Americans are rushing to buy cars ahead of looming price hikes, fueling a short-term spending spree on goods most vulnerable to the latest <a href="https://www.benzinga.com/news/econ-s">wave of tariff disruptions.</a>



In its Beige Book released Wednesday, the Federal Reserve said most regional districts reported moderate to robust vehicle sales, attributing the surge to "a rush to purchase ahead of tariff-related price increases." 



The data underscores growing anxiety as the 25% tariff on imported automobiles, imposed by the Trump administration, took effect on April 3.



<h3 class="wp-block-heading">A Tale of Two Consumers: Autos Hot, Everything Else Not</h3>



While Americans are racing to lock in car deals, non-auto consumer spending has taken a hit. 



The Beige Book's national summary described overall economic activity as "little changed," with only five of the 12 Fed districts reporting slight growth. In contrast, three districts were flat, and four reported declines.



The diverging consumer behavior is stark. In the Cleveland district, for instance, retail demand slumped, but auto dealers saw a wave of customers "pulling forward purchases" in anticipation of higher prices. 



In New York, economic activity contracted modestly, and businesses conveyed "significant concern about tariffs," leading many to brace for declining activity and surging costs.



<h3 class="wp-block-heading">Inflation Fears Mount As Tariff Surcharges Hit Supply Chains</h3>



Prices rose across all districts due to trade disruptions. 



At least six districts described the price growth as moderate, and another six as modest, yet across the board, tariffs were named as a key driver. Businesses are already receiving cost-hike notifications from suppliers and in many cases are adding surcharges or shortening pricing horizons.



"Most businesses expected to pass through additional costs to customers," the Fed said, although several also flagged the risk of margin compression as demand weakens, particularly for consumer-facing firms.



In Kansas City, expectations of price growth rose "at a robust rate," particularly in the goods sector, while in Dallas, "input cost pressures accelerated" and outlooks deteriorated amid trade uncertainty.



<h3 class="wp-block-heading">Outlook Worsens As Trade Uncertainty Takes Hold</h3>



The clearest theme from the Fed's April Beige Book is that the U.S. economy is barely growing. 



While pockets of strength, like the auto sales boom, show consumers are still willing to spend, those surges appear driven by fear of future costs rather than optimism.



That fear of higher prices, lower margins, and supply disruptions is increasingly shaping decisions for both consumers and businesses. 



Michigan-based automakers General Motors Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) and Ford Motor Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) are scheduled to release their first-quarter earnings on April 29 and May 5, respectively.



Investors will be closely watching to see whether the recent increase in vehicle sales has come with added costs—and how that has impacted automakers' profit margins.



Read now: 



<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/04/44957724/tesla-stock-faces-demand-political-tariff-pressure-why-analysts-focus-on-multiple-generational-growth-drivers">Tesla Stock Faces Demand, Political, Tariff Pressure: Why Analysts Focus On &#8216;Multiple Generational Growth Drivers&#8217;</a></li>
</ul>



Photo: Shutterstock

Analyst Color

Equities

Large Cap

Macro Economic Events

Econ #s

Economics

Federal Reserve

Analyst Ratings

Tech

ETFs

STLA

Americans Rush To Buy Cars Ahead Of Tariff Price Hikes, Fed Beige Book Shows

Chipotle Mexican Grill Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>) reported financial results for the first quarter after the market close on Wednesday. Here&#8217;s a look at the key details<a href="https://www.benzinga.com/pressreleases/25/04/n44964490/chipotle-announces-first-quarter-2025-results"> from the quarter</a>.



Q1 Earnings: Chipotle reported first-quarter revenue of $2.9 billion, missing analyst <a href="https://www.benzinga.com/calendars/earnings" target="_blank" rel="noreferrer noopener">estimates</a>&nbsp;of $2.95 billion. The fast-casual restaurant chain company reported adjusted earnings of 29 cents per share, beating analyst estimates of 28 cents per share, according to <a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



Chipotle said total revenue increased 6.4% on a year-over-year basis, but comparable restaurant sales fell 0.4% year-over-year due to lower transactions of&nbsp;2.3%. The total revenue growth was largely driven by new restaurant openings. Chipotle opened 57 new restaurants in the quarter, and 48 of those locations included a Chipotlane. 



Digital sales represented 35.4% of food and beverage revenue. Restaurant level operating margin was 26.2% in the first quarter. Food, beverage and packaging costs came in at 29.2% of total revenue, up from 28.8% in the first quarter of 2024. Chipotle said the increase was primarily due to inflation and higher usage across several items, including avocados, dairy and chicken.



See Also: <a href="https://www.benzinga.com/general/market-summary/25/04/44945107/bearish-charts-and-upbeat-q1-estimates-heres-how-chipotle-stock-is-doing-after-recent-price-target-revisions">Chipotle Stock Faces Bearish Charts Despite Upbeat Q1 Estimates And Price Target Revisions</a>



The company also repurchased $553.7 million of its stock during the first quarter. Chipotle had $874.7 million remaining under its share repurchase authorization as of March 31.



&#8220;While our first quarter results were impacted by several headwinds, including weather and a slowdown in consumer spending, our teams continue to make significant progress improving the execution in our restaurants, innovating our back of house, and building Chipotle into a global iconic brand,&#8221; said Scott Boatwright, CEO of Chipotle.



&#8220;I am confident that we have a strong plan to return to positive transaction comps by the second half of the year, and during these uncertain times, we will continue to invest in the things that make Chipotle a special brand — our people, culinary, value proposition, innovation and growth.&#8221;



Guidance: Chipotle expects full-year 2025 comparable restaurant sales growth in the low-single-digit range, down from prior guidance for growth in the low- to mid-single-digit range. The company continues to expect to open between 315 and 345 new restaurants in 2025 with more than 80% including a Chipotlane.



Chipotle executives will further discuss the quarter on a conference call with investors and analysts at 4:30 p.m. ET.



CMG Price Action: <a href="https://www.benzinga.com/quote/CMG" target="_blank" rel="noreferrer noopener">Chipotle shares</a> were down approximately 20% year-to-date heading into Wednesday&#8217;s report. Shares were down 3.61% after-hours, trading at $46.34 at the time of publication Wednesday, according to <a href="http://pro.benzinga.com" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/general/restaurants/25/04/44907247/restaurant-sector-q1-volatilty-from-weather-inflation-analyst-lowers-price-targets">Restaurant Sector Q1 Volatilty From Weather, Inflation — Analyst Lowers Price Targets</a></li>
</ul>



Photo: Shutterstock.

Earnings

News

Restaurants

Movers

Chipotle Investors Get Burnt On Q1 Earnings As Comparable Sales Fall Amid Slowdown In Consumer Spending

By now, anyone watching markets for more than a few months knows the truth: short-term market moves are anyone&#8217;s guess, but over the long haul, valuation is destiny.



When it comes to long-term opportunities in the market indexes, you&#8217;ve got to get under the hood of sentiment, valuation, and allocation. That&#8217;s where three time-tested signals come in: the market cap-to-GDP ratio (Buffett&#8217;s favorite valuation compass), aggregate investor allocation to equities (an under-the-radar sentiment gauge), and the excess CAPE yield (a rare bright light in the world of macro).



Together, they don&#8217;t just whisper. They shout.



Specifically, they shout that stocks are a loser's game, and that you need to invest in a very specific asset class. 



Don't worry – doing so is easy, profitable, and pays an 8.5% yield, too.



Let&#8217;s start with the most poetic signal of them all, Warren Buffett&#8217;s beloved Market Cap to GDP.



At present, the total U.S. market cap (Wilshire 5000) sits well over 170% of U.S. GDP. Historically, a ratio over 120% indicated future annual returns well below the long-term average of ~9–10%. 



At today&#8217;s stretched levels, we&#8217;re firmly in the danger zone. Past instances (think 1999) saw returns that struggled to break the mid-single digits, even before accounting for inflation.



If mean reversion is the rule (and it always eventually is), then we are looking at forward nominal returns in the neighborhood of 3–5%, possibly lower if we go full cycle and dip below the mean.



Next up, Investor Allocation to Equities, which might be the most predictive (and most ignored) signal of the three. The Federal Reserve&#8217;s Financial Accounts data tells us what share of household financial assets is in equities. Right now, that&#8217;s hovering near all-time highs at roughly 45% of assets. And here&#8217;s the rub: historically, when equity allocations are this high, future ten-year returns tend to come in very low.



A 2012 study by J.P. Morgan&#8217;s Michael Cembalest showed that the equity allocation metric was incredibly accurate when predicting subsequent ten-year returns.



At today&#8217;s levels, that model implies sub-3% real returns on the S&amp;P 500. If you&#8217;re counting on 7–8% a year to fund your retirement, you&#8217;d better hope for a miracle, or a crash that resets the starting line.



Finally, the Excess CAPE Yield, which compares the inverse of the Shiller CAPE ratio (that is, earnings yield) to the ten-year Treasury yield. It&#8217;s one of the few signals that adjusts for the low-rate environment. Currently, with a CAPE of ~33 and ten-year yields above 4.5%, the excess yield is approaching negative territory.



That&#8217;s a historically awful setup.



Whenever excess CAPE yield has turned negative, future returns tend to hover at or below the rate of inflation.



The basic logic? If you can get 4.5% with no risk and stocks are offering a real yield of less than 3%, the equity risk premium is functionally zero.



There&#8217;s simply no reason to stretch for stocks, unless you&#8217;re betting on multiple expansion from already excessive levels. Good luck with that.



Put it all together and here&#8217;s the story: the S&amp;P 500 is priced to deliver at best 3–4% nominal returns annually over the next decade, with a decent shot of dipping closer to 1–2% if we get a proper valuation washout. And that&#8217;s before factoring in inflation. On a real return basis, you could be looking at flat or even negative returns over the next ten years. That&#8217;s not a doomsday forecast.



It&#8217;s the historical norm when starting valuations and sentiment are this euphoric.



Could we do better? Sure.



Markets are not math equations, and momentum can keep valuations lofty longer than any sane person would expect.



But betting your money on that outcome is playing chicken with history.



There is an asset class and strategy that can put us on the right side of history and deliver solid returns even if stocks do better than expected: the forgotten workhorses of the capital markets.



I&#8217;m talking about the upper tier of the high-yield market, otherwise known as &#8220;fallen angels&#8221; or &#8220;almost junk.&#8221; These bonds have a fascinating habit of quietly winning when nobody&#8217;s looking.



This has been especially true during equity market &#8220;lost decades,&#8221; when the S&amp;P 500 spins its wheels and delivers little to no return for years on end. These bonds have consistently proven themselves to be a reliable, even remarkable, source of income and capital appreciation.



Let&#8217;s set the historical table. The 1970s and the 2000 to 2010 periods are the two big &#8220;lost decades&#8221; most investors remember.



During the inflation-ravaged 1970s, high-quality high-yield bonds quietly outperformed both stocks and government bonds, delivering nominal returns in the 8–10% range while equities barely kept pace with inflation.



The S&amp;P 500 returned just under 6% annually in nominal terms, but with inflation averaging over 7%, real returns were negative.



There were also massive drawdowns of 50% of so in the indexes.



By contrast, bonds offering high yields and moderate credit risk provided a steady stream of income that not only kept up with inflation but also offered positive absolute returns.



Unlike lower-rated junk bonds, these bonds avoided the worst default risk while still capturing a significant portion of the excess yield available during a decade marked by rising rates and economic instability.



From 2000 through 2009, the S&amp;P 500 had a total return of -0.9%, a negative return over ten full years, including dividends. The market had to digest the dot-com collapse, the accounting scandals, 9/11, and finally the global financial crisis. It was a brutal stretch for equity investors.



Meanwhile, high-quality high-yield bonds delivered positive annualized returns north of 7%. That&#8217;s not just a win. It&#8217;s a rout.



These bonds effectively live in the &#8220;sweet spot&#8221; of the credit spectrum: high enough yield to matter, low enough risk to survive.



Institutional investors who bought high-quality, high-yield bonds and held them to maturity were clipping generous coupons, while stock investors endured a rollercoaster that ultimately went nowhere in real terms.



While long-duration Treasuries got crushed and equities faced P/E compression, high-quality high-yield bonds quietly delivered. If we&#8217;re heading into another period of stagflation or a lost decade in stocks, history suggests these bonds could once again be the unsung heroes of portfolio construction.



