Latest news with #AlexisKeenan
Yahoo
3 days ago
- Business
- Yahoo
US appeals court temporarily blocks pause on Trump tariffs
After a US trade court had deemed several of President Trump's wide-sweeping tariff policies illegal and paused them, a US appeals court quickly stepped in on Thursday and is now granting the import taxes to temporarily stay in effect. Yahoo Finance legal correspondent Alexis Keenan explains the order of events, court hierarchies, and the timeline for the Trump administration's legal filings after being issued an administrative stay until June 9. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. We've got breaking news now. A federal appeals court is pausing a US trade court ruling that blocked President Trump's global tariffs. Basically, tariffs are still in place for now is the bottom line. Senior legal reporter Alexis Keenan is here with more. So, all of the back and forth. Lot of back and forth back on. And and this is, is this a sooner finding than had been expected that the tariffs are going to be still in place for now? So, the federal circuit, it's an appellate court over the top of the International Trade Court. It can decide if it gets an application from the Trump administration, which it did, to put a temporary pause on what that lower court decided. So, this is the court stepping in here. This is a pelle court and reinstating these tariffs and saying it needs some time to look at the motions, look at briefings, look at the issues. Uh I don't know exactly where it's going to go from here, whether this is going to be an issue that will be decided at this stage at the appellate court level or whether the trial court, the the International Trade Court will be handling some of this. What the court said, this federal circuit court is that the request for an immediate administrative stay, they granted it to the extent they say that the judgments and the permanent injunctions entered by the court of International Trade are temporarily stayed until further notice. So the appeals court seeming here to put this pause into effect and they're asking the administration to give briefings to the court no later than June 9th. So that's the timeline that we have to work with right now. So you're kind of find a bouncing ball in the courts, Alexis, but correct me if I'm wrong. Doesn't Trump beyond that have plenty of tariff tools at his disposal? I mean, it's, you know, it's section 232, 122, 301. I mean, he has what sounds like just tremendous tariff authority and power here. Well, certainly the administration thinks so, but they chose to go with the act that they did, the emergency Act where Trump had said the administration had said that these national emergencies, immigration, drug trafficking, flows of illegal drugs into the United States, and so forth was a national emergency. And that didn't work at least at this lower court level. Now the legal experts I've been talking to in this area, they say it's anybody's guess what this appeals court might decide when the administration and the challengers come up before them. You know, maybe it'll go the other way. Maybe this International Emergency Act will be enough authority for a different court. Alexis, we will keep following it. Thank you so much. Yeah, bouncing around. Thanks.
Yahoo
4 days ago
- Business
- Yahoo
Stock market today: Dow, Nasdaq, S&P 500 rise as investors cheer Nvidia earnings, weigh tariff legal whiplash
US stocks moved higher on Thursday as markets assessed Nvidia's (NVDA) earnings report as well as more tariff uncertainty. In late afternoon trade, a federal appeals court allowed President Trump's sweeping tariffs to temporarily stay in effect, a day after the US Court of International Trade blocked their implementation after deeming the method used to enact them "unlawful." That means Trump's tariffs will remain in effect for now. The benchmark S&P 500 (^GSPC) and tech-heavy Nasdaq Composite (^IXIC) each climbed about 0.5%, while the Dow Jones Industrial Average (^DJI) was up around 0.3% amid debate over Trump's next move in trade policy. All three major averages had retreated from their highs of the day early in the session. Nvidia stock rallied over 3% after its first quarter revenue topped estimates. Investors appear to be looking past the AI chipmaker's warning that it expects to miss out on $8 billion in sales in the second quarter, thanks to US restrictions on exports to China. Overall, Nvidia's performance on Wednesday boosted hopes on Wall Street that Big Tech can weather Trump's far-reaching trade policy. Read more: The latest on Trump's tariffs Meanwhile, Best Buy (BBY) cut its full-year guidance citing economic uncertainty around those tariffs, sending its stock lower. Eyes are now on Costco's (COST) after-hours report, given the difficult position retailers find themselves in: Trump told Walmart (WMT) to "eat" price hikes associated with new duties following its latest results. On the economic front, filings for unemployment aid jumped more than expected last week. And in a slight upgrade from the initial reading, the Commerce Department said GDP shrank at a 0.2% annualized pace in the first quarter. A federal appeals court has temporarily reinstated President Trump's global tariffs by pausing a lower court ruling that had blocked them. The decision, which came sooner than expected, means the tariffs will remain in effect for now. The US Court of Appeals for the Federal Circuit, which oversees the International Trade Court, granted the Trump administration's request for a temporary administrative stay. This gives the court time to review legal arguments and filings. The administration must submit its briefings by June 9, after which the court will determine the next steps. As Yahoo Finance legal reporter Alexis Keenan noted, Trump has broad authority to impose tariffs through various legal channels, including Sections 232 and 301. The administration had chosen to justify the tariffs under an emergency act, citing concerns such as immigration and drug trafficking — an argument the lower court rejected. Legal experts say it's unclear how the appeals court will ultimately rule, as another court might interpret the emergency authority in a different way. Long-term Treasury yields have climbed in recent weeks, driven by growing concerns over the trajectory of US debt as President Trump's proposed tax legislation advances to the Senate after clearing the House. New concerns emerged late Wednesday after a Manhattan-based trade court struck down a wide swath of Trump's tariffs, adding to uncertainty around how the administration will manage the deficit. "The tariffs the court struck down were likely to raise nearly $200 billion on an annual basis," Goldman Sachs said in a note to clients late Wednesday. That's "roughly the amount the fiscal package would increase the deficit next year." Yields ticked higher in the immediate aftermath of the news before falling slightly on Thursday. In afternoon trade, 10-year (^TNX) hovered near 4.43% while the 30-year (^TYX) traded around 4.94%. As bond markets digest the latest policy whipsaw, one strategist says investors may be underestimating just how actively the administration is working behind the scenes to manage long-term borrowing costs. Tim High, senior rates strategist at BNP Paribas, described the Trump team as "bond vigilant — a counterweight to the so-called bond vigilantes in the market," suggesting the administration is acutely aware of the risks that higher yields and a rising term premium pose to fiscal stability. High pointed to previous comments from Treasury Secretary Scott Bessent, who emphasized the administration is more focused on 10-year yields than on