Chapter 1: What are the biggest stock movers today?
Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning. It's good to be with you. Hopefully you enjoyed your weekend. Today is Tuesday, January 20th. I'm Julie Morgan. Stock futures are down early on this Tuesday morning following President Trump's warning of mounting tariffs on key European partners, blocking a U.S. bid for control of Greenland.
We'll get to Dow, S&P, and Nasdaq futures in a few minutes, but first let's take a look at a few of the biggest movers in pre-market action. Logitech, NetApp, and CDW are on our biggest movers list today, down 6%, 4%, and 2% respectively.
Shares declined after Morgan Stanley downgraded all three, warning of a perfect storm for IT hardware as corporate spending slows to its weakest pace in 15 years outside of COVID-19. A fourth-quarter CIO survey pointed to softer demand, while resellers expect 30 to 60 percent of customers to cut PC, server, and storage budgets amid component-driven price increases.
The firm said this marks only the first cut of a hardware down cycle that could last three to five quarters. CDW was cut to equal weight with a price target of $141. Logitech to underweight with a price target of $89. And NetApp also to underweight with a price target of $89 as well.
Chapter 2: How is the NYSE planning to enable 24/7 trading of tokenized securities?
The New York Stock Exchange, which is owned by Intercontinental Exchange, says it's working on a new platform that would let people trade U.S. stocks and ETFs around the clock. These assets would be tokenized, meaning they're represented digitally using blockchain tech.
The exchange still needs regulatory approval, but if it goes through, the platform would allow trades to settle instantly, let investors place orders based on dollar amounts instead of share counts, and use stablecoins to fund trades. NYSE has not said yet when this might actually launch.
The platform's design combines NYSE's existing matching engine, which matches buy and sell orders with blockchain-based post-trade systems, including the capability to support multiple chains for settlement and custody. This project is just one part of ICE's bigger push into digital markets,
The company is also getting its clearing systems ready for 24-7 trading and looking at ways to use tokenized assets as collateral. Tesla could be one of the biggest winners from Canada's decision to sharply cut tariffs on electric vehicles made in China. Canada plans to allow about 49,000 Chinese-made EVs to be imported each year at a much lower tariff of 6.1%.
down from the 100% rate it imposed in 2024. In return, China will ease tariffs on Canadian products like canola. Over time, that EV export limit could rise to 70,000 vehicles a year. Most Chinese EV brands don't really sell in Canada right now, but Tesla already has a solid footprint there with 39 stores across the country.
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Chapter 3: What impact will Canada's new EV tariff deal have on Tesla?
Its largest factory in Shanghai is already set up to build a version, of the Model Y tailored for Canada. Tesla actually started shipping those China-made Model Ys to Canada in 2023, but had to stop when the 100% tariffs kicked in. Since then, it's been sending vehicles from its factory in Berlin instead.
One caveat, half of the EVs allowed under the new quota must be priced under $35,000 Canadian dollars and Tesla's models are priced above that. That lower price could benefit companies like China's BYD, though it barely sells any cars in Canada right now. A look at a few other articles that are trending. The Fed's Jerome Powell will reportedly attend the Supreme Court hearing on Lisa Cook's case.
President Trump floats 200% tariffs on French wines over Macron's refusal to join the Board of Peace. And OpenAI's CFO says ARR hits above $20 billion in 2025.
Chapter 4: How are tariffs affecting international trade relationships?
A couple of items on our Catalyst watch. Walmart will be officially added to the Nasdaq 100 at the beginning of the trading day. And AYTU will hold an Investor Day event in New York City. On Wall Street, Dow, S&P and Nasdaq futures are in the red. Crude oil is up 0.2% at $59 a barrel. Bitcoin is down 1.5% at $91,000. Gold is up 1% at $47.26. The FTSE 100 is down 1.2% and the DAX is down 1.3%.
Another big mover in pre-market action is RAP Therapeutics. RAPT is up 64% after GSK agreed to acquire the biotech in a $2.2 billion deal, paying $58 per share in cash through a tender offer expected to launch within 10 business days.
Chapter 5: What are the latest updates on OpenAI's financial projections?
And it's a quiet day on the economic calendar. That's it for today's Wall Street Breakfast. Thanks for listening. To take full advantage of Seeking Alpha with coverage on significant stocks and ETFs, become a premium subscriber. Check out seekingalpha.com slash subscriptions.
Chapter 6: What economic indicators should investors watch today?
I'm your host, Julie Morgan. Go out and make it a great day.