Passport to Wall Street

Chip Maker Micron Splits Into Four Business Units To Accelerate AI Strategy

Benzinga News — Thu, 17 Apr 2025 13:24:56 -0400

Micron Technology Inc. (MU ) unveiled an overhaul of its organizational structure aimed at strengthening its position in the fast-evolving artificial intelligence market.

The company is realigning its operations into four new business units, each tailored to meet growing demand for advanced memory and storage solutions across various sectors.

The four units are Cloud Memory Business Unit (CMBU), Core Data Center Business Unit (CDBU), Mobile and Client Business Unit (MCBU), and Automotive and Embedded Business Unit (AEBU).

Each unit will be headed by current executives and target specific markets where AI-driven memory and storage demand is surging.

"This reorganization completes our evolution to a market segment-focused business unit structure, with exciting AI-led growth opportunities in every business unit," said EVP and Chief Business Officer, Sumit Sadana.

"This structure sharpens our ability to partner deeply with customers and build on our tremendous portfolio momentum with differentiated solutions for all end markets."

Raj Narasimhan will lead CMBU, catering to hyperscale cloud and high-bandwidth memory needs. Jeremy Werner will head CDBU, serving original equipment manufacturers and data center clients.

Mark Montierth will oversee MCBU, which focuses on mobile and personal computing devices. Kris Baxter takes charge of AEBU, targeting automotive, industrial and consumer applications.

All four units will report to Sumit Sadana, executive vice president and chief business officer. The new business structure will take full effect at the start of the company's fiscal fourth quarter, beginning May 30, 2025.

The decision follows an announcement made Monday by President Donald Trump and his administration stating that electronic products will not be subject to the 145% retaliatory tariffs imposed on imports from China.

BofA Securities analysts Vivek Arya and Duksan Jang said even if a dire tariff impact happens, Micron has a 30%+ potential upside to historical P/E or PEG multiple at current stock price.

However, yesterday Nvidia (NVDA ) said that the U.S. government will start requiring a license to export chips to China.

Micron will report financial results under the new business structure starting with the fourth quarter of fiscal year 2025.

Price Action: MU shares traded lower by 0.50% at $69.03 at last check Thursday.

'America First Is OK, But Not America Alone,' Says Jamie Dimon As He Calls For US-China Engagement Amid Trade Tensions— 'Start With A Phone Call'

Benzinga News — Thu, 17 Apr 2025 13:24:47 -0400

JPMorgan Chase & Co. (JPM ) CEO Jamie Dimon offered his insights on global trade and U.S.-China relations amid escalating tariff tensions.

What Happened: In a recent interview with the Financial Times, Dimon emphasized the importance of respectful and consistent dialogue between the U.S. and China to ease trade tensions. While acknowledging China's significant economic growth and success, he also highlighted widespread global concerns over its trade practices and regional influence.

Dimon, referring to complaints about China flooding global markets with excess capacity, said, "They are scaring Japan, Korea, Indonesia, Vietnam, India." He urged Chinese authorities to be receptive to addressing these concerns.

The JPMorgan Chase CEO argued against total economic decoupling from China, stating it is neither desirable nor necessary. He said that while it is "definitely possible"..."I don't think that should be the objective." He proposed that the U.S. should be self-dependent and collaborate with allies like Europe, the U.K., Japan, Korea, Australia, Philippines to jointly negotiate for equitable trade agreements.

When asked if President Donald Trump should call Chinese President Xi Jinping, Dimon did not answer directly but said, "I think adults should talk to each other and listen to each other and acknowledge when the other person is right, or at least has a good point." The CEO expressed optimism that the engagement between both countries would happen in the future. "You start with a phone call," said Dimon.

Despite apprehensions about a recent dip in the U.S. dollar, Dimon expressed confidence in the U.S. economy, highlighting its rule of law, innovation, and military power. He cautioned against taking America's position for granted, stating, "America First is OK, but not America Alone." The JPMorgan CEO stated that fragmentation in the Western world is a 'bad idea'. "We don't read a book in 40 years: 'How the West was Lost'," stated the JPMorgan CEO.

Jamie Dimon stated that though he doesn't agree with everything that the Trump administration does, he hopes that Treasury Secretary Scott Bessent would lead the trade deals well.

Why It Matters: This isn't the first time Dimon has expressed his views on trade tensions. Earlier in April, he cautioned that President Donald Trump's tariffs could trigger inflation and slow down the U.S. economy. He warned of potential short-term effects, including inflationary impacts on both imported and domestic goods.

Later in the same month, during JPMorgan's first-quarter earnings call, Dimon offered more insights on the possible effects of these tariffs on businesses and the economy. He spoke with JPMorgan economist Michael Farley, who updated the bank's most current forecast, which calls for 50/50 chances of a recession due to the ongoing global trade tensions.

Meanwhile, the U.S. tariffs on China have risen to 245% while President Donald Trump awaits negotiations talks from Chinese President Xi Jinping.

CBP's Latest Tariff Figures Reveal $500 Million In Collections, Dwarfing Trump's $2 Billion Daily Estimate

Benzinga News — Thu, 17 Apr 2025 13:24:40 -0400

U.S. Customs and Border Protection (CBP) has reported tariff revenue of just over $500 million after the implementation of President Donald Trump's latest trade measures.

This is far below the $2 billion per day figure Trump has often cited while presenting his case for his tariff policies.

The updated numbers come as China's total tariffs include a 125% reciprocal duty, an additional 20% connected with the fentanyl crisis, and targeted levies ranging from 7.5% to 100% on specific goods, according to the latest reports from the White House.

What Happened: CBP shared with CNBC that since April 5, the agency has collected more than $500 million from the newly imposed reciprocal tariffs, which are part of a larger series of trade actions enacted since January 20.

"Even during the brief glitch," CBP said, referring to a recent 10-hour system outage that impacted exemption codes for certain in-transit goods, "CBP's average $250 million/day revenue stream remained uninterrupted."

Why It Matters: Trump has repeatedly said that the U.S. is generating $2 billion a day through tariffs. However, the latest figures indicate that revenue is much lower. Treasury Department data released Monday reports total daily deposits from customs and excise taxes at $305 million.

The CBP collects all tariffs at the point of entry. The discrepancy between Trump's claims and the actual data raises questions about the financial benefits of the tariffs, which have witnessed fluctuating rates across sectors and countries, and a sustained increase on Chinese goods.

While the administration pushes forward with its tariff-centered trade approach, the gap between public claims and official revenue data is increasingly generating attention. With new policies for industries like pharmaceuticals on the horizon, the conversation over the costs and benefits of Trump's tariff agenda is likely to continue.

Lilly's Diabetes Pill Clears Major Trial, Analyst Points To Global Potential

Benzinga News — Thu, 17 Apr 2025 13:24:34 -0400

Eli Lilly And Co (LLY ) on Thursday reported topline Phase 3 results from ACHIEVE-1 trial of orforglipron compared to placebo in adults with type 2 diabetes and inadequate glycemic control with diet and exercise alone.

In the first Phase 3 trial of the ACHIEVE program, orforglipron met the primary endpoint of superior A1C (blood sugar) reduction compared to placebo at 40 weeks, lowering A1C by an average of 1.3% to 1.6% from a baseline of 8.0%, using the efficacy estimand.

BofA Securities analyst Tim Anderson writes, "Arguably one of the biggest, most important, most closely-watched pipeline events in large cap biopharma has just played out. And it was favorable."

Anderson says the only other current oral GLP-1 drug is Novo Nordisk A/S' (NVO ) Rybelsus (semaglutide), a peptide with some limitations.

"The "key" with orforglipron is that it is a "small molecule" drug, meaning easy to scale and produce - recall past manufacturing problems with injectable GLP-1s (from Eli Lilly and Novo Nordisk)," Anderson adds.

An oral drug like this can help expand obesity treatment outside the U.S., especially in developing countries where keeping medications cold is difficult.

BofA writes Eli Lilly is mainly focusing on selling the oral version in markets outside the U.S., where prices need to be lower. Since oral drugs are easier and cheaper to produce, this makes sense.

"Positive results like these, in a skittish market, should be received well," BofA writes.

BofA forecasts 2030 orforglipron sales of around $10 billion compared to a consensus of around $9 billion.

The analyst maintains the Buy rating, with a price forecast of $1,000.

Anderson writes, "On a macro perspective, we believe that given the strength of the Phase II data, positive Phase III ACHIEVE-1 efficacy results were expected. However, in light of Pfizer Inc's (PFE ) recent discontinuation of danuglipron, tolerability and hepatotoxicity have emerged as more important clinical attributes, in our view."

Price Action: LLY stock is up 16.3% at $854.84 at the last check Thursday.

Homebuyers Cautious Due To 'Continued Affordability Constraints And Declining Consumer Confidence:' D.R. Horton Cuts Annual Outlook

Benzinga News — Thu, 17 Apr 2025 13:24:27 -0400

D.R. Horton, Inc. (DHI ) reported second-quarter FY25 results on Thursday.

Sales fell 15% year-over-year (Y/Y) to $7.73 billion, missing the consensus of $8.03 billion. EPS was $2.58, missing the consensus of $2.67. Net sales orders fell 15% Y/Y to 22,437 homes and decreased 17% Y/Y in value to $8.4 billion.

Homebuilding revenue declined 15% Y/Y to $7.2 billion. Homes closed in the quarter fell 15% Y/Y to 19,276 homes.

The sales order backlog of homes under contract as of March 31, 2025, decreased 21% year over year to 14,164 homes and 22% year over year in value to $5.5 billion.

D.R. Horton had 36,900 homes in inventory, of which 23,500 were unsold as of March 31, 2025.

Return on equity was 17.4%, and return on assets stood at 12.2% for the trailing twelve months ended March 31, 2025.

Operating cash flow stood at $210.5 million in the six months ended March 31, 2025.

As of March 31, 2025, the cash balance was $2.5 billion, and the available capacity on its credit facilities was $3.3 billion, for a total liquidity of $5.8 billion.

Buyback: D.R. Horton repurchased 9.7 million shares for $1.3 billion during the quarter. The company's remaining stock repurchase authorization as of March-end was $1.2 billion.

In April 2025, the Board of Directors approved a new $5.0 billion share repurchase authorization, replacing the prior program, which had $1.1 billion remaining following post-quarter-end buybacks.

Dividend: Subsequent to year-end, the company declared the quarterly dividend of $0.40 per share, payable on May 9, to shareholders of record as of May 2, 2025.

FY25 Outlook: D.R. Horton revised its revenue guidance to $33.3 billion-$34.8 billion (from $36.0 billion - $37.5 billion) versus the consensus of $36.4 billion.

It now expects homes closed to be 85,000-87,000 homes (vs. 90,000-92,000 homes prior) for the year.

DHI projects FY25 operating cash flow to be greater than $3.0 billion.

The company revised its share repurchase outlook for FY25 to approximately $4.0 billion (from $2.6 billion-$2.8 billion earlier).

The company continues to expect dividend payments of around $500 million.

David Auld, Executive Chairman, said, "The 2025 spring selling season started slower than expected as potential homebuyers have been more cautious due to continued affordability constraints and declining consumer confidence."

"Our tenured operators are responding appropriately to market conditions by increasing sales incentives where necessary to drive traffic and incremental sales, while carefully balancing pace versus price to maximize returns."

Investors can gain exposure to the stock via IShares U.S. Home Construction ETF (ITB ) and Exchange Listed Funds Trust Long Pond Real Estate Select ETF (LPRE ).

Price Action: DHI shares are down 3.86% at $113.00 premarket at the last check Thursday.

Google Faces A Mammoth $6.6 Billion UK Class Action Lawsuit Over Reported Ad Price Inflation, Market Abuse

Benzinga News — Thu, 17 Apr 2025 13:24:21 -0400

Google, a part of Alphabet Inc. (GOOG ) (GOOGL ), is confronted with a £5 billion ($6.6 billion) class action lawsuit in the U.K. The company is accused of exploiting its dominant market position in the online search industry.

What Happened: The lawsuit was lodged at the Competition Appeal Tribunal earlier this week. The claimants contend that Google's practices allowed it to inflate the prices for advertisements displayed in search inquiries, beyond what a competitive market would allow, Reuters reported.

The lawsuit states that Google entered into agreements with phone manufacturers to have Google Search and the Chrome browser pre-installed on Android devices. It also states that Google paid Apple Inc. (AAPL ) to make Google the default search engine on iPhones, in a bid to suppress competition.

The claim, submitted by competition law expert Or Brook on behalf of thousands of businesses, asserts that Google gave its own advertising services an unfair advantage by equipping its search engine with superior functionality and additional features compared to those of its competitors.

Google has dismissed the lawsuit as "yet another speculative and opportunistic case," pledging to "argue against it vigorously." Brook, however, insists that businesses had little option but to use Google ads, labeling Google as a monopoly and emphasizing that securing a spot on Google's top pages is crucial for visibility.

Why It Matters: In 2020, a market study conducted by the U.K.'s competition regulator revealed that Google earned 90% of the total revenue in the search advertising market.

This lawsuit follows a report from January 2025, which revealed that Google was under investigation by UK officials over its search dominance. The Competition and Markets Authority expressed concerns about how Google's dominant position in search could impact competition in the UK.

Notably, the Sundar Pichai-led company is still appealing an antitrust penalty of €4.3 billion ($4.9 billion) fine imposed by the European Union for exploiting the dominance of its Android mobile operating system by requiring smartphone manufacturers to pre-install Chrome and Search alongside its Play app store.

The current lawsuit seems to be a continuation of these concerns, with businesses now taking legal action against the tech giant's alleged anti-competitive practices.

Google's lawsuit comes at a time when another tech giant, Meta Platforms (META ), is facing a landmark trial in court by the Federal Trade Commission, which could eventually compel the social media giant to divest its Instagram and WhatsApp platforms.

Whistleblower Says DOGE May Have Caused Major Cybersecurity Breach At US Labor Agency

Benzinga News — Thu, 17 Apr 2025 13:24:15 -0400

A federal labor agency has found itself at the center of a cybersecurity controversy after a whistleblower alleged DOGE workers set off a major data breach.

The allegations, shared with Congress and made public by Whistleblower Aid, indicate unauthorized access and possible data exfiltration from the National Labor Relations Board (NLRB).

What Happened: Daniel Berulis, an IT staffer at the NLRB, said in an affidavit that the DOGE Service team was given wide-ranging access to internal systems.

