Market Overview

The stock market experienced declines once again, continuing its downward trend amid escalating trade war tensions and growing concerns about economic growth. President Trump's announcement of a 50% tariff on Canadian steel and aluminum imports, effective Wednesday, has intensified the situation. This decision comes in response to Ontario's retaliatory measure of a 25% tariff on electricity exports to the U.S., which was in reaction to the initially proposed 25% tariffs on Canadian imports.

Corporate Earnings Warnings

Investors faced warnings about corporate earnings from several airlines and retailers. Notably, Delta Airlines (DAL) saw a decrease in its stock price to 46.68, down by 3.65 or 7.3%. Similarly, American Airlines (AAL) dropped to 11.46, a decline of 1.04 or 8.3%. In contrast, Southwest Airlines (LUV) experienced a positive change, with its stock rising to 30.53, up by 2.35 or 8.3%.Retailers also faced challenges, with Dick's Sporting Goods (DKS) falling to 198.97, a reduction of 12.05 or 5.7%, and Kohl's (KSS) dropping to 9.15, down by 2.90 or 24.1% after releasing disappointing full-year guidance following their quarterly results.

Market Volatility

The CBOE Volatility Index (VIX) spiked above 29.5, indicating that the market is bracing for further downside. Despite the overall negative sentiment, the Nasdaq Composite managed to trade above its previous close at its high for the day, driven by rebound buying in some mega-cap stocks. Tesla (TSLA) advanced to 230.58, up by 8.43 or 3.8%, and NVIDIA (NVDA, Financial) increased to 108.76, gaining 1.78 or 1.7%.

Economic Data Review

Today's economic data included the following:

• February NFIB Small Business Optimism at 100.7, down from the prior 102.8.
• January JOLTS - Job Openings at 7.740 million, with the prior figure revised to 7.508 million from 7.600 million.

Upcoming Economic Data

Wednesday's economic data schedule includes:

• 7:00 ET: Weekly MBA Mortgage Index (prior 20.4%).
• 8:30 ET: February CPI (consensus 0.3%; prior 0.5%) and Core CPI (consensus 0.3%; prior 0.4%).
• 10:30 ET: Weekly crude oil inventories (prior -2.33 million).
• 14:00 ET: February Treasury Budget (prior -$129.0 billion).

Overseas Markets

• Europe: DAX -1.3%, FTSE -1.2%, CAC -1.3%.
• Asia: Nikkei -0.3%, Hang Seng 0.0%, Shanghai +0.4%.

Commodities

• Crude Oil rose by 0.19 to 66.25.
• Natural Gas decreased by 0.04 to 4.46.
• Gold increased by 23.00 to 291.50.
• Silver gained 0.64 to 33.133.
• Copper rose by 0.11 to 4.76.

DAL,AAL,LUV,DKS,KSS,TSLA,NVDA

Guru Stock Picks

Carl Icahn has made the following transactions:

• Add in CVI by 0.3%

Dodge & Cox has made the following transactions:

• Reduce in BHF by 91.09%
• Add in BAX by 2.39%

Bruce Berkowitz has made the following transactions:

• Reduce in JOE by 0.92%

HOTCHKIS & WILEY has made the following transactions:

• Reduce in PETS by 10.69%
• Add in APA by 16.2%

Prem Watsa has made the following transactions:

• Add in ORLA by 77.68%

Today's News

Tesla (TSLA) has faced a significant downturn, with its stock plummeting 37% over the past 30 days, largely due to concerns over declining sales and economic uncertainties. This makes it the largest decliner among the Magnificent 7, which includes Amazon (AMZN, Financial), Meta (META, Financial), Alphabet (GOOG, Financial), Microsoft (MSFT, Financial), Apple (AAPL, Financial), and Nvidia (NVDA, Financial). The recent sell-off has sparked debates on whether Tesla will experience a rebound or continue its downward trajectory.

Super Micro Computer (SMCI, Financial) announced the integration of Intel's (INTC, Financial) Xeon 6 processors into their servers, a move aimed at enhancing edge AI solutions. This development led to a significant rise in Super Micro's stock, which surged over 10% on Tuesday, while Intel's shares fell by 0.8%.

Texas Instruments (TXN, Financial) experienced a near 5% drop in its stock despite unveiling the world's smallest microcontroller, built on Arm (ARM) technology. Meanwhile, AMD (AMD) and Intel (INTC, Financial) also saw declines, as concerns about potential inventory build-up in CPUs emerged.

Palantir (PLTR, Financial) shares increased by 4% following the release of a teaser for an upcoming announcement. The teaser hinted at a significant event, possibly related to the company's AI conference series, AIPCon.

In the semiconductor sector, Nvidia (NVDA, Financial) is seen as a buying opportunity despite recent declines. Wells Fargo highlighted Nvidia's strong performance history surrounding its annual GTC event, suggesting potential gains in the near term.

Snowflake (SNOW, Financial) is in talks with Google (GOOGL) to integrate Google's Gemini large language models, aiming to enhance AI capabilities for its customers. This collaboration underscores the growing importance of AI in tech partnerships.

Bank of America (BAC, Financial) continues to face losses amid broader market sell-offs and trade tensions. The stock has dropped over 12% in recent sessions, reflecting concerns over the impact of tariffs on economic growth.

Teradyne (TER) saw a 17% drop in its stock after updating its business guidance, citing volatility in its SemiTest business and uncertainties around tariffs. Despite no cancellations, the company anticipates some pushouts and capital reviews.

Merck (MRK) received a favorable ruling in a lawsuit concerning its Gardasil vaccine, with a judge finding insufficient evidence linking the vaccine to alleged conditions. This ruling could potentially bolster investor confidence in Merck's legal standing.

GuruFocus Stock Analysis

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