What happened last week…
On Wednesday, President Donald Trump announced tariffs on more than 180 countries and territories. Trump imposed a 10% baseline for tariffs, but many countries are subject to vastly higher rates. The following percentages are some of the reciprocal tariffs: China 34%, European Union 20%, Vietnam 46%, Taiwan 32%, Japan 24%, India 26%, South Korea 25%, Thailand 36%. The tariffs are scheduled to go into effect on April 9. In a CNBC interview on Thursday, Commerce Secretary Howard Lutnick said, “This is the reordering of fair trade” and added, “It’s about those non-tariff trade barriers.” Lutnick continued, “I expect most countries to start to really examine their trade policy towards the United States of America and stop picking on us.” On Thursday, the day after the tariff announcement, the three major indices closed the trading session as follows: DJIA (-3.98%), S&P 500 (-4.84%), NASDAQ (-5.97%). On Friday, the indices finished: DJIA (-5.50%), S&P 500 (-5.97%), NASDAQ (-5.82%).
Tesla (TSLA) reported Q1 2025 total deliveries of 336,681 vehicles (a 13% decline from a year ago and below analysts’ expectations) and total production of 362,615 vehicles. CEO Elon Musk could reportedly leave his post at the Department of Government Efficiency (DOGE) in the coming months.
The ADP employment change beat expectations (120,000) as it increased to 155,000 from the upwardly revised 84,000 (from 77,000). The unemployment rate landed above expectations (4.1%) as it increased to 4.2% from 4.1%. It is the highest reading since November 2024 (4.2%). Nonfarm payrolls beat expectations (140,000) as it increased to 228,000 from the downwardly revised 117,000 (from 151,000). Average hourly earnings month-over-month matched expectations as it increased to 0.3% from the downwardly revised 0.2% (from 0.3%).
The manufacturing PMI for March missed expectations (49.5) as it decreased to 49.0 from 50.3, which snapped back-to-back expansionary readings after 26 consecutive months in contraction (below 50). The non-manufacturing PMI for March missed expectations (53.0) as it decreased to 50.8 from 53.5, which marks nine straight months of expansion. The figure has expanded in 55 of the previous 58 months.
Happening this week...
Q1 Earnings kick off this week with the likes of JP Morgan Chase reporting Friday.
On Thursday, the inflation rate year-over-year for March is expected to decrease to 2.6% from 2.8%, which snapped a streak of four consecutive monthly increases. It was the lowest reading since November 2024 (2.7%). The rate peaked at 9.1% in June 2022. Meanwhile, the core inflation rate year-over-year for March is expected to decrease to 3.0% from 3.1%. It was the lowest reading since April 2021 (3.0%).
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- The Rockline Team
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