PTJ's Call of the Day

TLDR

MARKET RECAP → Stocks dipped Tuesday as President Donald Trump’s uncertain remarks on trade talks tempered optimism for a tariff breakthrough. Investors also kept a close eye on the upcoming Federal Reserve policy decision.

PAUL TUDOR JONES PREDICTS 50% MARKET DECLINE → 📉 Paul Tudor Jones warns that President Trump's tariff policies, including a 145% duty on Chinese imports, represent the "largest tax increase since the 60s," likely leading to new stock market lows even if tariffs are halved.

FORD SUSPENDS 2025 GUIDANCE AMID TARIFF IMPACT → 📉 Ford (F) anticipates a $1.5 billion earnings hit from new tariffs, leading to the suspension of its 2025 financial outlook and a 64% drop in Q1 net income.

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TODAY’S TOP NEWS

Ford Suspends 2025 Guidance Amid Tariff Impact

Tariffs Slash Profit Outlook: 📉 Ford (F) expects a $1.5 billion reduction in 2025 earnings due to new U.S. tariffs, prompting the suspension of its full-year financial guidance. The company had previously projected adjusted earnings between $7 billion and $8.5 billion.

Q1 Earnings Decline: 📊 In the first quarter, Ford's net income dropped 64% year-over-year to $471 million, with revenue falling 5% to $40.7 billion. Adjusted pre-tax earnings stood at $1 billion, down from $2.8 billion the previous year.

Mitigation Efforts and Market Response: 🔧 The company aims to offset $1 billion of the $2.5 billion in expected tariff-related costs through strategic measures. Despite these efforts, Ford's stock declined approximately 2.6% in premarket trading following the announcement.

CashTag Mentions: Ford ($F ( ▲ 2.66% ))

TODAY’S TOP NEWS

Paul Tudor Jones Predicts Market Decline Despite Tariff Reductions

Source: DALL·E

Tariffs as a Major Economic Burden: 📉 Billionaire hedge fund manager Paul Tudor Jones warns that President Trump's tariff policies, including a 145% duty on Chinese imports, represent the "largest tax increase since the 60s," likely leading to new stock market lows even if tariffs are halved.

Federal Reserve's Stance Adds Pressure: 🏦 Jones criticizes the Federal Reserve's reluctance to cut interest rates amid economic slowdown, suggesting that both the tariffs and the Fed's inaction are detrimental to market performance.

Market Volatility Reflects Investor Concerns: 📊 The stock market has experienced significant declines, with major indices falling over 10% in two days following the announcement of new tariffs, underscoring investor anxiety over trade policies and potential recession risks.

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Mattel CEO says toy manufacturing won’t come to America, but price hikes will (CNBC)

Palantir falls 14% as analysts raise international growth concerns (CNBC)

Prices are falling on some purchases. ‘Enjoy,’ economist says: ‘They’re not here to stay’ (CNBC)

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