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Bloomberg
a day ago
- Business
- Bloomberg
S&P 500 Declines With Renewed Trade Tensions Dampening Sentiment
US stocks fell on Friday as President Donald Trump accused China of violating an agreement with the US to ease tariffs, renewing tensions between the White House and Beijing. The S&P 500 Index declined 0.4% as of 9:34 a.m. in New York, as the technology-heavy Nasdaq 100 Index also fell 0.4%. MSCI Index rebalancing and month-end flows are poised to amplify an already volatile session for US stocks.
Yahoo
3 days ago
- Business
- Yahoo
Trump's Global Tariffs Deemed Illegal, Blocked by Trade Court
(Bloomberg) -- The vast majority of President Donald Trump's global tariffs were deemed illegal and blocked by the US trade court, dealing a major blow to a pillar of his economic agenda. NYC Congestion Toll Brings In $216 Million in First Four Months NY Wins Order Against US Funding Freeze in Congestion Fight NY Congestion Pricing Is Likely to Stay Until Year End During Court Case A panel of three judges at the US Court of International Trade in Manhattan issued a unanimous ruling Wednesday which sided with Democratic-led states and small businesses that accused Trump of wrongfully invoking an emergency law to justify the bulk of his levies. The court gave the administration 10 days to 'effectuate' its order, but didn't provide any specific directions of steps it must take to unwind the tariffs. The Justice Department filed a notice of appeal with the US Court of Appeals for the Federal Circuit. The US Supreme Court may ultimately have the final say in the high-stakes case that could impact trillions of dollars in global trade. For now, the ruling permanently blocks the tariffs unless the appeals court allows Trump to reinstate them during litigation. US stock futures jumped with the contracts on Nasdaq 100 Index rising as much as 2.1% on the ruling. The dollar strengthened and the yen tumbled. The decision is one of the biggest setbacks in court for Trump amid a wave of lawsuits over executive orders testing the limits of presidential power. Others are challenging Trump's mass firings of federal workers, restrictions on birthright citizenship and efforts to slash federal spending already approved by Congress. The judges rejected the government's argument that Trump had authority to unilaterally issue tariffs under a law intended to address financial transactions during national emergencies. The ruling was a so-called summary judgment, meaning a final victory for the plaintiffs in lower court without the need for a trial. Trump's executive orders invoked the International Emergency Economic Powers Act to justify the sweeping global tariffs. The law grants the president authority over a variety of financial transactions during certain emergencies, typically with sanctions. The president cited the US trade deficits and drug trafficking at the US border as national emergencies that allowed him to invoke the law. The judges said Trump's lawyers had stated during court hearings that the intention was to 'pressure' other nations into striking better deals. 'The government's 'pressure' argument effectively concedes that the direct effect of the country-specific tariffs is simply to burden the countries they target,' wrote the panel, which includes one judge appointed by Trump, one by Barack Obama and one by Ronald Reagan. Global Markets Global markets have fluctuated wildly since Trump announced the so-called reciprocal levies in a sweeping executive order an April 2. Since then, trillions of dollars in market value have been shed and regained amid weeks of delays, reversals and announcements about potential trade deals, particularly with China. The order suspends the bulk of Trump's tariffs — his global flat tariff, elevated rates on China and others, and his fentanyl-related tariffs on China, Canada and Mexico are all suspended by the ruling. Other tariffs imposed under different powers, like so-called Section 232 and Section 301 levies, are unaffected, and include the tariffs on steel, aluminum and automobiles. A White House spokesman said 'it is not for unelected judges to decide how to properly address a national emergency.' 'Foreign countries' nonreciprocal treatment of the Unites States has fueled America's historic and persistent trade deficits,' Kush Desai said in a statement. 'These deficits have created a national emergency that has decimated American communities, left our workers behind, and weakened our defense industrial base – facts that the court did not dispute.' Emergency Law Trump said he was permitted to use the emergency law to implement tariffs because the nation's 'large and persistent' annual trade deficits across the globe constituted 'an unusual and extraordinary threat' to national security and the economy. The panel of judges concluded that Trump's initial executive order announcing global tariffs and subsequent order dealing additional levies on countries that retaliated both exceeded the president's authority under the emergency law. A third executive order, hitting Mexico and Canada with tariffs over concerns about drug trafficking, were deemed to be illegal by the court because those levies do not ultimately attempt address the trafficking problem. A complaint brought by a conservative legal advocacy group on behalf of small businesses alleged Trump is misusing the law, essentially basing his tariffs on a bogus emergency. The Liberty