My favorite way to invest in high-quality high-yield bonds is through individual bonds.



I cut my teeth on credit back in the late 1980s and early 1990s during the wreckage of the Michael Milken and corporate raider era.



Digging through financial statements to find bargains is, as Austin Powers might opine, &#8220;My bag, baby.&#8221;



However, it is a very hands-on strategy and is not always an easy market for individuals to trade.



My favorite way for most investors to play this lucrative market right now is ETF from Infrastructure Capital Advisors. The firm&#8217;s new Capital Bond Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BNDS#NYSE">BNDS</a>) is high-quality high-yield done right.



Fund manager Jay Hatfield&#8216;s approach to markets and credit is similar to mine.



The portfolio is comprised of bonds that I would cheerfully add to my own.



Hatfield also opportunistically uses an option-writing strategy to enhance income while maintaining upside market exposure by using high-yield ETFs.



The current distribution yield is 8.5%, and many of the issues trade at a significant discount to par value.



If valuation and economic measures prove to be right again, the yield alone will deliver a significant premium to the return of the S&amp;P 500.



The narrowing of the discount as bonds move closer to maturity or prices move higher in response to credit upgrades or fed actions will be a bonus.



<h2 class="wp-block-heading">Gold Pullback Alert: Matt Maley's Next Trade</h2>



The same strategy that delivered a verified 2,400% gain on SQQQ for Matt's Inner Circle members is now signaling a gold trade. Get The Newest Trade Alert For Free Right <a href="https://www.benzinga.com/premium/ideas/7-day-free-trial-matt-maley-inner-circle/?el=R[…]}}&amp;utm_adType=SponsorAd&amp;utm_ad=RD0424&amp;utm_campaign=7daytrial">HERE</a>.



Editorial content from our Expert contributors is intended to be information for the general public and not individualized investment advice. Editors/contributors are presenting their individual opinions and strategies which are neither expressly or impliedly approved or endorsed by Benzinga.



Photo: Shutterstock

Opinion

Trading Ideas

BNDS

3 Key Signals Say It's Time To Invest In This 'Forgotten' Market, Here's How

Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) analysts are cautious on the short-term outlook of the electric vehicle company after it missed revenue and earnings per share estimates in<a href="https://www.benzinga.com/news/earnings/25/04/44937440/tesla-q1-misses-estimates-as-tariff-pressures-weigh-on-outlook-lower-cost-evs-still-on-track"> the first quarter.</a>



The Tesla Analysts: 



<ul>
<li>Truist Securities analyst William Stein maintained a Hold rating on Tesla with a $280 price target.</li>



<li>Needham analyst Chris Pierce reiterated a Hold rating with no price target.</li>



<li>Goldman Sachs analyst Mark Delaney maintained a Neutral rating and lowered the price target from $260 to $235.</li>



<li>Stifel analyst Stephen Gengaro reiterated a Buy rating with a $455 price target.</li>



<li>Cantor Fitzgerald analyst Andres Sheppard reiterated an Overweight rating and lowered the price target from $425 to $355.</li>



<li>Piper Sandler analyst Alexander Potter reiterated an Overweight rating with a $400 price target.</li>



<li>Benchmark analyst Mickey Legg reiterated a Buy rating with a $350 price target.</li>



<li>Canaccord Genuity analyst George Gianarikas reiterated a Buy rating and lowered the price target from $404 to $303.</li>
</ul>



Read Also: <a href="https://www.benzinga.com/news/management/25/04/44940011/benzinga-readers-predictions-for-tesla-q1-earnings-results-musks-announcements">Benzinga Readers&#8217; Predictions For Tesla Q1 Earnings Results, Musk&#8217;s Announcements</a>



Truist Securities on TSLA: Weak delivery data and 2025 growth being withdrawn were negatives from Tesla's first quarter, Stein said in a new investor note.



"Despite weak results, TSLA's reaffirming operating goals is a positive," Stein said.



Positives from Tesla's earnings call highlighted by the analyst were CEO Elon Musk shifting time from the Department of Government Efficiency to Tesla in May, tariffs hurting other automakers more than Tesla, a lower-cost model on track for the first half of 2025 and the Robotaxi service starting in Austin in June.



The analyst said the first-quarter results saw management commentary on tariffs and political sentiment that could impact demand and costs, and saw growth guidance for 2025 withdrawn.



"We remind investors that TSLA has historically delivered stunning technical achievements, but often delivered later than initially promised. We maintain an open mind."



Needham on TSLA: A demand rebound for Tesla could be difficult, Pierce writes in a new investor note.



"We're sensitive to short-term political headwinds hurting demand, but we've yet to hear a compelling reason why TSLA demand will bounce back quickly," Pierce said.



The analyst said Tesla's bullish tone on FSD, robotaxis and Optimus bot continue to be an attempt to point to higher margin segments.



"We continue to see these call options as more priced in that not."



Goldman Sachs on TSLA: The first quarter was a mixed report for Tesla, Delaney said in a new investor note.



The analyst said new product launches, tariffs, margins, FSD and robotaxis are likely to be the key debates following the quarterly results and conference call.



"We still see downside risk to consensus estimates over the intermediate term given tariff costs and end demand considerations," Delaney said.



The analyst said the new lower-cost vehicles could also be less unique than expected, given new company comments.



Stifel on TSLA: A weak first quarter was "not a big surprise," Gengaro said in a new investor note.



"We believe 1Q25 results/commentary are modestly positive for TSLA," Gengaro said.



The analyst said positives are the lower-priced vehicles remaining on track, confidence in FSD rollout, progress made on robotaxis and Musk spending more time at Tesla in the coming months.



"We reiterate our belief that TSLA remains very well positioned, and FSD and Robotaxi will be critical value drivers."



Cantor Fitzgerald on TSLA: Sheppard remains bullish on Tesla with the launch of Robotaxi in Texas in June and the lower-priced vehicles coming in the first half of 2025 being reiterated.



"We are also encouraged by Musk's comments that his time at DOGE will be significantly reduced starting in May, and that as a result, he plans to allocate more time to Tesla," Sheppard said.



The analyst said additional FSD rollouts like China and Europe, high volume production of Optimus and the introduction of the Tesla Semi Truck are key catalysts to watch.



"We continue to see future revenue upside from FSD, Robotaxi, Energy Storage &amp; Deployment and Optimus Bots, to be fundamental to TSLA's thesis over the long term."



The analyst said there is increasing concern in the near term given tariffs and macroeconomic uncertainties.



Piper Sandler on TSLA: First quarter financials were "weak," according to Potter.



"No slam dunks in Q1, but management said enough to keep the dream alive," Potter said.



The analyst said the most important takeaway from the first-quarter results is the timeline for robotaxis and lower-priced vehicles remaining in place.



"With &lt;2 months until the end of June, investors can look forward to some interesting catalysts in the weeks ahead."



Benchmark on TSLA: The market outlook on Tesla could be clouded given the concern of tariffs on the industry, Legg said in a new investor note.



The analyst said Robotaxis, Optimus and new products provide long-term upside.



"We believe investors should look beyond the short-term road bumps and focus on the breadth of upcoming opportunities," Legg said.



Legg said concerns on the political backlash against Tesla could be overblown and Musk allocating less time with DOGE could help the politicization of the brand to subside.



Canaccord Genuity on TSLA: Gianarikas said there are risks and the current environment surrounding Tesla "is tricky" in a new investor note.



The analyst said the opportunity for robotaxis, FSD and more new products remains the key for the company.



"We believe in the long-term vision. Tesla has multiple generational growth drivers over the long term," Gianarikas said.



The analyst said the rest of the year will be important for the future of Tesla.



&#8220;The bottom line is that for the stock to work, to get its mojo back, the growth arc must materially turn positive," the analyst noted.



TSLA Price Action: Tesla stock is up 6.38% to $253.19 on Wednesday versus a 52-week trading range of $157.40 to $488.54.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/general/restaurants/25/04/44939582/tesla-drive-in-movie-theater-diner-supercharger-location-could-be-close-to-opening">Tesla Drive-In Movie Theater, Diner Supercharger Location Could Be Close To Opening</a></li>
</ul>



Photo: Shutterstock

Price Target

Reiteration

TSLA

Tesla Stock Faces Demand, Political, Tariff Pressure: Why Analysts Focus On 'Multiple Generational Growth Drivers'

U.S. Treasury Secretary Scott Bessent called for a sweeping overhaul of the International Monetary Fund and World Bank, criticizing China's export-driven model and urging a global economic reset aligned with the Trump administration's redefined vision <a href="https://www.benzinga.com/news/econ-s">of the Washington Consensus.</a>



"We must make the IMF the IMF again," Bessent said Wednesday in a panel hosted by the Institute of International Finance during the the Fund&#8217;s Spring Meetings in Washington. 



Bessent criticized what he described as "mission creep" that's diverted the fund's focus toward climate, gender and social programs. He argued that such priorities have "crowded out" the IMF's core responsibility: ensuring global monetary stability.



Despite growing speculation about the future of the U.S. dollar in a shifting global order, Bessent reaffirmed the administration's commitment to a strong dollar policy.



"A strong dollar means having the right policies in place to attract capital and inspire confidence," he said, adding that exchange rates are ultimately set by markets. 



"The U.S. will remain the world's reserve currency for my lifetime—and frankly, I'm not sure anyone else wants the job."



<h3 class="wp-block-heading">IMF Policies: Back To Basics?</h3>



Bessent called for a wholesale reset of the Bretton Woods institutions, arguing both the IMF and World Bank have strayed from their founding charters. 



"These institutions have enduring value, but mission creep has knocked them off course," he said.



For the IMF, Bessent said its lending should remain temporary and tied to strong reform commitments, pointing to Argentina as an example of progress. 



Yet, he stressed that not all countries should expect support: "Sometimes, the IMF needs to say no."



He also took direct aim at the IMF's 2024 External Sector Report, calling it symptomatic of a broader reluctance to confront hard truths. 



"The IMF has been whistling past the graveyard," he said.



Bessent urged the fund to call out surplus countries, particularly China, for pursuing policies that distort global trade and currency markets. 



"China's opaque currency practices and unsustainable lending for many decades must be addressed," he said, emphasizing the need for stronger scrutiny of bilateral lending practices.



<h3 class="wp-block-heading">China: The Heart Of Global Imbalances</h3>



Bessent's sharpest criticism was reserved for Beijing. 



"China's economic model is built on exporting its way out of trouble. It's unsustainable—not just for China, but for the world," he said.



Recent data, Bessent noted, shows China tilting further away from consumption and toward industrial overcapacity. 



He accused the country of suppressing wages and encouraging excess savings, creating persistent trade imbalances and undermining global demand.



&#8220;These practices contribute to global dependence on U.S. demand to Spur growth. They also lead to a global economy that is weaker and more vulnerable,&#8221; Bessent said. 



"China must shift toward supporting its own consumers," he said. "We all know change is needed. Even China knows it."



<h3 class="wp-block-heading">World Bank: No Blank Checks</h3>



Like the IMF, Bessent said the World Bank must eliminate vague, slogan-driven initiatives and reorient around clear developmental outcomes. 



He advocated an "all-of-the-above" approach to energy financing, including lifting restrictions on nuclear and fossil fuels to boost affordable base-load generation in emerging markets.



"Energy abundance sparks economic abundance," Bessent said, encouraging the bank to move beyond climate finance targets and instead focus on sustainable growth.



He also called for firm graduation timelines for countries like China, which he argued no longer qualify as developing economies and should stop receiving concessional financing.



On Ukraine, Bessent was unequivocal: "No one who financed or supplied the Russian war machine will be eligible for funds earmarked for Ukraine's reconstruction."



Read now: 



<ul>
<li><a href="https://www.benzinga.com/government/regulations/25/04/44952395/us-business-activity-growth-slows-in-april-as-services-suffer-tariff-shock-markets-rally-as-trade-war-cools">Business Growth Cools, Prices Rise, And Markets Surge On Tariff Rollback Hopes</a></li>
</ul>



Photo: Shutterstock

Government

Regulations

Bessent Blasts China's Economic Model, Calls For Global Reset, IMF Refocus

Risk-on sentiment dominated Wall Street on Wednesday, as upbeat earnings reports and conciliatory messages from the Trump administration h<a href="https://www.benzinga.com/markets">elped lift investor confidence.</a>



The administration eased market fears on two major fronts that have recently weighed heavily on sentiment. On the trade front, tensions with China appeared to thaw, with reports suggesting the White House is considering reducing tariffs on certain categories of goods.



