OPENING CALL
Shares in carmakers such as Ford, General Motors and Stellantis sank in premarket trading Thursday, after Trump said he would slap 25% tariffs on automotive imports to the U.S.
International rivals that export to the U.S. also came under pressure.
More broadly, however, index futures were flat to modestly higher. That pointed to a calmer session after Wednesday's pullback.
Overseas Markets
European stocks slipped. In Asia, Japan's Nikkei 225 lost 0.6%, while the Hang Seng Index added 0.4%.
Premarket Movers
GameStop fell 6.6% after announcing plans for a private offering of $1.3 billion in convertible senior notes, aiming to use the proceeds for general corporate purposes, including to invest in Bitcoin.
General Motors was down 6.5%, Ford fell 3%, and Stellantis declined 1.8% following the tariffs announcement.
Technology stocks pointed lower in premarket trading. Super Micro Computer was down 0.5% after dropping 8.9% on Wednesday, while Nvidia fell 0.6% after finishing down 5.7% in the previous session.
Postmarket Movers
Concentrix raised its yearly sales outlook and logged higher-than-expected profit and revenue in its fiscal first quarter. Shares rose 8.4%.
H.B. Fuller's profit and sales fell in its fiscal first quarter, but results topped Wall Street's estimates. Shares rose 7.5%.
Petco Health & Wellness narrowed its fiscal fourth-quarter loss to $13.8 million from $22.6 million a year earlier. Petco expects to improve its bottom line through its efforts to clamp down on underperforming stores and products. Shares gained 10%.
Steelcase logged adjusted earnings of 26 cents a share on revenue of $788 million in its fiscal fourth quarter, topping analyst estimates for adjusted earnings of 21 cents a share on revenue of $781.6 million. Shares climbed 10%.
Watch For:
Weekly Jobless Claims; earnings from Lululemon Athletica, TD Synnex, Braze, Winnebago Industries.
Today's Top Headlines/Must Reads:
- Economic Growth Now Depends on Electricity, Not Oil
- Don't Blame Trump for All of the Stock Market's Problems
- Trump's Trade War Is Entering a New Phase. Farmers Are on the Front Lines.
- What We Lose When the World Goes All-In on Index Investing
MARKET WRAPS
Forex:
The dollar edged lower after gains in the previous session as investors reacted to Trump's announcement of a 25% tariff on automotive imports.
Tariff announcements have been surprisingly negative for the dollar recently but the currency's future direction will likely depend on how countries respond to the U.S. tariffs, Swissquote Bank said.
If there is no retaliation, the dollar could rebound on relief that the impact of tariffs on U.S. exports and U.S. growth would be contained, she says.
A retaliation from America's biggest trading partners would "further hammer U.S. growth prospects and weigh on the dollar."
The euro rose against a softer dollar as the announcement of a tariff on automotive imports is yet to have much impact on currency markets, ING said.
"This might be because Trump hinted at potentially being more lenient with reciprocal tariffs next week," and it should keep the euro above the $1.0730 support level, ING said.
The question will be on how Europe retaliates to U.S. tariffs and then how Washington responds. A global trade war is negative for the euro, although the market will assess the impact tariffs have on overall confidence in the eurozone following a recent boost from European fiscal stimulus.
Sterling rose after largely surviving Wednesday's U.K. budget, ING said.
The budget had little impact on sterling with its losses against the dollar on Wednesday driven by lower-than-expected U.K. inflation data and later news of U.S. tariffs on automotive imports.
Sterling has dodged a bullet with the budget but the fiscal spending plans aren't necessarily an outright positive factor, it said.
ING sees the possibility of U.K. tax rises later in the year, meaning Bank of England interest rate cut expectations for this year could be underpriced.
Bonds:
Ten-year Treasury yields rose in European mid-morning trade as investors ponder the potential impact of the latest tariffs on cars for the U.S. economy.
The rise in yields comes ahead of the Treasury's $44 billion auction of seven-year notes later in the day.
German government bonds decoupled from their U.S. counterparts in March, after following them for long, Erste Group Research said.
A massive increase in German bonds was prompted by high planned public spending, it said. "We think that a somewhat over-optimistic economic policy scenario has been priced in here too quickly and expect yields to fall during the course of the year."
The Treasury market, meanwhile, has already largely priced in the imminent marked cooling of the U.S. economy, Erste said, expecting only little change in the Treasury market. The 10-year U.S.
Energy:
Oil prices slipped in early trade as traders weighed the impact on global demand of Trump's 25% tariffs on all imported cars and trucks.
Crude futures settled 1% higher in the previous trading sessions, driven by concerns over tightening supplies amid U.S. pressure on Iranian and Venezuelan exports and declining U.S. inventories.
Traders now await the White House's announcement of reciprocal tariffs on U.S. trading partners due on Wednesday. "Until clarity emerges on the magnitude and scope of tariffs and their implementation, risk appetite is likely to remain muted," ANZ Research said.
