The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.

1154 GMT - Regardless of what comes of high-level negotiations to ease trade tensions, the world is likely to continue moving toward a more protectionist environment, reckons National Bank of Canada's Angelo Katsoras. And to navigate that, investors will need to consider geopolitical fault lines, government priorities and protectionist policies that can impede market access or lead to higher operating costs. "Assessing the willingness of governments to support key sectors has become a critical part of investment analysis," Katsoras says. That includes the indirect effects of tariffs and moves by major countries and regions to repatriate production. China's reduced access to American consumers could encourage its companies to export more products to elsewhere, exacerbating trade tensions, while smaller countries must strive to maintain access to larger nationals vital to their economic future, the analyst says. (robb.stewart@wsj.com; @RobbMStewart)

1146 GMT - As the bulk of the retail sector reels from the recent U.S. tariff blitz, analysts at Citi see silver linings for Dollar Tree and Dollar General. Citi upgrades Dollar Tree to buy from neutral, saying that while roughly half of the discount retailer's products are subject to significantly higher tariffs, the tariff regime gives it cover to further expand price points to $1.50/$1.75 from $1.25. Dollar General, meanwhile, doesn't have the same tariff risk as most other retailer, with only about 10% of sales affected, and may benefit from consumers trading down, says Citi, which upgrades the stock to neutral from sell. Dollar Tree up 0.7% premarket to $68.02, Dollar General up 0.3% to $92.92. (colin.kellaher@wsj.com)

1143 GMT - Apple won't be able to make iPhones in the U.S. and keep their price points anywhere close to the $1,000 mark that currently exists for U.S. customers, Wedbush analysts say in a research note. It would take an estimated 3 years and $30 billion to move just 10% of Apple's supply chain from Asia to the U.S., with major disruptions along the way, the analysts say. "If consumers want a $3,500 iPhone, we should make them in New Jersey or Texas or another state," they say. "The concept of making iPhones in the U.S. is a non-starter in our view at $1,000." The analysts say it's hard to comprehend how dramatically onshoring production would hike iPhone prices and that the near-term impact on gross margin from President Trump's tariff war "could be mind boggling." (dean.seal@wsj.com)

1139 GMT - Canadian stocks are poised for more selling. Scotiabank says in a report that the "selloff has only started to be more disorderly/more indiscriminate since April 2, dubbed 'Liberation Day' by President Trump." The analysts say that with international equities selling off significantly overnight, and with US equity futures pointing toward another tough session today, "extreme oversold conditions should be reached on most indicators we track." They add that, "there are still lots of unknowns that could weigh further on equities." (adriano.marchese@wsj.com)

1132 GMT - With most product sourced in Asia, apparel companies will be hard hit by the sweeping new U.S. tariff plan, say analysts at Citi, who cut their price targets and FY25-26 earnings estimates for Colombia Sportswear, Levi Strauss, Oxford Industries, PVH, Ralph Lauren and VF Corp. Citi says it doesn't think the apparel makers have enough pricing power to offset an assumed 30% blended tariff rate, and that attempts to raise prices will generally result in weaker demand. Citi downgrades VF to neutral from buy, citing concerns about the company's ability to turn its Vans brand around in the current environment. VF down 4.8% premarket to $11. (colin.kellaher@wsj.com)

1127 GMT - Gold futures rise in volatile trading. Futures are up 0.7% at $3,056.50 a troy ounce, having traded as high as $3,084.40/oz and as low as $2,985/oz earlier in the session. The precious metal has seen significant swings as traders and funds are forced to liquidate holdings to meet margin calls elsewhere in the market, SP Angel analysts say in a note. The Trump administration is holding firm on its tariff position despite widespread market turmoil. While it is normal for gold to fall in the event of a market collapse, it is always the first instrument to rebound as investors move out of stocks, SP Angel says. Gold will prove to be the go-to store of value as investors work out which currencies and jurisdictions to move their funds to, analysts add. (joseph.hoppe@wsj.com)

