<a href="https://www.benzinga.com/topic/tariffs">Fears of looming tariffs</a> are driving iPhone buyers to act early, likely fueling near-term sales for Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>).



Yet, behind the revenue bump, rising supply chain costs threaten to trim the Cupertino, California-based tech giant&#8217;s <a href="https://www.benzinga.com/tech">margins.</a>



In a note released Thursday, Bank of America analyst Wamsi Mohan trimmed the company's 12-month price target from $250 to $240, while keeping a Buy rating, citing tariff-driven cost pressures and delays in launching key artificial intelligence features.



See Also: <a href="https://www.benzinga.com/markets/25/04/44979972/us-treasury-hits-record-15-billion-in-customs-and-excise-tax-haul-amid-trumps-trade-policies">US Treasury Hits Record $15 Billion In Customs And Excise Tax Haul Amid Trump&#8217;s Trade Policies</a>



<h3 class="wp-block-heading">Tariffs Pull Demand Forward But Add Long-Term Strain</h3>



According to Mohan, fears of import tariffs may have triggered a pull-forward in iPhone demand, giving Apple's upcoming March and June quarters a short-term revenue tailwind. 



The firm slightly raised its 2025 revenue estimate to $412 billion, up from $411 billion.



However, the boost comes at a cost. Mohan lowered his 2026 revenue forecast to $440 billion, down from $450 billion, citing higher logistics and supply chain costs that could crimp margins later in the year.



"We only include higher supply chain costs and not the impact of reciprocal tariffs," Mohan said, implying more downsides could arise if geopolitical conditions deteriorate.



<h3 class="wp-block-heading">Delays In AI Rollout Weigh On iPhone Upgrade Cycle</h3>



The firm also cut Apple's earnings per share (EPS) projections, with 2025 EPS now expected at $7.25, down from $7.30, and 2026 EPS trimmed to $7.82 from $8.20.



Much of this adjustment stems from delays in launching AI-enabled Siri, a flagship feature that was expected to drive new iPhone upgrades. 



The lag has prompted Bank of America to lower unit estimates for future iPhone cycles, as consumers potentially wait for more advanced features before upgrading.



Mohan noted that China may see AI iPhones earlier through local partnerships, and two major hardware updates—a slimmer "iPhone Air" in September 2025 and a foldable iPhone in 2026—could support form factor-driven replacement demand.



<h3 class="wp-block-heading">FX And Services Offer Cushion Amid Uncertainty</h3>



Bank of America sees upside from foreign exchange tailwinds, with a weaker U.S. dollar expected to boost both revenue and margins starting in the June quarter, though near-term hedging may dampen the full effect.



The report also cited Apple's Services business as a reliable growth engine. With strong demand in subscription-based offerings like iCloud, Apple Music and the App Store, the segment continues to deliver high-margin recurring revenue that helps insulate overall earnings.



On the hardware side, while wearables may face softer demand due to economic sensitivity, Mohan expects iPhone and Mac sales to remain resilient, calling these segments more "inelastic" amid broader macro headwinds.



<h3 class="wp-block-heading">Market Reaction</h3>



Shares of Apple traded 0.6% higher to $206 on Thursday, though the stock remains nearly 8% below its pre-tariff announcement level on April 2. Since hitting record highs in late December 2024, shares have fallen 22%.



Now Read: 



<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/25/04/44962716/americans-rush-to-buy-cars-ahead-of-tariff-price-hikes-fed-beige-book-shows">Americans Rush To Buy Cars Ahead Of Tariff Price Hikes, Fed Beige Book Shows</a></li>
</ul>



Image: Shutterstock

Analyst Color

Equities

Large Cap

Analyst Ratings

Tech

AAPL

Apple AI Delays, Rising Cost Pressures Trigger Price Target Cut From Bank Of America

U.S. durable goods orders jumped sharply in March, marking the biggest gain since July 2024, but the high single-digit headline spike hides a mixed picture that casts doubt on whether factory momentum was firing on all cylinders ahead of <a href="https://www.benzinga.com/topic/donald-trump">Trump's April 2 tariff move.</a>



New orders for manufactured durable goods climbed by 9.2% to $315.7 billion in March, rising for a third consecutive month and far surpassing expectations for a modest 2% gain, according to data released Thursday by the U.S. Census Bureau. 



The outcome marked the strongest increase in over eight months and the second-largest monthly gain over the past five years.



<h2 class="wp-block-heading">Transportation Orders Takes Off, But With A Caveat</h2>



Transportation equipment orders soared 27%, or $26.5 billion, to $124.6 billion, making it the single largest driver of the total gain. 



Most of that, however, came from one specific category: nondefense aircraft and parts, which skyrocketed by a staggering 139% to $44.6 billion.



Stripping out the volatile transportation category, new durable goods orders were unchanged at $191.1 billion, a clear sign that underlying demand remains tepid.



Outside the transportation sector, capital goods orders stood out with a notable 24.3% increase to $127.2 billion, driven by a 29.4% surge in non-defense capital goods.



<h2 class="wp-block-heading">Where Is The Weakness?</h2>



Several other core manufacturing categories showed either minimal growth or outright contraction.



Computers and electronic products saw new orders slip 1.2% to $25.4 billion. Within that, computers and related products declined 2.9%, the steepest drop among all sub-categories.



Electrical equipment, appliances and components orders dipped 0.5%, while fabricated metal products barely moved, gaining just 0.2%.



Defense aircraft orders fell 9.4% to $5.6 billion, suggesting that recent DOGE-related spending cuts could be weighing on the Defense Department's procurement activity.



<h2 class="wp-block-heading">Market Reactions</h2>



The Dow Jones Industrial Average slipped 0.2% in premarket trading Thursday, following a 1% gain the previous day.



Boeing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>), the biggest beneficiary of the aircraft orders jump, gave up 0.5% in early trading after climbing as much as 6% Wednesday. 



Within blue-chip stocks, Salesforce Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NASDAQ">CRM</a>) rose 3.7% while Merck &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MRK#NYSE">MRK</a>) added 1.9%. 



International Business Machines Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBM#NYSE">IBM</a>) dropped 6% after weaker-than-expected guidance.



Read now: 



<ul>
<li><a href="https://www.benzinga.com/markets/equities/25/04/44970516/boeing-adjusts-strategy-amid-trump-tariff-fallout-ceo-kelly-ortberg-says-wont-build-aircraft-for-customers-who-will-not-take-them-as-china-halts-deliveries">Boeing Adjusts Strategy Amid Trump Tariff Fallout, CEO Kelly Ortberg Says Won&#8217;t &#8216;Build Aircraft For Customers Who Will Not Take Them&#8217; As China Halts Deliveries</a></li>
</ul>



Photo: Shutterstock

Macro Economic Events

Econ #s

Economics

Durable Goods Orders Jump 9.2% In March, But One Category Tells The Real Story

The average tariff rate on Chinese goods entering the United States is currently over 145%, far higher than anything President <a href="https://www.benzinga.com/topic/donald-trump">Donald Trump</a> introduced during his first term and a rate that already has severe economic effects.



While many companies opened their pocketbooks to stock up on extra merchandise to avoid tariffs, those stockpiles will dwindle in a few months, and consumers will feel the brunt of the added costs. Apparel manufacturers and retailers that source large portions of their products from China or other Asian countries will be most affected.



With tight margins, passing on costs to consumers or moving production back to the U.S. is not an option for most of them. 



Here are the four big-brand apparel companies that will be worst hit &#8211; investors beware.



<h2 class="wp-block-heading">V.F. Corp.&nbsp;</h2>



VF Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VFC#NYSE">VFC</a>) cut its dividend by 71% during an October 2023 earnings release, but that was just the tip of the iceberg for the apparel manufacturer that claims popular brands like Timberland, Vans, North Face, JanSport, and Dickie's. The stock was trading near $90 per share in the spring of 2021 and suffered a stunning decline over the next three years, bottoming out under $13 per share amid sales slumps and competition from cheaper online competitors. The stock was beginning to rebound from its May 2024 lows, but then the trade war hit, and shares slumped from $26 back down to under $11.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcBjBKW00Cvzi7K_zvvxJcFOIuERkwISPI7_MsmpYhtc-h_-rE-5QiNcM3xtnE5xRtDDObwpehiC9iFIBsvboyjTdObyILg5QrgD8Aq101I_7ylRmmZl9XERRja_Pr9YwI0qF1xqA?key=sXJ17IrwuKIuXW9LDYR8oIXq" alt=""/></figure>



VFC is not well-equipped to handle an extensive trade war, considering the bulk of its production comes from Asia. The company has over 400 factories in China and another 200 in Vietnam but fewer than 50 locations in the United States. Moving production back to the U.S. is untenable, so the VFC will need to seek out sites in nations with lower tariff rates, like India. VFC trades at 11 times forward earnings, which is on the high side for apparel manufacturers, especially considering its close competitor, PVH Corp, trades at just 5 times forward earnings. The company also has a high debt-to-equity ratio (3.42), declining revenue, and poor Benzinga Edge ratings, including a paltry 16.94 in Value. VFC may have brand value, but this is one falling knife not worth catching right now.



<h2 class="wp-block-heading">Columbia Sportswear Co.&nbsp;</h2>



Columbia (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COLM#NYSE">COLM</a>) is another apparel company specializing in footwear and outerwear with a heavy manufacturing presence in Asia. Marketing mostly under its namesake flagship brand, Columbia was already losing market share as its sales primarily come through wholesale distribution to department and sporting goods stores. And while its products are sold worldwide, the primary manufacturing hubs are in China, Vietnam, Cambodia, and Taiwan. Although the company has significant operations in Japan, India, and Bangladesh, surviving a tariff war without further damage will be difficult due to declining margins and a valuation that doesn't match the fundamentals.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdzrGNLXgnGi5ddNDNYN55jQZFTbUpBm8E8yYxNPgrpngIuvH1JN53EyCYMs0iENlbwwKfilSLQA7X_nQIc_AL9f2XdnNCK6fDyfo6zKCFmlmgg2rUAN7bHF0NnGWfXW-FQjxFh5Q?key=sXJ17IrwuKIuXW9LDYR8oIXq" alt=""/></figure>



COLM trades at 16.5 times forward earnings, far higher than most apparel manufacturers, and a figure not supported by profit margins that have now dropped under 7%. Revenue has declined in four of the last five quarters, and the dividend yields just 1.87%. COLM also rates poorly on Benzinga Edge, including a 29.11 Momentum score and 39.30 Quality score. The stock chart matches these scores as a Death Cross (where the 50-day moving average drops below the 200-day moving average) formed earlier this month. The Relative Strength Index (RSI) is still above the oversold threshold at 37, indicating that the stock may still have room to drop.



<h2 class="wp-block-heading">American Eagle Outfitters Inc.&nbsp;</h2>



American Eagle (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AEO#NYSE">AEO</a>) used to be a staple in every suburban mall, but now the brand has fallen in both stature and profitability. American Eagle owns both its namesake brand and the more affordable Aerie brand, although it doesn't own any of the factories around the world where its clothes are produced. The company sources its goods from a global array of facilities, including 101 factories in China, 67 in Vietnam, 39 in India, 27 in Cambodia, and 24 in Bangladesh. Although the company has other sources in Central America and Europe, most of its suppliers reside in Asia, which presents a problem in the current tariff environment.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXd0BbOecuJufdVxg0kMALPLLqJ9cl3fbjn3XW5xGNZkdzRZaNB48nKT45HsTfmRFHANAFjW8f3PFZtxnRm6DMakRWs-Qj6oaW_oi9p5xA_mnT2nfhCpg24IfxflKoJJoJ1IpEvAuw?key=sXJ17IrwuKIuXW9LDYR8oIXq" alt=""/></figure>



AEO's valuation makes it look tempting to buy, but investors should be cautious due to the company&#8217;s heavy reliance on Asian facilities it does not own. AEO shares trade at just 7.4 times forward earnings with a 0.36 Price-to-Sales (P/S) ratio, but its profit margins are lower than those of competitors like Abercrombie and Fitch and Urban Outfitters. The stock hasn't traded above its 200-day moving average since last October, and it is one of the most heavily shorted apparel retailers, with nearly 19% of its float sold short.



