Breakfast News: More Tariffs Take Effect
April 9, 2025
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Tuesday's Markets |
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| S&P 500 4,983 (-1.57%) |
| Nasdaq 15,268 (-2.15%) |
| Dow 37,646 (-0.84%) |
| Bitcoin $76,688 (-2.46%) |
1. Markets' Roller-Coaster Ride Continues
The S&P 500 continues to flirt with bear market territory as President Trump's huge tariffs on 185 trading partners kicked in at midnight, including pushing total levies on Chinese imports to 104%. While light on details so far, the president has threatened major import tariffs on pharmaceuticals next, which he says will encourage production to move to the U.S.
- South Korea in bear territory: Japan's Nikkei 225 fell 3.9% today, while South Korea's Kospi index dipped 1.7%, as the country announced financial help for its motor manufacturers to help ease the new 25% U.S. tariff on auto imports.
- "I believe we'll be hearing about new deals that are being struck, perhaps by the end of the week": Agriculture Secretary Brooke Rollins says talks about trade deals are already lined up. Discussions with Japan and South Korea will lead, with Italian Prime Minister Giorgia Meloni visiting next week.
2. iPhones Made in America?
President Trump believes Apple (AAPL +2.65%) could switch production to the U.S., though Dan Ives at Wedbush suggests an all-American iPhone could cost $3,500.
- "He believes we have the labor, we have the workforce, we have the resources to do it": White House Press Secretary Karoline Leavitt pointed to Apple's new $500 billion U.S. investment plans as support, though UBS (UBS +2.39%) says it's "is in line with what one might expect the company to be spending anyway."
- "In the U.S., you could have a meeting of tooling engineers, and I'm not sure we could fill the room.": In 2017, Tim Cook explained the U.S. doesn't have sufficient high-tech manufacturing expertise.
3. Semiconductor Fallout Continues
Intel (INTC +0.00%) fell 7.4% yesterday to a new 16-year low as tariff concerns continue to shake up chip makers. Intel's big hope, its new 18A semiconductor manufacturing process, is expected to show its first products in the second half of the year.
- "I simply told them that if they didn't build their plant here, they would pay a huge tax": The president said he's threatened Taiwan Semiconductor (TSM +1.97%) with 100% taxes if the company doesn't make its chips in America.
- Falls help make Microsoft (MSFT +0.60%) the world's most valuable public company again: On Tuesday, Advanced Micro Devices (AMD 0.03%) lost 6.5%, as Micron Technology (MU 0.61%) fell 4.1% to its lowest since 2023, with Qualcomm (QCOM +1.29%) down 3.9%.
4. What You Might've Missed on Tuesday
Rule Breakers recommendation Impinj (PI +1.67%) fell 10% yesterday, hit by the wider tech stock sell-off. The wireless RFID developer will post first-quarter results on April 23, following four quarters of double-digit revenue growth, when a loss per share of 38 cents is expected. The stock is up 279% since IPO in 2016.
- "Absolute company records" in 2024: Dividend Investor rec Dream Finders Homes (DFH +9.35%) fell 8.5% on the day. CEO Patrick Zalupski spoke of "excellent shareholder returns" last year, and the company had forecast 9,250 new builds for 2025.
- 4.1% year-over-year sales rise: Walgreens (WBA +0.00%) posted a second-quarter earnings beat, with adjusted EPS of 63 cents beating expectations for 53 cents. With the planned takeover by Sycamore Partners on the cards, the company withdrew its full-year guidance.
5. What to Watch on Wednesday
Delta Airlines (DAL +2.62%) reported before today's opening bell. Earnings slightly beat expectations at 46 cents per share. CEO Ed Bastian said bookings are good, but beyond 60-90 days "it's a bit murky" as the company axed its 2025 flight growth plans.
- High-end beer markets key: Constellation Brands (STZ 1.30%) will report Q4 after market close. The drinks maker fell short on Q3 earnings but beat revenue predictions. For the fiscal 2025 year, the EPS outlook was lowered to between $3.90 and $4.30, from $4.05 to $4.25.
- Live from Las Vegas: Alphabet (GOOG +1.99%) kicks off its Cloud Next 2025 event, with Google Cloud CEO Thomas Kurian hosting a keynote scheduled for 9am PT (midday ET).
6. Foolish Fun
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