OPENING CALL

Stock futures climbed despite continuing unease over the impact of Trump's sweeping tariffs plans.

China threatened to retaliate further against the U.S. if Trump carries out his threat to raise the tariff on Chinese goods by an additional 50%.

The magnitude of the selloff in global market has brought the Federal Reserve into focus. Swissquote Bank said the central bank is trapped between a rock and a hard place with above-target inflation on one side, and rising recession risks on the other.

Market consensus is shifting toward the possibility of four rate cuts this year--double the number expected before Liberation Day.

Stocks to Watch

Apple rose 1.6% after closing down 3.7% on Monday. The Wall Street Journal reported Monday that it plans to send more iPhones to the U.S. from India.

Broadcom rose 3.5% after its board authorized a new $10 billion stock buyback.

Levi Strauss rose 11% after it reported earnings that beat analysts' estimates.

Pacira BioSciences said it entered a settlement regarding patent litigation for Exparel, a local anesthetic administered at the time of surgery. Shares climbed 19%.

Marvell Technology rose 3.2% after the company said it would sell its automotive ethernet business to Infineon Technologies.

Medicare insurers climbed after the Trump administration said it plans to substantially increase payment rates next year. CVS Health rose 6.5%, while shares of UnitedHealth Group were up 6%.

Spire Global reached an agreement with Kpler regarding a disputed deal for the former company's maritime business. Shares jumped 36%.

Super Micro Computer was up 2.9%.

Tesla was up 1.8%.

Watch For:

Fed's Daly speaks at Brigham Young University event

Today's Top Headlines/Must Reads:

- How Mexico Emerged From Tariff Broadside With an Edge Over Asia

- Americans Have $35 Trillion in Housing Wealth-and It's Costing Them

- Many U.S. Companies Plan to Keep China Ties, Survey Finds

MARKET WRAPS

Forex:

The dollar fell, remaining under pressure.

The currency could weaken over the long term after eventual Fed rate cuts and the potential for equity-market outflows, PGIM Fixed Income said.

PGIM sees a slowing U.S. economy increasing the deficit further and potentially shrinking the capacity for fiscal stimulus.

Meanwhile the Fed could be compelled to address the fallout, abandoning its meeting-to-meeting, data-dependent approach, PGIM added.

The euro rose against the dollar.

"The euro's high liquidity character continues to shield it from the much bigger volatility," ING said.

However, UBS said the currency faced volatility until there was more clarity over the EU's plans in response to the U.S. tarrifs.

Sterling fell to an eight-month low against the euro, extending losses.

The yen and the Swiss franc could strengthen against the dollar, acting as safe havens in a period of uncertainty, Lombard Odier said.

The Canadian dollar rose, remaining supported after Canada avoided fresh U.S. import levies, though the currency could soften as markets adapt to the full implications of tariffs, Monex Europe said.

Bonds:

Treasurys extended Monday's selloff with yields rising further.

"But uncertainty lingers, keeping risk appetite at bay and markets positioned for more central bank [interest rate] cuts," ING said.

CreditSights said the U.S. credit market has seen a large rise in potential 'fallen angel' candidates, or bonds that are at risk of being downgraded from investment-grade status to junk status .

Energy:

Oil prices edged lower after plunging to a four-year low in the previous session amid growing concerns that U.S. tariffs might lead to a global recession and hurt demand.

"The prospects of weaker oil demand as a result of a costly trade war has spooked traders, with Brent crude down nearly 14% since Trump announced the tariffs," ANZ said, noting that risks remain skewed to the downside.

Metals:

Gold futures jumped, recouping ground lost in sharp selloffs in the prior two sessions as trade and tariff uncertainty continues to boost gold's appeal, ING said.

The precious metal was still 4.2% lower on week.

Further support for gold prices comes from central-bank demand as geopolitical tensions and uncertainty push them to increase safe-haven asset holdings, ING added.

TODAY'S TOP HEADLINES

BYD Guides for Strong Earnings in Move to Shore Up Market Confidence

BYD forecast strong first-quarter earnings in rare early guidance, a move aimed at restoring confidence among investors after U.S. President Trump's reciprocal tariff plan sent China's stock markets tumbling to their worst day since the pandemic.

China's biggest automaker said Tuesday that its quarterly net profit likely rose to between 8.5 billion yuan and 10 billion yuan, equivalent to $1.16 billion-$1.37 billion, up sharply from 4.57 billion yuan a year earlier. That compared with a consensus estimate of 7.72 billion yuan in a Visible Alpha poll of analysts.

Apple Users Rush to Upgrade iPhones Ahead of Potential Tariffs-Related Price Hikes

When President Trump announced robust tariffs last Wednesday that triggered a stock selloff, Joel Burke decided to head to the Apple store.

