Daily US Equity Opening News - Global risk-off trade continues as China responds with 34% tariffs on all US goods

TODAY'S AGENDA:

• 
  DAY AHEAD: Fed Chair Powell will be delivering remarks at a business journalism conference (at 16:25BST/11:25EDT; there will be a text and Q&A); we will also hear from the Fed's Barr on AI (voter; there will be a text and Q&A) and the Fed's Waller (voter; no text, but there will be a Q&A) on payments in wake of the data's release. In the afternoon, Baker Hughes will release its weekly rig count data. On today's CRA slate, Moody's is set to potentially review the EU's sovereign rating (currently AAA).


• 
  BROKER MOVES: GPC upgraded at Evercore; GS downgraded at Daiwa. For the full list, please click here.
  


• 
  MAJOR MORNING MOVES RECAP: China stocks, Mag7, BAM, ABBV, INTC/TSM, GS, BP. Sectors and Companies broadly hit by tariffs. To see the full list, please click here.
  

EQUITY NEWS:

• 
  US Stocks - UBS Global Wealth Management downgraded US equities to neutral, citing prolonged market volatility from reciprocal tariffs and their impact on global growth. The firm also lowered its year-end target for the S&P 500 Index to 5,800 from 6,400, reflecting lower earnings estimates and valuation. Meanwhile, investor Bill Gross warned potential dip-buyers to stay cautious as escalating tariff concerns continue to weigh on US stocks; Gross described Thursday's selloff as a "deep market event" and added that there is no resolution in sight for the turmoil.

MACRO

• 
  China tariffs - China announced additional tariff measures on US goods; to impose tariffs of 34% on all US goods and to impose additional tariffs on some US goods from April 10th. Chinese Commerce Ministry has added 16 US entities to the export control list; Added 11 US entities to the "unreliable" entity list. Has announced restrictions on some rare earth items. While China filed WTO lawsuit against the US over reciprocal tariffs, according to Chinese state media.


• 
  US Economy - JPMorgan raised its global recession risk to 60% from 40%, citing the economic impact of the US tariffs imposed by the Trump administration. It described the tariffs as the largest tax hike on US households and businesses since 1968, potentially pushing both the US and global economies into recession. Meanwhile, Citadel Securities warned that US inflation could rise to 4.5% Y/Y if President Trump's tariffs remain in place; core CPI may also experience continued upward pressure over the next 12-18 months, with aggressive inflation scenarios priced into the market.


• 
  US Tariffs - President Trump expressed openness to reducing tariffs if other nations could present "phenomenal" offers, despite defending his tariff strategy amidst stock market volatility. Trump believes the economic turbulence will subside, noting that falling interest rates were a positive outcome of his policies.

TECH

• 
  Intel (INTC), TSMC (TSM) - Intel and TSMC have reached a preliminary agreement to form a JV operating Intel’s factories, with TSMC taking a 20% stake, The Information reports. The US government encouraged the deal to address Intel’s struggles.


• 
  ByteDance, AppLovin (APP) - AppLovin has submitted a preliminary bid for TikTok’s assets outside China ahead of the April 5th deadline. Amazon (AMZN) and a consortium led by OnlyFans founder Tim Stokely have also entered the bidding race. The White House is heavily involved in deal talks, and Blackstone (BX) is in discussions to join a ByteDance shareholder bid too. Fox News reports that the White House is planning to announce a TikTok deal on Friday morning, including two executive orders; the deal may involve Chinese ownership of the algorithm, leased to a new US entity, with potential minority ownership.


• 
  Samsung (SSNLF) - Samsung Electronics likely experienced a more than 20% drop in Q1 operating profit, driven by losses in its foundry business and delays in developing artificial intelligence memory chips, Bloomberg reports. US export restrictions also impacted semiconductor shipments to China, contributing to declines in DRAM chip shipments and average selling prices.


• 
  Twilio (TWLO) - Said there is no evidence to suggest a breach of Twilio or SendGrid, following a hacker's claim of responsibility. After reviewing data, Twilio confirmed that none of the data appeared to originate from SendGrid.


