck Vs. Pfizer: Which Pharmaceutical Giant Will Prevail In Q4 Earnings?

The U.S. and Mexico paused a planned 25% tariff for one month, agreeing to tackle security issues while reopening trade talks. Mexican President Claudia Sheinbaum confirmed the deal Monday, highlighting a troop deployment to curb fentanyl trafficking and a U.S. pledge <a href="https://www.benzinga.com/government/regulations/25/02/43440692/us-mexico-agrees-on-one-month-tariffs-pause-stocks-rebound-peso-rallies">to restrict arms smuggling.</a>



President Donald Trump called the agreement "very friendly," with high-level negotiations now led by Marco Rubio, Scott Bessent, and Howard Lutnick. Investors are watching the iShares MSCI Mexico ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWW#NYSE">EWW</a>) as trade uncertainty lingers. Also Read: <a href="https://www.benzinga.com/markets/25/02/43423288/trumps-tariffs-are-here-heres-what-will-get-more-expensive-from-canada-china-and-mexico">Trump&#8217;s Tariffs Are Here. Here&#8217;s What Will Get More Expensive From Canada, China, and Mexico</a>



<h3 class="wp-block-heading">The Rise Of EWW</h3>



The iShares MSCI Mexico ETF has gained popularity among investors looking to tap into Mexico's growing economy, which, for years, has been one of the largest and most dynamic in Latin America. As a country with significant trade ties to the U.S., including the automotive, manufacturing, and energy sectors, the ETF is essentially a proxy for the health of Mexico's stock market.



The ETF covers a wide range of sectors, with its top holdings being companies from consumer goods, financials, and industrials, many of which are highly sensitive to U.S. policies. This is reflected in its <a href="https://www.benzinga.com/quote/EWW">beta of 1.06%</a>, which means that it is more volatile than the overall market.



Notably, 2024 was a year full of challenges for the ETF. Various factors, including economic uncertainties and currency fluctuations beat down the fund. This was followed by Trump&#8217;s tariff plan revealed on Nov. 24, citing concerns over drug trafficking and illegal migration related to Mexico. This led to immediate market reactions, and EWW dropped 2.8% in after-hours trading that day. In the past year, the ETF price has crashed 25%.



<h3 class="wp-block-heading">What's Next For EWW?</h3>



Looking forward, the iShares MSCI Mexico ETF faces many hurdles, as a reflection of the economic shakeup in the country. 



Already, the Mexican <a href="https://www.benzinga.com/25/01/43103527/mexican-peso-canadian-dollar-slide-as-trump-threatens-25-tariffs-expert-eyes-price-hikes-on-typical-us-breakfast">Peso has weakened</a>, and while the tariff pause provides temporary relief, trade uncertainty remains. A prolonged dispute could disrupt trade flows, drive inflation higher, and risk a <a href="https://www.spglobal.com/market-intelligence/en/news-insights/research/how-trump-tariffs-could-impact-mexico-economy">recession </a>in Mexico. Although Mexico has avoided immediate retaliatory measures, future tensions could strain economic relations and impact market sentiment.



One potential silver lining for the ETF is the diversification it offers. With holdings across multiple sectors, including consumer goods, financials, and energy, the ETF may be better positioned to weather the storm compared to more narrowly focused funds. Additionally, the ETF could benefit from long-term structural trends in Mexico's economy, such as its growing <a href="https://www.investopedia.com/articles/markets-economy/062416/economics-mexicos-middle-class.asp#:~:text=Mexico's%20middle%20class%20accounted%20for,to%20this%20level%20by%202030.">middle class</a> and efforts to boost manufacturing and infrastructure.



However, for investors, uncertainty remains. While the tariff pause offers a temporary reprieve, the long-term impact on the Mexican economy and trade relations is unclear. The ability to adapt to shifting policies will be key, but for now, volatility persists.



EWW Price Check: The iShares MSCI Mexico ETF was up 2.5% at $50.22 at the time of publication Monday.



Read Next: 



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<li><a href="https://www.benzinga.com/government/regulations/25/01/43403716/3-u-s-auto-etfs-caught-in-the-crosshairs-as-trump-announces-25-tariff-on-mexican-imports">3 U.S. Auto ETFs Caught In The Crosshairs As Trump Announces 25% Tariff On Mexican Imports</a></li>
</ul>



Photo: Shutterstock

Mexico ETF Faces Volatility Despite Temporary Tariff Reprieve

Wall Street bounced back after President Donald Trump and Mexican President Claudia Sheinbaum agreed to a one-month suspension of tariffs following Mexico's pledge to bolster its military presence <a href="https://www.benzinga.com/government/regulations/25/02/43440692/us-mexico-agrees-on-one-month-tariffs-pause-stocks-rebound-peso-rallies">at the northern border.</a>



Earlier on Monday, markets had been rattled by Trump&#8217;s announcement of sweeping tariffs — 25% on all imports from Mexico and Canada and 10% on Chinese goods. The prospect of escalating trade tensions led to sharp early session declines.



The temporary tariff reprieve on Mexico has fueled speculation that Trump may be using tariffs as a negotiation tool rather than a definitive policy, potentially easing concerns they will remain in place if U.S. demands — centered on immigration and drug trafficking — are met.



Trump is set to speak with Canadian Prime Minister Justin Trudeau at 3 p.m. ET.



By midday in New York, the S&amp;P 500 and Nasdaq 100 were down 0.8%, trimming earlier losses, while the Dow nearly erased its decline entirely, reflecting renewed investor confidence in industrial and less tech-sensitive stocks.



Some of the Magnificent Seven stocks remained under pressure. Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) and Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) all faced sharp declines, by 6%, 4% and 3.8% respectively, amid concerns over worsening trade relations with China and the risk of retaliatory measures from Beijing.



In fixed income, long-term Treasury yields edged lower, while the U.S. dollar trimmed its early session gains. The Mexican peso rebounded sharply, rising over 1% by 12:30 p.m. ET, recovering from overnight losses of up to 2%.



Commodity markets experienced turbulence. Natural gas prices soared 11% on Monday, surpassing $3 per million British thermal units, while oil climbed 0.8%.



Safe-haven demand remained strong, with gold rallying 0.8% to a record high of over $2,810 per ounce.



Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) surged back to $99,000 following news of the U.S. pause on Mexico tariffs. 



<h3 class="wp-block-heading">Monday&#8217;s Performance On Major US Indices, ETFs</h3>



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Major Indices </td><td>Price</td><td>Chg 1-day %</td></tr><tr><td>Dow Jones</td><td>44,433.51</td><td>-0.1%</td></tr><tr><td>S&amp;P 500</td><td>5,994.65</td><td>-0.8%</td></tr><tr><td>Nasdaq 100</td><td>21,280.79</td><td>-0.9%</td></tr><tr><td>Russell 2000</td><td>2,257.74</td><td>-1.3%</td></tr></tbody></table><figcaption class="wp-element-caption">Updated at 12:38 p.m. ET</figcaption></figure>



According to&nbsp;<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent020325&amp;t=be2bearmibe3na1" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>&nbsp;data:



<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;eased 0.8% to $596.84.</li>



<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) eased 0.3% to $443.77.</li>



<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>)&nbsp;fell 0.9% to $517.15.</li>



<li>The&nbsp;iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) dropped 1.2% to $223.80.</li>



<li>The&nbsp;Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) outperformed, up 0.4%; the&nbsp;Technology Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) lagged, down 1.4%.</li>
</ul>



<h3 class="wp-block-heading">Monday&#8217;s Stock Movers</h3>



<ul>
<li>Stocks moving on earnings report include Tyson Foods Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSN#NYSE">TSN</a>), up 1.2%, IDEXX Laboratories Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IDXX#NASDAQ">IDXX</a>), up 11.2%. </li>



<li>Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>), NXP Semiconductors N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NXPI#NASDAQ">NXPI</a>) Equity Residential (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EQR#NYSE">EQR</a>), Clorox Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLX#NYSE">CLX</a>) are among large-cap companies reporting after the close.</li>



<li>Polaris Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PII#NYSE">PII</a>) tumbled 8% after UBS slashed the stock price target from $67 to $48. </li>
</ul>



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<li><a href="https://www.benzinga.com/25/02/43439462/us-manufacturing-confidence-tops-forecasts">US Manufacturing Confidence Tops Forecasts, Yet Price Pressures Intensify, &#8216;Could Become A Concern,&#8217; Economist Says</a></li>
</ul>



Photo via Shutterstock.