U.S. Treasury Secretary Scott Bessent added fuel to the rally, stating U.S.-China tariffs are unsustainable and will likely need to be lowered to facilitate meaningful negotiations.



Meanwhile, President Donald Trump offered an abrupt shift in tone toward Federal Reserve Chair Jerome Powell, saying he has no intention to fire him, a remark that helped calm concerns over political interference in monetary policy.



By midday in New York, the S&amp;P 500 was up by nearly 2%, though it had earlier climbed even higher. The Nasdaq 100 outperformed with a 2.5% gain, driven by strength in Magnificent Seven stocks.



Trump's pivot on Powell pushed Treasury yields lower across the curve, with the 30-year yield falling five basis points to 4.83%, after briefly topping 4.90% the previous day.



On the macro front, flash Purchasing Managers&#8217; Index surveys revealed slowing growth momentum in the U.S. economy, as the services sector decelerated sharply following the impact <a href="https://www.benzinga.com/government/regulations/25/04/44952395/us-business-activity-growth-slows-in-april-as-services-suffer-tariff-shock-markets-rally-as-trade-war-cools">of recent tariff shocks.</a>



The U.S. dollar strengthened, while gold plunged 2.6%, heading for its worst session since November.



Oil prices dropped more than 2% following speculation that OPEC+ may announce a new output hike as early as next month.



Meanwhile, Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) held steady around $93,000.



<h1 class="wp-block-heading">Wednesday&#8217;s Performance In Major U.S. Indices, ETFs</h1>



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Major Indices</td><td>Price</td><td>Chg</td><td>1-day %</td></tr><tr><td>Nasdaq 100</td><td>18,732.09</td><td>+455.68</td><td>2.5%</td></tr><tr><td>Russell 2000</td><td>1,926.45</td><td>+37.40</td><td>2.0%</td></tr><tr><td>S&amp;P 500</td><td>5,384.67</td><td>+96.91</td><td>1.8%</td></tr><tr><td>Dow Jones</td><td>39,724.87</td><td>+537.89</td><td>1.4%</td></tr></tbody></table><figcaption class="wp-element-caption">Updated at 12:35 p.m. ET</figcaption></figure>



According to&nbsp;<a href="https://www.benzinga.com/pro/?utm_source=BZprocontent&amp;t=be2bearmibe3na1">Benzinga Pro</a>&nbsp;data:



<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rose 1.9% to $537.35.</li>



<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) rose 1.4% to $397.79.</li>



<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>)&nbsp;rallied 2.7% to $456.50.</li>



<li>The&nbsp;iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) soared 2.1% to $191.47.</li>



<li>The&nbsp;Technology&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) outperformed, up 3.44%; the&nbsp;Consumer Staples&nbsp;Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) lagged, down 1.2%.</li>
</ul>



<h1 class="wp-block-heading">Wednesday&#8217;s Stock Movers</h1>



<ul>
<li>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) jumped 6.6% despite falling short on both earnings and revenue expectations, as CEO Elon Musk reassured investors by pledging to scale back his involvement with DOGE and refocus on the company.</li>
</ul>



Other stocks reacting to earnings report included: 



<ul>
<li>Intuitive Surgical Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ISRG#NASDAQ">ISRG</a>): up 2.8%</li>



<li>Chubb Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CB#NYSE">CB</a>): down 2.6%</li>



<li>Capital One Financial Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COF#NYSE">COF</a>): up 4.6%</li>



<li>Steel Dynamics Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STLD#NASDAQ">STLD</a>): up 4.7%</li>



<li>EQT Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EQT#NYSE">EQT</a>): up 3%</li>



<li>Packaging Corporation of America (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PKG#NYSE">PKG</a>): down 1.7%</li>



<li>Baker Hughes Co. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BKR#NASDAQ">BKR</a>): down 4.3%</li>



<li>Enphase Energy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ENPH#NASDAQ">ENPH</a>): down 14.4%​</li>



<li>Thermo Fisher Scientific Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TMO#NYSE">TMO</a>): down 0.5%</li>



<li>Philip Morris International Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PM#NYSE">PM</a>): up 2.6%</li>



<li>NextEra Energy, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEE#NYSE">NEE</a>): up 1%</li>



<li>Boston Scientific Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BSX#NYSE">BSX</a>): up 4.8%</li>



<li>General Dynamics Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GD#NYSE">GD</a>): down 3.4%</li>



<li>Boeing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>): up 5.7%</li>



<li>Norfolk Southern Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NSC#NYSE">NSC</a>): up 1.4%</li>



<li>CME Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CME#NASDAQ">CME</a>): down 3.8%</li>



<li>TE Connectivity Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TEL#NYSE">TEL</a>): up 2.7%</li>



<li>Amphenol Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/APH#NYSE">APH</a>): up 9.9%</li>



<li>AT&amp;T Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/T#NYSE">T</a>): up 0.8%</li>



<li>Old Dominion Freight Line, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ODFL#NASDAQ">ODFL</a>): up 1.3%</li>



<li>Westinghouse Air Brake Technologies Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WAB#NYSE">WAB</a>): up 7.2%</li>



<li>Masco Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MAS#NYSE">MAS</a>): down 2.1%</li>



<li>Avery Dennison Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AVY#NYSE">AVY</a>): down 2.4%</li>



<li>Lennox International Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LII#NYSE">LII</a>): down 8.2%</li>



<li>GE Vernova Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEV#NYSE">GEV</a>): up 5.2%</li>



<li>Teledyne Technologies Incorporated (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDY#NYSE">TDY</a>): down 1.7%</li>



<li>Otis Worldwide Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OTIS#NYSE">OTIS</a>): down 6%​</li>
</ul>



<ul>
<li>Stocks slated to report earnings after the bell include Chipotle Mexican Grill, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>), O'Reilly Automotive, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ORLY#NASDAQ">ORLY</a>), Raymond James Financial, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RJF#NYSE">RJF</a>), Molina Healthcare, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MOH#NYSE">MOH</a>), Texas Instruments Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TXN#NASDAQ">TXN</a>), FirstEnergy Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FE#NYSE">FE</a>), ServiceNow, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOW#NYSE">NOW</a>), Lam Research Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LRCX#NASDAQ">LRCX</a>), Resmed Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RMD#NYSE">RMD</a>), Discover Financial Services (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFS#NYSE">DFS</a>), International Business Machines Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBM#NYSE">IBM</a>), Newmont Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEM#NYSE">NEM</a>), Rollins Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ROL#NYSE">ROL</a>), United Rentals Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/URI#NYSE">URI</a>), Tyler Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TYL#NYSE">TYL</a>), Edwards Lifesciences Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EW#NYSE">EW</a>), Las Vegas Sands Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LVS#NYSE">LVS</a>), and Alaska Air Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALK#NYSE">ALK</a>).</li>
</ul>



Read Now: 



<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/25/04/44948932/goldman-sachs-backs-copper-tariff-trade-if-trump-slaps-25-duty-on-us-imports">Goldman Sachs Backs &#8216;Copper Tariff Trade&#8217; If Trump Slaps 25% Duty On US Imports</a></li>
</ul>



Photo: Shutterstock

Broad U.S. Equity ETFs

$BTC

ENPH

ISRG

LRCX

ODFL

ORLY

OTIS

STLD

Stocks Surge On China Tariff Hopes, Tesla Jumps, Gold Loses Shine: What's Driving Markets Wednesday?

U.S. business activity kept expanding in April, but beneath the surface, growth is losing steam, inflation is reawakening, and the once-reliable services sector is showing signs of malaise following Donald Trump&#8216;s tariff <a href="https://www.benzinga.com/topic/donald-trump">announcements earlier this month.</a>



In flash data released Wednesday by S&amp;P Global, a slowdown in service sector activity dragged the U.S. Composite Purchasing Managers' Index (PMI) to 51.2 in April, down from 53.5 in March. While still above the 50 mark that separates expansion from contraction, it's the weakest reading since December 2023.



The flash Services PMI dropped to 51.4 from 54.4, marking the second-slowest pace of growth in the past year, and missing estimates of 52.5. 



The Manufacturing PMI slightly improved to 50.7, up from 50.2, outpacing expectations of a drop to 49.1.



Chris Williamson, chief business economist at S&amp;P Global Market Intelligence, said the figures signal that U.S. output is expanding at a sluggish annualized pace of just 1.0%. 



He added that the manufacturing sector is "broadly stagnating," with the dampening effects of economic uncertainty and weakening exports offsetting any tailwind from tariffs.



<h3 class="wp-block-heading">Tariffs Drive Prices Higher</h3>



Average prices charged for goods and services rose at the fastest pace in 13 months in April, driven by a 29-month high in manufacturing price inflation. Input costs in manufacturing surged at a rate unseen since August 2022, largely due to tariffs, rising import prices and a weaker U.S. dollar.



In services, prices also climbed at a quicker pace, the fastest in seven months, as firms passed on rising costs tied to labor and raw materials. Although the rate of increase in service input costs slowed from March, it remained the second-highest in six months.



"Tariffs are being cited as the key cause of higher prices," Williamson said, adding that these inflationary pressures "will inevitably feed through to higher consumer inflation."



&#8220;This is creating a headache for a central bank which is coming under increasing pressure to shore up a weakening economy just as inflation looks set to rise,&#8221; he added. 



<h3 class="wp-block-heading">Market Cheers Possible Tariff Relief</h3>



Despite the downbeat economic data, Wall Street responded with optimism on Wednesday after reports emerged suggesting the Trump administration may ease tariffs on Chinese imports as well as confirmation by the president that he won&#8217;t fire Fed Chair Jerome Powell.



According to a Wall Street Journal report, officials are considering slashing existing duties by up to half, in some cases, and adopting a tiered approach to Chinese imports.



The proposed structure would assign a 35% levy on non-strategic items and at least 100% on products deemed crucial to U.S. national interests, phased in over a five-year period.



A senior White House official said the new policy could reduce the most aggressive tariffs to a range of 50%-65%, aiming to stabilize relations with Beijing and reduce pressure on global supply chains.



The S&amp;P 500 index – tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) – opened over 3% higher, with Nasdaq 100 tech stocks rallying 3.7% and the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) outperforming with a 4% gain.



Gold prices slid as demand for safe-haven assets weakened, with the SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) dropping 3.4%—on track for its worst day since June 2024.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/25/04/44948932/goldman-sachs-backs-copper-tariff-trade-if-trump-slaps-25-duty-on-us-imports">Goldman Sachs Backs &#8216;Copper Tariff Trade&#8217; If Trump Slaps 25% Duty On US Imports</a></li>
</ul>



Photo: Shutterstock

Business Growth Cools, Prices Rise, And Markets Surge On Tariff Rollback Hopes

Goldman Sachs is eyeing a high-reward opportunity in copper that could pay off big if the U.S. follows through on i<a href="https://www.benzinga.com/topic/donald-trump">ts protectionist policy shift.</a>



In a note published on Wednesday, Goldman Sachs analysts led by Eoin Dinsmore outlined a bullish view on what they are calling "The Copper Tariff Trade," a strategy built on the expectation of a potential import tax from the Trump Administration.



<h3 class="wp-block-heading">What's Happening With Copper Tariffs?</h3>



In February, the Trump Administration launched a formal investigation into copper imports under Section 232 — a process used to determine if certain imports pose a national security risk. It's the same move that led to tariffs on steel and aluminum years ago.



&#8220;For metals there is a stated and very real commitment to tariffs, which we believe they will deliver on,&#8221; Dinsmore wrote.



Goldman Sachs thinks copper is next in line. The bank says there's a 90% chance the U.S. will impose a 25% import tariff on foreign copper, possibly as soon as June. But right now, markets are acting like there's only a 60% chance of that happening.



That's where the trade opportunity comes in.



<h3 class="wp-block-heading">The Trade: Bet On COMEX Over LME Copper</h3>



Goldman says the market is underpricing this risk and suggests a tactical move: go long the December 2025 COMEX–London Metal Exchange copper arbitrage.



The trade Goldman likes is based on the price difference between copper traded in the U.S. – on COMEX – and globally, on the London Metal Exchange.



In simpler terms, bet that U.S. copper prices will jump relative to global ones if tariffs are put in place. Right now, U.S. copper for December delivery is trading $1,707 per metric ton higher than global prices — an 18% premium.



If a 25% tariff becomes reality, Goldman says that spread should widen to $2,287 per ton.



