Stocks shook off fresh tariff threats, rallying despite China slapping new duties on US goods. Energy stocks fueled the gains, while utilities cooled off.

⚡ Closing Bell:

• Dow Jones: ⬆️ +0.3% › 44,556 › Steady climb, boosted by industrials.

• S&P 500: ⬆️ +0.7% › 6,037.9 › Solid gains, led by energy stocks.

• Nasdaq Composite: ⬆️ +1.4% › 19,654 › Tech rebound, thanks to Palantir’s breakout.

China’s retaliation kicks in Feb. 10 with new tariffs on US coal, LNG, crude oil, and more. But markets stayed focused on earnings—and it paid off.

Sector Moves:
✅ Energy: Jumped 2.2%, riding higher oil demand expectations.
❌ Utilities: Dragged down as investors shifted to riskier bets.

Economic Snapshot:

• Job Openings: Fell to 7.6M, missing forecasts of 8M.

• Yields:
  ➝ 10-Year: ⬇️ 4.51% › Dipped as investors sought safety.
  ➝ 2-Year: ⬇️ 4.22% › Fell nearly 5 bps on softer data.

❗ What’s Next?
Keep an eye on upcoming US trade moves and more earnings on deck—because this tariff drama isn’t closing anytime soon.

#TRUTH:
❗❗❗ “Fall seven times, stand up eight.” ~ Japanese Proverb

Help Wanted…Less:

The US labor market is showing signs of cooling. Job openings fell to 7.6 million in December, down from 8.15 million in November—marking the biggest month-over-month drop since October 2023, according to the Bureau of Labor Statistics. Economists had expected around 8 million openings, but reality had other plans.

What’s Driving the Decline?

• Hires: Up slightly to 5.46 million from 5.37 million in November, though the hiring rate held steady at 3.4% for the third month straight.

• Quits Rate: Unchanged at 2%, signaling that workers aren’t feeling bold enough to jump ship—still below pre-pandemic levels.

Fed Chair Jerome Powell recently described the labor market as “broadly stable,” and this report seems to back that up. Oxford Economics’ Nancy Vanden Houten noted that while hiring is sluggish, low layoffs are keeping job growth in the green.

The Fed Factor:
The softer data could influence the Fed’s rate decisions. Markets are now pricing in less than a 50% chance of a rate cut before June, shifting expectations after the report.

Up Next:
All eyes on Friday’s January jobs report, where economists expect 170,000 new jobs—down from December’s 256,000—with unemployment likely steady at 4.1%. Plus, revisions to past labor data could add more twists to the story.

Speed Bump:

Alphabet’s stock took a hit after the tech giant’s Q4 revenue fell short of Wall Street’s expectations, signaling a slowdown in growth. Shares dropped 7.1% after hours, sliding as much as 8% immediately following the report.

The Big Shock:
Alphabet announced plans to spend a staggering $75 billion on capital expenditures in 2025—well above the $57.9 billion analysts expected. The trend of Big Tech pouring billions into capex isn’t slowing down anytime soon.

By the Numbers:

• Revenue: $96.5 billion (+12% YoY), just shy of the $96.7 billion forecast

• Net Income: $26.5 billion (+28% YoY)

• Earnings Per Share (EPS): $2.15, barely nudging past the $2.14 estimate

• Full-Year Revenue (2024): $350 billion (+14% YoY)

Division Highlights:

• YouTube Ads: $10.5 billion (+13.8% YoY) – Solid growth in ad dollars

• Google Cloud: $12 billion (+30% YoY) – Powered by the AI boom

• Google Search: $54 billion (+12.5% YoY) – Still the money-making machine

• Google Advertising: $72.4 billion (+10.6% YoY) – Digital ads holding strong

Despite strong income growth, the hefty capital spending plans and revenue miss left investors unimpressed, pushing shares lower after hours.

Makeover:

Google is shifting its core product, Search, from a traditional search engine into an AI-powered assistant.
The goal? Move beyond simple search results to an AI that browses the web, processes information, and delivers comprehensive answers directly to users.

Key Projects Leading the Charge:

• Project Astra: A multimodal AI system capable of processing live video and answering real-time questions based on what it “sees” on screens or through cameras.

• Gemini Deep Research: Designed to automate complex research tasks, this AI can generate detailed reports, replacing the manual digging users typically do with Search.

• Project Mariner: An AI that can navigate websites on behalf of users, interacting with front-end content so people don’t have to click through pages themselves.

This aggressive AI push is Google’s response to rising competition from ChatGPT and other AI-driven platforms. While Google faced criticism for AI Overviews—early attempts plagued by inaccuracies—it’s clear the company is committed to integrating AI deeply into Search, aiming to redefine how billions of people access information online.

Chip, Dip, and Repeat 💸:

Nvidia (NVDA $118.75 +1.74%) took a hit on Monday, sliding past last week’s DeepSeek-induced low, but the $2.9 trillion chip giant didn’t stay down for long. By Tuesday, it was bouncing back, proving that traders have an insatiable appetite for buying the dip—no matter the market stress.

Steve Sosnick, chief strategist at Interactive Brokers, noted, “Just last week, I commented that I couldn’t remember a stock with more net buying activity than we saw in NVDA after its DeepSeek plunge. Well, that net buying activity has grown to 224,000 this week, up from 207,000 last week.”

As of 12:40 p.m. ET, the stock was effectively flat following its record-setting one-day decline. But with traders this eager, Nvidia’s dips seem less like setbacks and more like shopping sprees.

Highlights of the Day:

① Capex Catalyst ✅
➝ Broadcom (AVGO +2.15%) › Jumped after Alphabet’s surprise announcement of $75 billion in capital expenditures for 2025, far exceeding expectations. Alphabet is a key customer, accounting for 9% of Broadcom’s sales.
➝ Alphabet (GOOGL -2.44%) › Despite boosting Broadcom, Alphabet’s own shares dipped as investors worried about its spending spree.

② Burrito Blues ❌
➝ Chipotle (CMG -1.11%) › Slumped after issuing a gloomy 2025 outlook. Comparable sales growth missed estimates, and full-year guidance disappointed with projections in the low-to-mid single digits.

③ Data Drag ❌
➝ AMD (AMD -4.70%) › Fell after initially rising post-earnings. While overall results beat expectations, data center revenue missed the mark, raising concerns about its position in the AI chip race.
➝ Nvidia (NVDA +1.74%) › Rebounded from Monday’s dip, but AMD’s report casts a shadow over broader AI growth optimism.

④ Robotaxi Roadblock ❌
➝ GM (GM -1.44%) › Announced plans to lay off half of Cruise’s workforce as it pulls back from the robotaxi business, aiming to save $1 billion annually after sinking $10 billion into the venture.

⑤ Palantir’s Power Play ✅
➝ Palantir (PLTR +23.99%) › Skyrocketed on blowout Q4 results with 36% revenue growth. Even longtime skeptics at Morgan Stanley upgraded the stock, admitting they were wrong about its growth potential.

⑥ Streaming Surge ✅
➝ Fox (FOX +4.86%) › Popped after crushing Q4 earnings and unveiling plans for a new streaming service, capitalizing on its strong content lineup ahead of the Super Bowl.

Commodities Check : ✔️

• Crude Oil: ⬇️ 0.8% › $72.60 per barrel, pressured by global demand concerns.

• Gold: ⬆️ 0.6% › $2,874.40 per ounce, as safe-haven demand ticked higher.

• Silver: ⬆️ 1.2% › $32.90 per ounce, following gold’s lead.

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The stinger

Disclaimer

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