Broad U.S. Equity ETFs

IDXX

NVDA

NXPI

TSLA

Stocks Trim Losses On Mexico Tariff Delay, Gold Extends Records, Tesla Sinks 6%: What's Driving Markets Monday?

Elon Musk and his <a href="https://www.benzinga.com/news/24/11/41965420/elon-musk-vivek-ramaswamy-led-department-of-government-efficiency-opens-account-on-x-says-it-is-working-overtime">Department of Government Efficiency</a> have been granted access to a sensitive Treasury Department payment system containing personal data of millions of Americans receiving tax refunds, Medicare, Social Security and other payments from the federal government.



<h2 class="wp-block-heading">How Did This $6 Trillion Agency Fall Under Musk&#8217;s Purview? </h2>



According to the New York Times, Treasury Secretary Scott Bessent <a href="https://www.nytimes.com/2025/02/01/us/politics/elon-musk-doge-federal-payments-system.html">approved the access </a>late Friday, which coincided with the resignation of David Lebryk, a career Treasury official who clashed with DOGE over the system. The Bureau of Fiscal Service, normally run by civil servants, processes over $6 trillion annually.



<h2 class="wp-block-heading">Democrats Are Furious</h2>



Sen. Elizabeth Warren (D-MA), the top Democrat on the Senate Banking Committee sent a <a href="https://www.warren.senate.gov/imo/media/doc/final_-_rm_warren_letter_to_bessent_re_treasury_payment_system.pdf">letter</a> on Monday to Bessent demanding answers, calling Musk's "meddling&#8221; with a system that processes trillions in transactions "extraordinarily dangerous."



"I am alarmed that as one of your first acts as Secretary, you appear to have handed over a highly sensitive system responsible for millions of Americans' private data – and a key function of government – to an unelected billionaire and an unknown number of his unqualified flunkies,&#8221; Warren wrote.



Sen. Ron Wyden (D-Ore.), also a member of the Senate Finance Committee, <a href="https://www.finance.senate.gov/imo/media/doc/letter_from_senator_wyden_to_secretary_bessent_on_payment_systemspdf.pdf">did the same</a> on Friday. "I can think of no good reason why political operators who have demonstrated a blatant disregard for the law would need access to these sensitive, mission-critical systems,&#8221; he said. 



Rep. Alexandria Ocasio-Cortez (D-N.Y.) called the situation a five alarm fire following news that Musk was intending to merge the U.S. Agency for International Development with the State Department — a move that requires Congressional approval. "The people elected Donald Trump to be President ― not Elon Musk. Having an unelected billionaire, with his own foreign debts and motives, raiding US classified information is a grave threat to national security," AOC <a href="https://x.com/AOC/status/1886149143980032275">wrote</a> on X.



Musk said early Monday that Trump has "agreed" to the USAID shutdown, <a href="https://thehill.com/homenews/administration/5122521-musk-trump-agreed-usaid-should-be-shut-down/">according</a> to The Hill.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">This is a five alarm fire. The people elected Donald Trump to be President &#8211; not Elon Musk. Having an unelected billionaire, with his own foreign debts and motives, raiding US classified information is a grave threat to national security. This should not be a partisan issue. <a href="https://t.co/OkEfM1n1Ga">https://t.co/OkEfM1n1Ga</a>&mdash; Alexandria Ocasio-Cortez (@AOC) <a href="https://twitter.com/AOC/status/1886149143980032275?ref_src=twsrc%5Etfw">February 2, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<h2 class="wp-block-heading">Remember The Constitution?</h2>



The U.S. Constitution explicitly requires Senate confirmation for anyone wielding significant federal power, a requirement that Musk has apparently been enabled by President Donald Trump to ignore. This was demonstrated recently when Musk <a href="https://www.benzinga.com/25/01/43417749/elon-musks-aides-block-government-workers-from-federal-data-systems-report">installed numerous loyalists</a> throughout the government, essentially demanding access to many of the levers of power.



The mounting news of Musk-led takeovers and threats of more to come have heightened fears the Trump administration is consolidating power by sidelining career officials, not to mention stripping many Americans and institutions of much needed financial payments.



Now Read:



<ul>
<li><a href="https://www.benzinga.com/25/02/43425216/elon-musk-supports-putting-treasury-department-operations-on-blockchain-to-fix-irregularities">Elon Musk Says Treasury Officials &#8216;Breaking The Law Every Hour&#8217; By Approving Fraudulent Payments — DOGE Lead Wants A Blockchain Fix</a></li>
</ul>



Photo: Shutterstock.

Treasuries

Elon Musk, Says Elizabeth Warren, Is 'Meddling' With Trillions In US Treasury Via 'Unqualified Flunkies'

President Donald Trump's announced tariffs on Canada, Mexico and China could impact many sectors and see retailers and companies raising prices on consumers to offset<a href="https://www.benzinga.com/markets/25/02/43423288/trumps-tariffs-are-here-heres-what-will-get-more-expensive-from-canada-china-and-mexico"> the higher prices.</a>



Here's a look at the sectors and stocks that could be hurt the most by Trump's tariffs and retaliatory efforts by the three countries back on the U.S.



What Happened: Trump <a href="https://www.benzinga.com/government/regulations/25/02/43427091/as-trump-imposes-tariffs-on-americas-3-largest-trading-partners-this-macro-strategist-call">announced 25% tariffs </a>on imports from Canada and Mexico along with a 10% tariffs on items imported from China. Trump and Mexican President Claudia Sheinbaum announced Monday the U.S. tariffs on Mexico have been paused for one month. 



Canada fought back with retaliatory measures on U.S. imports.



Trump said he spoke with Canadian Prime Minister Justin Trudeau and plans to speak to the leader again at 3 p.m. ET Monday.



The tariffs were met with anger in Canada where sports fans booed the playing of &#8220;The Star-Spangled Banner,&#8221; the U.S. national anthem, at NBA and NHL sporting events over the weekend, as reported by <a href="https://deadline.com/2025/02/u-s-national-anthem-booed-nhl-nba-games-canada-tariffs-1236276207/">Deadline</a>.



NBA and NHL games involving teams from both countries typically play national anthems ahead of games.



Goods and Sectors Impacted: Here's a look at the top imports from Canada, Mexico and China that will be impacted if the tariffs stick.