He reported unusual activity beginning in March, such as tampered logging protocols and the removal of roughly 10 gigabytes of sensitive data. NPR reported that the files seemingly included private affidavits, union-related information, and proprietary business documents.

Why It Matters: The NLRB deals with confidential labor complaints and union organizing data. Breaches like these could jeopardize investigations and expose sensitive corporate and worker information. Berulis also made note of attempted logins from a Russian IP address using valid credentials, raising further red flags about security conditions.

Berulis said efforts to report the incident to federal cybersecurity authorities were resisted by agency leadership, and that he had received a threatening message at his home.

Following the disclosure, NPR reported that DOGE allocated two staffers to work part-time at the NLRB.

DOGE has been previously linked with privacy and security concerns across other federal agencies, such as its attempts to access data from the Social Security Administration, taxpayer data, and its reported tracking of employee communications using AI tools.

These latest developments have coincided with news that Elon Musk has reportedly slashed DOGE's projected federal budget savings target from $1 trillion to $150 billion for 2026, making this the second revision amid increasing scrutiny over inflated savings claims and economic risks.

UnitedHealth CEO Says High Cost Of US Health Care 'Simply Not Sustainable'

Benzinga News — Thu, 17 Apr 2025 13:23:05 -0400

UnitedHealth Group Inc. (UNH ) shares were down by more than 21% Thursday, the stock's worst drop since 1998, after the company reported worse-than-expected quarterly results due in part to the rising cost of health care in the U.S. CEO Andrew Witty provided additional insights on the company's earnings call following the print.

What To Know: UnitedHealth cut its fiscal 2025 earnings guidance significantly and said it now expects adjusted earnings in the range of $26 to $26.50 per share versus an earlier range of $29.50 to $30 per share.

The company said the change was partially driven by "heightened care activity indications within UnitedHealthcare's Medicare Advantage business," as utilization rates of physician and outpatient services were higher than expected.

Witty provided more context on the high costs of health care services during the call with analysts.

"We all have to contend with the stubborn fact that health care costs more in the U.S. than it should, even beyond the widely recognized disparities in drug prices," the CEO said.

"Common procedures such as heart bypass surgery, spinal fusions and heart stents are four times as expensive in the U.S. as they are in Germany, Australia, and the U.K. Total Hip Replacements are twice as much. It's simply not sustainable," Witty added.

He pointed to UnitedHealth's Medicaid Advantage and OptumHealth programs as part of the solution for lower costs and improved patient outcomes.

"We know that when a Medicare Advantage patient is in a fully delegated value-based care managed clinic like OptumHealth, they will save even more money for the system, and they will have better personal experience, they have better clinical outcomes, and the government spends less money. It's those sorts of integrated approaches which we think are the response," Witty said.

The health care giant's CEO closed the call by expressing UnitedHealth's "determination to improve" and enthusiasm about the path ahead.

"We remain deeply committed to the value-based care strategy of the company, and we believe that that is the way to solve many of America's health care problems, both from a cost, but most importantly, a patient experience and outcome perspective," Witty told the analysts.

Retail Giant Costco Raises Dividend By 12%

Benzinga News — Thu, 17 Apr 2025 13:21:20 -0400

Costco Wholesale Corp. (COST ) increased its quarterly dividend on Thursday, raising its regular cash payout from $1.16 to $1.30 per share. The proposed increment amounts to a 12% increase in the quarterly dividend.

The revised quarterly dividend will amount to $5.20 annually and is scheduled for distribution on May 16, 2025, to shareholders who hold Costco stock as of the close of business on May 2, 2025.

Costco held $12.4 billion in cash and equivalents as of February 16, 2025. Last week, the retailer reported March same-store sales growth of 9.1%, with the U.S. comparable sales of 8.7%.

As of now, Costco operates 904 warehouse locations around the world. The bulk of its operations, 623 stores are based in the United States and Puerto Rico.

The remainder are spread across markets like Canada, Mexico, Japan, the United Kingdom, South Korea, Australia, and several other countries.

Beyond its physical locations, Costco's online storefronts serve consumers in major markets such as the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan, and Australia.

Costco is due to report third-quarter earnings on May 29.

Costco Wholesale Stock Prediction For 2025

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Costco Wholesale, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For Costco Wholesale, the 200-day moving average sits at $924.32, according to Benzinga Pro, which is below the current price of $967.75.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

Price Action: COST shares closed higher by 0.65% at $974 on Thursday.

Trump Pressures Fed As ECB Delivers 7th Straight Rate Cut

Benzinga News — Thu, 17 Apr 2025 13:20:12 -0400

The European Central Bank cut interest rates for the seventh straight time Thursday, lowering its key rate to 2.25% in a move anticipated by President Donald Trump, who seized the moment to launch a fresh attack on Fed Chair Jerome Powell.

In a post published Thursday morning on Truth Social, Trump predicted the ECB would slash rates again, calling out Powell for falling behind his European counterpart. "The ECB is expected to cut interest rates for the 7th time," Trump wrote.

Trump added that "Too Late" Jerome Powell, who he claimed is consistently late and wrong, released yet another report that he called a typical, total "mess"-despite falling oil and grocery prices and increasing U.S. tariff revenues.

The president went as far as calling for Powell's removal, saying, "Powell's termination cannot come fast enough!"

ECB Slashes Interest Rates As Trade Tensions Weigh On Outlook

The ECB justified the 25-basis-point reduction citing both progress on disinflation and heightened economic uncertainty tied to trade tensions, a direct nod to ongoing U.S. tariff policies.

"The disinflation process is well on track. Inflation has continued to develop as staff expected," the central bank said in its statement, adding that volatility in financial markets and weaker confidence among firms and households could further drag euro-area growth.

"The adverse and volatile market response to the trade tensions is likely to have a tightening impact on financing conditions," Frankfurt stated.

Powell, speaking a day earlier at the Economic Club of Chicago, took a more cautious stance. While acknowledging inflationary risks tied to new tariffs and a weakening growth outlook, he said the Fed is in no rush to adjust interest rates at this stage.

He emphasized that market volatility, which has surged in recent sessions, falls outside the central bank's mandate.

Asked whether the Fed would intervene to curb market volatility-a concept often referred to as the "Fed put"-Powell said, "I'm going to say no," adding that such action falls outside the central bank's mandate as long as markets are functioning in an orderly manner.

Trump Ramps Up Trade Momentum

Trump also pointed to progress on the trade front, claiming improving momentum across multiple negotiations.

"Had a very productive call with the President of Mexico yesterday," he wrote. "Likewise, I met with the highest level Japanese Trade Representatives... Every Nation, including China, wants to meet! Today, Italy!"

U.S. equity futures rebounded early Thursday in New York, trimming Wednesday's steep losses.

Contracts on the tech-heavy Nasdaq 100 gained 0.8% in premarket trading, after the index dropped 3% in the prior session. Futures on the S&P 500 rose as well by 0.6%, after the SPDR S&P 500 ETF Trust (SPY ) fell 2.2% Wednesday.

Gold erased earlier losses and surged to $3,330 per ounce as investors sought safety amid policy uncertainty.

In currency markets, the euro changed hands at 1.1350 dollars, down 0.4%.

Market Update: Dow Falls 400 Points on UnitedHealth Headwinds

Rachel Hemple — Thu, 17 Apr 2025 11:48:06 -0400

Stocks were mixed on Thursday, with the S&P 500 Index (SPY ) rising with the broader market and tech-heavy Nasdaq Composite (QQQ ) climbing above the flatline, while the Dow Jones Industrial Average (DIA ) dropped over 400 points -- driven by UnitedHealth Group's (UNH ) earnings miss -- as investors traded the last session of the week.

Shares of UnitedHealth plunged over 20% on Thursday after the healthcare giant cut its annual profit outlook due to higher-than-expected Medicare plan cuts, signaling potential headwinds for the insurance industry. UnitedHealth is the largest Dow component by weight.

The company said increased demand for outpatient and physician services in its Medicare Advantage plans are topping its planned increase for the year; the healthcare insurance industry has been impacted by rising costs since mid-2023 for services under Medicare plans for older adults and individuals with disabilities.

United now expects 2025 adjusted profit per share to range from $26 to $26.50, compared with its prior guidance range of $29.50 to $30 per share.

Investor sentiment dipped on Wednesday after Federal Reserve Chair Jerome Powell warned that President Donald Trump's tariff policies present a "challenging scenario," for policymakers as he expects the duties to increase inflation and slow economic growth.

Target Under Pressure From Discretionary Spend Slowdown, Mounting Inventory Risk, Goldman Sachs Downgrades Stock

Benzinga News — Wed, 16 Apr 2025 14:49:15 -0400

Goldman Sachs analyst Kate McShane today downgraded the shares of Target Corp (TGT ) from Buy to Neutral and lowered the price forecast from $142.00 to $101.00.

The analyst is concerned about slowing growth in discretionary categories amid a volatile macro environment. Risks from potential sales declines, tariff impacts, and weaker consumer data from HundredX and Placer also weighed on the outlook.

Since joining the Americas Buy List in July 2019, TGT shares have risen 6.5%, trailing the S&P 500's 80% gain, said the analyst.

TGT is facing delayed recovery in discretionary spending due to weakened consumer sentiment, tariff uncertainty, and inflation concerns.

With roughly 53% of its FY24 sales tied to discretionary items, TGT is more vulnerable to shifting consumer behavior than peers like BJ's (BJ ), Costco (COST ), or Walmart (WMT ), which have greater grocery exposure.

Early first-quarter data shows sales softness, though seasonal events like Valentine's Day still drew strong spending, noted the analyst.

Tariff risks and weaker sales trends pose downside risk to TGT's FY25 earnings, especially if operating leverage declines and SG&A costs remain high.

Target may need to raise prices by 1%-11% to maintain operating margins depending on tariff mitigation and cost-cutting scenarios.

Elevated inventory levels and early product receipts could pressure margins, especially if February's softer sales trends persist and lead to increased markdowns.

Placer data shows Target's foot traffic declined 5.4% YoY in April, and HundredX metrics reveal worsening consumer sentiment, with Target's Net Purchase Intent and Net Promoter Score both dropping below historical averages.

Declines in purchase intent span all income and frequency segments, with California and Texas showing the sharpest sentiment declines year-over-year, the analyst highlighted.

Keeping the above points in mind, the analyst lowered FY25 comp growth estimate to 0.0% from +1.2% and EPS estimate to $8.61 from $9.27.

Price Action: TGT shares traded lower by 2.44% at $89.84 at the last check Wednesday.

Facebook Hosts Multiple Black Market Groups Illicitly Trading Uber And DoorDash Driver Accounts: Report

Benzinga News — Wed, 16 Apr 2025 14:49:09 -0400

Facebook has been found hosting several groups where Uber (UBER ) and DoorDash (DASH ) driver accounts are being traded, thereby circumventing the necessary screening procedures and potentially posing a safety risk.

What Happened: Meta Platform's (META ) Facebook is hosting numerous groups where Uber driver accounts can be bought or rented. This allows individuals to drive for Uber and other rideshare and delivery apps like DoorDash without undergoing the mandatory screening process or even having a valid driver's license, revealed an investigation by the Tech Transparency Project (TTP), an initiative of the Campaign for Accountability (CfA).

Meta did not immediately respond to Benzinga's request for comment.

The investigation identified 80 such Facebook groups with a combined membership of over 800,000 users engaged in this trade, in clear violation of Meta's policies against fraud. The existence of these groups suggests that content moderation on Facebook is not being effectively enforced.

Within these groups, users shared listings of Uber and DoorDash driver accounts available for sale or rent, while potential buyers inquired about the availability of these accounts across different U.S. cities, states, and even international markets.

Michelle Kuppersmith, CfA Executive Director, stated, "This is just the latest example of Meta failing to rid its platform of illicit black markets."

"By facilitating this market of fake accounts, Meta is exacerbating a serious public safety problem," Kuppersmith added.

Why It Matters: This isn't the first time that Meta has been in the spotlight for its content moderation policies. In 2022, a TTP report revealed that some sellers were offering document packages for account verification, including IDs and Social Security cards. Meta later deleted those accounts.

In January, Meta shifted its content moderation approach, moving from third-party fact-checkers to a user-driven "community notes" model for flagging questionable content.

CEO Mark Zuckerberg explained, "So, we're going to continue to focus these systems on tackling illegal and high-severity violations, like terrorism, child sexual exploitation, drugs, fraud and scams." However, he also stated, "Too much harmless content gets censored, too many people find themselves wrongly locked up in 'Facebook jail,' and we are often too slow to respond when they do."

Notably, this investigative report comes at a time when Zuckerberg is facing a historic antitrust trial that could lead to the disintegration of his social media empire comprising Facebook, Instagram and WhatsApp.

The momentum rating of META is 60.72% while its growth rating is 74.91%, according to Benzinga's Proprietary Edge Rankings.

'I'm Going To Say No': Powell Rejects Idea Fed Would Rescue Falling Markets

Benzinga News — Wed, 16 Apr 2025 14:49:02 -0400

Federal Reserve Chair Jerome Powell hinted the growing risk of higher inflation and slower growth tied to unexpectedly large trade tariffs rolled out earlier this month by the Donald Trump administration.

In remarks delivered Wednesday at the Economic Club of Chicago, Powell said that growth has softened in the first quarter of 2025, while inflation is "still running a bit above our 2% objective."

The Fed Chair highlighted that surveys from households and businesses showed a notable deterioration in sentiment.

Uncertainty around trade policy has been the dominant driver, causing many forecasters to cut their full-year outlooks. Nevertheless, most estimates still point to moderate, positive growth ahead.

"The new administration is in the process of implementing a substantial policy changes in four distinct areas: Trade immigration, fiscal policy and deregulation. These policies are still evolving and their effects on the economy remain highly uncertain," Powell said.

Inflation Eased But Tariffs Pose Fresh Risks

Inflation is cooling, but not fast enough. Total Personal Consumption Expenditures (PCE) prices-the Federal Reserve's preferred inflation gauge-rose 2.3% year-over-year through March. Core PCE, which excludes food and energy, climbed 2.6%.

These figures are well below the 2022 highs but still exceed the Fed's 2% target. Powell noted that inflationary progress continues "at a gradual pace," and that the central bank remains alert to any threats of reacceleration.

"Tariffs are highly likely to generate at least a temporary rise in inflation," he said.

While some of that impact may be short-lived, Powell cautioned that it could persist depending on how long the price pressures take to pass through the economy.

The Fed's dual mandate-maximum employment and price stability-could be tested in the months ahead if inflation continues to rise even as growth slows. Should the two goals come into conflict, Powell said the Fed would weigh how far the economy is from each and the likely time needed to meet both targets.

