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NEWS
Reciprocal Tariffs Make A Return

Source: Tenor.com

The stock market slid on the latest geopolitical concerns, giving back several days of gains and closing the week down marginally. Despite continued newsflow from earnings, economic data, and geopolitical moves, neither bulls nor bears are making much directional progress in the equity or crypto markets. Investors are patiently awaiting the next big catalyst to help the market make up its mind. 👀

Today’s issue covers Trump’s latest tariff tease, what’s driving the energy sector’s volatility, and other noteworthy pops & drops. 📰

Here’s the S&P 500 heatmap. 0 of 11 sectors closed green, with energy (-0.01%) leading and consumer discretionary (-1.96%) lagging.

Source: Finviz.com

And here are the closing prices: 

STOCKS
Tariffs Cause Stocks To Turn Lower 📉 

Yes, this is the same main story headline from last Friday’s issue. We literally copied and pasted it because Trump’s tariff talk is back, this time with a twist.

President Donald Trump plans to announce reciprocal tariffs next week. These differ from “flat fee tariffs” because they seek to equal the tariffs other countries impose on U.S. imports. An eye for an eye attitude, with Trump saying, “I think that’s the only way to do it. They charge us. We charge them.” 👁️ 

The move sent stocks down across the board as investors raced to figure out which countries and companies could be impacted most. The U.S. Dollar Index jumped on the news, alongside interest rates, snapping their recent losing streak.

The consensus right now is that these moves will only make it more difficult to keep interest rates down, as Trump noted as a goal of his administration. The strengthening of the U.S. Dollar, alongside factors like a resilient labor market, will continue to put upward pressure on borrowing costs (and potentially inflation). 🔺 

January’s nonfarm payrolls report showed softer job growth of 143,000, missing estimates of 169,000 and down from December’s 307,000. Average hourly earnings growth remained higher than inflation (+0.5% MoM and 4.1% YoY), and the unemployment rate ticked down to 4% as labor force participation rose 0.1%. 📊 

Trump’s trade actions are affecting the broader economy and markets, as well as individual stocks. U.S. Steel’s shares saw volatility jump as Trump organizes a deal to have Japan’s Nippon Steel invest in the company instead of purchasing it outright for $55 per share ($12.3 billion). 

Geopolitical decisions like this have the ability to reshape the American steel business (and other industries), so analysts and investors are watching the outcome closely. However, in the interim, as a deal is fleshed out and discussed publicly via Trump, volatility will likely remain high for companies caught in the crosshairs. 🎯 

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COMMODITIES
Trump To “Drive” Energy Prices Down ⛽️ 

U.S. crude oil prices experienced their third straight weekly decline, coming under pressure as Trump repeated his pledge to “drive down oil prices” by increasing domestic production. 🛢️ 

Still, analysts say there are very few signs of accelerating U.S. drilling activity and that tariffs on Canada, Mexico, and other trade partners could put upward pressure on oil prices in the near term.

Additionally, Trump’s pressure on Saudi Arabia and other OPEC+ countries to raise production has had little impact so far. Instead, some analysts say that new U.S. sanctions related to Iranian oil making its way to China could raise geopolitical tensions in the region and cause the market to price in more upside pricing risk. 😬 

Crude oil prices and the overall energy complex are expected to remain volatile as these trade decisions are proposed, hashed out, and ultimately finalized. For now, traders and investors are taking Trump’s goal of bringing down oil prices (and therefore overall inflation) at face value…steering clear of buying this recent dip.

Stocktwits community sentiment reflects this uncertainty, sitting in ‘neutral’ territory as investors wait for the dust to settle before betting aggressively either way. 🤷 

Source: Stocktwits

Speaking of “driving,” we must mention Bill Ackman pumping his bags in Uber just days after its lackluster earnings report. Stocktwits community sentiment surged into the ‘extremely bullish’ range on the news.

