Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) investors are hoping to get more answers on where things stand with FSD, new electric vehicle models and the impact of tariffs when the company reports its first-quarter financial results on Tuesday<a href="https://www.benzinga.com/earnings"> after the market close.</a>



Here are the earnings estimates, what analysts and experts are saying and the key items to watch.



Earnings Estimates: Analysts expect Tesla to report first-quarter revenue of $21.35 billion, up from $21.30 billion in last year's first quarter, according to data <a href="https://www.benzinga.com/pro/register?utm_adType=bzprocontent&amp;utm_campaign=14daytrial&amp;utm_ad=0421">from Benzinga Pro.</a>



Analysts expect the company to report first-quarter earnings per share of 41 cents, down from 45 cents in last year's first quarter. The company beat earnings per share estimates in the fourth quarter.



Tesla has missed analyst estimates for earnings per share in five of the last six quarters and six of the last 10 quarters overall.



Read Also: <a href="https://www.benzinga.com/25/04/44630769/heres-how-many-vehicles-tesla-has-delivered-produced-in-each-quarter-since-2019">Here&#8217;s How Many Vehicles Tesla Has Delivered, Produced In Each Quarter Since 2019</a>



What Experts Are Saying: Tesla sales are falling, especially in Europe and CEO Elon Musk's focus could be elsewhere, said Jay Woods, Freedom Capital Markets chief global strategist. 



"Tesla remains one of the most volatile and discussed stocks in the world. Elon Musk's political bent has made this stock a lightning rod of discussion," Woods said in a weekly <a href="https://jaywoods.substack.com/">newsletter</a>.



Woods wrote that Tesla stock made a full reversal since its "post-election rally" and is poised to move again. "This is not an ideal looking chart for the bulls as key levels of support have been breached, the near-term trend is lower and the long-term trend is a volatile mess."



Woods said the key could be how Tesla's numbers look and if any guidance is given.



"It is not an ideal risk/reward set-up going into the numbers," he adds, while cautioning that the stock could fall to August 2024 lows around $180 if there is weakness.



Analysts have been lowering price targets on Tesla ahead of its first-quarter financial results, following the release of first-quarter deliveries that missed an analyst estimate of more than 377,000 units.



Wedbush analyst Daniel Ives, who is among the biggest bulls on Tesla, has been arguing that Musk <a href="https://www.benzinga.com/25/04/44891383/elon-musk-needs-to-leave-the-government-and-get-back-to-being-ceo-of-tesla-says-dan-ives-ahead-of-q1-earnings">should be focusing </a>more time on Tesla.



RBC Capital analyst Tom Narayan maintained an Outperform rating on Tesla while lowering the price target from $440 to $320 in March. The analyst argued that <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/03/44380301/tesla-analyst-says-demand-fears-overblown-but-has-some-concerns-as-used-car-prices-plummet">demand fears could be overblown </a>at the time, but also lowered pricing assumptions for FSD and the penetration rates of Robotaxis.



Cantor Fitzgerald&#8217;s Andres Sheppard was one of the lone Tesla analysts to upgrade the stock in recent months, moving it from Neutral to Overweight with a $425 price target last month.



The upgrade came after visiting Tesla's Austin Gigafactory and the company's AI data centers. Sheppard said Tesla's stock had an attractive entry point at the time ahead of catalysts like the Robotaxi introduction, the rollout of Full Self-Driving, a lower-priced vehicle and Optimus Bot production.



While Sheppard upgraded Tesla stock, he called for a "mild" first quarter for the company, seeing demand weakness and negative sentiment surrounding Musk's political stance.



Here are other recent<a href="https://www.benzinga.com/quote/TSLA/analyst-ratings"> Tesla analyst ratings</a> and price targets.



<ul>
<li>Piper Sandler: Maintained Overweight rating, lowered price target from $450 to $400</li>



<li>UBS: Maintained Sell rating, lowered price target from $225 to $190</li>



<li>Mizuho: Maintained Outperform rating, lowered price target from $430 to $375</li>



<li>Benchmark: Maintained Buy rating, lowered price target from $475 to $350</li>



<li>Wedbush: Maintained Outperform rating, lowered price target from $550 to $315</li>



<li>Goldman Sachs; Maintained Neutral rating, lowered price target from $320 to $275</li>
</ul>



Key Items to Watch: After missing analyst estimates for <a href="https://www.benzinga.com/trading-ideas/movers/25/04/44607859/teslas-deliveries-slide-in-q1-amid-production-setbacks-political-backlash">first-quarter deliveries</a>, any guidance from the company for full-year deliveries will be closely watched by analysts and investors. The company previously said it expected to return to growth for its vehicle business in 2025, but that could now be out of reach.



"The rate of growth will depend on a variety of factors, including the rate of acceleration of our autonomy efforts, production ramp at our factories and the broader macroeconomic environment," the company previously said.



Updates on new vehicles, including more affordable models, will also be closely watched, as the company previously said it remained on track for production in the first half of 2025.



Tariffs and macroeconomic conditions remain concerns for the company, as evidenced by some of the<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"> top requested shareholder questions</a> for the first quarter. 



The top vote-getters for questions center on several topics, including FSD, Robotaxis, tariffs, and new models. There are numerous questions on tariffs and macroeconomic concerns. While Tesla may be better positioned to handle tariffs on countries like Canada and Mexico, investors are still worried about their impact.



While Tesla assembles and sells its EVs in the U.S., the company imports parts for several vehicles. This week, the company announced it was <a href="https://www.benzinga.com/news/global/25/04/44838043/tesla-stock-is-trading-lower-wednesday-whats-going-on" target="_blank" rel="noreferrer noopener">suspending plans</a> to ship parts from China for the Cybercab and Tesla Semi.



A top question on &#8220;brand damage&#8221; could also be significant. Multiple studies and reports have shown that sales have declined and the company&#8217;s brand has suffered since Musk&#8217;s political involvement in politics grew.



TSLA Price Action: Tesla stock was down 6% to $227.42 on Monday versus a 52-week trading range of $138.80 to $488.54. Tesla stock is down 40% year-to-date in 2025, while shares remain up 60.1% over the last year.



Read Next: 



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</ul>



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Tesla Q1 Earnings Preview: Shareholders, Analysts Want Answers On Guidance, Tariffs, FSD And More

The International Monetary Fund has sharply downgraded its 2025 growth forecast for the United States, citing President Donald Trump's sweeping tariffs and a surge in economic <a href="https://www.benzinga.com/topic/donald-trump">uncertainty as major headwinds. </a>



In its April 2025 World Economic Outlook, the IMF now projects U.S. GDP growth at just 1.8% for the year, marking a 0.9 percentage point cut from its January forecast. 



Roughly 0.4 percentage points of the downgrade is directly linked to Trump's trade actions, while the rest reflects weakening domestic momentum that began even before the tariff shock.



"The tariffs represent a supply shock for the United States," said Pierre-Olivier Gourinchas, IMF chief economist. "They reduce productivity and output permanently, and raise price pressures temporarily."



While the IMF still expects positive growth this year, it acknowledges that the risk of recession has risen substantially. Gourinchas said the IMF&#8217;s recession probability for the U.S. in 2025 has climbed to 40%, up from 25% in October.



<h3 class="wp-block-heading">A Trade Shock With Long-Term Consequences</h3>



The growth hit comes as the U.S. effective tariff rate has surged past levels last seen over a century ago. 



On April 2, Trump announced sweeping "reciprocal" tariffs on nearly all U.S. trading partners, triggering retaliatory measures from several countries. The IMF warns that these trade disruptions are not only curbing growth in the short term but also lowering the long-run potential of the U.S. economy.



"For trading partners tariffs act mostly as a negative external demand shock weakening activity and prices" the IMF noted.



&#8220;All countries are negatively affected by the surge in trade policy uncertainty as businesses, cut purchases and investment, while financial institutions reassess their borrowers exposure,&#8221; Gourinchas said.



<h3 class="wp-block-heading">Growth Slows, Inflation Pressures Mount</h3>



While growth slows, inflation is expected to remain sticky. The tariffs are seen increasing import costs, adding short-term upward pressure on prices even as consumer demand cools. The IMF raised its U.S. inflation forecast modestly, reflecting these dynamics.



The report warns that this combination of slower growth and persistent inflation puts the Federal Reserve in a difficult position, especially as it faces political pressure from the Trump administration to slash interest rates.



"Monetary policy will need to remain agile," the IMF chief said. "But central bank independence remains a cornerstone of long-term credibility."