"For the time being, we are well positioned to wait for greater clarity before considering any adjustments to our policy stance," Powell said.

Powell Fields Questions On Tariffs, Labor, Market Volatility

During the Q&A session, Powell reiterated the Fed's role in ensuring that inflation shocks from tariffs remain temporary. "Our role is to make sure that this will be a one-time increase in prices and not something that turns into an ongoing inflation process," he said.

Asked whether tariffs could result in a supply shock, Powell acknowledged the risk of persistence. "It can take time to resolve, and what would have been a one-time inflation shock could be extended-perhaps more persistent-and we would worry about that."

On immigration and labor market dynamics, Powell noted a decline in immigration could tighten labor supply, but layoffs in government-funded sectors have not yet materially affected the national workforce of 170 million people. "We're really hearing significant layoffs in cities with universities and research hospitals," he said, though the total economic impact remains hard to quantify.

Regarding fiscal policy, Powell called the federal debt "unsustainable in the long term," while emphasizing that "no one really knows how much further we can go." He underscored the importance of bipartisan cooperation to address ballooning costs in Medicare, Medicaid and Social Security.

On market speculation about a so-called "Fed put"-the idea that the central bank would intervene if markets plunge-Powell was unequivocal: "I'm going to say no."

While he acknowledged that markets are currently facing high levels of uncertainty, especially around policy changes and inflation, he made clear that the Fed's decisions are not driven by equity market volatility alone.

He indicated that both equity and fixed-income markets are functioning in an orderly way, dismissing speculations of Treasuries dumping from foreign investors.

"Market is processing historically unique developments," he said.

The Fed Chair also confirmed that the central bank stands ready to provide U.S. dollars to foreign central banks via its standing swap lines in the event of global liquidity strains.

As for artificial intelligence, Powell described the technology's potential as "truly remarkable," but cautioned that its long-term labor impact remains uncertain. "It may be the case that AI replaces more jobs than it creates-we just don't know," he said.

Amazon's Aggressive Price Cuts Hurt Sephora's US Sales, Says LVMH CFO Cecile Cabanis: 'We Try To Avoid This Technique'

Benzinga News — Wed, 16 Apr 2025 14:48:56 -0400

Amazon.com Inc.'s (AMZN ) aggressive pricing tactics are putting pressure on Sephora's e-commerce performance in the U.S., LVMH Moët Hennessy Louis Vuitton (LVMHF ) CFO Cecile Cabanis revealed during the company's first quarter of 2025 earnings call on Monday.

What Happened: "In the U.S., we have a bit less momentum when it comes to e-commerce, especially because Amazon is being very aggressive and being aggressive is mostly regarding price and we try to avoid this technique," Cabanis told analysts during the revenue call as LVMH reported disappointing first-quarter results.

The luxury conglomerate missed sales forecasts with a 3% decline in quarterly revenue, falling well below analyst expectations of 2% growth, according to Reuters. The U.S. market saw a 3% sales drop, with Cabanis specifically identifying Sephora as the main driver of the American deceleration.

LVMH's challenges come amid broader economic uncertainty following President Donald Trump's recent tariff announcements. "These days, parameters are changing every hour," Cabanis noted, highlighting complications in conducting business amid trade tensions.

What Happened: The company's core fashion and leather goods division, representing nearly half of group sales and over 75% of profits, posted a 5% decline. Meanwhile, sales in Asia excluding Japan tumbled 11%, reflecting continued weakness in China.

Amazon's e-commerce dominance continues despite these competitive pressures. JPMorgan analyst Doug Anmuth recently projected accelerated U.S. e-commerce growth through 2025, naming Amazon his "Best Idea" despite a slight market share dip to 46.1% in the fourth quarter of 2024.

Needham analyst Laura Martin suggested Amazon uses its e-commerce business as a "loss-leader," noting the company's product sales have stagnated while higher-margin services revenue grows four times faster.

Rivian's 'US-Centric' Supply Chain Could Offer Edge Amid Trump's Auto Tariffs, Says CEO RJ Scaringe

Benzinga News — Wed, 16 Apr 2025 14:48:49 -0400

Rivian Automotive Inc. (RIVN ) founder and CEO RJ Scaringe has said the company boasts a "U.S.-centric" supply chain amid Donald Trump's 25% tariffs on the auto industry.

What Happened: In an appearance on Fox Business, the CEO shared that Rivian's vehicles are manufactured locally in the U.S. at a facility in Normal, Illinois. He went on to describe how Rivian has been focused on building the company's supply chain and 'production footprint' in the country.

Rivian manufactures major components of its vehicles, like the motors and the battery, domestically. However, Scaringe pointed out that the aluminum and steel supply chain for the company is a 'mix'.

He then called the automotive supply chain 'complex' with lots of factors at play. It's worth noting that Scaringe reiterated Rivian was working on alternatives in light of the tariffs, but it could be difficult.

Speaking on the restrictions surrounding the exports of rare earth metals from China, Scaringe said it is a challenge for all electric vehicles. 'In terms of the processing of the materials, that happens almost exclusively in China.'

Rivian currently sells the R1S, R1T, as well as Fleet vehicles, the Delivery 500, and the Delivery 700. The company has the Rivian R2 and the R3 in the pipeline.

Why It Matters: Scaringe's comments come at a time when the U.S. auto sector is grappling with uncertainty about the Trump administration's tariffs.

The U.S. has seen growth in the domestic EV sector, with more drivers now willing to adopt EVs as their primary vehicles.

However, analysts maintain that the tariffs could hurt U.S. companies like Rivian, General Motors Co. (GM ), and Ford Motor Co. (F ) amid declining demand and increasing costs.

There could be a silver lining amid the uncertainty as Trump noted that he may provide some relief to a few auto manufacturers who "need a little bit of time" to acclimate themselves to the new tariff environment. Trump's comments led to an increase in the value of auto stocks.

Price Action: RIVN stock currently trades for $11.91 on the NASDAQ, according to Benzinga Pro data.

Applied Materials, Lam Research, KLA Drop Amid Fresh Trade War Fears, Revenue Risk

Benzinga News — Wed, 16 Apr 2025 09:44:00 -0400

Chip equipment stocks Applied Materials, Inc. (AMAT ), Lam Research Corp (LRCX ) and KLA Corp (KLAC ) are trading lower Wednesday, in line with the semiconductor sector's fear of repercussions from the Trump administration's tariff attack on countries including China.

Also, the chip equipment company ASML Holding reported its first-quarter results on Wednesday. ASML reported quarterly revenue of €7.742 billion or $8.764 billion, beating analyst estimates of $7.760 billion.

The company reported basic earnings of €6 or $6.83 per share, above estimates of $5.760. CFO Roger Dassen outlined the potential fallout from tariffs imposed on complete system shipments into the U.S., parts and tools required for ASML's field operations within the U.S., the material imports that ASML needs to manufacture in its U.S.-based facilities, and the reciprocal tariffs imposed by other countries on ASML's shipments from the U.S.

Reuters reports, citing industry calculations, that the new tariffs could cost U.S. semiconductor equipment makers more than $1 billion annually.

Applied Materials, Lam Research, and KLA may each suffer a loss of close to $350 million over a year related to the tariffs.

Chip equipment makers have already lost billions in revenue due to the Biden administration's semiconductor sanctions on China.

The Trump administration is weighing further duties on the chip industry and initiated a probe into their imports on Monday.

Applied Materials, Lam Research stocks have tanked ~30% in the last 12 months.

Needham analyst Charles Shi and KeyBanc analyst Steve Barger had predicted that U.S. tariffs on China would weigh on Applied Materials' second-quarter results, considering the company's exposure to the country. Barger noted ~$400 million impact in fiscal 2025, half of which will affect the second quarter, and that China exposure would drop to ~25% this quarter.

Applied Materials acquired a 9% stake in Besi in April to advance hybrid bonding for energy-efficient chip packaging.

Goldman Sachs analyst Toshiya Hari expects Lam Research to outperform its immediate peers in 2025, backed by a quarterly recovery in the overall Wafer Fab Equipment market.

In February, Lam Research committed $1.2 billion to boost India's semiconductor ecosystem. The country aims for a $63 billion chip market by 2026.

Price Actions: AMAT stock is down 4.43% at $138.99 premarket at last check on Wednesday. LRCX is down 4.44%, and KLAC is down 2.46%.

Dan Ives Says Tesla 'Best Positioned' To Deal With Tariffs: 'It Will Ultimately Be Finished Cars Vs Auto Parts'

Benzinga News — Wed, 16 Apr 2025 09:43:53 -0400

Wall Street analyst Dan Ives has said that Tesla Inc. (TSLA ) is best suited to deal with the auto tariffs levied by the Donald Trump administration.

What Happened: During an interview with Yahoo Finance, Ives shared that the Elon Musk-led EV giant was 'best positioned' to deal with the tariffs relative to the Detroit companies - General Motors Co. (GM ), Ford Motor Co. (F ), and Stellantis Inc. (STLA ).

He then said that despite Tesla still being impacted by the tariffs, it's limited to auto parts only. "It will ultimately be finished cars vs auto parts. I think that'll be a significant difference, " Ives said.

However, Ives also exercised caution. 'When it comes to Tesla, I think the worry is what does retaliatory look like in China,' he said before outlining how the company has a crucial six months ahead with Tesla's autonomous driving tech as well as the Cybercab in Austin, Texas.

Ives also reiterated that Tesla's declining sales figures in Europe, as well as the challenges it faces in the U.S., have to do with Musk's 'self-inflicted brand issues,' alluding to the billionaire's involvement with the Trump administration.

Why It Matters: Ives's comments signal Tesla's strong position in the U.S. domestic EV market, where it dominates in sales with a 43% market share in the EV sector in Q1 2025.

However, that hasn't stopped Tesla owners in the U.S. from experiencing problems like targeted vandalism as well as rising insurance premiums and low used car values, likely due to Musk's right-wing politics.

Amid the tariffs, Musk's company recently suspended all new orders for its U.S.-made Model S and Model X in China. Despite most of Tesla's production taking place domestically, the company's plans for mass producing the Cybercab and the Semi have been affected by the tariffs.

However, the Trump administration indicated that it would be open to providing relief to some auto manufacturers amid the tariffs, which saw auto stocks rise. Trump said some automakers "need a little bit of time" to adjust to the new rules.

Price action: GM stock is currently trading for $44.54 on NYSE, according to Benzinga Pro data.

China Now Faces Up To 245% Tariffs On Certain Imports, Says White House: Here's What You Should Know

Benzinga News — Wed, 16 Apr 2025 09:43:44 -0400

Amid the ongoing tariff dispute between the U.S. and China, a White House fact sheet has revealed that President Donald Trump's administration has raised tariffs on Chinese imports by up to 245%.

What Happened: According to a fact sheet released by the White House late Tuesday, "China now faces up to a 245% tariff on imports to the United States as a result of its retaliatory actions."

Tariff Timeline:

The tariff war started with President Trump imposing a 20% tariff on China after he took office, a 34% levy on April 2nd, and an additional 50% duty in response to China's retaliatory threats, dramatically heightening the initial tariffs to 104%.
China responded to this by increasing its tariffs by 84%. Trump later hiked the 104% to 125% "based on the lack of respect" from China, according to him.
Eventually, last week on Friday, China too raised its levies on U.S. imports to 125%, while U.S. tariffs on China stood at 145%.
However, in the latest White House fact sheet, which focuses on the tariffs on foreign critical minerals and their derivative products, Trump also announced a tariff hike of up to 245% on Chinese imports.

The tariffs on critical minerals and their derivative products were levied to protect the U.S. defense capabilities, infrastructure development, and technological innovation, as per the fact sheet.

Why It Matters: China is one of the major exporters to the U.S. According to a recent report by Reuters, no other country comes close to matching China's sales of more than $400 billion in goods to the U.S. each year.

While the other countries are in the process of negotiating lower tariffs during the 90-day pause, the battle between China and the U.S. is heating up.

Ahead of the 245% hike on Tuesday, the New York Times report broke down the China tariffs on various products imported into the U.S.

According to that report, the imports of syringes and needles had the highest tariff rate of 245%, followed by lithium-ion batteries of 173%, squid with 170%, wool sweaters with 169%, and 159% on plastic dishes. While these were the top five tariffed products, the children's books had 0% tariff, being the lowest tariffed products.

Price Action: The CSI 300 Index was trading 0.70% lower as of the publication of this article, whereas the futures on Dow Jones dropped by 0.47%, the S&P 500 futures were lower by 1.03%, and the Nasdaq 100 declined 1.69% on Wednesday.

The SPDR S&P 500 ETF Trust (SPY ) and Invesco QQQ Trust ETF (QQQ ), which track the S&P 500 index and Nasdaq 100 index, respectively, ended on a mixed note on Tuesday. The SPY was up 0.28% to $537.61, while the QQQ advanced 0.11% to $457.99, according to Benzinga Pro data.

Mark Zuckerberg Defends Meta In FTC Trial Over $6 Billion Offer To Acquire Snapchat: 'We Would Have Accelerated Their Growth'

Benzinga News — Wed, 16 Apr 2025 09:43:34 -0400

More than a decade after Snap Inc. (SNAP ) turned down a multibillion-dollar buyout from Facebook, the failed deal is back in the spotlight as Mark Zuckerberg testifies in Meta Platforms Inc.'s (META ) high-stakes antitrust trial.

What Happened: On Tuesday, during his second day on the witness stand, Zuckerberg addressed a 2013 email in which he offered $6 billion to acquire Snapchat-double the $3 billion previously reported, according to a report by Business Insider.

"I delivered the offer to Evan and he seemed to take it well," Zuckerberg wrote in the email, referencing Snap CEO Evan Spiegel. "He told me he thought he could get it done and that he'd call me back quickly."

The deal never materialized. Zuckerberg told the court he believed Snapchat "wasn't growing at the potential that it could" and added, "If we would have bought them, we would have accelerated their growth, but that's just speculation."

The Federal Trade Commission introduced the email as part of its argument that Meta pursued acquisitions like Instagram and WhatsApp to eliminate competition and maintain dominance in the social media space.

Snap spokesperson Monique Bellamy told the publication, "Anticompetitive behavior can often slow and thwart growth for smaller companies... Meta's attempt to buy Snap, and then egregiously copy its features, was an attempt to do just that."

While testifying, Zuckerberg acknowledged that Snapchat was and continues to be a significant competitor.

