Market Brew: Earnings, Tariffs, and Tech

Fresh news and strategies for traders. SPY Trader episode #1126. Alright, alright, alright, it's your pal Chip Chipperson here, ready to break down what's shakin' in the stock market. It's 6 am on Monday, April 28th, 2025, Pacific time, and we've got a whole heap of news to sift through. How do accountants stay so fit? By pushing their luck and pulling their weights. Let's dive in! So, last week ended on a high note, with the market closing up for the fourth day in a row on Friday, April 25th. The S&P 500 jumped 0.7%, the Nasdaq really took off with a 1.3% increase, and even the Dow managed a little bump. Tech stocks are definitely the stars of the show right now. But, looking at the whole month, we're still slightly down. As of today, futures are lookin' a little soft as we head into a crazy week of earnings reports. Speaking of tech, that sector, along with consumer cyclicals, really crushed it last week, up 7.66% and 6.49%, respectively. On the flip side, your consumer defensive stocks and real estate lagged behind. So, think twice about those boring sectors right now. Now, let's talk about what's driving all this. The big elephant in the room is still those tariffs. Remember how President Trump's trade policies shook things up earlier this month? Global markets took a nosedive on April 2nd after he announced them, with panic selling and the largest global market decline since 2020. It’s a rollercoaster ride, that's for sure. Earnings season is in full swing. We've got a ton of big names reporting this week, including Apple, Amazon, Microsoft, Meta Platforms, ExxonMobil, CocaCola, and McDonald's. Keep a close eye on those, people! Tesla's been on a bit of a tear lately, too. Elon Musk said he's going to spend less time working with the Trump administration, and that seemed to perk up investors. Plus, there's talk of the White House loosening rules on selfdriving cars. Always something happening with that guy! The economic data is painting a mixed picture. We're waiting on those firstquarter GDP numbers, and folks are worried about the impact of tariffs. Also, keep an eye on the April jobs report to see if those DOGErelated job cuts are having an effect. And of course, everyone's wondering what the Fed's going to do with interest rates. There's a lot of pressure on them to cut rates, especially with these trade war worries. On the macro front, GDP growth is looking a bit anemic, probably somewhere around 1% to 1.3%. Inflation is expected to tick up due to those tariffs, maybe ending the year around 3.5% to 4%. Unemployment could rise, maybe hitting 5%. And get this, consumer sentiment is down to levels we haven't seen since the early 80s. Yikes! As for specific companies this week, earnings are coming in hot. Today, April 28th, watch out for Welltower, Waste Management, Cadence Design Systems, Roper Technologies, Brown & Brown, and Nucor. Tomorrow, April 29th, we've got General Motors, Visa, CocaCola, Astrazeneca, Novartis, HSBC Holdings, Booking Holdings, S&P Global, Honeywell, and Pfizer. Busy, busy! Oh, and Deliveroo put the brakes on its buyback program after DoorDash made a proposal. Keep your eye on that rivalry, folks. So, what's a Chipperson to recommend? I'm cautiously optimistic. There's been a bit of a rally, but those trade policies are still a major wild card. Diversification is key, people. Don't put all your eggs in one basket. Watch those earnings reports like a hawk. Pay attention to the GDP, inflation, and jobs numbers. And maybe think about adding some defensive stocks to your portfolio, like consumer staples and healthcare. Oh, and brace yourselves for more volatility! But remember, I'm just a goofy podcast host. This ain't financial advice, folks. Do your own homework before making any decisions. Chip Chipperson, signing off! Stay frosty!