short-term Federal Reserve policy. That matters, he said, because longer-term rates, especially the 10-year, have a bigger impact on the real economy, shaping consumer borrowing costs like mortgage rates. Read more here. President Trump's trade plans ran into a stumbling block this week when a court blocked a wide swath of his tariffs. But he could bounce back quickly even if the White House plans to appeal the defeat don't pan out. That's because Congress has been handing its tariff powers over to the executive branch for decades, with an array of other authorities at the ready, especially from two laws passed in 1962 and 1974m if Trump needs to reimplement things like his "Liberation Day" tariffs by different means. "It's a setback [but] it doesn't mean that the president can't find other means or authorities to try to implement this policies, and it's also just the first step in litigation," Greta Peisch, a former Biden administration trade general counsel, now at law firm Wiley Rein, noted in a Yahoo Finance appearance Thursday morning. Read more here. Federal Reserve Chair Jerome Powell met with President Trump at the White House today, according to a release from the central bank. "At the President's invitation, Chair Powell met with the President today at the White House to discuss economic developments including for growth, employment, and inflation," the release said. "Chair Powell did not discuss his expectations for monetary policy, except to stress that the path of policy will depend entirely on incoming economic information and what that means for the outlook." Trump, who had been badgering Powell to cut interest rates over the past several months via his social media platform Truth Social, has yet to post about the meeting. Read more here. A US trade court decision that put at least a temporary pause on many of President Trump's wide-ranging tariffs isn't cooling Wall Street's fears over policy uncertainty. "It is not clear that this is a catalyst for a sustained new risk-on [trade]," Barclays global chairman of research Ajay Rajadhyaksha wrote in a note to clients while pointing out that lower tariffs would mean less revenue back to the US government. That could cause Trump's new tax bill to push the US deficit higher if it went into effect, exacerbating the recent rise in bond yields and potentially weighing on the equity market. Stock futures soared overnight on the news, but the equity market rally cooled off quickly with the S&P 500 up just 0.2% in early afternoon trading. The administration has already appealed the decision and strategists like Rajadhyaksha have pointed out that this could merely delay Trump's tariff rollout, not eliminate it. "Investors were hoping that tariff negotiations would largely be ironed out in the next couple of months, leaving the Administration free to focus far more on growth-positive policy including deregulation," Rajadhyaksha wrote. "At least optically, that entire process is now pushed back a few months." Read more here. Crude oil prices retreated on Thursday amid a looming decision due this weekend over the possibility of increased production from OPEC+ in July. West Texas Intermediate (CL=F) futures fell 1% to hover above $61 per barrel. Brent crude (BZ=F), the international benchmark, also traded above $63 per barrel. The Organization of the Petroleum Exporting Countries and its allies (OPEC+) will decide this weekend whether to raise output in July following increases already set for May and June. Wall Street anticipates the group will vote in favor of increasing supply by 411,000 barrels per day. Yahoo Finance's Claire Boston reports: Read more here. Nvidia (NVDA) The AI chip giant was the No. 1 trending ticker on Yahoo Finance on Thursday after beating expectations on revenue, but falling short on adjusted earnings per share (EPS) due to the impact of the ban on shipments of its H20 units to China. The company also said it expects to miss out on roughly $8 billion in sales of H20s in the second quarter. e.l.f. Beauty (ELF) Shares of the cosmetics company rose more than 20% on Thursday on the heels its quarterly results and $1 billion acquisition announcement of Rhode, a brand founded by Hailey Bieber. Best Buy (BBY) Best Buy shares tanked more than 7% on Thursday after the retailer reported mixed earnings and cut guidance due to the Trump administration's tariffs. Same-store sales fell 0.7% year over year while revenue fell 0.9% to $8.77 billion, missing Wall Street estimates. Adjusted earnings per share slid 4% to $1.15, beating estimates of $1.09. Read more about Best Buy earnings here. US stocks rose on Thursday in the wake of AI chip giant Nvidia's (NVDA) earnings report and a court ruling that threatened President Trump's tariff policy. The S&P 500 (^GSPC) gained about 0.8%. The Dow Jones Industrial Average (^DJI) moved up roughly 0.3%, while the Nasdaq Composite (^IXIC) climbed 1.4%. Tech stocks led the gains, with Nvidia jumping more than 5% following its quarterly report. Its earnings topped estimates, but the company warned of a second quarter revenue impact due to US restrictions on exports to China. Other "Magnificent Seven" stocks also rose, including Amazon (AMZN). Shares in Tesla (TSLA) put on 2% after CEO Elon Musk teased a June rollout of the EV maker's robotaxis and confirmed he was leaving his role in the Trump administration. On Wednesday evening, a panel of judges at the US Court of International Trade blocked Trump's global tariffs on the grounds that the president lacked the authority to issue them using emergency powers. The decision will likely be appealed by the Trump administration in federal court. Weekly filings for unemployment benefits moved higher last week while the number of Americans filing for unemployment insurance on an ongoing basis once again hit their highest level since November 2021 as the US labor market continues to show signs of slowing. Data from the Department of Labor released Thursday morning showed 240,000 initial jobless claims were filed in the week ending May 24, up from 226,000 the week prior and above economists' expectations for 230,000. Meanwhile, 1.919 million continuing claims were filed, up from 1.893 million the week prior and the highest level seen since November 2021. Economists see an increase in continuing claims as a sign that those out of work are taking longer to find new jobs. Tesla (TSLA) stock rose 2% in premarket trading after CEO Elon Musk teased the rollout of its robotaxis and confirmed he was leaving his role in government. Musk said the EV maker has been testing driverless Model Y cars in Austin, Texas, for the past several days. Previously, he said Tesla would begin testing by the end of June, per Reuters. The rollout is also expected to feature 10 to 20 cars to start, based on past comments. "A month ahead of schedule," Musk wrote on X. Also lifting shares was a confirmation from a White House official that Musk will no longer serve on the Department of Government Efficiency (DOGE). Musk's involvement in government was controversial for Tesla shareholders, many of whom felt his attention had become too divided. 