📈 Apple's Tariff Tumble

Good morning.

⚡ The Fast Five → Amazon and AppLovin bid to buy TikTok, Siemens acquires Dotmatics, Trump prepares to sell $2.3B stake in Trust Social, Roblox rises on new ad initiatives, Apple stock takes hit on tariff news

🔎 Market Trends → Wall Street ends up, but Trump tariff speech sends futures lower; US Futures Plunge on Sweeping Tariffs

And now…

⏱️ Your 5-minute briefing for Thursday, April 3, 2025:

MARKET BRIEF
Before the Open

Pre-Market

Fear & Greed

Markets in Review

Wall Street Rallies—Then Rethinks—After Trump’s Tariff Bombshell

The S&P 500 gained 0.7% to 5,671 and the Dow Jones rose 0.6% to 42,225.3. The Nasdaq added 0.9%, lifted by consumer discretionary stocks. Futures, however, slid after-hours as the tariff shoe dropped.

The Big Picture:

Markets climbed into the close Wednesday, cheered by a strong private-sector jobs report and rising optimism around corporate resilience. But after the bell, President Trump delivered a jolt—sweeping new tariffs on imports from China, Japan, the EU, and more.

The tariff blitz includes 34% on Chinese goods, 24% on Japanese items, and 25% on all imported autos, effective midnight. Futures swiftly reversed course as investors digested the inflationary risks.

Yet the market’s day session strength underscores a deeper point: corporate America remains agile, with consumer demand and employment still showing signs of health. Even rising geopolitical friction hasn't dented investor appetite—yet.

Market Movers:

• Tesla (TSLA) rallied 5.3%, shrugging off weak Q1 deliveries. Investors looked past the headline miss as rumors swirled that Elon Musk will exit his Trump advisory role—a potential sign of more strategic focus at the company.

• Altria (MO) sank 2.8% after Deutsche Bank downgraded the stock, citing macro headwinds and slowing momentum.

• ADP (ADP) posted a solid jobs report, signaling resilient hiring even as wage growth cooled—a Goldilocks print for the Fed.

What They’re Saying:

“The March topline number was a good one for the economy and employers of all sizes,” said ADP’s Nela Richardson. “Even amid uncertainty, hiring hasn’t lost its footing.”

WHAT WE’RE WATCHING
Events

• Today: Department of Labor - Unemployment Claims - 8:30am

  Why You Should Care: Although it's generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions. Unemployment is also a major consideration for those steering the country's monetary policy.

• Today: Institute for Supply Management - Non-Manufacturing PMI - 10:00am

  Why You Should Care: It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy.

Earnings Reports

• Today: ConAgra Brands, Guess?, Lamb Weston, AMMO, MSC Industrial Direct

• Tomorrow: Splash Beverage Group, Desktop Metal, Actinium Pharmaceuticals

MARKET BRIEF
Leading News

Apple's Tariff Tumble: Why Smart Money Sees a Buying Opportunity

Why it matters:

Apple's 7.1% after-hours plunge on Trump's China tariff announcement represents classic market overreaction—creating potential value for investors who understand Apple's remarkable resilience in navigating geopolitical headwinds.

Zoom Out:

The market experienced a knee-jerk reaction to Trump's surprisingly aggressive tariff announcement: 34% on Chinese goods atop an existing 20% levy. Apple (AAPL) took the brunt of the beating in after-hours trading Wednesday, dropping 7.1% as investors fixated on supply chain disruptions.

But history suggests this panic selling misses crucial context. During Trump's first administration, Apple secured tariff exemptions—a pattern Wedbush analyst Daniel Ives expects to repeat, calling the current situation "nervous" but navigable.

Key Insights:

• Margin Fortress: Apple has expanded gross margins from 38% to 47% over six years—providing substantial buffer against tariff shocks and flexibility in absorbing costs without devastating profitability.

• Ecosystem Moat: Apple's legendary customer retention rates, powered by its services ecosystem (21% of net sales), gives it pricing power most companies can only dream of—even in challenging economic environments.

• Supply Chain Optionality: While Apple's Vietnam expansion offers less protection than expected (with Trump announcing 46% tariffs there), the company's supply chain sophistication allows for nimble adjustments that Wall Street consistently underestimates.

Market Pulse:

"For now, the White House will say they are not looking for deals... but we continue to believe there are offramps and major negotiations that will happen over the coming months," predicts Ives.

Bull’s Take:

CFRA analyst Angelo Zino captures the opportunity perfectly: "We trust the management execution at Apple better than we do others across the tech ecosystem." Patient investors willing to weather short-term volatility may find Apple's tariff-induced dip an excellent chance to own a quality compounder at a rare discount.

Headlines

• AppLovin, Amazon Bid To Buy TikTok Ahead of Deadline, Reports Say (link)

• Siemens acquires Dotmatics to extend AI-powered software portfolio to Life Sciences (link)

• Pennsylvania just demolished its largest coal plant to make way for a $10 billion AI data center (link)

• Treasury Secretary Bessent says market woes are more about tech stock sell-off than Trump’s tariffs (link)

• Donald Trump prepares to sell $2.3bn stake in Truth Social (link)

• Roblox Stock Rises On New Online Advertising Initiative (link)

CRYPTO
Fear & Greed

Headlines

• Bitcoin ETFs Could See $3B in Q2 Inflows Even Without Price Recovery, Says Analyst (link)

• Wall Street Giant DTCC Unveils Tokenized Collateral Platform in Crypto Push (link)

• Grayscale Lists 2 New Bitcoin ETFs Offering Income From BTC Volatility (link)

DAILY SHARE
On the Socials