Joey Solitro
Stocks opened higher Wednesday as investors looked ahead to AI bellwether Nvidia's (NVDA) after-the-close earnings report. But the main indexes turned lower in afternoon trading when President Donald Trump said he is considering implementing 25% tariffs on the European Union.
During the first cabinet meeting of his second term, Trump said the tariffs will apply to "cars and all other things." He added that "the European Union was formed in order to screw the United States. That's the purpose of it. And they've done a good job of it."
Trump also said that tariffs on Mexico and Canada will go into effect this Sunday, March 2.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
At the close, the Nasdaq Composite held on for a 0.3% gain to 19,075 and the S&P 500 was flat at 5,956. The Dow Jones Industrial Average, meanwhile, shed 0.4% to end at 43,433.
Boeing (BA) and Amgen (AMGN) were tied for the worst Dow Jones stocks today, dropping 2.9% apiece. Rounding out the bottom five were Apple (AAPL, -2.7%), Merck & Co. (MRK, -2.2%) and McDonald's (MCD, -2.1%).
SMCI avoids delisting
As for today's notable gainers, Super Micro Computer (SMCI) topped the list, soaring 12.2% after the AI server, software and infrastructure company submitted its delayed financial results to regain compliance with the Nasdaq.
"SMCI filing its financials should reduce uncertainty, and we see reasons to believe SMCI's business should expand significantly in the first half of 2026," wrote Wedbush analyst Matt Bryson in a February 12 note.
However, Bryson hesitates to forecast too aggressively because he believes "SMCI's second flirtation with questionable financials" will "continue to weigh somewhat on the company's perceived risk profile (and the multiple investors are willing to pay)."
Lowe's gains after earnings
Lowe's Companies (LOW) stock rose 1.9% after the home improvement retailer beat top- and bottom-line expectations for its fourth quarter and reported a surprise increase in comparable-store sales. LOW also gave a positive full-year revenue forecast.
"I think the market underestimated comp sales' return to positive territory this morning, showcasing strong outperformance vs the midpoint of guidance that was underwritten by analyst expectations," says David Wagner, head of equity and portfolio manager at Aptus Capital Advisor.
Wagner adds that everyone is trying to gauge the health of the consumer from recent retail earnings, "but everything continues to point to the consumer remaining very healthy and resilient."
GM shares rise on dividend hike, stock buybacks
General Motors (GM) shares jumped 3.8% after the automaker announced a 25% increase to its quarterly dividend and a new $6 billion stock buyback program.
"The GM team's execution continues to be strong across all three pillars of our capital allocation strategy, which are to reinvest in the business for profitable growth, maintain a strong investment grade balance sheet, and return capital to our shareholders," said CEO Mary Barra in a statement.
And Chief Financial Officer Paul Jacobson noted that the company is "confident" in its business plan and "will be agile" if it needs "to respond to changes in public policy."
Nvidia gains ahead of earnings
Nvidia gained 3.7% ahead of the chipmaker's highly anticipated fiscal fourth-quarter earnings report, due out after the close. Analysts expect the company to report earnings of 85 cents per share, up 61.5% year over year, on revenue of $38.1 billion (+72.5% YoY).
Follow along with our Nvidia earnings live blog to get all the latest news from the print and the conference call.
Related content
- Bull Markets vs Bear Markets: The Differences Explained
- The Best ETFs to Buy Now
- Best Investments to Sidestep a Trade War
-
Investing Abroad Could Pay Off — Here's HowCountries overseas are stimulating their economies, and their stocks are compelling bargains.
-
Retire in Belize for Stunning Natural Beauty and CultureBelize offers miles of protected land and ocean, a rich mix of cultures and a chill lifestyle. Best yet — the income requirement is just $2K per month.
-
Why Investing Abroad Could Pay Off
Countries overseas are stimulating their economies, and their stocks are compelling bargains.
-
Are These the Next Stocks to Split?Interactive Brokers' recently split its stock to makes its shares more accessible to investors. Could these high-priced stocks be next?
-
Your Home + Your IRA = Your Long-Term Care SolutionIf you're worried that long-term care costs will drain your retirement savings, consider a personalized retirement plan that could solve your problem.
-
I'm a Financial Planner: Retirees Should Never Do These Four Things in a RecessionRecessions are scary business, especially for retirees. They can scare even the most prepared folks into making bad moves — like these.
-
A Retirement Planner's Advice for Taking the Guesswork Out of Income PlanningOnce you've saved for retirement, you'll need your nest egg to support you for as many as 30 years. For that, you need a clear income strategy, not guesswork.
-
Stock Market Today: Stocks Swing as Trump Scraps Canada Trade TalksDespite a mid-afternoon slip, the S&P 500 and Nasdaq ended the day at new record highs.
-
Why Smart Retirees Are Ditching Traditional Financial PlansFinancial plans based purely on growth, like the 60/40 portfolio, are built for a different era. Today’s retirees need plans based on real-life risks and goals and that feature these four elements.
-
To My Small Business: Well, I've Been Afraid of Changin', 'Cause I've Built My Life Around YouWhile thinking about succession planning might feel like anticipating a landslide (here's to you, Fleetwood Mac), there are strategies you can implement to manage the uncertainty and the transition.