'Back to spending 24/7 at work and sleeping in conference/server/factory rooms,' Musk said on Tuesday, adding that he 'must be super focused on 𝕏/xAI and Tesla (plus Starship launch next week), as we have critical technologies rolling out.' Read more here about Tesla's driverless cars and Musk's return to the office. Bloomberg News reports: Read more here. Salesforce (CRM) defied conventional thinking by raising its full-year guidance in the face of tariff headwinds late Wednesday, as it posted first quarter profit and revenue beats. But the software giant's stock is trading pretty much flat in Thursday's pre-market — a sign that analysts aren't that jazzed by its results. Yahoo Finance's Brian Sozzi reports on how Wall Street is reacting: Read more from Wall Street here. As a US trade court ruling upends President Trump's trade strategy, Yahoo Finance's Josh Schafer points out the rewards that awaited investors who snapped up tariff-bruised stocks. Read more here. Economic data: First quarter GDP; First quarter personal consumption; Initial jobless claims, (week ended May 24); Pending home sales (April) Earnings: American Eagle (AEO), Best Buy (BBY), Burlington Stores (BURL), Build-a-Bear Workshop (BBW), Costco (COST), Dell (DELL), Foot Locker (FL), Hormel Foods (HRL), Gap (GAP), Marvell Technology (MRVL), Ulta (ULTA), Zscaler (ZS) The United States Court of International Trade has ruled Trump tariffs "unlawful." Meanwhile, Nvidia earnings lifted Wall Street, even as the chipmaker flagged risks relating to AI chip controls. Here are some of the biggest stories you may have missed overnight and early this morning: Trump's tariffs in limbo after trade court's stunning rebuke Nvidia pops, CEO warns US chip curbs boost China rivals Court rules Trump doesn't have authority to impose tariffs Buying the dip hasn't paid off this much in 30 years Nvidia gets a pass after earnings miss: What Wall Street is saying Real winner in GameStop's bitcoin pivot is Strategy Goldman: Trump can offset tariff ruling with other tools Microsoft shares go from laggard to leader as AI growth improves Yahoo Finance's Brian Sozzi reports: Read more here on what Wall Street is saying about Nvidia's quarter. Shares in HP Inc. (HPQ) fell by 8% on Thursday in premarket trading after the company's profit outlook missed estimates and it cut the annual earnings forecast, citing a weaker economy and continuing costs from US tariffs on goods from China. Bloomberg News reports: Read more here. Markets may be celebrating the latest turn in the tariffs saga, but the US trade court's block isn't definitive — and that means there's still cause for concern, some analysts say. Reuters reports: Read more here. A landmark decision by the US Court of International Trade has deemed many of President Trump's tariffs 'unlawful' and sent markets into a global upturn. Reuters reports: Read more here. A federal appeals court has temporarily reinstated President Trump's global tariffs by pausing a lower court ruling that had blocked them. The decision, which came sooner than expected, means the tariffs will remain in effect for now. The US Court of Appeals for the Federal Circuit, which oversees the International Trade Court, granted the Trump administration's request for a temporary administrative stay. This gives the court time to review legal arguments and filings. The administration must submit its briefings by June 9, after which the court will determine the next steps. As Yahoo Finance legal reporter Alexis Keenan noted, Trump has broad authority to impose tariffs through various legal channels, including Sections 232 and 301. The administration had chosen to justify the tariffs under an emergency act, citing concerns such as immigration and drug trafficking — an argument the lower court rejected. Legal experts say it's unclear how the appeals court will ultimately rule, as another court might interpret the emergency authority in a different way. Long-term Treasury yields have climbed in recent weeks, driven by growing concerns over the trajectory of US debt as President Trump's proposed tax legislation advances to the Senate after clearing the House. New concerns emerged late Wednesday after a Manhattan-based trade court struck down a wide swath of Trump's tariffs, adding to uncertainty around how the administration will manage the deficit. "The tariffs the court struck down were likely to raise nearly $200 billion on an annual basis," Goldman Sachs said in a note to clients late Wednesday. That's "roughly the amount the fiscal package would increase the deficit next year." Yields ticked higher in the immediate aftermath of the news before falling slightly on Thursday. In afternoon trade, 10-year (^TNX) hovered near 4.43% while the 30-year (^TYX) traded around 4.94%. As bond markets digest the latest policy whipsaw, one strategist says investors may be underestimating just how actively the administration is working behind the scenes to manage long-term borrowing costs. Tim High, senior rates strategist at BNP Paribas, described the Trump team as "bond vigilant — a counterweight to the so-called bond vigilantes in the market," suggesting the administration is acutely aware of the risks that higher yields and a rising term premium pose to fiscal stability. High pointed to previous comments from Treasury Secretary Scott Bessent, who emphasized the administration is more focused on 10-year yields than on short-term Federal Reserve policy. That matters, he said, because longer-term rates, especially the 10-year, have a bigger impact on the real economy, shaping consumer borrowing costs like mortgage rates. Read more here. President Trump's trade plans ran into a stumbling block this week when a court blocked a wide swath of his tariffs. But he could bounce back quickly even if the White House plans to appeal the defeat don't pan out. That's because Congress has been handing its tariff powers over to the executive branch for decades, with an array of other authorities at the ready, especially from two laws passed in 1962 and 1974m if Trump needs to reimplement things like his "Liberation Day" tariffs by different means. "It's a setback [but] it doesn't mean that the president can't find other means or authorities to try to implement this policies, and it's also just the first step in litigation," Greta Peisch, a former Biden administration trade general counsel, now at law firm Wiley Rein, noted in a Yahoo Finance appearance Thursday morning. Read more here. Federal Reserve Chair Jerome Powell met with President Trump at the White House today, according to a release from the central bank. "At the President's invitation, Chair Powell met with the President today at the White House to discuss economic developments including for growth, employment, and inflation," the release said. "Chair Powell did not discuss his expectations for monetary policy, except to stress that the path of policy will depend entirely on incoming economic information and what that means for the outlook." Trump, who had been badgering Powell to cut interest rates over the past several months via his social media platform Truth Social, has yet to post about the meeting. Read more here. A US trade court decision that put at least a temporary pause on many of President Trump's wide-ranging tariffs isn't cooling Wall Street's fears over policy uncertainty. "It is not clear that this is a catalyst for a sustained new risk-on [trade]," Barclays global chairman of research Ajay Rajadhyaksha wrote in a note to clients while pointing out that lower tariffs would mean less revenue back to the US government. That could cause Trump's new tax bill to push the US deficit higher if it went into effect, exacerbating the recent rise in bond yields and potentially weighing on the equity market. Stock futures soared overnight on the news, but the equity market rally cooled off quickly with the S&P 500 up just 0.2% in early afternoon trading. The administration has already appealed the decision and strategists like Rajadhyaksha have pointed out that this could merely delay Trump's tariff rollout, not eliminate it. "Investors were hoping that tariff negotiations would largely be ironed out in the next couple of months, leaving the Administration free to focus far more on