Early Look

Monday, April 14, 2025

US stock futures have broadly moved higher, led by shares of technology stocks (AAPL) after President Trump’s administration exempted items from reciprocal tariffs including smartphones, storage devices and some other electronics.  However, Trump posted on Sunday that there was no tariff exception announced on Friday and that these products are subject to the existing 20% fentanyl tariffs and are just moving to a different tariff bucket. The US dollar adds to last week’s weakness, falling another -0.6% back below 100 for the dollar index (DXY), while Treasury yields fall to lows (4.43%) overnight after a wild week as traders assess unexpected U.S. tariff exemptions. In Asian markets, The Nikkei Index advanced 396 points of 1.18% to 33,982, the Shanghai Index gained 24 points to 0.76% to 3,262, and the Hang Seng Index jumped 502 points or 2.4% to settle at 21,17. In Europe, the German DAX is surging over 500 points or 2.48% to 20,879, while the FTSE 100 is up 148 points to 8,112.

As for last week in equity markets, the S&P 500 gained 5.7%, the Nasdaq climbed 7.29%, and the Dow climbed 4.95%, all thanks to the massive market gains last Wednesday after the President delayed global tariffs by 90-days. Stocks got a bump on Friday after Boston Fed President Susan Collins said in an interview with the Financial Times that the Federal Reserve “would absolutely be prepared” to help stabilize financial markets if conditions become disorderly. Stocks are continuing their gains over the weekend after several reports coming out of Washington DC with a mixed picture; see below.

Much confusion on Sunday coming out of the White House as President Donald Trump denied that there was a tariff “exception” for certain electronics announced Friday, saying in a post on Truth Social Sunday that these products are still subject to existing tariffs of 20% and that the administration is looking into tariffs on the whole supply chain for electronics. “These products are subject to the existing 20% Fentanyl Tariffs, and they are just moving to a different Tariff ‘bucket,’” Trump says. Upcoming national security tariff investigations will look at semiconductors and the “whole electronics supply chain,” Trump adds. Trump says nobody is “off the hook” for unfair trade, “especially not China.” President Trump’s tariff exemption for iPhones and other Chinese-made electronics may only be temporary, Commerce Secretary Howard Lutnick said Sunday — just two days after the White House announced the change.

• The Dow Jones Industrial Average rose 619.05 points, or 1.56%, to 40,212.71
• The Nasdaq Composite jumped 337.14 points, or 2.06%, to 16,724.46
• The Russell 2000 Index advanced 28.81 points, or 1.57% to 1,860.20

• 7:40 PM EST                       Fed’s Bostic Speaks in Fireside Chat on Policy

• Earnings After the Close: APLD BSEM FBK PNFP SKIL

• China’s President Xi Jinping on Monday called for stronger ties with Vietnam on trade and supply chains amid disruptions caused by U.S. tariffs, as he attended in Hanoi the signing of dozens of cooperation agreements between the two Communist-run nations – Reuters.

• Chewy Inc. (CHWY) mentioned positively in Barron’s saying as spending on pets continues to rise, the online retailer’s profit margins are projected to expand and set the stage for long-term earnings growth and a potential rebound in the stock.
• Hilton Hotels (HLT), Marriot (MAR) both downgraded to Neutral from Buy at Goldman Sachs in lodging and Hyatt (H) downgraded to Sell from neutral citing the increasingly uncertain demand backdrop.
• Stellantis (STLA) was downgraded to Neutral from Buy at UBS.

• Edison International (EIX) said it plans to bury more than 150 miles of electrical lines at a cost of as much as $925 million as part of a massive rebuilding effort in Los Angeles-area neighborhoods devastated by January wildfires.
• Element Solutions (ESI) upgraded to Buy from Hold at Truist but lower tgt to $24 from $28.
• Freeport-McMoRan (FCX) was upgraded to Buy from Hold at HSBC.
• The Metals Company (TMC) and MP Materials (MP) shares rise after a report Donald Trump plans to stockpile deep-sea critical metals to counter China; US drafting order to collect ‘nodules’ from Pacific seabed for minerals used in battery supply chains. https://tinyurl.com/2dup7f7z

• M&T Bank (MTB) Q1 EPS $3.32 vs. consensus $3.40; Q1 CET1 capital ratio 11.5%; Q1 net charge-offs .34%, Q1 provision for credit losses $130M and Q1 tangible equity per share $111.13; Guides Net interest income FTE $7.05B to $7.15B, saw $7.1B to $7.2B, EST $7.1B and lowers average loans guidance.

• Exact Sciences Corp. (EXAS) announced the publication of a comprehensive review in JAMA Oncology that strengthens the evidence supporting the Oncotype DX Breast Recurrence Score test. The peer-reviewed article titled, “Genomic Assays for Breast Cancer in Diverse Populations: Prognostic and Predictive Insights,” affirms that the Oncotype DX test provides accurate and reliable information to help guide breast cancer treatment decisions across all racial and ethnic groups.
• Icon (ICLR) was downgraded to Hold from Buy at TD Cowen and cut tgt to $157 from $254.
• Ideaya Biosciences (IDYA) announced an FDA Type D meeting on the Phase 3 registrational trial design that will assess the safety and efficacy of darovasertib for potential regulatory approval as neoadjuvant therapy for primary uveal melanoma.

• Apple (AAPL) shares rise after President Donald Trump’s administration exempted phones, computers, and popular electronics from its so-called reciprocal tariffs. However, following the exemptions, Trump pledged he will still apply levies to popular consumer electronics in the long run.
• Intel (INTC) is near a deal to sell a stake in its programmable chip’s unit Altera to Silver Lake Management, Bloomberg reported.
• Warner Bros Discovery (WBD) has decided not to sell Polish broadcaster TVN, it said