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As investors and other market watchers digest 2025 Inauguration Day and the initial push by the Trump administration equity futures point to a positive start when US equity markets open later this morning. Those futures were pointing to even stronger gains but gave up some ground following Monday night comments from President Trump that he was considering 25% tariffs on Mexico and Canada beginning February 1. Trump invokes emergency powers in a bid to boost domestic energy production and undo Biden-era policies designed to fight climate change.Among the sea of other executive orders, Trump ordered all department and agency chiefs in the executive department to eliminate work-from-home options and return employees to in-person work “as soon as practicable.” The administration will freeze hiring for federal employees, except for the military or those related to immigration enforcement and national security. Trump also ordered all agencies to pause issuing or publishing any new regulations until after they’re reviewed by the incoming administration.These and other actions announced last night, and odds those to come, will face resistance and some will be challenged in court. With the start of the World Economic Forum in Davos today, we are likely to get reactions to President Trump’s first 24-hour blitz from other world and business leaders. As we navigate this evolving landscape, we’ll continue to follow the tailwinds for our thematic and targeted exposure models being mindful that President Trump seems to thrive in ambiguity that keeps his opponents, both political and international, unsure of his next move.As the market drinks all of this in, its attention will turn back to the December quarter earnings season. Today that means hearing from 3M (MMM), DR Horton (DHI), Netflix (NFLX), and United Airlines (UAL). Tomorrow GE Vernova (GEV), Johnson & Johnson (JNJ), Textron (TXT), Alcoa (AA), and Discover (DFS). Among their discussions of quarterly results, business drivers, and guidance, we’ll be listening for initial comments from management teams regarding Trump’s initial actions and the potential tailwinds and headwinds they could bring.More By This Author:More Big Bank Earnings, TSM Reports, December Retail Sales AheadFed Uncertainty, Inflation Back In Focus, Government Shutdown? Multiple Data Points To Go Before A Santa Claus Rally
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