Why It's Important: The FTC's lawsuit could reshape the tech landscape. It accuses Meta of using a "buy or bury" strategy to suppress rivals, potentially forcing the company to divest Instagram and WhatsApp.

Meta denies wrongdoing, arguing it faces strong competition from platforms like TikTok and YouTube, the platform owned by Alphabet Inc.'s (GOOGL ) (GOOG ) Google.

The trial is expected to last eight weeks.

On Monday, the trial revealed internal strategies, such as Zuckerberg's unexecuted plan to reset all Facebook users' connections in 2022, aimed at keeping the platform culturally relevant.

Price Action: On Tuesday, Meta's stock fell by 1.87%, closing at $521.51, according to Benzinga Pro data.

META holds a momentum rating of 60.72% and a growth rating of 74.91%, based on Benzinga's proprietary Edge Rankings.

Hongkong Post Stops US Package Service, China E-Commerce Stocks Drop

Benzinga News — Wed, 16 Apr 2025 09:43:28 -0400

Hongkong Post announced on Wednesday that it would suspend its postal services for parcels containing goods to the United States, citing what it described as the U.S. government's "bullying" and "unreasonable" actions regarding new tariffs and postal fees.

The Details: Effective immediately, Hongkong Post has stopped accepting parcels containing goods for delivery to the U.S. by land and sea. Acceptance of airmail parcels will also stop on April 27.

The move is a direct response to the Trump administration's decision to eliminate the duty-free de minimis exemption for shipments from Hong Kong and to impose steep new tariffs and per-item postal fees on goods entering the U.S.

"The US is unreasonable, bullying and imposing tariffs abusively. Hongkong Post will definitely not collect any so-called tariffs on behalf of the US and will suspend the acceptance of postal items containing goods destined to the US," the government of Hong Kong said in a statement.

The suspension comes amid escalating trade tensions between the U.S. and China. President Donald Trump recently closed the de minimis loophole, which previously allowed small parcels under $800 to enter the U.S. tax-free.

The new tariffs and fees are part of a broader crackdown on imports from China and Hong Kong after the U.S. accused retailers like Shein and Temu of exploiting the exemption to avoid taxes and customs checks while undercutting American companies.

Stocks To Watch: Shares of Temu's parent company, PDD Holdings Inc. (PDD ), are trading lower on Wednesday. Other Chinese e-commerce giants like Alibaba Group Holding Ltd. (BABA ) and JD.com, Inc. (JD ) were also down by more than 3% at the time of publication.

ASML Shares Slide After CFO Highlights Tariff-Driven Uncertainty For 2025

Benzinga News — Wed, 16 Apr 2025 09:43:00 -0400

ASML Holding NV (ASML ) CFO Roger Dassen explained the impact he expects the tariffs to have on the company in 2025 during an analyst call.

What Happened: On Tuesday, following ASML's first-quarter earnings, Dassen answered questions regarding the tariffs and their impact on the company's performance.

While stating that the situation was still quite dynamic, Dassen outlined the potential fallout that he foresees across four key areas of the company's supply chain.

The first category he says is the tariffs imposed on complete system shipments into the United States. Followed by tariffs on the parts and tools required for field operations within the U.S., which is the second category.

Third is tariffs on the material imports that it needs to manufacture in its U.S.-based facilities. Dassen notes that the company does "have some manufacturing capability in the US. So anything related to that would be the third category."

Finally, the fourth category pertains to the reciprocal tariffs imposed by other countries on ASML's shipments from the United States.

Dassen then mentions the extent to which the tariffs will have an impact on global GDP and on total market demand as another factor to consider. In the end, however, he mentions that the company is doing all it can to ensure that the impact on its finances is "as limited as possible."

Why It Matters: According to ASML's 2024 annual report, the company generates a bulk of its sales in China, South Korea, Taiwan, and Japan, at 36%, 23%, 15%, and 4%, respectively.

These are all countries on which the U.S. has imposed reciprocal tariffs, and while tariffs on all but China are paused, analysts such as Ben Barringer of Quilter Cheviot believe the impact will be "widespread," before adding that it was still too early to tell the kind of effect the company will have to CNBC's Squawk Box Europe.

ASML posted a better-than-expected first-quarter performance yesterday, but net bookings witnessed a slowdown, coming in below consensus estimates.

Price Action: The stock is down 4% in premarket trading on Wednesday, and is down over 30% in the past year.

March Retail Sales Post Highest Surge In Over Two Years As US Consumers Anticipate Tariff Jitters

Benzinga News — Wed, 16 Apr 2025 09:42:04 -0400

Retail sales in March grew at the fastest pace in over two years, underscoring how American consumers accelerated their spending ahead of anticipated price distortions stemming from President Donald Trump's tariffs.

According to advance estimates from the U.S. Census Bureau, retail and food services sales rose to $734.9 billion in March 2025. That's up 1.4% from the previous month. This marked a sharp acceleration from February's 0.2% gain and exceeded economists' expectations for a 1.3% increase.

Year-over-year, retail sales climbed 4.6%, the strongest annual growth since February 2023 and a notable improvement from the prior month's 3.1% increase.

The most significant contributor to the monthly surge was motor vehicle and parts dealers, with sales jumping 5.3%. Building materials and garden equipment stores followed with a 3.2% gain, while food services and drinking places rose 1.8%.

Not all segments saw growth. Sales at gasoline stations fell 2.5%, while department stores posted a modest 0.3% decline.

Excluding gasoline and motor vehicles, retail sales rose 0.8% in March, matching February's revised figure.

Market Reactions

U.S. equity futures declined sharply in premarket trading Wednesday, weighed down by fresh export restrictions targeting China-bound chips from Nvidia Corp. (NVDA ) and other semiconductor firms.

As of 8:40 a.m. Eastern Standard Time, S&P 500 futures were down 0.8%, while Nasdaq 100 contracts dropped 1.5%, reflecting investor jitters over the escalating tech trade tensions.

Shares of Nvidia plunged 6.5% in the premarket, with Advanced Micro Devices Inc. (AMD ) also tumbling 7%. The sell-off came after overnight reports of tightened U.S. export controls affecting advanced chip sales to China.

Adding to the sector's woes, Dutch semiconductor heavyweight ASML Holding N.V. (ASML ) reported weaker-than-expected first-quarter revenue, sending its shares down 4.5% in European trading.

Amid the risk-off sentiment, gold extended its historic rally. Bullion surged over 2% to hit $3,320 per ounce, bringing its year-to-date gains to 23% as investors continue to seek safe-haven assets.

Coinbase Warns Of Crypto Bear Market, But Says A Recovery In 2025 Is Possible

Benzinga News — Wed, 16 Apr 2025 09:41:58 -0400

Coinbase Institutional Research (COIN ) has cautioned investors to adopt a more defensive approach to crypto markets in the near term, warning that recent price declines and deteriorating sentiment suggest a potential "crypto winter" may be underway.

What Happened: In its report published on April 15, the research team highlighted that both Bitcoin and the COIN50 Index have fallen below their 200-day moving averages, a classic indicator of bearish market conditions.

"The total crypto market cap (excluding BTC) has declined 41% since December 2024," the report noted, bringing the figure down to $950 billion, a level not seen since early 2022.

Coupled with venture capital funding still down 50-60% from its 2021 peak, the report argues these signs "warrant taking a defensive stance on risk for the time being."

Despite the current downturn, Coinbase remains cautiously optimistic about the second half of the year.

"We believe that crypto prices may find their floor in mid-to-late 2Q25 - setting up a better 3Q25," the team wrote, suggesting that a tactical approach now could lead to opportunities once sentiment resets.

Coinbase further argued that traditional definitions of bull and bear markets, such as a 20% drop in prices, fail to adequately capture crypto's unique volatility profile.

Instead, the firm emphasized the relevance of alternative metrics like risk-adjusted performance (in standard deviation terms) and the 200-day moving average (200DMA).

"This approach enhances the precision needed for actionable insights in dynamic market conditions," the report explained.

Why It Matters: The sell-off, while most apparent in altcoins, has not spared Bitcoin.

Though BTC has declined by less than 20% from its recent highs, it has still broken below key technical support levels, signaling a broader shift in momentum.

Meanwhile, the COIN50 Index, representing the top 50 tokens by market cap, has "been unequivocally trading in bear market territory since the end of February."

Broader macroeconomic factors are also weighing on digital assets.

Global tariff escalations, fiscal tightening and sluggish equity markets have led to "paralysis in investment decision making," Coinbase said, noting that these conditions make it difficult for crypto to decouple and rally on its own.

Nonetheless, the report concludes that investors should not ignore the potential for a rapid turnaround once macro and sentiment headwinds ease.

"When sentiment finally resets, it's likely to happen rather quickly," the analysts wrote, noting the importance of positioning strategically now to benefit from a stronger Q3.

United Airlines To Cut Back On Flights This Summer As It Anticipates Decline In Demand

Benzinga News — Wed, 16 Apr 2025 09:41:15 -0400

United Airlines Holdings Inc. (UAL ) said it will roll back its flight operations this summer as the company readies itself for a decline in air travel.

What Happened: In a full-year forecast released by the company, United Airlines announced it will cut its flight schedule by 4% starting in July, owing to softer customer demand.

The airline also announced it will retire 21 older aircraft from its fleet as well as scale back on off-peak flights on days with lower demand for air travel, which the company says is part of 'prudent adjustments to the utilization rate of its fleet'.

The airlines also offered two forecasts - one scenario outlined a stable economy whilst the other outlined a 'recessionary environment'. United said it earned $0.91 per share in Q1 2025.

Why It Matters: The news comes in as United recorded over $13.21 billion in revenue for the quarter, amid uncertainty as Donald Trump's tariffs wreak havoc in the global markets.

Delta Air Lines (DAL ) being the leader in the sector, experienced a surge in stock value after the Donald Trump administration announced a 90-day halt on all tariffs, which had cast doubts over the company's 2025 plans.

However, the aviation industry in the U.S. faces uncertainty with China imposing a halt on all imports of aircraft made by manufacturer Boeing Co. (BA ) into the country.

Boeing could face another challenge as it grapples with a potential $3.4 million in modification costs to its fleet as the FAA proposes an airworthiness report after it reviewed an incident involving a Boeing aircraft where a passenger got stuck in the onboard lavatory.

Price action: UAL stock experienced a 29.79% YTD in value and currently trades for $67.00 on the NASDAQ, according to Benzinga Pro data.

Trump Orders Critical Minerals Probe As China Tightens Controls Over Rare Commodities In Retaliatory Move

Benzinga News — Wed, 16 Apr 2025 09:40:19 -0400

President Donald Trump ordered a probe into tariffs on critical mineral imports, commodities that are essential for the defense, energy, and technology sectors.

What Happened? On Tuesday, Trump signed an executive order directing Commerce Secretary Howard Lutnick to conduct a national security review under Section 232 of the Trade Expansion Act-the same authority previously used to impose tariffs on steel and aluminum. Lutnick has 180 days to report back with findings, including recommendations on whether and how tariffs should be applied.

The probe will assess vulnerabilities in the supply chains of 50 minerals, including all the steps, from raw extraction to producing semi-finished goods like battery cathodes and wind turbines. The list will include rare earth elements and metals like cobalt, nickel, lithium, and uranium.

This order follows China's April 4 move to impose export controls on seven rare earth elements, which has effectively halted global shipments, as China currently supplies 30 of the 50 critical minerals listed by the U.S. Geological Survey.

Why It Matters? The U.S. reliance on imported critical minerals, particularly from geopolitical rivals like China, poses serious security and economic stability risks. These minerals are essential for advanced military systems, electric vehicles, renewable energy infrastructure, and consumer electronics.

Critical minerals experts Gracelin Baskaran and Meredith Schwartz from the Center for Strategic and International Studies warned about the lack of alternative supply chains.

"The restrictions apply to seven medium and heavy rare earths: samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium. The United States is particularly vulnerable to these supply chains. Until 2023, China accounted for 99 percent of global heavy REEs processing," they said in a discussion.

Baskaran and Schwartz noted that these minerals are foundational to advanced military systems, yet the U.S. has no capacity for heavy rare earth separation today.

Trump might find the solution on the seabed floor. His administration is reportedly drafting an executive order to fast-track seabed mining, and potato-sized nodules on the ocean floor contain vast amounts of cobalt, nickel, and rare earths.

"As the Trump administration has done with shipbuilding and critical minerals more broadly, catalyzing US government focus on the areas of greatest vulnerability to PRC (China) ambitions is essential," Alexander Gray, chief of staff to the U.S. national security adviser in the first Trump administration, said for The Financial Times.

The U.S. has been absent from international negotiations on seabed mining as the International Seabed Authority's March conference ended without a go-ahead for mining in international waters, as environmentalists argued a poorly understood impact on the ecosystem.

Meanwhile, Vancouver-based The Metals Company (TMC ) has confirmed that its subsidiary initiated the permitting process for exploring and mining international waters under a 1980 U.S. law. Still, debates persist about whether the U.S. can grant rights over something outside its jurisdiction.

Market Update: Dow Drops 700 Points, S&P 500 Falls as Nvidia Pulls Down Tech

Rachel Hemple — Wed, 16 Apr 2025 09:05:43 -0400

Stocks fell lower on Wednesday as investors reacted to new a U.S. license for semiconductor exports to China, impacting global tech outlooks. The Dow Jones Industrial Average lost nearly 700 points, while the S&P 500 Index and Nasdaq Composite declined about 2.2% and 3%.

Here's how the market settled on Wednesday:

S&P 500 Index (SPY ): -2.24% or -120.93 points to 5,275.70

Dow Jones Industrial Average (DIA ): -1.73% or -699.57 points to 39,669.39

Nasdaq Composite Index (QQQ ): -3.07% or -516.01 points to 16,307.16

Nvidia (NVDA ) shares declined Wednesday after the chipmaker disclosed in a regulatory filing on Tuesday that it will record a $5.5 billion quarterly charge related to exporting its H20 graphics processing units to China and other nations due to a new license required to ship chips from the U.S. to China. Advanced Micro Devices (AMD ) said in a similar filing on Wednesday that it could in occur an $800 million charge related to exports of its M1308 chips.

Semiconductor stocks were also pressured by disappointing quarterly earnings from ASML (ASML ) on Wednesday, with the Dutch semiconductor equipment company warning that new U.S. trade restrictions could affect demand for its products.

Last week, the White House announced a temporary exemption from President Donald Trump's so-called reciprocal tariffs on electronic products including smartphones, computers and semiconductors. Still, market uncertainty over the key sector persist, as the U.S. Commerce Department said Tuesday it was conducting a national security investigation into imports of semiconductor technology and other related products.

