Dow Jones Surges After Trump's Moves; Tesla Named Top Pick, 3 Stocks Clear Entries

The Dow Jones Industrial Average (DJIA) surged on Tuesday, driven by a strong earnings report from UnitedHealth (UNH) and positive market sentiment following President Donald Trump's inauguration and policy announcements. Meanwhile, Tesla (TSLA) was named Morgan Stanley's top pick in the auto sector, and three stocks cleared entries, signaling potential breakouts.

UnitedHealth (UNH) Drives Dow Jones Higher

UnitedHealth, a component of the DJIA, reported earnings of $6.80 per share, topping Wall Street expectations of $6.66. Revenue rose 6% to $98.9 billion, with the company expecting fiscal-year earnings of $15.95 to $16.40 per share. The strong earnings performance drove UNH stock up more than 5%, leading the Dow Jones higher by more than 550 points, or 1.4%.



Tesla (TSLA) Named Top Pick by Morgan Stanley

Morgan Stanley analyst Adam Jonas hiked his price target on Tesla stock from $310 to $400 and called it his "top pick" in the auto sector. Jonas cited Tesla's emphasis on developing autonomous vehicles as a key factor driving the stock's potential. However, he also noted that policy changes, such as the removal of EV tax credits, could pose near-term headwinds for the company.



Three Stocks Clear Entries

Several stocks have cleared entries, signaling potential breakouts:

1. Garmin (GRMN): The GPS device maker reported strong earnings and revenue growth, driving its stock up more than 5% and clearing a buy point.
2. Kirby (KEX): The shipping company reported solid earnings and revenue growth, with its stock clearing a buy point and rallying more than 4%.
3. OneSpaWorld (OSW): The spa and wellness services provider reported strong earnings and revenue growth, with its stock clearing a buy point and surging more than 8%.



Market Reaction to Trump's Policy Announcements

President Trump's inauguration and policy announcements, including tariffs on Mexico and Canada, energy production boosts, and a delay in the TikTok ban, have driven market sentiment. While the market appears to be treating Trump's tariff comments as off the cuff and not yet concrete policy, traders are closely monitoring the situation for any potential impacts on supply and demand.



In conclusion, the Dow Jones surged on Tuesday, driven by UnitedHealth's strong earnings report and positive market sentiment following President Trump's inauguration and policy announcements. Tesla was named Morgan Stanley's top pick in the auto sector, while three stocks cleared entries, signaling potential breakouts. Investors should closely monitor the situation for any potential impacts on the market from Trump's policy changes.