• As painful as it seems now, keep in mind yesterday does not rank in the top 20 worst one-day Nasdaq drawdowns: Amongst the largest fallers across markets were companies exposed to Vietnam, with Wayfair (W -25.73%) closing over 25% lower. Fool analyst Jason Moser reasoned "there's no question the company would be well-served to diversify its supply chain." Stock Advisor recommendation RH (RH -39.86%) fell by 40%, with 72% of products currently sourced from Asia, compounded by disappointing earnings.
• Trump is open to "phenomenal" offers: The President indicated the tariffs provide him with great power to negotiate, with nothing off the table from here. Canadian PM Mark Carney has already confirmed his country will match the 25% car import tariff back on U.S. imports.

McDonald's (MCD 2.17%) managed to close the day up over 2%, along with other fast food chains, as the amount of domestically sourced produce could insulate the stocks from tariff hits.

• About 80% of key food categories imported from Mexico & Canada are USMCA compliant: The current exemption from duties that are United States/Mexico/Canada Agreement (USMCA) approved means McDonald's shouldn't take an immediate hit to products brought over the border.
• Recession fears could boost defensive stocks: Other related companies that finished in the green yesterday include Yum! Brands (YUM 2.14%), which owns KFC, and Burger King owner Restaurant Brands International (QSR 1.30%). If consumers tighten their belts with discretionary spending, these budget chains could outperform.

3. MAG7 Falls Out of Heaven

Matt Argersinger, Lead Investor on Dividend Investor

Under the Radar

Things could get much worse as yesterday's announced tariffs work their way through the global economy. Keep in mind, however, that quality divided-paying companies rarely cut or suspend their payouts in times like this. Even through the global financial crisis, the overall level of dividends paid by U.S. corporations increased. That makes dividend reinvestment especially powerful right now, automatically adding to your position in great businesses at lower prices. Turn it on!