Early Look

Monday, March 24, 2025

US stock-index futures climb overnight on signs that the next round of President Donald Trump’s tariffs may be more measured than previously suggested. The moves follow reports that Trump’s announcement of universal, reciprocal trade tariffs on April 2 will be narrower and more targeted than initially expected, both the WSJ and Bloomberg reported this weekend citing aides and allies. Trump has noted that April 2^nd will be “Liberation Day” for the US, unveiling so-called reciprocal tariffs seen as retribution for tariffs and other barriers from other countries, including longtime US allies. Bond yields rise in hopes for limited tariff increases, while the dollar slip. Bitcoin prices are jumping 3% around $88,000 while gold prices gain +0.4% to $3,033 an ounce. U.S. stocks finished higher on Friday as S&P 500 snapped its 4-week losing streak, rising 0.5% last week, as the Nasdaq climbed 0.17%, and the Dow climbed 1.2%. In Asian markets, The Nikkei Index fell -68 points to 37,608, the Shanghai Index rose 5 points to 3,370, and the Hang Seng Index gained 215 points to 23,905. In Europe, the German DAX is up 65 points to 22,957, while the FTSE 100 is up a few points to 8,653. In macro news, US and Russian officials are meeting in Saudi Arabia a day after American and Ukrainian teams held talks, as Trump pushes for progress in achieving a ceasefire in the war.

• The Dow Jones Industrial Average rose 32.03 points, or 0.08%, to 41,985.35
• The Nasdaq Composite gained 92.43 points, or 0.52%, to 17,784.05
• The Russell 2000 Index declined -11.65 points, or 0.56% to 2,056.98.

• 9:45 AM ET S&P Global Manufacturing PMI, March-flash
• 9:45 AM ET S&P Global Services PMI, March-flash

• Earnings After the Close: ABVX DFLI EPAC KBH OKLO OCX

• Business activity in the eurozone area reached its highest level in seven months as the Composite Purchasing Managers’ Index by S&P Global rose slightly to 50.4, further above the 50-threshold separating expansion from contraction. Analysts had predicted a slightly higher reading of 50.7.
• Following the Bank of Japan’s (BoJ) decision to maintain its current policy last week, Governor Ueda emphasized the significant uncertainty surrounding the potential negative impact of U.S. tariffs on Japan’s economy. However, he acknowledged the strong results, indicating wage growth remains largely on track
• Russian air defense units have destroyed 227 Ukrainian drones in the last 24 hours, Russia’s Defense Ministry said on Monday. Reuters could not independently verify the reports.

• FedEx (FDX) upgraded to Buy from Hold at Jefferies with a price target of $275, down from $300 after earnings.
• Japan’s crude steel output fell 8.5 % in February from a year earlier for a 12th straight monthly decline; output, which is not seasonally adjusted, dropped to 6.4 million metric tons, the lowest monthly figure since July 2020, the Japan Iron and Steel Federation said. It was also down 5.7% from January.

• Bitcoin prices rise 3% early to just under $88,000 as Bloomberg reported Crypto companies return to India, hope restrictions will lessen (watch Bitcoin miners)
• Fifth Third Bancorp (FITB) files for mixed shelf offering; size not disclosed late Friday.
• The IRS braces for $500B drop in revenue as taxpayers skip filings in wake of DOGE cuts at agency according to reports.

• TOMS Capital Investment has amassed a stake in Kenvue (KVUE) and is pushing for changes at the company, Bloomberg reported this weekend https://tinyurl.com/mpu8w96t
• Genetic testing firm 23andMe (ME) said on Sunday it filed for filed for Chapter 11 bankruptcy protection in the U.S. to help the $50 million company sell itself and that co-founder and CEO Anne Wojcicki had resigned after multiple failed takeover bids.

• Super Micro (SMCI) downgraded to Sell from Neutral at Goldman Sachs and cut tgt to $32 from $40.