<h3 class="wp-block-heading">Dollar Disconnect</h3>



The IMF also flagged a notable divergence from historical norms: instead of strengthening amid tariffs, the U.S. dollar has weakened. That reflects, in their view, a diminished global demand for dollar-denominated assets as policy credibility erodes.



"The tariffs could have appreciated the dollar," Gourinchas said. "Yet, greater policy uncertainty lower U.S. growth prospects and an adjustment in the global demand for dollar assets are weighing down on the dollar.&#8221;



The U.S. dollar index – as tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>) – has weakened by about 10% since Trump&#8217;s inauguration in January. 



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IMF Slashes US Growth Outlook As Trump Tariffs Bite, Raises Recession Odds To 40%

Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) on Tuesday surged past the $90,000 mark for a 2.5% daily gain, as experts point to its growing perception as a safe-haven asset akin to &#8220;digital gold&#8221; amid a <a href="https://www.benzinga.com/25/04/44580634/bitcoin-is-digital-risk-not-digital-gold-asserts-peter-schiff">weakening U.S. dollar and market volatility</a>.



What Happened: The rally, which saw Bitcoin hit a high of $90,480, coincides with gold reaching new highs and U.S. equities sliding to tariff-era lows, prompting analysts to reevaluate the cryptocurrency's role in portfolio diversification.



Speaking with Benzinga, Tracy Jin, COO of MEXC, emphasized Bitcoin's resilience, noting that its tandem rally with gold signals a shift in investor perception. 



"Bitcoin's ability to post gains is reshaping investor perception," Jin said, highlighting its potential decoupling from risk-on assets. 



She suggested that persistent strength could drive institutional inflows in Q2, potentially pushing Bitcoin to all-time highs between $150,000 and $200,000, provided it holds support above $86,000-$87,000.



Katie Stockton, Founder of Fairlead Strategies, offered a more cautious outlook, maintaining a short-term neutral stance on Bitcoin despite its relief rally. 



"Bitcoin is extending its relief rally, clearing its 50-day MA," Stockton told Benzinga, but pointed to resistance between $88,200 and $88,800. 



She warned that the monthly stochastics' overbought downturn suggests the rally may be counter-trend, with support at $73,800 if momentum falters.



Alex Kuptsikevich, chief market analyst at FxPro, in a note sent to Benzinga, underscored Bitcoin's technical strength, noting its test of the 200-day moving average. 



"A breakout above this level could lead to acceleration," he said, adding that the crypto market's $2.76 trillion capitalization reflects recovering sentiment, with the sentiment index rising to 47, a high not seen since late March.



Also Read: <a href="https://www.benzinga.com/markets/cryptocurrency/25/04/44922586/bitcoins-dual-role-could-propel-it-to-200000-standard-chartered">Bitcoin&#8217;s Dual Role Could Propel It To $200,000: Standard Chartered</a>



Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>), meanwhile, traded up 1.5% at $1,650, hovering near key support at $1,550, according to Stockton, who remains intermediate- and long-term bearish on the asset. 



Other major altcoins, including XRP (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/xrp/usd">XRP</a>), BNB (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/bnb/usd">BNB</a>), Solana (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/sol/usd">SOL</a>), and Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>), saw modest 1% gains over the past 24 hours. 



Liquidation <a href="https://www.coinglass.com/LiquidationData">data</a> showed $322.2 million in positions wiped out, with $184.55 million in shorts and $137.65 million in longs, reflecting heightened market volatility.



Jin also flagged unconfirmed rumors of Federal Reserve Chairman Jerome Powell's possible resignation as a potential driver of Bitcoin and gold's strength, alongside dollar weakness. 



She urged investors to monitor upcoming economic data and speeches from FOMC members and ECB President Christine Lagarde, which could sway broader market sentiment.



What&#8217;s Next: As Bitcoin consolidates above $90,000, analysts remain divided on its near-term trajectory but agree that its evolving narrative as a hedge against inflation and uncertainty could redefine its place in global finance.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/04/44919277/xrp-solana-dogecoin-among-72-crypto-related-etfs-awaiting-sec-approval">XRP, Solana, Dogecoin Among 72 Crypto-Related ETFs Awaiting SEC Approval</a></li>
</ul>



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Bitcoin Reclaims $90,000: Is 'Digital Gold' Heading To $100,000 Next?

As gold rips through record highs above $3,500 an ounce, another classic safe haven is quietly staging one of its strongest comebacks in over <a href="https://www.benzinga.com/topic/japan">a decade: the Japanese yen.</a>



With global investors gripped by tariff fears, central bank politicization, and a deteriorating U.S. economic backdrop, Japan's currency has emerged as a stealth winner, rallying 12% year-to-date through April 22—its strongest surge since 2010. 



On Tuesday, the USD/JPY pair fell to 140.45, marking its lowest level since September 2024.



A risk-off trade that long seemed forgotten—long yen, short U.S. equities—has returned to form with force. 



A strategy betting on the Invesco CurrencyShares Japanese Yen Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXY#NYSE">FXY</a>) while shorting the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) would have delivered a 24% gain since the start of the year.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="582" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/04/22083522/image-126-1024x582.png" alt="" class="wp-image-881800" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/04/22083522/image-126-1024x582.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/04/22083522/image-126-300x170.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/04/22083522/image-126-768x436.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/04/22083522/image-126-1536x873.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/04/22083522/image-126.png 1901w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<h2 class="wp-block-heading">Political Uncertainty Fuels The Flight To Yen</h2>



The deepening standoff between President Donald Trump and Federal Reserve Chair Jerome Powell has rattled global confidence in the U.S. financial assets while boosting flows towards traditional safe havens.



What began as Trump's critique of Powell's monetary policy has escalated into a full-blown power struggle, with Trump openly suggesting he may remove Powell before his term ends in 2026.



On Monday, Trump&#8217;s latest Truth Social salvo accused Powell of being "Mr. Too Late" and claimed the Fed Chair had acted politically during the last election cycle.



In this environment, non-dollar safe havens like gold and the yen are soaking up demand. While gold draws headlines with its 30% year-to-date rally, the yen's strength speaks volumes about how global capital is repositioning as U.S. institutions come under pressure.



"The yen is the biggest winner in this latest round of USD selling," said Francesco Pesole, FX strategist at ING. "It responds to both the equity slump and the risks to the Fed's independence."



<h2 class="wp-block-heading">Analysts See More Upside For The Yen</h2>



Pesole doesn't see the yen's rally reversing anytime soon. 



"USD/JPY has dropped below the 140 mark and, given the broad attractiveness of the yen as a safe-haven substitute, we don't see the conditions for an immediate reversal," he said, adding that a move toward 135.0 could materialize if currency discussions surface during U.S.-Japan trade talks this week.



Japanese Finance Minister Katsunobu Kato is set to meet U.S. Treasury Secretary Scott Bessent, with currency issues reportedly high on the agenda. 



If the Trump administration seeks a trade concession in the form of a weaker dollar vs. the yen, markets could quickly price in further gains for Japan's currency.



Alejandro Cuadrado, strategist at BBVA, indicated that "USD/JPY has the 135.58 2024 low in sight," citing the yen's strength from haven flows, solid fundamentals and a Bank of Japan stance that appears steady even amid global volatility.



Indeed, reports on Monday suggested BoJ officials have no plans to abandon their tightening bias, even as inflation forecasts are expected to be trimmed in light of the stronger yen. 



"The yen exuberance remains unchallenged in G10 FX," Cuadrado added. "We believe the pair has room to consolidate at lower levels in the coming months."



<h3 class="wp-block-heading">Yen Outperforms In VIX Spikes, Even When Yields Rise</h3>



Goldman Sachs FX strategist Kamakshya Trivedi highlighted that the yen tends to outperform the dollar during periods of simultaneous bond and equity selloff. That&#8217;s particularly the case when the CBOE Volatility Index is elevated.



"The past few days have been more unique—with growing odds of a U.S. downturn coinciding with higher yields and lower equities," Trivedi said. 



"When we calculate average USD/JPY returns since 2000 on days when both bonds and equities sell off, the yen tends to outperform—especially when the VIX spikes."



Goldman maintains a 12-month target of 135 for USD/JPY, yet Trivedi noted that deterioration in the U.S. labor market or further market stress could significantly accelerate that timeline.



