Key Takeaways
Major U.S. equities indexes moved higher on Tuesday as investors weighed the impact of the latest tariff developments, including one-month delays to tariffs on imports on Mexico and Canada as well as immediate retaliation from China.
Meanwhile, a labor market report showed fewer-than-expected job openings in the U.S. economy. Economists said it was an indication of stability in the jobs market that alleviates the urgency of potential Federal Reserve interest rate cuts.
The S&P 500 added 0.7%. The Dow ended 0.3% higher, while the tech-heavy Nasdaq jumped 1.4%.
The S&P 500's top performance came from shares of Palantir Technologies ( PLTR ), which skyrocketed 24.0% after the analytics software firm posted better-than-expected sales growth for the fourth quarter. Palantir highlighted strong demand for its Artificial Intelligence Platform and struck an optimistic tone about its positioning in AI markets, issuing an upbeat sales forecast for 2025.
Super Micro Computer ( SMCI ) shares jumped 8.6% after the server and data storage provider announced it would hold a conference call on Feb. 11 to provide a business update for its fiscal second quarter of 2025. Supermico stock has seen significant volatility as accounting concerns delayed the release of the company's fiscal 2024 annual report. The newly scheduled update will come around two weeks ahead of the Nasdaq exchange's extended deadline for Supermicro to file the postponed report.
Oil refiner Marathon Petroleum ( MPC ) topped quarterly profit forecasts, and its shares advanced 6.7%. Although a drop in refining margins contributed to a year-over-year decline in adjusted net profits, strength in its renewable diesel division and midstream operations helped boost Marathon's quarterly results.
Estée Lauder ( EL ) did not fare as well in its earnings report. A slump in demand in China and the rest of the Asia-Pacific region contributed to an unexpected operating loss for its fiscal second quarter. The cosmetics and personal care giant also announced a restructuring plan that includes leadership changes and job cuts. Estée Lauder shares suffered the heaviest losses in the S&P 500 on Tuesday, plunging 16.2%.
PayPal Holdings ( PYPL ) shares also suffered a post-earnings decline, dropping 13.2% after the payment platform operator fell short of adjusted earnings expectations . Although net income and revenue exceeded estimates, PayPal reported a growth slowdown in total payment volume and the number of transactions per active account. Analysts expressed concern about potential pricing and market share issues for PayPal subsidiary Braintree, which processes transactions for companies like Uber ( UBER ) and Airbnb ( ABNB ).
Shares of Merck ( MRK ) fell 9.1% after the drugmaker reported lower-than-expected profits for the fourth quarter. While revenue and adjusted earnings topped estimates, Merck's 2025 sales outlook failed to match consensus forecasts. The company said soft international demand weighed on sales of the human papillomavirus vaccine Gardasil, while lower pricing in the U.S. contributed to a sales decline for the diabetes treatment Januvia.
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