Trump Tariff "Liberation Day" and Jobs Report Awaited in the Upcoming Week
The week ahead is poised to be a significant one for investors, with key events such as Trump’s tariff announcement and the latest jobs report on the horizon. Here’s what to expect:
Market Recap
- U.S. stocks experienced a tumultuous week, with negative news on inflation, the economy, and Trump’s trade war leading to a sharp selloff.
- The S&P 500 fell about 1%, the Dow Jones slumped 1.5%, and the tech-heavy Nasdaq declined 2.6%.
- The Nasdaq is now on track for its worst monthly performance since December 2022, with an over 8% decline.
Upcoming Events
- President Trump is set to reveal a fresh round of tariffs on Wednesday, creating uncertainty in the market.
- Friday’s U.S. employment report for March is anticipated to show an addition of 139,000 jobs, with the unemployment rate remaining steady at 4.1%.
- Fed Chairman Jerome Powell and other Fed speakers will also be in focus, with interest rate futures suggesting a high likelihood of a rate cut by June.
Earnings Outlook
- Some notable corporate results expected include Conagra Brands, Lamb Weston, RH, Guess, and PVH.
Stock To Buy: ExxonMobil
ExxonMobil is well-positioned to benefit from the changing dynamics of energy trade amid Trump’s trade policies. Here’s why:
- Trump’s trade war and sanctions on foreign oil suppliers could drive up oil prices, benefiting U.S. energy companies like ExxonMobil.
- With an upward trend in crude prices, ExxonMobil’s domestic operations stand to gain significantly.
- ExxonMobil’s stock performance has been strong, with a market cap of $510 billion and a 9.4% increase since the start of 2024.
Stock to Sell: General Motors
General Motors faces challenges due to Trump’s tariffs on imported vehicles and components. Here’s why it might be a stock to avoid:
- The tariffs could lead to a significant cost increase for the auto industry, impacting GM’s profit margins.
- GM’s reliance on imports makes it vulnerable to the tariffs, potentially affecting its earnings power.
- GM’s stock has been underperforming, down 12.4% year-to-date, with a market cap of $46.5 billion.
Financial Health Analysis
- ExxonMobil maintains a solid Financial Health score of 2.88, with strong performance in price momentum and profit metrics.
- General Motors also has a respectable financial health score of 2.61, showing balanced performance across profit metrics and growth.
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In conclusion, the upcoming week is filled with key events that could impact the market. Investors should stay informed and consider actionable trade ideas to navigate the market volatility effectively. Subscribe to InvestingPro for valuable insights and stay ahead of the curve in your trading endeavors. Title: The Ultimate Guide to Understanding Investment Strategies for Maximum Returns
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