The World Trade Organization (WTO) warned Wednesday that global trade outlooks have "deteriorated sharply," in response to Trump's tariff policies. The WTO estimates in its latest "Global Trade Outlook and Statistics" report that the volume of world merchandise trade is now expected decline by 0.2% in 2025, before rising 2.5% in 2026.

"Risks to the forecast include the implementation of the currently suspended reciprocal tariffs by the United States, as well as a broader spillover of trade policy uncertainty beyond U.S.-lined trade relationships," the report read.

"If enacted, reciprocal tariffs would reduce world merchandise trade growth by an additional 0.6 percentage points, posing particular risks for least-developed countries (LDCs), while a spreading of trade policy uncertainty (TPU) would shave off a further 0.8 percentage points. Taken together, the reciprocal tariffs and spreading TPU would lead to a 1.5% decline in world merchandise trade volume in 2025."

Federal Reserve Chair Jerome Powell further impacted sentiment on Wednesday, pulling the stocks to session lows, as he said Trump's tariffs could increase near-term inflation and effect the central bank's efforts to stabilize the economy.

"We may find ourselves in the challenging scenario in which our dual-mandate goals are in tension," Powell said in remarks before the Economic Club of Chicago. "If that were to occur, we would consider how far the economy is from each goal, and the potentially different time horizons over which those respective gaps would be anticipated to close."

On the Economic Front:

U.S. Retail Sales showed strong consumer spending in March despite declining economic outlooks, the Commerce Department reported Wednesday. An advanced headline estimate showed sales increasing 1.4% month-to-month, coming in above consensus estimates and jumping from February's 0.2% gain. Annually, retail sales climbed 4.6% in March.

Excluding autos, sales rose by a more-than-expected 0.5%; economists had expected vehicle sales to rise as buyers rush to buy ahead of Trump's tariffs. Motor vehicle and parts sales jumped 5.3%.

In Earnings News:

United Airlines (UAL ) reiterated its full-year outlook alongside its first-quarter earnings report on Tuesday, but offered alternative guidance if the U.S. economy enters a recession, stating that the macro environment is "impossible to predict this year with any degree of confidence," in a securings filing. The airline expects adjusted earnings per share of $11.50 to $13.50 this fiscal year, but forecasts for the same metric to earn between $7 to $9 if faced with a recession.

The company also plants to reduce its summer flight schedule in response to disappointing domestic travel trends, which fell 3.9% year-over-year. Ticket purchases for international flights, however, increased more than 5% during the quarter. United expects second-quarter adjusted earnings per share of $3.25 to $4.25 due to this strong demand for pricier seats.

Looking Ahead:

Market participants will react to key housing market data for March on Thursday, alongside earnings reports from companies including Taiwan Semiconductor Manufacturing Company (TSM ), UnitedHealth Group (UNH ) in the morning and Netflix (NFLX ) after closing bell.

Bank Of America CEO Says Consumers Are 'Resilient,' While Business Owners 'Worried' As 'We Face A Changing Economy'

Benzinga News — Tue, 15 Apr 2025 17:20:38 -0400

Bank of America Corp. (BAC ) released better-than-expected quarterly results on Tuesday. CEO Brian Moynihan said trade tensions and tariff-related turbulence did not affect the company's performance or American consumers in the first quarter.

What To Know: In prepared remarks released with the bank's quarterly results, Moynihan said that both businesses and consumer clients are doing well in the face of uncertainty.

"Our business clients have been performing well; and consumers have shown resilience, continuing to spend and maintaining healthy credit quality. Though we potentially face a changing economy in the future, we believe the disciplined investments we have made for high-quality growth, our diverse set of businesses, and the team's relentless focus on responsible growth will remain a source of strength," the CEO said.

Moynihan gave more insight into the mindset of small business owners on the earnings call with analysts.

"They're worried about how this will affect their businesses and where they should invest. And I think that's slowing down some of their decision paths right now because they're trying to figure out if my goods and services will be able to pass through the price," he said, adding that some are considering changing growth plans as well.

Overall, the CEO gave a picture of a strong economy currently weighed down by uncertainty surrounding the Trump administration's policies. He said business owners are generally calm, "they're making money, but they are worried about how all this works."

"The core question will be when all these different policies and stuff come together, in responses to policies by other trading partners to the tariff policies, by the policies on deregulation working for that the tax bill which comes out, all that will mix together and come to an outcome," Moynihan told analysts.

Later Tuesday morning in an interview with CNBC, Moynihan reiterated his comments on the resiliency of the U.S. consumer.

"Consumers are still spending money, despite the polls that say they are going to stop. They have not stopped yet," he said.

Tesla Owners Face New Challenge Amid Tariffs, Vandalism: Insurance Costs Going Up Twice The National Rate

Benzinga News — Tue, 15 Apr 2025 17:20:31 -0400

Tesla Inc (TSLA ) owners have been subject to increased reports of vandalism and targeted attacks as the electric vehicle company faces declining brand value in the wake of CEO Elon Musk's continued political push.

Those same owners could be in for another challenge in 2025: increased insurance payments.

What Happened: Increased vandalism on Tesla vehicles and lower used car values are among the negatives facing Tesla owners in 2025 after Musk's push in politics has angered many and hurt the brand value of the EV giant.

A new report from Insurify, shared by Electrek, shows that higher insurance premiums could be another negative for Tesla owners in 2025 and things could get worse.

Overall automotive insurance premiums have risen due to a fear that tariffs that could make auto repair costs and replacement costs more expensive. The average cost of full coverage on a vehicle is up 10% year-over-year to $2,302, the report found.

Among the vehicles with the largest increase are several Tesla models. Here's a look at the top 10 vehicles seeing the largest increase in premiums from 2024 to 2025 in the U.S.:

Tesla Model Y: +29%, $3,996 average annual cost
Tesla Model 3: +24%, $4,364 average annual cost
Tesla Model X: +22%, $4,046 average annual cost
BMW 5 Series: +19%, $3,229 average annual cost
Toyota Prius: +18%, $2,151 average annual cost
Hyundai Santa Fe: +15%, $2,241 average annual cost
Honda Accord: +14%, $2,623 average annual cost
Hyundai Elantra: +14%, $2,851 average annual cost
Honda Civic: +13%, $2,600 average annual cost
Hyundai Sonata: +12%, $2,735 average annual cost

Tesla has the top three brands that have seen the largest year-over-year increase from 2024 to 2025 in the United States according to the report.

Why It's Important: The survey was done between February 2024 and February 2025, which means that insurance rates could actually be even higher with vandalism on Tesla vehicles high in recent months.

Tesla parts have been known to be expensive to repair, often leading to large premiums from insurance companies to offset the potential cost.

Tesla has its own insurance segment, but it is not available in all states.

The higher insurance costs and worries about tariffs could scare consumers away from electric vehicles in 2025, especially Tesla vehicles. While consumers can save money at the pump with an EV, owners are now faced with the decisions of lower resale value than past years and higher insurance rates for Tesla vehicles.

TSLA Price Action: Tesla stock was up 0.7% to $254.11 on Tuesday versus a 52-week trading range of $138.80 to $488.54. Tesla stock is down 33% year-to-date in 2025.

Netflix Wants To Be The Next $1 Trillion Company, Analyst Highlights Growth Path

Benzinga News — Tue, 15 Apr 2025 17:20:26 -0400

BofA Securities analyst Jessica Reif Ehrlich maintained a Buy rating on Netflix Inc (NFLX ) with a price target of $1,175.00 on Tuesday.

Ehrlich noted that Netflix will be driven by continued positive subscriber and earnings momentum and drivers, including evolving advertising and live opportunities.

Supported by its brand, global subscriber base, position as an innovator, and increased visibility in growth drivers, the analyst noted that Netflix should continue to outperform.

According to the Wall Street Journal, Netflix targets doubling revenue by 2030 and reaching a $1 trillion valuation (versus ~$400 billion currently, which implies ~16% CAGR).

This validates Ehrlich's bullish thesis on Netflix as it underscores ample runway for continued growth driven by further subscriber additions, more monetization opportunities (both via pricing and advertising), and a significant ramp in operating income.

Netflix is also targeting $9 billion in advertising revenue by 2030 (implies 12% of total calendar 2030 revenue versus prior comments of 10% over the medium term), which compares to Ehrlich's estimate of $500 million+ in fiscal 2024 (which the company expects to double in 2025).

Amid recent market volatility, Netflix's strong subscription model with critical entertainment (which historically has performed well in a recession) has made the stock a defensive choice for investors and driven outperformance versus other technology/Mag 7 companies.

Further, Netflix's nascent advertising business should be incrementally positive, not negative, even in a more challenging advertising backdrop.

Ehrlich expects shares to react positively to this longer-term outlook.

After a surprising slowdown in net member additions in 2022, Netflix implemented password sharing and introduced an ad-supported tier, accelerating subscriber growth.

Total subscribers have now eclipsed 300 million, following 18.9 million net adds in the fourth quarter (well above consensus and Ehrlich's forecasts).

Netflix's year-end 2030 target of 410 million subscribers (~18 million net adds annually) suggests the company still sees a significant growth opportunity, primarily driven by expansion into international markets (e.g., Brazil and India).

At its core, Netflix's growth algorithm will be driven by subscribers and ARM growth. To the extent the company sees a runway for continued strong subscriber growth, it should give investors confidence in Netflix's ability to grow over the next several years.

Per the WSJ report, Netflix aims to double revenue by calendar 2030 from a $39 billion base in calendar 2024, which reflects a ~12% calendar 2024-2030 CAGR.

Advertising for Netflix is still a nascent business, but by calendar 2030, the company is targeting $9 billion in total ad revenue (~12% of total revenue versus Ehrlich's estimate of ~2% in calendar 2024). This would reflect a 50% CAGR in advertising revenue from 2024 to 2030.

Netflix targets a calendar 2030 operating income of triple the $10.4 billion the company reported in calendar 2024. This reflects a calendar 2024-2030 CAGR of ~20% and implies ~ a 40% operating income margin (versus 26.7% in calendar 2024).

Finally, Netflix is aiming to achieve a valuation of $1 trillion, implying a low 30s multiple on calendar 2030 EBITDA using the company's reported targets (versus the current multiple of ~25 times calendar 2026 EBITDA).

Price Action: NFLX stock closed higher by 4.83% to $976.28 on Tuesday.

PepsiCo Still A Buy? Not Anymore As Analysts 'Run Out Of Answers'

Benzinga News — Tue, 15 Apr 2025 17:20:21 -0400

Soda staple PepsiCo Inc (PEP ) received a downgrade from analysts Tuesday due to concerns over slower-than-expected growth.

What Happened: Bank of America Securities analyst Bryan Spillane downgraded PepsiCo shares from Buy to Neutral and lowered the price forecast from $185 to $155.

In a Tuesday research note, Spillane recalled the 1986 book, "The Other Guy Blinked; How Pepsi Won the Cola Wars," which chronicles how Pepsi caused its biggest rival, The Coca-Cola Company (KO ), to change its recipe.

"Today we blinked," Spillane said. "After having been asked repeatedly by investors since the beginning of the year 'why are you still a buy on PEP?' we have run out of answers and are downgrading to Neutral."

The decision to downgrade reflects several bearish feelings, including the fact that gains in international markets are not fully offset by Frito-Lay North America's losses.

With limited revenue and earnings upside, Bank of America sees minimal potential for a significant valuation boost.

PepsiCo's Frito-Lay North America is facing volume declines partly due to snack prices outpacing wage growth, with a recovery unlikely before fiscal 2027.

The aggressive pricing outpacing wage growth by wide margins has driven consumers away, leading to the first annual volume decline since 2010.

Marketing efforts in 2024 didn't significantly boost sales, suggesting consumers remain price-sensitive and unresponsive to temporary discounts.

The analyst expects volume to rebound only when the gap between product prices and wages narrows. If pricing remains flat in 2025, this will likely happen in 2026.

Meanwhile, Pepsi Beverages North America continues to lose market share due to a limited product range and stronger competitor marketing.

The segment is underperforming in fast-growing categories like energy drinks and zero-sugar sodas due to weak competitiveness.

Pepsi's flavor and zero-sugar portfolios are also losing ground to Coca-Cola, noted the analyst.

The analyst remarked that in Mexico, the company's second-largest market, consumer spending is being affected by increased uncertainty tied to geopolitical tensions.

Despite ongoing headwinds, PEP has maintained strong earnings through effective cost and profit management. Much of this resilience stems from solid gross margin performance in its international markets.

Research indicates that a significant portion of the company's EPS growth over the past two years has been driven by productivity gains in the cost of goods sold.

The analysts see limited downside risk but also limited upside until U.S. performance improves.

Price Action: PEP shares traded lower by 1.99% at $143.83 at last check Tuesday.

Canadian Travel To US Nosedives: Road Trips Down 32%, Air Travel Slips 13.5% — Report Warns Of Over $6 Billion In Economic Losses

Benzinga News — Tue, 15 Apr 2025 17:20:06 -0400

The number of Canadian tourists visiting the U.S. has taken a significant hit, potentially resulting in a $6 billion economic loss for the year, as per reports.

What Happened: The number of Canadians traveling to the U.S. has seen a notable decline. According to Statistics Canada, road trips-which make up the bulk of Canadian visits-dropped by 32% in March compared to the same month in 2024. Air travel also fell, with a 13.5% decrease reported.

The U.S. Travel Association (USTA) had earlier cautioned that even a 10% drop in Canadian tourism could lead to a $2.1 billion loss and put 140,000 jobs in jeopardy in the hospitality and associated sectors. If the decline of over 30% in Canadian visitors persists, it could result in over $6 billion in losses to the U.S. economy in 2025, Forbes reported.

This downturn marks the third straight month of significant declines in Canadian car travel to the U.S., following a 23% year-on-year decline in car travel and a 2.4% reduction in air travel in February. This trend started after President Donald Trump announced tariffs and referred to Canada as "the 51st state".

Why It Matters: The decline in Canadian tourism was anticipated to have a significant impact on U.S. airlines, hotels, and theme parks. Goldman Sachs analyst Lizzie Dove had warned that a 10% decline could result in 2 million fewer visits and $2.1 billion in lost spending to the U.S.

As a result of this, United Airlines (UAL ) and Delta Air Lines (DAL ) which have significant partnerships with Air Canada and WestJet, respectively, are cutting down on Canada-U.S. flights while also reducing capacity in this route, as per Visual Approach Analytics.