growth-positive policy including deregulation," Rajadhyaksha wrote. "At least optically, that entire process is now pushed back a few months." Read more here. Crude oil prices retreated on Thursday amid a looming decision due this weekend over the possibility of increased production from OPEC+ in July. West Texas Intermediate (CL=F) futures fell 1% to hover above $61 per barrel. Brent crude (BZ=F), the international benchmark, also traded above $63 per barrel. The Organization of the Petroleum Exporting Countries and its allies (OPEC+) will decide this weekend whether to raise output in July following increases already set for May and June. Wall Street anticipates the group will vote in favor of increasing supply by 411,000 barrels per day. Yahoo Finance's Claire Boston reports: Read more here. Nvidia (NVDA) The AI chip giant was the No. 1 trending ticker on Yahoo Finance on Thursday after beating expectations on revenue, but falling short on adjusted earnings per share (EPS) due to the impact of the ban on shipments of its H20 units to China. The company also said it expects to miss out on roughly $8 billion in sales of H20s in the second quarter. e.l.f. Beauty (ELF) Shares of the cosmetics company rose more than 20% on Thursday on the heels its quarterly results and $1 billion acquisition announcement of Rhode, a brand founded by Hailey Bieber. Best Buy (BBY) Best Buy shares tanked more than 7% on Thursday after the retailer reported mixed earnings and cut guidance due to the Trump administration's tariffs. Same-store sales fell 0.7% year over year while revenue fell 0.9% to $8.77 billion, missing Wall Street estimates. Adjusted earnings per share slid 4% to $1.15, beating estimates of $1.09. Read more about Best Buy earnings here. US stocks rose on Thursday in the wake of AI chip giant Nvidia's (NVDA) earnings report and a court ruling that threatened President Trump's tariff policy. The S&P 500 (^GSPC) gained about 0.8%. The Dow Jones Industrial Average (^DJI) moved up roughly 0.3%, while the Nasdaq Composite (^IXIC) climbed 1.4%. Tech stocks led the gains, with Nvidia jumping more than 5% following its quarterly report. Its earnings topped estimates, but the company warned of a second quarter revenue impact due to US restrictions on exports to China. Other "Magnificent Seven" stocks also rose, including Amazon (AMZN). Shares in Tesla (TSLA) put on 2% after CEO Elon Musk teased a June rollout of the EV maker's robotaxis and confirmed he was leaving his role in the Trump administration. On Wednesday evening, a panel of judges at the US Court of International Trade blocked Trump's global tariffs on the grounds that the president lacked the authority to issue them using emergency powers. The decision will likely be appealed by the Trump administration in federal court. Weekly filings for unemployment benefits moved higher last week while the number of Americans filing for unemployment insurance on an ongoing basis once again hit their highest level since November 2021 as the US labor market continues to show signs of slowing. Data from the Department of Labor released Thursday morning showed 240,000 initial jobless claims were filed in the week ending May 24, up from 226,000 the week prior and above economists' expectations for 230,000. Meanwhile, 1.919 million continuing claims were filed, up from 1.893 million the week prior and the highest level seen since November 2021. Economists see an increase in continuing claims as a sign that those out of work are taking longer to find new jobs. Tesla (TSLA) stock rose 2% in premarket trading after CEO Elon Musk teased the rollout of its robotaxis and confirmed he was leaving his role in government. Musk said the EV maker has been testing driverless Model Y cars in Austin, Texas, for the past several days. Previously, he said Tesla would begin testing by the end of June, per Reuters. The rollout is also expected to feature 10 to 20 cars to start, based on past comments. "A month ahead of schedule," Musk wrote on X. Also lifting shares was a confirmation from a White House official that Musk will no longer serve on the Department of Government Efficiency (DOGE). Musk's involvement in government was controversial for Tesla shareholders, many of whom felt his attention had become too divided. 'Back to spending 24/7 at work and sleeping in conference/server/factory rooms,' Musk said on Tuesday, adding that he 'must be super focused on 𝕏/xAI and Tesla (plus Starship launch next week), as we have critical technologies rolling out.' Read more here about Tesla's driverless cars and Musk's return to the office. Bloomberg News reports: Read more here. Salesforce (CRM) defied conventional thinking by raising its full-year guidance in the face of tariff headwinds late Wednesday, as it posted first quarter profit and revenue beats. But the software giant's stock is trading pretty much flat in Thursday's pre-market — a sign that analysts aren't that jazzed by its results. Yahoo Finance's Brian Sozzi reports on how Wall Street is reacting: Read more from Wall Street here. As a US trade court ruling upends President Trump's trade strategy, Yahoo Finance's Josh Schafer points out the rewards that awaited investors who snapped up tariff-bruised stocks. Read more here. Economic data: First quarter GDP; First quarter personal consumption; Initial jobless claims, (week ended May 24); Pending home sales (April) Earnings: American Eagle (AEO), Best Buy (BBY), Burlington Stores (BURL), Build-a-Bear Workshop (BBW), Costco (COST), Dell (DELL), Foot Locker (FL), Hormel Foods (HRL), Gap (GAP), Marvell Technology (MRVL), Ulta (ULTA), Zscaler (ZS) The United States Court of International Trade has ruled Trump tariffs "unlawful." Meanwhile, Nvidia earnings lifted Wall Street, even as the chipmaker flagged risks relating to AI chip controls. Here are some of the biggest stories you may have missed overnight and early this morning: Trump's tariffs in limbo after trade court's stunning rebuke Nvidia pops, CEO warns US chip curbs boost China rivals Court rules Trump doesn't have authority to impose tariffs Buying the dip hasn't paid off this much in 30 years Nvidia gets a pass after earnings miss: What Wall Street is saying Real winner in GameStop's bitcoin pivot is Strategy Goldman: Trump can offset tariff ruling with other tools Microsoft shares go from laggard to leader as AI growth improves Yahoo Finance's Brian Sozzi reports: Read more here on what Wall Street is saying about Nvidia's quarter. Shares in HP Inc. (HPQ) fell by 8% on Thursday in premarket trading after the company's profit outlook missed estimates and it cut the annual earnings forecast, citing a weaker economy and continuing costs from US tariffs on goods from China. Bloomberg News reports: Read more here. Markets may be celebrating the latest turn in the tariffs saga, but the US trade court's block isn't definitive — and that means there's still cause for concern, some analysts say. Reuters reports: Read more here. A landmark decision by the US Court of International Trade has deemed many of President Trump's tariffs 'unlawful' and sent markets into a global upturn. Reuters reports: Read more here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Stock market today: Dow, Nasdaq, S&P 500 rise as investors cheer Nvidia earnings, weigh more tariff uncertainty