Beer and Spirits: One of the companies that <a href="https://www.benzinga.com/news/global/24/11/42220682/trump-tariffs-on-mexico-could-affect-beer-why-your-modelo-corona-could-cost-more-next-year">could be hit hardest</a> by the tariff news is Constellation Brands Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STZ#NYSE">STZ</a>), an alcohol company that holds the exclusive U.S. license for several of the top imported beer brands in America. Constellation imports brands like Modelo, Corona and Pacifico from Mexico, where they are brewed by Grupo Modelo, which is a unit of Anheuser-Busch InBev (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BUD#NYSE">BUD</a>).



Modelo is the top imported beer in the U.S., with Corona ranking second. Heineken and Dos Equis XX, which are imported by Heineken USA, a unit of Heineken NV (OTC:<a class="ticker" href="https://www.benzinga.com/stock/HEINY#OTC">HEINY</a>), ranked third and fourth on the list of top imported beers. Dos Equis is manufactured in Mexico and imported to the U.S.



Constellation stock is down around 40% since it was flagged as a company to see pressure from tariffs back in November.



The U.S. is also a large importer of tequila, a sector that could be hit hard by tariffs on Mexico.



Read Also: <a href="https://www.benzinga.com/trading-ideas/24/12/42536470/costco-warns-that-tariffs-raise-prices-trump-team-says-trade-policies-will-make-life-affordable">Costco Warns That Tariffs Raise Prices, Trump Team Says Trade Policies Will &#8216;Make Life Affordable&#8217;</a>



Automotive: Several automotive companies like Ford Motor Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>), General Motors Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) and Honda Motor Co Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HMC#NYSE">HMC</a>) <a href="https://www.benzinga.com/government/regulations/24/12/42688941/are-us-vehicles-under-30000-a-thing-of-the-past-trumps-mexico-tariff-plans-could-change-auto-market">have sub-$30,000 vehicles</a> that are partially or fully built in Mexico and Canada. Tariffs on these countries could quickly make these sub-$30,000 vehicles cost more for consumers and eliminate options in the popular starting price point.



Avocados: American imports over 80% of its avocados from Mexico, which could lead to higher prices ahead of Super Bowl Sunday on Feb. 9, as <a href="https://nypost.com/2025/02/02/us-news/whats-going-to-get-hit-by-trumps-tariffs-avocados-modelo-and-iphones/">reported </a>by the New York Post. Stocks that could be impacted by higher avocado costs are Mission Produce Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVO#NASDAQ">AVO</a>), Calavo Growers, Inc. (NASDDAQ: CVGW) and Limoneira Co (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LMNR#NASDAQ">LMNR</a>).



Fruits and Vegetables: Canada is the largest supplier of cherry tomatoes for the U.S., which could see higher produce costs for consumers and restaurants.



Smartphones: China is one of the largest exporters of smartphones to the U.S., accounting for an estimated 87% of production according to the report. The iPhone from Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) has 95% of production assembled in China as of 2023.



Toys: The Toy Association industry group estimates that 75% of all imported toys come from China, making the sector one area that could be significantly hit by higher tariffs. Hasbro Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HAS#NASDAQ">HAS</a>) and Mattel Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAT#NASDAQ">MAT</a>) are two stocks that could see pressure with the tariffs impacting one of their key sectors. &nbsp;



Clothing: Imported clothes from e-commerce companies including Shein and PDD Holdings &#8211; ADR (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>) brand Temu will see higher prices with the tariff on China. Canadian clothing companies Aritzia and Lululemon Athletica (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LULU#NASDAQ">LULU</a>) will also be impacted by the tariff news. 



The footwear portion of the clothing sector could see the biggest impact with the Footwear Distributors &amp; Retailers of America estimating that 99% of shoes sold in the U.S. are imported. Nike Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NKE#NYSE">NKE</a>) could be among the companies hit hardest by the tariff news.



Construction: The American Iron and Steel Institute estimates that 25% of American steel comes from Canada and 12% comes from Mexico, which means steel prices could go up. Canadian lumber is also a large export to the U.S., which makes up around 30% of all lumber the country uses. Other construction items like drywall, lime and gypsum come from Mexico, which will put more pressure on homebuilders. The tariffs could lead to home prices going up and putting further pressure on the sector.



Oil: The U.S. is a large importer<a href="https://www.benzinga.com/news/global/24/12/42300450/trump-told-trudeau-canada-could-avoid-tariffs-by-becoming-51st-state-a-look-at-sectors-trade-war-could-impact"> of Canadian oil.</a> While oil will only see a 10% tariff compared to the 25% on other Canadian goods, the sector could likely see a large impact. Companies like Suncor Energy Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SU#NYSE">SU</a>), Enbridge (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ENB#NYSE">ENB</a>), Canadian Natural Resources (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNQ#NYSE">CNQ</a>) and TC Pipelines (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRP#NYSE">TRP</a>)&nbsp;could face significant impacts from the tariffs and a potential blow to the sector.



Transportation: Railway company Canadian Pacific Kansas City Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CP#NYSE">CP</a>) and trucking companies Old Dominion Freight Line (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ODFL#NASDAQ">ODFL</a>) and Knight-Swift Transportation Holdings (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KNX#NYSE">KNX</a>) could be impacted by the tariffs and negative impact on trade between the United States and Canada.



Retailers: Dollar stores and discount retailers like Dollar Tree (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DLTR#NASDAQ">DLTR</a>) could be<a href="https://www.benzinga.com/news/global/24/12/42402629/trump-to-change-dollar-stores-for-good-dollar-tree-exec-says-prepared-to-act"> impacted by the tariffs.</a> Executives warned of the potential impact in late 2024 with the goal of offsetting the higher prices with new product sizes and negotiating lower costs with suppliers. The company also said it would consider stopping the sale of several items due to the planned tariffs.



Price Actions on Monday at publication: The iShares MSCI Canada Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWC#NYSE">EWC</a>) is down 1.46% to $40.62.



The iShares MSCI Mexico ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWW#NYSE">EWW</a>) is up 2.12% to $50.02.



The iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>) is down 0.29% to $48.27.



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<li><a href="https://www.benzinga.com/25/02/43430259/miners-plead-for-collaboration-as-trade-wars-threaten-critical-mineral-supply-chains">Miners Plead For Collaboration As Trade Wars Threaten Critical Mineral Supply Chains</a></li>
</ul>



Photo: Visuals6x via Shutterstock

CVGW

DLTR

HEINY

LMNR

LULU

MCHI

ODFL

Why Beer, Tequila, Avocados, Cars, iPhone Prices Could Rise: Trump's Tariffs On Canada, Mexico, China To Hurt Several Sectors

A major U-turn in the tariff drama unfolded Monday as the United States and Mexico agreed to pause the planned trade <a href="https://www.benzinga.com/news/econ-s">levies for one month.</a>



Both nations pledged to tackle key security concerns, including drug trafficking and arms smuggling, while reopening trade negotiations.



Mexican President Claudia Sheinbaum confirmed the agreement via social media platform X at 10:21 a.m. ET.



She indicated the deployment of 10,000 National Guard troops to Mexico's northern border to combat fentanyl trafficking and a U.S. pledge to curb the flow of high-powered weapons into Mexico.



Sheibaum said: &#8220;Our teams will begin working today on two fronts: security and trade.&#8221;



Twenty minutes later, President Donald Trump announced the deal on Truth Social, calling his conversation with Sheinbaum &#8220;very friendly.&#8221; 



He stressed Mexico's commitment to border security and said high-level negotiations will be led by Secretary of State Marco Rubio, Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick. Trump also indicated his involvement in talks, expressing optimism for a broader trade agreement.