• 
  Five9 (FIVN) - Expects Q1 results to align with or exceed prior guidance for revenue, GAAP net loss per share, and adj. net income per share. Co. has approved a 4% workforce reduction to focus on strategic investments, with estimated costs of USD 7-9mln in cash, and USD 1.0-1.5mln in non-cash expenses.


• 
  Cognizant Technology (CTSH) - A federal judge agreed to let the DoJ end its prosecution of two former Cognizant Technology Solutions executives, the first time the department publicly abandoned a foreign bribery case since President Trump halted enforcement of a key anti-bribery law.


• 
  DocuSign (DOCU) - CEO Allan Thygesen sold 40K shares on April 1st for a total USD 3.28mln.


• 
  Palantir (PLTR) - Director Alexander Moore sold 20K shares on April 1st for a total USD 1.68mln.

CONSUMER DISCRETIONARY

• 
  Capri (CPRI), Prada SpA (PRDSY) - Prada is nearing a EUR 1.5bn deal to acquire Versace and Jimmy Choo from Capri, WWD reported on Thursday. However, Trump's new tariffs are threatening global supply chains and shaking markets, and the deal’s fate remains uncertain amid trade war concerns, WWD added.


• 
  Nissan (NSANY) - Paused new orders for the QX50 and QX55 SUVs built in Mexico, citing the impact of US President Trump's tariffs on car imports. Co. also reversed plans to cut output of its Rogue model at its Tennessee plant as part of a broader restructuring effort.


• 
  Genuine Parts (GPC) - Upgraded to 'Outperform' from 'In Line' at Evercore ISI. The firm views Genuine Parts as one of the "better insulated companies" in its coverage from a tariff perspective. It believes much of the risk associated with a "choppy" low-income consumer and tariffs is baked into the shares.


• 
  Airbnb (ABNB) - CEO Brian Chesky sold 38.5K shares on April 1st for a total USD 4.63mln.


• 
  eBay (EBAY) - CFO Stephen Priest sold 28.1K shares on April 1st for a total USD 1.9mln.


• 
  GameStop (GME) - CEO Ryan Cohen buys 500k shares on April 3rd at USD 21.55/shr.


• 
  Guess' (GES) - Appointed Alberto Toni as its new CFO, effective after the filing of its next Quarterly Report, expected by mid-June. Toni, currently CFO at Flos B&B Italia Group, will succeed Dennis Secor, who will remain with the company as EVP until September 2025. Guess also preannounced its Q4 EPS at 1.48 (exp. 1.38), and Q4 revenue of USD 932.3mln (exp. 907.8mln). Sees Q1 EPS between -0.74 and -0.65 (exp. -0.23), and sees Q1 revenue up 5.8-7.5%; sees FY26 EPS between 1.32-1.76 (exp. 2.02), and FY26 revenue at USD 3.12-3.19bln (exp. 3.04bln).

ENERGY

• 
  Colonial Enterprises, Brookfield (BAM), Shell (SHEL) - Brookfield Infrastructure Partners is set to acquire Colonial Pipeline, the largest US fuel transportation system, in a deal valued at approx. USD 9bln including debt. The acquisition includes all Colonial Enterprises assets, with the deal expected to close in H2 2025. Shell will sell its stake in Colonial to a Brookfield subsidiary for USD 1.45bln as part of the transaction.


• 
  BP (BP) - BP Chairman Helge Lund has announced plans to step down "in due course," following pressure from climate activists, who have called for his removal at the upcoming AGM.


• 
  ExxonMobil (XOM) - Expects a USD 2.7bln sequential profit gain, driven by higher oil and natural gas prices, along with stronger refining and trading results. The biggest contributor was fuel manufacturing, which saw a USD 700mln increase in margins for Q4 2024, according to a regulatory filing. ExxonMobil expects Q1 upstream earnings impact of USD 0.0–0.4bn from gas and liquids price changes vs Q4. Energy products to be hit by between USD -0.3bln and -0.7bln, chemicals by between USD -0.1bln and 0.1bln, and specialty products by between USD -0.3bln and -0.1bln due to industry margin changes.