US stocks moved higher on Thursday as markets assessed Nvidia's (NVDA) earnings report as well as more tariff uncertainty. In late afternoon trade, a federal appeals court allowed President Trump's sweeping tariffs to temporarily stay in effect, a day after the US Court of International Trade blocked their implementation after deeming the method used to enact them "unlawful." That means Trump's tariffs will remain in effect for now. The benchmarkS&P 500 (^GSPC) and tech-heavy Nasdaq Composite (^IXIC) each climbed about 0.3%, while the Dow Jones Industrial Average (^DJI) was up around 0.2% amid debate over Trump's next move in trade policy. All three major averages had retreated from their highs of the day. Nvidia stock rallied about 3% after its first quarter revenue topped estimates. Investors appear to be looking past the AI chipmaker's warning that it expects to miss out on $8 billion in sales in the second quarter, thanks to US restrictions on exports to China. Overall, Nvidia's performance on Wednesday boosted hopes on Wall Street that Big Tech can weather Trump's far-reaching trade policy. Read more: The latest on Trump's tariffs Meanwhile, Best Buy (BBY) cut its full-year guidance citing economic uncertainty around those tariffs, sending its stock lower. Eyes are now on Costco's (COST) after-hours report, given the difficult position retailers find themselves in: Trump told Walmart to "eat" price hikes associated with new duties following its latest results. On the economic front, filings for unemployment aid jumped more than expected last week. And in a slight upgrade from the initial reading, the Commerce Department said GDP shrank at a 0.2% annualized pace in the first quarter. A federal appeals court has temporarily reinstated President Trump's global tariffs by pausing a lower court ruling that had blocked them. The decision, which came sooner than expected, means the tariffs will remain in effect for now. The US Court of Appeals for the Federal Circuit, which oversees the International Trade Court, granted the Trump administration's request for a temporary administrative stay. This gives the court time to review legal arguments and filings. The administration must submit its briefings by June 9, after which the court will determine the next steps. As Yahoo Finance legal reporter Alexis Keenan noted, Trump has broad authority to impose tariffs through various legal channels, including Sections 232 and 301. The administration had chosen to justify the tariffs under an emergency act, citing concerns such as immigration and drug trafficking — an argument the lower court rejected. Legal experts say it's unclear how the appeals court will ultimately rule, as another court might interpret the emergency authority in a different way. Long-term Treasury yields have climbed in recent weeks, driven by growing concerns over the trajectory of US debt as President Trump's proposed tax legislation advances to the Senate after clearing the House. New concerns emerged late Wednesday after a Manhattan-based trade court struck down a wide swath of Trump's tariffs, adding to uncertainty around how the administration will manage the deficit. "The tariffs the court struck down were likely to raise nearly $200 billion on an annual basis," Goldman Sachs said in a note to clients late Wednesday. That's "roughly the amount the fiscal package would increase the deficit next year." Yields ticked higher in the immediate aftermath of the news before falling slightly on Thursday. In afternoon trade, 10-year (^TNX) hovered near 4.43% while the 30-year (^TYX) traded around 4.94%. As bond markets digest the latest policy whipsaw, one strategist says investors may be underestimating just how actively the administration is working behind the scenes to manage long-term borrowing costs. Tim High, senior rates strategist at BNP Paribas, described the Trump team as "bond vigilant — a counterweight to the so-called bond vigilantes in the market," suggesting the administration is acutely aware of the risks that higher yields and a rising term premium pose to fiscal stability. High pointed to previous comments from Treasury Secretary Scott Bessent, who emphasized the administration is more focused on 10-year yields than on short-term Federal Reserve policy. That matters, he said, because longer-term rates, especially the 10-year, have a bigger impact on the real economy, shaping consumer borrowing costs like mortgage rates. Read more here. President Trump's trade plans ran into a stumbling block this week when a court blocked a wide swath of his tariffs. But he could bounce back quickly even if the White House plans to appeal the defeat don't pan out. That's because Congress has been handing its tariff powers over to the executive branch for decades, with an array of other authorities at the ready, especially from two laws passed in 1962 and 1974m if Trump needs to reimplement things like his "Liberation Day" tariffs by different means. "It's a setback [but] it doesn't mean that the president can't find other means or authorities to try to implement this policies, and it's also just the first step in litigation," Greta Peisch, a former Biden administration trade general counsel, now at law firm Wiley Rein, noted in a Yahoo Finance appearance Thursday morning. Read more here. Federal Reserve Chair Jerome Powell met with President Trump at the White House today, according to a release from the central bank. "At the President's invitation, Chair Powell met with the President today at the White House to discuss economic developments including for growth, employment, and inflation," the release said. "Chair Powell did not discuss his expectations for monetary policy, except to stress that the path of policy will depend entirely on incoming economic information and what that means for the outlook." Trump, who had been badgering Powell to cut interest rates over the past several months via his social media platform Truth Social, has yet to post about the meeting. Read more here. A US trade court decision that put at least a temporary pause on many of President Trump's wide-ranging tariffs isn't cooling Wall Street's fears over policy uncertainty. "It is not clear that this is a catalyst for a sustained new risk-on [trade]," Barclays global chairman of research Ajay Rajadhyaksha wrote in a note to clients while pointing out that lower tariffs would mean less revenue back to the US government. That could cause Trump's new tax bill to push the US deficit higher if it went into effect, exacerbating the recent rise in bond yields and potentially weighing on the equity market. Stock futures soared overnight on the news, but the equity market rally cooled off quickly with the S&P 500 up just 0.2% in early afternoon trading. The administration has already appealed the decision and strategists like Rajadhyaksha have pointed out that this could merely delay Trump's tariff rollout, not eliminate it. "Investors were hoping that tariff negotiations would largely be ironed out in the next couple of months, leaving the Administration free to focus far more on growth-positive policy including deregulation," Rajadhyaksha wrote. "At least optically, that entire process is now pushed back a few months." Read more here. Crude oil prices retreated on Thursday amid a looming decision due this weekend over the possibility of increased production from OPEC+ in July. West Texas Intermediate (CL=F) futures fell 1% to hover above $61 per barrel. Brent crude (BZ=F), the international benchmark, also traded above $63 per barrel. The Organization of the Petroleum Exporting Countries and its allies (OPEC+) will decide this weekend whether to raise output in July following increases already set for May and June. Wall Street anticipates the group will vote in favor of increasing supply by 411,000 barrels per day. Yahoo Finance's Claire Boston reports: Read more here. Nvidia (NVDA) The AI chip giant was the No. 1 trending ticker on Yahoo Finance on Thursday after beating expectations on revenue, but falling short on adjusted earnings per share (EPS) due