Investors have had their fair share of things to digest this week.
Trump the tariff man has returned in force. The president slapped a 50% tariff on copper imports, powering shares of metals play Freeport-McMoRan (FCX) up almost 5% on the week. Copper (HG=F) prices have surged 10% since Monday.
Late Thursday, Trump posted a letter threatening to impose 35% tariffs on goods from Canada.
The barrage of letters began on Monday, setting tariffs of 25% on goods from Japan and South Korea and 50% on Brazil. He added that countries that do not get letters will incur a straight tariff rate of 15% to 20%, up from 10% currently.
Yet, companies like Delta (DAL) and Levi’s (LEVI) are offering up decent outlooks. And the market is rewarding the more upbeat guidance ranges.
Delta stock finished Thursday’s session up 12%. Levi’s popped 7% on Friday as it lifted its full-year sales outlook and said tariffs won’t hammer its business this year.
“Delta’s results tell me that the domestic consumer, while there could be some constraints there, it also shows me the resilience that we’re seeing with corporate America,” StockBroker.com’s Jessica Inskip told me on Opening Bid.
Here is everything we touched on during Yahoo Finance’s Opening Bid on Friday. Tune in live daily to Opening Bid at 9:30 a.m.
President Trump threatened Canada with 35% tariffs in what has been a blistering week of new jawboning on the tariff front. Investors are wondering if all of this is just a classic Trump negotiating tactic or if the president is poised to hit countries hard come the Aug. 1 deadline.
The S&P 500 (^GSPC) and the Nasdaq Composite (^IXIC) reached new all-time highs Thursday. Even with markets in digestion mode today, it still looks like investors are experiencing tariff fatigue.
Great callout on this: A new report from BofA today showed that clients aren’t remotely worried about economic risks or more inflated stock valuations.
“I think I would say we’re in the full fledged flight to crap mode right now, and there’s definitely heavy pockets of speculation,” Interactive Brokers chief strategist Steve Sosnick warned.
Just a few days removed from getting earnings reports from important economic bellwethers like JPMorgan (JPM) and Netflix (NFLX), the market has gotten a taste of what could lie ahead — that is, well-received second quarter earnings beats, solid guidance, and not-so-gloomy earnings call commentary.
Levi’s checked these boxes with its earnings last night and raised its full-year sales outlook.
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