Breakfast News: Foot on the Brake
April 29, 2025
| Monday's Markets |
|---|
| S&P 500 5,529 (+0.06%) |
| Nasdaq 17,366 (-0.1%) |
| Dow 40,228 (+0.28%) |
| Bitcoin $94,680 (+0.37%) |
Source: Image Created by Jester AI.
1. Auto Parts Levy Likely Reduced
In a bid to provide relief to the sector, President Donald Trump is reportedly set to reduce the impact of auto tariffs by easing levies on foreign-made parts used in domestically manufactured vehicles.
- 25% tariff on imported vehicles already in place: The executive order implementing auto tariffs on April 2 included a section for a tariff on auto parts, set to take effect on May 3. The move has seen industry groups push back, citing the potential for reduced car sales and higher prices.
- "Building an important partnership with both the domestic automakers and our great American workers": Commerce Secretary Howard Lutnick stated that the president is looking to reward companies that manufacture domestically, with the shift in tone for the sector coming as Trump prepares to visit Michigan, the heart of U.S. auto production.
2. Alibaba Releases New AI Model
Alibaba (BABA 0.67%) unveiled its Qwen 3 artificial intelligence (AI) model, claiming to match -- and in some cases beat -- the performance of alternatives from Alphabet (GOOG +0.41%) and OpenAI. The move highlights the continued breakneck pace of development in the Chinese AI industry.
- "We have seamlessly integrated thinking and non-thinking modes": The hybrid models have the ability to take time and reason through complex problems, in addition to just answering simple user questions.
- Trained on a data set of almost 36 trillion tokens: With a million tokens being equivalent to 750,000 words, the boost in performance over Qwen's predecessor is notable. It comes at a time when CEO Eddie Wu has stated that the company's primary objective is artificial general intelligence.
3. What You Might've Missed on Monday
NXP Semiconductors (NXPI +1.46%) fell over 7% after the closing bell, following a warning that revenue could fall by $3 billion in Q2 as a result of the uncertain environment created by tariffs. CEO Kurt Sievers also announced his retirement.
- Beating targets but muted outlook: Cadence Design Systems (CDNS +1.63%) posted a 23% year-over-year jump in revenue and a 34% increase in earnings per share, but the stock fell after the market closed, partly due to the company's soft forecast provided for 2025.
- "We are on pace to achieve our 2025 outlook": Waste Management (WM 2.75%) is down ahead of the market open after quarterly results missed expectations. CEO Jim Fish talked up the resilience of the business in navigating the rest of the year.
4. Next Up: Earnings Eyed Today
PayPal (PYPL 1.82%) is set to report ahead of the opening bell. Investors will want to see whether the higher marketing spend is translating into new clients, as well as whether the strategy to focus on core products is still paying off.
- Outperforming the S&P 500 by 100.7% over the past year: Spotify (SPOT 2.17%) will release earnings before the market opens and is expected to build on the strong Q4 that saw it post its first full year of profitability.
- Watching Warren Buffett's favorite: Coca-Cola (KO 0.01%) reports pre-market, with earnings per share forecast to be the same as Q1 last year. Updated guidance on the impact of global tariffs will be closely scrutinized.
5. Foolish Fun
Which brand offers the greater long-term opportunity for PayPal Holdings: PayPal or Venmo? Which one do you use most? Discuss with friends and family, or become a member to hear what your fellow Fools are saying!
