2025-04-15
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U.S. stocks gyrated on Tuesday, as investors analyzed the latest batch of first-quarter earnings reports and enjoyed a recent decline in market turmoil.The Dow Jones Industrial Average lost 106 points, or 0.3%. The S&P 500 and Nasdaq Composite each slid 0.1%. The three averages are coming off back-to-back winning sessions.Tuesday’s muted moves were in stark contrast to the volatile swings seen in recent sessions. The Cboe Volatility Index (VIX), known as Wall Street’s “fear gauge,” fell below 30 after hitting a high of around 60 last week.Bank of America and Citigroup added more than 4% and 2%, respectively, after exceeding analyst expectations for the first quarter. Bank stocks as a whole provided upward momentum, with the SPDR S&P Bank ETF (KBE) rising nearly 2%.Other major reports due this week include United Airlines and Netflix. Beyond earnings, Boeing shares slipped close to 2% after Bloomberg reported that Beijing ordered Chinese airlines not to take more of the company’s planes.Stocks received a tailwind into this week after guidance on Friday from U.S. Customs and Border Protection revealed exemptions from “reciprocal” tariffs for electronic products such as smartphones, computers and semiconductors. Still, comments from President Donald Trump and Commerce Secretary Howard Lutnick on Sunday suggested these exemptions might only be temporary.Despite recent gains, the three major indexes are still clawing back losses seen in the wake of Trump’s original tariff announcement on April 2. The Dow and Nasdaq have each slid more than 3%, while the S&P 500 has dropped more than 4%.“The worst-case scenario is off the table,” said Larry Tentarelli, founder of the Blue Chip Daily Trend Report. But, “the problem is we could get a headline at any time and the market goes down 3%.”Market isn’t ‘out of the woods yet’ with volatility around tariffs, Piper Sandler says Stocks may be due for more chaotic moves with tariff uncertainty, according to Piper Sandler.“Technically, we are ‘not out of the woods yet,’ as we’d like to see the SPX recover its March lows and make another ascent toward its 50-/200-day MAs at around 5,750-5,800,” analyst Craig Johnson wrote in a Tuesday note. “Investors are returning to the equity market despite the crosscurrents in the macro picture.”“We expect investors to temporarily shift their attention to earnings and away from tariffs, allowing the macro picture to settle down in the upcoming weeks,” he continued.— Sean ConlonInvestor Josh Brown buys NetflixBeata Zawrzel | Nurphoto | Getty ImagesNetflix is the best stock to withstand an economic slowdown, according to buyer Josh Brown.“I actually think it’s the best stock in the market for this year,” the Ritholtz Wealth Management CEO said Tuesday on CNBC’s “Halftime Report.”“That doesn’t mean I think it’ll go up the most, but I am not on the hunt for the hardest-hit stocks to try to bottom fish,” he continued. “I’m looking for resilience, because I think in a defensive bear market, that’s the number one quality of the stocks that by year-end will have performed the best.”Read the full story here.— Sarah Min ‘Rubber will have to meet the road,’ Mahoney Asset Management CEO saysWhile President Donald Trump’s pause on many of his tariffs lifted the market recently, Ken Mahoney, CEO of Mahoney Asset Management, still expects challenges ahead.“Big money may be looking to sell all rallies, as we still overall are in bearish conditions,” Mahoney told CNBC.Mahoney said the market is likely still trending downward, though that may not yet be apparent to investors.“At some point this rally will be tested and pullback,” he added. “That is where the rubber will have to meet the road to see the true trend of the market.”— Alex HarringGold miners hit highest level since 2012The VanEck Gold Miners ETF (GLD) advanced 0.6% Tuesday, reaching its highest point since Nov. 2012.Some of the companies in the fund at new 52-week highs include Alamos Gold, AngloGold, Agnico Eagle and Endeavour Mining.The surge higher comes as gold prices have surged in 2025, due to a surge in safe-haven demand as President Donald Trump’s tariff policies spark uncertainty in the market.— Hakyung Kim, Gina FrancollaThe economy will stabilize going forward from here, says chief investment officerWhile lingering tariff uncertainty has taken stocks for a downward ride over the past few weeks, BMO Wealth Management’s chief investment officer believes the fundamental market backdrop still looks relatively solid.