• 
  Phillips 66 (PSX) - Elliott Investment Management, which holds a stake worth over USD 2.5bln in Phillips 66, has called for urgent change on the company’s Board to address long-term underperformance and poor governance. A shareholder meeting is scheduled for May 21st.


• 
  APA Corporation (APA) - Director Chansoo Joung purchased 75k shares on April 3rd at USD 18.2482/shr.

HEALTHCARE

• 
  AbbVie (ABBV) - Lowered its 2025 adj. profit forecast to between USD 11.99–12.19/shr (prev. saw 12.12–12.32; exp. USD 12.30) due to USD 248mln in acquisition costs. Q1 adj. EPS guidance is seen between 2.34–2.38 (exp. 2.51). The company acquired Cerevel, ImmunoGen, and Aliada for over USD 20bn in 2024.


• 
  AstraZeneca (AZN) - Engertu has been approved in the EU for post-ET breast cancer; demonstrates superiority over chemotherapy in the DESTINY-Breast06 trial with a 38% reduction in the risk of disease progression or death.


• 
  Johnson & Johnson (JNJ) - Tremfya phase 3b study achieves primary and secondary endpoints; Tremfya safety profile consistent with no new safety signals. Tremfya shows less structural damage progression at week 24. Tremfya is the first and only IL-23 inhibitor to significantly reduce both the signs and symptoms and the progression of structural damage in adults living with active psoriatic arthritis.


• 
  Amgen (AMGN) - The FDA has approved Amgen's Uplizna as the first treatment for immunoglobulin G4-related disease. Initially approved in 2020 for a different condition, Uplizna received Breakthrough Therapy designation to fast-track its approval for IgG4-RD.


• 
  Gerresheimer AG (GRRMY), KKR & Co. (KKR) - KKR & Co. has exited the consortium seeking to acquire Gerresheimer AG. The private equity firm had previously partnered with Warburg Pincus, but the latter is still exploring options to pursue the deal independently.


• 
  Sangamo Therapeutics (SGMO), Eli Lilly (LLY) - Sangamo Therapeutics has signed a licence agreement with Eli Lilly, granting exclusive rights to its STAC-BBB capsid for CNS disease treatments. The deal includes an USD 18mln upfront fee, up to USD 1.4bln in milestone payments, and tiered royalties, with Sangamo handling technology transfer. Sangamo shares rose by over 50% in extended trading.


• 
  GSK (GSK), Pfizer (PFE) - GSK and rival Pfizer have agreed to end a lawsuit that alleged Pfizer's respiratory syncytial virus (RSV) vaccine Abrysvo violated GSK's patent rights in its competing RSV shot Arexvy, according to a Thursday filing in Delaware federal court.

MATERIALS

• 
  DuPont (DD) - China probes DuPont China on alleged anti-monopoly violation, according to Bloomberg.


• 
  Iron Ore Prices - Goldman Sachs has revised its outlook on iron ore, forecasting that prices will fall below USD 90/ton by the end of 2025. The downgrade follows President Trump's new tariffs, which are expected to reduce Chinese steel exports, particularly to countries like Vietnam, and contribute to a slowdown in global growth, impacting iron ore demand.


• 
  Copper Prices - Sees an 8-10% fall in copper prices in the coming weeks, driven by the Trump administration's new tariffs. The tariffs are expected to reduce global demand for commodities, with copper prices already falling as traders anticipate additional import levies on the metal.


• 
  Rio Tinto (RIO) - Increased its Australian supplier spending to AUD 17.7bln in 2024, up 9.9% Y/Y. The company spent over AUD 926mln with 182 Indigenous businesses (+27% Y/Y), and AUD 671mln with Traditional Owner businesses. Local supplier spending rose +14.8% Y/Y to AUD 1.3bln.

