U.S. Markets Open Higher Amidst Trade, Energy and Immigration Policy Volatility
U.S. equity futures surged in early Tuesday trading as investors anxiously await the impact of President Donald Trump's first-day declarations on trade, energy, and immigration policies.
3M (MMM)
3M posted stronger-than-expected fourth-quarter earnings, with earnings per share at $1.68 and revenues rising 4% to $6.01 billion. The company also issued its first 2025 profit forecast, projecting earnings between $7.60 and $7.90 per share, in line with analyst estimates. 3M shares rose 1.25% in premarket trading.
Presidential Policy Declarations
President Trump declared a national emergency to accelerate oil and gas drilling, while revoking an Executive Order from President Biden on U.S. oil exports. Trump hinted at potential tariffs on Canadian and Mexican goods on February 1st, while keeping China under observation. He also incorrectly stated that inflation was at "record highs" and ordered his cabinet to reduce prices.
Market Reactions
The U.S. dollar initially fell sharply before recovering, while global stocks fluctuated. The U.S. dollar index was down 0.6%, while the Canadian dollar hit a five-year low. Treasury note yields fell, with the 10-year yield at 4.571% and the 2-year yield at 4.259%. Crude oil prices declined, with Brent contracts at $79.23 per barrel and WTI contracts at $75.75 per barrel.
Stock Futures
Stock futures indicated a strong start to the trading day, with S&P 500 futures pointing to a gain of 24 points, Dow Jones Industrial Average futures suggesting an advance of 152 points, and Nasdaq futures showing a 105-point increase. Intel, Nvidia, and Tesla were active in premarket trading.
International Markets
Europe's Stoxx 600 edged higher, while automaker stocks declined after Trump revoked the electric vehicle Executive Order. FTSE 100 gained modestly in London. Asian markets closed mixed, with Nikkei 225 up 0.32% and MSCI ex-Japan gaining 0.03% amid Trump's cautious stance on tariffs.