“Right now, I do think what we see is some strength in consumer ... we actually think consumer spending will hold up reasonably well,” Yung-Yu Ma said on CNBC’s “Money Movers” on Tuesday morning. “We actually think the environment going forward, after we’ve gotten through this rough patch, is reasonably stable.”The CIO added that the labor market may see some near-term softness, but will ultimately remain relatively healthy by summertime. Ma also believes investors are perhaps too pessimistic on their earnings revision for the upcoming earnings season.“I think there was some additional caution,” he said. “There were some revisions that were more based on uncertainty pulling down the revisions rather than actual commentary or economic data that was coming in.”— Lisa Kailai HanTrump has not ‘made a determination’ on raising corporate tax rate, White House saysWhite House press secretary Karoline Leavitt on Tuesday indicated that Trump could be open to raising the corporate tax rate to help pay for cuts elsewhere.“I don’t believe the president has made a determination on whether he supports it or not,” Leavitt said when asked about the idea.The Tax Cuts and Jobs Act, enacted during Trump’s first stint in the presidency, is set to expire at the end of this year. Negotiations over extending or changing those policies are expected to be a prominent focus in Washington, D.C., in the months ahead.— Jesse PoundJamie Dimon urges Washington to engage with ChinaMike Segar | ReutersJamie Dimon, Chairman and CEO of JPMorgan Chase & Co., speaks to the Economic Club of New York in Manhattan, New York City, on April 23, 2024.JPMorgan Chase CEO Jamie Dimon urged the White House to engage in negotiations with China before Trump’s trade war escalates further.“I don’t think there’s any engagement right now ... it doesn’t have to wait a year. It could start tomorrow,” he said in an interview with the Financial Times.His comment came after Trump excluded China in his 90-day pause of sweeping tariffs. China struck back with 125% tariffs on U.S. goods after Trump’s latest executive order boosted tariffs on Beijing to 125%, stacked on top of a combined 20% fentanyl-related tariff imposed in February and March.“We should be careful. I don’t think anyone should assume they have a divine right to success and therefore don’t worry about it,” Dimon said.— Yun LiShort-term market trend is to downside, Wolfe Research saysThe market could be in for more pain, according to Wolfe Research.“We continue to believe that the near-term trend is to the downside,” Chris Senyek, the firm’s chief investment strategist, wrote to clients Tuesday.Senyek said “peak fear” tied to Trump’s tariff policy rollout is likely now in the rearview mirror. However, he said to expect more uncertainty during the so-called pause on many levies for 90 days, as well as the continued trend of the market being sensitive to any updates on trade policy.— Alex HarringHealth-care stocks drag on marketShares of health-care names restricted the S&P 500 on Tuesday.The S&P 500 sector slid nearly 1% midday. By comparison, the broad index flickered around flat.Molina Healthcare and Zimmer Biomet led the index lower, with both dropping more than 3%. Moderna was also among the biggest losers, posting a decline of around 3%.Pfizer and DexCom were among the stocks bucking the downtrend, as both names rose more than 1%.— Alex HarringStocks making the biggest moves midday TuesdayBrendan McDermid | ReutersA screen displays the logo for Boeing on the floor at the New York Stock Exchange on April 2, 2025.Check out the companies making headlines in midday trading:Hewlett Packard Enterprise — The cloud services company saw shares jump 5% after news that Elliott Management has taken a $1.5 billion stake in the company. Elliott Management hopes to engage the company in discussions on how to improve shareholder value, a person familiar with the matter told CNBC.Boeing — The aerospace stock fell slightly on the heels of Bloomberg, citing people familiar with the matter, reporting that Beijing ordered Chinese airlines not to take any further Boeing plane deliveries and halt purchases of aircraft equipment from U.S. companies.Bank of America — Shares jumped 4% after Bank of America reported first-quarter results that exceeded analysts’ expectations as net interest income and trading revenue outperformed. The bank posted earnings of 90 cents per share on revenue of $27.51 billion. Analysts polled by LSEG had called for earnings of 82 cents per share on revenue of $26.99 billion. The full list can be found here.