Damn the torpedoes! Stocks go full speed ahead despite declining U.S. shipping and manufacturing data
Investors the world over cheered upbeat earnings calls from companies like Amazon, Apple, Microsoft and Meta, driving eight straight days of gains in the S&P 500. Markets in Asia and Europe rose this morning. The news cycle is also helping: China’s commerce ministry said it was in contact wth the U.S. about trade talks. Investors seem to be betting that, ultimately, President Trump’s tariff barriers will come down in a series of compromises.
However, while the sun might be shining on stocks today, there are storm clouds in the forecast for the coming months. Shipping and manufacturing data are showing dramatic declines in activity. And McDonald’s, Domino’s Pizza and Starbucks have all complained that Americans are reducing their discretionary food purchases as Tariff World approaches.
Here’s a snapshot of today’s action:
U.S. tech stocks largely rose yesterday as analysts cheered upbeat earnings calls
“[Amazon] delivered solid 1Q results & 2Q outlook w/overall less macro & tariff related impact than feared,” Doug Anmuth of JPMorgan Chase told clients in a note titled “Uneventful Is Good.”
His colleague Samik Chatterjee and team were buoyed by Apple’s call: “Apple’s results showcased the resilience that investors have come to expect as the outcomes outlined by the company in relation to F3Q (June-end) guidance was better than feared by investors in the context of a challenging macro and tariff uncertainty,” they said in a note seen by Fortune .
Wedbush’s Daniel Ives, who has been pouring scorn on Trump’s tariff plans in recent weeks, was somewhat reassured by Apple’s earnings call. “We learned on the conference call that India will be the ‘life raft supply chain’ that should help Apple navigate this unprecedented tense environment in China,” he and his team told clients.