Justice Center said the US trade deficits are 'neither an emergency nor an unusual or extraordinary threat.' Even if it were, the group says, the emergency law doesn't allow a president to impose across-the-board tariffs. The Democrat-led states alleged the tariffs amount to a massive tax on American consumers and infringe on the authority of Congress. The states also challenged Trump's tariffs on Mexico and Canada, which cite the same emergency law based on claims about cartel activity and drug trafficking. Drug Trafficking The states alleged that the broad nature of Trump's tariffs undercut his claims about the purported emergency because they don't target goods or services connected in any way to drug trafficking. New York Governor Kathy Hochul hailed the ruling on social media. The US trade court is part of the nation's federal court system and was created by Congress to handle specialized disputes around trade, including tariffs. Decisions are appealed on the same track as rulings from district courts, meaning a challenge by Trump would go to a federal appeals court and then the US Supreme Court. As with other federal courts, the judges are appointed by sitting presidents. Republicans in Congress have advanced legislation that would give the president broad authority to impose so-called reciprocal tariffs, but concern about the impact of Trump's widespread levies is expected to limit the appetite for moving that measure now. 'Second-Guessing' The Trump administration argued in court filings that the plaintiffs are improperly questioning his executive orders, 'inviting judicial second-guessing of the president's judgment.' The government had asked the panel of judges to issue only a narrow ruling if they were to rule in favor of the plaintiffs, but the court concluded that wasn't possible given the nature of the tariffs. 'There is no question here of narrowly tailored relief; if the challenged tariff orders are unlawful as to plaintiffs they are unlawful as to all,' the panel said. The court said it didn't need to weigh in on the plaintiffs' argument that Trump had declared a false national emergency, saying that argument is moot for now because the president had used the law improperly regardless. New York Attorney General Letitia James praised the ruling in statement. 'These tariffs are a massive tax hike on working families and American businesses that would have led to more inflation, economic damage to businesses of all sizes, and job losses across the country if allowed to continue,' James said. The cases are V.O.S. Selections v. Trump, 25-cv-00066, and Oregon v. Trump, 25-cv-00077, US Court of International Trade (Manhattan). --With assistance from Malathi Nayak, Jennifer A. Dlouhy and Gregory Korte. (Updates with market reaction in fourth paragraph.) Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? Millions of Americans Are Obsessed With This Japanese Barbecue Sauce YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Inside the First Stargate AI Data Center How Coach Handbags Became a Gen Z Status Symbol ©2025 Bloomberg L.P. 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
Time of India
3 days ago
- Business
- Time of India
Apple shares face more pain as Trump's tariff threat looms
HighlightsApple Inc. shares have experienced their longest selloff in over three years, declining 22 per cent in 2025, amid escalating tariff threats from President Donald Trump, who has proposed a 25 per cent tariff on foreign-made smartphones if Apple does not move production to the United States. Analysts express skepticism regarding the actual implementation of the proposed tariffs, with some suggesting that if enforced, Apple may have to raise iPhone prices significantly, potentially by $250-$300, to maintain gross margins, which could lead to reduced consumer demand. The current political and economic climate has led to a reduction in earnings estimates for Apple Inc., with the consensus for net earnings in 2026 dropping by 5.1 per cent over the past three months, further complicating the company's financial outlook amidst ongoing trade uncertainties. Apple Inc. shares are coming off their longest selloff in more than three years, as escalating attacks from the White House threaten to further erode the company's profit outlook, suggesting the stock's struggles this year are far from over. President Donald Trump on Friday threatened to levy a 25% tariff on the company's products if it doesn't shift iPhone production to the US. Shares fell 3% to end the week, their eighth straight negative session, the longest such selloff since January 2022. Some analysts are skeptical that the tariffs will come to pass, but any movement in this direction will put the company in a position where it either has to absorb the higher costs, weighing on its earnings and margins, or pass along higher prices to consumers, which could erode demand at a time when Apple is already struggling with tepid growth and difficulties with its artificial intelligence offerings. 'The threat may be politically motivated but markets can't ignore the headline risk,' said Haris Khurshid, chief investment officer at Karobaar Capital. 