Trump Imposes 25% Tariff on Foreign Car Imports
President Trump has announced a 25% tariff on all foreign-made car imports, aiming to boost domestic manufacturing and generate $100 billion in revenue. The policy targets American consumers to buy domestically-produced vehicles and secure jobs in the automotive sector. This move has sparked global backlash, with Canadian Prime Minister Mark Carney calling it a “direct attack” on Canadian workers, and European Commission President Ursula von der Leyen warning of the potential harm to innovation and employment across both continents. In response, Trump threatened further tariffs on Canada and the EU if they act against U.S. interests.
Automakers are reacting differently to the tariffs. General Motors (GM), heavily reliant on Mexican production, faces the most significant impact. Ford, while less affected due to U.S.-based assembly, could see costs rise from imported engines. Tesla, primarily producing domestically, is least vulnerable, with its stock holding steady. Stellantis, with a diverse manufacturing base, also appears less exposed. The situation remains fluid, with global trade, consumer prices, and supply chains at stake
Steady Jobless Claims and Upward GDP Revision Signal Resilience
Initial jobless claims for the week came in-line with expectations and remained steady at a seasonally adjusted 224,000, aligning with analyst expectations and reflecting ongoing employee retention. This consistency in jobless claims indicates a robust labor market with low levels of layoffs. Additionally, in the final revision of 4th quarter GDP the U.S. economy grew at an annual rate of 2.4% in the fourth quarter of 2024, driven by a 4% increase in consumer spending. This 2.4% number was slightly higher than the 2.3% expected. This upward revision from previous estimates underscores the economy’s resilience and suggests that current economic data do not point toward recessionary pressures.
AMD Slips as Jefferies Downgrades Stock Amid AI Concern
Advanced Micro Devices (AMD) experienced a 3% decline in its stock price following a downgrade from Jefferies, which shifted its rating from “Buy” to “Hold.” Analysts expressed concerns over AMD’s limited progress in the artificial intelligence (AI) sector, particularly in comparison to competitors like Nvidia. Jefferies highlighted that AMD’s MI300 AI chips lag behind Nvidia’s Hopper GPUs in performance, with the gap expected to widen as Nvidia introduces more advanced processors. Additionally, AMD’s projections of $10 billion in AI-related revenue by 2026 and $12 billion by 2027 fall short of Wall Street’s expectations. The downgrade also reflects apprehensions about increasing competition from Intel, which may soon launch competitive chips under its new CEO, potentially challenging AMD’s market position.
Notable Upgrades and Downgrades Today
Several notable analyst actions were observed across various industries. Bank of America reinstated coverage of Roku (ROKU) with a “Buy” rating and raised the price target from $90 to $120, reflecting optimism about Roku’s strategic growth and monetization enhancements. This positive outlook is bolstered by Roku’s substantial user base, having surpassed 90 million active accounts, positioning the company favorably for its next phase of monetization.
In the fast-food industry, KeyBanc Capital Markets increased its price target for McDonald’s (MCD) from $320 to $335, maintaining an “Overweight” rating. Similarly, Morgan Stanley raised its price target on McDonald’s to $340 from $336, reiterating an “Overweight” rating. These adjustments underscore analysts’ confidence in McDonald’s resilience amid economic uncertainties, highlighting the company’s strong global presence and ability to perform well during economic slowdowns.
In the consumer goods sector, Barclays raised its price target on Procter & Gamble (PG) to $165 from $159, maintaining a “Hold” rating, and slightly increased its price target on Coca-Cola (KO) to $74 while keeping a “Buy” rating. These companies, known for steady growth and reliable dividends, are often viewed as stable investments during economic downturns.
OpenAI’s Explosive Revenue Growth: Projecting $12.7 Billion in 2025
OpenAI is projecting a dramatic surge in revenue for 2025, estimating an impressive $12.7 billion, which represents more than a threefold increase from its 2024 revenue. This growth is primarily driven by the massive popularity and increasing use of its flagship product, ChatGPT, alongside other AI solutions offered by the company. The revenue surge places OpenAI in a competitive position, nearing the scale of its principal investor, Microsoft, which has established a dominant presence in the artificial intelligence space. The rapid growth of OpenAI reflects the booming generative AI market, where the company continues to innovate and expand its offerings, despite significant investments in infrastructure and talent. Analysts note that OpenAI’s potential to increase its revenue so dramatically underscores the immense demand for AI tools in industries ranging from business automation to content creation.
What’s Coming Up at Tackle Trading?
The Trader’s Lounge will be held at 1:00 PM EST today as we hold another Macro Monday edition of the lounge. Come start your trading week off right!
Cash Flow Vikings Trading Lab will begin at 7:00 PM EST tonight. Coach Mark will lead his Vikings though the difference between a bearish mindset and a bear market mindset!
The Cash Flow Club will begin at 8:30 PM EST tonight. Coach Gino will do what he does best…teach cash flow strategies!
Tesla (TSLA)
Seemingly in the news every day, Tesla is battling hard to reclaim the 200-day moving average. There are many stocks and areas of the market that are in similar technical battles. There is some separation of quality of patterns at these technical inflection points making this a true traders market going forward.
