Early Look

Wednesday, April 2, 2025

U.S. futures are looking lower ahead of so called “Liberation Day” for America by President Trump, who is readying broad “reciprocal” duties on all U.S. trade partners this week, which already included plans to impose 25% tariffs on all foreign-made vehicles this week. We are expected to get full details of the trade restrictions later this afternoon with an announcement at 4:00 pm EST at the Rose Garden at the White House. The President told reporters on Sunday that he plans to start the like-for-like push with “all countries.” Meanwhile, his aides have reportedly drafted a proposal to impose a 20% tariff on most imports. In other news this morning, Wall Street awaits monthly data on ADP private payrolls at 8:15 AM (with monthly nonfarm payroll data expected this Friday). But while important, it appears the market remains on edge/concerned ahead of the trade policy headlines later this afternoon.

In Asian markets, The Nikkei Index climbed 101 points to 35,725, the Shanghai Index edged higher 1 point to 3,350, and the Hang Seng Index was down slightly, falling -4 points to 23,202. In Europe, the German DAX is lower by -263 points to 22,276, while the FTSE 100 is down -69 points to 8,565. U.S. Treasury yields are marginally higher while eurozone government bond yields edge lower in midday European trade as bond markets await President Trump’s tariff announcements due later in the day.

Heading into this afternoons reciprocal tariff policy announcement, this is what we know, or has taken effect so far: 1) a 25% US tariff on imports of steel and aluminum from all countries took effect on Wednesday, March 12; 2) The EU has responded to those metals duties with counter-tariffs on $28 billion in US goods from April (some of which was delayed to mid-April including a 50% duty on American whiskey, which had prompted Trump to threaten a 200% tariff on European spirits); 3) a 25% across-the-board tariffs on Mexico and Canda went into effect on Tuesday, March 4 amid the ongoing fentanyl crisis crossing US borders; 4) Trump enacted new blanket tariffs of around 20% on China on top of existing 10% duties that went into place during Trump’s first term. China has responded with up to 15% duties on US farm goods; 5) Trump said the US will impose a “secondary tariff” on Venezuela, to take effect on April 2 — any country that buys oil or gas from Venezuela would face a 25% tariff when trading with the US.

• The Dow Jones Industrial Average slipped -11.80 points, or 0.03%, to 41,989.96
• The Nasdaq Composite gained 150.60 points, or 0.87%, to 17,449.89
• The Russell 2000 Index edged higher 0.33 points, or 0.02% to 2,012.24

• 8:15 AM ET ADP Private Payrolls for March…est. +115K (prior +77K)
• 10:00 AM ET                Factory Orders M/M for February…est. +0.5% (prior +1.7%)
• 10:00 AM ET                Durables Goods Orders M/M for February
• 10:30 AM ET                Weekly DOE Inventory Data

• Earnings After the Close: BSET CLIR FC PENG RGP RH

• Tesla (TSLA) sold 78,828 China-made electric vehicles in March, down 11.5% from a year earlier, data from the China Passenger Car Association (CPCA) showed on Wednesday. Deliveries of China-made Model 3 and Model Y vehicles increased 156.9% from the previous month.

• BHP Group (BHP) has considered spinning off its Australian iron ore and coal divisions as part of a medium-term growth strategy, three sources with knowledge of the matter told Reuters.
• Consolidated Edison (ED) files debt securities shelf.
• Scotts Miracle-Gro (SMG) upgraded to Buy from Hold at Truist.

• Charles Schwab (SCHW) upgraded to Buy from Neutral at Citigroup and raise tgt to $102 from $85 saying they see potential for an improving net new assets story as Schwab shifts to offense with the Ameritrade integrations over and investment spending to accelerate growth ramps.
• SmartStop Self Storage REIT (SMA) prices public offering of 27M shares at $30.00 per share.
• Visa (V) has offered Apple (AAPL) a roughly $100M payment to get the tech giant’s credit card, part of a battle between the country’s biggest payment networks for the splashy Apple card, the WSJ reported late Tuesday.

• Edgewise Therapeutics (EWTX) announced top-line data of EDG-7500 from the Phase 2 CIRRUS-HCM four-week trial in participants with obstructive or nonobstructive HCM. EDG-7500 is a novel oral, selective, cardiac sarcomere modulator, specifically designed to slow early contraction velocity and address impaired cardiac relaxation associated with HCM without impacting systolic function.
• Eli Lilly (LLY) stated last night it has no affiliation with Hims & Hers (HIMS) and that Zepbound (tirzepatide) can be prescribed by any licensed healthcare professional.
• Enovis (ENOV) announced the appointment of Damien McDonald as CEO, effective May 12. McDonald will also join the Enovis Board of Directors following the conclusion of the company’s 2025 Annual Meeting of Stockholders on May 21.

• nCino Inc (NCNO) authorizes $100M stock repurchase program; Q4 adj EPS ($0.09) vs est. $0.19 on revs $141.4Mm vs est. $140.84Mm, gr mgn 60%; guides Q1 revs $138.75-140.75Mm vs est. $145.47Mm and adj EPS $0.15-0.16 vs est. $0.21.
• RumbleON Inc (RMBL) terminates CFO Tiffany Kice effective April 2, 2025, and names Michael Quartieri to serve as interim CFO.