FINANCIALS

• 
  Blackstone (BX) - Considering selling two AirTrunk data centres in Australia, following its acquisition of the company in December, Bloomberg reports. The firm has held talks with advisers regarding the potential divestitures, with each data centre possibly valued at around USD 1.3bln.


• 
  Morgan Stanley (MS) - Raising about USD 684mln for a Japan-focused real estate fund, according to Reuters citing two people familiar with the matter.


• 
  Banco Santander (SAN) - Affirmed all of its FY25 targets, and sees continued growth in Q1; expects CET1 rising to 12.9% in Q1.


• 
  Riot Platforms (RIOT) - Reported March 2025 Bitcoin production of 533 BTC, up +25% Y/Y. Bitcoin held increased +126% to 19,223, and hash rate rose to 33.7 EH/s. The company also announced progress on its Corsicana Facility for AI/HPC use, following a feasibility study.

CONSUMER STAPLES

• 
  Seven & i (SVNDY) - Seven & i said that no shareholder proposals were submitted for its upcoming annual meeting in May, despite prior calls for merger talks with Alimentation Couche-Tard. The meeting will focus on the approval of internal matters, including the appointment of Stephen Dacus as CEO and potential board replacements.


• 
  Chicken- China has suspended chicken product imports from two American producers as part of retaliatory measures against the US after President Donald Trump announced new tariffs, Bloomberg reports.

INDUSTRIALS

• 
  Boeing (BA), United Airlines (UAL) - The FAA is to investigate after a United Airlines Boeing 737 flight from Key West to Newark diverted to Washington Dulles due to reported light smoke from a galley oven. The aircraft landed safely, and all passengers and crew deplaned normally.


• 
  Sodexo (SDXAY) - Saw a 3.5% rise in organic revenue in H1, confirming earlier estimates; however, growth in North America slowed significantly, partly due to weak performance in the education and healthcare sectors.

COMMUNICATIONS

• 
  Twitter (formerly X) - The EU plans to fine Elon Musk’s X over USD 1bln for violating its Digital Services Act, citing failures in policing disinformation and transparency, NYT reports. A broader probe could bring further penalties. X calls it censorship, while Musk may challenge it in court. The case risks escalating US-EU trade tensions.


• 
  Disney (DIS) - Paused the development of its live-action "Tangled" film indefinitely, according to Variety. The project, with director Michael Gracey and screenwriter Jennifer Kaytin Robinson, was impacted by the underperformance of Disney's recent live-action "Snow White" film at the box office.

OTHER MACRO

• 
  US Treasuries - Investors are said to be concerned that foreign buyers may reduce their US Treasury purchases in response to President Trump's sweeping tariffs, Bloomberg reports. China and Japan, the largest foreign holders of US debt, are under scrutiny as their holdings have decreased in recent years, potentially exacerbated by the ongoing trade tensions, especially with Asia.


• 
  US-Mexico - Mexico's Deputy Economy Minister for Trade suggested that discussions regarding the USMCA could be expedited due to the latest round of US tariffs. Mexico plans to request continued duty exemptions for exports, particularly in the auto sector, under the terms of the deal.


• 
  US-Iran - US President Trump expressed confidence that Iran is open to direct talks regarding its nuclear programme, following Tehran's indication of willingness to engage via intermediaries. Trump emphasised the preference for direct discussions, stating, "forget about letters, I think they want to have direct talks," BBG reports.


• 
  US-Russia - US special envoy Steve Witkoff and Russian negotiator Kirill Dmitriev met in Washington this week, following President Trump’s frustration with Putin over stalled ceasefire negotiations in Ukraine. The US is awaiting Dmitriev's report to Putin before progressing further in talks.


• 
  US-UK - US officials have informed the UK that discussions on reducing tariffs below 10% will continue, but President Trump may set this figure as a permanent baseline for all countries. UK PM Starmer aims to reduce or eliminate the 10% tariff on UK goods, with talks expected to progress in the coming weeks.

04 Apr 2025 - 13:46- EquitiesData- Source: Newsquawk