Key Points
-
Both the US and China are granting exemptions for key sectors as tariffs start to bite companies.
-
President Donald Trump is expected to announce tariff relief for automakers.
-
Earnings and macros have been mixed, so the stock market is still flat.
-
Your future is too important to leave to chance. See if you’re on track for retirement by taking this simple quiz and matching with a fiduciary financial advisor serving your area. It only takes a moment, and is totally free. Click here to begin. (sponsor)
The stock market hasn’t made any big moves today despite more passive action on tariffs by the administration as earnings reports have come in mixed and many firms are starting to feel the effects of the trade war. Inventories could run out soon and force manufacturers to increase prices significantly or take a hit to their bottom line.
Both China and the United States have waived tariffs on more important sectors to protect their economies. President Donald Trump is expected to sign an Executive Order on auto tariffs later today, according to White House Press Secretary Karoline Leavitt. On the other hand, China has waived tariffs on ethane imports from the US. China’s 125% tariffs applied here previously, but this waiver will let Chinese firms import US ethane for petrochemical production.
Here’s a market update as of 10:45 A.M (ET) today.
- The S&P 500 is up 2.5 points, or 0.09%.
- The Nasdaq Composite is up 8.5 points, or 0.04%.
- The Dow Jones Industrial Average is up 159.11 points, or 0.4%.
Macros
Macro figures have come in more on the bearish side, but it isn’t bad enough to send the stock market tumbling. Still, investors are fearful as this may mean the economy is starting to slow down ahead of a downturn. All eyes are on the GDP report coming out this Wednesday. GDP is expected to slow down significantly due to the impact of tariffs. Two straight quarters of a GDP decline usually indicate a recession, so a negative GDP print could send markets tumbling tomorrow, whereas a positive report will reassure investors.
- JOLTS Job Openings came in at 7.2 million vs. the expected 7.5 million. The lower print means that there are lower job openings and the labor market could be loosening.
- Consumer Confidence came in at 86 vs. 88 expected.
- US Advance Goods Trade Deficit at $161.99 billion vs. the $145 billion forecast.
- US Wholesale Inventories month-over-month at 0.5% vs. the 0.6% forecast.
- US Redbook (measure of comparable-store sales growth in the U.S. retail sector) at 6.1%, down from 7.4% previously.
- US Caseshiller (measures the changes in the value of residential single-family homes in the U.S.) at 4.5% vs. the 4.7% forecast.
- US House Price Index at 3.9% year–over-year, down from 4.8% previously.
What Scott Bessent Said
United States Secretary of the Treasury Scott Bessent made the following notable comments today:
- “We want to see internet tax in EU removed.”
- “We need precision manufacturing in US, not necessarily textile industry.”
- “We won’t detail auto tariff relief.”
“Individual investors trust Trump.” - “The tax bill is moving forward.”
- “Governments want to have a framework of a trade deal before going into elections.”
- “We could see some South Korea deal contours coming together.”
- “We had substantial talks with Japan.”
- “We could see some India announcements.”
- “Trump has met with domestic and foreign auto producers.”
- “The aperature of uncertainty will be narrowing.”
- “There is a good chance we’ll see income tax relief in tax bill”
- “We want long term tariff revenue and deals.”
Other Assets
- Gold Futures are down 0.72% to $3,323.
- Crude Oil Futures are down 2.4%.
- Natural Gas Futures are up 0.48% to $3.3.
- Bitcoin is up 0.2% to $95,233.
The image featured at the top of this post is ©Openverse.