Now Read: 



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<li><a href="http://benzinga.com/economics/macro-economic-events/25/04/44910907/top-fed-voices-defend-powell-slam-trumps-attack-on-central-bank-independence">Top Fed Voices Defend Powell, Slam Trump&#8217;s Attack On Central Bank Independence</a></li>
</ul>



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Japanese Yen Surges To 7-Month Highs, Expects Best Year Since 2010 As Safe-Haven Stampede Intensifies

Lockheed Martin Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>) shares are trading higher premarket after the company <a target="_blank" href="https://www.benzinga.com/pressreleases/25/04/n44918859/lockheed-martin-reports-first-quarter-2025-financial-results" rel="noreferrer noopener">reported&nbsp;first-quarter&nbsp;2025 results</a>.



The company reported a &nbsp;4%&nbsp;year-over-year increase in net sales to&nbsp;$18.0 billion, beating the consensus of&nbsp;$17.8 billion. It clocked a GAAP EPS of&nbsp;$7.28,&nbsp;<a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">beating the consensus of&nbsp;$6.32</a>.



Gross profit rose to $2.32 billion from $1.99 million a year ago quarter. Operating profit increased 17% Y/Y to $2.37 billion, with a margin of 13.2% (vs. 11.8% in earlier year quarter).



Also Read: <a target="_blank" href="https://www.benzinga.com/25/04/44655959/elon-musks-spacex-jeff-bezos-blue-origin-and-boeing-lockheeds-ula-bag-13-5-billion-pentagon-launch-contracts" rel="noreferrer noopener">Elon Musk's SpaceX, Jeff Bezos' Blue Origin, And Boeing-Lockheed's ULA Bag $13.5 Billion Pentagon Launch Contracts</a>



Aeronautics sales were&nbsp;$7.06 billion&nbsp;(+3%&nbsp;Y/Y), and the operating margin was&nbsp;10.2%, up from&nbsp;9.9%&nbsp;a year ago quarter.



Missiles and Fire Control sales of&nbsp;$3.37 billion&nbsp;(+13%&nbsp;Y/Y); operating margin was 13.8%, up from&nbsp;10.4%&nbsp;in the prior quarter.



Rotary and Mission Systems sales of&nbsp;$4.33 billion&nbsp;(+6%&nbsp;Y/Y); operating margin&nbsp;12.0%, up from 10.5% in the year-ago quarter.



Space net sales of&nbsp;$3.21 billion&nbsp;(-2%&nbsp;Y/Y); operating margin&nbsp;of 11.8%, up from 9.9% in 2024.



Lockheed Martin generated an operating cash flow of&nbsp;$1.4 billion and a free cash flow of&nbsp;$955 million&nbsp;for the first quarter of FY25.



At the end of the quarter, LMT's total backlog was&nbsp;$172.97 billion.



In the first quarter, LMT returned&nbsp;$1.5 billion&nbsp;of cash to shareholders through dividends and share repurchases.



In the quarter, the company paid cash dividends of $796&nbsp;million and repurchased 1.7&nbsp;million shares worth $750&nbsp;million.



2025&nbsp;Outlook Maintained: Lockheed Martin expects net sales of&nbsp;$73.75 billion-$74.75 billion&nbsp;versus the consensus of&nbsp;$74.28 billion. LMT reiterated EPS guidance of ~$27.00-$27.30&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">versus the consensus of&nbsp;$27.21.</a>



The company continues to project Business segment operating profit of&nbsp;$8.10 billion—$8.20 billion, cash from operations of&nbsp;$8.50 billion—$8.70 billion, and free cash flow of&nbsp;$6.6 billion—$6.8 billion.



Lockheed Martin says &#8216;2025&nbsp;outlook&nbsp;does not include the evolving impacts of tariffs or related recoveries, the recent Next Generation Air Dominance announcement, or Executive Orders issued by the Administration.'



Chairman, President and CEO&nbsp;Jim Taiclet added, &nbsp;"We remain committed to realizing our vision of digital and interoperable systems and are aligning our mission roadmaps to best support our customers' rapidly evolving security needs, both domestic and global."



"This focus, along with Lockheed Martin's track record of innovation and performance, continues to result in new awards, including the recent missiles contracts for Precision Strike Missiles, THAAD and JASSM/LRASM, as well as the Trident II D5 Life Extension, comprising up to&nbsp;$10 billion&nbsp;of future work."



Last week, the company announced that it had named&nbsp;Evan Scott its&nbsp;CFO, effective immediately, succeeding&nbsp;Jesus "Jay" Malave, who advised the company that <a target="_blank" href="https://www.benzinga.com/25/04/44867490/evan-scott-takes-over-as-lockheed-martin-cfo-succeeding-jesus-jay-malave" rel="noreferrer noopener">he was pursuing other opportunities</a>.



Price Action: At the last check on Tuesday, LMT shares were trading higher by 2.76% to $471 premarket.



Read Next:



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<li><a href="https://www.benzinga.com/news/earnings/25/04/44921124/ge-aerospace-expands-q1-operating-margins-ceo-talks-cost-control-to-mitigate-tariff-impact" target="_blank" rel="noreferrer noopener">GE Aerospace Expands Q1 Operating Margins, CEO Talks Cost Control To Mitigate Tariff Impact</a></li>
</ul>



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Lockheed Martin Does Not Alter Annual Outlook To Price Tariff Impact Yet Amid Recent CFO Change

Verizon Communications Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>)&nbsp;stock reported&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/25/04/g44918133/verizon-delivered-strong-financial-growth-with-industry-leading-wireless-service-revenue-in-1q-202" rel="noreferrer noopener">fiscal&nbsp;first-quarter</a> results&nbsp;Tuesday.&nbsp;The stock price tumbled after the report.



Its revenue growth was 1.5% year-over-year, reaching $33.49 billion, topping the&nbsp;analyst consensus estimate of $33.24 billion. Adjusted EPS of $1.19 topped the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">analyst&nbsp;consensus estimate of $1.15</a>.



Total wireless service revenue was $20.8 billion, up 2.7% year over year.



Also Read: <a target="_blank" href="https://www.benzinga.com/news/25/02/43883822/t-mobile-wins-nyc-public-safety-deal-introduces-new-plans-for-first-responders-and-military-families" rel="noreferrer noopener">T-Mobile Wins NYC Public Safety Deal, Introduces New Plans For First Responders And Military Families</a>



Postpaid phone net losses were 289,000 versus 114,000 net losses Y/Y driven by price hikes, intense rival promotional offers, and lesser government support. Verizon attributed some of the loss to lower spending by some federal agencies as the Trump administration moves to slash thousands of jobs, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2025-04-22/verizon-loses-more-subscribers-than-expected-in-tight-market?sref=TBDibEcD" rel="noreferrer noopener">reports</a>.



Verizon Business&#8217; retail postpaid net additions were 94,000. The quarter saw 339,000 total broadband net additions, <a target="_blank" href="https://www.benzinga.com/news/earnings/24/04/38356319/verizons-q1-flat-revenue-bump-in-free-cash-flow-and-stable-2024-outlook" rel="noreferrer noopener">compared to 389,000</a> Y/Y.&nbsp;



The company ended the quarter with over 12.6 million broadband subscribers, up 13.7% year over year. Broadband growth marks Verizon&#8217;s attempts to offer fiber connections and home wireless service powered by its 5G networks, which are bundled with its mobile plans and content packages.



At the end of the quarter, the company had over 4.8 million fixed wireless subscribers. Total fixed wireless access net additions reached 308,000 in the quarter.



Verizon said it is well-positioned to achieve the next milestone of 8 to 9 million fixed wireless access subscribers by 2028.



Total Verizon Business revenues were $7.3 billion, down 1.2% Y/Y. Total Verizon Consumer revenue rose by 2.2% Y/Y to $25.6 billion.&nbsp;Consumer wireless retail postpaid churn was 1.13%, and wireless retail postpaid phone churn was 0.90%.&nbsp;



Verizon Consumer clocked wireless retail postpaid phone net losses of 356,000, versus 194,000 net losses Y/Y. Verizon Consumer had fixed wireless net additions of 199,000.



Verizon&#8217;s net income stood at $5.0 billion versus $4.7 billion a year ago.



The consumer segment EBITDA margin improved by 20 bps to 42.8%, while the business segment EBITDA margin grew by 240 bps to 23.1%. Company-level adjusted EBITDA of $12.6 billion, up from $12.1 billion Y/Y. 



Verizon&#8217;s quarterly free cash flow was $3.6 billion, up from $2.7 billion Y/Y.



In March, Verizon Chief Revenue Officer&nbsp;Frank Boulben&nbsp;warned against weaker subscriber numbers due to competition, as per Bloomberg. After the Christmas holiday, Verizon ended its seasonal promotions, unlike its rivals, he said. Customers are also keeping their phones longer.



