Day: April 22, 2025

Wall Street Gains on Earnings and Easing U.S.-China Tensions

Posted on by Ignacio Teson

A broad rally lifted all three major U.S. stock indexes by more than 2%, with 3M (+8.12%) standing out in the Dow Jones after beating first-quarter earnings expectations.

Market operators seemed happy on Tuesday.

Wall Street’s main indexes rebounded sharply on Tuesday. Following a session of losses, stocks climbed on the back of strong quarterly earnings reports and signs of easing trade tensions between the United States and China.

The Dow Jones Industrial Average, which tracks 30 blue-chip companies, jumped 2.66% to 39,186.98 points. The S&P 500, representing the most valuable U.S. firms, rose 2.51% to 5,287.76, while the tech-heavy Nasdaq Composite advanced 2.71% to 16,300.42.

[[SPX-graph]]

The broad-based rally helped push all three indexes over the 2% mark, as investors brushed off criticism from President Donald Trump directed at Federal Reserve Chair Jerome Powell, who is widely seen as a stabilizing force for the markets.

Concerns Ease

Minneapolis Fed President Neel Kashkari emphasized the importance of central bank independence, saying it is essential for strong economic outcomes. A day earlier, Trump’s demand for a rate cut had sparked concerns over the Fed’s autonomy.

White House Press Secretary Karoline Leavitt said talks with the Chinese government are progressing, while Treasury Secretary Scott Bessent called the ongoing standoff with China unsustainable and expressed hope for de-escalation, according to Reuters.

Trump’s actions have rattled not only investors but also global institutions. Trade-related uncertainty led the International Monetary Fund to lower its forecast for U.S. economic growth to 1.8% in 2025. However, the latest developments helped ease market fears.

Earnings Season

Earnings season continues to drive momentum. 3M surged 8.12% after beating first-quarter profit expectations and reaffirming its full-year earnings guidance of $7.60 to $7.90 per share, despite anticipating some impact from tariffs.

Among the “Magnificent Seven” tech giants, Tesla rose 4.60% ahead of its earnings release. The company reported earnings of $0.27 per share, below the expected $0.44, on revenue of $19.34 billion—short of the $21.43 billion forecast. Despite the miss, shares rose on more optimistic forward guidance.

So far, 82 S&P 500 companies have reported results, with 73% exceeding expectations, according to LSEG. Analysts now forecast quarterly earnings growth for the S&P 500 at 8.1%, down from the 12.2% projected earlier this year.

DOGE: Elon Musk plans Spending Less Time in U.S Government from May

Posted on by Olumide Adesina

Tesla’s Elon Musk started his company’s earnings call on Tuesday by mentioning how his service as head of the “Department of Government Efficiency” in President Trump’s administration will fall significantly starting in May.

A $5,000 bonus would be welcomed by most US households

Musk stated he would keep supporting the president through DOGE despite seeing his company’s stock drop over 40% this year,   “to ensure that the waste and fraud  we stop does not come roaring back.”

It was previously reported that Musk spent nearly $300 million as part of the 2024 campaign to get Trump reelected, after which he created DOGE to downsize and limit the federal government’s powers.

Musk has repeatedly insisted he would continue spending “a day or two per week” on these issues “for as long as the president would like me to do so.”

Musk’s remarks came after the company reported lackluster first-quarter results, including a 20% year-over-year decline in automotive revenue.

To make matters worse, the company faces fierce international competition from China, an aging fleet of electric vehicles, and has recently started facing protests and brand damage in the US and Europe due to Musk’s links to Trump and support for the far-right AfD party in Germany.

President Donald Trump Says “no intention” to Fire Fed Chief

Posted on by Olumide Adesina

President Donald Trump said he has “no intention” of firing Federal Reserve Chair Jerome Powell before his term as head of the U.S. central bank ends next year.

Fed Chairman Powell could be in danger of losing his position.

“None whatsoever,” Trump said in the Oval Office when asked to clarify that he did not seek Powell’s removal. “Never did.”

The comment represents a dramatic shift for Trump, who has recently ramped up his rhetoric against Powell and declined to rule out the possibility of firing him.

Trump, who has heaped pressure on the Fed chair to cut interest rates in hopes of goosing economic growth, said last week of Powell, “If I want him out of there, he’ll be out real fast.”

White House economic adviser Kevin Hassett said Friday that Trump and his aides were actively studying the possibility of firing Powell.
Powell, whom Trump appointed during his first term as president, will serve as Fed chair until May 2026.

He stated that the president cannot remove him under the law.

Trump fired off his most incendiary criticism of Powell, calling him a “major loser” and urging him to lower rates.

When asked on Tuesday afternoon about the prospect of firing Powell, Trump said, “The press runs away with things.”

“No, I have no intention of firing him,” Trump told reporters after a ceremony swearing in Paul Atkins as chairman of the U.S. Securities and Exchange Commission.

UBA, Access, Zenith, Nigerian Breweries lift Nigerian Stock Market

Posted on by Olumide Adesina

The Nigerian major stock market began the week on a high note on Tuesday after the Easter vacation, building on gains from the previous week. In addition to other stocks like Nigerian Breweries, UAC Nigeria, TRANSCORP, investors once again showed interest in banking stocks like UBA, Access, Zenith, GT, and Stanbic

 

The NGX All index closed the day higher at 104,739.61 index points. Investors earned N318 billion as the market value increased to N65.82 trillion, resulting in a 1.76% year-to-date return.