<h2 class="wp-block-heading">Levi Strauss and Co.&nbsp;</h2>



Levi Strauss (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LEVI#NYSE">LEVI</a>) makes arguably the world's most famous pair of jeans, but unfortunately, those jeans are manufactured in areas facing heavy tariffs. The company's factory list spans a wider geographic range than Columbia or VF Corp, but the Asian presence is heavy, especially in China, Cambodia, and Vietnam. Its only locations in the United States are in Los Angeles. 



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXenfA3PMf7c4DJtQFcipbzAYAsKz9Uwm4mG1eIQ8W_1zjRDDzPitwbDGLgWXzQfeJFRKnLm1mWWzHeNcl2t2tq8ICN5wcSukMmHPvIEyiiyVvBQsD9GMQTtpcaV2cRpetdE27Jcrg?key=sXJ17IrwuKIuXW9LDYR8oIXq" alt=""/></figure>



Unlike Columbia or VF Corp, Levi's saw its revenue and margins rebound from the lows of 2024. In February, it posted its first profit margin of over 5% since May 2023, and revenue grew for the third consecutive quarter. However, the company still faces headwinds beyond tariffs, as LEVI shares trade at 11.6 times forward earnings with a high Price-to-Book (P/B) ratio of 3.01. Its dividend payout ratio (DPR) is also over 58%, an elevated figure for an apparel manufacturer. Benzinga Edge is not fond of the stock either, ranking it 25.66 in Momentum and 60.95 in Growth. And finally, the stock is trading firmly below its 50-day and 200-day moving averages, a technical signal pointing to more downside momentum.



<h2 class="wp-block-heading">Matt Maley Alerts Inner Circle Before TV Appearances</h2>



While millions watch Matt discuss tariffs on Bloomberg, CNBC, and more — only his Inner Circle members received his specific trade recommendations. Get Behind the Scenes Access <a href="https://www.benzinga.com/premium/ideas/7-day-free-trial-matt-maley-inner-circle/?el=ResearchDaily&amp;he={{email}}&amp;adt_ei={{email}}&amp;utm_adType=SponsorAd&amp;utm_ad=RD0425&amp;utm_campaign=7daytrial">HERE</a>



Editorial content from our Expert contributors is intended to be information for the general public and not individualized investment advice. Editors/contributors are presenting their individual opinions and strategies, which are neither expressly nor impliedly approved or endorsed by Benzinga.



Photo: Shutterstock

Opinion

Trading Ideas

COLM

LEVI

China Trade War: 4 Big-Brand Stocks That Will Suffer Most

By now, anyone watching markets for more than a few months knows the truth: short-term market moves are anyone&#8217;s guess, but over the long haul, valuation is destiny.



When it comes to long-term opportunities in the market indexes, you&#8217;ve got to get under the hood of sentiment, valuation, and allocation. That&#8217;s where three time-tested signals come in: the market cap-to-GDP ratio (Buffett&#8217;s favorite valuation compass), aggregate investor allocation to equities (an under-the-radar sentiment gauge), and the excess CAPE yield (a rare bright light in the world of macro).



Together, they don&#8217;t just whisper. They shout.



Specifically, they shout that stocks are a loser's game, and that you need to invest in a very specific asset class. 



Don't worry – doing so is easy, profitable, and pays an 8.5% yield, too.



Let&#8217;s start with the most poetic signal of them all, Warren Buffett&#8217;s beloved Market Cap to GDP.



At present, the total U.S. market cap (Wilshire 5000) sits well over 170% of U.S. GDP. Historically, a ratio over 120% indicated future annual returns well below the long-term average of ~9–10%. 



At today&#8217;s stretched levels, we&#8217;re firmly in the danger zone. Past instances (think 1999) saw returns that struggled to break the mid-single digits, even before accounting for inflation.



If mean reversion is the rule (and it always eventually is), then we are looking at forward nominal returns in the neighborhood of 3–5%, possibly lower if we go full cycle and dip below the mean.



Next up, Investor Allocation to Equities, which might be the most predictive (and most ignored) signal of the three. The Federal Reserve&#8217;s Financial Accounts data tells us what share of household financial assets is in equities. Right now, that&#8217;s hovering near all-time highs at roughly 45% of assets. And here&#8217;s the rub: historically, when equity allocations are this high, future ten-year returns tend to come in very low.



A 2012 study by J.P. Morgan&#8217;s Michael Cembalest showed that the equity allocation metric was incredibly accurate when predicting subsequent ten-year returns.



At today&#8217;s levels, that model implies sub-3% real returns on the S&amp;P 500. If you&#8217;re counting on 7–8% a year to fund your retirement, you&#8217;d better hope for a miracle, or a crash that resets the starting line.



Finally, the Excess CAPE Yield, which compares the inverse of the Shiller CAPE ratio (that is, earnings yield) to the ten-year Treasury yield. It&#8217;s one of the few signals that adjusts for the low-rate environment. Currently, with a CAPE of ~33 and ten-year yields above 4.5%, the excess yield is approaching negative territory.



That&#8217;s a historically awful setup.



Whenever excess CAPE yield has turned negative, future returns tend to hover at or below the rate of inflation.



The basic logic? If you can get 4.5% with no risk and stocks are offering a real yield of less than 3%, the equity risk premium is functionally zero.



There&#8217;s simply no reason to stretch for stocks, unless you&#8217;re betting on multiple expansion from already excessive levels. Good luck with that.



Put it all together and here&#8217;s the story: the S&amp;P 500 is priced to deliver at best 3–4% nominal returns annually over the next decade, with a decent shot of dipping closer to 1–2% if we get a proper valuation washout. And that&#8217;s before factoring in inflation. On a real return basis, you could be looking at flat or even negative returns over the next ten years. That&#8217;s not a doomsday forecast.



It&#8217;s the historical norm when starting valuations and sentiment are this euphoric.



Could we do better? Sure.



Markets are not math equations, and momentum can keep valuations lofty longer than any sane person would expect.



But betting your money on that outcome is playing chicken with history.



There is an asset class and strategy that can put us on the right side of history and deliver solid returns even if stocks do better than expected: the forgotten workhorses of the capital markets.



I&#8217;m talking about the upper tier of the high-yield market, otherwise known as &#8220;fallen angels&#8221; or &#8220;almost junk.&#8221; These bonds have a fascinating habit of quietly winning when nobody&#8217;s looking.



This has been especially true during equity market &#8220;lost decades,&#8221; when the S&amp;P 500 spins its wheels and delivers little to no return for years on end. These bonds have consistently proven themselves to be a reliable, even remarkable, source of income and capital appreciation.



Let&#8217;s set the historical table. The 1970s and the 2000 to 2010 periods are the two big &#8220;lost decades&#8221; most investors remember.



During the inflation-ravaged 1970s, high-quality high-yield bonds quietly outperformed both stocks and government bonds, delivering nominal returns in the 8–10% range while equities barely kept pace with inflation.



The S&amp;P 500 returned just under 6% annually in nominal terms, but with inflation averaging over 7%, real returns were negative.



There were also massive drawdowns of 50% of so in the indexes.



By contrast, bonds offering high yields and moderate credit risk provided a steady stream of income that not only kept up with inflation but also offered positive absolute returns.



Unlike lower-rated junk bonds, these bonds avoided the worst default risk while still capturing a significant portion of the excess yield available during a decade marked by rising rates and economic instability.



From 2000 through 2009, the S&amp;P 500 had a total return of -0.9%, a negative return over ten full years, including dividends. The market had to digest the dot-com collapse, the accounting scandals, 9/11, and finally the global financial crisis. It was a brutal stretch for equity investors.



Meanwhile, high-quality high-yield bonds delivered positive annualized returns north of 7%. That&#8217;s not just a win. It&#8217;s a rout.



These bonds effectively live in the &#8220;sweet spot&#8221; of the credit spectrum: high enough yield to matter, low enough risk to survive.



Institutional investors who bought high-quality, high-yield bonds and held them to maturity were clipping generous coupons, while stock investors endured a rollercoaster that ultimately went nowhere in real terms.



While long-duration Treasuries got crushed and equities faced P/E compression, high-quality high-yield bonds quietly delivered. If we&#8217;re heading into another period of stagflation or a lost decade in stocks, history suggests these bonds could once again be the unsung heroes of portfolio construction.



My favorite way to invest in high-quality high-yield bonds is through individual bonds.



I cut my teeth on credit back in the late 1980s and early 1990s during the wreckage of the Michael Milken and corporate raider era.



Digging through financial statements to find bargains is, as Austin Powers might opine, &#8220;My bag, baby.&#8221;



However, it is a very hands-on strategy and is not always an easy market for individuals to trade.



My favorite way for most investors to play this lucrative market right now is ETF from Infrastructure Capital Advisors. The firm&#8217;s new Capital Bond Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BNDS#NYSE">BNDS</a>) is high-quality high-yield done right.



Fund manager Jay Hatfield&#8216;s approach to markets and credit is similar to mine.



The portfolio is comprised of bonds that I would cheerfully add to my own.



Hatfield also opportunistically uses an option-writing strategy to enhance income while maintaining upside market exposure by using high-yield ETFs.



The current distribution yield is 8.5%, and many of the issues trade at a significant discount to par value.



If valuation and economic measures prove to be right again, the yield alone will deliver a significant premium to the return of the S&amp;P 500.



The narrowing of the discount as bonds move closer to maturity or prices move higher in response to credit upgrades or fed actions will be a bonus.



<h2 class="wp-block-heading">Gold Pullback Alert: Matt Maley's Next Trade</h2>



The same strategy that delivered a verified 2,400% gain on SQQQ for Matt's Inner Circle members is now signaling a gold trade. Get The Newest Trade Alert For Free Right <a href="https://www.benzinga.com/premium/ideas/7-day-free-trial-matt-maley-inner-circle/?el=R[…]}}&amp;utm_adType=SponsorAd&amp;utm_ad=RD0424&amp;utm_campaign=7daytrial">HERE</a>.



Editorial content from our Expert contributors is intended to be information for the general public and not individualized investment advice. Editors/contributors are presenting their individual opinions and strategies which are neither expressly or impliedly approved or endorsed by Benzinga.



Photo: Shutterstock

BNDS

3 Key Signals Say It's Time To Invest In This 'Forgotten' Market, Here's How

Procter &amp; Gamble Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>), maker of popular brands such as Gillette, Tide, Pampers and Crest, slid on Thursday after the third-quarter FY25 earnings.



The company reported <a target="_blank" href="https://www.benzinga.com/pressreleases/25/04/b44974975/p-g-announces-fiscal-year-2025-third-quarter-results" rel="noreferrer noopener">a third-quarter sales decline of 2.1%</a> year over year to $19.78 billion, missing the analyst consensus estimate of $20.11 billion.



Organic sales increased by 1%, driven by higher pricing. Sales in the Beauty and the Grooming segment dropped 2%, and Health Care remained flat.



Adjusted EPS of $1.54 <a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">beat the consensus</a> estimate of $1.53.