Verizon recently&nbsp;promised&nbsp;a <a target="_blank" href="https://www.benzinga.com/media/25/04/44644607/verizons-new-3-year-price-lock-free-phone-offer-strategic-move-to-boost-customer-retention" rel="noreferrer noopener">three-year price</a> guarantee and a free phone trade-in for mobile phones and home internet plans to gain market share.



Verizon and its rivals remain shielded from President Donald Trump&#8217;s tariff policies because of their U.S. focus, according to&nbsp;Bloomberg analysts. However, they added that telecom companies could be vulnerable to longer-term effects, such as downgrades from premium phone plans.



FY25 Outlook: Verizon&nbsp;reiterated a 2.0%–2.8%&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/25/01/43189382/verizon-q4-earnings-revenue-beat-1-million-mobile-and-broadband-subscriber-adds-business-segment-margin-expands" rel="noreferrer noopener">growth in wireless service</a> revenue. It reaffirmed an adjusted EPS of $4.59 – $4.73 versus&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">consensus of $4.67</a>.



Verizon reiterated $17.5 billion to $18.5 billion in 2025 free cash flow, $35 billion to $37 billion in operating cash flow, and $17.5 billion to $18.5 billion in capital expenditure. Verizon&#8217;s guidance does not include any tariff impact.



Price action:&nbsp;VZ stock is down 5.73% at $40.48 premarket at the last check on Tuesday.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/04/44909414/google-parent-alphabets-topline-can-withstand-pressure-in-uncertain-macro-scenario-compared-to-peers-analyst" target="_blank" rel="noreferrer noopener">Google Parent Alphabet&#8217;s Topline Can Withstand Pressure In Uncertain Macro Scenario Compared To Peers: Analyst</a></li>
</ul>



Photo: Karolis Kavolelis/Shutterstock

Tech

Media

Verizon Loses 289 Thousand Postpaid Subscribers In Q1 Due To Price Hikes And Competition

President Donald Trump held a meeting with the CEOs of Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>), Home Depot Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>), and Target Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGT#NYSE">TGT</a>) on Monday.



What Happened: The meeting was centered around the possible effects of Trump&#8217;s wide-ranging tariff plans on the import-centric business models of these retail behemoths. Walmart&#8217;s CEO Doug McMillon, Target CEO Brian Cornell, and Home Depot&#8217;s Ted Decker attended the meeting, <a href="https://www.cnbc.com/2025/04/21/trump-tariffs-walmart-home-depot-lowes-target.html">CNBC </a>reported.



Despite initial reports of a representative from&nbsp;Lowe&#8217;s Companies Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LOW#NYSE">LOW</a>) attending, it was later confirmed that Lowe&#8217;s was not represented at the meeting.



Post-meeting, the three companies issued similar statements, expressing gratitude for the opportunity to share their insights with the President and his team. They pledged their commitment&nbsp;to delivering value for American&nbsp;consumers and expressed eagerness to continue the dialogue. 



President Trump later expressed satisfaction with the meeting, stating it was an honor to host the retail leaders in the Oval Office.



David French, the executive vice president for government relations at the National Retail Federation, previously told the New York Times, "The deal window may be open.&#8221;



SEE ALSO:&nbsp;<a href="https://benzinga.com/markets/25/04/44916042/general-motors-has-no-plans-to-move-ev-production-away-from-mexico-despite-tariff-uncertainty" target="_blank" rel="noreferrer noopener">General Motors Has No Plans To Move EV Production Away From Mexico Despite Tariff Uncertainty</a>



Why It Matters: Walmart sources about one-third of its products globally, with China and Mexico being the most significant suppliers. Meanwhile, Target, known for affordable fashion and home goods, primarily relies on overseas manufacturing for these items. For these retailers, tariffs present a new hurdle in an already challenging economic environment, where consumers are seeking low prices amidst high inflation.



Leading industry lobbying groups from agriculture, construction, manufacturing, retail, and tech are urging the White House to ease more tariffs, arguing that certain products are too costly or impractical to produce domestically and must be imported. Apple (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) CEO Tim Cook reportedly <a href="https://www.benzinga.com/25/04/44882019/apple-ceo-tim-cooks-dialogue-with-commerce-secretary-lutnick-secured-tariff-exemption-for-iphones-and-electronics-report">negotiated </a>with the White House and obtained relief for both his company and the wider electronics industry. Trump also later stated that he &#8216;helped&#8217; the CEO and his business. 



Nevertheless, earlier this month,&nbsp;<a href="https://www.benzinga.com/news/guidance/25/04/44711688/walmart-maintains-steady-growth-forecast-despite-tariffs">Walmart</a>&nbsp;reaffirmed its first-quarter guidance, indicating steady sales growth despite the looming tariffs. The retail giant continues to project a sales growth of 3% – 4% in constant currencies for the first quarter of FY26.



Meanwhile, a recent&nbsp;<a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/04/44797563/goldman-sachs-sees-upside-in-retail-giants-dollar-tree-home-depot-best-buy-and-target-despite-tariff-margin-pressures">Goldman Sachs analysis</a>&nbsp;highlighted the potential impact of China tariffs on profitability for Home Depot and Target. The report suggests that despite tariff and margin pressures, there might be an upside for these retail giants.



Benzinga's Edge Rankings&nbsp;highlight strong momentum and growth rankings for Walmart in the 94th and 55th percentiles, respectively. Curious how other stocks stack up?&nbsp;<a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound" target="_blank" rel="noreferrer noopener">Click here</a>&nbsp;to uncover growth and momentum scores for top stocks.



<ul>
<li>READ MORE:&nbsp;<a href="https://benzinga.com/markets/cryptocurrency/25/04/44917155/xrp-leads-ethereum-bleeds-as-crypto-investment-products-see-6-million-in-inflows" target="_blank" rel="noreferrer noopener">XRP Leads, Ethereum Bleeds As Crypto Investment Products See $6 Million In Inflows &#8211; Benzinga</a></li>
</ul>



Image via Shutterstock



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

Markets

AAPL

Trump Meets With Walmart, Home Depot And Target CEOs To Discuss Tariff Impacting Consumer Prices

U.S. stock futures rebounded on Tuesday following Monday&#8217;s selloff. Futures of major benchmark indices were higher in premarket.



President Donald Trump <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">attacked</a> Federal Reserve Chairman Jerome Powell on Monday via a Truth Social post. He called him &#8220;Mr. Too Late,&#8221; and urged the Fed Chair to cut rates preemptively.



This <a href="https://www.benzinga.com/25/04/44914873/walgreens-to-pay-up-to-350m-for-illegal-opioid-prescriptions-doj-says">triggered a market selloff</a>, raising concerns about the central bank&#8217;s independence and Trump&#8217;s interference with the monetary policy.



The 10-year Treasury bond yielded 4.40%, and the two-year bond was at 3.79%. The CME Group's FedWatch <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">tool&#8217;</a>s projections show markets pricing an 89.5% 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>0.81%</td></tr><tr><td>S&amp;P 500</td><td>1.00%</td></tr><tr><td>Nasdaq 100</td><td>1.01%</td></tr><tr><td>Russell 2000</td><td>0.98%</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 Tuesday. The SPY was up 1.06% to $519.32, while the QQQ declined 1.11% to $437.92, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



Cues From Last Session:



Energy, consumer discretionary, and information technology sectors pulled the U.S. stocks down on Monday.



Shares of&nbsp;Tesla Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>)&nbsp;fell around 5.8%, while&nbsp;Nvidia Corp.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)&nbsp;lost about 4.5% on Monday.&nbsp;Amazon.com Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>)&nbsp;shares dipped around 5% during the session.



Comerica Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMA#NYSE">CMA</a>) fell despite&nbsp;reporting better-than-expected earnings for its first quarter on Monday.



After Monday&#8217;s close, the Nasdaq 100 was down 19.86% from its all-time high of 22,222.61 points. The S&amp;P 500 index was 16.09% lower than its previous record of 6,147.43 points, and the Dow Jones was 18.09% below 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>-2.55%</td><td>15,870.90</td></tr><tr><td>S&amp;P 500</td><td>-2.36%</td><td>5,158.20</td></tr><tr><td>Dow Jones</td><td>-2.48%</td><td>38,170.41</td></tr><tr><td>Russell 2000</td><td>-2.14%</td><td>1,840.32</td></tr></tbody></table></figure>



Insights From Analysts:



Senior economist Jeremy Siegel stated in his weekly WisdomTree note that &#8220;Markets show signs of tension.&#8221;



According to him, tariffs may drive a temporary bump in spending as firms and households rush to front-load purchases, but that demand is borrowed from future quarters. That's not sustainable; it's a warning sign. And once the real price increases filter through to consumer goods, public sentiment will shift quickly.