Consequently, the Consumer goods, Insurance, Banking, and Services sectors appreciated. The market breadth index was positive, with 42 gainers and 21 losers. Today’s gainers were led by INTBREW, NB PLC(+9.94%), while the top loser was INTENEGINS PLC(-9.46%).

Total volume decreased by -5% to 352 million units worth N7.19 billion. Access Holdings has the highest volume, with 38.6 million shares traded, and Zenith Bank had the highest value, N1.07 billion. The local bourse closed positively due to buying interest in the Banking, Insurance, Services, and Consumer goods sectors

Nigerian Breweries is now up 24% this year after its shares rose more than 16% month-to-date in April, topping N39.

The company recently recorded a pre-tax profit of N69.9 billion for the first quarter that ended on March due to higher revenue and lower foreign currency losses, which rebounded from a loss of N65.5 billion in the same quarter of 2024.

Traders make $11.5 billion betting against Tesla

Posted on by Olumide Adesina

Investors who hold Tesla stocks have faced significant challenges over the past year, while short sellers have profited handsomely after wagering against the firm’s stock.

TSLA stock has formed a strong support zone as Tesla prepares to launch cheaper EV cars

Tesla’s short sellers made $11.5 billion this year. The stock has posted a 44% decline this year. The share price drop is as of Monday’s market close.

The electric vehicle company is also anticipating reporting a mild dip in yoy revenue, having already communicated a decrease in vehicle deliveries to 13 in the dash for the quarter.

The stock saw a dip around 4% on Tuesday in conjunction with the rest of the market, then bounced back when entering trade the day before the earnings report on July 30. With Tesla facing severe US and European backlash and protests, a Musk-backed AfD party advocating for Germany, it does not seem the company is getting much support.

Tesla shares plummeted 36% in the first quarter, their worst performance for any period since 2022, and have continued to drop in April, largely on concerns that President Trump’s sweeping tariffs on top trade partners will increase the cost of parts and materials crucial for EV production, including manufacturing equipment, automotive glass, printed circuit boards and battery cells.

Additionally, the company is lagging in the robotaxi sector, which is now dominated in the U.S. by Alphabet’s Waymo, and is having difficulty keeping up with its cheaper Chinese competitors. In June, Tesla plans to introduce its first autonomous ride-hailing service in Austin, Texas.

Among tech megacaps, Tesla has had the largest stock loss this year. Nvidia, down almost 28% as of Monday’s closing, is next in line. According to S3, the chipmaker has produced returns of $9.4 billion, making it the second-best profit generator for short sellers.

Tesla Earnings: Wall Street Watches the Magnificent Seven

Posted on by Ignacio Teson

In a critical year for Tesla, investors are looking to Elon Musk to refocus on the company and offer a clear vision for its future—key to easing uncertainty and halting brand erosion.

Musk’s Holdings are Standing Out in Difficult Times.

Both bullish and cautious investors agree: Tesla is at a turning point. The company’s Q1 earnings report, set to be released Tuesday after market close, could serve as a key inflection point. Beyond just current sales figures, the market is demanding clear signals about Tesla’s future—particularly regarding a more affordable EV and the long-anticipated launch of robotaxis.

Tension is already visible. Tesla shares dropped nearly 6% in premarket trading and are down more than 40% year-to-date—far worse than the S&P 500’s 10% decline. Once trading opened, Tesla stock rebounded nearly 7%, reflecting heightened volatility and investor uncertainty.

[[TSLA/USD-graph]]

CEO Elon Musk is under growing pressure following disappointing Q1 delivery numbers—even after Wall Street had already lowered its expectations. Investors aren’t just focused on metrics; they want a roadmap. Hopes rest on concrete timelines and product clarity. If Tesla’s “affordable EV” turns out to be just a stripped-down Model Y, the market reaction could be sharply negative.

Musk must now deliver—on both product and timing.

External Risks Add to Pressure

While Tesla may be somewhat shielded from new tariffs due to its U.S. production, higher consumer prices remain a concern. A broader demand slowdown, driven by protectionist policies and economic uncertainty, could hit the auto industry hard—including Tesla.

In this turbulent landscape, any indication that Musk is stepping back from his political ambitions to focus fully on Tesla brings temporary relief. A brief 5% rally on April 2 followed rumors of his withdrawal from Dogecoin promotion—but the deeper question lingers: how much brand damage is already irreversible?

Big Tech Braces for Volatile Q1 Earnings

As tech giants prepare to report Q1 results, one word dominates the narrative: uncertainty.

Donald Trump’s shifting tariff strategy has wreaked havoc on markets in April, triggering five notably volatile sessions on the Nasdaq. Investors are scrambling to assess how renewed protectionism might impact earnings for globally integrated companies.

Tariffs don’t just raise operating costs—they could also squeeze advertising budgets and dampen consumer spending due to higher prices and potential job losses. Corporate backlash has been strong, with tech stocks shedding trillions in market value and even former Trump allies, including Elon Musk, signaling discomfort.

In this high-stakes earnings season, clarity and confidence are in short supply—making Tesla’s Tuesday report one of the most closely watched events of the quarter.