'This kind of tariff rhetoric, even if it never materializes, chips away at investor confidence . You can't run a $3 trillion company with a trade grenade hanging overhead.' Apple is the worst-performing Magnificent Seven stock this year, and its 2025 drop of 22% stands in stark contrast to the 0.5% decline of the Nasdaq 100 Index. The stock has broken under key moving averages, but isn't yet at the level that would indicate oversold conditions, based on its 14-day relative strength index. The CBOE Apple VIX, which tracks a market estimate of future volatility for the stock, jumped more than 30% last week. The stock has endured political and tariff-related swings, though Friday's selloff was far milder than Apple's drop after the initial announcement of tariffs in April, when the stock underwent historic volatility, including its biggest four-day drop since October 2000. The Trump administration subsequently walked back several of its more extreme tariff pronouncements. It exempted key categories of electronics — including smartphones and computers — from its so-called reciprocal tariffs, while the US and China agreed to temporarily lower tariffs on each other's products. 'It would be probably a surprise to most investors if this actually happens,' Matt Stucky, chief portfolio manager of equities at Northwestern Mutual Wealth Management, said. He added that Friday's move in Apple shares underscored this point: if investors believed the 25% rate will be enforced, traders likely would have sent the stock down further. Trump's quickly evolving position was on display on Friday when, a few hours after taking aim at Apple on social media, he said the 25% tariff would apply to all foreign-made smartphones. Ironically, this could be to Apple's benefit, according to JPMorgan analyst Samik Chatterjee, who said that if all competitors in the industry face the same hurdle, 'Apple's pricing power with consumers as well as suppliers would position the company favorably relative to peers, rather than at a disadvantage.' Still, the situation is difficult for Apple because it has few obvious recourses to appease Trump. The idea of fully domestic iPhone manufacturing is 'a fairy tale that is not feasible,' according to Wedbush analyst Daniel Ives. Given the complexity of Apple's supply chain — including materials, assembly, labor, and machinery — Bloomberg Intelligence estimated it would take several quarters to move iPhone assembly to the US. Last month, Bank of America calculated that iPhone costs could rise 90% or more if they were made in the US. Apple was reportedly already considering price increases, though trying to avoid the perception they were related to tariffs, as Trump has also attacked companies that have raised prices due to the levies. Estimates vary on how significant tariffs could be to Apple. Bloomberg Intelligence estimated they 'might cut gross margin by 300-350 bps for fiscal 2026,' while Citigroup analyst Atif Malik estimated 'about 130 bps incremental gross margin impact, or 4% incremental EPS impact in FY26.' Wells Fargo Securities analyst Aaron Rakers is skeptical tariffs will materialize, but said Apple would have to raise prices by $250-$300 per iPhone in order to maintain gross margins. Ives at Wedbush said iPhones would cost about $3,500 if made in the US. Analysts have been trimming their estimates on account of the uncertainty. The consensus for Apple's net 2026 earnings has dropped by 5.1% over the past three months, while the view for revenue is down 3.9 per cent over the same period. Further cuts to estimates would have the effect of making the stock appear more expensive by shrinking the denominator in the price-to-earnings ratio. Apple currently trades around 26 times estimated earnings, above its 10-year average, and more than megacap peers that are expected to grow faster. The combination of a higher multiple and slower growth suggests a difficult setup, even outside of the tariff situation. 'We're in that ugly space because it's a bit of a no-win situation right now,' said Brian Mulberry, a client portfolio manager at Zacks Investment Management. 'There is probably a point where you can see the price becoming attractive enough for long-term investors,' but the valuation and uncertain backdrop means it isn't there yet.
Time of India
4 days ago
- Business
- Time of India
Apple shares face more pain as Trump's tariff threat looms
Apple Inc. shares are coming off their longest selloff in more than three years, as escalating attacks from the White House threaten to further erode the company's profit outlook, suggesting the stock's struggles this year are far from over. President Donald Trump on Friday threatened to levy a 25% tariff on the company's products if it doesn't shift iPhone production to the US. Shares fell 3% to end the week, their eighth straight negative session, the longest such selloff since January 2022. Some analysts are skeptical that the tariffs will come to pass, but any movement in this direction will put the company in a position where it either has to absorb the higher costs, weighing on its earnings and margins, or pass along higher prices to consumers, which could erode demand at a time when Apple is already struggling with tepid growth and difficulties with its artificial intelligence offerings. 'The threat may be politically motivated but markets can't ignore the headline risk,' said Haris Khurshid, chief investment officer at Karobaar Capital. 