Metals:
Gold prices rose in early trade, boosted by tariff uncertainties and a rapidly changing geopolitical landscape keeping investors on edge.
"Gold remains the most reliable hedge against the Trump tariffs," Swissquote Bank said.
Traders are now waiting to see how the dollar will react to Friday's personal-consumption-expenditures price index data.
However, "this print won't matter much given that we just heard from Powell last week--the Fed isn't in a hurry, tariff inflation is 'transitory'," Peak Trading Research said.
TODAY'S TOP HEADLINES
Carrier Has Dodged the Industrial Selloff. Buy the Stock as Gains Get Started.
Lululemon Earnings Are Coming. Guidance Matters Most.
Lululemon Athletica will post a strong holiday quarter if Wall Street is right. The guidance for this fiscal year is still up for debate.
Analysts aren't expecting too many surprises from Lululemon's fourth-quarter results, which will be released after Thursday's closing bell.
Robinhood Customers Are Growing Up, and the Brokerage Wants to Keep Them
Robinhood, the digital brokerage that channeled the meme-stock and crypto craze, is angling to keep its youthful clientele as they graduate from YOLO investing to estate planning.
The company said Wednesday it plans to roll out many new services, from wealth-management tools and bespoke investment portfolios to bank accounts. All of them cater to Americans as they age, earn more money and navigate more complicated financial lives. Robinhood customers' median age has climbed to 35 years old from 31 over the past five years.
Why copper may be more important to the U.S. economy than oil
Copper is a critical material used to make many of the things consumers use every day - but it's importance has taken on new significance as President Donald Trump now sees imports of the industrial metal as a potential national-security risk.
"Copper is the new crude oil," said Phil Flynn, senior market analyst at the Price Futures Group. It's probably "more important to the U.S. economy right now than oil," he added, calling it the "new hottest commodity on the globe."
Trump is now trying to block Canada's efforts to boost Europe ties
U.S. President Donald Trump threatened to levy additional tariffs on Canada and the European Union if they worked together in response to his trade war.
In an early-hours post on Truth Social, Trump said: "If the European Union works with Canada in order to do economic harm to the USA, large scale Tariffs, far larger than currently planned, will be placed on them both in order to protect the best friend that each of those two countries has ever had!"
Trump's Strategy for Signal Chat Fallout: Attack, Attack, Attack
WASHINGTON-The White House is going to war over war plans, dusting off a familiar playbook that President Trump has used for decades to blunt controversies: attack, attack, attack.
The president, senior advisers and top cabinet officials launched a campaign to dismiss one of the biggest crises of Trump's second term, as Washington grappled with the news that top administration national security officials discussed sensitive military operations on a nongovernment message app that included a prominent magazine editor.
Europe Confronts Reality That Vance's Hostility Is More Than Just a Show
European leaders had hoped that Vice President JD Vance's antagonism was a political show to build domestic support. Now, after Vance expressed disdain for Europe in a private text chat about Yemen attack details, officials are coming to terms with a vocal vice president whose antipathy for Europe appears to run deep.
"I just hate bailing Europe out again," he said regarding planned U.S. strikes against Houthi rebels, in an exchange published by the Atlantic magazine. He told fellow administration officials that the U.S. was "making a mistake" by hitting the Houthis, whose attacks on Red Sea shipping have scrambled global shipping routes.
Write to ina.kreutz@wsj.com TODAY IN CANADA
Earnings:
Bitfarms 4Q
Cardiol Therap. 4Q
Lassonde Indus 4Q
Vitalhub 4Q
Economic Indicators $(ET)$:
0830 Jan Payroll employment, earnings and hours, and job vacancies
Stocks to Watch:
Allied Gold 4Q Rev $170.8M; 4Q Loss/Shr 3c
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Cematrix 4Q Rev C$10.4M
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Lundin Mining Announces New Shareholder Distribution Policy; Adjusting Quarterly Dividend to C$0.0275/Share From C$0.09/Share; Allocating Up to Around $150M Per Year in Share Buybacks; Committed to Distributing Around $220M Annually in Shareholder Returns
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Mountain Province 4Q Loss/Shr C$0.29; 4Q Sales C$52M
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The Reject Shop Agrees to A$259 Million Takeover by Canada's Dollarama
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Telus Exploring Tower-Network-Stake Sale to Support Deleveraging Plan, CFO Says
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TeraGo 4Q Loss/Shr C$0.16; 4Q Loss C$3.17M
Expected Major Events for Thursday
00:01/UK: Feb UK monthly automotive manufacturing figures
09:00/ITA: Feb Foreign Trade non-EU
09:30/UK: Feb Capital issuance statistics
12:30/CAN: Jan Payroll employment, earnings and hours, and job vacancies
12:30/US: 4Q 3rd estimate GDP
12:30/US: 4Q Corporate Profits
12:30/US: 03/22 Unemployment Insurance Weekly Claims Report - Initial Claims
12:30/US: U.S. Weekly Export Sales
12:30/US: Feb Advance Economic Indicators Report
13:00/RUS: Weekly International Reserves
14:00/US: Feb Pending Home Sales Index
14:30/US: 03/21 EIA Weekly Natural Gas Storage Report
15:00/US: Mar Federal Reserve Bank of Kansas City Survey of Tenth District Manufacturing
20:30/US: Foreign Central Bank Holdings
20:30/US: Federal Discount Window Borrowings
23:50/JPN: Mar Provisional Trade Statistics for 1st 10 days of Month
All times in GMT. Powered by Kantar Media and Dow Jones.
