Stocks have been trading all over the map amid conflicting headlines out of Washington. They’re mixed in the early going today, while Treasuries, crude oil, and the dollar are all lower. Bitcoin is hovering around $100K...again.
I don’t know how well you remember Trump 1.0. But back then, it was the “US-China trade deal secured/US-China trade deal unsecured” stuff that whipsawed markets. Now, we’re in a “Tariff On/Tariff Off” environment.
Case in point: After initially slapping 25% tariffs on imports from Mexico and Canada over the weekend, President Trump relented following phone calls with leaders of those countries. Specifically, he gave each country a 30-day reprieve on tariffs after one conversation with Mexican President Claudia Sheinbaum and two with Canadian Prime Minister Justin Trudeau. In exchange, they pledged more assets and people to help secure their respective US borders and stymie drug trafficking.
Meanwhile, Trump threatened the European Union with unspecified tariffs. And he kept the 10% tariff on Chinese goods he previously announced in place...something that led China to retaliate overnight with a 15% tariff on select US energy products and a 10% levy on oil and agricultural equipment. A handful of other sanctions were also announced, but analysts noted they appeared calibrated to prevent US-China tensions from escalating significantly.
Palantir Technologies Inc. (PLTR)
Data by YCharts
And how about the Artificial Intelligence (AI) juggernaut that is Palantir Technologies Inc. (PLTR)? The tech firm provides software, data analytics tools, and AI-driven intelligence to military and commercial customers. Its shares have been on fire, up 392% in the last year. Then late yesterday, it trounced analyst earnings estimates and hiked its annual revenue forecast. That sent the stock up another 18% in early trading.
On the flip side, struggling Estee Lauder Cos. (EL) is sinking after reporting disappointing results. The cosmetics company also said it would slash up to 7,000 jobs as it seeks to turn around operations. EL owns the Clinique and MAC makeup brands, and it has been struggling with stiff competition.