1114 GMT - Tesla and Apple will be among the top U.S. companies most badly damaged by President Trump's tariff campaign, Wedbush analysts say in a pair of research notes. For Tesla, the resulting trade war is a double whammy, they say. The EV maker gets plenty of parts and batteries from sources overseas, so costs will go up, sending prices higher and eroding demand, the analysts say. China is also a key region for Tesla, and Trump's tariffs have created a backlash against Elon Musk there that will drive customers to BYD and other Chinese competitors, they say. Apple meanwhile relies on China for 90% of its iPhone production, so a 54% tariff of Chinese imports, along with a 32% levy on imports from Taiwan, would be devastating to Apple's cost structure, the analysts say. Tesla is off 4% premarket and Apple sinks 3%.(dean.seal@wsj.com)

1108 GMT - Supporting the renewal of Generali's board seems like the best option to ensure strategic and management continuity, proxy advisory firm Institutional Shareholder Services says in a report. ISS recommends that shareholders vote for the slate that keeps most of the Italian insurer's directors on the 13-member board at its upcoming shareholder meeting on April 24 given that the company has been performing well recently. Due to a new Italian law, Generali hasn't presented its own list of candidates and three lists have been put forward by shareholders: that of largest shareholder Mediobanca, which ISS backs, one with only six nominees from Caltagirone--who has been at odds with management--and a third from institutional investors coordinated by Assogestioni. "Supporting alternative slates might entail significant risk of ungovernability and strategic disruption," ISS says. (elena.vardon@wsj.com)

1107 GMT - Jamie Dimon warns that fraying military and economic alliances in the Western world would lead to a weaker U.S. over time. "Keeping our alliances together, both militarily and economically, is essential," he says in annual shareholder letter. "The opposite is precisely what our adversaries want." He says fragmentation in Europe would create a landscape much like the one right before World War II, with each nation needing to seek out its own relationships. This could result in closer ties to countries like Russian and Iran for energy and China for trade, essentially creating vassal states. "Economics is the longtime glue and America First is fine, as long as it doesn't end up being America alone." (paul.ziobro@wsj.com)

1102 GMT - German industrial production, which contracted 1.3% on month in February, erased some of the gains made so far this year. Tariffs mean huge risks are looming, says HSBC economist Stefan Schilbe in a note. New orders have failed to show momentum, indicating a continued contraction in output, while the recent stabilization of leading indicators, such as the manufacturing PMI and the Ifo business expectations for manufacturing, don't reflect the latest announcements on U.S. tariffs, he says. The surge in trade uncertainty together with a worsening of financial-market conditions will likely sour corporate and consumer sentiment, Schilbe says. "Key German manufacturing sectors including machinery and equipment and autos are therefore at risk of a renewed downturn." (edward.frankl@wsj.com)

1059 GMT - Jamie Dimon's closely-watched annual shareholder letter lands at a pivotal moment for global markets. While the JP Morgan CEO notes that uncertainty rules the day on a number of matters, one thing is clear: slower growth is ahead. "Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth." He lists the various questions still up in the air, including potential retaliatory actions and the impact on confidence, investment and corporate profits. Another thing he feels certain of is a quick resolution would be good all around. "The quicker this issue is resolved, the better because some of the negative effects increase cumulatively over time and would be hard to reverse." (paul.ziobro@wsj.com)

1045 GMT - Capgemini might be affected by U.S. tariffs, UBS analysts write in a note. The French consulting and technology group generated 28% of its sales from North America last year and the impact of U.S. federal actions and regulations is negligible, the analysts say. However, the company serves many industrial customers in the U.S. and elsewhere that might be affected by tariffs, they say. "Group-wide 27% of sales last year came from manufacturing, with around 8% each in automotive and aerospace," they say. The Swiss bank expects a 2.7% organic decline in sales for the first quarter and a 1.9% decline for the first half before a return to growth in second half. Share fall 4.8% to 122.15 euros. (najat.kantouar@wsj.com)

(END) Dow Jones Newswires

April 07, 2025 07:54 ET (11:54 GMT)

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