<a href="https://www.benzinga.com/25/02/43439462/us-manufacturing-confidence-tops-forecasts">Read also: US Manufacturing Confidence Tops Forecasts, Yet Price Pressures Intensify, &#8216;Could Become A Concern,&#8217; Economist Says</a>



<h2 class="wp-block-heading">Markets Rebound As Tariff Pause Fuels Optimism</h2>



Investor sentiment improved sharply following the announcement.



The S&amp;P 500 – as tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) –&nbsp;trimmed losses to 0.6%, rebounding from steeper declines earlier in the session as traders anticipated a potential de-escalation in trade tensions.



The Mexican peso staged a dramatic turnaround, surging 1% after initially falling nearly 2% overnight.



The USD/MXN exchange rate dropped to 20.42, down from a session high of 21.32, reflecting renewed confidence in Mexico's economic outlook.



The iShares MSCI Mexico ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWW#NYSE">EWW</a>) rallied to 3%, reversing earlier session losses of up to 2.5%. 



All eyes now turn to Trump&#8217;s scheduled call with Canadian Prime Minister Justin Trudeau at 3 p.m. ET, as markets speculate whether similar tariff relief could be extended to Canada.



Read Next:



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<li><a href="https://www.benzinga.com/trading-ideas/movers/25/02/43435750/ford-general-motors-shares-are-sliding-monday-whats-going-on">Ford, General Motors Shares Are Sliding Monday: What&#8217;s Going On?</a></li>
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Photo via Shutterstock.

Large Cap

US, Mexico Agree On 1-Month Tariff Pause: Stocks Rebound, Peso Rallies

Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) will be reporting its fourth-quarter earnings on Tuesday. Wall Street expects $2.13 in EPS and $96.56 billion in revenues as the company reports<a href="https://www.benzinga.com/calendars/earnings?tickers=GOOGL" target="_blank" rel="noreferrer noopener"> after market hours</a>.



The stock is up 41.10% over the past year, 7.02% YTD.



Let&#8217;s look at what the charts indicate for Alphabet stock and how the stock currently maps against Wall Street estimates.



Read Also: <a href="https://www.benzinga.com/media/25/01/43375573/mexican-president-asks-google-not-to-rename-gulf-of-mexico-takes-a-swipe-at-trump-decision-by-asking-for-mexican-america">Mexican President Asks Google Not To Rename Gulf Of Mexico, Takes A Swipe At Trump Decision By Asking For &#8216;Mexican America&#8217;</a>



<h2 class="wp-block-heading">Alphabet Stock Strongly Bullish Ahead Of Q4 Earnings</h2>



Alphabet stock is currently in a strongly bullish trend, with its share price of $202.73 comfortably above its key exponential moving averages (EMAs) for five, 20 and 50 days. This indicates solid upward momentum and suggests that the stock could continue to outperform in the near term. 



<figure class="wp-block-image size-full"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent020325&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="626" height="490" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/03111813/Screenshot-2025-02-03-at-9.43.05-PM.png" alt="" class="wp-image-762948" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/03111813/Screenshot-2025-02-03-at-9.43.05-PM.png 626w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/03111813/Screenshot-2025-02-03-at-9.43.05-PM-300x235.png 300w" sizes="(max-width: 626px) 100vw, 626px" /></a></figure>



<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent020325&amp;t=be2bearmibe3na1" target="_blank" rel="noreferrer noopener">Chart created using Benzinga Pro</a>



Short-term bullish signals are further supported by Alphabet stock trading above its eight-day simple moving average (SMA) of $198.54, 20-day SMA of $196 and 50-day SMA of $187.86. These SMA levels confirm strong buying momentum and indicate the potential for continued upward movement. 



Additionally, Alphabet stock remains well above its 200-day SMA of $174.00, reinforcing long-term strength. 



The Moving Average Convergence Divergence (MACD) indicator is at 3.37, signaling further bullish momentum, while the Relative Strength Index (RSI) at 61.64 indicates that the stock is not yet overbought, leaving room for continued growth. 



Alphabet stock investors should consider the current trend as favorable, but also monitor for any signs of overheating or correction if RSI climbs higher.



<h2 class="wp-block-heading">Alphabet Analysts See 5% Upside</h2>



Ratings &amp; Consensus Estimates:<a href="https://www.benzinga.com/quote/GOOGL/analyst-ratings" target="_blank" rel="noreferrer noopener"> The consensus analyst rating</a> on Alphabet stock stands at a Buy currently with a price target of $210.91. The latest analyst ratings from Needham, DA Davidson and Cantor Fitzgerald suggest a 4.59% upside for Alphabet stock, with an average price target of $211.67.



GOOGL Stock Price Action: Alphabet stock was trading at $203.30 at the time of publication.



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<li><a href="https://www.benzinga.com/trading-ideas/25/01/43403758/exclusive-this-magnificent-7-stock-will-feel-the-pinch-of-feds-rate-decision-poll-shows" target="_blank" rel="noreferrer noopener">EXCLUSIVE: This &#8216;Magnificent 7&#8217; Stock Will Feel The Pinch Of Fed&#8217;s Rate Decision, Poll Shows</a></li>
</ul>



Image: Shutterstock

GOOG

GOOGL

Alphabet Q4 Earnings Preview: Bullish Trend Just Getting Started?

The U.S. manufacturing sector surprisingly returned to expansion in January, signaling renewed business optimism, though mounting input costs pose a growing inflation risk <a href="https://www.benzinga.com/news/econ-s">for the months ahead.</a>



Two key indicators tracking U.S. factory activity that were released Monday showed stronger-than-expected growth last month.



The S&amp;P Global U.S. Manufacturing PMI was upwardly revised to 51.2, exceeding the preliminary estimate of 50.1 and improving from 49.4 in December. 



The ISM Manufacturing PMI rose to 50.9 from a downwardly revised 49.2 in December, beating market forecasts of 49.8, according to TradingEconomics. This marked the first expansion in the ISM index after 26 consecutive months of contraction.



<h3 class="wp-block-heading">Manufacturing Activity Surges In January</h3>



"The start of the new year saw a renewed expansion in the U.S. manufacturing sector amid a surge in confidence," S&amp;P Global wrote in its report. 



The firm attributed part of the optimism to expectations that business conditions would improve under President Donald Trump&#8216;s administration.



"Business confidence about prospects for the year ahead has leaped to the highest level in nearly three years after one of the largest monthly gains yet recorded by the survey," said Chris Williamson, chief business economist at S&amp;P Global Market Intelligence.



While manufacturing activity rebounded, rising input costs threaten to push consumer price inflation higher in the months ahead. Costs continued to increase sharply, driving the pace of output price inflation to its highest level since May 2024.



"A rise in the rate of increase of both input costs and selling prices could become a concern if this intensification of inflationary pressures is sustained in the coming months," Williamson stated. 



"Especially as the combination of higher price pressures alongside accelerating economic growth and rising employment is not typically conducive to cutting interest rates," he added.



A separate ISM survey reinforced these concerns, with its Prices Paid Index climbing 2.4 points from December to 54.9, the highest since May 2024, exceeding market expectations of 52.6. 



Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee, highlighted that price pressures would be a significant challenge throughout 2025.



"As predicted, maintaining a slower rate of price increases as demand returns will be a major challenge for 2025," Fiore said.



The ISM report also highlighted that companies in the Food, Beverage &amp; Tobacco Products industry are actively assessing supply chain adjustments in response to potential tariff-driven cost increases.