Expected Earnings for Thursday
Acrivon Therapeutics Inc $(ACRV)$ is expected to report $-0.57 for 4Q.
Acumen Pharmaceuticals Inc $(ABOS)$ is expected to report $-0.52 for 4Q.
Altimmune $(ALT)$ is expected to report $-0.34 for 4Q.
Arbutus Biopharma Corp $(ABUS)$ is expected to report $-0.08 for 4Q.
Atara Biotherapeutics Inc (ATRA) is expected to report for 4Q.
BK Technologies Corp $(BKTI)$ is expected to report for 4Q.
Benson Hill Inc (BHIL) is expected to report for 4Q.
COSCIENS Biopharma Inc (CSCI,CSCI.T) is expected to report for 4Q.
Cabaletta Bio Inc (CABA) is expected to report $-0.67 for 4Q.
Cambium Networks Corp (CMBM) is expected to report $-0.18 for 4Q.
Candel Therapeutics Inc $(CADL)$ is expected to report $-0.19 for 4Q.
Curis Inc $(CRIS)$ is expected to report for 4Q.
DZS Inc (DZSIQ) is expected to report for 4Q.
ENGlobal Corp (ENGC) is expected to report for 4Q.
Ermenegildo Zegna NV (ZGN) is expected to report for 4Q.
Immunic Inc $(IMUX)$ is expected to report $-0.23 for 4Q.
Imunon Inc $(IMNN)$ is expected to report $-0.38 for 4Q.
Kirkland's Inc $(KIRK)$ is expected to report $0.52 for 4Q.
Kodiak Sciences Inc $(KOD)$ is expected to report $-0.84 for 4Q.
Marin Software Inc $(MRIN)$ is expected to report for 4Q.
NeuroMetrix Inc (NURO) is expected to report for 4Q.
Nikola Corp (NKLAQ) is expected to report for 4Q.
Nu Ride Inc (NRDE) is expected to report for 4Q.
Omega Therapeutics Inc (OMGAQ) is expected to report $-0.28 for 4Q.
OnKure Therapeutics Inc $(OKUR)$ is expected to report for 4Q.
Open Lending Corp $(LPRO)$ is expected to report $0.03 for 4Q.
PDS Biotechnology Corp $(PDSB)$ is expected to report $-0.25 for 4Q.
Perpetua Resources Corp (PPTA.T) is expected to report for 4Q.
Security National Financial Corp (SNFCA) is expected to report for 4Q.
Sensei Biotherapeutics Inc $(SNSE)$ is expected to report $-0.27 for 4Q.
Smart Share Global Ltd - ADR (EM) is expected to report for 4Q.
Stratus Properties (STRS) is expected to report for 4Q.
TD SYNNEX Corp $(SNX)$ is expected to report $2.31 for 1Q.
Taylor Devices Inc (TAYD) is expected to report for 3Q.
Telesat Corp $(TSAT)$ is expected to report $-0.61 for 4Q.
Trinity Place Holdings Inc (TPHS) is expected to report for 4Q.
Urban One Inc - Class A (UONE,UONEK) is expected to report for 4Q.
Vincerx Pharma Inc $(VINC)$ is expected to report for 4Q.
WELL Health Technologies Corp (WELL.T) is expected to report $0.01 for 4Q.
Winnebago Industries Inc $(WGO)$ is expected to report $0.01 for 2Q.
Powered by Kantar Media and Dow Jones.
ANALYST RATINGS ACTIONS
Ashland Raised to Overweight From Neutral by JP Morgan
Azek Cut to Peer Perform From Outperform by Wolfe Research
ConnectOne Bancorp Raised to Outperform From Market Perform by Keefe, Bruyette & Woods
JB Hunt Cut to Neutral From Positive by Susquehanna
Micron Technology Cut to Hold From Buy by China Renaissance
Range Resources Raised to Equal-Weight From Underweight by Morgan Stanley
Summit Therapeutics Raised to Buy From Neutral by Citigroup
Waters Corp Raised to Outperform From Neutral by Baird
Westlake Cut to Neutral From Overweight by Piper Sandler
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
March 27, 2025 06:08 ET (10:08 GMT)
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