Market Overview

The stock market closed with gains across the board. The Dow Jones Industrial Average increased by 0.6%, jumping more than 200 points. The S&P 500 and Nasdaq Composite gained 0.7% and 0.9%, respectively. Despite continued volatility today, optimism surrounding President Trump's tariff announcement contributed to the market's positive finish.

Tariff News Impact

There is optimism that the tariffs will be less severe than initially feared. CNBC reported that a 20% universal tariff is unlikely, and there is hope that tariffs are being used as a negotiating tool to bring other countries to the table.

Sector and Stock Performance

The positive momentum in the market was driven by gains in mega-cap stocks and recent rebound actions. Notable performers included Tesla (TSLA 282.70, +14.24, +5.3%), NVIDIA (NVDA 110.42, +0.27, +0.3%), Apple (AAPL 223.89, +0.70, +0.3%), and Amazon.com (AMZN 196.01, +3.84, +2.0%).

• Consumer Discretionary: +2.0%
• Industrial: +0.9%
• Financial: +0.9%

Nine out of the 11 S&P 500 sectors registered gains, contributing to the overall market uplift.

Treasury and Yield Information

Treasuries saw an unwinding of safe-haven trading, adding to the positive bias in equities. The 10-year yield rose four basis points to 4.20%, and the 2-year yield rose four basis points to 3.90%.

Year-to-Date Performance

• Dow Jones Industrial Average: -0.8% YTD
• S&P 500: -3.6% YTD
• S&P Midcap 400: -4.5% YTD
• Russell 2000: -8.3% YTD
• Nasdaq Composite: -8.9% YTD

Economic Data Review

• Weekly MBA Mortgage Applications Index: -1.6% (Prior: -2.0%)
• March ADP Employment Change: 155K (Consensus: 120K; Prior revised to 84K from 77K)
• February Factory Orders: 0.6% (Consensus: 0.4%; Prior revised to 1.8% from 1.7%)

The key takeaway is that new orders for nondefense capital goods excluding aircraft decreased by 0.2%, despite the headline beat.

Guru Stock Picks

Carl Icahn has made the following transactions:

• Reduce in SWX by 21.8%
• Add in UAN by 0.13%

Today's News

President Donald Trump has announced the implementation of reciprocal tariffs, marking a significant shift in trade policy. A 25% tariff will be imposed on all foreign-made automobiles starting tonight. Trump argues that these measures will boost competition, reduce prices, and help pay down the national debt. The tariffs are expected to have wide-ranging impacts on international trade and domestic manufacturing.

Neuralink, co-founded by Elon Musk, has expanded its patient registry globally. This move is part of the company's efforts to advance its brain-computer interface technology, which aims to assist patients with neurological conditions. Musk, also the CEO of Tesla (TSLA, Financial), has indicated that the first human implantation of their brain chip could occur by late 2025, signaling a significant milestone for the company.

Amazon (AMZN, Financial) is preparing to launch its initial batch of satellites for Project Kuiper on April 9. This project aims to provide high-speed internet globally through a network of over 3,200 low Earth orbit satellites. The first launch will deploy 27 satellites, with service expected to roll out later this year. This initiative positions Amazon as a significant player in global internet connectivity.

Tesla (TSLA, Financial) reported its lowest quarterly deliveries since 2022, with only 336,681 vehicles delivered, falling short of the consensus estimate. The disappointing numbers have raised concerns among analysts, with some suggesting that the weak performance was anticipated due to production changes. Tesla's stock has been volatile, reflecting investor reactions to these developments.

AppLovin (APP, Financial) is reportedly in talks with the Trump administration regarding a potential bid for TikTok. This development adds another contender to the list of companies interested in acquiring the popular social media platform. The outcome of these negotiations could significantly impact AppLovin's market position and strategy.

BlackBerry (BB, Financial) shares have continued to decline, falling for seven consecutive sessions due to a disappointing fiscal outlook. The company's guidance for the upcoming quarter fell short of expectations, contributing to a 9.5% drop in stock price. Despite previous gains, BlackBerry has struggled to maintain investor confidence amid these challenges.

President Trump's tariffs will also affect the beer import market, with a 25% tariff on imported beer and aluminum cans set to take effect. This policy is expected to impact major beer importers like Constellation Brands (STZ, Financial), potentially leading to price increases for consumers.

Starbucks (SBUX, Financial) has declared a quarterly dividend of $0.61 per share, maintaining its previous payout. The company's forward yield stands at 2.45%, with the dividend payable on May 30. This announcement aligns with Starbucks' strategy of providing consistent returns to shareholders.

Google (GOOGL, Financial) is nearing a deal with CoreWeave (CRWV, Financial) to rent data center servers using Nvidia's (NVDA, Financial) GPUs. This partnership would enhance Google's access to advanced processing capabilities, supporting its data-intensive operations. The agreement highlights ongoing efforts to secure technological resources amid growing demand.

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