Burke, a 32-year-old policy professional in Washington, D.C., is among the throngs of U.S. consumers who have rushed to buy new iPhones over the past week, expecting that new tariffs will prompt Apple to raise prices.

Amazon Buying TikTok Is a Long Shot. It Would Also Be a Game Changer.

There's 71 more days to make a deal for TikTok after the White House last week extended, yet again, the deadline for ByteDance to divest the service to a company from the U.S. or another country deemed friendly to the U.S.

"We do not want TikTok to 'go dark," President Donald Trump said late last week on Truth Social. "We look forward to working with TikTok and China to close the Deal. Thank you for your attention to this matter!"

CEOs Break Silence on Trump Trade War

The reality of a global trade war is starting to push corporate bosses to do what they tried for months to avoid: criticize President Trump's policies.

In the days after Trump announced the sweeping levies last week, chief executives stuck to privately channeling their frustrations to trade groups and lobbyists. Some hastily arranged new meetings on trade with Trump officials, sometimes receiving unsatisfying answers, executives and corporate advisers say.

EU's Von Der Leyen Talks With China's PM of Potential Oversupply of Goods Amid Trade War

European Commission president Ursula von der Leyen discussed with China's Premier Li Qiang the potential oversupply of cheap Chinese goods to the EU, as newly-imposed U.S. tariffs disrupt global trade.

"The President underscored the vital importance of stability and predictability for the global economy," the commission said in a statement on Tuesday following a phone call between the two officials. It also said that von der Leyen "stressed the responsibility of Europe and China, as two of world's largest markets, to support a strong reformed trading system, free, fair and founded on a level playing field."

U.S. and Iran to Hold High-Stakes Nuclear Talks

WASHINGTON-The U.S. and Iran said Monday that they would convene nuclear talks, launching the two adversaries with clashing objectives into high-stakes negotiations.

President Trump said the meetings beginning Saturday would involve direct negotiations between high-level U.S. and Iranian officials, while Iran's Foreign Minister, Abbas Araghchi, said they would be indirect talks in Oman.

Supreme Court Lifts Order Blocking Deportations to El Salvador

WASHINGTON-A 5-4 Supreme Court on Monday lifted a judge's order that had blocked the deportation of suspected Venezuelan gang members to a Salvadoran prison, granting the Trump administration's request to expedite the removals under an 18th century law known as the Alien Enemies Act.

But the court said the detainees were entitled to notice that they were being removed under the wartime measure and an opportunity to challenge their deportations before a federal judge in Texas, near the immigration lockup where they have been held.

Write to don.forbes@wsj.com

TODAY IN CANADA

Earnings:

AGF Mgmnt 1Q

Tilray Brands 3Q

Economic Indicators $(ET)$:

Ivey Purchasing Managers Index for March

Stocks to Watch:

Dundee Precious Metals Announces 1Q 2025 Production Results; Chelopech Produced Approximately 37,400 Ounces of Gold and 5.9M Pounds of Copper During 1Q, in Line With the Mine Plan; Ada Tepe Produced Approximately 12,500 Ounces of Gold in 1Q, in Line With Expectations; Solid Gold Production in 1Q, on Track to Meet Guidance for 2025 With Higher Production Planned for 2H

Expected Major Events for Tuesday

04:30/JPN: Mar Corporate Insolvencies

05:00/JPN: Mar Economy Watchers Survey

06:45/FRA: Feb Foreign trade

06:45/FRA: Feb Balance of payments

10:00/US: Mar NFIB Index of Small Business Optimism

12:55/US: 04/05 Johnson Redbook Retail Sales Index

14:00/CAN: Mar Ivey Purchasing Managers Index

20:30/US: API Weekly Statistical Bulletin

23:01/UK: Mar UK Nations and Regions Growth Tracker

All times in GMT. Powered by Kantar Media and Dow Jones.

Expected Earnings for Tuesday

AGF Management Ltd - Class B (AGF.B.T) is expected to report $0.40 for 1Q.

Aehr Test Systems (AEHR) is expected to report for 3Q.

Bank of South Carolina Corp (BKSC) is expected to report for 1Q.

CCA Industries Inc (CAWW) is expected to report for 1Q.

Cal-Maine Foods Inc (CALM) is expected to report $10.72 for 3Q.

Exela Technologies Inc $(XELA)$ is expected to report for 4Q.

Golden Minerals Co (AUMN,AUMN.T) is expected to report for 4Q.

Healthier Choices Management Corp (HCMC) is expected to report for 4Q.

Kura Sushi USA Inc $(KRUS)$ is expected to report $-0.11 for 2Q.