to the impact of the ban on shipments of its H20 units to China. The company also said it expects to miss out on roughly $8 billion in sales of H20s in the second quarter. e.l.f. Beauty (ELF) Shares of the cosmetics company rose more than 20% on Thursday on the heels its quarterly results and $1 billion acquisition announcement of Rhode, a brand founded by Hailey Bieber. Best Buy (BBY) Best Buy shares tanked more than 7% on Thursday after the retailer reported mixed earnings and cut guidance due to the Trump administration's tariffs. Same-store sales fell 0.7% year over year while revenue fell 0.9% to $8.77 billion, missing Wall Street estimates. Adjusted earnings per share slid 4% to $1.15, beating estimates of $1.09. Read more about Best Buy earnings here. US stocks rose on Thursday in the wake of AI chip giant Nvidia's (NVDA) earnings report and a court ruling that threatened President Trump's tariff policy. The S&P 500 (^GSPC) gained about 0.8%. The Dow Jones Industrial Average (^DJI) moved up roughly 0.3%, while the Nasdaq Composite (^IXIC) climbed 1.4%. Tech stocks led the gains, with Nvidia jumping more than 5% following its quarterly report. Its earnings topped estimates, but the company warned of a second quarter revenue impact due to US restrictions on exports to China. Other "Magnificent Seven" stocks also rose, including Amazon (AMZN). Shares in Tesla (TSLA) put on 2% after CEO Elon Musk teased a June rollout of the EV maker's robotaxis and confirmed he was leaving his role in the Trump administration. On Wednesday evening, a panel of judges at the US Court of International Trade blocked Trump's global tariffs on the grounds that the president lacked the authority to issue them using emergency powers. The decision will likely be appealed by the Trump administration in federal court. Weekly filings for unemployment benefits moved higher last week while the number of Americans filing for unemployment insurance on an ongoing basis once again hit their highest level since November 2021 as the US labor market continues to show signs of slowing. Data from the Department of Labor released Thursday morning showed 240,000 initial jobless claims were filed in the week ending May 24, up from 226,000 the week prior and above economists' expectations for 230,000. Meanwhile, 1.919 million continuing claims were filed, up from 1.893 million the week prior and the highest level seen since November 2021. Economists see an increase in continuing claims as a sign that those out of work are taking longer to find new jobs. Tesla (TSLA) stock rose 2% in premarket trading after CEO Elon Musk teased the rollout of its robotaxis and confirmed he was leaving his role in government. Musk said the EV maker has been testing driverless Model Y cars in Austin, Texas, for the past several days. Previously, he said Tesla would begin testing by the end of June, per Reuters. The rollout is also expected to feature 10 to 20 cars to start, based on past comments. "A month ahead of schedule," Musk wrote on X. Also lifting shares was a confirmation from a White House official that Musk will no longer serve on the Department of Government Efficiency (DOGE). Musk's involvement in government was controversial for Tesla shareholders, many of whom felt his attention had become too divided. 'Back to spending 24/7 at work and sleeping in conference/server/factory rooms,' Musk said on Tuesday, adding that he 'must be super focused on 𝕏/xAI and Tesla (plus Starship launch next week), as we have critical technologies rolling out.' Read more here about Tesla's driverless cars and Musk's return to the office. Bloomberg News reports: Read more here. Salesforce (CRM) defied conventional thinking by raising its full-year guidance in the face of tariff headwinds late Wednesday, as it posted first quarter profit and revenue beats. But the software giant's stock is trading pretty much flat in Thursday's pre-market — a sign that analysts aren't that jazzed by its results. Yahoo Finance's Brian Sozzi reports on how Wall Street is reacting: Read more from Wall Street here. As a US trade court ruling upends President Trump's trade strategy, Yahoo Finance's Josh Schafer points out the rewards that awaited investors who snapped up tariff-bruised stocks. Read more here. Economic data: First quarter GDP; First quarter personal consumption; Initial jobless claims, (week ended May 24); Pending home sales (April) Earnings: American Eagle (AEO), Best Buy (BBY), Burlington Stores (BURL), Build-a-Bear Workshop (BBW), Costco (COST), Dell (DELL), Foot Locker (FL), Hormel Foods (HRL), Gap (GAP), Marvell Technology (MRVL), Ulta (ULTA), Zscaler (ZS) The United States Court of International Trade has ruled Trump tariffs "unlawful." Meanwhile, Nvidia earnings lifted Wall Street, even as the chipmaker flagged risks relating to AI chip controls. Here are some of the biggest stories you may have missed overnight and early this morning: Trump's tariffs in limbo after trade court's stunning rebuke Nvidia pops, CEO warns US chip curbs boost China rivals Court rules Trump doesn't have authority to impose tariffs Buying the dip hasn't paid off this much in 30 years Nvidia gets a pass after earnings miss: What Wall Street is saying Real winner in GameStop's bitcoin pivot is Strategy Goldman: Trump can offset tariff ruling with other tools Microsoft shares go from laggard to leader as AI growth improves Yahoo Finance's Brian Sozzi reports: Read more here on what Wall Street is saying about Nvidia's quarter. Shares in HP Inc. (HPQ) fell by 8% on Thursday in premarket trading after the company's profit outlook missed estimates and it cut the annual earnings forecast, citing a weaker economy and continuing costs from US tariffs on goods from China. Bloomberg News reports: Read more here. Markets may be celebrating the latest turn in the tariffs saga, but the US trade court's block isn't definitive — and that means there's still cause for concern, some analysts say. Reuters reports: Read more here. A landmark decision by the US Court of International Trade has deemed many of President Trump's tariffs 'unlawful' and sent markets into a global upturn. Reuters reports: Read more here. A federal appeals court has temporarily reinstated President Trump's global tariffs by pausing a lower court ruling that had blocked them. The decision, which came sooner than expected, means the tariffs will remain in effect for now. The US Court of Appeals for the Federal Circuit, which oversees the International Trade Court, granted the Trump administration's request for a temporary administrative stay. This gives the court time to review legal arguments and filings. The administration must submit its briefings by June 9, after which the court will determine the next steps. As Yahoo Finance legal reporter Alexis Keenan noted, Trump has broad authority to impose tariffs through various legal channels, including Sections 232 and 301. The administration had chosen to justify the tariffs under an emergency act, citing concerns such as immigration and drug trafficking — an argument the lower court rejected. Legal experts say it's unclear how the appeals court will ultimately rule, as another court might interpret the emergency authority in a different way. Long-term Treasury yields have climbed in recent weeks, driven by growing concerns over the trajectory of US debt as President Trump's proposed tax legislation advances to the Senate after clearing the House. New concerns emerged late Wednesday after a Manhattan-based trade court struck down a wide swath of Trump's tariffs, adding to uncertainty around how the administration will manage the deficit. "The tariffs the court struck down were likely to raise