The United States Copper Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CPER#NYSE">CPER</a>) is the only U.S.-listed ETF that invests in COMEX copper futures, offering investors direct exposure to U.S. copper prices tied to domestic market dynamics.



<h3 class="wp-block-heading">How Fast Could Copper Tariffs Happen?</h3>



Goldman's base case assigns a 55% probability that the tariff will be announced by the end of June—just 125 days after the investigation began. 



This expectation is supported by a March 26 press report suggesting tariffs could arrive "within weeks." Another scenario, with a 30% probability, pushes the decision to August or early September, based on a 180-day timeline used in previous investigations of critical minerals.



Regardless of the exact timing, the final decision must be made by December 2025, which is why Goldman favors the December COMEX-LME arbitrage trade.



<h3 class="wp-block-heading">How High Could Tariff Rate On Copper Go?</h3>



Goldman's model suggests a "fair" probability-weighted tariff of 22.5% on U.S. copper imports. That figure comes from assigning a 90% probability to a full 25% tariff and 10% to a no-tariff scenario. 



Notably, the investment bank indicated that a middle-ground 10% tariff is "hard to rationalize," especially since copper was excluded from the baseline 10% tariffs already in effect.



<h3 class="wp-block-heading">Why Copper? National Security, Economic Policy, China's Dominance</h3>



The U.S. imports nearly 50% of the refined copper it uses — about 725,000 metric tons last year, worth around $7 billion. That's up from just 25% back in 2010.



Domestic copper production has dropped by 20% since 2010 due to high costs and tough regulations, while global production — mostly in China — has increased by 40%. So even as U.S. demand rises, more copper is coming from abroad, especially from countries like Chile, Peru and Canada.



&#8220;The Trump Administration believes the US&#8217; reliance on copper imports leaves consuming sectors vulnerable to supply disruptions,&#8221; Goldman Sachs stated.



This worries policymakers. Copper is used in defense systems, power grids, electric vehicles, and even AI technology — all areas closely tied to national and economic security.



<h3 class="wp-block-heading">Could Tariffs Boost US Copper Output?</h3>



Goldman expects tariffs to encourage more investment in copper recycling and might help restart idle smelters and refineries. It could also reduce demand for copper exports by making them pricier overseas.



The bigger shift could come from Washington's push to fast-track mining permits. If that goes through, U.S. copper mine production could get a real lift, yet not until the early 2030s.



Photo: Shutterstock

CPER

Goldman Sachs Backs 'Copper Tariff Trade' If Trump Slaps 25% Duty On US Imports

Boeing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) stock soared on Wednesday following the company&#8217;s stronger-than-expected <a target="_blank" href="https://www.benzinga.com/pressreleases/25/04/n44945808/boeing-reports-first-quarter-results" rel="noreferrer noopener">first-quarter 2025</a> results.



Revenue increased 18% year over year to $19.496 billion, beating the consensus of $19.43 billion.



Adjusted loss per share improved to 0.49 cents from $1.13 in the same quarter of 2024. It beat the <a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">consensus of a $1.27 loss per share</a>.



The company reported an operating cash outflow of $1.6 billion and a free cash outflow of $2.3 billion, driven by enhanced operational performance and higher commercial delivery volume. These figures include only the tariffs implemented by March 31.



Also Read: <a target="_blank" href="https://www.benzinga.com//node/44929060" rel="noreferrer noopener">Boeing Finalizes $10.55 Billion Deal To Divest Jeppesen And ForeFlight Assets</a>



Boeing recorded an adjusted operating income of $199 million for the quarter, compared to an adjusted operating loss of $388 million a year ago. The core operating margin recovered to 1% from (2.3)% a year ago.



&#8220;Our company is moving in the right direction as we start to see improved operational performance across our businesses from our ongoing focus on safety and quality. We continue to execute our plan, are seeing early positive results and remain committed to making the fundamental changes needed to fully recover the company&#8217;s performance while navigating the current environment,&#8221; commented Kelly Ortberg, Boeing president and chief executive officer.



Commercial Airplanes revenue rose 75% year over year to $8.157 billion, and an operating margin of -6.6%, driven by higher deliveries. The 737 program gradually increased production, aiming for 38 per month this year, while the 787 program stabilized at five per month, with plans to expand to seven.



The 777X program began expanded FAA certification testing, with the first 777-9 delivery expected in 2026. The division booked 221 net orders and delivered 130 airplanes, with a backlog of over 5,600 planes valued at $460 billion.



Defense, Space &amp; Security revenue slid 9% year over year to $6.298 billion. The backlog was $62 billion, of which 29% represents orders from customers outside the U.S.



Global Services revenue was flat year over year at $5.01 billion, with an operating margin of 18.6%, up 40 bps, driven by favorable performance and mix.



In April, the company agreed to <a target="_blank" href="https://www.benzinga.com/news/asset-sales/25/04/44929060/boeing-finalizes-10-55-billion-deal-to-divest-jeppesen-and-foreflight-assets" rel="noreferrer noopener">sell</a> parts of its Digital Aviation Solutions business to Thoma Bravo for $10.55 billion. The deal includes assets like Jeppesen and ForeFlight and is expected to close by the end of 2025, pending regulatory approval.



Boeing&#8217;s cash and investments in marketable securities rose to $23.7 billion from $26.3 billion, primarily driven by the quarter&#8217;s free cash flow usage. Debt was $53.9 billion, and it holds $10 billion in undrawn credit facilities.



Total backlog grew 5% sequentially to $544.74 billion, including over 5,600 commercial airplanes.



Last week, A Boeing aircraft intended for China was <a target="_blank" href="https://www.benzinga.com/25/04/44888512/boeing-jet-returns-to-us-amid-escalating-tariff-tensions-with-china" rel="noreferrer noopener">redirected</a> to the U.S. amid escalating tariff tensions, with reports of a potential <a target="_blank" href="https://www.benzinga.com/news/global/25/04/44883727/chinas-boeing-ban-could-backfire-on-its-own-aircraft-manufacturer-comac" rel="noreferrer noopener">Chinese ban</a> on Boeing imports.



While China&#8217;s move could benefit Airbus, it may also harm Comac, which relies on U.S. technology for its C919 model. Boeing&#8217;s deliveries face uncertainty, but the ongoing trade dispute highlights the company&#8217;s significant role in the global aviation market.



Price Action: At the last check on Wednesday, BA shares were trading higher by 5.67% at $171.74 premarket.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/trading-ideas/technicals/25/04/44933957/boeing-preps-for-a-rough-q1-takeoff-but-10-55-billion-cash-deal-could-provide-a-soft-landing" target="_blank" rel="noreferrer noopener">Boeing Preps For A Rough Q1 Takeoff &#8211; But $10.55 Billion Cash Deal Could Provide A Soft Landing</a></li>
</ul>



Image via Shutterstock

Guidance

Boeing Clocks 18% Q1 Topline Growth, Plans Production Expansion For 737 And 787

AT&amp;T Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/T#NYSE">T</a>) reported&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/25/04/n44944470/at-t-delivers-strong-first-quarter-financial-performance" rel="noreferrer noopener">fiscal first-quarter 2025</a> results Wednesday.



The telecom giant reported quarterly&nbsp;operating revenues of $30.63 billion, up 2.0% year over year. This beat the&nbsp;analyst consensus estimate of $30.35 billion. Adjusted EPS of $0.51 also beat&nbsp;the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">analyst consensus estimate of $0.49</a>.



AT&amp;T&#8217;s 324 thousand postpaid phone net adds (versus 349 thousand a year ago) with postpaid phone churn&nbsp;of&nbsp;0.83% (versus 0.72% a year ago). Contrastingly, Verizon Communications Inc&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>) quarterly <a target="_blank" href="https://www.benzinga.com/25/04/44920917/verizon-struggles-with-subscriber-losses-from-price-increases-competition-and-lower-government-support" rel="noreferrer noopener">postpaid phone net losses</a> were 289,000 versus 114,000 net losses Y/Y driven by price hikes, intense rival promotional offers, and lower government support.



Also Read: <a target="_blank" href="https://www.benzinga.com/analyst-ratings/price-target/25/04/44928719/verizons-subscriber-losses-raise-concerns-but-strong-business-revenue-guidance-keeps-analyst-optimistic" rel="noreferrer noopener">Verizon&#8217;s Subscriber Losses Raise Concerns, But Strong Business Revenue, Guidance Keeps Analyst Optimistic</a>



AT&amp;T&#8217;s Consumer Wireline segment had 261 thousand AT&amp;T Fiber net&nbsp;adds. Verizon had 339,000 total broadband net additions,&nbsp;compared to 389,000&nbsp;Y/Y.



AT&amp;T reported 181 thousand AT&amp;T Internet Air net adds.



AT&amp;T&#8217;s adjusted EBITDA of $11.5 billion was up from $11.0 billion a year ago.&nbsp;It spent $4.3 billion on Capex. Net income&nbsp;of&nbsp;$4.7 billion&nbsp;rose compared to $3.8 billion&nbsp;in the year-ago quarter.



The company generated $9.0 billion in operating cash flow (up from $7.5 billion in the year-ago quarter) and $3.1 billion in free cash flow (up from 2.8 billion last year).



Prepaid churn&nbsp;was 2.64% compared to 2.77% in the year-ago quarter. Postpaid phone-only ARPU&nbsp;was $56.56, up 1.8% compared to the year-ago quarter.



Operating Income: Operating income was $5.75 billion, versus $5.85 billion in the year-ago quarter.



The Mobility segment&#8217;s operating income grew 4.2%&nbsp;year over year&nbsp;to $6.74 billion, with a margin of 31.2% compared to 31.4% in the <a target="_blank" href="https://investors.att.com/news-and-events/events-and-presentations" rel="noreferrer noopener">year-ago quarter</a>.



The Business Wireline segment operating margin was (2.2)% compared to 1.3% in the year-ago quarter. The Consumer Wireline segment operating margin was 9.9% compared to 6.4% in the year-ago quarter.



FY25 Outlook: AT&amp;T&nbsp;<a target="_blank" href="https://www.benzinga.com/25/01/43230968/att-q4-earnings-307k-fiber-adds-projects-mid-teens-broadband-growth-in-2025" rel="noreferrer noopener">reiterated consolidated service</a> revenue&nbsp;growth in the low-single-digit range, Mobility service revenue growth in the higher end of 2%-3%, Consumer fiber broadband revenue growth in the mid-teens, and adjusted EPS of $1.97 – $2.07 versus&nbsp;the&nbsp;$2.04 <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">analyst consensus estimate</a>.



It maintained full-year adjusted EBITDA growth of 3% or better and full-year free cash flow, excluding DIRECTV, of $16 billion+.



Chair and CEO&nbsp;John Stankey said AT&amp;T Fiber and 5G wireless were gaining traction. He also reiterated the company&#8217;s priorities it laid out at the 2024 Analyst &amp; Investor Day in December.



Price Action: T stock is up 2.63% at $27.67 in the premarket&nbsp;at&nbsp;the last check on Wednesday.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/news/25/04/44930091/t-mobiles-long-game-five-year-price-lock-takes-a-jab-at-verizon" target="_blank" rel="noreferrer noopener">T-Mobile&#8217;s Long Game: Five-Year Price Lock Takes A Jab At Verizon</a></li>
</ul>



Photo by Jason Taylor AG via Shutterstock

AT&T Adds 324 Thousand Postpaid Subscribers In Q1, Outpaces Verizon's 289 Thousand Loss

Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) says the company plans to launch more affordable models this year amid rising pressure from global competitors.



What Happened: At the earnings call on Tuesday, the company shared that it was working out any ‘last-minute issues' with the product and that the production is reeling from the effects of the current ‘trade' and ‘global' issues.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">NEWS: Tesla says the more affordable models are launching this year, but they are working out last minute issues and that the ramp will be a little slower than they had hoped initially due to current trade/global issues.&mdash; Sawyer Merritt (@SawyerMerritt) <a href="https://twitter.com/SawyerMerritt/status/1914805559968326134?ref_src=twsrc%5Etfw">April 22, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



The company also shared that the planned affordable models will resemble the cars currently in Tesla's line-up. Tesla's current line-up includes the Model S, Model Y, Model 3, Model X, and the Cybertruck.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">NEWS: Tesla says the more affordable models that will be built in the coming months will resemble the form and shape of the cars that Tesla currently makes. &quot;The key is that they will be affordable and that you&#39;ll be able to buy one.&quot; Sounds like a stripped down Model Y.&mdash; Sawyer Merritt (@SawyerMerritt) <a href="https://twitter.com/SawyerMerritt/status/1914816250275897604?ref_src=twsrc%5Etfw">April 22, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Why It Matters: While news of a more affordable Tesla model has been in the headlines for a while, it's worth noting that the company has recently <a href="https://www.benzinga.com/25/04/44888254/elon-musks-tesla-delays-launch-of-affordable-model-y-by-several-months-report">delayed the launch </a>of an affordable Model Y.



