US EQUITY OPEN: Stocks open lower after US President Trump signs 25% steel and aluminium tariffs

OPEN: US indices open in the red (SPX -0.22%, NDX -0.2%, DJIA -0.2%, RUT -0.5%) following US President Trump signed proclamations to reimpose 25% tariffs on steel and aluminium imports, effective March 12th. Materials are the best-performing sector, as US steel and aluminium names (X, STLD, NUE, AA) benefit. On the flip side, Utilities is the laggard and followed by Financials. In the US morning, data has been thin, with the NFIB Business Optimism Index falling in January. Meanwhile, Fed's Hammack kicked off the series of Fed members set to speak on Tuesday, noting it's still not clear that inflation will keep moving down to 2% and that they may be close to the neutral rate. In FX, the Dollar is on the backfoot against major peers, with GBP and EUR outperforming, while havens (CHF, JPY) see weakness amid higher US yields in wake of the newly announced US metal tariffs. Elsewhere, crude prices are firmer with no exemptions on said tariffs, while geopolitical updates see further escalation in the Middle East, with Trump saying if all Gaza hostages aren’t' returned by noon on Saturday, "he would say cancel the ceasefire and let all hell break out". The day ahead will centre on remarks from Fed Chair Powell testifying before the Senate, as well Bowman (again) speaking on banking regulation, and Williams to speak at a university event. In addition, US 3yr note auction as well as earnings from SuperMicro after-hours.

EARNINGS

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  Lattice Semiconductor (LSCC): Issued positive guidance for Q1 and announced new executive leadership changes.


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  Coty (COTY): EPS & revenue missed with FY outlook disappointing.


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  Dupont (DD): EPS & revenue topped with outlook largely in line.


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  Travelers Companies (TRV): Preliminary estimate of catastrophe losses re. Jan. ‘25 California wildfires is USD 1.7bln pre-tax.


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  Coca-Cola (KO): EPS, revenue, & unit case volume topped.


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  Marriott International (MAR): Q1 profit view light; Note, top & bottom-line beat.


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  GlobalFoundries (GFS): Q1 revenue guide fell short of expectations.


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  S&P Global (SPGI): EPS & revenue beat with new buyback plan; Strong FY profit guidance.


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  Fluence Energy (FLNC): Reported steeper loss per share, with revenue well below expectations. Also, cut its FY25 revenue and adj.EBITDA view.


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  Kering (PPRUY): Reported 12% drop in Q4 sales, largely due to a 24% slump at Gucci; Despite the decline, noted improvement in sales in China & US.

Stock specifics

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  Phillips 66 (PSX): Activist Elliott has built over USD 2.5bln stake in the Co.


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  Steel Dynamics (STLD): Upgraded to 'Overweight' from 'Sector Weight' at Keybanc, arguing recent operational challenges at Sinton are turning, Trump's supporting "materially positive" earnings revisions for Steel Dynamics along with "reasonable relative" valuation versus peers.


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  Dynavax Technologies (DVAX): Downgraded to 'Sell' from 'Neutral' at Goldman Sachs with a USD 12 PT (prev. 15). Goldman notes "Dynavax now ranks in the lowest quintile for potential upside in its coverage group".


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  Apple (AAPL): Has reportedly partnered with Alibaba (BABA) to develop AI features for iPhone users in China, via The Information. Apple tested DeepSeek’s models and did not proceed with them.

11 Feb 2025 - 15:00- EquitiesGeopolitical- Source: Newsquawk