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CNBC Daily Open: Markets rise on tariff pause, but earnings disappoint

1. Trump paused tariffs on Mexico and Canada, boosting U.S. stocks. 2. Alphabet's revenue missed expectations, leading to a 7% drop in share price. 3. AMD's fourth-quarter data center sales also fell short, resulting in a 9% decline. 4. Toyota's profits dropped 28%, marking a second consecutive quarterly profit fall. 5. Market optimism remains due to tariff reprieve but corporate fundamentals are shaky.

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FAQ

Why Neutral?

Tariff pause offers short-term relief, but tech misses weigh on market. Corporate fundamentals influence long-term performance, akin to past earnings disappointments.

How important is it?

The pause in tariffs is significant for investor sentiment, but tech earnings disappointments present risks. Such dual impacts reflect broader market dynamics.

Why Short Term?

Immediate market reaction to tariff news, but ongoing earnings reports could sway investors. Historical volatility around earnings announcements suggests a short-lived effect.

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