Moreover, the 'Buy Canadian' movement, which started in response to President Trump's tariff threats, has been gaining momentum since early 2025. This movement, which encourages Canadians to buy from domestic brands rather than American brands, has begun to impact many U.S. retailers.

According to Reuters, Canada imported $350 billion worth of U.S.-made goods in 2024, making it the United States' top trading partner. If the boycotts persist, brands risk losing billions of dollars in sales this year.

The shares of United Airlines plunged more than 11% over the past month, while Delta Air Lines stock lost nearly 24% over the last six months, according to data from Benzinga Pro.

Apple Plans On-Device AI Data Analysis To Boost Privacy, Catch Up In AI Race

Benzinga News — Tue, 15 Apr 2025 17:19:48 -0400

Apple Inc (AAPL ) plans to start analyzing data on customers' devices to boost its artificial intelligence platform to safeguard user information while remaining a relevant AI player.

The iPhone company typically trains AI models leveraging synthetic data.

The new approach will address that problem while ensuring user data is not exploited to train AI models.

Large language models power the features in Apple Intelligence, which the company released in 2024. In addition to using synthetic data, Apple has trained its models with information it licensed from third parties, Bloomberg reports.

However, Apple's AI products lagged behind rivals, spurring a recent management overhaul for the Siri voice assistant.

The company plans to launch the new system in an upcoming beta version of iOS, iPadOS 18.5, and macOS 15.5.

The iPhone maker also said it brings privacy-centric ways to improve the models that power other Apple Intelligence features.

Already, the company has relied on differential privacy technology to improve its Genmoji feature, which lets users create custom emojis.

Apple stock lost 17% in value year-to-date.

In March, Apple transferred responsibility over Siri from executive John Giannandrea and handed the voice assistant group to Vision Pro creator Mike Rockwell and software chief Craig Federighi. The company plans to announce Apple Intelligence upgrades in June and features for Siri in 2026.

For context on AI safety, Microsoft Corp's (MSFT ) LinkedIn Premium users accused it of sharing private data for AI model training without their consent.

AI startups OpenAI and Anthropic have also been accused of disregarding web scraping regulations. Elon Musk's X, formerly Twitter, was revealed to be sharing user posts with xAI's Grok for training purposes.

In February, Meta Platforms Inc (META ) cited the possibility of discontinuing the development of specific AI systems that could trigger cybersecurity, chemical, and biological attacks.

Billionaire Ray Dalio cautioned in a recent podcast interview that the development of AI could risk totalitarian social control or even anarchy in the coming years.

Now, let's look at some expert opinions on Apple and its offerings.

Jefferies analyst Edison Lee slashed his iPhone and AI forecasts through 2031 as tariffs, weak demand, and AI hurdles weigh on Apple's outlook.

BofA Securities analyst Wamsi Mohan noted a strong iPhone upgrade cycle ahead, driven by AI features and internal silicon boosting Apple's margins.

Price Action: AAPL stock is up 0.3% at $203.25 at last check Tuesday.

Hewlett Packard Enterprise Stock Jumps As Elliott Investment Management Builds $1.5B Stake

Benzinga News — Tue, 15 Apr 2025 17:19:41 -0400

Hewlett Packard Enterprise Co (HPE ) shares spiked at the open on Tuesday following reports that Elliott Investment Management has built a stake in the company.

What Happened: According to a Bloomberg report citing those familiar with the matter, Elliott Investment Management has built a stake in Hewlett Packard Enterprise valued at more than $1.5 billion.

The activist firm reportedly plans to engage with Hewlett Packard Enterprise in an attempt to boost the value of the company's stock. There were no further details shared on Elliott's exact intentions.

The report indicates that Elliott's stake makes the activist firm one of the company's top five shareholders. The company had a total market capitalization of approximately $18.75 billion as of Monday's close, according to Benzinga Pro.

Hewlett Packard Enterprise shares are down nearly 30% year-to-date, even with Tuesday's pop of approximately 5% following the activist stake reports.

Hewlett Packard Enterprise shares tumbled last month after the company issued soft guidance for the current quarter, citing tariff uncertainty, margin concerns on servers and execution problems.

Hewlett Packard Enterprise guided for second-quarter revenue of $7.2 billion to $7.6 billion, versus estimates of $7.93 billion. The company also forecasted adjusted earnings of 28 cents to 34 cents per share, well below estimates of 50 cents per share.

Several analysts slashed price targets following Hewlett Packard Enterprise's quarterly results, pointing to the software and networking company's "disappointing" outlook.

An investor or trader's decision to buy or sell a stock is unique to their time horizon and risk tolerance. Many typical investors evaluate earnings growth and valuation on a particular stock before making a decision.

On the valuation side, Hewlett Packard's price-to-earnings ratio - a measure of how much an investor pays for the company's earnings - is compressed 23.98% in the current quarter when compared with last year. That places it below similar businesses in its sector like Apple (AAPL ), Dell Technologies (DELL ), and HP (HP ). You'll need to decide whether that makes it more or less attractive based on how you think the company will perform over time.

HPE Price Action: Hewlett Packard Enterprise shares were up 4.55% at $14.94 at the time of publication Tuesday, according to Benzinga Pro.

US Manufacturing Unlikely To Benefit From Tariffs, Survey Indicates: Majority Feels Trump Team Is 'Bullying Corporate America'

Benzinga News — Tue, 15 Apr 2025 17:19:35 -0400

A survey has indicated that the tariffs imposed by President Donald Trump's administration may not lead to a resurgence in U.S. manufacturing.

What Happened: A new supply chain survey suggested that the U.S. manufacturing sector is unlikely to be the primary beneficiary of China losing some manufacturing due to the imposed tariffs. The survey revealed that most companies believe that reshoring supply chains could potentially double their costs, leading them to seek low-tariff regimes globally, reported CNBC.

Despite promises of tax cuts for companies that bring back manufacturing to the U.S., 57% of respondents cited cost as the main reason for not reshoring production. Furthermore, 61% of the respondents felt that the Trump administration is "bullying corporate America."

Bruce Kaminstein, a New York-based entrepreneur, told CNBC, "Small consumer companies that started with an innovative idea do not have the capital to invest in building factories."

At the same time, Steve Lamar, CEO of the American Apparel & Footwear Association, explained that Trump's 'ill-advised' tariff policy could adversely impact the supply chains that support millions of U.S. jobs, empower American manufacturers and offer affordable choices to consumers.

Why It Matters: According to a White House statement, Trump believes tariffs will safeguard current jobs and rejuvenate the manufacturing sector, reversing "the decades of globalization that has decimated our industrial base."

However, this survey's findings indicate otherwise. It aligns with recent industry predictions. Economist Peter Schiff had warned that companies like Nike Inc. (NKE ) would not shift production to the U.S. despite the tariffs, as it would increase costs.

Similarly, a leading tech analyst predicted that the tariffs could cause a significant price hike for Apple Inc. (AAPL ) iPhones if manufacturing shifts to the U.S. The U.S. auto industry also faces potential disruption from a 25% tariff on imported vehicles, which could affect over 7 million vehicles.

On the other hand, Gordon Hanson, a professor at the Harvard Kennedy School told the Wall Street Journal that industries with less complex products-such as pharmaceutical or chemical manufacturing-are more likely to shift some operations back to the U.S.

These developments suggest that the tariffs may not have the intended effect of boosting U.S. manufacturing, but could instead lead to increased costs and potential disruptions across various industries.

Johnson & Johnson Q1 Earnings: Strong Cancer Drug Sales, Boosts Quarterly Dividend, Anticipates Negative Currency Impact For 2025 Profit

Benzinga News — Tue, 15 Apr 2025 17:19:29 -0400

Johnson & Johnson (JNJ ), on Tuesday, reported a first-quarter 2025 adjusted EPS of $2.77, up 2.2% year over year, beating the consensus of $2.60.

The pharmaceutical giant reported sales of $21.89 billion, up 2.4% year over year and beating the consensus of $21.58 billion.

Operational growth was 4.2%, and adjusted operational growth was 3.3%. Innovative Medicine sales increased 2.3% or 4.2 operationally to $13.90 billion.

Growth was driven by Darzalex (daratumumab), Carvykti (ciltacabtagene autoleucel), Erleada (apalutamide), Rybrevant/Lazcluze in oncology, Tremfya (guselkumab) and Simponi/Simponi Aria in immunology, Spravato (esketamine) Neuroscience, and Xarelto in cardiovascular. Growth was partially offset by an approximate (810) basis points impact from Stelara (ustekinumab) in immunology.

Cancer sales increased to $5.68 billion, up 17.9% (+20.4 operational).

Immunology sales fell to $3.71 billion, down 12.7% (down 10.9% operational).

Stelara sales fell 33.7% to $1.63 billion. Darzalex sales rose 20.3% to $3.24 billion. The company's cancer cell therapy, Carvykti, generated sales of $369 million.

MedTech sales increased 2.5% to 8.02 billion, driven primarily by Abiomed in cardiovascular and wound closure products in general surgery. Growth was partially offset by Spine, Sports & Other in Orthopaedics.

Dividend: Johnson & Johnson also announced an increase in its quarterly dividend from $1.24 to $1.30 per share. The 4.8% increased dividend is payable on June 10, with a record date of May 27.

Guidance: Johnson & Johnson expects 2025 sales of $91 billion-$91.8 billion versus prior guidance of $90.9 billion-$91.7 billion and consensus of $90.62 billion

The Medtech giant expects 2025 adjusted operational EPS of $10.50-$10.70, compared to prior guidance of $10.75-$10.95. It maintained the adjusted EPS outlook of $10.50-$10.70 versus the consensus of $10.50.

Adjusted operational EPS excluded the impact of translational currency, which means JNJ anticipates a hit to the bottomline from the impact currency.

The company anticipates second-half operational sales growth higher than the first half of 2025.

Johnson & Johnson said the increase in full-year 2025 operational sales guidance reflects the addition of CAPLYTA following the completion of the Intra-Cellular Therapies acquisition.

Including tariff costs, dilution from the Intra-Cellular Therapies acquisition, and updated foreign exchange, the company maintains a full-year 2025 adjusted reported EPS outlook of 6.2% growth at the mid-point.

In March, Johnson & Johnson announced its plans to invest more than $55 billion in the U.S. over the next four years.

Price Action: JNJ stock is down 0.88% at $153.01 during the premarket session at the last check Tuesday.

Bernie Sanders Rallies Against Trump, Musk At Coachella: 'Economy That Is Working Very Well For The Billionaire Class'

Benzinga News — Tue, 15 Apr 2025 17:18:51 -0400

Music fans who attended the 2025 Coachella festival enjoyed headline acts like Lady Gaga, Green Day, Post Malone, Charli XCX and Travis Scott. They were also treated to a surprise appearance and short political rally from Senator Bernie Sanders.

What Happened: Sanders (I-Vt.), who has spoken out against President Donald Trump and billionaire Elon Musk plenty of times, took the stage briefly Saturday night for an unannounced appearance.

"The future of what happens in America is dependent on your generation," Sanders told the Coachella audience, as reported by The Hollywood Reporter.

Sanders was invited to the California festival to introduce singer-songwriter Clairo. The senator praised Clairo for her activism during his introduction after he was introduced to the crowd by Florida Congressman Maxwell Frost (D-Fla.), who is the first Gen Z member of Congress.

"I'm here because Clairo has used her prominence to fight for women's rights, to try to end the brutal war in Gaza, where thousands of women and children are being killed," Sanders said.

The Senator encouraged the crowd, which typically skews younger, to stand up to the billionaires, fossil fuel industry, states that are ending abortion rights and "greedy insurance companies."

Sanders mention of Trump during his speech led to a series of boos from the crowd.

"I agree! He thinks that climate change is a hoax. He is dangerously wrong and you and I are going to have to stand up to the fossil fuel industry and tell them to stop destroying the planet."

The Senator said Trump's administration has worked to dismantle climate efforts and make cuts to staff at environmental agencies.

"You can turn away and you can ignore what goes on, but if you do that, you do it at your own peril. We need you to stand up to fight for justice. To fight for economic justice, social justice and racial justice."

Speaking about Tesla (TSLA ) CEO Musk, Sanders said the billionaire has taken over the American political system to make things better for the rich.

"We have an economy that is working very well for the billionaire class, but not for working families," Sanders said.

Why It's Important: Sanders was positively received by the younger crowd, which could mark a rally cry against Trump and Musk in future midterm elections and voter issues they can control.

Clairo will take part in the second weekend of Coachella, scheduled for April 18 to April 20. It is unknown if Sanders will make another appearance to introduce her.

The Senator also spoke at a Los Angeles rally earlier Saturday on his "Fighting Oligarchy" tour alongside Rep. Alexandria Ocasio-Cortez (D-N.Y.). Around 36,000 people attended the Los Angeles rally, which also featured musicians Neil Young and Joan Baez, according to the report.

Sanders, who ran for president in 2016 and 2020, remains well-liked by voters. A recent Morning Consult poll found Sanders to have a 69% approval rating, ranking him as the most popular senator in the country for a third straight quarter.

Meta Used 'Buy Or Bury' Strategy To Monopolize Social Media, FTC Says

Benzinga News — Tue, 15 Apr 2025 12:16:23 -0400

In a high-stakes antitrust trial that began Monday in Washington, D.C., the Federal Trade Commission called on Meta Platform, Inc. (META ) to divest Instagram and WhatsApp, alleging these deals formed part of an illegal "buy or bury" strategy to monopolize social networking.

The Details: Prosecutors highlighted a 2008 email in which Meta CEO Mark Zuckerberg reportedly stated it was "better to buy than compete," framing the Instagram purchase as a tactic to neutralize a rising competitor.

Zuckerberg testified for three hours on the trial's first day and argued that Meta's acquisitions were necessary to adapt to evolving user preferences. The Meta CEO also pointed to competition from TikTok and YouTube Shorts (GOOG ) (GOOGL ) as evidence of a dynamic market.

Meta's legal team emphasized that regulators originally approved the deals and that consumer behavior, such as switching to Instagram during TikTok outages, demonstrates robust competition in the market.

Former FTC Chair Lina Khan spoke out on Monday, saying the case against Meta is about "free and fair trade."

"There's no expiration date when it comes to the illegality of the transaction. I think there is a way in which the entire social networking ecosystem looks different today because Facebook was permitted to go out and make these acquisitions," Khan told CNBC.