— Hakyung KimBank of America double-downgrades Dow, citing ‘perfect storm’Shares of chemical company Dow were under pressure on Tuesday after receiving a rare double-downgrade from Bank of America.Analyst Steve Byrne lowered his outlook on Dow to underperform from buy, citing global economic forces that could hurt the stock.“DOW is now facing a ‘perfect storm’ of softening macro, emerging barriers to trade, and higher US feedstock costs, which have led us to cut our 2025-26 EBITDA estimates by 17%/23%,” Byrne said in a note to clients, referring to an adjusted profit metric.The stock was down more than 2% in midday trading.— Jesse PoundBank stocks rallyBank stocks outperformed on Tuesday.The SPDR S&P Bank ETF (KBE) jumped 2% in late morning trading. By comparison, the S&P 500 rose 0.4%.Bank of America and Citigroup popped more than 3% and 2%, respectively, after the banks’ earnings both topped Wall Street expectations. Wells Fargo, Morgan Stanley and Goldman Sachs were also among the financial institutions advancing.— Alex HarringVolatility index falls below 30The CBOE Volatility Index, or VIX, fell again on Tuesday, breaking below the 30 level to about 28.49. The index, which measures implied volatility based on S&P 500 options pricing, was trading above 50 just a week ago.The index is often referred to as Wall Street’s “fear gauge.” In recent years, it has typically traded below 20 during calm market periods.“We believe ‘peak fear’ is likely past us as capitulation levels for indicators such as the VIX and Put/Call ratio were reached within the throes of the selloff,” Chris Senyek of Wolfe Research said in a note to clients Tuesday.— Jesse PoundHP Enterprise shares jump after Elliott takes stakeSopa Images | Lightrocket | Getty ImagesHewlett Packard Enterprise shares jumped nearly 7% after news that Elliott Management has taken a $1.5 billion stake in the company.Elliott Management hopes to engage the company in discussions on how to improve shareholder value, a source familiar with the matter told CNBC.— Yun LiSteve Eisman says he has reduced risk as tariff negotiations could take monthsSteve Eisman of “The Big Short” fame said he has reduced risk in his portfolio as he believes Trump’s tariffs could be an overhang for the market for months.“I’ve taken some risk down in my personal portfolio, and I’m waiting,” Eisman said on CNBC’s “Squawk Box” on Tuesday. “I think we’re going to have volatility for quite a while. The Trump administration has set up a situation where negotiating with multiple countries or multiple issues are going to take a couple of leads. It could take a few months.”The former Neuberger Berman senior portfolio manager and “The Eisman Playbook” host said stocks such as Nvidia and Apollo have very strong fundamentals and could be long-term winners.— Yun LiStocks are little changedStocks traded within striking distance of flat as Tuesday’s trading day kicked off.The Dow and Nasdaq Composite ticked higher by 0.1% each shortly after 9:30 a.m. ET. The S&P 500 added 0.2%.— Alex HarringImport prices fell 0.1% in March prior to Trump tariffsJustin Sullivan | Getty ImagesPrices for U.S. imports edged lower in March, just ahead of the rollout of President Donald Trump’s blanked tariffs, the Bureau of Labor Statistics reported Tuesday.Import prices declined 0.1% after rising 0.2% in February, pushed lower by a 2.3% fall in fuel prices. Economists surveyed by Dow Jones had been looking for an unchanged reading.Export prices were flat on the month after also being up 0.2% the prior month.— Jeff CoxEmpire State manufacturing reading not as bad as expectedThe outlook for factory activity in the New York region dimmed to its second-lowest in the 22-year history of a Federal Reserve survey released Tuesday.Though the New York Fed’s Empire State Manufacturing index actually rose nearly 12 points, it remained negative at -8.1, representing the percentage difference between companies reporting expansion against contraction. The reading was better than the -12.4 level forecast by Dow Jones.However, the general business condition index for expected activity six months ahead tumbled 20.1 points to -7.4. New orders, shipments and inventories are all expected to decline, while the pace of price increases is expected to pick up.— Jeff CoxBoeing, Citigroup among biggest premarket moversCheck out the companies making headlines before the bell:Boeing — Shares of the aerospace company fell more than 3% after Beijing ordered Chinese airlines not to take more deliveries of Boeing planes and to halt purchases of aircraft equipment from U.S. companies, according to a Bloomberg report on Tuesday.Dow — The chemical stock slid more than 4% after a downgrade to underperform from buy at Bank of America. The investment firm said Dow is facing a “perfect storm” of negative factors, including a weakening economy and higher barriers to trade.Citigroup — Shares rose after the bank reported better-than-expected results, driven by gains at its fixed income and equities trading units. Citi earned $1.96 per share on revenue of $21.50 billion. Analysts estimated the bank would earn $1.85 per share on $21.29 billion in revenue. For the full list, read here.