Elsewhere, Elon Musk also outlined an update on Tesla's <a href="https://www.benzinga.com/25/04/44941025/tesla-optimus-robot-hit-by-chinas-rare-earth-magnet-crackdown-elon-musk-says-thousands-may-be-ready-by-year-end-but-no-guarantees-when-you-have-a-complex-manufactured-product">Optimus line of humanoid robots</a>, which has been hit with disruptions following China's halt on the export of rare earth metals.&nbsp;&nbsp;



Tesla's earnings call looked back on what was a lackluster quarter for the company, with dwindling sales figures and increased criticism from investors for Musk's involvement with politics. However, the billionaire shared with investors that he will be rolling back on <a href="https://www.benzinga.com/25/04/44940401/elon-musk-says-hell-only-spend-day-or-two-per-week-on-government-matters-to-ensure-fraud-does-not-come-roaring-back-ceos-focus-to-shift-to-tesla-beginning-may">his DOGE commitments</a>.



Price Action: TSLA is currently trading at $237.97 on NASDAQ, according to<a href="https://pro.benzinga.com/dashboard"> Benzinga Pro data</a>.



Check out more of Benzinga's Future Of Mobility coverage by<a href="https://www.benzinga.com/topic/mobility"> following this link.</a>



Read Next:



<ul>
<li><a href="https://www.benzinga.com/markets/25/04/44919745/cybertruck-gets-a-down-to-earth-redesign-as-tesla-shifts-to-traditional-pickup-marketing-amid-poor-sales">Cybertruck Gets A Down-To-Earth Redesign As Tesla Shifts To Traditional Pickup Marketing Amid Poor Sales</a></li>
</ul>



Photo courtesy: Shutterstock

General

Tesla Says More Affordable Models Launching This Year: 'They Will Be Affordable And You'll Be Able To Buy One'

U.S. stock futures continued rising on Wednesday after a day of strong recovery on Tuesday. Futures of major benchmark indices were higher in premarket.



President Donald Trump <a href="https://www.benzinga.com/markets/equities/25/04/44943319/craig-shapiro-takes-a-dig-at-donald-trump-trump-2-0-same-as-1-0-after-administration-hints-at-a-">hinted at a deal with China</a>. While speaking to the reporters at the White House, he said, "I think we will make a deal with China. If we don't make a deal, we will set it. I think they will want to be a part of the United States. We're doing great. This is the Golden Age.&#8221;



Meanwhile, Treasury Secretary Scott Bessent, <a href="https://www.benzinga.com/trading-ideas/movers/25/04/44935649/alibaba-nio-pdd-shares-rise-amid-potential-de-escalation-of-china-trade-tensions-whats-going-on">during a private meeting</a> hosted by JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), hinted at de-escalation with China. 



He said that a deal is achievable even as the formal negotiations have not begun yet. Bessent acknowledged that current duties were untenable, but did not provide the specifics or the timeline of the deal.



The 10-year Treasury bond yielded 4.34% and the two-year bond was at 3.83%. The CME Group's FedWatch <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">tool</a>&#8216;s projections show markets pricing a 94.2% likelihood of the Federal Reserve keeping the current interest rates unchanged in its May meeting. 



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Dow Jones</td><td>1.72%</td></tr><tr><td>S&amp;P 500</td><td>2.17%</td></tr><tr><td>Nasdaq 100</td><td>2.49%</td></tr><tr><td>Russell 2000</td><td>2.21%</td></tr></tbody></table></figure>



The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, rose in premarket on Wednesday. The SPY was up 2.08% to $538.21, while the QQQ advanced 2.50% to $455.59, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



Cues From Last Session:



Fueled by strong earnings reports from 3M Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MMM#NYSE">MMM</a>) and Verizon Communications Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>), alongside a more than 5% after-hours surge for Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), U.S. stocks closed higher Tuesday.



On the economic front, the U.S. Redbook Index increased 7.4% year-over-year in the week ending April 19.



All S&amp;P 500 sectors advanced, led by financial, consumer discretionary, and communication services stocks.



As of Tuesday, the Nasdaq 100 index was down 17.76% from its previous high of 22,222.61 points. The S&amp;P 500 index was 13.98% lower, as compared to the last record high of 6,147.43 points. On the other hand, Dow Jones was 13.06% down from its 52-week high of 45,073.63 points.







<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>2.71%</td><td>16,300.42</td></tr><tr><td>S&amp;P 500</td><td>2.51%</td><td>5,287.76</td></tr><tr><td>Dow Jones</td><td>2.66%</td><td>39,186.98</td></tr><tr><td>Russell 2000</td><td>2.71%</td><td>1,890.28</td></tr></tbody></table></figure>



Insights From Analysts:



Senior economist Mohamed El-Erian underscored in an X post that volatility was the dominant theme for U.S. financial assets as the stocks recovered sharply on Tuesday after Monday&#8217;s heavy selloff.



According to him, Tuesday&#8217;s session followed the &#8220;exact opposite session on Monday,&#8221; which had seen a decline in equities, a fall in the dollar, and a rise in gold prices. 



He was of the opinion that &#8220;Given all the uncertainties in play, it is prudent to expect continued volatility in the weeks ahead.&#8221;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Volatility continues to be the dominant theme for US financial assets: In both the regular session and after-hour trading on Tuesday, stocks bounced strongly, the dollar strengthened and yields edged lower — this as the US authorities signaled a greater probability of… <a href="https://t.co/quJb8UnWRt">pic.twitter.com/quJb8UnWRt</a>&mdash; Mohamed A. El-Erian (@elerianm) <a href="https://twitter.com/elerianm/status/1914830729902743918?ref_src=twsrc%5Etfw">April 22, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Ryan Detrick from Carson Research highlighted a trend in the market, the occurrence of which has marked the bottom within the NYSE in 1987, 2009, 2011 and 2020.



According to the data, over 89% of stocks advanced, with 89% of trading volume on Tuesday. This has happened on two days within nine trading days on April 9 and April 22.



This market signal's reliability stems from extreme market breadth, indicating oversold conditions, often preceding rebounds as investor sentiment shifts.



However, the past performance isn't a guaranteed predictor, especially with current pressures like Trump's tariff policies and potential Federal Reserve rate changes.



Detrick said that after such a market signal, the market was &#8220;Up nearly 25% on avg 6 months later.&#8221;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">&gt;89% advancers and 89% of volume advancing on the NYSE has happened twice over the past 9 trading days. The first big day is a clue, the second is the signal. Rare stuff and has always marked lows. 1/5/87, 3/12/09, 8/11/11, and 4/8/20 Up nearly 25% on avg 6 months later. <a href="https://t.co/xPuEboktAA">pic.twitter.com/xPuEboktAA</a>&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1914879487419830550?ref_src=twsrc%5Etfw">April 23, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



According to Louis Navellier of Navellier &amp; Associates, investors, including Fed Chairman Jerome Powell, have been &#8220;needlessly worried&#8221; about inflation and stagflation that has not materialized. &#8220;The reality is that deflation has arrived in the wake of the lowest crude oil prices in the past four years, so investors, the Fed, and our allies have been unnecessarily worried over nothing,&#8221; he said.



&#8220;The stock market is a manic crowd that likes to react first and think second. It is now time to think and prosper during another spectacular earnings announcement season. Spring has arrived, and consumers are increasingly getting out and about, which is why the strongest retail sales in two years just occurred,&#8221; he added.



See Also: <a href="https://www.benzinga.com/money/how-to-trade-futures">How to Trade Futures </a>



Upcoming Economic Data



Here&#8217;s what investors will keep an eye on Wednesday:



<ul>
<li>Chicago Fed President Austan Goolsbee will speak at 9:00 a.m., whereas St. Louis Fed President Alberton Musalem and Fed Governor Christopher Waller speak after that at 9:30 a.m. ET.</li>
</ul>



<ul>
<li>April&#8217;s S&amp;P flash U.S. services and manufacturing PMI will be announced by 9:45 a.m., and new home sales data for March will be out by 10:00 a.m. ET.</li>
</ul>



<ul>
<li>Fed Beige Book will be out by 2:00 p.m., and Cleveland Fed President Beth Hammack will speak at 6:30 p.m. ET.</li>
</ul>



<ul>
<li>Atlanta Fed President Raphael Bostic will speak at 7:40 p.m. ET.</li>
</ul>



Stocks In Focus:



<ul>
<li>AT&amp;T Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/T#NYSE">T</a>) rose 1.00% in premarket on Wednesday as it is expected to report earnings before the opening bell. Analysts expect a quarterly earnings of 49 cents per share on revenue of $30.35 billion.</li>
</ul>



<ul>
<li>Philip Morris International Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PM#NYSE">PM</a>) was up 0.54% as Wall Street expects it to report earnings of $1.61 per share on revenue of $9.12 billion before the opening bell.</li>
</ul>



<ul>
<li>GE Vernova Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEV#NYSE">GEV</a>) advanced 1.80% as it is expected to report earnings before the opening bell. Analysts expect a quarterly earnings of 42 cents per share on revenue of $7.54 billion.</li>
</ul>



<ul>
<li>Chipotle Mexican Grill Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>) gained 2.02% as Wall Street expects it to report earnings of 28 cents per share on revenue of $2.97 billion after the closing bell.</li>
</ul>



<ul>
<li>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) jumped 6.86% despite posting weaker-than-expected earnings and sales results for its first quarter on Tuesday. However, Elon Musk said that his time at the Department of Government Efficiency was likely to drop &#8220;significantly.&#8221;</li>
</ul>



<ul>
<li>Steel Dynamics Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STLD#NASDAQ">STLD</a>) was 1.63% higher after reporting stronger-than-expected first-quarter. The company shipped 3.5 million tons of steel during the first quarter and generated $230 million of operating income from its steel operations.</li>
</ul>



<ul>
<li>EQT Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EQT#NYSE">EQT</a>) traded higher by 1.81% after projecting increased sales volume and adjusting 2025 expenditure plans for the year.</li>
</ul>



<ul>
<li>Sonoma Pharmaceuticals Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SNOA#NASDAQ">SNOA</a>) surged 77.25% after receiving U.K. MHRA registration for its hypochlorous acid acne products, set for launch in over 1,200 stores via a major pharmacy chain.</li>
</ul>



<ul>
<li>AgriFORCE Growing Systems Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AGRI#NASDAQ">AGRI</a>) climbed 44.13% after it expanded Ohio Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) mining with 500 more S19j Pro Antminers for its second site, boosting the total Ohio hash rate to 130 PH/s.</li>
</ul>



<ul>
<li>MYT Netherlands Parent BV ADR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MYTE#NYSE">MYTE</a>) shares plunged by 30.72% after it decided to rebrand as LuxExperience B.V. with a change in its ticker from MYTE to LUXE on NYSE from May 1, 2025.</li>
</ul>



Commodities, Gold, And Global Equity Markets:



Crude oil futures were trading higher in the early New York session by 1.81% to hover around $64.82 per barrel.



Gold Spot US Dollar declined 1.83% to hover around $3,319.46 per ounce. Its last record high stood at $3,500.33 per ounce. The U.S. Dollar Index spot was higher by 0.17% at the 99.0890 level.



Asian markets were higher on Wednesday, Hong Kong's Hang Seng, India's S&amp;P BSE Sensex, Japan's Nikkei 225, China&#8217;s CSI 300, Australia's ASX 200, and South Korea's Kospi index all advanced. European markets were also higher in early trade.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/25/04/44942759/gamestop-short-seller-andrew-left-goes-long-on-china-and-these-two-us-stocks-amid-the-market-correction-heres-more-on-it">GameStop Short Seller Andrew Left Goes Long On China And These 2 US Stocks Amid Market Correction</a></li>
</ul>



Photo courtesy: Frontpage / Shutterstock.com

Futures

Pre-Market Outlook

Markets

AGRI

MYTE

SNOA

US Stocks Likely To Open Higher After Trump Administration Hints At A Deal With China: 'It Is Prudent To Expect Continued Volatility In The Weeks Ahead,' Says Expert

Economist Craig Shapiro has taken a jibe at President Donald Trump after the administration hinted at a deal with China amid the ongoing market turmoil. He suggested that Trump was caving on all his promises and proposed policies.



