Stocks got smacked yesterday thanks to the latest tariff news, though they’re stabilizing in early trading today. Crude oil, gold, and silver are mostly flat along with the dollar. Interest rates are climbing a bit.
The Trump Administration sent out a flurry of letters yesterday, advising various trade partners that they would face tariffs of anywhere from 25% to 40% because they hadn’t reached comprehensive deals with the US. Among those targeted were larger trade partners like Japan (25%) and South Korea (25%), plus smaller ones such as Tunisia (25%), South Africa (30%), and Thailand (36%).
SPY, HON, AMZN (YTD % Change)
Data by YCharts
At the same time, the president kicked the deadline can down the road to Aug. 1 from July 9. Wall Street is hoping the extra few weeks will allow more deals to be signed. So far, only a narrow pact with the UK and a yet-to-be-fully-revealed deal with Vietnam have been closed. The US and China also agreed to a temporary truce to allow for more negotiations.
In corporate news, Honeywell International Inc. (HON) is considering strategic alternatives for its transportation and logistics businesses ahead of a three-way breakup. The conglomerate will ultimately split into companies focused on aerospace, automation, and advanced materials, and it’s looking to pare some operations ahead of the move. HON shares are up 5.9% year-to-date.
Finally, it’s “Prime Day” at Amazon.com Inc. (AMZN). Or more accurately, it’s Prime Week. The online retailer’s annual sales event will run today through Friday, and feature discounts on a wide range of products. The gimmick has received less attention and interest over time, but research firm Emarketer still projects Amazon will sell $12.9 billion in product over the four-day span. AMZN has eked out a 1.8% YTD gain.