nearly $200 billion on an annual basis," Goldman Sachs said in a note to clients late Wednesday. That's "roughly the amount the fiscal package would increase the deficit next year." Yields ticked higher in the immediate aftermath of the news before falling slightly on Thursday. In afternoon trade, 10-year (^TNX) hovered near 4.43% while the 30-year (^TYX) traded around 4.94%. As bond markets digest the latest policy whipsaw, one strategist says investors may be underestimating just how actively the administration is working behind the scenes to manage long-term borrowing costs. Tim High, senior rates strategist at BNP Paribas, described the Trump team as "bond vigilant — a counterweight to the so-called bond vigilantes in the market," suggesting the administration is acutely aware of the risks that higher yields and a rising term premium pose to fiscal stability. High pointed to previous comments from Treasury Secretary Scott Bessent, who emphasized the administration is more focused on 10-year yields than on short-term Federal Reserve policy. That matters, he said, because longer-term rates, especially the 10-year, have a bigger impact on the real economy, shaping consumer borrowing costs like mortgage rates. Read more here. President Trump's trade plans ran into a stumbling block this week when a court blocked a wide swath of his tariffs. But he could bounce back quickly even if the White House plans to appeal the defeat don't pan out. That's because Congress has been handing its tariff powers over to the executive branch for decades, with an array of other authorities at the ready, especially from two laws passed in 1962 and 1974m if Trump needs to reimplement things like his "Liberation Day" tariffs by different means. "It's a setback [but] it doesn't mean that the president can't find other means or authorities to try to implement this policies, and it's also just the first step in litigation," Greta Peisch, a former Biden administration trade general counsel, now at law firm Wiley Rein, noted in a Yahoo Finance appearance Thursday morning. Read more here. Federal Reserve Chair Jerome Powell met with President Trump at the White House today, according to a release from the central bank. "At the President's invitation, Chair Powell met with the President today at the White House to discuss economic developments including for growth, employment, and inflation," the release said. "Chair Powell did not discuss his expectations for monetary policy, except to stress that the path of policy will depend entirely on incoming economic information and what that means for the outlook." Trump, who had been badgering Powell to cut interest rates over the past several months via his social media platform Truth Social, has yet to post about the meeting. Read more here. A US trade court decision that put at least a temporary pause on many of President Trump's wide-ranging tariffs isn't cooling Wall Street's fears over policy uncertainty. "It is not clear that this is a catalyst for a sustained new risk-on [trade]," Barclays global chairman of research Ajay Rajadhyaksha wrote in a note to clients while pointing out that lower tariffs would mean less revenue back to the US government. That could cause Trump's new tax bill to push the US deficit higher if it went into effect, exacerbating the recent rise in bond yields and potentially weighing on the equity market. Stock futures soared overnight on the news, but the equity market rally cooled off quickly with the S&P 500 up just 0.2% in early afternoon trading. The administration has already appealed the decision and strategists like Rajadhyaksha have pointed out that this could merely delay Trump's tariff rollout, not eliminate it. "Investors were hoping that tariff negotiations would largely be ironed out in the next couple of months, leaving the Administration free to focus far more on growth-positive policy including deregulation," Rajadhyaksha wrote. "At least optically, that entire process is now pushed back a few months." Read more here. Crude oil prices retreated on Thursday amid a looming decision due this weekend over the possibility of increased production from OPEC+ in July. West Texas Intermediate (CL=F) futures fell 1% to hover above $61 per barrel. Brent crude (BZ=F), the international benchmark, also traded above $63 per barrel. The Organization of the Petroleum Exporting Countries and its allies (OPEC+) will decide this weekend whether to raise output in July following increases already set for May and June. Wall Street anticipates the group will vote in favor of increasing supply by 411,000 barrels per day. Yahoo Finance's Claire Boston reports: Read more here. Nvidia (NVDA) The AI chip giant was the No. 1 trending ticker on Yahoo Finance on Thursday after beating expectations on revenue, but falling short on adjusted earnings per share (EPS) due to the impact of the ban on shipments of its H20 units to China. The company also said it expects to miss out on roughly $8 billion in sales of H20s in the second quarter. e.l.f. Beauty (ELF) Shares of the cosmetics company rose more than 20% on Thursday on the heels its quarterly results and $1 billion acquisition announcement of Rhode, a brand founded by Hailey Bieber. Best Buy (BBY) Best Buy shares tanked more than 7% on Thursday after the retailer reported mixed earnings and cut guidance due to the Trump administration's tariffs. Same-store sales fell 0.7% year over year while revenue fell 0.9% to $8.77 billion, missing Wall Street estimates. Adjusted earnings per share slid 4% to $1.15, beating estimates of $1.09. Read more about Best Buy earnings here. US stocks rose on Thursday in the wake of AI chip giant Nvidia's (NVDA) earnings report and a court ruling that threatened President Trump's tariff policy. The S&P 500 (^GSPC) gained about 0.8%. The Dow Jones Industrial Average (^DJI) moved up roughly 0.3%, while the Nasdaq Composite (^IXIC) climbed 1.4%. Tech stocks led the gains, with Nvidia jumping more than 5% following its quarterly report. Its earnings topped estimates, but the company warned of a second quarter revenue impact due to US restrictions on exports to China. Other "Magnificent Seven" stocks also rose, including Amazon (AMZN). Shares in Tesla (TSLA) put on 2% after CEO Elon Musk teased a June rollout of the EV maker's robotaxis and confirmed he was leaving his role in the Trump administration. On Wednesday evening, a panel of judges at the US Court of International Trade blocked Trump's global tariffs on the grounds that the president lacked the authority to issue them using emergency powers. The decision will likely be appealed by the Trump administration in federal court. Weekly filings for unemployment benefits moved higher last week while the number of Americans filing for unemployment insurance on an ongoing basis once again hit their highest level since November 2021 as the US labor market continues to show signs of slowing. Data from the Department of Labor released Thursday morning showed 240,000 initial jobless claims were filed in the week ending May 24, up from 226,000 the week prior and above economists' expectations for 230,000. Meanwhile, 1.919 million continuing claims were filed, up from 1.893 million the week prior and the highest level seen since November 2021. Economists see an increase in continuing claims as a sign that those out of work are taking longer to find new jobs. Tesla (TSLA) stock rose 2% in premarket trading after CEO Elon Musk teased the rollout of its robotaxis and confirmed he was leaving his role in government. Musk said the EV maker has been testing driverless Model Y cars in Austin, Texas, for the past several days. Previously, he said Tesla would begin testing by the end of June, per Reuters. The rollout is also expected to feature 10 to 20 cars to start, based on past comments. "A month ahead of schedule," Musk wrote on X. Also lifting shares was a confirmation from a White House official that Musk will no longer serve on the Department of Government Efficiency (DOGE). Musk's involvement in government was controversial for Tesla shareholders, many of whom felt his attention had become too divided. 