'This kind of tariff rhetoric, even if it never materializes, chips away at investor confidence. You can't run a $3 trillion company with a trade grenade hanging overhead.' Apple is the worst-performing Magnificent Seven stock this year, and its 2025 drop of 22% stands in stark contrast to the 0.5% decline of the Nasdaq 100 Index. The stock has broken under key moving averages, but isn't yet at the level that would indicate oversold conditions, based on its 14-day relative strength index. The CBOE Apple VIX, which tracks a market estimate of future volatility for the stock, jumped more than 30% last week. The stock has endured political and tariff-related swings, though Friday's selloff was far milder than Apple's drop after the initial announcement of tariffs in April, when the stock underwent historic volatility, including its biggest four-day drop since October 2000. The Trump administration subsequently walked back several of its more extreme tariff pronouncements. It exempted key categories of electronics — including smartphones and computers — from its so-called reciprocal tariffs, while the US and China agreed to temporarily lower tariffs on each other's products. 'It would be probably a surprise to most investors if this actually happens,' Matt Stucky, chief portfolio manager of equities at Northwestern Mutual Wealth Management, said. He added that Friday's move in Apple shares underscored this point: if investors believed the 25% rate will be enforced, traders likely would have sent the stock down further. Trump's quickly evolving position was on display on Friday when, a few hours after taking aim at Apple on social media, he said the 25% tariff would apply to all foreign-made smartphones. Ironically, this could be to Apple's benefit, according to JPMorgan analyst Samik Chatterjee, who said that if all competitors in the industry face the same hurdle, 'Apple's pricing power with consumers as well as suppliers would position the company favorably relative to peers, rather than at a disadvantage.' Still, the situation is difficult for Apple because it has few obvious recourses to appease Trump. The idea of fully domestic iPhone manufacturing is 'a fairy tale that is not feasible,' according to Wedbush analyst Daniel Ives. Given the complexity of Apple's supply chain — including materials, assembly, labor, and machinery — Bloomberg Intelligence estimated it would take several quarters to move iPhone assembly to the US. Last month, Bank of America calculated that iPhone costs could rise 90% or more if they were made in the US. Apple was reportedly already considering price increases, though trying to avoid the perception they were related to tariffs, as Trump has also attacked companies that have raised prices due to the levies. Estimates vary on how significant tariffs could be to Apple. Bloomberg Intelligence estimated they 'might cut gross margin by 300-350 bps for fiscal 2026,' while Citigroup analyst Atif Malik estimated 'about 130 bps incremental gross margin impact, or 4% incremental EPS impact in FY26.' Wells Fargo Securities analyst Aaron Rakers is skeptical tariffs will materialize, but said Apple would have to raise prices by $250-$300 per iPhone in order to maintain gross margins. Ives at Wedbush said iPhones would cost about $3,500 if made in the US. Analysts have been trimming their estimates on account of the uncertainty. The consensus for Apple's net 2026 earnings has dropped by 5.1% over the past three months, while the view for revenue is down 3.9% over the same period. Further cuts to estimates would have the effect of making the stock appear more expensive by shrinking the denominator in the price-to-earnings ratio. Apple currently trades around 26 times estimated earnings, above its 10-year average, and more than megacap peers that are expected to grow faster. The combination of a higher multiple and slower growth suggests a difficult setup, even outside of the tariff situation. 'We're in that ugly space because it's a bit of a no-win situation right now,' said Brian Mulberry, a client portfolio manager at Zacks Investment Management. 'There is probably a point where you can see the price becoming attractive enough for long-term investors,' but the valuation and uncertain backdrop means it isn't there yet.
Yahoo
4 days ago
- Business
- Yahoo
Apple Shares Face More Pain as Trump's Tariff Threat Looms
(Bloomberg) — Apple Inc (AAPL). shares are coming off their longest selloff in more than three years, as escalating attacks from the White House threaten to further erode the company's profit outlook, suggesting the stock's struggles this year are far from over. NY Private School Pleads for Donors to Stay Open After Declaring Bankruptcy UAE's AI University Aims to Become Stanford of the Gulf NYC's War on Trash Gets a Glam Squad Pacific Coast Highway to Reopen Near Malibu After January Fires President Donald Trump on Friday threatened to levy a 25% tariff on the company's products if it doesn't shift iPhone production to the US. Shares fell 3% to end the week, their eighth straight negative session, the longest such selloff since January 2022. Some analysts are skeptical that the tariffs will come to pass, but any movement in this direction will put the company in a position where it either has to absorb the higher costs, weighing on its earnings and margins, or pass along higher prices to consumers, which could erode demand at a time when Apple is already struggling with tepid growth and difficulties with its artificial intelligence offerings. 'The threat may be politically motivated but markets can't ignore the headline risk,' said Haris Khurshid, chief investment officer at Karobaar Capital. 