Also Read: <a target="_blank" href="https://www.benzinga.com//node/44667910" rel="noreferrer noopener">Procter &amp; Gamble Defies Market Gloom With Golden Cross Glow-Up</a>



Gross profit fell 2.5% Y/Y to $10.08 billion. The reported gross margin decreased by 20 basis points to 50.9%.



Operating margin expanded 100 basis points to 23%, while operating income for the quarter improved 2.2% to $4.55 billion.



The company returned $3.8 billion of cash to shareowners via $2.4 billion of dividend payments and $1.4 billion of share repurchases in the quarter.



P&amp;G held $10.23 billion in cash and equivalents at December-end. Operating cash flow for the quarter was $3.7 billion.



"We're making appropriate adjustments to our near-term outlook to reflect underlying market conditions while remaining confident in the longer-term growth prospects for our brands and the markets where we compete," said Board Chairman, President, and CEO&nbsp;Jon Moeller.



"Our first-half results keep us on track to deliver within our guidance ranges on all key financial metrics for the fiscal year."



Outlook: P&amp;G expects all-in sales for fiscal 2025 to be approximately in line with the prior year and organic sales growth of 2%.



P&amp;G lowered the adjusted EPS outlook from $6.91 – $7.05 to $6.72 &#8211; $6.82 versus the $6.87 estimate.



P&amp;G expects a commodity cost headwind of approximately $200 million after tax for fiscal 2025. The company now expects unfavorable foreign exchange rates will be a headwind of approximately $200 million after tax. Collectively these impacts are a headwind of $0.16 per share.



P&amp;G continues to expect adjusted free cash flow productivity of&nbsp;90%&nbsp;and expects to pay around&nbsp;$10 billion&nbsp;in dividends and repurchase&nbsp;$6&nbsp;billion&nbsp;to&nbsp;$7 billion&nbsp;of common shares in fiscal 2025.



Price Action: PG shares&nbsp;traded lower by 5.12% at $157.25 at the last check on Thursday.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/news/earnings/25/04/44977669/pepsico-ceo-warns-of-tariffs-led-increase-in-supply-chain-costs-cuts-annual-profit-outlook" target="_blank" rel="noreferrer noopener">PepsiCo CEO Warns Of Tariffs Led ‘Increase In Supply Chain Costs,' Cuts Annual Profit Outlook</a></li>
</ul>



Photo by Jonathan Weiss via Shutterstock

Earnings

News

Guidance

Movers

Gillette And Tide Maker Procter & Gamble Feels The Heat From Commodity And Forex Costs, Cuts Profit Outlook

Tech giant Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) is set to report quarterly financial results <a href="https://www.benzinga.com/earnings">Thursday after market close </a>as the company faces a key antitrust case that could change the structure of the company's business segments moving forward.



Here are the analyst estimates for the first quarter, what analysts are saying and key items to watch.



Earnings Estimates: Analysts expect Alphabet to report first-quarter revenue of $88.87 billion, up from $80.54 billion in last year's first quarter, according to data<a href="https://www.benzinga.com/pro/register?utm_adType=bzprocontent&amp;utm_campaign=14daytrial&amp;utm_ad=0423"> from Benzinga Pro.</a>



The company has beaten analyst estimates for revenue in eight straight quarters.



Analysts expect Alphabet to report first-quarter earnings per share of $2.02, up from $1.89 in last year's first quarter. The company has beaten analyst estimates for earnings per share in eight straight quarters.



Read Also: <a href="https://www.benzinga.com/tech/24/12/42728730/alphabet-ceo-pichai-warns-employees-of-high-stakes-2025-we-are-facing-scrutiny-across-the-world">Alphabet CEO Pichai Warns Employees Of High Stakes 2025: &#8216;We Are Facing Scrutiny Across The World&#8217;</a>



What Experts Are Saying: Alphabet's advertising revenue could provide an earnings surprise, Navellier &amp; Associates chairman Louis Navellier said in <a href="https://www.benzinga.com/25/04/44947085/analyst-expects-googles-ad-revenue-to-pick-up-in-q1-google-normally-beats-heres-what-alphabets-chart-shows-ahead-of-earnings">a recent podcast.</a>



"Well, their sales are forecasted to go up 10.7%, and earnings are forecast to grow 7%. Google does not provide any guidance whatsoever, but it has a very good earnings surprise history. I think what everybody's going to be looking at is their advertising revenue very carefully,&#8221; Navellier said.



Bank of America analyst Justin Post <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/04/44909414/google-parent-alphabets-topline-can-withstand-pressure-in-uncertain-macro-scenario-compared-to-peers-analyst">recently maintained</a> a Buy rating on Alphabet with a price target of $185.



The analyst said that the Street has been lowering expectations for Alphabet, which could mean an in-line quarter or beat comes across as a positive.



Needham analyst Laura Martin <a href="https://www.benzinga.com/analyst-ratings/price-target/25/04/44848020/google-genai-ai-cloud-services-drive-analyst-confidence-in-long-term-growth">highlighted Alphabet's large language models</a> as a key upside valuation driver ahead of earnings.



The analyst recently reiterated a Buy rating with a $178 price target.



Martin said generative AI will help increase Alphabet's revenue growth. The company's segments, like Google's search engine and YouTube, give Alphabet's large language models a competitive advantage, Martin said.



Freedom Capital Markets chief global strategist Jay Woods said Alphabet is making headlines due to ongoing antitrust litigation and competition in search from the likes of ChatGPT.



"Shares have been under pressure all year and find themselves at a fork-in-the-road coming into their Thursday number," Woods said in a weekly <a href="https://jaywoods.substack.com/">newsletter</a>.



Woods said Alphabet stock rallied and paused at the end of 2024.



"That level of prior resistance now became support in textbook fashion. Shares rallied from there to make new all-time highs. Then, they failed again."



Woods said Alphabet stock shows a favorable risk/reward scenario with the potential to break down to the $140.50 and $136 levels, while the upside shows "smooth sailing" to the 50-week moving average above $172.



"It may take a strong beat and guide in this macro environment to push much higher, but the lines are set as we head into this busy week of earnings."



Key Items to Watch: One of the biggest items to watch with Alphabet stock remains the ongoing antitrust case with the Department of Justice.



Alphabet will likely be forced to sell or spin off its Chrome segment, with the DOJ finding Alphabet in violation of antitrust laws. The company could be forced to end its search deals with smartphone companies like Apple as well.



While Alphabet is unlikely to comment on the pending case, any commentary on what comes next or if the company discusses businesses in more separate lines than usual could signal future plans.



Google Search and YouTube were bright spots in the <a href="https://www.benzinga.com/25/02/43479274/alphabet-q4-earnings-highlights-ai-cloud-youtube-momentum-continues-capex-guidance-sends-shares-lower">fourth-quarter results</a>. Investors and analysts will look for these key indicators to show strength in the Q1 results and in future guidance. Google Cloud also posted strong growth in the fourth quarter.



"Together, Cloud and YouTube exited 2024 at an annual run rate of $110 billion. Our results show the power of our differentiated full-stack approach to AI innovation and the continued strength of our core business," Alphabet CEO Sundar Pichai said after fourth-quarter results.



Alphabet&#8217;s results could put pressure on several top ETFs, as the stock is a member of the Magnificent Seven and one of the largest companies in the world.



Alphabet is the third-largest holding in the Roundhill Magnificent Seven ETF (BATS: MAGS) at 14.9%. The company is also one of the largest holdings in the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), with Class A shares being the ninth-largest holding at 2.6% and Class C shares being the 11th-largest holding at 2.5%.



GOOGL Price Action: Alphabet stock was up 2.6% to $155.35 on Wednesday versus a 52-week trading range of $140.53 to $207.05. Alphabet stock is down 18% year-to-date in 2025.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/tech/25/04/44892617/sundar-pichai-jokes-about-artificial-pokemon-intelligence-after-gemini-pro-beats-claude-at-classic-gameboy-title">Sundar Pichai Jokes About &#8216;Artificial Pokémon Intelligence&#8217; After Gemini Pro Beats Claude At Classic GameBoy Title</a></li>
</ul>

Price Target

Previews

Reiteration

GOOG

GOOGL

MAGS

Alphabet Q1 Earnings Preview: Google Parent Stock At 'Fork In The Road,' While Antitrust Concerns Remain

Comcast Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CMCSA#NASDAQ">CMCSA</a>)&nbsp;stock tanked Thursday after it reported its <a target="_blank" href="https://www.benzinga.com/pressreleases/25/04/b44974965/comcast-reports-1st-quarter-2025-results" rel="noreferrer noopener">first-quarter results</a>.



The Philadelphia-based company reported a quarterly decline of 0.6% year-over-year to $29.89 billion, beating the analyst consensus estimate of $29.76 billion.



Also Read: <a href="https://www.benzinga.com/media/25/04/44721053/disney-cuts-prices-and-adds-perks-to-lure-families-back-to-orlando-parks" target="_blank" rel="noreferrer noopener">Disney Cuts Prices And Adds Perks To Lure Families Back To Orlando Parks</a>



The company reported adjusted EPS of $1.09, beating <a href="https://www.benzinga.com/calendars/earnings" target="_blank" rel="noreferrer noopener">analyst consensus estimates</a> of 98 cents. Its media segment posted revenue growth of 1.1% Y/Y to $6.44 billion.



Peacock&#8217;s paid subscribers increased by over 20% Y/Y to 41 million, while revenue grew by 16% year over year to $1.2 billion.



Studios&#8217; revenue increased by 3.0% Y/Y to $2.83 billion due to higher content licensing and digital sales of&nbsp;&nbsp;Wicked.



Theme Parks revenue decreased by 5.2% Y/Y to $1.88 billion due to lower revenue at its domestic theme parks, driven by lower guest attendance including the impact of the Hollywood wildfires.



Connectivity &amp; Platforms adjusted EBITDA grew 1.5% Y/Y to $8.3 billion, with a margin expansion of 90 bps to 41.4%.



Comcast said it generated $5.42 billion in free cash flow during the quarter.



Comcast lost 199,000 broadband customers in the period amid <a href="https://www.benzinga.com/news/earnings/25/04/44947739/att-adds-324-thousand-postpaid-subscribers-in-q1-outpaces-verizons-289-thousand-loss" target="_blank" rel="noreferrer noopener">rivalry with telecom</a> companies. 



AT&amp;T Inc&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/T#NYSE">T</a>) Consumer Wireline segment had 261 thousand AT&amp;T Fiber net adds during the quarter. 



Verizon Communications Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>) had 339 thousand broadband net additions during the quarter.



Comcast also lost 427,500 video subscribers as streaming giants like&nbsp;Netflix Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>)&nbsp;gained traction.



Total domestic wireless line net additions reached 323 thousand.



What&#8217;s Next: Comcast CEO Brian L. Roberts expressed excitement about Epic Universe&#8217;s grand opening in Orlando in May and its plans to bring a new world-class theme park to the UK. 



Price Action: At the last check on Thursday, Comcast stock was down 3.54% at $33.25 premarket.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/25/04/44963176/chinese-tech-firms-led-by-alibaba-hoard-nvidia-ai-chips-amid-us-sanctions" target="_blank" rel="noreferrer noopener">China&#8217;s Big Tech Firms Hoard Nvidia AI Chips Before Latest US Sanctions</a></li>
</ul>



Image: Shutterstock

CMCSA

NFLX

Comcast Hit Hard By Subscriber Exodus, Nearly 630,000 Customers Gone In Q1

PepsiCo Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEP#NASDAQ">PEP</a>) reported the first-quarter FY25 earnings on Thursday.



