Sample Weekday Wrap/Closing Comments

Steeling America from Invaders
The most memorable performance this weekend? Kendrick Lamar.  And he wasn’t on the field. Philadelphia decimated Kansas City in a lop-sided Super Bowl. But the markets didn’t move today because Patrick Mahomes is now tied with Tom Brady for Super Bowl losses. 

Another Chief made a splash on Sunday… the Commander-in-Chief one…Gatling would be impressed with the speed of which Trump is firing off tariffs. This round he takes eye at raw materials. 

The White House announced a 25% tariff on all steel and aluminum imports…. Though, when he plans for them to go into effect is as murky as Kansas City’s Super Bowl chances next season. 

But that’s never stopped investors from getting a jump on the expected winners in what seems to be a brewing trade war. 

Shares of Cleveland-Cliffs (CLF) – that domestic producer of iron ore in the Great Lakes region of Michigan and Minnesota – surged more than 18.5% on the news. 

Few companies will benefit as much as Cleveland-Cliffs. The tariffs provide a shield from foreign competitors… and keeps Trump’s campaign promise of “America First.”

Meanwhile, shares of Nucor Corporation (NUE) rallied nearly 6%. And we also saw shares of U.S. Steel (X) gain more than 4%, as aluminum producer Alcoa (AA) chugged roughly 3% higher. 

Now, today’s session was an about-face from Friday’s meltdown. The Dow Jones Industrial Average, the S&P 500, Nasdaq, and Russell 2000 reversed course and all launched higher. So, did U.S. crude and one of our favorite of assets here, gold. 

Of course, this type of whipsawing action is perfect for our resident day traders, Hugh Grossman and Jon Johnson. 

The duo manning DayTradeSPY live for these kind of conditions. In fact, trading room members pocketed profits during Friday’s selloff (in the first three minutes of the session!), as well as gains from Thursday’s pick… and  trade room members were set up for gains during today’s rebound.

Before the opening bell, Hugh and Jon give guidance and provide their Pick of the Day. 

Then they open the trading room to subscribers for investors to follow along with profit targets.

Here’s the best part… it only takes an hour!

That’s shorter than a Wall Street lunch break and potentially infinitely more profitable. 

We know, news like the steel and aluminum tariffs (which were announced during a jaunt on Air Force One on Sunday)… the reciprocal tariffs on Friday…. Federal Reserve Chair Jerome Powell’s Congressional testimony tomorrow… CPI on Wednesday… PPI on Thursday… retail sales on Friday… it’s not going to stop.And short-term trades on the SPDR S&P 500 ETF (SPY) are the perfect compliment to the longer-term strategies we offer. So, to take a peek at the gains Hugh and Jon are delivering daily to investors, sign up for DayTradeSPY today!

Chart of the Day

These weren’t fly-by-night names hidden away from everyday investors. These were names all of us know and are familiar with – Nvidia (NVDA), Broadcom (AVGO), Taiwan Semiconductor Manufacturing Corp. (TSM), Marvell Technologies (MRVL) and SMIC (0981.HK).

And the flight of the five names was fueled by two simple letters that are worth trillions… A.I.

Well, today, investors are starting to wonder if their valuations are too high. And as George Gilder reminds us, “Sometimes extraordinary valuations are justified, or justified enough to sustain buy-and-hold even through some expected volatility.”

Looking at that list above, Nvidia stands alone both in reputation and reality. As Gilder outlined in today’s column, “Some companies, though not many in a generation, change the world more than the world changes them. Nvidia is such a company.”

He explains how a company’s reign – like Nvidia’s at the moment – doesn’t last for years, but decades. Think Microsoft (MSFT), Apple (AAPL), Amazon (AMZN), and Netflix (NFLX). Each of these turned tens of thousands of everyday investors into millionaires. 

To read George’s full analysis, be sure to check out Gilder’s Guideposts and subscribe to Gilder’s Technology Report … if you haven’t already. 

Market Signals

Bryan Perry wrote some words of wisdom for us today:

“Income investors should feel encouraged as the Fed stays the course of gradually lowering short-term interest rates with the domestic economy growing GDP at an annual rate of around 3%.”

Over the past couple of years, income and value stocks have fallen out of favor in lieu of growth. But remember… with dividends, time is our ally, not our enemy. And the Fed can provided a much-needed assist as well. 

As Bryan stressed, “This is great news for balance sheets of U.S. corporations and even better news for the high-yield corporate bond market. The iShares Broad USD High Yield Corporate Bond ETF (USHY) is the largest by total assets ($15 billion), paying a 6.83% current yield with a weighted average maturity of 3.95 years. 