What Happened: Shapiro, a macro strategist at the Bears Trap Reports, said in a recent X post that Trump&#8217;s new book should be called &#8220;Art of the Cave.&#8221;



This was also a jibe at the Billionaire Investor Bill Ackman&#8216;s April 9th post, which praised Trump for &#8220;brilliantly executing&#8221; the 90-day tariff pause, calling it the &#8220;Textbook, Art of the Deal.&#8221;



Shapiro, in his post, went on to add that &#8220;Trump 2.0 same as 1.0,&#8221; pointing out that the President has caved to China, Federal Reserve Chairman Jerome Powell, markets, and on cutting the deficit.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Trump&#39;s New Book: Art of the Cave Cave to China Cave to Powell Cave to the Markets Cave on cutting the deficit Trump 2.0 same as 1.0&mdash; Craig Shapiro (@ces921) <a href="https://twitter.com/ces921/status/1914802768977494024?ref_src=twsrc%5Etfw">April 22, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



This comes after Trump spoke to the reporters at the White House on Tuesday and said that his relationship with President Xi Jinping was great and &#8220;it&#8217;s been great for a long time.&#8221;



"I think we will make a deal with China. If we don&#8217;t make a deal, we will set it. I think they will want to be a part of the United States. We&#8217;re doing great. This is the Golden Age,&#8221; he added.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">"I think we will make a deal with China. If we don&#39;t make a deal, we will set it. I think they will want to be a part of the United States. We&#39;re doing great. Golden Age." I don't think this guy could get a $100,000 job in finance. <a href="https://t.co/P1PGPEsO2J">pic.twitter.com/P1PGPEsO2J</a>&mdash; Spencer Hakimian (@SpencerHakimian) <a href="https://twitter.com/SpencerHakimian/status/1914817988038971605?ref_src=twsrc%5Etfw">April 22, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



See Also: <a href="https://www.benzinga.com/government/regulations/25/04/44918830/jim-cramer-takes-a-dig-at-trumps-criticism-of-powell-you-would-actually-buy-this-rally-if-trump-hadnt-criticized-the-fed-chair">Jim Cramer Takes A Dig At Trump&#8217;s Criticism Of Powell: &#8216;You Would Actually Buy This Rally&#8217; If Trump Hadn&#8217;t Criticized The Fed Chair</a>



Why It Matters: Trump was accused of caving by Shapiro following the <a href="https://www.benzinga.com/economics/macro-economic-events/25/04/44910907/top-fed-voices-defend-powell-slam-trumps-attack-on-central-bank-independence">criticism of Powell</a> in a Truth Social post on Monday, issuing a <a href="https://www.benzinga.com/25/04/44720006/markets-take-off-as-trump-announces-90-day-tariff-pause-for-non-retaliating-nations-slaps-china-with-125-duty">90-day tariff pause</a> following bond market turmoil on April 9th, and finally hinting at making a deal with China.



Treasury Secretary Scott Bessent <a href="https://www.benzinga.com/trading-ideas/movers/25/04/44935649/alibaba-nio-pdd-shares-rise-amid-potential-de-escalation-of-china-trade-tensions-whats-going-on">hinted at de-escalation with China</a> during a private session at an event hosted by JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) in Washington, held alongside the IMF and World Bank spring meetings. 



Bessent, during this private meeting, said that a deal is achievable even as the formal negotiations have not begun yet. He said that the current duties were untenable, but did not provide the specifics and the timeline of the deal.



Price Action: Stock markets bounced on the possible de-escalation news on Tuesday.



The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, rose on Tuesday. The SPY was up 2.60% to $527.25, while the QQQ advanced 2.63% to $444.48, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



As of Tuesday, the Nasdaq 100 index was down 17.76% from its previous high of 22,222.61 points. The S&amp;P 500 index was 13.98% lower, as compared to the last record high of 6,147.43 points. On the other hand, Dow Jones was 13.06% down from its 52-week high of 45,073.63 points.



On Wednesday, the futures of Dow Jones were up 1.29%, the S&amp;P 500 index futures rose 1.77%. The Nasdaq 100 futures, on the other hand, were higher by 2.10% 



Read Next:



<ul>
<li><a href="https://www.benzinga.com/25/04/44920880/expert-flags-never-before-observed-trio-falling-stocks-and-short-yields-bucking-rising-long-yields-nothing-is-normal-about-this">Wall Street Veteran Sounds Alarm On &#8216;Never Before&#8217; Seen Market Trio: Falling Stocks, Surging Long Yields, Sinking Short Rates</a></li>
</ul>



Photo courtesy: Rawpixel.com / Shutterstock.com

Craig Shapiro Takes A Dig At Donald Trump: 'Trump 2.0 Same As 1.0' After Administration Hints At A Deal With China

Leading cryptocurrencies rose alongside stocks on Tuesday on hopes that trade tensions between the U.S. and China would ease.



<figure class="wp-block-table"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 9:30 p.m. ET)</td></tr><tr><td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td><td>+5.39%</td><td>$93,035.20</td></tr><tr><td>Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>+11.94%</td><td>$1,771.73</td></tr><tr><td>Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>+12.27%</td><td>$0.1813</td></tr></tbody></table></figure>



What Happened: Bitcoin drove the surge, surpassing $93,000 for the first time since the first week of March.&nbsp;



The rest of the market followed suit, with Ethereum, which was previously immune to Bitcoin's advances, soaring nearly 12% in the last 24 hours.



Bitcoin's April gains shot up to 12.3%, a marked recovery from the 12% dip in the first quarter of 2025.



The rally hit bearish traders hard as nearly $516 million in short positions were wiped out in the last 24 hours.&nbsp;



However, if Bitcoin reversed to $90,000, over $677 million in bullish long bets were at risk of liquidation.



Bitcoin&#8217;s Open Interest lifted 12.18% in the last 24 hours to a new monthly high, while funds locked in Ethereum's futures contract soared 15%.



Interestingly, over 60% of Binance traders with open Bitcoin positions were betting against the leading cryptocurrency, according to the Long/Short Ratio.



The market sentiment dramatically shifted from &#8220;Fear&#8221; to "Greed," according to the Crypto Fear and Greed Index.



Top Gainers (24-Hours)



<figure class="wp-block-table"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 8:30 p.m. ET)</td></tr><tr><td>Immutable (IMX)</td><td>+39.29%</td><td>$0.6469</td></tr><tr><td>Sui (SUI)</td><td>+22.66%</td><td>$2.69</td></tr><tr><td>Bonk (BONK)</td><td>+21.57%</td><td>$0.00001501</td></tr></tbody></table></figure>



The global cryptocurrency market capitalization stood at $2.92 trillion, following an increase of 5.75% in the last 24 hours.



Stocks staged a sharp recovery on Tuesday. The Dow Jones Industrial Average rose 1,016.57 points, or 2.66%, to end at 39,186.98. The S&amp;P 500 jumped 2.51% to close at 5,287.76, while the tech-focused Nasdaq Composite gained 2.71% to end at 16,300.42.



The rebound came after U.S. Treasury Secretary Scott Bessent hinted at a <a href="https://www.benzinga.com/economics/macro-economic-events/25/04/44930495/wall-street-rebounds-ahead-of-tesla-earnings-dow-adds-1000-points-bitcoin-hits-91000-whats-driving-markets-tuesday">potential de-escalation in trade hostilities</a> with China during a JPMorgan-hosted event in Washington.



In other news, the International Monetary Fund <a href="https://in.benzinga.com/government/regulations/25/04/44926902/imf-slashes-us-growth-outlook-as-trump-tariffs-bite-raises-recession-odds-to-40">downgraded</a> its 2025 economic growth forecast for the U.S., citing Trump's tariff policies, while modestly raising its inflation forecast.



See More: <a href="https://www.benzinga.com/money/best-crypto-scanners">Best Cryptocurrency Scanners</a>



Analyst Notes: Influential cryptocurrency analyst Ali Martinez highlighted the zone between $95,600 and $98,290 as the next key resistance for Bitcoin.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"><a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> just hit $90,000, and based on on-chain data from <a href="https://twitter.com/intotheblock?ref_src=twsrc%5Etfw">@intotheblock</a>, the next key area of resistance is between $95,600 and $98,290! <a href="https://t.co/tYDjUmTCfH">pic.twitter.com/tYDjUmTCfH</a>&mdash; Ali (@ali_charts) <a href="https://twitter.com/ali_charts/status/1914682321363505534?ref_src=twsrc%5Etfw">April 22, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Another well-known chartist, going by the pseudonym CrediBULL Crypto, warned against premature celebration.



"Really going to depend on BTC here. A pullback soon and we will likely reject. If BTC keeps pushing, however, there&#8217;s a chance we will get through," the analyst said. "Well we are still right up against our supply zone- so can&#8217;t celebrate just yet.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Well we are still right up against our supply zone- so can&#39;t celebrate just yet. Really going to depend on <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> here. A pullback soon and we will likely reject. If BTC keeps pushing however there&#39;s a chance we will get through. Note a rejection isn&#39;t anything to be scared of-… <a href="https://t.co/mEHS6PBDZa">https://t.co/mEHS6PBDZa</a> <a href="https://t.co/yliPEUsFpQ">pic.twitter.com/yliPEUsFpQ</a>&mdash; CrediBULL Crypto (@CredibleCrypto) <a href="https://twitter.com/CredibleCrypto/status/1914744641351524546?ref_src=twsrc%5Etfw">April 22, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Photo Courtesy: Mc_Cloud on Shutterstock.com



Read Next:    



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/04/44935698/solana-price-climbs-as-galaxy-digital-swaps-eth-for-sol-and-memecoin-momentum-builds">Solana Price Climbs As Galaxy Digital Swaps ETH For SOL And Memecoin Momentum Builds</a></li>
</ul>

Cryptocurrency

$DOGE

$ETH

Bitcoin, Ethereum, Dogecoin Pump Along With Stock On US-China Trade War De-Escalation Hopes: Analyst Flags $95,600-$98,290 As BTC's Next Key Resistance

On Tuesday, Cathie Wood-led Ark Invest made significant trades involving major tech companies. The firm increased its holdings in NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Advanced Micro Devices Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), while also making notable moves with Airbnb Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ABNB#NASDAQ">ABNB</a>) and Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>). These trades reflect Ark&#8217;s strategic positioning amid evolving market conditions.



The Nvidia Trade



ARK Autonomous Technology &amp; Robotics ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ARKQ#BATS">ARKQ</a>) fund acquired 11,000 shares of NVIDIA. On Tuesday, Nvidia shares ended the day at $98.89. The Ark trade was valued at $1.09 million. This move comes amid recent challenges for Nvidia, involving new U.S. <a href="https://www.benzinga.com/government/regulations/25/04/44846329/nvidias-china-sales-face-setback-as-h20-chip-restrictions-catch-key-buyers-off-guard-reuters">export restrictions on its H20 chip to China</a>. The chipmaker&#8217;s failure to inform key clients about these restrictions has raised concerns. Despite these hurdles, Ark&#8217;s investment suggests confidence in Nvidia&#8217;s long-term potential, particularly in the AI and gaming sectors.



The AMD Trade



On the same day, Ark&#8217;s ARKQ fund purchased 24,800 shares of AMD. The chipmaker has faced a decline in its stock price due to U.S. government restrictions on AI chip exports to China. These restrictions have <a href="https://www.benzinga.com/news/25/04/44900227/amd-stock-drops-amid-ai-chip-export-ban-whats-going-on">sparked worries</a> about geopolitical risks and supply chain disruptions. For the day, AMD shares closed at $86.26. The Ark purchase was valued at $2.14 million.