The food and beverage giant clocked a first-quarter FY25 <a target="_blank" href="https://www.sec.gov/Archives/edgar/data/77476/000007747625000022/q120258-kxexhibit991.htm" rel="noreferrer noopener">sales decline</a> of 1.8% year-on-year to $17.92 billion, beating the analyst consensus estimate of $17.77 billion.



Adjusted EPS of $1.48 missed the <a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">consensus estimate of $1.49</a>.



Net revenue from PepsiCo Foods North America (PFNA) decreased by 1% year over year, PepsiCo Beverages North America (PBNA) remained flat, and International Beverages Franchise (IB Franchise) gained 3%.



Also Read: <a target="_blank" href="https://www.benzinga.com//node/44825498" rel="noreferrer noopener">PepsiCo Still A Buy? Not Anymore As Analysts' Run Out Of Answers'</a>



Latin America Foods (LatAm Foods) sales slumped 12% year over year, and Europe, Middle East and Africa (EMEA) and Asia Pacific sales slipped 2%.



Gross profit remained nearly flat at $9.99 billion, with a gross margin of 55.7%. Operating margin contracted by 40 basis points to 14.4%, and operating income for the quarter decreased 4.9% to $2.58 billion.



The company held $8.35 billion in cash and equivalents as of March 22. Cash used in operating activities for the quarter totaled $(973) million.



Chairman and CEO&nbsp;Ramon Laguarta said, "As we look ahead, we expect more volatility and uncertainty, particularly related to global trade developments, which we expect will increase our supply chain costs. At the same time, consumer conditions in many markets remain subdued and similarly have an uncertain outlook."



Outlook FY25: PepsiCo cut its adjusted EPS outlook to $7.92, much lower than the estimate of $8.27 and a low-single-digit increase in organic revenue.



PepsiCo sees a core annual effective tax rate of approximately 20%.



The company expects total cash returns to shareholders to be approximately $8.6 billion, consisting of dividends of $7.6 billion and share repurchases of $1.0 billion.



Price Action: PEP shares are trading lower by 2.17% at $147.01 in premarket at the last check Thursday.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/news/25/04/44961625/fda-targets-synthetic-food-dyes-in-sweeping-nutrition-overhaul" target="_blank" rel="noreferrer noopener">FDA Targets Synthetic Food Dyes In Sweeping Nutrition Overhaul</a></li>
</ul>



Photo via Shutterstock

General

PepsiCo CEO Warns Of Tariffs Led 'Increase In Supply Chain Costs,' Cuts Annual Profit Outlook

With the ongoing shifts in the markets, the U.S.&#8217;s reliance on foreign capital is reversing, leading to lower asset prices. However, its unique position as the issuer of the world&#8217;s reserve currency provides a significant advantage in navigating this shift, according to an expert.



What Happened: In a recent thread on X, Bob Elliot, co-founder, CEO, and CIO of Unlimited and former investment committee member of Bridgewater Associates, argued that, unlike typical emerging market balance of payments crises, the U.S. can prioritize domestic economic conditions due to its debt being <a href="https://www.benzinga.com/government/regulations/25/04/44895384/dollar-slips-to-a-three-year-low-below-98-mark-higher-rates-are-not-supporting-the-dollar-says-expert">denominated in U.S. dollars</a>.



A balance of payments crisis in an emerging market can often trigger aggressive rate hikes to retain foreign capital, curb consumption, and limit currency depreciation needed to service foreign-currency debt, typically crushing local assets.



However, Elliot argues that the U.S. situation differs fundamentally despite sharing the characteristic of high reliance on foreign capital. Since U.S. debt is not issued in a foreign currency but in its own, &#8220;U.S. policymakers are in the privileged position to prioritize domestic conditions through the adjustment process,&#8221; said Elliot.



While concerns exist about foreign selling pushing rates higher, as seen in an emerging market crisis, the Fed&#8217;s ability to prioritize domestic conditions in the U.S. means it can ease monetary policy even as capital withdraws.



If needed, &#8220;the Fed can always print money and buy the bonds,&#8221; particularly to offset potential deflationary pressures from a weakening economy, said Elliot.



He explains that, unlike typical BoP crises, the Fed&#8217;s focus on domestic conditions, enabled by a weaker dollar and easing interest rates, can limit equity losses from reduced demand.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">But unlike more traditional BoP crises, the US policymakers are in the privileged position to prioritize domestic conditions through the adjustment process. The result is a weaker currency but stronger bond and equity performance than in typical adjustments of the past.&mdash; Bob Elliott (@BobEUnlimited) <a href="https://twitter.com/BobEUnlimited/status/1914994502973944198?ref_src=twsrc%5Etfw">April 23, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



See Also: <a href="https://www.benzinga.com/25/04/44947085/analyst-expects-googles-ad-revenue-to-pick-up-in-q1-google-normally-beats-heres-what-alphabets-chart-shows-ahead-of-earnings">&#8216;Google Normally Beats,&#8217; Says Analyst Expecting Sundar Pichai-Led Company&#8217;s Ad Revenue To &#8216;Pick Up&#8217; In Q1: Here&#8217;s What Alphabet&#8217;s Chart Shows Ahead Of Earnings</a>



Why It Matters: According to Elliot, the selloff in U.S. assets is a consequence of the government&#8217;s efforts to reduce consumption through tariff policies and a subsequent narrowing of the current account deficit.



The decades-long buildup in foreign capital inflows since the 1990s, Elliot highlighted, was initially driven by reserve purchases and later by increased equity investments following the Global Financial Crisis. Also, foreign private investors funded substantial federal government deficits in recent years.



&#8220;Never would a country be allowed to run such a classic &#8216;twin deficit&#8217; problem for so long,&#8221; Elliot stated, emphasizing the unprecedented nature of this forty-year dynamic, made possible by the dollar&#8217;s reserve currency status.



Thus, he argues that the dollar&#8217;s reserve status can help policymakers make &#8220;adjustments&#8221; without creating a typical balance of payments crisis.



Price Action: As of the publication of this article, the Dollar Index Spot was trading 0.16% lower at the 99.6890 level, and the futures of the Dow Jones, S&amp;P 500, and Nasdaq 100 indices were down 0.49%,0.31%, and 0.39%, respectively.



The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, rose on Wednesday. The SPY was up 1.55% to $535.42, while the QQQ advanced 2.27% to $454.561, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/25/04/44945402/wedbushs-dan-ives-raises-teslas-price-target-to-350-as-musk-promises-to-significantly-reduce-doge-time" target="_blank" rel="noreferrer noopener">Wedbush's Dan Ives Raises Tesla's Price Target To $350 As Elon Musk Promises To ‘Significantly' Reduce DOGE Time</a></li>
</ul>



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.



Image Via Shutterstock

Government

Regulations

Forex

Federal Reserve

Markets

Dollar-Denominated Debt Gives US Policymakers Edge In Navigating Economic Shocks, Says Expert: '...Are In The Privileged Position'

U.S. stock futures fell on Thursday after a two-day advance. Futures of major benchmark indices were lower in premarket.



The administration&#8217;s mixed signals on tariffs fueled investor anxiety. While President Donald Trump hinted at a deal with China while speaking to reporters on Tuesday after market hours, the Treasury Secretary Scott Bessent <a href="https://www.benzinga.com/markets/equities/25/04/44970416/scott-bessents-china-de-escalation-scoop-delivered-to-wall-street-early-at-closed-door-event-2-2-trillion-in-gains-later-questions-arise-if-retail-investors-were">denied slashing steep tariffs</a> on Chinese imports unilaterally on Wednesday. China<a href="https://www.benzinga.com/markets/25/04/44973283/china-denies-trumps-trade-talk-assertion-calls-for-abolition-of-unilateral-tariffs-no-factual-basis"> also refuted Trump&#8217;s trade talk</a> assertion.



Investors will also keep an eye on tech giant and Google&#8217;s parent Alphabet Inc.&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) slated to be released later today.



Meanwhile, the 10-year Treasury bond yielded 4.35% and the two-year bond was at 3.83%. The CME Group's FedWatch <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">tool&#8217;</a>s projections show markets pricing a 93.9% likelihood of the Federal Reserve keeping the current interest rates unchanged in its May meeting. 



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Dow Jones</td><td>-0.72%</td></tr><tr><td>S&amp;P 500</td><td>-0.59%</td></tr><tr><td>Nasdaq 100</td><td>-0.86%</td></tr><tr><td>Russell 2000</td><td>-0.57%</td></tr></tbody></table></figure>



The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, fell in premarket on Thursday. The SPY was down 0.51% to $532.67, while the QQQ declined 0.71% to $451.33, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



Cues From Last Session:



Information technology, consumer discretionary, and communication services sectors led U.S. stocks higher Wednesday, with the Dow Jones jumping over 400 points, though all major indices <a href="https://www.benzinga.com/news/earnings/25/04/44972538/dow-jumps-over-400-points-amid-china-tariff-hopes-investor-fear-eases-greed-index-remains-in-fear-zone">closed well below their session highs</a> after the Dow had surged over 1,100 points earlier.



Most S&amp;P 500 sectors closed positively, but consumer staples and energy stocks finished the session lower.



Philip Morris International Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PM#NYSE">PM</a>) reported strong first-quarter results and raised its FY25 adjusted EPS outlook, while Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) shares gained over 5% after its first-quarter earnings release.



Economic data showed new single-family home sales rose 7.4% to an annualized 724,000, the S&amp;P Global services PMI fell to 51.4 in April, and the manufacturing PMI increased to 50.7.



As of Wednesday, the Nasdaq 100 index was down 15.88% from its previous high of 22,222.61 points. The S&amp;P 500 index was 12.55% lower, as compared to the last record high of 6,147.43 points. On the other hand, Dow Jones was 12.13% down from its 52-week high of 45,073.63 points.



The Dow Jones index jumped 420 points or 1.07% to 39,606.57, whereas the S&amp;P 500 index surged 1.67% to 5,375.86. Nasdaq Composite ended 2.50% higher at 16,708.05, and the small-cap gauge, Russell 2000, also advanced 1.53% to 1,919.14.



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>2.50%</td><td>16,708.05</td></tr><tr><td>S&amp;P 500</td><td>1.67%</td><td>5,375.86</td></tr><tr><td>Dow Jones</td><td>1.07%</td><td>39,606.57</td></tr><tr><td>Russell 2000</td><td>1.53%</td><td>1,919.14</td></tr></tbody></table></figure>



Insights From Analysts:



Acknowledging the swift and often daily shifts in tariff and geopolitical landscapes, Scott Wren, senior global market strategist at Wells Fargo, noted, "With the pace of change on the tariff and geopolitical fronts moving fast and sometimes adjusting on a day-to-day basis, investors are wondering what they might do to help navigate the uncertainties."



To navigate these uncertainties, Wren has advised investors to maintain <a href="https://www.benzinga.com/government/regulations/25/04/44973246/market-dip-attractive-entry-point-says-wells-fargo-energy-large-and-mid-cap-stock-favored">exposure in higher-quality equities</a> and fixed income, emphasizing the need for a plan to withstand market volatility while pursuing growth.



Wren stated, "The first rule of thumb for our plan is to focus on quality in a diversified manner."



Pointing to the stronger balance sheets, dependable cash flows, easy credit access, and share buyback capabilities of larger companies, Wren said, "We continue to favor large- and mid-capitalization equities over small-cap."



Additionally, Wells Fargo favors the energy sector and holds favorable ratings on Information Technology, Financials, and Communication Services, according to Wren, who explained, "We believe these sectors feature long-term growth drivers and robust balance sheets. We suggest investors put funds to work in these sectors at current market levels. In our view, the pullback in stocks offers long-term investors an attractive entry point."



