Market Overview

The stock market started the week with gains. The S&P 500 experienced an early surge, trading up as much as 1.8%. However, it settled 0.8% higher than Friday's close after briefly turning negative and rebounding from its session low around midday.

Tariff Exemptions and Market Reactions

• Buying interest was fueled by relief that smartphones, laptops, semiconductors, solar cells, and other electronic items will be exempt from the 10% global tariffs and the 125% tariff rate on imports from China.
• The market's earlier gains were partly offset by concerns that imports from China are still subject to the 20% fentanyl-related tariff.
• Commerce Secretary Lutnick clarified that the exemptions are temporary, and President Trump announced plans to set a tariff rate for semiconductors soon.

Equities Movement

The stock market's fluctuations were also influenced by volatile trading in mega-cap stocks. NVIDIA (NVDA) was a key player, trading up as much as 3.0% at its high and down as much as 1.7% at its low.

S&P 500 Sector Performance

• Ten of the 11 S&P 500 sectors closed in the green.
• Seven sectors finished more than 1.0% higher, including the financial sector, which benefited from Goldman Sachs (GS) reporting above-consensus quarterly results.
• Rate-sensitive sectors like real estate (+2.2%) and utilities (+1.8%) led the gains as market rates declined.

Interest Rates

• The 10-year yield dropped 13 basis points to 4.36%.
• The 2-year yield decreased by 12 basis points to 3.83%.

Upcoming Economic Data

No significant U.S. economic data was released today. However, the week will feature:

• March Retail Sales on Wednesday.
• March Housing Permits and Building Permits on Thursday.
• An ECB meeting on Thursday, where a 25-basis point rate cut is anticipated.

Year-to-Date Index Performance

• Dow Jones Industrial Average: -4.8% YTD
• S&P 500: -8.1% YTD
• S&P Midcap 400: -11.7% YTD
• Nasdaq Composite: -12.8% YTD
• Russell 2000: -15.7% YTD

Looking Ahead

On Tuesday, market participants will receive the following data:

Guru Stock Picks

Robert Olstein has made the following transactions:

• Reduce in DE by 33.33%
• Sold out in MA
• Add in GS by 6.67%
• New position in PEP

Yacktman Fund has made the following transactions:

• Reduce in EBAY by 8%
• Sold out in ORCL

Yacktman Focused Fund has made the following transactions:

• Reduce in COP by 45.65%
• Sold out in STT

Today's News

Lowe's Companies (LOW, Financial) has announced a significant acquisition, agreeing to purchase Artisan Design Group for $1.325 billion. This deal, set to close in the second quarter of 2025, will be financed with cash on hand. Artisan Design Group, a leading provider of interior surface finishes, is expected to expand Lowe's Pro offering within a fragmented $50 billion market. This strategic move aims to enhance Lowe's market presence and diversify its distribution channels.

Apple (AAPL, Financial) has made strides in artificial intelligence by deciding to analyze user data stored on devices to train its AI models. This decision led to a 3.5% rise in Apple shares. The company plans to use this data, while ensuring privacy, to improve its AI capabilities and compete with other tech giants like OpenAI. This development marks a significant step in Apple's AI strategy and could potentially enhance its service offerings.

A group of Republican senators has urged the Trump administration to remove the "AI Diffusion Rule" implemented by the Biden administration. They argue that this rule could hinder the U.S.'s leadership in AI. The senators emphasize the importance of maintaining American dominance in technology sectors such as semiconductor design and AI, urging immediate action to prevent potential damage to innovation and competitiveness.

Applied Digital (APLD, Financial) reported a Q3 Non-GAAP EPS of -$0.08, beating expectations by $0.02, while revenue of $52.92M missed by $9.99M. Despite the earnings beat, the company's shares traded lower due to widened losses. Applied Digital continues to face challenges, including delays in signing customers, which have impacted its financial performance.

Howard Hughes Holdings (HHH, Financial) has extended its standstill agreement with Pershing Square Capital Management, led by Bill Ackman (Trades, Portfolio). This extension aims to facilitate ongoing discussions about potential strategic alternatives. While the outcome of these talks remains uncertain, the extension indicates continued interest in exploring new opportunities for Howard Hughes.

Philip Morris International (PM, Financial) has been a standout performer in the tobacco sector, with a 30% year-to-date rally. Bank of America has raised its price target for Philip Morris to $175, citing the company's strong operational performance and positive growth outlook. Despite market volatility, Philip Morris remains an attractive defensive stock with growth potential.

GSK (GSK, Financial) is poised for a potential positive surprise as the CDC Advisory Committee considers expanding the recommendation for its RSV vaccine, Arexvy. The committee's decision could broaden the vaccine's use, potentially boosting GSK's market position. Analysts anticipate a favorable outcome, which could enhance GSK's revenue prospects.

Webull Corp. (BULL, Financial) shares soared 393% after its public debut through a SPAC merger. The online brokerage platform's stock surged as investors responded positively to its market entry. The company has secured non-redemption agreements with investors, providing additional shares as incentives, which has contributed to the stock's impressive performance.

Pfizer (PFE, Financial) announced the discontinuation of its oral obesity drug, danuglipron, due to potential liver injury concerns. This decision has positively impacted other weight loss drug developers like Viking Therapeutics (VKTX, Financial) and Structure Therapeutics (GPCR, Financial), as they now have an opportunity to capture market share in the oral obesity drug segment.

Palantir Technologies (PLTR, Financial) has secured a significant deal with NATO for its AI-powered military system, Maven Smart System. This contract highlights Palantir's growing influence in the defense sector and positions the company for future government contracts. Palantir's shares rose 6% in response to this development, reflecting investor confidence in its strategic direction.

GuruFocus Stock Analysis

• MP Materials Stock Hits 52-Week High as Rare Earth Supply Chain Gains Attention by Faizan Farooque
• Palantir's NATO Win Puts It at Center of Global AI Defense Race, Says Wedbush by Muslim Farooque
• Tesla Pulls Plug on Model S and X Orders in China as Tariff War Heats Up by Faizan Farooque
• Webull Stock Surges Over 300% After SPAC Merger Completion and Nasdaq Debut by Faizan Farooque
• Report: Alphabet and Nvidia Bet Big on OpenAI Co-Founder's New AI Startup Valued at $32 Billion by Faizan Farooque