<h2 class="wp-block-heading">Market Reactions: Stocks Drop, Bonds And Gold Rally</h2>



Markets reacted negatively to the confirmation of new tariffs on Canada and Mexico at 25% and China at 10% announced by Trump over the weekend.



By 10:30 a.m. ET, the S&amp;P 500 — tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) — was down 1.2%.



Treasury yields declined, signaling demand for safe-haven assets. The yield on the 30-year Treasury bond dropped 5 basis points to 4.75%, pushing the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) up 0.7%.



Gold prices surged to fresh all-time highs, with spot gold reaching $2,800 per ounce, while the SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) rose 0.7%, reflecting heightened investor concerns over inflation and economic uncertainty.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/02/43430801/exclusive-anthony-scaramucci-warns-donald-trumps-crypto-promises-may-be-a-mirage">EXCLUSIVE: Anthony Scaramucci Warns Donald Trump&#8217;s Crypto Promises May Be A &#8216;Mirage&#8217;</a></li>
</ul>



Photo via Shutterstock.

Bonds

US Manufacturing Confidence Tops Forecasts, Yet Price Pressures Intensify, 'Could Become A Concern,' Economist Says

Shares of U.S. automakers including Ford Motor Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) and General Motors Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) are moving lower Monday after U.S. President Donald Trump placed tariffs on <a href="https://www.benzinga.com/markets/25/02/43423288/trumps-tariffs-are-here-heres-what-will-get-more-expensive-from-canada-china-and-mexico">Canada, Mexico and China</a>.



What Happened: Trump signed executive orders on Saturday to impose 25% tariffs on Canada and Mexico and 10% tariffs on China in an effort to curb immigration and narcotics trafficking, per Reuters. 



The tariffs, which are expected to take effect on Tuesday, include a 25% duty on all&nbsp;imports from Mexico and most&nbsp;goods from Canada, as well as a 10% duty on Chinese goods. 



The auto industry is expected to be one of the hardest hit as U.S. automakers build, assemble and use parts from Canada and Mexico. Investors are also concerned about a potential trade war as Canada and Mexico have threatened to retaliate. The auto industry has a heavy reliance on North America, particularly Mexico where a lot of vehicles are manufactured.



&#8220;We may have short term some little pain, and people understand that. But long term, the United States has been ripped off by virtually every country in the world,&#8221; Trump reportedly told reporters on Sunday.



See Also: <a href="https://www.benzinga.com/general/market-summary/25/02/43429067/us-stocks-likely-to-open-lower-as-trump-imposes-tariffs-on-china-canada-and-mexico-expert-notes-feb-worst-month-in-post-election-years">US Stocks Likely To Open Lower As Trump Imposes Tariffs On China, Canada, And Mexico: Expert Notes Feb Worst Month In Post-Election Years</a>



General Motors reported <a href="https://www.benzinga.com/25/01/43263700/general-motors-stock-gains-after-q4-earnings-beat-incurs-charges-from-funding-halt-of-cruise-robotaxi-business">fourth-quarter earnings</a> last week that came in above analyst expectations. The automaker guided for strong earnings in 2025 on the back of growth in North America. 



Ford is due to report fourth-quarter earnings after the market close on Wednesday. The company is expected to report earnings of 33 cents per share and revenue of $43.25 billion, according to estimates from <a href="http://pro.benzinga.com">Benzinga Pro</a>.



F, GM Price Action: Ford shares were down 3.89% at $9.68 and GM shares were down 5.90% at $46.60 at the time of publication Monday, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>.



Photo: courtesy of Ford.

Ford, General Motors Shares Are Sliding Monday: What's Going On?

Palantir Technologies Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>) will be reporting its fourth-quarter earnings on Monday. Wall Street expects 11 cents in EPS and $775.91 million in revenues as the company reports<a href="https://www.benzinga.com/calendars/earnings?tickers=PLTR" target="_blank" rel="noreferrer noopener"> after market hours</a>.



The stock is up 393.36%% over the past year, 9.71% YTD.



Let&#8217;s look at what the charts indicate for Palantir stock and how the stock currently maps against Wall Street estimates.



Read Also: <a href="https://www.benzinga.com//node/43426284">Palantir Technologies Plunges Overnight On Robinhood: Trump Tariff Impact Or Investor Jitters?</a>



<h2 class="wp-block-heading">PLTR Stock Strongly Bullish Ahead Of Q4 Earnings&#8230;</h2>



PLTR stock is in a strongly bullish trend, trading above its five-day, 20-day and 50-day exponential moving averages. 



<figure class="wp-block-image size-full"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent020325&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="626" height="490" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/03065308/Screenshot-2025-02-03-at-5.22.51-PM.png" alt="" class="wp-image-762426" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/03065308/Screenshot-2025-02-03-at-5.22.51-PM.png 626w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/03065308/Screenshot-2025-02-03-at-5.22.51-PM-300x235.png 300w" sizes="(max-width: 626px) 100vw, 626px" /></a></figure>



<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent020325&amp;t=be2bearmibe3na1">Chart created using Benzinga Pro</a>



At $81.20, the stock sits comfortably above key moving averages, reinforcing upward momentum. Notably, PLTR is well above its eight-day SMA (simple moving average) of $79.79, 20-day SMA of $74.48 and 50-day SMA of $73.06, all bullish indicators suggesting continued strength. 



The 200-day SMA at $42.02 further underscores a long-term uptrend, with the stock having nearly doubled over this period.



Momentum indicators also support the bullish case. The MACD (moving average convergence/divergence) indicator at 2.61 signals increasing upside momentum, often a precursor to further gains. However, the RSI (relative strength index) at 61.03 indicates that while the stock isn&#8217;t yet overbought, it is approaching elevated levels, suggesting some caution as PLTR stock nears resistance zones. 



PLTR stock investors should watch for potential consolidation or minor pullbacks, but the overall technical picture remains bullish.



<h2 class="wp-block-heading">&#8230;Yet Palantir Analysts See 9% Downside</h2>



Ratings &amp; Consensus Estimates:<a href="https://www.benzinga.com/quote/PLTR/analyst-ratings" target="_blank" rel="noreferrer noopener"> The consensus analyst rating</a> on Palantir stock stands at a Neutral currently with a price target of $39.38. Recent analyst ratings from Wedbush, Cantor Fitzgerald and Morgan Stanley imply an 8.77% downside for PLTR stock, with an average price target of $74.



PLTR Stock Price Action: Palantir stock closed the trading day Friday at $82.49, up 1.56%.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com//node/43420511">Palantir CEO Alex Karp Sounds Alarm on China&#8217;s Deepseek – Could This Threaten Palantir&#8217;s AI Dominance?</a></li>
</ul>



Photo: Shutterstock

Palantir Q4 Earnings Countdown: Bullish Charts Vs. Bearish Analysts

A fresh wave of market turmoil hit global equities on Monday as President Donald Trump signed executive orders imposing new tariffs: 25% on imports from Mexico and Canada and 10% <a href="https://www.benzinga.com/news/econ-s">on imports from China.</a> 



The tariffs, set to take effect Tuesday, Feb. 4, include a 10% carve-out for Canadian gas, power, and minerals.



U.S. stock futures tumbled over 1% on Friday. That afternoon, as of 1:10 p.m. ET, S&amp;P 500 futures were down 1.5%, slipping below 6,000 points. Nasdaq 100 futures declined 1.6% and Dow Jones Industrial Average futures sank over 1.2%.



