Markets rise on strong earnings from Nasdaq stocks

Dow was up 144, decliners over advancers 3-2 & NAZ gained 254.  The MLP index was off 1+ to the 324s & the REIT index dropped 6 to 401.  Junk bond funds crawled higher & Treasuries had very limited buying which kept yields little changed (more below).  Oil slid lower in the 75s & gold added 5 to 2764 (closing in on its record high at 2790 3 months ago).

Dow Jones Industrials

Procter & Gamble (PG) a Dow stock & Dividend Aristocrat, reported quarterly earnings & revenue that beat expectations, thanks to growing demand for household staples like toilet paper & laundry products.  PG reported fiscal 2nd-qtr EPS of $1.88, up from $1.40 a year earlier.  Net sales rose 2% to $21.9B.  Organic revenue, which excludes currency changes & divestments, increased 3% in the qtr.  Volume grew 1% during the period.  The metric excludes pricing, which makes it a more accurate reflection of demand than sales.  Like many consumer companies, PG has seen weaker demand for its products after several years of price hikes.  Baby, feminine & family care division reported the biggest increase in volume, with a 4% jump.  PG credited its family care & feminine care brands, which include its Charmin, Puffs & Tampax products.  But baby care organic sales slid by low single digits, as fewer parents bought Pampers diapers.  The grooming segment, which includes Gillette razors, saw volume rise 2% in the qtr with innovation fueling the increase in volume.  The fabric & home care division reported a volume increase of 1%.  The segment includes Tide, Swiffer & Cascade products.  PG's health-care segment, which includes Pepto Bismol & Oral-B products, reported flat volume.  PG also reiterated its fiscal 2025 forecast.  It anticipates core EPS of $6.91 - $7.05 & revenue growth of 2-4%.  The stock rose 4.45.

Procter & Gamble earnings beat estimates as shoppers buy more household staples

Treasury yields were little changed as investors awaited more economic data & digested Pres Trump's latest comments.  The 10-year Treasury yield sat near flat at 4.568% & the 2-year Treasury yield ticked lower by around 1 basis point to 4.27%.  1 basis point is equal to 0.01% & yields & prices move in opposite directions.  Trump signed more than 40 exec orders on his first day in the White House, including withdrawing the US from the Paris Climate Agreement, pardoning roughly 1500 people who were charged in relation to the attack on the Capitol on Jan 6, 2021 & ending diversity, equity & inclusion programs.  He also made comments about tariffs, a topic traders have been monitoring closely.  Trump said he's considering imposing 25% tariffs on Mexico & Canada & a 10% levy on China.  Investors will be waiting to see whether Trump enforces the pro-business policies that he pledged during his campaign.

Treasury yields are little changed as investors weigh the state of U.S. economy

Pres Trump widened his tariff threats to include China & the European Union on his 2nd day back in office after day 1 saw Canada & Mexico in his sights.  “We’re talking about a tariff of 10% on China, based on the fact that they’re sending fentanyl to Mexico and Canada,” Trump said during an event at the White House, specifying Feb 1 as a possible date.  “Other countries are big abusers also, you know it’s not just China,” Trump said.  “We have a $350 billion deficit with the European Union. They treat us very very badly, so they’re going to be in for tariffs.”  The threats echo comments made throughout Trump's campaign for a return to the White House & since his sweeping Nov 5 victory.  But the only actual action taken so far is the call for a review of trade practices that's due by Apr 1, potentially giving China & others almost 10 weeks to avert new levies or address his demands.  China's gov reiterated their opposition to tariffs, with Ministry of Foreign Affairs spokeswoman Mao Ning saying that there are no winners in a trade war, adding that China would safeguard its national interest.

Trump threatens 10% tariff on China within weeks

A number of Big Tech stocks are jumping after Pres Trump announced a new AI infrastructure project called Stargate yesterday.  Dow is near where it was around election time.