Mama's Creations Inc $(MAMA)$ is expected to report $0.03 for 4Q.

Movado Group Inc $(MOV)$ is expected to report $0.39 for 4Q.

NexPoint Diversified Real Estate Trust $(NXDT)$ is expected to report for 4Q.

RPM International Inc $(RPM.AU)$ is expected to report $0.50 for 3Q.

Smith-Midland Corp $(SMID)$ is expected to report for 4Q.

Spruce Biosciences Inc $(SPRB)$ is expected to report $-0.23 for 4Q.

Tilray Brands Inc $(TLRY)$ is expected to report $-0.04 for 3Q.

WD-40 Co $(WDFC)$ is expected to report $1.42 for 2Q.

Walgreens Boots Alliance Inc $(WBA)$ is expected to report $0.04 for 2Q.

Powered by Kantar Media and Dow Jones.

ANALYST RATINGS ACTIONS

Acadian Asset Management Raised to Equal-Weight From Underweight by Morgan Stanley

AdvanSix Cut to Neutral From Overweight by Piper Sandler

Alaska Air Group Cut to Neutral From Buy by UBS

Ally Financial Inc Raised to Buy From Neutral by Compass Point

Amylyx Pharmaceuticals Raised to Outperform From Neutral by Mizuho

Apollo Comml Real Estate Raised to Outperform From Market Perform by Keefe, Bruyette & Woods

Axalta Coating Systems Raised to Buy From Neutral by UBS

Bank of America Raised to Overweight From Equal-Weight by Morgan Stanley

Boxlight Cut to Hold From Buy by Maxim Group

California Resources Cut to Neutral From Buy by Citigroup

Caterpillar Cut to Sell From Neutral by UBS

Comerica Cut to Underweight From Equal-Weight by Morgan Stanley

Commerce Bancshares Raised to Equal-Weight From Underweight by Morgan Stanley

Cousins Properties Raised to Outperform From Peer Perform by Wolfe Research

Cummins Cut to Sell From Buy by UBS

Delta Air Cut to Neutral From Buy by UBS

Diamondback Energy Raised to Buy From Neutral by Citigroup

Dollar General Raised to Neutral From Sell by Citigroup

Dollar Tree Raised to Buy From Neutral by Citigroup

East West Bancorp Cut to Equal-Weight From Overweight by Morgan Stanley

EastGroup Cut to Neutral From Overweight by Piper Sandler

Evercore Cut to Equal-Weight From Overweight by Morgan Stanley

Fifth Third Bancorp Raised to Outperform From Neutral by Baird

First Horizon Raised to Outperform From Neutral by Baird

Five Below Raised to Neutral From Underweight by JP Morgan

Fox Corp. Cut to Underperform From Peer Perform by Wolfe Research

General Motors Cut to Underperform From Market Perform by Bernstein

Ingredion Cut to Neutral From Buy by UBS

Jefferies Financial Cut to Equal-Weight From Overweight by Morgan Stanley

JetBlue Raised to Outperform From Market Perform by Raymond James

KeyCorp Raised to Outperform From Neutral by Baird

Lazard Cut to Underweight From Equal-Weight by Morgan Stanley

Martin Marietta Cut to Neutral From Buy by UBS

Navitas Semiconductor Cut to Underweight From Equal-Weight by Morgan Stanley

Northern Trust Cut to Underweight From Equal-Weight by Morgan Stanley

ONE Gas Raised to Buy From Hold by Jefferies

Paccar Cut to Sell From Neutral by UBS

Portillo's Cut to Neutral From Outperform by Baird

Prologis Cut to Sector Underperform From Sector Outperform by Scotiabank

Q2 Holdings Cut to Neutral From Buy by Compass Point

Roku Raised to Buy From Neutral by Redburn Atlantic

Saia Raised to Outperform From Market Perform by BMO Capital

Scotts Miracle-Gro Raised to Buy From Hold by Jefferies

Sealed Air Raised to Buy From Neutral by UBS

SEI Investments Raised to Overweight From Underweight by Morgan Stanley

Starbucks Cut to Neutral From Outperform by Baird

Synchrony Financial Cut to Equal-Weight From Overweight by Morgan Stanley

Terex Cut to Sell From Neutral by UBS

Terreno Realty Cut to Neutral From Overweight by Piper Sandler

Udemy Cut to Hold From Buy by Truist Securities

United Airlines Cut to Neutral From Buy by UBS

United Rentals Cut to Sell From Neutral by UBS

VF Corp Cut to Neutral From Buy by Citigroup

Vital Energy Cut to Neutral From Buy by Citigroup

Vulcan Materials Cut to Neutral From Buy by UBS

This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

April 08, 2025 06:03 ET (10:03 GMT)

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