📈 Apple's AI Timeout

Good morning.

⚡ The Fast Five → Dollar General & Dollar Tree stocks rise, Ulta Beauty shares rally, Palantir partners with Archer, Spirit ready to take on Southwest, Apple AI delay clouds short term outlook

🔎 Market Trends → Wall Street slides, S&P confirms correction, as trade war escalates

And now…

⏱️ Your 5-minute briefing for Friday, March 14, 2025:

MARKET BRIEF
Before the Open

Pre-Market

Fear & Greed

Markets Slide as Tariff Tensions Escalate

Markets Rally as Inflation Cools, Tech Leads the Charge

The Nasdaq fell 2% to 17,303, while the S&P 500 lost 1.4% to 5,521.5. The Dow dropped 1.3% to 40,813.6 as trade tensions spooked investors. Utilities were the only sector in the green, while communication services led the declines.

The Big Picture:

Markets took a hit after President Trump threatened a 200% tariff on EU alcohol exports in response to European tariffs on U.S. whiskey.

While Mexico opted for patience, saying it won’t immediately retaliate against U.S. metal tariffs, Canada and the EU have already fired back with their own trade measures. Despite the noise, Wells Fargo Investment Institute sees little risk of a recession or a major hit to corporate profits.

Bonds rallied as Treasury yields fell, with the 2-year rate down 3.4 basis points to 3.96% and the 10-year yield losing 4.4 basis points to 4.27%. Meanwhile, West Texas Intermediate crude slid 1.4% to $66.73 a barrel, as the IEA warned of oversupply amid rising trade tensions.

Market Movers:

• Adobe (ADBE) plunged 14%, the worst performer on the S&P 500. Investors reacted negatively to changes in digital media disclosures, overshadowing a solid earnings report.

• Intel (INTC) surged 15%, leading the S&P 500, after appointing industry veteran Lip-Bu Tan as CEO in a move seen as a major strategic win.

• Dollar General (DG) jumped 6.8% despite missing earnings expectations. Stronger-than-expected sales reassured investors about consumer demand resilience.

What They’re Saying:

"One month of softer inflation isn't enough to declare victory," Stifel cautioned. "Lingering price pressures and trade disruptions could complicate the Fed’s path forward."

WHAT WE’RE WATCHING
Events

• Today: University of Michigan - Prelim UoM Consumer Sentiment - 10:00am

  Why You Should Care: Financial confidence is a leading indicator of consumer spending, which accounts for a majority of overall economic activity.

• Today: University of Michigan - Prelim UoM Inflation Expectations - 10:00am

  Why You Should Care: Expectations of future inflation can manifest into real inflation, primarily because workers tend to push for higher wages when they believe prices will rise.

Earnings Reports

• Today: Buckle, Gogo, Li Auto, DouYu International, WideOpenWest (WOW!), Bit Digital, American Vanguard

• Monday: Eastman Kodak, Getty Images, JOY Y Inc., Altus Power

MARKET BRIEF
Leading News

AI Delay Rattles Apple Bulls, But Long-Term Case Intact

Why it matters:

Apple's postponement of advanced AI features for Siri has triggered a Wall Street reassessment, but savvy investors should look beyond the short-term noise to spot potential buying opportunities in this tech stalwart (AAPL).

Zoom Out:

The iPhone maker's stock has tumbled after analysts slashed growth forecasts from 7% to a mere 1% as the company delays integrating sophisticated AI capabilities into its ecosystem.

Wall Street's reaction reflects legitimate concerns, but history suggests Apple's methodical approach to product innovation—perfecting features before release rather than rushing half-baked technologies—has repeatedly rewarded patient investors.

Key Insights:

• KeyBanc's Brandon Nispel and Morgan Stanley's Erik Woodring have both adjusted targets downward, with Woodring cutting iPhone shipment forecasts by 5% for 2026, yet maintaining his overweight rating—a signal that longer-term prospects remain favorable despite near-term headwinds.

• The postponed rollout of an enhanced AI-powered Siri assistant—identified as the "No. 1 AI feature" prospective upgraders desire—creates a temporary vacuum in Apple's competitive positioning against increasingly AI-capable Android devices.

• China market share erosion and potential tariff impacts compound current challenges, but Apple's premium ecosystem and $60+ billion annual free cash flow provide substantial cushion for navigating these waters.

Market Pulse:

"The market is overreacting to timing rather than substance. Apple's deliberate approach to AI integration speaks to their commitment to quality over speed—a strategy that has historically paid dividends for long-term shareholders," notes a veteran tech analyst.

Bull’s Take:

Smart investors recognize that Apple's legendary product cycles rarely follow analyst timetables. The current valuation compression creates an attractive entry point for those with the patience to await the inevitable AI-powered renaissance in Cupertino.

Headlines

• Dollar General, Dollar Tree stocks rise as penny-pinching consumers look for low-cost options (link)

• Ulta Beauty CEO says investments in growth ‘will take time’ to pay off, but shares still rally (link)

• Palantir Technologies Partners With Archer Saildrone and Databricks to Revolutionize AI Innovations (link)

• IBM, Microsoft Patents Target Sustainable Computing Amid AI Energy Crisis (link)

• Spirit Airlines, fresh from bankruptcy, is ready to take on the new Southwest, CEO says (link)

• Toast, Shift4 lead drop in fintechs as investors exit stocks tied to consumer spending (link)

CRYPTO
Fear & Greed

Headlines

• Bitcoin, Ethereum, Dogecoin Decline, XRP Clinging On As Traders Wargame Bear Market Scenarios (link)

• BlackRock's BUIDL first to cross $1 billion mark, making it the largest tokenized fund tracking onchain Treasuries (link)

• U.S. Senate Takes First Big Step to Advance Stablecoin Bill (link)

DAILY SHARE
On the Socials