&#8220;Both Canada and Mexico have threatened retaliation, and markets are concerned that this is the start of a global trade war,&#8221; said David Morrison, market analyst at Trade Nation.



<h3 class="wp-block-heading">Automakers Take A Hit Amid Trade Disruption, Energy Commodities Rise</h3>



The automotive sector bore the brunt of the tariff shock, with General Motors Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) plunging 6% in premarket trading.



Ford Motor Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) and Stellantis N.V. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STLA#NYSE">STLA</a>) also suffered losses, down 3.9% and 4.7%, respectively. Given the reliance of U.S. automakers on North American trade, the new tariffs could significantly disrupt supply chains and raise costs.



Within tech, shares of Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) shrunk 4% to $115, eyeing the lowest levels since October. 



The tariffs sent ripples through commodity markets. Henry Hub natural gas prices — as tracked by the U.S. Natural Gas Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNG#NYSE">UNG</a>) — soared 8.5%, surpassing $3 per million British thermal units, while crude oil climbed 2.2% to $74 per barrel.



Gold edged up 0.5% to $2,810 per ounce, reflecting heightened market uncertainty.



The U.S. dollar benchmark — as tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>) — surged across the board, with up 0.9%. The greenback gained 1% against the Canadian dollar and 1.5% against the Mexican peso, pushing USD/MXN to 21, levels not seen since February 2022.



Cryptocurrency markets were not immune to the selloff. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) slumped 2.8% to trade below $95,000, hitting an overnight low of $91,200 as investors moved toward safer assets.



<h3 class="wp-block-heading">Analyst Reactions: Uncertainty Looms Over Tariff Impact</h3>



S&amp;P Global warned that U.S. tariffs on metals and minerals &#8220;are widely expected to ratchet up costs for U.S. manufacturers that depend on Canada, Mexico, and China for materials.&#8221;



Goldman Sachs&#8217; economist Jan Hatzius highlighted that tariffs may be temporary, yet the outlook remains uncertain. &#8220;We think it is more likely that the tariffs will be temporary, but the outlook is unclear.&#8221; 



He added that a sustained 25% tariff on Canadian and Mexican imports could raise core U.S. Personal Consumption Expenditure inflation by 0.7% and shave 0.4% off GDP growth.



&#8220;S&amp;P 500 companies derive 28% of revenues outside the U.S. A 10% increase in the trade-weighted USD would reduce S&amp;P 500 EPS by roughly 2%,&#8221; said Goldman Sachs&#8217; analyst David J. Kostin. 



Now Read: 



<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/02/43432736/copper-stocks-on-shaky-ground-jpmorgan-analysts-say-tariffs-deepseek-cloud-outlook">Copper Stocks On Shaky Ground, JPMorgan Analysts Say: Tariffs, DeepSeek Cloud Outlook</a></li>
</ul>



Image: Shutterstock

STLA

Trump's Tariffs Hit Markets, Natural Gas Spikes, Mexican Peso Hits 2-Year Lows, Bitcoin Freefalls: 'The Outlook Is Unclear,' Analysts Warn

SkyBridge Capital founder Anthony Scaramucci on Monday cast doubt on the crypto industry&#8217;s high hopes for President Donald Trump, suggesting his promises <a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43177482/trump-signs-executive-order-on-crypto-bitcoin-reserve-to-be-evaluated">of regulatory relief</a> may be a &#8220;mirage.&#8221; 



What Happened: &#8220;Sometimes in the desert, when you see the oasis, there could be a mirage,&#8221; Scaramucci said, suggesting that the initial optimism in the cryptocurrency industry over a change of course from the Biden administration may not be fulfilled.



Scaramucci pointed to several factors supporting his view. 



He highlighted Trump's launch of the Trump (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/">TRUMP</a>) meme coin shortly before assuming the presidency, which signals a lack of focus on the industry&#8217;s needs.



<h2 class="wp-block-heading">The Danger of Trump Tariffs</h2>



Scaramucci expressed concern over the president&#8217;s &#8220;capricious&#8221; moves on trade, particularly the imposition of <a href="https://www.benzinga.com/markets/25/02/43423288/trumps-tariffs-are-here-heres-what-will-get-more-expensive-from-canada-china-and-mexico">substantial tariffs</a> on Canada, Mexico and China without any clear conditions or context. &#8216;



This uncertainty, he argued, is deeply unsettling for markets, which thrive on predictability and stability. 



&#8220;Markets hate lack of predictability. Markets hate uncertainty. Markets love tranquility,&#8221; he said, adding that the president's decisions have created an environment of unease.



Scaramucci also noted that markets are wary of Trump&#8217;s complete control over the government. 



&#8220;He has the House, the Senate, the Supreme Court and the presidency,&#8221; which, according to Scaramucci, makes it difficult to predict his next moves, creating market nervousness.



He noted how Trump is constantly breaking norms, which shocks the American system.



Scaramucci criticized the widespread surprise about Trump&#8217;s recent actions, stating, &#8220;It surprises me that people are surprised.&#8221;



He pointed out that Trump&#8217;s behavior over the past four years has clearly indicated a pattern of transactional decision-making, including flip-flopping on policies based on his own self-interest.



&#8220;You get everything with him. You get the trade wars, you get the flip-flopping.&#8221; 



He cited examples such as <a href="https://www.benzinga.com/general/social-media/25/01/43088960/trump-suspends-us-tiktok-ban-for-75-days-with-executive-order-but-legal-and-market-uncertainty-looms-over-platforms-future">his stance on TikTok</a> and Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>), which have shifted dramatically depending on the situation and who is funding him.



Also Read: <a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43404802/grayscale-seeks-sec-approval-to-convert-xrp-trust-into-exchange-traded-fund">Grayscale Seeks SEC Approval To Convert XRP Trust Into Exchange-Traded Fund</a>



<h2 class="wp-block-heading">The Future of Crypto Under Trump</h2>



Despite these concerns, Scaramucci believes that the crypto industry will ultimately receive <a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43008666/sec-under-trump-administration-to-revise-crypto-policies-report">the positive legislation</a> it seeks.



He anticipates this occurring before February or March of next year, noting that &#8220;the Democrats are scared now,&#8221; because they lost seats in congress due to crypto, likely forcing them to concede.



However, this regulatory clarity, according to Scaramucci, is not likely due to any sudden shift in Trump's support, but rather a consequence of the Democrats trying to avoid past mistakes. 



Scaramucci predicts that Bitcoin will continue to grow, forecasting a price above $200,000 within the next three years, given institutional demand.



Scaramucci further said, the crypto industry will not miss <a href="https://www.benzinga.com/markets/cryptocurrency/25/01/42885028/gary-gensler-says-10000-15000-projects-wont-survive-crypto-market-is-wrapped-up-in-sentiment">former SEC chair Gary Gensler</a>, who he described as an &#8220;unmitigated disaster.&#8221;



Instead, he anticipates the industry will find Trump&#8217;s actions frustrating, due to his irrational and unpredictable behavior.



Regarding the <a href="https://www.benzinga.com/markets/25/01/43257172/deepseek-themed-crypto-explodes-600-on-ai-disruption-but-heres-why-you-should-be-cautious">tech sell-off due to DeepSeek</a>, Scaramucci argued that the market reaction was exaggerated and that the AI narrative remains intact.



He also noted the U.S. government reporting that China was using middlemen in Singapore to obtain chips restricted from them.



He believes these companies will have much higher prices in a year's time.