After Trump blasted Fed Chairman Jerome Powell in a Truth Social post on Monday and said that "Powell's termination can't come quickly enough,&#8221; during a Tuesday press conference, he changed his tone, saying, "I have no intention of firing him".



&#8220;Essentially, if there is a recession, President Trump will likely blame Fed Chairman Powell for failing to cut key interest rates fast enough,&#8221; said Louis Navellier of Navellier and Associates.



Talking about the ongoing uncertainty surrounding Trump&#8217;s policies, Ed Yardeni of Yardeni Research said, &#8220;Trump's Tariff Turmoil has put the world on edge. A new world order may be the ultimate result, but for now we've got the New World Disorder, leaving everyone scrambling to adjust to Trump's unpredictable policy pivots. The economic fallout is uncertain. The uncertainty is keeping Wall Street on edge.&#8221;



See Also:<a href="https://www.benzinga.com/money/how-to-trade-futures"> How to Trade Futures </a>



Upcoming Economic Data



Here&#8217;s what investors will keep an eye on Thursday:



<ul>
<li>Initial jobless claims for the week ended April 19, along with March&#8217;s durable-goods orders data, will be out by 8:30 a.m. ET.</li>
</ul>



<ul>
<li>Existing home sales for March will be released by 10:00 a.m., and Minneapolis Fed President Neel Kashkari will speak at 5:00 p.m. ET.</li>
</ul>



Stocks In Focus:



<ul>
<li>Bristol-Myers Squibb Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BMY#NYSE">BMY</a>) fell 0.19% in premarket on Thursday as it is expected to report earnings before the opening bell. Analysts expect a quarterly earnings of $1.49 per share on revenue of $10.70 billion.</li>
</ul>



<ul>
<li>PepsiCo Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEP#NASDAQ">PEP</a>) was down 0.11% as Wall Street expects it to report earnings of $1.49 per share on revenue of $17.77 billion before the opening bell.</li>
</ul>



<ul>
<li>Procter &amp; Gamble Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>) declined 0.96% as it is expected to report earnings before the opening bell. Analysts expect a quarterly earnings of $1.53 per share on revenue of $20.11 billion.</li>
</ul>



<ul>
<li>Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) was 0.84% lower as Wall Street expects it to report earnings of $2.02 per share on revenue of $88.87 billion after the closing bell.</li>
</ul>



<ul>
<li>Nokia Oyj (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOK#NYSE">NOK</a>) tumbled 7.91% after posting weaker-than-expected earnings for its first quarter and confirming its guidance for the rest of the year.</li>
</ul>



<ul>
<li>Alaska Air Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALK#NYSE">ALK</a>) plunged 7.18% after it warned of a slower demand as its second-quarter profit outlook fell short of expectations.</li>
</ul>



Commodities, Gold, And Global Equity Markets:



Crude oil futures were trading higher in the early New York session by 0.48% to hover around $62.57 per barrel.



Gold Spot US Dollar rose 1.43% to hover around $3,335.49 per ounce. Its last record high stood at $3,500.33 per ounce. The U.S. Dollar Index spot was lower by 0.50% at the 99.3430 level.



Asian markets were mixed on Thursday. Japan's Nikkei 225 and Australia's ASX 200 indices advanced. While Hong Kong's Hang Seng, India's S&amp;P BSE Sensex, China&#8217;s CSI 300, and South Korea's Kospi index fell. European markets were mostly lower in early trade.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/markets/equities/25/04/44972416/ibm-plays-down-trump-tariff-concerns-doge-could-affect-consulting-business-but-its-us-federal-bu">IBM Plays Down Trump Tariff Concerns: DOGE Could Affect Consulting Business, But Its &#8216;US Federal Business Is Less Than 5%,&#8217; Says CEO</a></li>
</ul>



Image via Shutterstock

Asia

Earnings Beats

Earnings Misses

Macro Notification

Market Summary

Bonds

Broad U.S. Equity ETFs

Emerging Markets

Eurozone

Futures

Commodities

Treasuries

Pre-Market Outlook

ETFs

TSLA

US Stock Futures Drop Amid Mixed Signals From White House On US-China Trade: 'Focus On Quality In A Diversified Manner,' Says Expert

China&#8217;s Ministry of Commerce has dismissed rumors of ongoing trade discussions with the United States, labeling such claims as unfounded.



What Happened: The Chinese Ministry of Commerce on Thursday, has denied any ongoing bilateral trade negotiations with the U.S.. The ministry stressed that any claims of progress in such talks have "no factual basis." <a href="https://www.scmp.com/economy/global-economy/article/3307745/china-denies-rumours-us-trade-talks-says-claims-have-no-factual-basis?module=top_story&amp;pgtype=homepage">reported</a> the South China Morning Post.



"At present there are absolutely no negotiations on the economy and trade between China and the U.S.," confirmed He, as cited by CNBC. 



Ministry Spokesman He Yadong, during a press conference, called on the U.S. to listen to international and domestic calls for reason. &#8220;If&nbsp;the U.S. truly wants to&nbsp;resolve the issue, it should&nbsp;heed rational voices from the&nbsp;international community and domestic stakeholders,&nbsp;completely abolish all unilateral tariffs&nbsp;on China, and find a&nbsp;solution through equal dialogue,&#8221; Yadong stated.



The commerce ministry's comments echoed those of Chinese Foreign Ministry Spokesperson Guo Jiakun, who said on Wednesday that there were no ongoing talks, according to state media.



SEE ALSO:&nbsp;<a href="https://benzinga.com/markets/25/04/44944439/warren-buffett-i-am-100-for-the-independence-of-the-fedand-for-over-20-years-hes-warned-we-do-not-want-to" target="_blank" rel="noreferrer noopener">Warren Buffett Said &#8216;I Am 100% For The Independence Of The Fed:&#8217; For Over 20 Years, He&#8217;s Warned, &#8220;We Do Not Want To Fool Around With It&#8221;</a>



Why It Matters: China&#8217;s response comes in the wake of recent remarks made by U.S. Treasury Secretary Scott Bessent at a closed-door investor summit hosted by JPMorgan Chase &amp; Co. Bessent&#8217;s comments on tariffs and the ongoing trade tensions with China. The Treasury Secretary had reportedly characterized the high tariffs as "<a href="https://www.benzinga.com/markets/25/04/44942449/trump-pledges-substantial-cut-in-china-tariffs-but-refuses-to-make-it-zero-if-they-dont-make-a-deal-we-will-set-the-deal">unsustainable</a>" and stated that he expects ‘de-escalation' in U.S.-China tariffs. 



Earlier this week, U.S. President Donald Trump hinted at a potential review of the &#8220;high tariffs&#8221; placed on Chinese goods since the start of his second term. He also noted that senior officials from Beijing had reached out to Washington to lay the groundwork for possible talks.



Furthermore, President Trump recently pledged a<a href="https://www.benzinga.com/markets/25/04/44942449/trump-pledges-substantial-cut-in-china-tariffs-but-refuses-to-make-it-zero-if-they-dont-make-a-deal-we-will-set-the-deal"> significant reduction</a> in the high tariffs placed on Chinese goods, although they will not be completely abolished.



Alibaba Group Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>), PDD Holdings Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>) and&nbsp;Baidu, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) climbed over 2% on Wednesday, amid optimism over Beijing's softening trade tensions. <a href="https://in.benzinga.com/quote/bidu" target="_blank" rel="noreferrer noopener"></a>



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Image via Shutterstock



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

BABA

BIDU

China Denies Trump's Trade Talk Assertion, Calls For Abolition Of 'Unilateral Tariffs': 'No Factual Basis'

Leading cryptocurrencies gained on Wednesday amid reports that President Donald Trump was considering reducing China tariffs.



<figure class="wp-block-table"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 8:45 p.m. ET)</td></tr><tr><td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td><td>+0.47%</td><td>$93,643.53</td></tr><tr><td>Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>+2.38%</td><td>$1,792.14</td></tr><tr><td>Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>-2.57%</td><td>$0.1785</td></tr></tbody></table></figure>



What Happened: Bitcoin consolidated in the $93,000 range after rising above $94,000 early this morning. Ethereum, the second-largest cryptocurrency, surpassed $1,800 for the first time since April 6.&nbsp;



Dogecoin, meanwhile, edged lower, following a sharp rebound earlier in the week.



Over $351 million was liquidated from the cryptocurrency market in the last 24 hours, with nearly $190 million in bearish shorts getting erased.&nbsp;



Nearly $289 million in Bitcoin shorts risked liquidation if the apex cryptocurrency reached $95,000.



Bitcoin&#8217;s Open Interest rose moderately by 0.15% in the last 24 hours, following a double-digit bump in the previous day.



Bearish bets continued to dominate over bullish long bets, as more than 62% of Binance traders with open Bitcoin positions bet against the leading cryptocurrency.



The market sentiment remained in "Greed," according to the Crypto Fear and Greed Index, signaling a rise in buying pressure.



Top Gainers (24-Hours)



<figure class="wp-block-table"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 8:45 p.m. ET)</td></tr><tr><td>Official Trump (TRUMP)</td><td>+41.26%</td><td>$13.03</td></tr><tr><td>Onyxcoin (XCN)</td><td>+12.85%</td><td>$0.02103</td></tr><tr><td>JasmyCoin (JASMY)</td><td>+9.66%</td><td>$0.01683</td></tr></tbody></table></figure>



The global cryptocurrency market capitalization stood at $2.93 trillion, following a marginal increase of 0.11% in the last 24 hours.



Stocks rose further on Wednesday. The Dow Jones Industrial Average jumped 419.59 points, or 1.07%, to end at 39,606.57. The S&amp;P 500 gained 1.67% to close at 5,375.86. The tech-heavy Nasdaq Composite spiked 2.50% to end at 16,708.05.



The advance comes amid reports that the Trump administration was contemplating <a href="https://www.benzinga.com/trading-ideas/movers/25/04/44962996/nio-stock-trades-higher-on-potential-china-tariff-cuts-ev-sector-optimism">lowering China tariffs to between 65% and 50%</a>, a significant reduction from the current 145%.



The sentiment has also been boosted by the shift in Trump&#8217;s tone toward Jerome Powell, who said he has no intention of firing the Federal Reserve Chair.



See More: <a href="https://www.benzinga.com/money/best-crypto-scanners">Best Cryptocurrency Scanners</a>



Analyst Notes: In a note to Benzinga, analysts at cryptocurrency payment company B2BINPAY said that while Bitcoin's current setup looks bullish, there are warning signs.



"Bitcoin dominance is currently very high, at 64.30%. This means that if Bitcoin drops even slightly from here, the altcoin market could face a much sharper decline. In this scenario, caution is warranted — it's like walking on thin ice," the analytics team added.



Widely followed cryptocurrency analyst Rekt Capital noted Ethereum's "strong" reaction as it tested the "historical demand area" as support.