The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) saw significant inflows in January as investors added $1.2 billion to the fund. There is something to be said for ‘just follow the money.’ It tends to be a good strategy.”

Be sure to read Bryan’s full analysis here. 

Notable Names

Monday.com (MNDY) +26.8% … reported fourth quarter revenue rose 32% to $268 million as earnings soared to $1.08 per share. Both blew past Wall Street expectations. The company added 20,000 customers to its cloud-based platform during the quarter, bringing its total to 245,000. Monday has been adding A.I. to its platform and is seeing record-breaking cross-selling activity. 

AST SpaceMobile (ASTS)  +18.5% … Here, the Super Bowl effect is in effect. The big game’s commercial breaks were dominated by T-Mobile (TMUS) touting its new direct-to-cell (DTC) collab with SpaceX’s Starlink. Well, AST is planning to offer its own DTC service. And already penned partnerships with AT&T (T) and Verizon (VZ). (For those in the know, Verizon is one of Jim Woods’ Top 10 Income Multipliers in Investing Edge… subscribers have already scored massive wins on A.I. names, and he appears ahead of the curve on DTC!)

Semetech (SMTC) -31% … the semiconductor suffered its worst day since 1986 as Nvidia scales back purchases. After the bell on Friday, Semetech announced sales of its CopperEdge products, used in copper cables, would come in lower than the $50 million it previously forecast… all due to a “major customer,” i.e., Nvidia. This is bad news for the company as Nvidia’s shunning reduces its total addressable market. 

You May Have Missed

Big Data’s Big Business The four largest hyperscalers will spend a collective $325 billion… and that’s merely to build data centers and the necessary infrastructure. This is a 43% increase over last year. And that’s just the top four. Once we start adding in the other names, the amount spent swells to eye-watering levels. Bryan Perry explains…

Forget AI… the Next Tech Breakthrough is Here George Gilder has unearthed a material that’s 200X stronger than steel! It’s a miracle material that countries are racing to get their hands on. And there’s only one company in the world that’s producing it, poised to reap trillions. 

Fueling the World’s Future In 2024, investors zeroed in on the resurgence of nuclear energy. But Bryan Perry is focused on another fuel all together. Global demand for this lifeblood of the future will soar by at least 50% by 2040. And the United States is the No. 1 exporter of this fuel. Investors who act now have the opportunity to earn a 10% annual yield. Best of all… Bryan is providing this information for FREE!

The One Asset Investors Can’t Overlook There is an asset that is the backbone of the economy. And it’s not oil, natural gas, coal, semiconductors, or steel. It’s something close to every one of our hearts. And Jim Woods has spied a simple way to play it. A single button approach to help diversify your portfolio and snag gains in 2025. 

Fact of the Day

(courtesy of DayTradeSPY)

On February 10, 1996, the IBM supercomputer Deep Blue defeats Garry Kasparov for the first time.

Alternative: Today’s Maxim

“Always ask, ‘How much money can you stand to lose?’” – Donald Trump

Click here to get your hands on your very own copy of The Maxims of Wall Street.

What We’re Watching

Tuesday, Feb 11

8:50AM EST. Fed President Beth Hammack speaks

10 AM EST. Fed Chair Jerome Powell testifies before Congress

10:20 AM EST. San Francisco Fed President Mary Daly

3:30PM EST. New York Fed President Williams speaks

3:30PM EST. Fed Governor Michelle Bowman

Earnings Before the Opening Bell:

Du Pont de Nemours (DD) is projected to report quarterly earnings at $0.98 per share on revenue of $3.07 billion.

Shopify (SHOP) is expected to see $2.73 billion in revenue with earnings of $0.43 per share. 

Coca-Cola (KO) s expected to report quarterly earnings at $0.52 per share on revenue of $10.70 billion.

Marriott International (MAR) is projected to report quarterly earnings at $2.36 per share on revenue of $6.39 billion.

Earnings After the Closing Bell:

Super Micro Computer (SMCI) is projected to report quarterly earnings at $0.63 per share on revenue of $5.78 billion.

Lyft (LYFT) is projected to report quarterly loss at $0.01 per share on revenue of $1.55 billion.

Zillow Group (ZG) is estimated to report quarterly earnings at $0.27 per share on revenue of $533.26 million.

DoorDash (DASH) is projected to report quarterly earnings at $0.33 per share on revenue of $2.84 billion.