Reiterating his concerns about Trump's approach to international relations, Scaramucci said that these methods could result in less predictable outcomes.



He stated that Trump's actions are causing the Russians and the Chinese to unite due to the uncertainty inflicted on them by the West. He believes Trump&#8217;s goals can be achieved without this kind of drama.



Read Next: 



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<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43399688/microstrategy-prices-preferred-stock-offering-at-80-per-share-seeks-563m-to-buy-bitcoin">MicroStrategy Prices Preferred Stock Offering At $80 Per Share, Seeks $563M To Buy Bitcoin</a></li>
</ul>



Image: Shutterstock

$TRUMP

EXCLUSIVE: Anthony Scaramucci Warns Donald Trump's Crypto Promises May Be A 'Mirage'

U.S. stock futures dropped sharply on Monday after U.S. President Donald Trump imposed tariffs on three of its major trade partners, Canada, China, and Mexico.



The new tariffs will begin Tuesday, with a 10% levy on China and a 25% levy on a few Canadian and Mexican imports, each. The U.S. Chamber of Commerce warns of supply chain disruptions and higher family costs, citing concerns over trade with Mexico worth $46 billion in agricultural products, and Canada valued at $97 billion in energy supplied.



The U.S. dollar index strengthened over 1% following this announcement.



All major index futures were down, with the Russell 2000 falling more than 2%. This drop comes after the indices had posted gains for three consecutive weeks.



Companies reporting earnings this week include Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Google parent Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>), Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>), and Fortinet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTNT#NASDAQ">FTNT</a>).



The 10-year Treasury yield stood at 4.54%, while the two-year yield was at 4.27%. According to the CME Group's FedWatch <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">tool</a>, there is an 86.5% chance that the Federal Reserve will keep interest rates unchanged for the March meeting.



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Nasdaq 100</td><td>-1.78%</td></tr><tr><td>S&amp;P 500</td><td>-1.57%</td></tr><tr><td>Dow Jones</td><td>-1.38%</td></tr><tr><td>Russell 2000</td><td>-2.14%</td></tr></tbody></table></figure>



The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) both experienced negative premarket trading on Monday. SPY fell 1.51% to $592.76, and QQQ plunged 1.72% to $513.33, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



Cues From The Last Session



Energy, IT, and materials stocks led the decline on Friday as the U.S. markets reacted to new tariffs on the country's three largest suppliers &#8211; Canada, Mexico, and China.



Communication services and consumer discretionary stocks were exceptions. The news overshadowed strong earnings from Exxon Mobil Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>).



On the economic front, the U.S. personal income rose 0.4% in December (up from 0.3% in November), while personal spending climbed 0.7% to an annualized rate of $20.387 trillion. The core PCE price index increased 0.2%.



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>-0.28%</td><td>19,627.44</td></tr><tr><td>S&amp;P 500</td><td>-0.50%</td><td>6,040.53</td></tr><tr><td>Dow Jones</td><td>-0.75%</td><td>44,544.66</td></tr><tr><td>Russell 2000</td><td>-0.86%</td><td>2,287.69</td></tr></tbody></table></figure>



Insights From Analysts



The newly issued tariffs as highlighted by Treasury Secretary Scott Bessent will be used to bring manufacturing back to the U.S. It will also be used to raise revenues to help pay for extending Trump&#8217;s 2017 tax cuts and as a lever to negotiate with other countries as an alternative to sanctions.



However, Ed Yardeni and Eric Wallerstein in their QuickTakes note mentioned that &#8220;During Trump 1.0, tariff hikes by the U.S. seem to have depressed merchandise imports in 2018 and 2019. But they also depressed U.S. exports because global economic growth was weakened by trade tensions.&#8221;



Ryan Detrick, the chief market strategist at Carson Research highlighted in an X post that February is historically the worst month during a post-election year.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">February is historically the worst year during a post election year, so maybe rough seas this month shouldn&#39;t be a shock? Is it just a President likes to get all the bad stuff out of the way early? <a href="https://t.co/kooyDUoqs7">pic.twitter.com/kooyDUoqs7</a>&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1886221160209363356?ref_src=twsrc%5Etfw">February 3, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Furthermore, Detrick pointed out that &#8220;the first quarter of a post-election year usually isn&#8217;t all that strong.&#8221;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Yes, it was a very strong January for stocks, but be aware the first quarter of a post-election year usually isn&#39;t all that strong. <a href="https://t.co/nZx4SPu4XX">pic.twitter.com/nZx4SPu4XX</a>&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1886223993058812398?ref_src=twsrc%5Etfw">February 3, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



He added that the S&amp;P 500 has been up eight of the past nine quarters. &#8220;One of these days it&#8217;ll fall and that is perfectly normal.&#8221;



According to Ivan Martchev, investment strategist at Navellier &amp; Associates, &#8220;Seasonality is not a promise.&#8221;



Martchev highlighted that December was supposed to be strong, but it turned out to be weak. He added that since 1928, September has been the weakest seasonal month, but last year only the first week was down while the rest of the month was strong.



&#8220;So as we approach February which is weak over the long term, we must remember that seasonality is a guideline, but it can deviate widely each year,&#8221; he added.



See Also: <a href="https://www.benzinga.com/money/how-to-trade-futures">How to Trade Futures</a> 



Upcoming Economic Data



Here&#8217;s what investors will keep an eye on for the week:



<ul>
<li>On Monday, January&#8217;s S&amp;P final U.S. manufacturing PMI will be released at 9:45 a.m., ET.</li>
</ul>



<ul>
<li>December&#8217;s construction spending data and January&#8217;s ISM manufacturing data will be announced at 10:00 a.m., ET.</li>
</ul>



<ul>
<li>Atlanta Fed President Raphael Bostic will speak at noon, and auto sales data for January will also be released on Monday.</li>
</ul>



<ul>
<li>On Tuesday, December&#8217;s job openings and factory orders data will be out at 10:00 a.m., ET</li>
</ul>



<ul>
<li>Atlanta Fed President Raphael Bostic will speak again at 11:00 a.m., ET on Tuesday, on the topic of housing.</li>
</ul>



<ul>
<li>San Francisco Fed President Daly will speak at 2:00 p.m., ET and Federal Reserve Vice Chairman Philip Jefferson will speak at 7:30 p.m., ET.</li>
</ul>



<ul>
<li>On Wednesday, January&#8217;s ADP employment data will be out at 8:15 a.m., and December&#8217;s U.S. trade deficit data will be released at 8:30 a.m., ET.</li>
</ul>



<ul>
<li>Richmond Fed President Tom Barkin will speak at 9:00 a.m., ET.</li>
</ul>



<ul>
<li>January&#8217;s S&amp;P final U.S. services PMI will be announced at 9:45 a.m. and ISM services data will be out by 10:00 a.m., ET.</li>
</ul>



<ul>
<li>Chicago Fed President Goolsbee will speak at 1:00 p.m., Fed Governor Michelle Bowman will speak at 3:00 p.m., and Fed Vice Chairman Philip Jefferson will speak again at 7:30 p.m., ET.</li>
</ul>



<ul>
<li>On Thursday, initial jobless claims till Feb. 1 and the U.S. productivity data for the fourth quarter will be out at 8:30 a.m., ET.</li>
</ul>



<ul>
<li>Fed Governor Christopher Waller will speak at 2:30 p.m. and Dallas Fed President Lorie Logan will speak at 5:10 p.m., ET.</li>
</ul>



