Wall Street focus shifts to earnings, tariffs and sector rotation

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Wall Street focus: earnings & tariffs

Highlights

Dow Industrials fell over 300 points Monday as traders position for earnings, with key names like 3M up 5% in three months but still 10% off recent highs.
President Trump proposed a 50% tariff on Canadian goods, impacting sectors including cement and wine, as the iShares MSCI Canada ETF (EWC) hit an all-time high, up 26% year-on-year.
iShares MSCI USA Momentum Factor ETF (MTUM) dropped nearly 12% in July and 12.5% since June 22, reflecting sharp reversals in high-beta and technology stock leadership.

Earnings watch and positioning for the next session

As reported by CNBC, traders are monitoring a group of earnings-linked names and broader market positioning after the Dow Industrials slid more than 300 points on Monday.

Among the stocks in focus, 3M is up 5% over three months but remains 10% below its February high. General Motors is down nearly 6% over the same period and sits 13.5% below its Feb. 4 peak. Charles Schwab is up 10% in three months and is 4.6% below its Feb. 10 high, while Northrop Grumman is down 20% in three months and 32% below its early March high.

DR Horton is down 5.6% in three months and 21.5% below its September high. Hasbro is down 14% in three months and remains 24% below its February high. Meta Platforms is up 14.7% so far in July, while Apple is up 12.9% in the month even after a 2% drop on Monday; Meta is still 19% below its August 2025 high, and Apple is 2.5% below the record level it reached on Friday.

Jim Cramer is also arguing for a broader approach to the market rather than relying only on large technology stocks. While he remains positive on companies such as Apple, Nvidia and AMD, he points to other opportunities including Goldman Sachs, Honeywell Aerospace, Boeing, Wells Fargo, FedEx and FedEx Freight.

Goldman Sachs is down 8.6% from last week’s high but is up 4.3% in July. Wells Fargo is up 4.5% in July, though it remains 11.6% below its Jan. 5 high; Boeing is 17% below its January high, Honeywell Aerospace is 32% below its mid-June high, FedEx is down 11.3% from its June 15 high but up 32% in 2026, and FedEx Freight is down 25% from where it began trading on June 1.

Tariff risks and market momentum signals

Trade policy is also back in focus after President Donald Trump said he wants to impose a 50% tariff on many Canadian goods. The proposed list includes products such as cement, hockey sticks and wine, with Trump saying the move is retaliation for what he describes as Canadian discrimination against certain products made in the U.S.

The tariff discussion arrives as the iShares MSCI Canada ETF, trading under ticker EWC, reached an all-time high last week and is up about 26% over a year. That performance suggests investors are balancing political risk against stronger market momentum in Canadian equities.

At the same time, momentum strategies are showing signs of strain. The iShares MSCI USA Momentum Factor ETF, MTUM, is down almost 12% so far in July and has fallen 12.5% since its June 22 high.

Its top holdings include Micron Technology, AMD, Broadcom, Intel and Caterpillar. The recent decline in the fund underscores how quickly leadership trades can reverse as investors reassess exposure to technology and other high-beta names.

DR Horton’s recent slide highlighted how higher mortgage rates are cooling new-home demand and pushing the builder to lean on price cuts and buyer incentives to protect volumes. We previously noted that the stock was trading below key moving averages, with bearish momentum leaving support levels in focus and raising the risk of additional downside.

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