The stock market faced a challenging trading session as investors grappled with concerns over the economic impact of tariffs while analyzing a fresh round of corporate earnings. The dollar weakened, and bond yields rose, adding further uncertainty to the market.

Winners and Losers in the Latest Earnings Reports

Several major companies reported earnings that sparked significant stock movements. Here’s a breakdown of some of the biggest movers:

Winners

Pfizer (+1.8%)

The pharmaceutical giant posted stronger-than-expected fourth-quarter results, reporting adjusted earnings of 63 cents per share on $17.76 billion in revenue. Analysts had expected earnings of 47 cents per share on revenue of $17.36 billion, making Pfizer one of the bright spots in an otherwise volatile market.

Ferrari (+4%)

Luxury automaker Ferrari saw a 4% jump in its U.S.-listed shares after reporting impressive earnings growth. The company’s full-year earnings reached 1.53 billion euros, a 21% increase from the previous year. Shipments also rose, reinforcing investor confidence in the brand’s continued success.

Palantir Technologies (+23%)

Palantir was the biggest gainer of the day, surging 23% after delivering better-than-expected fourth-quarter results. The company reported adjusted earnings of 14 cents per share, exceeding analysts’ estimates of 11 cents. Revenue also came in at $828 million, significantly higher than the $776 million forecast. Additionally, strong full-year guidance further fueled investor enthusiasm.

Losers

PepsiCo (-2%)

Despite being a consumer staple, PepsiCo’s stock slipped 2% after missing fourth-quarter revenue expectations. The company reported $27.78 billion in revenue, slightly below the $27.89 billion forecast. This marked the fifth consecutive quarter of declining demand for its snacks and beverages in North America.

Merck (-8%)

Pharmaceutical giant Merck took a hit, dropping 8% in premarket trading after issuing disappointing full-year guidance. The company expects 2025 earnings per share to range between $8.88 and $9.03, lower than the $9.13 per share analysts had anticipated. Revenue projections of $64.1 billion to $65.6 billion also fell short of estimates.

PayPal (-7.3%)

Even after reporting better-than-expected earnings and revenue, PayPal’s stock slid 7.3%. Despite strong fourth-quarter performance and an optimistic forward outlook, investor concerns weighed on the stock. However, the company announced a $15 billion share buyback program, which could help stabilize its share price in the long run.

Estee Lauder (-7%)

The beauty products giant saw its stock tumble 7% after issuing a weaker-than-expected fiscal third-quarter outlook. The company projected a 10% to 12% revenue decline, significantly worse than analysts’ expectations of a 6.9% decline. However, Estee Lauder did beat expectations in its fiscal second-quarter earnings.

Mixed Performances

General Motors & Ford (+1% each)

Both automakers saw modest gains of 1% after President Trump temporarily paused tariffs on Canadian imports for 30 days. This move followed a similar pause on tariffs for Mexico, bringing relief to companies with significant North American manufacturing operations.

Diageo (-slightly down)

The spirits giant struggled after posting weaker-than-expected first-half earnings and withdrawing its medium-term guidance due to macroeconomic and geopolitical uncertainty. The company’s adjusted earnings per share came in at $c97.7, missing estimates of $c99.1. However, net sales of $10.9 billion slightly exceeded forecasts of $10.72 billion.

Apollo Global Management (-1.6%)

Apollo’s fourth-quarter earnings of $2.22 per share beat the $1.89 per share consensus estimate. However, the stock dropped 1.6% due to a decline in investment inflows, which fell from $42 billion to $33 billion compared to the previous quarter.

Market Outlook

With ongoing tariff concerns and mixed earnings results, the stock market remains volatile. Investors are closely watching economic indicators and corporate guidance to navigate the uncertain landscape. As earnings season continues, market sentiment may shift depending on further data and policy decisions.