The trial could result in Meta being forced to divest Instagram and WhatsApp. Zuckerberg's testimony is expected to continue on Tuesday as both sides grapple with defining the boundaries of social media competition in a rapidly shifting digital landscape.

Price Action: According to Benzinga Pro, Meta Platforms shares were down 1.95% at $521.14 at the time of publication Tuesday.

Despite Tariff Turmoil, Bank Of America CEO Says Consumer Is 'Continuing To Spend'

Benzinga News — Tue, 15 Apr 2025 12:16:17 -0400

On Tuesday, Bank of America Corp (BAC ) reported a first-quarter fiscal 2025 net income of $7.4 billion (versus $6.7 billion a year ago) and EPS of $0.90, beating the analyst consensus estimate of $0.81.

Revenue, net of interest expense, increased 6.0% year over year to $27.37 billion, beating the analyst consensus estimate of $26.99 billion. This was driven by noninterest income growth across all segments and higher net interest income (NII).

Segment Net income: Consumer Banking clocked $2.53 billion versus $2.66 billion Y/Y, Global Wealth and Investment Management was $1.007 billion versus $1.005 billion Y/Y, Global Banking was $1.91 billion versus $1.99 billion Y/Y, and Global Markets was $1.94 billion versus $1.79 billion Y/Y.

Investment banking fees declined by 3% to $1.5 billion.

Net interest income was $14.44 billion (+3.0% Y/Y), driven by Global Markets activity and fixed-rate asset repricing.

Noninterest income was $12.92 billion (+9.6% Y/Y). Provision for credit losses grew 12.2 Y/Y to $1.48 billion.

The efficiency ratio for the quarter was 64.59%, compared to 66.36% Y/Y. The bank reported a CET1 ratio of 11.8%, compared to 11.9% a year ago. The book value per share of $36.39 improved by 8%.

The average loan and lease balance was $1.09 trillion (+4.0% Y/Y). Average deposits are up 3% Y/Y to $1.96 trillion. Bank of America added ~1.0 million credit card accounts during the quarter.

Bank of America CEO and Chairman Brian Moynihan said, "Our business clients have been performing well; and consumers have shown resilience, continuing to spend and maintaining healthy credit quality. Though we potentially face a changing economy in the future, we believe the disciplined investments we have made for high-quality growth, our diverse set of businesses, and the team's relentless focus on Responsible Growth will remain a source of strength."

Outlook: Bank of America reiterated a fourth-quarter net interest income of ~$15.5 billion - $15.7 billion.

Bank of America stock has lost over 17% year-to-date. In March, at least five Wall Street firms reduced their price forecasts for the stock.

Last week, the U.S. financial sector got some relief after President Donald Trump announced a 90-day suspension of tariffs on countries that have not retaliated against U.S. trade actions. The financial sector is a high beta, as it tends to outperform when markets are bullish and underperform during risk-off conditions.

However, Ray Dalio of Bridgewater Associates expressed concerns about a potential recession despite Trump pausing reciprocal tariffs.

Price Action: BAC stock is up 4.02% at $38.14 at the last check on Tuesday.

Chinese TikTok Influencers 'Expose' Cheap Nike, Lululemon Suppliers To Bypass Trump Tariffs

Benzinga News — Tue, 15 Apr 2025 12:15:39 -0400

A surge of TikTok influencers are targeting American consumers with videos that claim to reveal the Chinese factories behind major brands like Nike, Inc. (NKE ) and Lululemon Athletica, Inc. (LULU ).

The influencers claim that viewers can bypass President Donald Trump's tariffs by purchasing the same products directly from Chinese manufacturers at a fraction of U.S. retail prices.

What To Know: The influencers typically film themselves inside or near Chinese factories and assert that the facility produces goods for Nike, Lululemon and other well-known brands. Some openly criticize U.S. tariffs and trade policies and the messaging often emphasizes the idea that consumers can "bypass the middleman" and get the same products for significantly lower prices directly from the factory.

While the influencers promote direct factory sales as a way to avoid tariffs, the U.S. is set to eliminate duty exemptions for small packages sent to U.S. addresses starting May 2, making it less clear whether consumers will actually save money.

For example, TikTok user @LunaSourcingChina claims Lululemon leggings are made for $5 to $6 per pair, compared to over $100 retail in the U.S., saying the quality is "virtually identical."

Other videos titled "China Exposed the Truth" and "How We Bypass Tariffs" have gone viral, with millions of views and hundreds of thousands of likes. The sheer number of videos showcasing the anti-tariff content highlights concerns over TikTok-owner ByteDance's ability to reach and influence a broad U.S. audience.

"These posts are much more confrontational and mocking of the US, rather than showing it as a threat," Tom Harper, lecturer in Chinese international relations at the University of East London, told Bloomberg.

Netflix Eyes $1 Trillion Market Cap By 2030, Aims To Double Revenue And Dominate Global Streaming: Report

Benzinga News — Tue, 15 Apr 2025 12:15:32 -0400

Netflix Inc. (NFLX ) aims to more than double its market capitalization to $1 trillion by 2030, showcasing ambitious growth targets that underscore its position as the world's leading streaming service.

What Happened: During its annual business review meeting last month, executives shared plans to double revenue from $39 billion last year and generate approximately $9 billion in global ad sales by 2030, The Wall Street Journal reported, citing sources. The company also targets tripling its operating income from $10 billion in 2024.

Netflix, currently valued at nearly $400 billion with shares up over 50% in the past year, has strengthened its financial position through password-sharing crackdowns, strategic price increases, and its growing advertising business. Research firm eMarketer estimates U.S. ad revenues will exceed $2.15 billion this year.

The streaming giant expects to grow its global subscriber base from 301.63 million to approximately 410 million by 2030, with particular focus on international markets with high broadband penetration like India and Brazil.

Netflix did not immediately respond to Benzinga's request for comment.

Why It Matters: Despite concerns about President Donald Trump's tariffs potentially causing economic recession, Netflix executives expressed confidence that streaming could prove resilient if consumers opt to stay home rather than spend on outside entertainment.

Netflix continues investing in technology innovation, recently testing an OpenAI-powered search engine in Australia and New Zealand that allows subscribers to discover content based on emotions rather than just titles. The feature is expected to expand to U.S. users in the coming weeks.

Analyst YR Research recently identified Netflix as a promising investment amid market volatility, citing its digital business model and strong value proposition. The company's engagement metrics reached record levels in the first quarter of 2025, with Top 10 views increasing 7.6% year-over-year, representing the fastest growth in the company's tracking history.

Price Action: Netflix closed at $931.28 on Monday, 2025, up 1.41% for the day. After hours, the stock increased to $943.50, gaining 1.31%.

Citigroup CEO Jane Fraser Bets US Will 'Still Be World's Leading Economy' And Dollar 'The Reserve Currency' After Trade Uncertainty Settles

Benzinga News — Tue, 15 Apr 2025 12:15:25 -0400

Citigroup Inc. (C ) reported on Tuesday that the first-quarter fiscal 2025 revenue growth was 3% year-over-year and was $21.6 billion, beating the analyst consensus of $21.29 billion. This growth was driven by each of the five interconnected businesses.

Excluding divestiture-related impacts in both periods, revenues also went up 3%.

The U.S. banking giant reported earnings per share of $1.96, increased from $1.58 a year ago, beating the consensus of $1.84.

Net income was $4.1 billion, compared to $3.4 billion in the prior-year period, driven by lower expenses and higher revenues, partially offset by higher cost of credit.

Net interest income increased by 4%, driven by U.S. Personal Banking (USPB), Markets, Wealth, and Services. Non-interest revenue increased by 1%, driven by Markets, Banking, and Wealth.

Operating expenses fell 5% to $13.43 billion, and the efficiency ratio of 62% improved by ~490 bps year over year.

Lower operating expenses were driven by a smaller FDIC special assessment, the absence of a restructuring charge, and lower compensation expenses.

Return on average tangible common equity (RoTCE) reached 9.1%, up ~150 bps, and the Common Equity Tier 1 (CET1) Capital ratio was 13.4% for the quarter, ~130 bps above the current regulatory minimum.

The cost of credit, $2.7 billion, increased by 15%, driven by a higher net build in the allowance for credit losses (ACL) related to uncertainty and deterioration in the macroeconomic outlook in the current quarter relative to the prior-year period and higher net credit losses in the card portfolios in USPB.

Services revenues of $4.9 billion were up 3%, driven by Treasury and Trade Solutions growth. Markets revenues of $6.0 billion increased 12%, driven by growth in Fixed Income and Equity markets revenues.

Equity markets revenues of $1.5 billion increased 23%, primarily driven by equity derivatives, on increased market volatility and higher client activity, and momentum in prime services, with prime balances up approximately 16%.

Banking revenues of $2.0 billion increased 12%, driven by growth in Investment Banking and the impact of mark-to-market on loan hedges, partially offset by a decline in Corporate Lending, excluding mark-to-market on loan hedges.

Investment Banking revenues of $1.0 billion increased by 12%, driven by an increase in Investment Banking fees of 14%, driven by growth in Advisory, partially offset by declines in Equity Capital Markets and Debt Capital Markets.

Wealth revenues of $2.1 billion increased 24%, driven by growth across Citigold, the Private Bank, and Wealth at Work.

USPB revenues of $5.2 billion increased by 2%, driven by growth in Branded Cards and Retail Banking, largely offset by a decline in Retail Services.

"When all is said and done, and longstanding trade imbalances and other structural shifts are behind us, the U.S. will still be the world's leading economy, and the dollar will remain the reserve currency. The deep knowledge and breadth of capabilities we bring to the many markets where we operate are a point of distinction as we continue to help our clients navigate an uncertain environment," CEO Jane Fraser said.

Outlook: Citigroup expects fiscal 2025 revenue of around $83.1 billion-$84.1 billion, compared to the consensus of $83.59 billion. The banking firm expects expenses just shy of around $53.4 billion.

The company expects 2025 cards NCL rates around the top of the 2024 ranges for both businesses, with higher losses in the first half, consistent with seasonal patterns, subject to changing conditions.

ACL build will be a function of the macroeconomic environment and business volumes.

Price Action: C stock is up 2.57% to $64.85 at the last check on Tuesday.

Market Update: Stocks Tick Lower on Earnings Reports, Easing Tariff Uncertainty

Rachel Hemple — Tue, 15 Apr 2025 11:50:55 -0400

Stocks ticked lower Tuesday as market participants looked over the latest first-quarter earnings reports and breathed a sigh of relief as the White House continues to ease some of its "reciprocal" tariff policies. The Dow Jones Industrial Average lost over 150 points, while the S&P 500 Index and Nasdaq Composite slipped 0.2% and 0.05% lower, respectively.

Here's how the market settled on Tuesday:

S&P 500 Index (SPY ): -0.17% or -9.34 points to 5,396.63

Dow Jones Industrial Average (DIA ): -0.38% or -155.83 points to 40,368.96

Nasdaq Composite Index (QQQ ): -0.05% or -8.32 points to 16,823.17

Bank of America (BAC ) and Citigroup (C ) joined their peers by delivering strong first-quarter earnings results. Bank of America notably saw its net interest income -- the difference in what a lender pays depositors and what it earnings on loans and investments -- rise to $14.6 billion, benefiting from lower deposit costs and higher-yielding investments. Citigroup saw its equity trading revenue jump 23% to 1.5 billion, as increased market volatility over the past few months led to increased client transaction activity.

The SPDR S&P Bank ETF (KBE ) has risen more than 1% on Tuesday, driven by positive momentum earnings from big banks like JPMorgan Chase (JPM ), Morgan Stanley (MS ) and Goldman Sachs (GS ) over the past few sessions.

Bank of America CEO Brian Moynihan said in a statement that business clients have been "performing well," and consumers continue "to spend and [are] maintaining healthy credit quality," as the bank prepares for a potentially changing economic landscape. Citigroup CEO Jane Fraser believes that the U.S. dollar will remain has the world's reserve currency, "when all is said and done, and longstanding trade imbalances and other structural shifts are behind us."

Wall Street has benefitted from a string of recent tariff exemptions announced by the Trump administration, including electronic products like smartphones, computers and semiconductors as well as hints that President Donald Trump may provide relief for automakers.

Apple (AAPL ) reportedly shipped nearly $2 billion worth of iPhones to the United States in March from its Indian suppliers Foxconn and Tata in apparent effort to bypass President Donald Trump's tariffs, according to customs data reviewed by Reuters. The shipments included Apple iPhone 13, 14, 16 and 16e models. The tech giant is one of the most severely impacted by Trump's tariffs, as it produces most of its hardware in Asia.

Equity bulls have also boosted their broader market outlooks in response to Trump's 90-day tariff pause on most countries. Oppenheimer chief investment strategist John Stoltzfus called for investors to be patient amid this period of volatility in a note on Monday.

"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," Stoltzfus wrote.

Stoltzfus added that market pullbacks so far this year have "have mostly looked like 'trims' and 'haircuts' for the S&P 500," and the "fundamentals that persist," signal a bull market.

Goldman Sachs Sees Upside In Retail Giants Dollar Tree, Home Depot, Best Buy And Target Despite Tariff, Margin Pressures

Benzinga News — Mon, 14 Apr 2025 13:45:49 -0400

Goldman Sachs analyst Kate McShane today puts forward insights from meetings with the management teams of Dollar Tree Inc (DLTR ) and Home Depot Inc (HD ), along with an analysis of valuations, inventory turns and SG&A ratios for the covered companies.

The note also explores the potential impact of China tariffs on profitability for Best Buy Co Inc (BBY ) and Target Corp (TGT ).

The analyst has rated the shares of Dollar Tree with Buy rating and a price forecast of $86.

Dollar Tree management said tariffs typically take three to four months to impact store inventory, providing some buffer before affecting financial results.

While near-term margins may fluctuate, they expect pricing and cost strategies to help maintain strong value offerings. They also mentioned reports of ships idling offshore, awaiting possible tariff developments, said the analyst.

Dollar Tree reports ongoing financial strain among middle- and lower-income shoppers, while upper-income spending remains strong.

A successful holiday season boosted fourth-quarter results, with continued momentum into first quarter, especially in seasonal goods.

The loss of the Marietta, Oklahoma, distribution center continues to weigh on costs but is expected to reverse once it reopens. Family Dollar's sale is projected to improve free cash flow, noted the analyst.

The analyst gave Home Depot stock a Buy rating and a price forecast of $421.

Home Depot stated most of its imported goods are seasonal, and spring merchandise is already in hand. The next major imports are scheduled for the second half of the year.

