To The Moon

Stocks closed solidly higher on Tuesday, one day after President Donald Trump returned to office and issued a barrage of executive orders, including several that will have an impact on businesses and the economy.

The Dow Jones Industrial Average and S&P 500 rose 1.2% and 0.9%, respectively, while the Nasdaq Composite tacked on 0.6%. Stocks added to strong gains posted last week, when the Dow and S&P 500 turned in their best weekly performances since the week of the presidential election in early November. (The U.S. market was closed Monday to commemorate Martin Luther King Jr. Day.)

Among the dozens of orders signed after the inauguration on Monday, Trump called on federal agencies to take steps to reduce inflation, develop new energy sources and deport unauthorized immigrants. While he did not implement tariffs as he had previously pledged to do on "day one", Trump said that the administration is considering 25% tariffs on Mexico and Canada, and he also said an "External Revenue Service" would be established to collect "massive amounts of money pouring into our treasury coming from foreign sources."

S&P 500 Energy Lower Followed National Energy Emergency Declared

Energy stocks followed oil prices lower. The S&P 500 Energy Sector Index slid 0.6% and was the only sector group to lose ground. Shares of $Exxon Mobil(XOM)$ and $Chevron(CVX)$ , America’s most valuable oil producers, fell 0.8% and 2%, respectively. 

Clean energy stocks also tumbled after Trump signed a slew of orders to unwind his predecessor's support for clean energy. Trump on Monday removed the U.S. from the Paris Agreement and halted the development of new wind farms off the U.S. coast, underscoring the administration’s hostility to renewable energy projects. First Solar (FSLR) and Enphase Energy (ENPH) fell 4.9% and 1.3%, respectively.

Note Yield Fell As Stocks Advanced

Stocks advanced, Treasury yields fell and crypto was volatile on Tuesday as market participants reacted to the slew of executive orders issued on the first day of Donald Trump’s second term as president. Trump ran on promises to restrict immigration, erect trade barriers, slash corporate regulations, and extend tax cuts. But the executive orders mainly cover actions to restrict immigration and trade, with little to nothing on deregulation and fiscal policy.

The yield on 10-year Treasurys, which is sensitive to expectations about where interest rates are headed, was at 4.57% recently, down from 4.61% on Friday and trading at its lowest levels in two weeks. The 2-year treasury was also down to 4.283 down by eight basis points.

Stocks To Watch

Shares of nuclear power generators moved higher on the first day of trading in the second Trump administration. Chris Wright, selected by Trump to head the Department of Energy, has stressed that the U.S. will prioritize nuclear power production as it aims to increase energy output. $Vistra Energy Corp.(VST)$ shares surged 8.5% Tuesday, posting the S&P 500's top performance, after authorities lifted evacuation orders related to a fire at a company plant in Monterey County, California. NRG Energy (NRG) shares were up 6.7%.

We are seeing a strong bullish reversal from VST after it continued to trade higher then sideways above the 200MA, and we are seeing very nice upside movement from MACD as well.

MTF is also giving a strong upward trend and I believe we should be seeing some nice upside movement moving into the week.

Shares of $Oracle(ORCL)$ popped 7.2% higher following reports that the software giant would participate in a $500 billion program aimed at enhancing artificial intelligence (AI) infrastructure in the U.S. According to CBS News, Trump is set to announce a massive private-sector investment—a joint venture known as Stargate that will also include Japanese holding company SoftBank (SFTBY) and research organization OpenAI.

$Prologis(PLD)$ , a real estate investment trust (REIT) focused on logistics facilities, reported better-than-expected core funds from operations (FFO) for the fourth quarter, and its shares jumped 7.1%. An increase in demand for warehouse space—boosted by importers stocking up on goods in anticipation of potential tariffs under the new presidential administration—helped drive the strong performance. Prologis also sold a Chicago-area data center facility during the quarter but did not disclose the financial details of the transaction.

Summary

I think we should still be getting some positive momentum from the stocks as the effect of the executive orders would start to affect some other sectors. The AI and quantum computing sectors might also be something we can look into.

Appreciate if you could share your thoughts in the comment section whether you think market would continue to trade in a positive momentum this week.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.