The Airbnb Trade



ARK Fintech Innovation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKF#NYSE">ARKF</a>) and ARK Next Generation Internet ETF (BATS: ARKW) funds collectively bought 80,361 shares of Airbnb. On Tuesday, the shares closed at $114.91, valuing the Ark purchase at $9.23 million. The company has been experiencing <a href="https://www.benzinga.com/general/market-summary/25/02/43722350/airbnb-crushes-q4-estimates-as-classic-hotel-users-flock-to-short-term-rentals-heres-whats-driving-the-surge-in-nights-and-experiences">robust growth</a>, as it surpassed fourth-quarter 2024 earnings expectations, driven by increased bookings in &#8220;nights and experiences.&#8221; The company&#8217;s CFO, Ellie Mertz, noted significant market share gains from traditional hotels. Ark&#8217;s investment aligns with Airbnb&#8217;s strong performance and its potential for continued expansion in the travel sector.



The Microsoft Trade



In a strategic move, Ark&#8217;s ARKW fund sold 26,405 shares of Microsoft valued at approximately $9.7 million based on the latest closing price of $366.82. Despite Microsoft <a href="https://www.benzinga.com/media/25/03/44515782/microsoft-halts-expansion-plans-yet-analysts-still-rank-it-among-top-investment-picks">halting expansion plans</a> for data centers, analysts still rank it among the top investment picks, as reported by Bloomberg. This decision reflects Ark&#8217;s tactical rebalancing, possibly to allocate resources to other emerging opportunities.



Other Key Trades:



<ul>
<li>Sold 268,284 shares of UiPath Inc (PATH) across ARKF and ARKW funds.</li>



<li>Sold 154,591 shares of Kratos Defense and Security Solutions Inc (KTOS) in the ARKQ fund.</li>



<li>Bought 303,603 shares of 10X Genomics Inc (TXG) in the ARKG fund.</li>
</ul>



Benzinga Edge Stock Rankings show AMD ranks in the 12th percentile when it comes to Momentum and 17th in terms of Value. How does it compare to Nvidia? Find out by <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">clicking here</a>.



<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound"><img loading="lazy" decoding="async" width="446" height="278" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/04/22210807/Screenshot-2025-04-23-at-10.07.52.png" alt="" class="wp-image-883101" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/04/22210807/Screenshot-2025-04-23-at-10.07.52.png 446w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/04/22210807/Screenshot-2025-04-23-at-10.07.52-300x187.png 300w" sizes="(max-width: 446px) 100vw, 446px" /></a></figure>



Photo Courtesy: viewimage on Shutterstock.com



Read Next: 



<ul>
<li><a href="https://benzinga.com/trading-ideas/movers/25/04/44932257/billionaire-john-paulson-buys-800-million-stake-in-alaskan-gold-mine-as-gold-hits-record-hig" target="_blank" rel="noreferrer noopener">Billionaire John Paulson Buys $800 Million Stake In Alaskan Gold Mine As Gold Hits Record Highs</a></li>
</ul>



This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/author/shivdeep-dhaliwal" target="_blank" rel="noreferrer noopener">Shivdeep Dhaliwal</a>

ABNB

ARKF

ARKQ

ARKW

MSFT

NVDA

Cathie Wood Increases Bet On Nvidia And AMD Despite China Chip Hurdles, Ark Dumps Microsoft Stock Worth $9.7 Million

The CNN Money Fear and Greed index showed further easing in overall fear level, while the index remained in the &#8220;Extreme Fear&#8221; zone on Tuesday.



U.S. stocks settled higher on Tuesday, with the Dow Jones index jumping more than 1,000 points during the session.



3M Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MMM#NYSE">MMM</a>) reported better-than-expected first-quarter 2025 results. Verizon Communications Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>) reported upbeat fiscal first-quarter results Tuesday.



Shares of Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) gained over 5% in after-hours trading on Tuesday after the company posted financial results for its first quarter.



On the economic data front, the U.S. Redbook Index rose by 7.4% year-over-year in the week ending April 19.



All sectors on the S&amp;P 500 closed on a positive note, with financial, consumer discretionary, and communication services stocks recording the biggest gains on Tuesday.



The Dow Jones closed higher by around 1,017 points to 39,186.98 on Tuesday. The S&amp;P 500 jumped 2.51% to 5,287.76, while the Nasdaq Composite surged 2.71% to 16,300.42 during Tuesday's session.



Investors are awaiting earnings results from Philip Morris International Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PM#NYSE">PM</a>), GE Vernova Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEV#NYSE">GEV</a>), and AT&amp;T Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/T#NYSE">T</a>) today.



What is CNN Business Fear &amp; Greed Index?



At a current reading of 24.4, the index remained in the &#8220;Extreme Fear&#8221; zone on Tuesday, versus a prior reading of 21.6.



The Fear &amp; Greed Index is a measure of the current market sentiment. It is based&nbsp;on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/25/04/44920101/top-2-tech-and-telecom-stocks-you-may-want-to-dump-this-quarter">Top 2 Tech And Telecom Stocks You May Want To Dump This Quarter</a> </li>
</ul>



Photo courtesy: Shutterstock

Dow Jumps Over 1,000 Points Amid Upbeat Earnings: Greed Index Remains In 'Extreme Fear' Zone

Editor's Note: This article was corrected to reflect that Tesla ended the quarter with $951 million in digital assets.



Electric vehicle giant Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) reported first-quarter financial results after <a href="https://www.benzinga.com/earnings">market close Tuesday.</a>



Here are the key highlights and what's next.



What Happened: Tesla reported first-quarter revenue of $19.34 billion, down 9% year-over-year. The revenue total missed a Street consensus estimate of $21.35 billion according to data<a href="https://www.benzinga.com/pro/register?utm_adType=bzprocontent&amp;utm_campaign=14daytrial&amp;utm_ad=0422"> from Benzinga Pro.</a>



Automotive revenue was $13.97 billion in the first quarter, down 20% year-over-year.



The company said the lower revenue was attributed to a decline in deliveries, the Model Y update at plants and a lower average selling price for vehicles.



Tesla's first-quarter earnings were 27 cents per share, down 40% year-over-year and missing a Street consensus estimate of 31 cents per share.



The company had 10.4 GWh of storage deployed in the first quarter, up 154% year-over-year.



Tesla ended the first quarter with 7,131 Supercharger locations, up 14% year-over-year.



In the first quarter, Tesla delivered 336,681 vehicles, down from 386,810 in the same quarter last year. Analysts were expecting 377,592 deliveries&nbsp;<a href="https://www.benzinga.com/trading-ideas/previews/25/04/44593138/tesla-q1-deliveries-preview-analysts-forecast-377k-but-kalshi-traders-predict-a-miss" target="_blank" rel="noreferrer noopener">for the quarter.</a>



Of the delivery total, Tesla reported 323,800 Model 3 and Model Y vehicles, along with 12,881 other vehicles, which include the Cybertruck.



Tesla produced 362,615 vehicles in the quarter, down from 433,371 vehicles in last year&#8217;s first quarter.



Tesla ended the quarter with $951 million in digital assets, which includes the company&#8217;s Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) holdings. The company previously disclosed $184 million in digital assets in recent quarters. Tesla recognized a mark-to-market gain of $600 million on digital assets previously in <a href="https://www.benzinga.com/news/earnings/25/01/43321103/tesla-q4-earnings-highlights-revenue-miss-eps-miss-ev-updates-automaker-says-2025-will-be-a-seminal">the fourth quarter.</a>



Read Also: <a href="https://www.benzinga.com/25/04/44845458/tesla-top-10-shareholder-questions-investors-want-answers-on-fsd-cybercab-tariffs-brand-damage-and-more">Tesla Shareholders Demand Answers On Self-Driving, Cybercab, Tariffs, Brand Damage And More: Their Top 10 Questions Ranked</a>



What's Next: The company's guidance said it is hard to make predictions on the rate of growth for the year and it will depend on a "variety of factors" including autonomy efforts, factory production ramp and the macroeconomic environment.



"It is difficult to measure the impacts of shifting global trade policy on the automotive and energy supply chains, our cost structure and demand for durable goods and related services," the company said.



Tesla said its 2025 guidance will be revisited in the second quarter update. The company has enough liquidity to fund its current product roadmap and long-term capacity expansion plans.



The company said plans for more affordable models remain on track to start production in the first half of 2025. Tesla also said its Robotaxi product, known as the Cybercab will begin volume production starting in 2026.



"While the current tariff landscape will have a relatively larger impact on our Energy business compared to automotive, we are taking actions to stabilize the business in the medium to long-term and focus on maintaining its health."



The company said there is "uncertainty in the automotive and energy markets," along with "changing political sentiment." These items could impact demand and cost structures for the company.



"We remain committed to expanding our business model to include delivering autonomous robots across multiple form factors and use cases – powered by our real-world AI expertise – to our customers and for use in our factories, as we navigate these headwinds."



TSLA Price Action: Tesla stock is up 0.6% to $239.01 in after-hours trading versus a 52-week trading range of $141.11 to $488.54.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/04/44933432/tesla-in-code-red-situation-as-analyst-flags-6-threats-tied-to-musks-government-role">Tesla In &#8216;Code Red Situation&#8217; As Analyst Flags 6 Threats Tied To Musk&#8217;s Government Role</a></li>
</ul>



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="&#x1f534; WATCH LIVE: Tesla Q1 2025 Earnings Call &#x7C; $TSLA" width="500" height="281" src="https://www.youtube.com/embed/KTjiTT6J-Bk?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div></figure>



Image created using photos from Shutterstock.

Tesla Q1 Misses Estimates As Tariff Pressures Weigh On Outlook, Lower-Cost EVs Still On Track (CORRECTED)

The first big economic pulse check since President Donald Trump's tariff announcement arrives Wednesday, and Wall <a href="https://www.benzinga.com/news/econ-s">Street is watching closely.</a>



S&amp;P Global will release its flash Purchasing Managers&#8217; Index (PMI) surveys for April, covering the United States, the United Kingdom, Germany and France. 



These surveys will provide the first broad snapshot of business sentiment since the April 2 tariff announcement.



While the 90-day pause may have delayed the most severe or recession-like signals, investors will be watching closely for early signs of strain — or unexpected resilience — already emerging in the data.



<h3 class="wp-block-heading">US April Flash PMIs: What Economists Expect</h3>



Consensus forecasts suggest a pullback in both U.S. manufacturing and services. According to TradingEconomics, economists expect:



<ul>
<li>Manufacturing PMI to decline from 50.2 in March to 49.4 in April</li>



<li>U.S. Services PMI to fall from 54.4 to 52.8</li>
</ul>



Any reading below 50 signals contraction. These forecasts suggest that America's factory activity could return to negative territory, while services — still growing — are likely to slow down.



"The flash releases of S&amp;P Global's PMIs will offer the first broad-reaching view of business conditions in April. They are expected to show manufacturing in contraction and growth of service-providing businesses slowing," Comerica's chief economist Bill Adams said.



The bank projects an even weaker outlook than consensus, seeing the manufacturing PMI at 49 and services down to 51.5.



Goldman Sachs economist Jan Hatzius said the firm is focused on the new export orders component of the survey. March data showed sharp declines in countries like Canada and Mexico, which were affected by early tariff announcements.



"Historically, each 1-point drop in new export orders has predicted a 0.75 percentage point hit to year-over-year export growth," Hatzius said, adding that while some export strength may reflect frontloading, a reversal is likely once tariffs are implemented.



<h3 class="wp-block-heading">Market Implications: Another Volatility Trigger?</h3>



Investors are poised to interpret the PMI data as a leading indicator of tariff-related disruptions. 



A weaker-than-expected release would likely confirm fears that global supply chains are already feeling the pressure, potentially weighing further on risk assets.



In contrast, stronger-than-expected readings could ease fears of a global downturn, suggesting that businesses are adapting better than feared, at least for now.



Since Trump's April 2 tariff announcement — which he branded as &#8220;Liberation Day&#8221; — the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) has dropped 7%, reflecting heightened uncertainty and flight from equities. Meanwhile, gold, tracked by the SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>), has risen 8%, signaling investors' rush toward safety amid the unfolding trade tensions.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/04/44933432/tesla-in-code-red-situation-as-analyst-flags-6-threats-tied-to-musks-government-role">Tesla In &#8216;Code Red Situation&#8217; As Analyst Flags 6 Threats Tied To Musk&#8217;s Government Role</a></li>
</ul>



Photo: Shutterstock

Commodities

Will Tariffs Leave A Mark? Business Activity Data Lands Wednesday In First Read Since Trump's Move

Tesla Inc.'s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) plans to ramp up production of its <a href="https://www.benzinga.com/media/25/03/44508019/tesla-and-other-us-robotics-giants-demand-federal-strategy-to-compete-with-chinas-138-billion-push-warn-america-will-lose-the-race-without-it">humanoid robot</a> Optimus are facing significant roadblocks due to supply chain constraints and China's new export restrictions on rare earth materials.