"Continued stability here is essential to building out a reversal base," the chartist stated.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"><a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ETH</a> Ethereum is enjoying a stronger reaction today, successfully retesting this light blue area as support Continued stability here is essential to building out a reversal base <a href="https://twitter.com/hashtag/ETH?src=hash&amp;ref_src=twsrc%5Etfw">#ETH</a> <a href="https://twitter.com/hashtag/Crypto?src=hash&amp;ref_src=twsrc%5Etfw">#Crypto</a> <a href="https://twitter.com/hashtag/Ethereum?src=hash&amp;ref_src=twsrc%5Etfw">#Ethereum</a> <a href="https://t.co/OOdMS4HfUs">https://t.co/OOdMS4HfUs</a> <a href="https://t.co/6OJit9yepP">pic.twitter.com/6OJit9yepP</a>&mdash; Rekt Capital (@rektcapital) <a href="https://twitter.com/rektcapital/status/1915061207343788288?ref_src=twsrc%5Etfw">April 23, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Photo: Antonio Gravante/Shutterstock



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Cryptocurrency

$BTC

$DOGE

$ETH

Bitcoin, Ethereum Rise, Dogecoin Falls As Trump Reverses Course On China Tariffs: Analyst Says BTC Setup Bullish But 'It's Like Walking On Thin Ice'

Boeing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) is implementing a strategic pivot in response to China&#8217;s halt of aircraft deliveries amid escalating tariff tensions, according to statements made during the company&#8217;s <a href="https://www.benzinga.com/25/04/44948499/boeing-stock-jumps-after-q1-2025-results-production-expansion-plans-for-737-and-787">first quarter of 2025 earnings call</a>.



What Happened: CEO Kelly Ortberg confirmed that Chinese customers have indicated they will not take delivery of Boeing aircraft following China&#8217;s implementation of 125% retaliatory tariffs on U.S.-made goods, a response to President Donald Trump&#8216;s 145% tariffs on Chinese imports.



&#8220;Due to the tariffs, many of our customers in China have indicated they will not take delivery,&#8221; Ortberg said during the earnings call. &#8220;We&#8217;re not going to continue to build aircraft for customers who will not take them.&#8221;



Boeing has approximately 50 China deliveries planned for the remainder of 2025, including 41 aircraft already built or in production. The company is actively assessing options to remarket these planes to other customers, with Ortberg noting strong demand elsewhere.



&#8220;There&#8217;s plenty of customers out there looking for the Max aircraft,&#8221; <a href="https://www.benzinga.com/25/04/44960098/boeing-ceo-says-china-stopped-taking-airplane-deliveries-as-trade-war-rages">Ortberg told CNBC</a>. &#8220;I&#8217;m not going to let this derail the recovery of our company.&#8221;



See Also: <a href="https://www.benzinga.com/news/earnings/25/04/44937440/tesla-q1-misses-estimates-as-tariff-pressures-weigh-on-outlook-lower-cost-evs-still-on-track">Tesla Q1 Misses Estimates As Tariff Pressures Weigh On Outlook, Lower-Cost EVs Still On Track</a>



Why It Matters: Despite these challenges, Boeing reported better-than-expected first-quarter results with revenue increasing 18% year-over-year to $19.5 billion. The company delivered 130 aircraft in the quarter, exceeding internal projections, and reported a core operating margin recovery to 1% from -2.3% a year ago.



The company expects to largely offset any potential cash flow impact from the China situation, maintaining its cash usage projection of $4-5 billion for the year.



&#8220;We had a really good start to the year operationally, which we believe puts us in a position to largely offset any potential cash flow impact of China deliveries,&#8221; said CFO Brian West.



Price Action: Boeing Co. closed at $172.37 on Thursday, up 6.06%. After hours, it slipped slightly to $172.36. Year to date, the stock is up 0.29%.



Boeing shows weak growth and valuation metrics, according to Benzinga Edge Stock Rankings. While the stock has positive momentum, BA continues to exhibit a negative price trend in the short to long term. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">Sign up to learn more.</a>



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Photo Courtesy: Andreas Zeitler On Shutterstock.com



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Boeing Adjusts Strategy Amid Trump Tariff Fallout, CEO Kelly Ortberg Says Won't 'Build Aircraft For Customers Who Will Not Take Them' As China Halts Deliveries

On Wednesday, Sen. Elizabeth Warren (D-Mass.) requested answers from Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) CEO Tim Cook, citing a <a href="https://www.benzinga.com/24/11/42158580/how-tim-cooks-strategy-to-win-over-trump-gave-apple-a-competitive-edge-and-why-sundar-pichai-mark-zuckerberg-and-others-might-be-following-his-playbook">pattern of "influence-peddling"</a> between the iPhone-maker and the Donald Trump administration over the trade negotiations with China.



What Happened: In a letter to Cook that was obtained by Bloomberg <a href="https://www.bloomberg.com/news/articles/2025-04-23/apple-ceo-tim-cook-urged-by-elizabeth-warren-to-disclose-trump-tariff-talks">News</a>, Warren questioned Apple CEO's involvement in <a href="https://www.benzinga.com/25/04/44778464/trump-administration-grants-tariff-reprieve-to-tech-industry-apple-and-nvidia-among-beneficiaries">securing tariff exemptions</a> on Apple products after Trump threatened to impose duties as high as 145% on Chinese imports.



These tariffs, if enacted, would have severely impacted Apple's supply chain and profit margins. Previously, Wedbush analyst Dan Ives said that iPhones manufactured in the U.S. could cost as much as $3,500, more than <a href="https://www.benzinga.com/markets/equities/25/04/44728758/trumps-tariffs-could-push-apple-iphone-prices-to-a-staggering-3500-says-top-analyst">three times the current price</a>.



Read Next: <a href="https://www.benzinga.com/25/04/44855242/charlie-munger-once-highlighted-how-warren-buffetts-lifelong-learning-made-berkshire-hathaways-success-possible-and-the-crucial-lesson-you-can-take-from-it">Charlie Munger Once Said Warren Buffett Is A &#8216;Learning Machine&#8217; And That&#8217;s What Lies Beneath Berkshire Hathaway&#8217;s Success From One Decade To Another</a>



&#8220;I write regarding my concerns about the extent to which you &#8216;went to work behind the scenes&#8217; to obtain special exemptions from President Trump's new tariffs earlier this month,&#8221; Warren wrote in the letter.&nbsp;



"The circumstances surrounding Apple's exemptions raise fresh concerns about influence-peddling by huge well-connected corporations, and their ability to gain special favors from President Trump," she stated.



Adding, "At best, your work to eliminate the tariffs on Apple products, and President Trump's subsequent decision to exempt certain Apple products, creates the appearance of impropriety."



Subscribe to the&nbsp;<a href="https://bztechtrends.beehiiv.com/subscribe" target="_blank" rel="noreferrer noopener">Benzinga Tech Trends newsletter</a>&nbsp;to get all the latest tech developments delivered to your inbox.



The senator cited reports that Cook had private discussions with Trump administration officials shortly before electronics—including iPhones—were excluded from the tariff list.



She also mentioned <a href="https://www.benzinga.com/25/01/42801809/apple-ceo-tim-cook-reportedly-donates-1-million-to-trump-inauguration-joins-ranks-of-mark-zuckerberg-jeff-bezos-and-sam-altman">Cook's $1 million donation</a> to Trump's inauguration committee.



"In light of these reports, we write to request more information about your attempts to influence Trump Administration officials," she added, asking for a timeline of Apple's conversations with federal officials and when the company learned it would be exempted.



Apple did not immediately respond to <a href="https://pro.benzinga.com/dashboard">Benzinga&#8217;s</a> request for comments.



Why It's Important: Earlier, it was reported that Cook and U.S. Commerce Secretary Howard Lutnick discussed how <a href="https://www.benzinga.com/25/04/44882019/apple-ceo-tim-cooks-dialogue-with-commerce-secretary-lutnick-secured-tariff-exemption-for-iphones-and-electronics-report">Trump tariffs could affect iPhone prices</a>.



The report came after the Trump administration waived import duties on electronic devices produced in China. This move benefited Apple and also provided respite to companies like HP Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HPQ#NYSE">HPQ</a>) and Dell (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DELL#NYSE">DELL</a>).



Last year, Cook revealed that Apple's decision to manufacture in China wasn't because of cheap labor, as most people assume.



Price Action: Apple shares rose 2.43% on Wednesday, closing at $204.60. Despite the daily gain, the stock remains down 16.10% year-to-date, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>.



Apple currently holds a growth score of 45.08% in the <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">Benzinga Edge Stock Rankings</a>. Click here to see how it compares with other leading tech stocks.



Photo Courtesy: David Garcia on Shutterstock.com



Check out more of Benzinga&#8217;s Consumer Tech coverage by&nbsp;<a href="https://www.benzinga.com/topic/consumer-tech" target="_blank" rel="noreferrer noopener">following this link</a>.



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DELL

Elizabeth Warren Slams Tim Cook Over Alleged Backdoor Deal With Trump To Shield Apple From Crushing China Tariffs: 'Creates The Appearance Of Impropriety'

Americans are rushing to buy cars ahead of looming price hikes, fueling a short-term spending spree on goods most vulnerable to the latest <a href="https://www.benzinga.com/news/econ-s">wave of tariff disruptions.</a>



In its Beige Book released Wednesday, the Federal Reserve said most regional districts reported moderate to robust vehicle sales, attributing the surge to "a rush to purchase ahead of tariff-related price increases." 



The data underscores growing anxiety as the 25% tariff on imported automobiles, imposed by the Trump administration, took effect on April 3.



<h3 class="wp-block-heading">A Tale of Two Consumers: Autos Hot, Everything Else Not</h3>



While Americans are racing to lock in car deals, non-auto consumer spending has taken a hit. 



The Beige Book's national summary described overall economic activity as "little changed," with only five of the 12 Fed districts reporting slight growth. In contrast, three districts were flat, and four reported declines.



The diverging consumer behavior is stark. In the Cleveland district, for instance, retail demand slumped, but auto dealers saw a wave of customers "pulling forward purchases" in anticipation of higher prices. 



In New York, economic activity contracted modestly, and businesses conveyed "significant concern about tariffs," leading many to brace for declining activity and surging costs.



<h3 class="wp-block-heading">Inflation Fears Mount As Tariff Surcharges Hit Supply Chains</h3>



Prices rose across all districts due to trade disruptions. 



At least six districts described the price growth as moderate, and another six as modest, yet across the board, tariffs were named as a key driver. Businesses are already receiving cost-hike notifications from suppliers and in many cases are adding surcharges or shortening pricing horizons.



"Most businesses expected to pass through additional costs to customers," the Fed said, although several also flagged the risk of margin compression as demand weakens, particularly for consumer-facing firms.



In Kansas City, expectations of price growth rose "at a robust rate," particularly in the goods sector, while in Dallas, "input cost pressures accelerated" and outlooks deteriorated amid trade uncertainty.



<h3 class="wp-block-heading">Outlook Worsens As Trade Uncertainty Takes Hold</h3>



The clearest theme from the Fed's April Beige Book is that the U.S. economy is barely growing. 



While pockets of strength, like the auto sales boom, show consumers are still willing to spend, those surges appear driven by fear of future costs rather than optimism.



That fear of higher prices, lower margins, and supply disruptions is increasingly shaping decisions for both consumers and businesses. 



Michigan-based automakers General Motors Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) and Ford Motor Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) are scheduled to release their first-quarter earnings on April 29 and May 5, respectively.



Investors will be closely watching to see whether the recent increase in vehicle sales has come with added costs—and how that has impacted automakers' profit margins.



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</ul>



Photo: Shutterstock

STLA

Americans Rush To Buy Cars Ahead Of Tariff Price Hikes, Fed Beige Book Shows

Chipotle Mexican Grill Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>) reported financial results for the first quarter after the market close on Wednesday. Here&#8217;s a look at the key details<a href="https://www.benzinga.com/pressreleases/25/04/n44964490/chipotle-announces-first-quarter-2025-results"> from the quarter</a>.