— Pia SinghCitigroup beats expectationsErik Mcgregor | Lightrocket | Getty ImagesSign at the entrance to a Citibank branch in Manhattan. Citigroup shares ticked higher after the bank exceeded Wall Street’s expectations for first-quarter earnings.The bank earned $1.96 per share on $21.60 billion in revenue. Analysts polled by LSEG forecast just $1.85 in earnings per share and revenue of $21.29 billion.— Alex Harring, Hugh SonJ&J beats on earningsJohnson & Johnson reported quarterly results that beat analysts’ expectations. The pharmaceutical giant earned $2.77 per share on revenue of $21.89 billion. Analysts polled by LSEG expected a profit of $2.59 per share on revenue of $21.56 billion.Shares ticked slightly higher in the premarket.— Fred ImbertBank of America shares rise after earnings beatDanielle DeVries | CNBCPeople walk by a Bank of America in New York City on Feb. 13, 2025.Bank of America posted better-than-expected earnings for the first quarter, sending shares higher by more than 1% in the premarket. The bank earned 90 cents per share on revenue of $27.51 billion. Analysts had forecast a profit of 82 cents per share on revenue of $26.99 billion.The company’s results were driven by strong revenue from trading and solid interest income.— Fred ImbertAsia-Pacific markets mostly rise after tech rally pushes Wall Street higherAsia-Pacific markets mostly rose Tuesday after all three key Wall Street benchmarks advanced overnight on a tech rally.Japan’s benchmark Nikkei 225 climbed 0.84% to end the day at 34,267.54, while the broader Topix index advanced 1% to 2,513.35.In South Korea, the Kospi index added 0.88% to close at 2,477.41, while the small-cap Kosdaq moved up 0.41% to 711.92.Australia’s S&P/ASX 200 moved up 0.17% to close at 7,761.70.India’s benchmark Nifty 50 surged 2.18% while the broader BSE Sensex rose 2.19% as of 1:50 p.m. Indian Standard Time.Hong Kong‘s Hang Seng Index closed 0.23% higher at 21,466.27, while Mainland China’s CSI 300 ended the day flat at 3,761.23.— Amala BalakrishnerInvestors need to practice patience amid a ‘very much intact bull market,’ says OppenheimerIt is essential for investors to practice patience and not got swept up in trepidation amid this period of heightened uncertainty, according to Oppenheimer.In a Monday note, Oppenheimer chief investment strategist John Stoltzfus reiterated his bullish stance on equities.“We remain positive on stocks and consider near-term volatility tied to the uncertainties surrounding the tariff regime structure — which for now remains in our view very much ‘a work in progress’ — as not atypical of a period in market history which is laden with watershed caliber developments in technological innovation and changes likely to the global trade landscape that seek to create a fairer and likely more competitive global venue,” he wrote.Stoltzfus added: “Pullbacks earlier this year have mostly looked like ‘trims’ and ‘haircuts’ for the S&P 500 whenever bears, skeptics, and nervous investors have found a catalyst to take near-term profits without FOMO (fear of missing out) amid what appears to us in fundamentals that persist in showing resilience like a very much intact bull market.”Specifically, Stoltzfus listed his favorite sectors as information technology, communications services, consumer discretionary, financials and industrials — sectors that have all sold off this year.— Lisa Kailai HanON Semiconductor stock rises 3% after withdrawing offer to buy Allegro MicroSystemsThomas Fuller | Sopa Images | Lightrocket | Getty ImagesShares of ON Semiconductor added 3% in Monday’s extended-hours trading after the company announced it had terminated its all-cash bid to acquire Allegro MicroSystems for $35.10 per share.Shares of Allegro tumbled 12%.In a press release, ON Semiconductor said it had “determined there is no actionable path forward,” but that the company would focus its efforts on other opportunities to enhance shareholder value.— Lisa Kailai HanStock futures open lowerStock futures slipped Monday night.Dow futures slid around 0.3% shortly after 6 p.m. ET. S&P 500 futures and Nasdaq 100 futures respectively shed 0.2% and 0.3%.— Lisa Kailai Han
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