Market Movers: April 14th, 2025

Fresh news and strategies for traders. SPY Trader episode #1094. Hey everyone, it's your pal Finny McFinance here, ready to break down the market moves on this fine Monday, April 14th, 2025. It's 6 pm Pacific, and let's dive right into what's shaking up Wall Street. First off, a quick recap: the market had a generally positive day. The Dow, S&P 500, and Nasdaq all closed higher, driven by news of temporary tariff exemptions on tech. However, they did close off their session highs, so it was a bit of a rollercoaster. Remember last week? The Dow and S&P had their best week since November 2023, and the Nasdaq its best since late 2022 – shows you how wild things have been! Year to date, the US500 is down 8.27%, so we still have some ground to make up. Let's dig into the news. The big story today was President Trump's announcement of tariff exemptions on smartphones, computers, and chips. This gave tech stocks a nice boost. Apple, for example, closed up 2.2%. Automakers like GM and Ford also saw gains, likely on hopes of tariff relief there too. However, not everyone was celebrating. Several health insurers, like Humana and UnitedHealth Group, took a hit after the government announced Medicare payments for next year would be higher than expected. Seems like good news for some, bad news for others, right? Earnings season has officially begun. We saw reports from big banks like Morgan Stanley, JPMorgan Chase, and Wells Fargo, all beating expectations. Goldman Sachs also exceeded analysts' expectations. However, bank executives are being cautious about the rest of the year, citing uncertainty around tariffs. Staying with individual companies, Palantir jumped nearly 5% after announcing that NATO picked up their AIenabled military system. Pfizer shared some trial results, noting a potential liver issue in one patient. WISeSat and SEALSQ are planning on revealing advancements in postquantum satellite technology. Palladyne AI is going to demonstrate their Palladyne Pilot AI Software Platform for UAVs. Switching gears to the bigger economic picture, US inflation seems to be cooling a bit. The CPI contracted slightly, and core CPI was also below expectations. China, however, is dealing with deflation as both consumer and producer prices fell. The yield on the 10year Treasury is down a bit, and the Fed is expected to hold steady on interest rates for the rest of the year. The US economy is projected to slow down in 2025. Also, small business optimism is declining, which is something to keep an eye on. So, what does all this mean for your investments? Well, Morningstar is recommending underweighting consumer cyclicals, financials, tech, and utilities. They suggest overweighting real estate, energy, healthcare, and basic materials, and leaning towards value stocks. CIBC Capital Markets is favoring dividendyield, lowvolatility, and valuequality factors. Given all the uncertainty, diversification is key. Consider overweighting value stocks and defensive sectors like energy, healthcare, and utilities. Lengthen the duration of your bond portfolio, but stick with US Treasuries. Always use risk management strategies like stoploss orders, and stay informed about market news. Remember, this is just my take on things. Always do your own research before making any investment decisions. One last thing, I heard a funny joke today: How do you know an accountant is on vacation? They relax the figures a bit. Alright folks, that's all for this edition of Spy Trader. Until next time, keep your eye on the market and your hand on the buy button!