Q1 Earnings: Chipotle reported first-quarter revenue of $2.9 billion, missing analyst <a href="https://www.benzinga.com/calendars/earnings" target="_blank" rel="noreferrer noopener">estimates</a>&nbsp;of $2.95 billion. The fast-casual restaurant chain company reported adjusted earnings of 29 cents per share, beating analyst estimates of 28 cents per share, according to <a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



Chipotle said total revenue increased 6.4% on a year-over-year basis, but comparable restaurant sales fell 0.4% year-over-year due to lower transactions of&nbsp;2.3%. The total revenue growth was largely driven by new restaurant openings. Chipotle opened 57 new restaurants in the quarter, and 48 of those locations included a Chipotlane. 



Digital sales represented 35.4% of food and beverage revenue. Restaurant level operating margin was 26.2% in the first quarter. Food, beverage and packaging costs came in at 29.2% of total revenue, up from 28.8% in the first quarter of 2024. Chipotle said the increase was primarily due to inflation and higher usage across several items, including avocados, dairy and chicken.



See Also: <a href="https://www.benzinga.com/general/market-summary/25/04/44945107/bearish-charts-and-upbeat-q1-estimates-heres-how-chipotle-stock-is-doing-after-recent-price-target-revisions">Chipotle Stock Faces Bearish Charts Despite Upbeat Q1 Estimates And Price Target Revisions</a>



The company also repurchased $553.7 million of its stock during the first quarter. Chipotle had $874.7 million remaining under its share repurchase authorization as of March 31.



&#8220;While our first quarter results were impacted by several headwinds, including weather and a slowdown in consumer spending, our teams continue to make significant progress improving the execution in our restaurants, innovating our back of house, and building Chipotle into a global iconic brand,&#8221; said Scott Boatwright, CEO of Chipotle.



&#8220;I am confident that we have a strong plan to return to positive transaction comps by the second half of the year, and during these uncertain times, we will continue to invest in the things that make Chipotle a special brand — our people, culinary, value proposition, innovation and growth.&#8221;



Guidance: Chipotle expects full-year 2025 comparable restaurant sales growth in the low-single-digit range, down from prior guidance for growth in the low- to mid-single-digit range. The company continues to expect to open between 315 and 345 new restaurants in 2025 with more than 80% including a Chipotlane.



Chipotle executives will further discuss the quarter on a conference call with investors and analysts at 4:30 p.m. ET.



CMG Price Action: <a href="https://www.benzinga.com/quote/CMG" target="_blank" rel="noreferrer noopener">Chipotle shares</a> were down approximately 20% year-to-date heading into Wednesday&#8217;s report. Shares were down 3.61% after-hours, trading at $46.34 at the time of publication Wednesday, according to <a href="http://pro.benzinga.com" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



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<li><a href="https://www.benzinga.com/general/restaurants/25/04/44907247/restaurant-sector-q1-volatilty-from-weather-inflation-analyst-lowers-price-targets">Restaurant Sector Q1 Volatilty From Weather, Inflation — Analyst Lowers Price Targets</a></li>
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Photo: Shutterstock.

Restaurants

Chipotle Investors Get Burnt On Q1 Earnings As Comparable Sales Fall Amid Slowdown In Consumer Spending

Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) analysts are cautious on the short-term outlook of the electric vehicle company after it missed revenue and earnings per share estimates in<a href="https://www.benzinga.com/news/earnings/25/04/44937440/tesla-q1-misses-estimates-as-tariff-pressures-weigh-on-outlook-lower-cost-evs-still-on-track"> the first quarter.</a>



The Tesla Analysts: 



<ul>
<li>Truist Securities analyst William Stein maintained a Hold rating on Tesla with a $280 price target.</li>



<li>Needham analyst Chris Pierce reiterated a Hold rating with no price target.</li>



<li>Goldman Sachs analyst Mark Delaney maintained a Neutral rating and lowered the price target from $260 to $235.</li>



<li>Stifel analyst Stephen Gengaro reiterated a Buy rating with a $455 price target.</li>



<li>Cantor Fitzgerald analyst Andres Sheppard reiterated an Overweight rating and lowered the price target from $425 to $355.</li>



<li>Piper Sandler analyst Alexander Potter reiterated an Overweight rating with a $400 price target.</li>



<li>Benchmark analyst Mickey Legg reiterated a Buy rating with a $350 price target.</li>



<li>Canaccord Genuity analyst George Gianarikas reiterated a Buy rating and lowered the price target from $404 to $303.</li>
</ul>



Read Also: <a href="https://www.benzinga.com/news/management/25/04/44940011/benzinga-readers-predictions-for-tesla-q1-earnings-results-musks-announcements">Benzinga Readers&#8217; Predictions For Tesla Q1 Earnings Results, Musk&#8217;s Announcements</a>



Truist Securities on TSLA: Weak delivery data and 2025 growth being withdrawn were negatives from Tesla's first quarter, Stein said in a new investor note.



"Despite weak results, TSLA's reaffirming operating goals is a positive," Stein said.



Positives from Tesla's earnings call highlighted by the analyst were CEO Elon Musk shifting time from the Department of Government Efficiency to Tesla in May, tariffs hurting other automakers more than Tesla, a lower-cost model on track for the first half of 2025 and the Robotaxi service starting in Austin in June.



The analyst said the first-quarter results saw management commentary on tariffs and political sentiment that could impact demand and costs, and saw growth guidance for 2025 withdrawn.



"We remind investors that TSLA has historically delivered stunning technical achievements, but often delivered later than initially promised. We maintain an open mind."



Needham on TSLA: A demand rebound for Tesla could be difficult, Pierce writes in a new investor note.



"We're sensitive to short-term political headwinds hurting demand, but we've yet to hear a compelling reason why TSLA demand will bounce back quickly," Pierce said.



The analyst said Tesla's bullish tone on FSD, robotaxis and Optimus bot continue to be an attempt to point to higher margin segments.



"We continue to see these call options as more priced in that not."



Goldman Sachs on TSLA: The first quarter was a mixed report for Tesla, Delaney said in a new investor note.



The analyst said new product launches, tariffs, margins, FSD and robotaxis are likely to be the key debates following the quarterly results and conference call.



"We still see downside risk to consensus estimates over the intermediate term given tariff costs and end demand considerations," Delaney said.



The analyst said the new lower-cost vehicles could also be less unique than expected, given new company comments.



Stifel on TSLA: A weak first quarter was "not a big surprise," Gengaro said in a new investor note.



"We believe 1Q25 results/commentary are modestly positive for TSLA," Gengaro said.



The analyst said positives are the lower-priced vehicles remaining on track, confidence in FSD rollout, progress made on robotaxis and Musk spending more time at Tesla in the coming months.



"We reiterate our belief that TSLA remains very well positioned, and FSD and Robotaxi will be critical value drivers."



Cantor Fitzgerald on TSLA: Sheppard remains bullish on Tesla with the launch of Robotaxi in Texas in June and the lower-priced vehicles coming in the first half of 2025 being reiterated.



"We are also encouraged by Musk's comments that his time at DOGE will be significantly reduced starting in May, and that as a result, he plans to allocate more time to Tesla," Sheppard said.



The analyst said additional FSD rollouts like China and Europe, high volume production of Optimus and the introduction of the Tesla Semi Truck are key catalysts to watch.



"We continue to see future revenue upside from FSD, Robotaxi, Energy Storage &amp; Deployment and Optimus Bots, to be fundamental to TSLA's thesis over the long term."



The analyst said there is increasing concern in the near term given tariffs and macroeconomic uncertainties.



Piper Sandler on TSLA: First quarter financials were "weak," according to Potter.



"No slam dunks in Q1, but management said enough to keep the dream alive," Potter said.



The analyst said the most important takeaway from the first-quarter results is the timeline for robotaxis and lower-priced vehicles remaining in place.



"With &lt;2 months until the end of June, investors can look forward to some interesting catalysts in the weeks ahead."



Benchmark on TSLA: The market outlook on Tesla could be clouded given the concern of tariffs on the industry, Legg said in a new investor note.



The analyst said Robotaxis, Optimus and new products provide long-term upside.



"We believe investors should look beyond the short-term road bumps and focus on the breadth of upcoming opportunities," Legg said.



Legg said concerns on the political backlash against Tesla could be overblown and Musk allocating less time with DOGE could help the politicization of the brand to subside.



Canaccord Genuity on TSLA: Gianarikas said there are risks and the current environment surrounding Tesla "is tricky" in a new investor note.



The analyst said the opportunity for robotaxis, FSD and more new products remains the key for the company.



"We believe in the long-term vision. Tesla has multiple generational growth drivers over the long term," Gianarikas said.



The analyst said the rest of the year will be important for the future of Tesla.



&#8220;The bottom line is that for the stock to work, to get its mojo back, the growth arc must materially turn positive," the analyst noted.



TSLA Price Action: Tesla stock is up 6.38% to $253.19 on Wednesday versus a 52-week trading range of $157.40 to $488.54.



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Photo: Shutterstock

Tesla Stock Faces Demand, Political, Tariff Pressure: Why Analysts Focus On 'Multiple Generational Growth Drivers'

U.S. Treasury Secretary Scott Bessent called for a sweeping overhaul of the International Monetary Fund and World Bank, criticizing China's export-driven model and urging a global economic reset aligned with the Trump administration's redefined vision <a href="https://www.benzinga.com/news/econ-s">of the Washington Consensus.</a>



"We must make the IMF the IMF again," Bessent said Wednesday in a panel hosted by the Institute of International Finance during the the Fund&#8217;s Spring Meetings in Washington. 



Bessent criticized what he described as "mission creep" that's diverted the fund's focus toward climate, gender and social programs. He argued that such priorities have "crowded out" the IMF's core responsibility: ensuring global monetary stability.



Despite growing speculation about the future of the U.S. dollar in a shifting global order, Bessent reaffirmed the administration's commitment to a strong dollar policy.



"A strong dollar means having the right policies in place to attract capital and inspire confidence," he said, adding that exchange rates are ultimately set by markets. 



"The U.S. will remain the world's reserve currency for my lifetime—and frankly, I'm not sure anyone else wants the job."



<h3 class="wp-block-heading">IMF Policies: Back To Basics?</h3>



Bessent called for a wholesale reset of the Bretton Woods institutions, arguing both the IMF and World Bank have strayed from their founding charters. 



"These institutions have enduring value, but mission creep has knocked them off course," he said.



For the IMF, Bessent said its lending should remain temporary and tied to strong reform commitments, pointing to Argentina as an example of progress. 



Yet, he stressed that not all countries should expect support: "Sometimes, the IMF needs to say no."



He also took direct aim at the IMF's 2024 External Sector Report, calling it symptomatic of a broader reluctance to confront hard truths. 



"The IMF has been whistling past the graveyard," he said.



Bessent urged the fund to call out surplus countries, particularly China, for pursuing policies that distort global trade and currency markets. 



"China's opaque currency practices and unsustainable lending for many decades must be addressed," he said, emphasizing the need for stronger scrutiny of bilateral lending practices.



<h3 class="wp-block-heading">China: The Heart Of Global Imbalances</h3>



Bessent's sharpest criticism was reserved for Beijing. 



"China's economic model is built on exporting its way out of trouble. It's unsustainable—not just for China, but for the world," he said.



Recent data, Bessent noted, shows China tilting further away from consumption and toward industrial overcapacity. 



He accused the country of suppressing wages and encouraging excess savings, creating persistent trade imbalances and undermining global demand.



&#8220;These practices contribute to global dependence on U.S. demand to Spur growth. They also lead to a global economy that is weaker and more vulnerable,&#8221; Bessent said. 



"China must shift toward supporting its own consumers," he said. "We all know change is needed. Even China knows it."