<ul>
<li>On Friday, the U.S. employment, unemployment, and hourly wages report for January will be out at 8:30 a.m., ET.</li>
</ul>



<ul>
<li>Fed Governor Michelle Bowman will speak again at 9:25 a.m., ET.</li>
</ul>



<ul>
<li>December&#8217;s wholesale inventory data will be announced at 10:00 a.m., ET.</li>
</ul>



<ul>
<li>January&#8217;s preliminary consumer sentiment data will be out at 10:00 a.m., ET.</li>
</ul>



<ul>
<li>December&#8217;s consumer credit will be released at 3:00 p.m., ET.</li>
</ul>



Stocks In Focus:



<ul>
<li>Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>) was down 2.68% in the premarket on Monday as it is expected to report its fourth-quarter earnings after market hours. According to Benzinga's consensus estimates, the company is expected to report earnings of $0.11 per share on revenue of $775.91 million.</li>
</ul>



<ul>
<li>Super Micro Computer Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>) declined 3.26% as it is expected to report its earnings after having missed filing reports since March 31 quarterly results in May 2024.</li>
</ul>



<ul>
<li>MicroStrategy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>) slipped 5.73% as Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) fell over 4% to $95,403.03 per coin.</li>
</ul>



<ul>
<li>Tyson Foods Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSN#NYSE">TSN</a>) was up 1.56% ahead of its earnings before the opening bell. Analysts expect it to report quarterly earnings of 88 cents per share on revenue of $13.44 billion.</li>
</ul>



<ul>
<li>Clorox Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLX#NYSE">CLX</a>) was down 0.20% as Wall Street expects it to report quarterly earnings of $1.41 per share on revenue of $1.63 billion after the closing bell.</li>
</ul>



<ul>
<li>Fabrinet (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FN#NYSE">FN</a>) declined 2.87% ahead of its earnings after the closing bell. Analysts expect it to report quarterly earnings of $2.50 per share on revenue of $814.33 million.</li>
</ul>



<ul>
<li>NXP Semiconductors NV (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NXPI#NASDAQ">NXPI</a>) dropped 2.56% as Wall Street expects it to report quarterly earnings of $3.14 per share on revenue of $3.10 billion after the closing bell.</li>
</ul>



<ul>
<li>Territorial Bancorp Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TBNK#NASDAQ">TBNK</a>) was down 7.52% after it reported a net loss of $1.72 million, or 20 cents per share, for the fourth quarter.</li>
</ul>



Commodities, Gold And Global Equity Markets:



Crude oil futures were trading higher in the early New York session by 2.29% to hover around $74.19 per barrel.



The gold spot index was down by 0.16% to $2,796.63 per ounce. The Dollar Index was up 1.09% at 109.554 level.



Asian markets fell sharply on Monday as Hong Kong's Hang Seng, Australia's ASX 200, South Korea's Kospi, China's CSI 300, and Japan's Nikkei 225 index declined. European markets were also lower in trade.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/25/02/43428231/as-dollar-strengthens-after-trumps-tariff-imposition-this-hedge-fund-manager-says-usd-devaluation-is-inevitable-heres-why">Trump Tariffs Strengthen Dollar, But Hedge Fund CEO Sees Impending Decline</a></li>
</ul>



Photo courtesy: Shutterstock

Market Summary

Futures

Pre-Market Outlook

AMZN

FTNT

MSTR

SMCI

TBNK

US Stocks Likely To Open Lower As Trump Imposes Tariffs On China, Canada, And Mexico: Expert Notes Feb Worst Month In Post-Election Years

Elon Musk, the lead of the Department of Government Efficiency, backed the idea of using blockchain technology on Sunday to streamline the U.S. Treasury.



What happened: The Tesla and SpaceX CEO accused the Treasury Department officials of flouting rules to sanction government payments.



"Career Treasury officials are breaking the law every hour of every day by approving payments that are fraudulent or do not match the funding laws passed by Congress," Musk wrote in an X post.



Musk cited 31 U.S.C. Section 3325, which requires government disbursing officials to obtain certification from the head of the relevant executive agency before authorizing such payments.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Yes!&mdash; Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/1886164124981166241?ref_src=twsrc%5Etfw">February 2, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



In response, widely followed X user Mario Nawfal asked Musk whether it would be wise to place the Treasury on the blockchain to plug these holes, to which the tech titan said, &#8220;Yes.&#8221;



See Also:<a href="https://www.benzinga.com/24/12/42735744/pharma-bro-martin-shkreli-predicts-doom-for-michael-saylors-microstrategy-as-stock-dips-below-300-in-after-hours-trading"> </a><a href="https://www.benzinga.com/25/01/43325381/elon-musks-tesla-racks-up-600-million-paper-gains-on-bitcoin-in-q4">Elon Musk&#8217;s Tesla Records $600 Million In Paper Gains On Bitcoin In Q4 Thanks To New Accounting Rule</a>&nbsp;



Why It Matters: The blockchain idea comes a week after reports that Musk was <a href="https://www.benzinga.com/25/01/43219929/musks-doge-department-reportedly-eyeing-blockchain-technology-to-slash-federal-spendingjustin-sun-pitches-tron">contemplating the use of a digital ledger</a> to support his federal spending plans at the Department of Government Efficiency, also called DOGE.&nbsp;The blockchain would be utilized to track spending, secure data, and make payments.



The development comes on the heels of reports that <a href="https://www.benzinga.com/news/25/02/43419885/musks-doge-eyes-treasury-payment-system-sparks-controversy-leading-to-officials-exit">DOGE was seeking access </a>to the payment systems of the Treasury Department.



The Department of Government Efficiency, or DOGE, is an entity<a href="https://www.benzinga.com/news/global/24/11/41927289/trump-appoints-elon-musk-and-vivek-ramaswamy-to-lead-doge-targeting-bureaucracy-and-65-trillion-federal-spending-we-will-not-go-gently"> tasked with cutting federal spending</a> and abolishing meaningless regulations. The agency was <a href="https://www.benzinga.com/25/01/43086309/trumps-doge-committee-faces-lawsuit-over-alleged-federal-advisory-violations-and-lack-of-transparency">hit with a barrage of lawsuits</a> shortly after Trump took office as president last month.



Price Action: At the time of writing, Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>), the cryptocurrency symbolically linked to the department, was exchanging hands at $0.3308, crashing 21.72% in the last 24 hours, according to <a href="https://pro.benzinga.com/dashboard?_gl=1&#x2A;380nj0&#x2A;_ga&#x2A;MTEyOTAyOTcxMy4xNzEzMzY0NTYy&#x2A;_ga_V7ZK73W7N0&#x2A;MTcxNDk4MzIzMi42LjEuMTcxNDk4OTE0Ni4wLjAuMA.." target="_blank" rel="noreferrer noopener">data from Benzinga Pro</a>. 



Image via Shutterstock



Read Next:&nbsp;



<ul>
<li><a href="https://www.benzinga.com/25/01/43326463/former-senator-bob-menendez-who-said-bitcoin-will-open-doors-of-corruption-in-el-salvador-gets-11-year-jail-term-for-accepting-bribes">Former Senator Bob Menendez Who Said &#8216;Bitcoin Will Open Doors Of Corruption In El Salvador&#8217; Gets 11-Year Jail Term For Accepting Bribes</a></li>
</ul>

$DOGE

Elon Musk Says Treasury Officials 'Breaking The Law Every Hour' By Approving Fraudulent Payments — DOGE Lead Wants A Blockchain Fix

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