&#8220;Earnings are starting to reflect this uncertainty, though much of Wall Street's consensus remains stale, still anchored in pre-tariff forecasts. CEOs should be updating their models now to reflect multiple trade scenarios, especially those most exposed to China or to consumer imports.&#8221;



Siegel also highlighted that Powell will be blamed for any issues arising from Trump&#8217;s policy decisions.



&#8220;I expect Trump to increasingly blame the ‘too slow Powell' for any downsides that materialize from Trump's policies. Powell may be technically secure in his position, but that doesn't mean he's insulated from blame.&#8221;



Lastly, he advised that &#8220;For income, I continue to favor dividend-paying equities and international exposure over long-duration bonds.&#8221;



Fundstrat&#8217;s Tom Lee urged Scott Bessent and Howard Lutnick to <a href="https://www.benzinga.com/25/04/44915795/tom-lee-urges-bessent-and-lutnick-to-put-points-on-the-board-for-a-positive-policy-shock-to-the-stock-market">deliver swift trade deals</a>, aiming for a positive market &#8220;policy shock.&#8221;



Echoing Charles Gasparino&#8217;s call for the White House to &#8220;put points on the board,&#8221; which is a sales jargon for quick action during a slump, Lee stated that the market is sending this same message to Bessent, Lutnick, and the Trump&#8217;s trade team.



"They got to cut some deals and let the world know, and they have to do so soon because this could get even uglier," Gasparino's post 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">This is true &#x1f447; White House needs to put &quot;points on the board&quot; &#8211; this would be a positive &quot;policy shock&quot; <a href="https://t.co/XE4B6oVUi1">https://t.co/XE4B6oVUi1</a>&mdash; Thomas (Tom) Lee (not drummer) FSInsight.com (@fundstrat) <a href="https://twitter.com/fundstrat/status/1914421616471380033?ref_src=twsrc%5Etfw">April 21, 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/money/how-to-trade-futures">How to Trade Futures </a>



Upcoming Economic Data



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



<ul>
<li>Philadelphia Fed President Patrick Harker will speak at 9:30 a.m., Minneapolis Fed President Neel Kashkari will speak at 2:00 p.m., and Richmond Fed President Tom Barkin will speak at 2:30 p.m. ET.</li>
</ul>



Stocks In Focus:



<ul>
<li>Verizon Communications Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>) rose 0.75% in premarket on Tuesday as it is expected to report earnings before the opening bell. Analysts expect a quarterly earnings of $1.15 per share on revenue of $33.24 billion.</li>
</ul>



<ul>
<li>3M Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MMM#NYSE">MMM</a>) was 0.06% below the flatline as Wall Street expects it to report earnings of $1.77 per share on revenue of $5.76 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>) was up 0.66% as it is expected to report earnings after the closing bell. Analysts expect a quarterly earnings of 41 cents per share on revenue of $21.35 billion.</li>
</ul>



<ul>
<li>AZZ Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AZZ#NYSE">AZZ</a>) declined 4.66% after posting weaker-than-expected sales for its fourth quarter on Monday. The company reiterated its FY26 EPS forecast of $5.50-$6.10 on revenue of $1.625 billion-$1.725 billion.</li>
</ul>



<ul>
<li>Calix Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CALX#NYSE">CALX</a>) jumped 13.14% after reporting better-than-expected first-quarter financial results and issuing strong second-quarter guidance. The company also announced an authorized increase to its stock repurchase program.</li>
</ul>



<ul>
<li>Guidewire Software Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GWRE#NYSE">GWRE</a>) advanced 0.97% after committing $60 million to advance cloud-based insurance innovation and compliance in Japan.</li>
</ul>



<ul>
<li>S&amp;P Global Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPGI#NYSE">SPGI</a>) jumped 2%, while Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) was 1.28% higher after the former launched AI-ready commodities data integrated with MSFT&#8217;s 365 Copilot.</li>
</ul>



<ul>
<li>Atkore Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ATKR#NYSE">ATKR</a>) climbed 5.08% after reporting preliminary second-quarter results, maintaining its full-year outlook.</li>
</ul>



<ul>
<li>Standard Lithium Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLI#NYSE">SLI</a>) surged 45% after its South West Arkansas Project received special designation as a priority transparency critical mineral project from the Trump Administration.</li>
</ul>



Commodities, Gold, And Global Equity Markets:



Crude oil futures were trading higher in the early New York session by 1.68% to hover around $63.46 per barrel.



Gold Spot US Dollar advanced 0.92% to hover around $3,455.17 per ounce. Its fresh record high stood at $3,499.92 per ounce. The U.S. Dollar Index spot was higher by 0.07% at the 98.3450 level.



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



Read Next:



<ul>
<li><a href="https://www.benzinga.com/25/04/44916388/chicago-fed-chair-goolsbee-agrees-with-bessent-fed-independence-is-a-jewel-box-awaits-tariff-revisit-before-jumping-to-action">Chicago Fed Chair Goolsbee Agrees With Bessent: &#8216;Fed Independence Is A Jewel Box,&#8217; Awaits Tariff Revisit Before &#8216;Jumping To Action&#8217;</a></li>
</ul>



Photo courtesy: Shutterstock

Futures

Treasuries

Pre-Market Outlook

General

AMZN

ATKR

CALX

GWRE

MSFT

NVDA

SPGI

US Stocks Likely To Open Higher Amid Trump's Preemptive Rate Cut Call:  Earnings Are Starting To Reflect This 'Uncertainty,' Says Expert

National Economic Council (NEC) Director Kevin Hassett anticipates the GOP tax bill will be approved by Congress by the start of summer.



What Happened: Hassett informed journalists at the White House of his expectations for the tax bill. He stated, &#8220;The hope is that the tax bill will be passed by the summer, early summer and so things are moving very, very quickly.&#8221; Hassett expects to "finalize the president's thoughts on the tax agenda" by next week, <a href="https://www.politico.com/news/2025/04/18/moving-very-very-quickly-hassett-predicts-tax-bill-passes-by-summer-00298446">reported </a>POLITICO.



Hassett&#8217;s timeline aligns with House Speaker Mike Johnson&#8216;s aspirations to pass President Donald Trump&#8216;s policy agenda by Memorial Day. However, this is an ambitious goal, considering the significant differences between Senate and House Republicans&#8217; proposals to extend trillions of dollars in expiring tax cuts from Trump&#8217;s first term.



The GOP legislation also aims to deliver on Trump&#8217;s campaign promises by eliminating taxes on tips, overtime pay, Social Security benefits, and implementing other new tax cuts. These tax provisions are included in the &#8220;one big beautiful bill&#8221; that Trump envisions, which also covers energy, border, and defense policies — along with potential significant spending cuts that may affect Medicaid.



Last week,&nbsp;House Republicans passed a budget blueprint for the legislation before heading out of Washington for recess. Hassett also mentioned that the &#8220;Big Six&#8221; group, which includes himself,&nbsp;Johnson, Senate Majority Leader John&nbsp;Thune (R-S.D.), Treasury Secretary Scott&nbsp;Bessent, Senate Finance Chair Mike&nbsp;Crapo (R-Idaho),&nbsp;and House Ways and Means&nbsp;Chair Jason Smith (R-Mo.),&nbsp;has been holding regular meetings to discuss the details of Trump&#8217;s tax bill.



Why It Matters: President Trump&#8217;s ambitious <a href="https://www.benzinga.com/personal-finance/25/02/44063509/trumps-5-trillion-to-11-trillion-tax-plan-a-boost-for-growth-or-a-path-to-unprecedented-debt">tax plans</a> could reduce federal revenue by $5 trillion to $11.2 trillion over the next decade, potentially increasing the nation&#8217;s debt, estimated the Committee for a Responsible Federal Budget. This plan includes extending tax cuts from the 2017 Tax Cuts and Jobs Act, expanding deductions, and providing targeted tax relief for specific groups.



In&nbsp;<a href="https://www.benzinga.com/personal-finance/25/03/44197826/big-deficits-big-tax-cuts-but-at-what-cost-how-the-fy2025-budget-impacts-everyday-americans">March</a>, Congress found itself in a standoff over the federal budget, with House and Senate Republicans passing different budget measures to advance parts of Trump&#8217;s economic agenda. The impasse sets the stage for a prolonged battle over government spending, tax cuts, and the deficit.