<h3 class="wp-block-heading">World Bank: No Blank Checks</h3>



Like the IMF, Bessent said the World Bank must eliminate vague, slogan-driven initiatives and reorient around clear developmental outcomes. 



He advocated an "all-of-the-above" approach to energy financing, including lifting restrictions on nuclear and fossil fuels to boost affordable base-load generation in emerging markets.



"Energy abundance sparks economic abundance," Bessent said, encouraging the bank to move beyond climate finance targets and instead focus on sustainable growth.



He also called for firm graduation timelines for countries like China, which he argued no longer qualify as developing economies and should stop receiving concessional financing.



On Ukraine, Bessent was unequivocal: "No one who financed or supplied the Russian war machine will be eligible for funds earmarked for Ukraine's reconstruction."



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<li><a href="https://www.benzinga.com/government/regulations/25/04/44952395/us-business-activity-growth-slows-in-april-as-services-suffer-tariff-shock-markets-rally-as-trade-war-cools">Business Growth Cools, Prices Rise, And Markets Surge On Tariff Rollback Hopes</a></li>
</ul>



Photo: Shutterstock

Bessent Blasts China's Economic Model, Calls For Global Reset, IMF Refocus

Risk-on sentiment dominated Wall Street on Wednesday, as upbeat earnings reports and conciliatory messages from the Trump administration h<a href="https://www.benzinga.com/markets">elped lift investor confidence.</a>



The administration eased market fears on two major fronts that have recently weighed heavily on sentiment. On the trade front, tensions with China appeared to thaw, with reports suggesting the White House is considering reducing tariffs on certain categories of goods.



U.S. Treasury Secretary Scott Bessent added fuel to the rally, stating U.S.-China tariffs are unsustainable and will likely need to be lowered to facilitate meaningful negotiations.



Meanwhile, President Donald Trump offered an abrupt shift in tone toward Federal Reserve Chair Jerome Powell, saying he has no intention to fire him, a remark that helped calm concerns over political interference in monetary policy.



By midday in New York, the S&amp;P 500 was up by nearly 2%, though it had earlier climbed even higher. The Nasdaq 100 outperformed with a 2.5% gain, driven by strength in Magnificent Seven stocks.



Trump's pivot on Powell pushed Treasury yields lower across the curve, with the 30-year yield falling five basis points to 4.83%, after briefly topping 4.90% the previous day.



On the macro front, flash Purchasing Managers&#8217; Index surveys revealed slowing growth momentum in the U.S. economy, as the services sector decelerated sharply following the impact <a href="https://www.benzinga.com/government/regulations/25/04/44952395/us-business-activity-growth-slows-in-april-as-services-suffer-tariff-shock-markets-rally-as-trade-war-cools">of recent tariff shocks.</a>



The U.S. dollar strengthened, while gold plunged 2.6%, heading for its worst session since November.



Oil prices dropped more than 2% following speculation that OPEC+ may announce a new output hike as early as next month.



Meanwhile, Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) held steady around $93,000.



<h1 class="wp-block-heading">Wednesday&#8217;s Performance In Major U.S. Indices, ETFs</h1>



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Major Indices</td><td>Price</td><td>Chg</td><td>1-day %</td></tr><tr><td>Nasdaq 100</td><td>18,732.09</td><td>+455.68</td><td>2.5%</td></tr><tr><td>Russell 2000</td><td>1,926.45</td><td>+37.40</td><td>2.0%</td></tr><tr><td>S&amp;P 500</td><td>5,384.67</td><td>+96.91</td><td>1.8%</td></tr><tr><td>Dow Jones</td><td>39,724.87</td><td>+537.89</td><td>1.4%</td></tr></tbody></table><figcaption class="wp-element-caption">Updated at 12:35 p.m. ET</figcaption></figure>



According to&nbsp;<a href="https://www.benzinga.com/pro/?utm_source=BZprocontent&amp;t=be2bearmibe3na1">Benzinga Pro</a>&nbsp;data:



<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rose 1.9% to $537.35.</li>



<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) rose 1.4% to $397.79.</li>



<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>)&nbsp;rallied 2.7% to $456.50.</li>



<li>The&nbsp;iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) soared 2.1% to $191.47.</li>



<li>The&nbsp;Technology&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) outperformed, up 3.44%; the&nbsp;Consumer Staples&nbsp;Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) lagged, down 1.2%.</li>
</ul>



<h1 class="wp-block-heading">Wednesday&#8217;s Stock Movers</h1>



<ul>
<li>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) jumped 6.6% despite falling short on both earnings and revenue expectations, as CEO Elon Musk reassured investors by pledging to scale back his involvement with DOGE and refocus on the company.</li>
</ul>



Other stocks reacting to earnings report included: 



<ul>
<li>Intuitive Surgical Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ISRG#NASDAQ">ISRG</a>): up 2.8%</li>



<li>Chubb Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CB#NYSE">CB</a>): down 2.6%</li>



<li>Capital One Financial Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COF#NYSE">COF</a>): up 4.6%</li>



<li>Steel Dynamics Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STLD#NASDAQ">STLD</a>): up 4.7%</li>



<li>EQT Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EQT#NYSE">EQT</a>): up 3%</li>



<li>Packaging Corporation of America (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PKG#NYSE">PKG</a>): down 1.7%</li>



<li>Baker Hughes Co. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BKR#NASDAQ">BKR</a>): down 4.3%</li>



<li>Enphase Energy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ENPH#NASDAQ">ENPH</a>): down 14.4%​</li>



<li>Thermo Fisher Scientific Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TMO#NYSE">TMO</a>): down 0.5%</li>



<li>Philip Morris International Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PM#NYSE">PM</a>): up 2.6%</li>



<li>NextEra Energy, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEE#NYSE">NEE</a>): up 1%</li>



<li>Boston Scientific Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BSX#NYSE">BSX</a>): up 4.8%</li>



<li>General Dynamics Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GD#NYSE">GD</a>): down 3.4%</li>



<li>Boeing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>): up 5.7%</li>



<li>Norfolk Southern Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NSC#NYSE">NSC</a>): up 1.4%</li>



<li>CME Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CME#NASDAQ">CME</a>): down 3.8%</li>



<li>TE Connectivity Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TEL#NYSE">TEL</a>): up 2.7%</li>



<li>Amphenol Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/APH#NYSE">APH</a>): up 9.9%</li>



<li>AT&amp;T Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/T#NYSE">T</a>): up 0.8%</li>



<li>Old Dominion Freight Line, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ODFL#NASDAQ">ODFL</a>): up 1.3%</li>



<li>Westinghouse Air Brake Technologies Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WAB#NYSE">WAB</a>): up 7.2%</li>



<li>Masco Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MAS#NYSE">MAS</a>): down 2.1%</li>



<li>Avery Dennison Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AVY#NYSE">AVY</a>): down 2.4%</li>



<li>Lennox International Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LII#NYSE">LII</a>): down 8.2%</li>



<li>GE Vernova Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEV#NYSE">GEV</a>): up 5.2%</li>



<li>Teledyne Technologies Incorporated (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDY#NYSE">TDY</a>): down 1.7%</li>



<li>Otis Worldwide Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OTIS#NYSE">OTIS</a>): down 6%​</li>
</ul>



<ul>
<li>Stocks slated to report earnings after the bell include Chipotle Mexican Grill, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>), O'Reilly Automotive, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ORLY#NASDAQ">ORLY</a>), Raymond James Financial, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RJF#NYSE">RJF</a>), Molina Healthcare, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MOH#NYSE">MOH</a>), Texas Instruments Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TXN#NASDAQ">TXN</a>), FirstEnergy Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FE#NYSE">FE</a>), ServiceNow, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOW#NYSE">NOW</a>), Lam Research Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LRCX#NASDAQ">LRCX</a>), Resmed Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RMD#NYSE">RMD</a>), Discover Financial Services (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFS#NYSE">DFS</a>), International Business Machines Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBM#NYSE">IBM</a>), Newmont Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEM#NYSE">NEM</a>), Rollins Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ROL#NYSE">ROL</a>), United Rentals Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/URI#NYSE">URI</a>), Tyler Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TYL#NYSE">TYL</a>), Edwards Lifesciences Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EW#NYSE">EW</a>), Las Vegas Sands Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LVS#NYSE">LVS</a>), and Alaska Air Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALK#NYSE">ALK</a>).</li>
</ul>



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Photo: Shutterstock

ENPH

ISRG

LRCX

ODFL

ORLY

OTIS

STLD

Stocks Surge On China Tariff Hopes, Tesla Jumps, Gold Loses Shine: What's Driving Markets Wednesday?

U.S. business activity kept expanding in April, but beneath the surface, growth is losing steam, inflation is reawakening, and the once-reliable services sector is showing signs of malaise following Donald Trump&#8216;s tariff <a href="https://www.benzinga.com/topic/donald-trump">announcements earlier this month.</a>



In flash data released Wednesday by S&amp;P Global, a slowdown in service sector activity dragged the U.S. Composite Purchasing Managers' Index (PMI) to 51.2 in April, down from 53.5 in March. While still above the 50 mark that separates expansion from contraction, it's the weakest reading since December 2023.



The flash Services PMI dropped to 51.4 from 54.4, marking the second-slowest pace of growth in the past year, and missing estimates of 52.5. 



The Manufacturing PMI slightly improved to 50.7, up from 50.2, outpacing expectations of a drop to 49.1.



Chris Williamson, chief business economist at S&amp;P Global Market Intelligence, said the figures signal that U.S. output is expanding at a sluggish annualized pace of just 1.0%. 



He added that the manufacturing sector is "broadly stagnating," with the dampening effects of economic uncertainty and weakening exports offsetting any tailwind from tariffs.



<h3 class="wp-block-heading">Tariffs Drive Prices Higher</h3>



Average prices charged for goods and services rose at the fastest pace in 13 months in April, driven by a 29-month high in manufacturing price inflation. Input costs in manufacturing surged at a rate unseen since August 2022, largely due to tariffs, rising import prices and a weaker U.S. dollar.



In services, prices also climbed at a quicker pace, the fastest in seven months, as firms passed on rising costs tied to labor and raw materials. Although the rate of increase in service input costs slowed from March, it remained the second-highest in six months.



"Tariffs are being cited as the key cause of higher prices," Williamson said, adding that these inflationary pressures "will inevitably feed through to higher consumer inflation."



&#8220;This is creating a headache for a central bank which is coming under increasing pressure to shore up a weakening economy just as inflation looks set to rise,&#8221; he added. 



<h3 class="wp-block-heading">Market Cheers Possible Tariff Relief</h3>



Despite the downbeat economic data, Wall Street responded with optimism on Wednesday after reports emerged suggesting the Trump administration may ease tariffs on Chinese imports as well as confirmation by the president that he won&#8217;t fire Fed Chair Jerome Powell.



According to a Wall Street Journal report, officials are considering slashing existing duties by up to half, in some cases, and adopting a tiered approach to Chinese imports.



The proposed structure would assign a 35% levy on non-strategic items and at least 100% on products deemed crucial to U.S. national interests, phased in over a five-year period.



A senior White House official said the new policy could reduce the most aggressive tariffs to a range of 50%-65%, aiming to stabilize relations with Beijing and reduce pressure on global supply chains.



The S&amp;P 500 index – tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) – opened over 3% higher, with Nasdaq 100 tech stocks rallying 3.7% and the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) outperforming with a 4% gain.



Gold prices slid as demand for safe-haven assets weakened, with the SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) dropping 3.4%—on track for its worst day since June 2024.



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Photo: Shutterstock

Business Growth Cools, Prices Rise, And Markets Surge On Tariff Rollback Hopes

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