What Happened: On Tuesday, during <a href="https://www.benzinga.com/news/earnings/25/04/44937440/tesla-q1-misses-estimates-as-tariff-pressures-weigh-on-outlook-lower-cost-evs-still-on-track">Tesla's first-quarter earnings</a> call, CEO Elon Musk said that Optimus remains in early-stage development, with mass production still months away.



Musk said the company hopes to produce thousands of the <a href="https://www.benzinga.com/25/01/43325888/tesla-likely-to-sell-optimus-to-rival-companies-in-2026-price-point-of-humanoid-robot-to-be-detemined-by-demand-says-ceo-elon-musk">robots by the end of the year</a>, but cautioned that progress is "totally impossible" to predict.



The billionaire highlighted one key challenge as China's requirement for export licenses on rare earth magnets—critical components in Optimus actuators.



Tesla's robot arms use permanent magnets to stay compact and efficient, but the new restrictions have disrupted the supply, Musk said.



See Also:&nbsp;<a href="https://benzinga.com/markets/equities/25/04/44862552/ford-recalls-nearly-150000-vehicles-over-brake-and-powertrain-issues-nhtsa" target="_blank" rel="noreferrer noopener">Ford Recalls Nearly 150,000 Vehicles Over Brake And Powertrain Issues: NHTSA</a>



&#8220;We're working through that with China. Hopefully, we'll get a license to use the rare earth magnets. China wants some assurances that these are not used for military purposes, which, obviously, they're not,&#8221; the Tesla CEO said.



In addition to the geopolitical hurdles, Musk underscored the extreme complexity of Optimus. "Almost everything in Optimus is new," he said, noting the robot has about 10,000 unique parts and no existing supply chain for most components.



&#8220;When you have a new complex manufactured product, it'll move as fast as the slowest and least lucky component in the entire thing,&#8221; he stated.



Subscribe to the&nbsp;<a href="https://bztechtrends.beehiiv.com/subscribe" target="_blank" rel="noreferrer noopener">Benzinga Tech Trends newsletter</a>&nbsp;to get all the latest tech developments delivered to your inbox.



Why It's Important: Tesla reported first-quarter revenue of $19.34 billion, marking a 9% decline from the same period last year. The figure fell short of Wall Street's expectations, missing the consensus estimate of $21.35 billion.



Previously, it was reported that Tesla is encountering new hurdles in its production plans following the Donald Trump administration's <a href="https://www.benzinga.com/25/04/44831422/donald-trumps-145-tariffs-on-china-could-disrupt-teslas-cybercab-semi-production-report">145% tariffs on Chinese imports</a>.



Tesla has also reportedly <a href="https://www.benzinga.com/25/04/44806701/tesla-suspends-new-orders-for-model-s-and-model-x-in-china-report">stopped accepting new orders</a> for its U.S.-made Model S and Model X in China. Last year, China imported more than 1,553 Model X units and 311 Model S vehicles.



Price Action: Tesla shares increased by 4.60% on Tuesday, reaching $237.97. However, the stock has dropped 37.26% year-to-date, <a href="https://pro.benzinga.com/dashboard">according to Benzinga Pro</a>.



The company currently holds a growth score of 67.63%, based on Benzinga Edge Stock Rankings. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">Click here to see how it compares</a> with other companies in the sector.



Photo Courtesy: Iv-olga On Shutterstock.com



Check out more of Benzinga&#8217;s Consumer Tech coverage by&nbsp;<a href="https://www.benzinga.com/topic/consumer-tech" target="_blank" rel="noreferrer noopener">following this link</a>.



Read Next:



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<li><a href="https://benzinga.com/25/04/44855242/charlie-munger-once-highlighted-how-warren-buffetts-lifelong-learning-made-berkshire-hathaways-success-possible-and-the-crucial-lesson-you-can-take-from-it" target="_blank" rel="noreferrer noopener">Charlie Munger Once Said Warren Buffett Is A ‘Learning Machine' And That's What Lies Beneath Berkshire Hathaway's Success From One Decade To Another</a></li>
</ul>



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Tesla Optimus Robot Hit By China's Rare Earths Crackdown — Elon Musk Says Thousands May Be Ready By Year-End, But No Guarantees

Volatility and <a href="https://www.benzinga.com/topic/tariffs">tariffs</a> are still capturing headlines and sending markets into a tailspin.



For one group of stocks, that&#8217;s been an enormous boon. Last week&#8217;s big bank earnings showed how market volatility led to a surge in stock trading, which massively boosted revenues for some big banks.



Here are four banks set to weather this volatility through strong earnings, healthy dividends and robust fundamentals.



<h2 class="wp-block-heading">JPMorgan Chase and Co.</h2>



The largest bank in the United States, JPMorgan Chase (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), reported earnings on April 11 and posted better-than-expected top and bottom-line results. Revenue came in at $46.01 billion, handily beating the consensus expectation of $44.11. Earnings per share were $5.07, a beat of $0.44 over the consensus estimate of $4.63 per share. Despite CEO Jamie Dimon's <a href="https://www.benzinga.com/news/management/25/04/44717888/jpmorgan-jamie-dimon-warns-recession-now-likely-outcome">warnings</a> about the state of the broader economy, JPMorgan Chase's earnings showcased strength throughout numerous divisions, especially in equities trading. Trading revenue tallied $3.8 billion, up 48% from the previous quarter and exceeding estimates by more than $500 million.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfYHIK2ui6lToVjJ2ZGw9zmAO-SnGCmvgF-4mFR0f9QksGW59JPJK2-6lLihKAQGxDOsP7pgYVVQaDGN7ZIrAUAjUr0ZrwfNGd9sji0HIl2jcbZGu_Or7Uxof8FwkpcGy2_KeicnQ?key=9zg1RvXLtlcToUFhHP-r9JNo" alt=""/></figure>



JPM&#8217;s underlying strength boosts these strong earnings figures. The stock has an 11.27 Price-to-earnings (P/E) ratio, which is cheaper than that of competitors like Wells Fargo and Goldman Sachs despite JPM's higher profit margins. It also pays a 2.44% yield with a 27% dividend payout rate (DPR), and the company has increased its payout annually for 15 consecutive years. One potential area of concern resides at the 200-day moving average, which could become a new resistance level if momentum fades. If the share price can sustainably break through this level, a resumption of the uptrend could follow.



<h2 class="wp-block-heading">Bank of America Corp.&nbsp;</h2>



Another large bank to post an impressive earnings beat was Bank of America (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>) which reported on April 15 and beat estimates on both earnings and revenue. Like his rival Dimon, Bank of America CEO Brian Moynihan echoed concern about what he's <a href="https://www.benzinga.com/news/management/25/04/44829134/bank-of-america-ceo-says-consumers-are-resilient-while-business-owners-worried-as-we-face-a-changing-economy">hearing from business owners</a>, but also pointed to consumer resilience and growth from their business clients as reasons for strong quarterly earnings. The beat was narrower than JPM, with revenue of $27.51 billion compared to the expected $26.99 billion and earnings of 90 cents per share versus the expected 82 cents. However, the stock rose 4% following the earnings release as revenue was boosted by both equities trading and net interest income (NII). Both the $2.2 billion in trading revenue and the $3.5 billion in fixed income revenue exceeded estimates, offsetting the declines in investment banking fees.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXenISL3NobmQfOlsorQbqcKt4FrCalETBJDrsSooGc7sgzn_R0Yoy6kk1CABCAxXQUrvHXH64IeV7LZXOuey7xZnWnWkhjVvEvJwlr8qz1kXiOkYleu7-bvys0ACwBvHligcY75_w?key=9zg1RvXLtlcToUFhHP-r9JNo" alt=""/></figure>



BAC shares were finally closing in on their 2022 high before tariff uncertainty began spooking markets, and the stock recently made the dreaded ‘death cross' on the daily chart as the 50-day moving average crossed below the 200-day moving average. But there are fundamental reasons to believe the technical signal is a false alarm. Bank of America trades at just 10.2 times forward earnings, making its stock cheaper than most of its large bank competitors, such as JPMorgan Chase, Wells Fargo, and Goldman Sachs. The stock also pays a 2.79% dividend yield with a 31% DPR, and an 11-year history of annual dividend increases. Analysts are also bullish, with a consensus Buy rating and an average price target of $45.52, based on 25 reports compiled by Benzinga.



<h2 class="wp-block-heading">Synovus Financial Corp.&nbsp;</h2>



Mega banks weren't the only companies producing strong earnings. Synovus Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNV#NYSE">SNV</a>) is a smaller regional bank with services primarily located in the southern United States, in states such as Alabama, Georgia and Florida. The bank has a market capitalization of just under $6 billion and generated $2.01 billion in annual sales last year. In its April 17 earnings release for Q1 2025, Synovus Financial posted top and bottom-line beats, including an impressive $1.30 EPS report versus the expected $1.10, a 16% upside surprise. The bank's $571 million in quarterly revenue also beat expectations, boosted by an expansion of net interest margin (NIM) and interest income of $454 million.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXeFgoYPNw-Uitdz6wLMeUhXXy3tyvBOhSi84cYZSeOoIxC8BluaGyu7UUVigE287sNjOQglXp84d71vULPFkbaq2yWC9hrevr_-euGYYKM3rAvZlsoA9y8POYpaHOevnqdmnYhShQ?key=9zg1RvXLtlcToUFhHP-r9JNo" alt=""/></figure>



SNV's stock has been on quite the rollercoaster over the last decade. Shares hit an all-time high near $60 in June 2018 before collapsing to under $15 per share during the COVID-19 pandemic. The stock finally rebounded near its all-time high in Q4 2024, before this recent dip. The company's earnings and fundamentals suggest a stock with potential. The stock trades at just 8.7 times forward earnings, which is cheaper than its regional bank peers, such as Citizens Financial Group and Cadence Bank. The company has also grown its revenue by nearly 19% year over year (YoY) and pays a dividend yield of 3.85%. Like BAC, investors must be wary of the ‘Death Cross' formed by the 50-day and 200-day moving averages, but the uplifting earnings report could make this another false signal.



<h2 class="wp-block-heading">Citigroup Inc.&nbsp;</h2>



Citigroup (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>) is often the whipping boy in the financial services sector, but its recent earnings report revealed nothing worth deriding. The bank reported $21.6 billion in quarterly revenue and $1.96 EPS, both numbers easily surpassing analysts&#8217; estimates. One of the more impressive numbers on the report was the $1.5 billion in equity trading revenue, a 23% increase from the previous quarter. The stock jumped 3% following the April 15 report, which also included full-year guidance estimates of $83.1 to $84.1 billion.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXex45eas7L5SPW_guCNF_5j66f3b4K6Oh9teQkVTqIt95wSa566hommyfbsSDbNbBq1Q_fr5djCLr5lRdpPrHYZ9oxwldRf65bWwqk_15Eh9uu_NgoI79R9nNJapaBFakbqM21eQg?key=9zg1RvXLtlcToUFhHP-r9JNo" alt=""/></figure>



Citigroup is still cheap to own compared to its large-cap peers, despite its earnings success and high 3.54% dividend yield. The stock has a P/E ratio of just 9.81, a Price-to-Book (P/B) value of 0.61, and trades at 8.6 times forward earnings, making it more affordable than JPMorgan Chase, Bank of America and Wells Fargo. The stock recently triggered an oversold signal on the Relative Strength Index (RSI) too, indicating that the underlying uptrend could be close to resuming its march.



<h2 class="wp-block-heading">Rates, Reversals &amp; Volatility: How to Trade This Unpredictable Market</h2>



Conflicting signals. Sector rotation. Rate shocks. Traders are struggling to make sense of it all—but Matt Maley is thriving. Join him Wednesday, April 23 at 6 PM ET to learn the real-time strategies and setups he's using to trade volatility and target major upside—even while markets stay messy. Register <a href="https://events2.benzinga.com/matt-maley-webinar-wed-apr23-2025-registration">HERE</a> before spots fill.



Editorial content from our Expert contributors is intended to be information for the general public and not individualized investment advice. Editors/contributors are presenting their individual opinions and strategies which are neither expressly or impliedly approved or endorsed by Benzinga.



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