Still, the bull thesis is not without risks, as 50% of the over 2,000 respondents see autonomous vehicles as a major long-term risk. ⚠️ 

Source: Stocktwits

PRESENTED BY STOCKTWITS
“The Weekend Rip” With Ben & Emil 🥶 

Hosts Ben and Emil are back for another Weekend Rip, live from cold and windy New York City. They cover Palantir pumping to the moon, Meta’s new layoff plans, TikTok killing e.l.f. Beauty, Trump’s sovereign wealth fund idea, Dave Portnoy joining the world in pumping his crypto bags, and a whole lot more!

STOCKS
Other Noteworthy Pops & Drops 📋️ 

Nvidia ($NVDA +1%): Morgan Stanley reaffirmed it as a top pick with a $152 target even though the stock is down more than 5% this year, following an 87% 12-month surge. Amazon’s pledge to keep using Nvidia chips for AI met skepticism amid concerns over export controls and DeepSeek AI competition.

IBEX ($IBTX +11%): Posted record quarterly revenue of $140.68M, beating estimates by nearly $7M. Net income soared 52.6% to $9.27M, driven by bigger margins offshore and fewer diluted shares in play.

Honeywell ($HON -2%): Will split into three standalone outfits—Automation ($18B revenue), Aerospace ($15B), and Advanced Materials ($4B). Analysts are divided: some welcomed the breakup, others trimmed targets amid short-term uncertainty.

Synaptics ($SYNA -5%): Mizuho cut its price target to $90, despite a Q2 EPS beat at $0.92 versus $0.86 expected. The company also revealed CEO Michael Hurlston is out, with CFO Ken Rizvi taking the helm until a successor is found.

Aspen Technology ($AZPN +4%): Elliott Investments slammed Emerson’s $265-per-share tender offer for Aspen Tech’s remaining stake as “highly opportunistic,” especially given its $1.5B investment. Emerson already owns 57% of Aspen, whose stock traded up to around $277—well above the proposed bid.

Methanex ($MEOH -1%): UBS bumped its price target from $63 to $66, reiterating a “Buy” and citing an undervaluation. The Canada-based company is a major methanol supplier globally, spanning North and South America, Europe, and Asia Pacific.

Construction Partners ($ROAD +3%): Beat estimates with EPS of $0.25 versus $0.15 expected, while Q1 revenue skyrocketed 41.6% to $561.6M. A $3.1M net loss came largely from acquisition costs, though those deals helped boost top-line growth.

Plains All American Pipeline ($PAA -3%): Q4 revenue of $12.4B missed estimates by over $1.3B, dragging down net income by 88% to $36M. It also took a $140M non-cash hit tied to natural gas liquid terminals, capping off an already bumpy quarter.

Quantum BioPharma ($QNTM -22%): Soared this week on news that its Unbuzzd supplement cuts blood alcohol levels 40% faster within 30 minutes. The firm added to its buzz factor with a December purchase of $1M in Bitcoin and other crypto.

e.l.f Beauty ($ELF -20%): Net sales soared 40% on strong retailer and e-commerce channels, while EPS missed estimates ($0.74 vs. $0.76). SG&A ballooned by $220.7M—60% of net sales—fueled by marketing, digital spend, and operational cost jumps.

Roblox ($RBLX -1%): Added to its post-earnings decline after the Securities & Exchange Commission (SEC) confirmed it is part of an ‘active investigation.’

COMMUNITY VIBES
One Tweet To Sum Up The Week 🎯 

$MSTR MicroStrategy is now just Strategy…

“Drop the Micro, it’s cleaner”

— Stocktwits (@Stocktwits)
7:20 PM • Feb 5, 2025

Links That Don’t Suck 🌐

🧑‍🏫 Join a free 2-hour online workshop on 2/8 to learn investing strategies from IBD’s market experts*

💊 Bain throws down $3.3B to acquire Japan’s Mitsubishi Tanabe Pharma

🙀 Cats won’t be banned in Scotland, the government confirms

🐷 New Hampshire man is 2nd person known to be living with a pig kidney

☕️ Arabica coffee futures rally to new all-time highs, as global exports slow down in December

🤯 Big Tech set to invest $325 billion this year as hefty AI bills come under scrutiny

🤔 China’s economic miracle looks to be in the past. Here’s why the future looks bleaker and bleaker

*3rd Party Ad. Not an offer or recommendation by Stocktwits. See disclosure here.

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