April 29, 2025 | Daily JAM, Morning Briefing |
Today General Motors announced that it was pulling its previous earnings guidance for 2025 and putting $4 billion in share buybacks on hold until it has more clarity on the impact of U.S. tariffs.
April 28, 2025 | Daily JAM |
Risky corporate-debt markets–what you and I call the junk bond market–have room to drop further due to to damage from the tariff war.“We’re likely to see spreads widen from here as we see further deterioration in risk assets and in overall credit quality,” Mitch Garfin, BlackRock’s co-head of leveraged finance, told Bloomberg.
April 28, 2025 | Daily JAM, VIX, Volatility |
Today, Monday April 28, I’m selling my last two Call Options on the VIX, the CBOE S&P 500 Volatility Index. Not because we’re done with volatility. No way. I expect lots more volatility in the weeks and months ahead. And I expect to put this trade on again. But because these two options expire on May 21
April 27, 2025 | Daily JAM, Morning Briefing |
This week’s quarterly earnings reports from Microsoft (MSFT), Apple (AAPL), Meta Platforms (META) and Amazon.com (AMZN) face high earnings expectations from Wall Street analysts. Analysts expect the Magnificent Seven-—which also includes Alphabet (GOOG), Tesla (TSLA) and Nvidia (MVDA)-—to deliver an average of 15% earnings growth in 2025. That expectation has barely budged since the start of March despite the uncertainty of the Trump tariffs. The four megacaps reporting this week collectively have a nearly 20% weighting in the Standard & Poor’s 500.
April 27, 2025 | Daily JAM |
Fast-fashion giant Shein Group raised U.S. prices of its health and beauty products by 51% or more. E-commerce shopping platforms like Shein and Temu face a 120% tariff on many of their products due to the U.S. government’s decision to end the “de minimis” exemption for small packages from mainland China and Hong Kong. Exporters in recent years had capitalized on the exemption, which allowed goods valued at under $800 to enter the U.S. without tariffs or customs duties. Washington will also increase the per-postal-item fee on goods entering after May 2 to $100 and even higher after June 1
April 27, 2025 | Daily JAM, Morning Briefing |
President Donald Trump’s tariffs on goods from China have disrupted trans-Pacific supply chains. In the three weeks since the tariffs took effect, ocean-container bookings from China to the U.S. are down by more than 60%, Ryan Petersen, founder and CEO of Flexport, a global shipping company, told the Washington Post. Cargo carriers that bring Asian goods to the Port of Los Angeles, the nation’s main Pacific gateway, have canceled 20 port calls next month, more than three times as many as last month, according to port data. The consequence will be “empty shelves in U.S. stores in a few weeks and covid-like shortages for consumers and for firms using Chinese products as intermediate goods,” Torsten Slok, chief economist for Apollo Global Management, told the Post. “Significant” layoffs in trucking, logistics and retail are likely as soon as May, Slok said.
April 26, 2025 | Daily JAM |
Finally, maybe some hard data on how President Donald Trump’s tariffs are affecting the U.S. economy. At 8:30 New York time om Wednesday the Bureau of Economic Analysis is scheduled to release its first take on the GDP rate in the first quarter of 2025. Economists surveyed by the Wall Street Journal project the U.S. economic output rose at an annual rate of just 0.4% in the first quarter. That would be down from 2.4% in the last quarter of 2024 and the slowest growth since 2022. This will be the first hard data that might show the impact of President Trump’s tariff moves.
April 25, 2025 | Daily JAM, PEP |
On Thursday, PepsiCo cut its full-year guidance outlook, citing a reduction in consumer spending as well as the impact of higher tariffs.
“Relative to where we were three months ago, we probably aren’t feeling as good about the consumer now,” Jamie Caulfield, PepsiCo CFO, told Wall Street analysts and investors on an earnings call Thursday morning.
April 25, 2025 | Daily JAM, Morning Briefing |
The S&P 500 gained more than 4% for this week. Some of that was the result of talk from the White House about possible tariff negotiations with China.As the week wore on, though, attention shifted from tariff talk to comments from Federal Reserve officials that seemed to suggest that the central bank might consider cutting interest rates as early as its June meeting if economic growth slowed. Yep, the Powell Put is back. In this scenario, bad earnings and bad economic news become good news because they push the Federal Reserve closer to cutting interest rates.
April 25, 2025 | Daily JAM, Morning Briefing |
First, the optimists among economists who believe the United States will dodge a Recession. And then the pessimists who say we’ll see the economy shrink in the first quarter of 2025. (First quarter GDP is scheduled to be reported on the morning of April 30.)
April 24, 2025 | Daily JAM |
President Donald Trump said his administration is talking with China on trade. This came after Beijing denied the existence of negotiations on a deal and demanded the United States revoke all unilateral tariffs. “They had a meeting this morning,” Trump said Thursday during a meeting with Norway’s prime minister when a reporter asked about the Chinese statement. Pressed on which administration officials were involved in discussions, President Trump said, “it doesn’t matter who ‘they’ is. We may reveal it later, but they had meetings this morning, and we’ve been meeting with China.” Not so, Chinese Commerce Ministry spokesman He Yadong said Thursday.
April 24, 2025 | Daily JAM, Mid Term |
Unilever (UL) and Nestle (NSRGY) both posted better-than-expected sales in the first quarter. Because they were able to push prices higher to counter surging commodity costs.
That’s not good news for consumers or food-price inflation. Both companies said customers will have to take some of the pain as a global trade war and surging commodity prices lift their costs again.