Home Depot remains cautious about housing activity in a potential downturn. Management believes buyers have already been sidelined and noted past increases in activity when mortgage rates hover around 6%-6.5%.

Management says their experienced cost teams can assess tariff implications down to the SKU level and will deploy mitigation tactics accordingly. In 2018, Home Depot absorbed two-thirds of a $2 billion tariff impact without price hikes by sourcing alternatives or adjusting operations.

The SRS acquisition has exceeded expectations, adding $1 billion in 2024 revenue. It has enhanced Home Depot's PRO offerings and helped streamline complex project sales and order management systems, including "bill upon delivery" capabilities, said the analyst.

The analyst evaluated tariff impacts on Best Buy and Target under various mitigation and SG&A reduction scenarios.

Without cost cuts, Best Buy would need to raise prices by zero to 5% and Target by 1%-11% to maintain profitability. To match FY2025 earnings estimates, Best Buy must raise prices by 3%-9% and Target by 6%-17%. With a 2% SG&A reduction, those figures ease slightly, noted the analyst.

The analyst is Buy rated on Best Buy and Target with a price forecast of $101 and $142, respectively.

Banking On Less: Truist Trims Price Forecasts For JPMorgan, Wells Fargo After Mixed Signals

Benzinga News — Mon, 14 Apr 2025 13:45:42 -0400

Truist Securities analyst John McDonald slashed price forecasts and updated estimates for big banks JPMorgan Chase & Co. (JPM ) and Wells Fargo & Company (WFC ) following their first-quarter earnings release last week.

JPM: The bank reported a net revenue of $46 billion (+8% Y/Y). It beat the consensus of $44.1 billion and EPS of $5.07, exceeding the consensus of $4.62.

McDonald maintained the 2025 earnings per share estimate at $18.35. He also trimmed the 2026 forecast to $19.30 (a reduction of 25 cents).

The analyst says the 2025 revision reflects an upward adjustment in revenue expectations as he aligns the net interest income (NII) estimate more closely with JPMorgan's ~$94.5 billion guidance and factor in stronger anticipated market performance.

However, the analyst adds that these gains are expected to be partially offset by weaker projections for investment banking and asset/wealth management fees.

On the other hand, the 2026 EPS revision primarily stems from expected slower growth in fee income and increased provision expenses, says the analyst.

Consequently, McDonald cut the price forecast from $264 to $251 while maintaining a Hold rating.

WFC: The U.S. banking giant reported GAAP EPS of $1.39, beating the consensus of $1.34 and revenue of $20.15 billion vs. analyst's expectation of $20.75 billion.

The analyst revised the 2025 EPS estimate downward to $5.65 (a reduction of 35 cents) and lowered the 2026 EPS forecast to $6.60 (down 40 cents vs the prior estimate).

These adjustments reflect expectations of flat year-over-year NII in 2025 due to lower interest rate assumptions, as well as softer market-sensitive revenue streams, particularly from venture capital/private equity, wealth management, and investment banking, adds the analyst.

McDonald has a slightly more cautious stance on credit quality. Net charge-off (NCO) assumptions are up from 0.45% in first quarter to 0.64% in 2026. A $300 million reserve was built in the second quarter.

Consequently, the analyst reduced the price target from $84 to $73, while keeping a Buy rating.

Auto Stocks Rise On Trump's Comments About Supporting U.S. Car Companies

Benzinga News — Mon, 14 Apr 2025 13:45:34 -0400

Shares of major automakers such as Ford Motors Inc. (F ), General Motors Inc. (GM ) and Stellantis Inc. (STLA ) are trading higher Monday after President Donald Trump indicated he wants to support car companies navigating recent trade changes.

What To Know: Speaking during a meeting with Salvadoran President Nayib Bukele at the White House, Trump said some automakers "need a little bit of time" to adjust supply chains and shift production of parts to the United States. He stated he's "looking for something to help" those companies as they make the transition according to CNBC.

Trump's comments follow his recent imposition of a 25% tariff on imported vehicles, which took effect on April 3. While some other tariffs have been reduced and companies like Apple (AAPL ) were granted exemptions, the automotive tariffs remain.

Ford and Stellantis have launched temporary employee pricing programs to offset consumer pressure. Others, like Jaguar Land Rover, halted U.S. shipments entirely, and Hyundai Motor has pledged to hold prices steady for at least two months.

Price Action: Ford share were up 4.07% at $9.71, General Motors shares were up 3.77% at $45.28 and Stellantis shares were up 5.19% at $9.32 at the time of writing, according to Benzinga Pro.

US Watchdog To Investigate SEC Overhaul Led By White House, Elon Musk's DOGE: Report

Benzinga News — Mon, 14 Apr 2025 13:45:24 -0400

The U.S. Government Accountability Office (GAO) is reportedly planning to investigate the changes implemented at the U.S. Securities and Exchange Commission (SEC). The probe will focus on alterations led by the White House and Elon Musk's Department of Government Efficiency.

What Happened: GAO has reportedly communicated to Sen. Elizabeth Warren (D-Mass.) and Mark Warner (D-VA) about its intention to scrutinize the SEC's recent actions, including staff reductions, lease terminations, and work consolidation, as detailed in an April 8 letter viewed by Reuters.

The GAO's decision to investigate was reportedly triggered by requests from lawmakers in response to media reports highlighting significant changes at the SEC, a body that oversees U.S. capital markets. The GAO confirmed that such a request falls within its purview and expects to commence the investigation in roughly three months.

Since President Donald Trump's administration took the helm, the SEC has undergone considerable changes, including the dismissal of high-profile cases, staff reorganization, and restrictions on enforcement staff's ability to initiate formal investigations. The commission is also seeing a wave of departures, as hundreds of employees accept resignation offers amid ongoing efforts to revamp the U.S. government.

Trump, alongside special advisor Musk, is spearheading a significant downsizing across federal agencies. The senators emphasized the need for Congress and the public to comprehend the impact of these recent actions on the SEC's ability to fulfill its mission and statutory obligations.

Why It Matters: The shake-up at the SEC comes amid significant market volatility triggered by Trump's April 2 announcement of sweeping tariffs, which he later put on hold.

This development also comes days after Senate Democrats urged the SEC to investigate Trump and others for possible market manipulation linked to the tariff pause. Minority Leader Chuck Schumer, Elizabeth Warren (D-Mass.) and Adam Schiff (D-Calif.) wanted a probe to ascertain if "Trump, any members of his cabinet, or other donor, insiders, and Administration officials engaged in insider trading."

The SEC's recent changes have also been a point of contention, particularly in the cryptocurrency industry. Crypto leaders, including Coinbase Global (COIN ), have been pushing back against the SEC's aggressive enforcement tactics under Trump's administration. This GAO investigation could shed light on the extent and impact of these changes on the SEC's regulatory landscape.

7 Chipmaker Stocks Set To Gain As Trump Delays Tariff Blow On Key China Tech Imports: Bank Of America

Benzinga News — Mon, 14 Apr 2025 13:45:14 -0400

A temporary delay in new U.S. tariffs on tech imports from China sparked a broad semiconductor rally.

What Happened: The iShares Semiconductor ETF (SOXX ) jumped 2.5% by 9:40 a.m. ET Monday, extending its rally to 19% from last week's lows.

Monday's top individual gainers within the SOXX ETF included:

Entegris Inc. (ENTG ) surged 6.7% to $74.37
Intel Corp. (INTC ) rose 6.1% to $20.95
Micron Technology Inc. (MU ) gained 5.8% to $73.56
Qorvo Inc. (QRVO ) added 5.1% to $59.16
MKS Instruments Inc. (MKSI ) climbed 4.2% to $68.25
Universal Display Corp. (OLED ) rose 3.8% to $117.02
Texas Instruments Inc. (TXN ) advanced 3.7% to $153.01

In a research note published on Monday, Bank of America analyst Vivek Arya called the one-to-two-month delay on electronics tariffs "incrementally positive." The delay, which allows industry debate before the White House finalizes so-called "sectoral" tariffs targeting semiconductors, was enough to trigger sharp gains in chip stocks.

Sentiment also improved following the U.S. Customs and Border Protection's decision Friday to exclude several electronic categories-such as smartphones and PCs-from immediate reciprocal tariffs.

"The delay is a net positive," Arya said, citing how electronics represent roughly 50% of global chip demand.

"It allows for debate and discussion on this critical end-market," he added.

Arya noted that Apple Inc. (AAPL ), the world's largest semiconductor buyer, was also excluded from tariff pressure during Trump's first term.

Arya reaffirmed a bullish stance on chipmakers with exposure to artificial intelligence and reshoring themes, including Nvidia Corp. (NVDA ) and Broadcom Inc. (AVGO ).

Cadence Design Systems Inc. (CDNS ) and Synopsys Inc. (SNPS ) remain his key preferences among chip-design software firms.

For semiconductor capital equipment-a group seen as direct beneficiaries of U.S. manufacturing-Arya highlighted Lam Research Corp. (LRCX ) and KLA Corp. (KLAC ).

The analyst also noted a potential tailwind from increased domestic production efforts. Taiwan Semiconductor Manufacturing Co.'s (TSM ) $195 billion U.S. investments, Apple's $500 billion pledge and Nvidia's $200 billion U.S. expansion could all influence the shaping of final tariff rules.

"We expect over time for TSMC to front-end process most-if not all-semis required by its U.S. fabless customers within its Arizona fabs," Arya said, adding that a potential Intel-TSMC joint venture could further boost domestic chip output.

Why It Matters: Despite Monday's rally, Arya maintained a cautious view on chipmakers heavily exposed to consumer-facing segments like smartphones and PCs.

After all, President Donald Trump clarified Sunday that electronics aren't fully exempt. They will instead be folded into a separate sector-focused tariff plan to be announced in the coming months.

Therefore, it's unclear how sectoral tariffs will apply to U.S. electronics assembled in China using foreign-made chips.

"Semis remain a high beta sector and exposed to volatility," Arya said. However, he expects companies tied to AI and infrastructure to remain well-positioned to deliver on earnings expectations.

One risk Arya flagged is the upcoming May 15 compliance deadline for new U.S. rules governing the export of AI chips, which could limit shipments outside a small group of 19 "Tier 1" nations.

Still, with the delay in electronics tariffs offering space for negotiation, investors appear to be betting that the worst-case trade scenarios for U.S. chipmakers could be avoided, at least for now.

Trump's Trade War May Lead To GOP's Massive Downfall In 2026, Warn Republican Senators

Benzinga News — Mon, 14 Apr 2025 13:44:55 -0400

Republican senators have voiced their apprehensions about the potential political fallout of President Donald Trump's ongoing trade war on the GOP's prospects in the 2026 elections.

What Happened: Republican lawmakers are drawing comparisons with the 1932 and 1982 elections, where trade wars and subsequent price inflation led to significant losses for the Republican party. They fear history may repeat itself due to the current trade war, reported The Hill.

Many Republicans see tariffs as a tax increase on American consumers. They point out that the last two instances of Congress enacting tax hikes similar to Trump's recent tariffs resulted in the president's party suffering significant losses in the following election.

Thom Tillis (R-N.C.), a key Democratic target in the upcoming midterm election, warned that if discussions about tariffs continue into February of next year, Republicans could pay a steep political price.

"No doubt, if we're having the same discussions about tariffs in February of next year, all the indicators would be 'wrong track," Tillis told The Hill.

Meanwhile, Sen. Ted Cruz (R-Texas) and Rand Paul (R-Ky.) have both expressed concerns about the potential economic and political fallout of the trade war. Sen. Susan Collins (R-Maine), another top Democratic target in the 2026 midterm election, has also spoken out against Trump's tariffs on allies, particularly the 25% tariff on Canada, due to the economic impact on her home state.

Why It Matters: While stock markets initially rose after Trump announced a 90-day pause on most of the steepest tariff increases, they fell sharply again due to ongoing anxiety about the U.S. economy. This has caused distress among lawmakers due to the implications for the broader economy. Lawmakers were particularly concerned about the bond market sell-off due to its potential impact on the wider economy.

President Trump's approval rating hit a new low since his inauguration, in March 2025. This decline in approval rating was largely due to dissatisfaction with his handling of the economy.

Despite this, Trump predicted a 'tremendous, thundering landslide' for the GOP in the 2026 midterms. He insisted that his latest round of tariffs would help solidify his party's position in the House.

Notably, a report by the Tax Foundation estimated that Trump's tariffs are expected to raise annual government revenue as a percentage of GDP by 0.56%, marking the largest increase since Former President, Bill Clinton's 1993 tax hike.

Nevertheless, the recent concerns expressed by Republican senators suggest a growing unease within the party about the potential political repercussions of the ongoing trade war.

Palantir Stock Jumps 9% After NATO Adopts AI System For Military Ops

Benzinga News — Mon, 14 Apr 2025 13:44:48 -0400

NATO Communications and Information Agency (NCIA) and Palantir Technologies Inc (PLTR ) on Monday announced that they had finalized the acquisition of the Palantir Maven Smart System NATO (MSS NATO) for employment within NATO's Allied Command Operations (ACO) on March 25.

Financial terms of the deal remain undisclosed. Palantir stock gained Monday on the update.

The MSS NATO capability empowers commanders and warfighters to leverage artificial intelligence (AI) safely and securely in core military operations.

By providing a common data-enabled warfighting capability to the Alliance, MSS NATO enhances intelligence fusion and targeting, battlespace awareness and planning, and accelerated decision-making through a wide range of AI applications.

Through MSS NATO, SHAPE plans to accelerate the adoption of other novel capabilities being developed across the Alliance, demonstrating a strong and abiding partnership between the North American and European technology base.

SHAPE is the military headquarters of ACO.

The contract took just six months to complete.

ACO will likely begin using the new system within the next 30 days.

The move coincided with rising anxiety among European members over a potential US withdrawal after Trump threatened to stop protecting the continent pending a defense spending boost, the Financial Times reported.

NATO is also striving to sustain China's development of AI military capabilities.

The Financial Times cited federal records showing that Palantir has won more than $2.7 billion in U.S. government contracts since 2009, including over $1.3 billion from the Defense Department.

Palantir stock surged over 300% over the past 12 months as the Street expects the company to benefit from the Trump administration's defense spending and commercial clients using its AI systems.

The U.S. military already uses its version of Palantir's Maven technology, which was extended with a $99.8 million five-year contract last September.

A similar system has also been used in Ukraine.

CNBC's Jim Cramer recommended buying Palantir.

Price Action: Palantir stock is up 9.29% at $96.65 at last check Monday.