<ul>
<li>READ MORE:&nbsp;<a href="https://benzinga.com/25/04/44914780/michael-saylor-warns-leveraging-ethereum-and-solana-could-lead-to-ftx-terra-luna-like-situationcalls-them-balsa-wood-and-clay-bricks-to-bitcoins-steel" target="_blank" rel="noreferrer noopener">Bitcoin Is Steel, Ethereum And Solana Are Balsa Wood And Clay, Warns Michael Saylor—Strategy Chair Says Leveraging ETH, SOL Could Lead To &#8216;Catastrophe&#8217; &#8211; Grayscale Ethereum Mini Trust (ETH) Common u</a></li>
</ul>



Image via Shutterstock



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

Personal Finance

Congress Could Greenlight Trump's 'Big Beautiful' Tax Bill By Summer: 'Things Are Moving Very, Very Quickly,' Says Hassett

On Monday, April 21, U.S. markets closed lower as President Trump intensified his criticism of Federal Reserve Chair Jerome Powell, raising fresh concerns over the central bank&#8217;s independence. Tech stocks led the sell-off, pulling all major indexes into negative territory. Ongoing trade tensions with China weighed on investor sentiment while anticipation built around upcoming corporate earnings reports.



All 11 sectors in the S&amp;P 500 ended the day in the red, with energy, consumer discretionary, and information technology stocks posting the largest losses.



The Dow Jones Industrial Average dropped 2.48% to 38,170.41, the S&amp;P 500 declined 2.36% to 5,158.20, and the Nasdaq Composite fell 2.55% to 15,870.90.



Related: <a target="_blank" href="https://www.benzinga.com/government/regulations/25/04/44909343/speculators-ramp-up-bets-on-who-will-succeed-fed-chair-powell-as-trumps-pressure-campaign-intensifies" rel="noreferrer noopener">Speculators Ramp Up Bets On Who Will Succeed Fed Chair Powell As Trump&#8217;s Pressure Campaign Intensifies</a>



Asia Markets Today



<ul>
<li>On Tuesday, Japan&#8217;s Nikkei 225 declined 0.14% to close at 34,230.50, led by losses in the Paper &amp; Pulp, Transport and Communication sectors.</li>



<li>Australia&#8217; S&amp;P/ASX 200 closed lower by 0.03% at 7,816.70, led by losses in the IT, Energy and Healthcare sectors.</li>



<li>India&#8217;s Nifty 50 rose 0.18% to 24,170.00 and Nifty 500 rose 0.40% to 22,094.15.</li>



<li>China&#8217;s Shanghai Composite rose 0.25% to 3,299.76, while Shanghai Shenzhen CSI 300 slid 0.02% to 3,783.95.</li>



<li>Hong Kong&#8217;s Hang Seng closed 0.78% higher at 21,562.32.</li>
</ul>



Eurozone at 05:45 AM ET



<ul>
<li>The European STOXX 50 was down 0.25%.</li>



<li>Germany&#8217;s DAX declined 0.19%.</li>



<li>France&#8217;s CAC 40 fell 0.28%.</li>



<li>U.K.&#8217;s FTSE 100 index traded higher by 0.38%.</li>
</ul>



Commodities at 05:45 AM ET



<ul>
<li>Crude Oil WTI was trading higher by 1.07% at $63.48/bbl, and Brent was up 1.57% at $67.30/bbl.</li>



<li>Oil prices rose on Tuesday as traders covered short positions after Monday&#8217;s sharp drop, though concerns lingered over tariffs and U.S. monetary policy dampening fuel demand. Gains were limited by progress in U.S.-Iran nuclear talks, which eased supply fears.</li>



<li>Natural Gas rose 0.70% to $3.037.</li>



<li>Gold was trading higher by 1.24% at $3,46.86, Silver was up 0.13% to $32.563, and Copper rose 0.82% to $4.7670.</li>



<li>Gold prices hit a new record high on Tuesday, driven by safe-haven demand amid U.S.-China trade tensions and concerns over Trump&#8217;s push to overhaul the Federal Reserve.</li>
</ul>



U.S. Futures at 05:45 AM ET



Dow futures were up 0.87%, S&amp;P 500 futures gained 0.98% and Nasdaq 100 futures rose 0.99%.



Forex at 05:45 AM ET



<ul>
<li>The U.S. Dollar Index slipped 0.01% to 98.34, USD/JPY was down 0.35% to 140.35, and USD/AUD gained 0.15% to 1.5608.</li>



<li>The dollar fell to new lows Tuesday as Trump&#8217;s criticism of Fed Chair Powell sparked concerns over central bank independence and weakened confidence in the currency.</li>
</ul>



Image Via Shutterstock

Asia

Emerging Markets

Eurozone

Commodities

ADIV

AGOV

ASHR

BBEU

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EEMA

FLAX

IEMG

IEUR

KDIV

SPEM

USDU

Gold Hits Record High, Dollar Weakens As Trump's Policy Stance And Fed Chair Criticism Induces Uncertainty

The Primary School, a tuition-free private institution co-founded by Priscilla Chan, wife of Meta Platforms Inc. founder Mark Zuckerberg, will shut down after the 2025-2026 school year, the organization announced.



What Happened: Founded in 2016, the school aimed to integrate healthcare, education, and family support by bringing together parents, educators, and medical providers to serve underserved communities. The school currently operates two locations in East Palo Alto and East Bay, California.



&#8220;This was a very difficult decision,&#8221; said Jean-Claude Brizard, President of the school&#8217;s board, in a statement. The closure comes despite Chan and Zuckerberg&#8217;s continued investment in education and scientific research through their Chan Zuckerberg Initiative (CZI). The school has not publicly disclosed specific reasons for the closure.



To support the transition, CZI will invest $50 million over the next few years in the affected communities. The investment includes funding for 529 education savings plans for students, transition specialists, and support for families moving to new schools.



See Also: <a href="https://www.benzinga.com/25/04/44915795/tom-lee-urges-bessent-and-lutnick-to-put-points-on-the-board-for-a-positive-policy-shock-to-the-stock-market">Tom Lee Urges Bessent And Lutnick To &#8216;Put Points On The Board&#8217; For A &#8216;Positive Policy Shock&#8217; To The Stock Market</a>



Why It Matters: Some students will join the Ravenswood City School District, which has collaborated with The Primary School since its inception. 



The school&#8217;s innovative approach was designed to address systemic challenges facing underserved communities by creating a comprehensive support network for children from infancy through early adolescence. It currently serves over 300 families in East Palo Alto.



While The Primary School is closing, <a href="https://www.benzinga.com/general/entertainment/24/08/40411578/meta-ceo-mark-zuckerberg-commissions-statue-of-wife-priscilla-chan-sparks-online-buzz-bring">CZI continues its broader mission</a> through recently announced scientific &#8220;grand challenges&#8221; focused on the artificial intelligence-biology intersection to advance human health, including the development of an AI-based virtual cell model and new inflammation measurement tools.



Read Next: 



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<li><a href="https://www.benzinga.com/markets/commodities/25/04/44915727/gold-tops-3500-as-investors-flee-to-safety-mohamed-el-erian-warns-of-global-system-shift-amid-trump-powell-tensions">Gold Tops $3,500 As Investors Flee To Safety: Mohamed El-Erian Warns Of Global System Shift Amid Trump-Powell Tensions</a></li>
</ul>



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



Image Via Shutterstock

Mark Zuckerberg's Wife Priscilla Chan's Tuition-Free School To Shutdown, $50 Million Support Pledged For Transition

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



U.S. stocks settled lower on Monday, with the Dow Jones index falling more than 950 points during the session. President Donald Trump took to Truth Social, demanding immediate rate cuts and blasting Fed Chair Jerome Powell as &#8220;Mr. Too Late,&#8221; accusing him of past political bias and inflation misjudgment.



Shares of Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) fell around 5.8%, while Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) lost about 4.5% on Monday. Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) shares dipped around 5% during the session.



Comerica Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMA#NYSE">CMA</a>) reported better-than-expected earnings for its first quarter on Monday. Netflix Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) reported stronger-than-expected first-quarter financial results after the closing bell on Thursday.



All sectors on the S&amp;P 500 closed on a negative note, with energy, consumer discretionary, and information technology stocks recording the biggest losses on Monday.



The Dow Jones closed lower by around 972 points to 38,170.41 on Monday. The S&amp;P 500 dipped 2.36% to 5,158.20, while the Nasdaq Composite fell 2.55% to 15,870.90 during Monday's session.