'Back to spending 24/7 at work and sleeping in conference/server/factory rooms,' Musk said on Tuesday, adding that he 'must be super focused on 𝕏/xAI and Tesla (plus Starship launch next week), as we have critical technologies rolling out.' Read more here about Tesla's driverless cars and Musk's return to the office. Bloomberg News reports: Read more here. Salesforce (CRM) defied conventional thinking by raising its full-year guidance in the face of tariff headwinds late Wednesday, as it posted first quarter profit and revenue beats. But the software giant's stock is trading pretty much flat in Thursday's pre-market — a sign that analysts aren't that jazzed by its results. Yahoo Finance's Brian Sozzi reports on how Wall Street is reacting: Read more from Wall Street here. As a US trade court ruling upends President Trump's trade strategy, Yahoo Finance's Josh Schafer points out the rewards that awaited investors who snapped up tariff-bruised stocks. Read more here. Economic data: First quarter GDP; First quarter personal consumption; Initial jobless claims, (week ended May 24); Pending home sales (April) Earnings: American Eagle (AEO), Best Buy (BBY), Burlington Stores (BURL), Build-a-Bear Workshop (BBW), Costco (COST), Dell (DELL), Foot Locker (FL), Hormel Foods (HRL), Gap (GAP), Marvell Technology (MRVL), Ulta (ULTA), Zscaler (ZS) The United States Court of International Trade has ruled Trump tariffs "unlawful." Meanwhile, Nvidia earnings lifted Wall Street, even as the chipmaker flagged risks relating to AI chip controls. Here are some of the biggest stories you may have missed overnight and early this morning: Trump's tariffs in limbo after trade court's stunning rebuke Nvidia pops, CEO warns US chip curbs boost China rivals Court rules Trump doesn't have authority to impose tariffs Buying the dip hasn't paid off this much in 30 years Nvidia gets a pass after earnings miss: What Wall Street is saying Real winner in GameStop's bitcoin pivot is Strategy Goldman: Trump can offset tariff ruling with other tools Microsoft shares go from laggard to leader as AI growth improves Yahoo Finance's Brian Sozzi reports: Read more here on what Wall Street is saying about Nvidia's quarter. Shares in HP Inc. (HPQ) fell by 8% on Thursday in premarket trading after the company's profit outlook missed estimates and it cut the annual earnings forecast, citing a weaker economy and continuing costs from US tariffs on goods from China. Bloomberg News reports: Read more here. Markets may be celebrating the latest turn in the tariffs saga, but the US trade court's block isn't definitive — and that means there's still cause for concern, some analysts say. Reuters reports: Read more here. A landmark decision by the US Court of International Trade has deemed many of President Trump's tariffs 'unlawful' and sent markets into a global upturn. Reuters reports: Read more here.
Yahoo
4 days ago
- Business
- Yahoo
US court rejects several of Trump's tariff policies: What to know
A US federal court has blocked several of President Trump's sweeping tariff policies — particularly the import taxes levied against Canada, Mexico, and China — calling them a display of "unbounded authority." Yahoo Finance legal correspondent Alexis Keenan comes on The Morning Brief to discuss the tariffs that US courts are currently rejecting and how the Trump administration may move to appeal this ruling. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
US judge finds Apple to be in violation of antitrust order
A federal judge found Apple (AAPL) in violation of a 2021 court order demanding the tech giant to enable broader competition for app developers and payment methods on its App Store. Yahoo Finance senior legal correspondent Alexis Keenan explains US District Judge Yvonne Gonzalez Rogers' ruling stemming from a 2021 antitrust case brought forth against Apple by Epic Games. She goes into detail on the judge's original injunction and accusations of an Apple executive lying under oath. Catch Yahoo Finance break down Apple's fiscal second quarter earnings results. To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here. Apple shares under pressure after reported second-quarter earnings and aside from trade headwinds, the company also facing a recent legal setback. Apple's App store in the hot seat for its alleged anti-competitive conduct. Yahoo finances Alexis Keenan joins us with more, and just this week, before the earnings report, there was a judge's strong words to Apple. Very strong words. Now the judge in California district court, a federal judge, she held Apple in contempt and ordered it to comply with an injunction that she issued back in 2021, but it became effective in January because the Supreme Court on appeal from the case which stemmed from Epic Games's accusations against Apple that they were using anti-competitive tactics. The Supreme Court decided not to take up and review that case, so that put the injunction into effect, and in essence, the judge has said based on a response to epics complaints that Apple is not complying with the injunction and what the injunction said is that Apple must allow app developers to allow its customers to go outside the App store and link out to pay for in-app purchases. The judge and Epic said Apple did not do that, and so that ruling that judgment, that it actually largely favored Apple, but this part, this injunction really is a threat to Apple's App Store revenues totaling in 2024, $92 billion. Now part of that comes from those fees that Apple collects every time a customer makes an in-app purchase, 15 to 30%, depending on how large the business is. Now Apple did respond to the injunction, but the way they responded is they allowed the developers to go in and put those apps in, but then they assess a 27% fee for those out of app store purchases and the judge said, no, that does not comply with the spirit of this injunction, holding Apple in contempt saying that one of its executives lied under oath, said Tim Cook made bad decisions in ignoring this injunction, and said effective immediately, Apple will no longer be able to impede their customers in this way. And so Alexis, so in terms of timeline with this, what happens next? What happens next is Apple has to hop to, immediately are the judge's words. They must now have these links, and so what that does is theoretically, right? It reduces Apple's revenues in the App store. Now Apple does not give us data. They don't parse out exactly line items for how much these commissions, these 15 to 30% commissions make for the company, but we know that they're a substantial part of that revenue chunk. Uh Apple here uh not responding to Yahoo finances request for comment on this, maybe they will in the future. Um, but right now, they're going to have to get compliant with this order. It says immediate. And they're also going to have to potentially face some a criminal investigation. The judge has referred it over to California's prosecutors to look into whether they should be held in criminal contempt. This is a civil contempt. Uh, so there can be fines. There can be other consequences down the road. So certainly not a good day for Apple. All right, Alexis. Thank you. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
