Jamie Spencer
Market Update and Tariff Pause Impact
Major averages were sharply lower near midday, pulling back from yesterday’s sharp gains following President Donald Trump’s announcement of a 90-day pause on some of his “reciprocal” tariffs. However, this temporary relief has not been enough to fully restore market confidence, with the tariff rate on Chinese imports still set to increase. Despite this, market sentiment remains cautious.
Commodity Prices and Trade Tensions
Turning to commodities, gold prices have surged significantly, approaching the $3,200 threshold. On the other hand, oil prices have sharply dropped after serious gains yesterday. This decline in oil prices has been influenced by a combination of ongoing trade tensions and fluctuations in global supply and demand.
Stock News: Top Moves of the Day
1. Prada (PRDSY) agreed to acquire Versace from Capri Holdings (CPRI) for $1.38B in cash.
2. Constellation Brands (STZ) reported upbeat Q4 results and announced it will divest certain wine brands, vineyards, and facilities.
3. CarMax (KMX) reported mixed Q4 results and updated its long-term growth model.
4. U.S. Steel (X) shares are falling after President Trump said he doesn’t want to see the company be sold to Nippon Steel (NPSCY).
5. Aether (ATHR) opened at $5.25 after its IPO was priced at $4.30 per share.
Wall Street Calls
1. General Motors (GM) downgraded to Neutral from Buy at UBS.
2. Ford (F) downgraded to Neutral from Buy at Goldman Sachs.
3. Oppenheimer upgraded Roblox (RBLX) to Outperform, citing an excellent entry point.
4. AppLovin (APP) upgraded at Morgan Stanley, seeing opportunity to buy ad tech’s “best executor ‘on sale’.”
5. QuantumScape (QS) downgraded to Sell from Neutral at UBS.
News Around the Web
1. Nio (NIO) has implemented a new series of executive changes affecting its Onvo brand and marketing departments.
2. OpenAI filed a countersuit against Tesla CEO Elon Musk, claiming harassment over the future structure of the company.
3. Amazon (AMZN) is considering a $15B warehouse expansion for 80 new U.S. logistics facilities.
4. Apple (AAPL) is chartering cargo flights to ferry up to 1.5M iPhones from India to the U.S. to avoid tariffs.
5. Newsmax Media (NMAX) was found to have defamed Dominion Voting Systems, a Delaware court ruling confirms.
Stock Movers
1. Keros (KROS) increases after its board initiated a formal review process to evaluate strategic alternatives.
2. Fortuna Mining (FSM) gains after reporting Q1 gold production results.
3. DexCom (DXCM) higher after receiving FDA clearance for the Dexcom G7 CGM system.
4. Red Cat (RCAT) falls after announcing a $30M stock offering.
5. Easterly Government Properties (DEA) lower after a downgrade to Neutral by Compass Point.
Earnings and Guidance
1. Lovesac (LOVE) reported Q4 results and provided guidance for FY26 and Q1.
2. CureVac (CVAC) reported Q4 results, with revenue lower year-over-year.
3. Bank7 (BSVN) reported Q1 results, with CEO Thomas Travis commenting that 2025 is off to a strong start.
4. NextNRG (NXXT) reported preliminary Q1 results.
5. Dixie Group (DXYN) announced Q4 results, with EPS and revenue lower year-over-year.
Market Indexes
Near midday, the Dow was down 3.81%, or 1,548.15, to 39,060.30, the Nasdaq was down 5.36%, or 918.33, to 16,206.64, and the S&P 500 was down 4.60%, or 251.07, to 5,205.83.