Investors are awaiting earnings results from Verizon Communications Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>), 3M Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MMM#NYSE">MMM</a>), and Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) today.



What is CNN Business Fear &amp; Greed Index?



At a current reading of 21.6, the index remained in the &#8220;Extreme Fear&#8221; zone on Monday, versus a prior reading of 19.5.



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: 



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<li><a href="https://www.benzinga.com/25/04/44896269/how-to-earn-500-a-month-from-3m-stock-ahead-of-q1-earnings">How To Earn $500 A Month From 3M Stock Ahead Of Q1 Earnings</a> </li>
</ul>



Photo courtesy: Shutterstock

NFLX

Nasdaq Dips Over 400 Points Amid Plunge In Tesla, Nvidia Shares: Greed Index Remains In 'Extreme Fear' Zone

Two prominent Fed voiced issued strong public defenses of the central bank&#8217;s independence on Monday, calling out President Donald Trump&#8216;s attacks on Chair Jerome Powell as politically <a href="https://www.benzinga.com/topic/jerome-powell">dangerous and economically destabilizing.</a>



Speaking Monday on CNBC, Richard Fisher, former president of the Dallas Fed, warned that Trump's repeated attacks on Powell could inflict serious long-term damage on the credibility of the Federal Reserve and the broader U.S. economy.



"The one thing you don't want to have happen is for the Fed to become politicized," Fisher said.



Fisher added that even if Trump could fire Powell, which remains legally uncertain, it would be a self-defeating move.



"I don't think it's in the president's interest to sack him. The markets would react extremely negatively," he said.



Fisher also highlighted that current uncertainty has already paralyzed corporate decision-making, referencing companies like United Airlines Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UAL#NASDAQ">UAL</a>), which recently offered dual earnings forecasts due to macroeconomic unpredictability.



"I think the president, frankly, is undermining his own case." "No business can make a decision here," Fisher said. "That uncertainty has been generated by the executive branch."



When asked whether Trump could legally demote or remove Powell, Fisher pointed to historical precedent—most notably in 1979, when President Jimmy Carter reassigned then-Fed Chair G. William Miller to Treasury Secretary after a period of poor economic performance and appointed Paul Volcker in his place. 



"I hope it doesn't come to push and shove," he said. "If it does, we're going to see further spread widening, higher interest rates and pressure that damages long-term confidence in the economy."



Fisher also pushed back on the assumption that Fed rate cuts would lower market interest rates, pointing out that recent episodes of easing were followed by yield spikes in longer-term bonds.



"After they cut 50 basis points and then did three more cuts, yields went up—not down. The 10-year rose by 100 basis points," Fisher said. "So even if you force cuts, the market may not respond how you think."



Ultimately, Fisher painted a picture of a market hamstrung by political volatility and a Fed cornered by noise from the White House.



&#8220;Forget about the stock market, the FED will always act if the credit markets become dysfunctional.&#8221;



<h3 class="wp-block-heading">Goolsbee: Interference Means &#8216;Higher Inflation, Worse Growth&#8217;</h3>



Echoing Fisher's concerns, Austan Goolsbee, President of the Federal Reserve Bank of Chicago, said earlier on <a href="https://www.cnbc.com/2025/04/21/chicago-feds-goolsbee-says-fed-independence-is-critically-important-for-its-inflation-fight.html">CNBC's Squawk Box</a> that interfering with the Fed's independence would erode the institution's credibility and lead to long-term economic pain.



"Fed independence is critically important," Goolsbee said. "When there is interference over the long run, it's going to mean higher inflation, worse growth and higher unemployment."



Although Goolsbee declined to comment directly on Trump's statements, his message was clear: monetary credibility depends on political neutrality, especially when inflation-fighting resolve is needed.



"Just look at the countries where they don't have Fed independence. Inflation is higher, unemployment is higher, growth is worse," he added.



U.S. financial markets came under heavy pressure Monday, with stocks, bonds and the dollar falling in unison, a rare and unsettling signal of deepening investor distrust.



The U.S. Dollar Index (DXY), tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>), slid to its lowest level since April 2022.



The S&amp;P 500, mirrored by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), sank 3.3% in one of its steepest single-day drops of the year.



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</ul>



Photo: RozenskiP / Shutterstock.com

Broad U.S. Equity ETFs

Top Fed Voices Defend Powell, Slam Trump's Attack On Central Bank Independence

Three major U.S. defense contractors — RTX Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>), Northrop Grumman Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOC#NYSE">NOC</a>) and Lockheed Martin Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>) — are all scheduled to report earnings before the market opens on Tuesday. Here's a look at what to <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/04/44810625/top-analyst-sees-unprecedented-traction-for-pltr-stock-after-nato-agreement-another-validation-sign">watch in the reports. </a>



What To Know: The Trump administration has signaled potentially historic defense spending, with reports suggesting a Pentagon budget near $1 trillion, which could benefit all three contractors. However, President Donald Trump has sent mixed messages by advocating for increased allied purchases of U.S. weapons while discussing the possibility of cutting U.S. military spending. 



The administration's push for efficiency, led by Elon Musk at the Department of Government Efficiency, introduces more uncertainty for defense contractors, as many major programs are under review. 



Read Next: <a href="https://www.benzinga.com/25/04/44903087/amazon-stock-downgraded-price-target-slashed-as-tariffs-create-uncertainty">Amazon Stock Downgraded, Price Target Slashed As Tariffs Create Uncertainty&nbsp;</a>



RTX: Investors will be looking for continued growth in RTX's Collins Aerospace and Pratt &amp; Whitney units, which both recently announced a slew of <a href="https://www.benzinga.com/news/contracts/25/04/44686376/rtx-pops-as-pratt-whitney-expands-gtf-capacity-collins-aerospace-enhances-offerings">new deals </a>and led 2024's gains.



The company's backlog will also be monitored for continued growth after reaching a record $218 billion at the end of 2024.&nbsp;



According to estimates from <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro</a>, analysts expect the company to report earnings of $1.35 per share and revenue of $19.79 billion for the quarter.&nbsp;



NOC: Investors will be watching the performance of Northrop&#8217;s four main business segments: Aeronautics Systems, Defense Systems, Mission Systems and Space Systems, as well as updates on 2025 revenue and free cash flow guidance. 



Current expectations are for revenue between $42 billion and $42.5 billion and free cash flow of between $2.9 billion and $3.3 billion.&nbsp;



Earlier in April, Goldman Sachs analyst Noah Poponak upgraded Northrop Grumman stock from Sell to Neutral and raised the price target from $424 to $521. Analysts expect the company to report earnings of $6.26 per share on revenue of $9.94 billion, according to estimates from <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro</a>. 



LMT: Last week, Evan Scott <a href="https://www.benzinga.com/25/04/44867490/evan-scott-takes-over-as-lockheed-martin-cfo-succeeding-jesus-jay-malave">was named </a>as Lockheed Martin's CFO, succeeding Jesus Malave, effective immediately. In a press release, the company said it will be reaffirming its previously issued 2025 guidance and will provide updates on other key topics and answer questions with its first quarter earnings release. 



Investors will be watching the company's Aeronautics segment, driven by the F-35 program, which is expected to post solid sales. Analysts expect Lockheed Martin to report earnings of $6.34 per share on revenue of $17.8 billion for the first quarter. 



Read Next:&nbsp;



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<li><a href="https://www.benzinga.com/news/global/25/04/44899617/90-chance-of-recession-due-to-trumps-tariffs-sharp-slowdown-is-coming-economist-says">90% Chance Of Recession Due To Trump&#8217;s Tariffs: &#8216;Sharp Slowdown&#8217; Is Coming, Economist Says</a></li>
</ul>



Photo: <a href="https://www.shutterstock.com/g/MCMEDIASTUDIOPRO">MC MEDIASTUDIO</a> via Shutterstock

RTX, Lockheed Martin, Northrup Grumman Report Earnings Tuesday: What To Watch

President Donald Trump&#8216;s <a href="https://www.benzinga.com/government/regulations/25/04/44896834/dollar-hits-3-year-lows-us-stocks-tumble-as-trump-threatens-to-fire-powell-contrarians-of-the-world-unite">mounting fierce criticism</a> against Federal Reserve Chair Jerome Powell is unnerving the marker and taking down tech juggernaut Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>, NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>). 



Still, there may be a chance to extract quick profits for bold and opportunistic traders.



To be clear, no one should dismiss the anxiety surrounding the latest market rumblings. In a Truth Social post, Trump previously signaled discouraging intentions for the Fed chair. 



