US Stocks Rise as Trump Begins Second Term

Key Highlights:

* US stocks climbed on Tuesday, buoyed by solid earnings and hopes for pro-business policies.
* The Dow Jones Industrial Average (DJI) led gains, rising over 1% following strong results from 3M Company (MMM).
* The S&P 500 (GSPC) and Nasdaq Composite (IXIC) also advanced, although more modestly.

Market Reaction to Trump's Policies

* Markets initially reacted with relief as President Trump refrained from imposing broad-based tariffs on his first day.
* However, sentiment shifted after Trump announced potential 25% duties on Mexico and Canada.
* Chinese stocks (000300.SS) gained only slightly, suggesting investors' concerns about a potential trade war.

Earnings Reports Drive Gains

* Netflix (NFLX) is expected to report strong quarterly results after the bell.
* Charles Schwab (SCHW) earnings surged nearly 50% due to increased trading activity.
* D.R. Horton (DHI) exceeded expectations despite a weak housing market.

Oracle Soars on Trump's AI Investment

* Oracle (ORCL) jumped as much as 6% on Tuesday after reports of a $500 billion investment in artificial intelligence (AI) infrastructure.
* The investment is part of a joint venture with OpenAI and SoftBank.

Bitcoin Retreats After Trump's Silence

* Bitcoin (BTC-USD) pulled back from record highs after Trump did not make any pro-crypto announcements in his initial policy actions.
* Industry leaders still believe crypto-related executive orders may be on the horizon.

Homebuilder DHI Faces Challenges

* D.R. Horton (DHI) shares fluctuated on Tuesday after reporting weaker-than-expected home orders.
* The homebuilder affirmed its full-year guidance but acknowledged potential headwinds from higher mortgage rates.

Dollar Falls Amid Trade Uncertainty

* The US dollar (DX-F, DX-Y.NYB) initially declined as Trump avoided tariffs.
* The dollar recovered some losses after the president indicated tariffs on Mexico and Canada could be implemented in February.
* Market analysts expect continued volatility in the dollar as Trump's trade policy evolves.

Tesla Stock Drops on Electric Vehicle Policy Reversal

* Tesla (TSLA) shares declined over 4% after Trump revoked a mandate requiring half of new US cars to be electric by 2030.
* Other EV stocks, such as Lucid (LCID) and Rivian (RIVN), also fell on the news.

Stocks Rise at the Open

* US stocks opened higher on Tuesday, with investors cautiously optimistic about the implications of Trump's executive orders.
* The Dow Jones Industrial Average (DJI) and S&P 500 (GSPC) both gained around 0.5%, while the Nasdaq Composite (IXIC) climbed by a similar margin.