"Jerome Powell is always too late and wrong. His termination cannot come fast enough,&#8221; Trump said.



Trump initially nominated Powell in 2017. President Joe Biden appointed Powell to another four-year term in 2022. U.S. presidents do not have the legal authority to fire a Fed chairman before the end of a term, which for Powell is May 2026.



At the heart of the matter is the benchmark interest rate, with Trump blasting Powell for not cutting borrowing costs despite falling oil prices and easing inflation concerns. The president further <a href="https://www.benzinga.com/economics/macro-economic-events/25/04/44875406/hell-be-out-if-i-ask-him-can-trumps-threat-to-oust-powell-shake-the-fed">stoked the flames of discontent</a>, remarking during a public appearance with Italian Prime Minister Giorgia Meloni that he could remove Powell "real fast" if he so wished.



Of course, the political drama only underscores a far more pressing concern: the White House's economic policies — particularly related to tariffs against key economic partners — threatens to <a href="https://www.benzinga.com/news/global/25/04/44899617/90-chance-of-recession-due-to-trumps-tariffs-sharp-slowdown-is-coming-economist-says">sink the nation into a recession</a>, potentially sometime this year. For a company like Alphabet, which depends heavily on advertising revenue, a downturn would be problematic; hence, the volatility in Alphabet&#8217;s stock.



Despite the wide-ranging concerns, management has a chance to frame the narrative properly with the company's Thursday after-close <a href="https://www.benzinga.com/quote/GOOG/earnings">earnings disclosure</a>. One area that may convince investors to take a stab at Alphabet stock is the broader integration of artificial intelligence. By embedding AI across products to reduce costs and improve engagement, along with generative AI monetization efforts within the Search platform, the tech giant may help right its own ship.



<h2 class="wp-block-heading">Winners Like Alphabet Don't Stay Deflated for Too Long</h2>



Trump perceives tariffs as key to winning trade deals and often discussed the strategy on the campaign trail. And that's the main takeaway for Alphabet from a stock trading perspective: it's a winner and winners don't stay deflated for too long.



However, with headline metrics such as a year-to-date loss of 22%, it's easy for pessimism to cloud the discourse. Part of the reason for this tendency has to do with the way traditional analyses — whether technical or even fundamental — are structured. Specifically, standard methodologies rely on continuous-time signal processing frameworks. That's a complicated way of saying that there's no such thing as a "good" stock price or "bad" revenue.



Instead, metrics like share price or revenue represent scalar realities: they are what they are. The problem, of course, is that many fall into the trap of interpreting a discrete outcome — for example, "it's a good time to buy" — from a continuous signal without defining what exactly is "good."



To get around this dilemma, investors can deploy a process called abstraction, essentially compressing continuous events into discrete events, thus generating a discrete-event analysis for discrete conclusions. Personally, I deployed a quasi-binary compression for the purposes of calculating a modified first-order Markov chain model on Alphabet stock.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="576" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/04/21151826/GOOG-stock-price-projection-1-1024x576.jpg" alt="" class="wp-image-880553" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/04/21151826/GOOG-stock-price-projection-1-1024x576.jpg 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/04/21151826/GOOG-stock-price-projection-1-300x169.jpg 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/04/21151826/GOOG-stock-price-projection-1-768x432.jpg 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/04/21151826/GOOG-stock-price-projection-1.jpg 1280w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Image by author</figcaption></figure>



What I noted was that in the past two months, the shares have printed in totality (meaning not necessarily in order) a "2-8" sequence: two weeks up, eight weeks down. The 2-8 sequence is rare, flashing only four times in the past decade. What's significant in my opinion is that in three out of the four cases, Alphabet popped sharply higher within the first two weeks of the 2-8 signal flashing.



In any other circumstance, one would consider the above assessment statistically fragile. But price action tends to marshal human emotions, which may lend credibility to this potential upside pivot.



<h2 class="wp-block-heading">Plotting a Bullish Strategy for Alphabet</h2>



With the prospect of a bullish reversal on the horizon — and especially with an earnings report coming — bold traders may be enticed to consider an out-the-money (OTM) wager as opposed to a hedged bet. Every good quarterback knows when it's time to go deep and this might be such a moment.



At this moment, the cheapest vertical spread which in my view touches the boundaries of rationality is the 157.50/160 bull call spread for the options chain expiring May 2. This transaction involves buying the $157.50 call (at an ask of $265) and simultaneously selling the $160 call (at a bid of $193), resulting in a net debit paid of $72, the most that can be lost in the trade.



Should GOOG stock rise through the $160 short strike price at expiration, the maximum reward is $178, or a payout of over 247%.



It's a highly speculative, capped-risk, capped-reward setup. The justification for the trade is that in 75% of the time when the 2-8 sequence flashes, the median return (under the positive pathway) two weeks out is 13.15%. Coincidentally, the timing of the earnings release lends loose support to the speculation that something special could be cooking for Alphabet stock.



Now Read:



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<li><a href="https://www.benzinga.com/government/regulations/25/04/44909343/speculators-ramp-up-bets-on-who-will-succeed-fed-chair-powell-as-trumps-pressure-campaign-intensifies">Speculators Ramp Up Bets On Who Will Succeed Fed Chair Powell As Trump&#8217;s Pressure Campaign Intensifies</a></li>
</ul>



Image: Shutterstock

Long Ideas

Options

Politics

GOOG

GOOGL

Options Corner: Monday Blues Can't Hide Alphabet Stock's Potential Upside Pivot

Netflix (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) reported earnings last Thursday and the response has been positive among traders. The stock has bounced up, briefly recovering the $1,000 price target and now hovering just below that level.



The broad market remains volatile amid the trade war with China, but based on Monday&#8217;s price action, we may have a tradable bottom. However, the topside could be limited in the near term.



That&#8217;s the perfect setup for this &#8220;back ratio&#8221; trade.



Netflix&#8217;s relative resistance zone sits right around $1060, while support is well below near $700.



The back ratio call spread involves buying one call option just below that resistance zone. At the same time, selling two calls just above that zone, like so:



<ul>
<li>Buy to open 1 NFLX 960 calls </li>



<li>Sell to open 2 NFLX 1080 calls </li>
</ul>



I&#8217;ve picked September expiration dates to ‘jump' over the volatility we are likely to see in the summer, which remains unknown. The back ratio holds risk but allows us to finance this bullish position into the future.&nbsp;



This trade requires a margin if the stock is not already in your portfolio. For every call we buy, we sell two calls at higher strikes allowing us to finance part of the position. 



As for cost, the back ratio above holds a current credit of $11.55 at the time of this writing and will define the maximum credit if prices fall below $960 into expiration. 



The breakeven price of the stock at expiration on this trade is $948.45 at this writing, so we will be in profit above this price into expiration.&nbsp;



The maximum profit for this position is calculated in the following way: the long strike $960 subtracted from the short strike $1080 is $120. This difference times 100 yields $1,200 plus the credit we collected at the trade outset, $1,155 is $1,355. If we do not breach the $1,080 price, we achieve maximum gains for the position. 



If we do not own the stock, we will have a theoretically unlimited risk exposure, as prices could move dramatically, so we must calculate where our returns diminish. Every penny above the stock price of $1,080 reduces our profit. If the stock rises past $1,080, a trade adjustment is advised. 



As with all option plays, there are many ways to leave the trade, but I will discuss the following:&nbsp;



<ol>
<li>Sell the back ratio when it has accumulated a predefined profit for your trading style. We have time on our side with this kind of trade, so as long as support holds, the trade premise remains valid. Set an alert for $1,080 as there is only risk if the stock rises sharply and stays there. </li>



<li>Sell the back ratio when there are less than 21 days to expiration as volatility expansion will affect these positions significantly. </li>



<li>Sell the back ratio when it hits a predefined stop or risk limit for your trading style. This trade will erode profits the further above $1,080 it climbs. </li>



<li>&#x2A;&#x2A; You could turn this into a butterfly by buying the strike at $1200, but this becomes a debit and the risk will now be the outlay of cash to purchase the position.</li>
</ol>



<h2 class="wp-block-heading">Trading Volatility: New Strategies to Manage Market Uncertainty</h2>



Markets are breaking down—and breaking out. With 35 years on Wall Street, Matt Maley knows how to read between the headlines. Join him live Wednesday at 6 PM ET to see the technical patterns and setups that can lead to surprising gains—even in a sideways market. Click <a href="https://events2.benzinga.com/matt-maley-webinar-wed-apr23-2025-registration">HERE</a> to reserve your spot now.



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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Opinion

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