'This kind of tariff rhetoric, even if it never materializes, chips away at investor confidence. You can't run a $3 trillion company with a trade grenade hanging overhead.' Apple is the worst-performing Magnificent Seven stock this year, and its 2025 drop of 22% stands in stark contrast to the 0.5% decline of the Nasdaq 100 Index. The stock has broken under key moving averages, but isn't yet at the level that would indicate oversold conditions, based on its 14-day relative strength index. The CBOE Apple VIX, which tracks a market estimate of future volatility for the stock, jumped more than 30% last week. The stock has endured political and tariff-related swings, though Friday's selloff was far milder than Apple's drop after the initial announcement of tariffs in April, when the stock underwent historic volatility, including its biggest four-day drop since October 2000. The Trump administration subsequently walked back several of its more extreme tariff pronouncements. It exempted key categories of electronics — including smartphones and computers — from its so-called reciprocal tariffs, while the US and China agreed to temporarily lower tariffs on each other's products. 'It would be probably a surprise to most investors if this actually happens,' Matt Stucky, chief portfolio manager of equities at Northwestern Mutual Wealth Management, said. He added that Friday's move in Apple shares underscored this point: if investors believed the 25% rate will be enforced, traders likely would have sent the stock down further. Trump's quickly evolving position was on display on Friday when, a few hours after taking aim at Apple on social media, he said the 25% tariff would apply to all foreign-made smartphones. Ironically, this could be to Apple's benefit, according to JPMorgan analyst Samik Chatterjee, who said that if all competitors in the industry face the same hurdle, 'Apple's pricing power with consumers as well as suppliers would position the company favorably relative to peers, rather than at a disadvantage.' Still, the situation is difficult for Apple because it has few obvious recourses to appease Trump. The idea of fully domestic iPhone manufacturing is 'a fairy tale that is not feasible,' according to Wedbush analyst Daniel Ives. Given the complexity of Apple's supply chain — including materials, assembly, labor, and machinery — Bloomberg Intelligence estimated it would take several quarters to move iPhone assembly to the US. Last month, Bank of America calculated that iPhone costs could rise 90% or more if they were made in the US. Apple was reportedly already considering price increases, though trying to avoid the perception they were related to tariffs, as Trump has also attacked companies that have raised prices due to the levies. Estimates vary on how significant tariffs could be to Apple. Bloomberg Intelligence estimated they 'might cut gross margin by 300-350 bps for fiscal 2026,' while Citigroup analyst Atif Malik estimated 'about 130 bps incremental gross margin impact, or 4% incremental EPS impact in FY26.' Wells Fargo Securities analyst Aaron Rakers is skeptical tariffs will materialize, but said Apple would have to raise prices by $250-$300 per iPhone in order to maintain gross margins. Ives at Wedbush said iPhones would cost about $3,500 if made in the US. Analysts have been trimming their estimates on account of the uncertainty. The consensus for Apple's net 2026 earnings has dropped by 5.1% over the past three months, while the view for revenue is down 3.9% over the same period. Further cuts to estimates would have the effect of making the stock appear more expensive by shrinking the denominator in the price-to-earnings ratio. Apple currently trades around 26 times estimated earnings, above its 10-year average, and more than megacap peers that are expected to grow faster. The combination of a higher multiple and slower growth suggests a difficult setup, even outside of the tariff situation. 'We're in that ugly space because it's a bit of a no-win situation right now,' said Brian Mulberry, a client portfolio manager at Zacks Investment Management. 'There is probably a point where you can see the price becoming attractive enough for long-term investors,' but the valuation and uncertain backdrop means it isn't there yet. 'You're trying to catch a falling knife right now,' he said. Tech Chart of the Day BYD Co. shares extended losses in Hong Kong trading Tuesday — taking their two-day slide to more than 10% — as last week's sweeping price cuts stoked concern of another wave of discounting in China's cutthroat electric car market. Top Tech Stories Samsung Electronics Co.'s investment arm is among a group of firms seeking to invest in US health-care software and device company Exo Imaging Inc., according to people familiar with the matter. OpenAI has established a legal entity in South Korea, seeking to propel further adoption of its artificial intelligence technologies. Salesforce Inc. is in talks to acquire software company Informatica Inc., rebooting a pursuit that fell through last year, people familiar with the matter said. A union has been certified at a Whole Foods Market store in Philadelphia, marking a US first for the Inc. grocery chain. Earnings Due Tuesday Earnings Postmarket: Box Inc. (BOX US) Okta Inc. (OKTA US) Semtech Corp. (SMTC US) —With assistance from Subrat Patnaik. Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? Why Apple Still Hasn't Cracked AI Inside the First Stargate AI Data Center How Coach Handbags Became a Gen Z Status Symbol AI Is Helping Executives Tackle the Dreaded Post-Vacation Inbox ©2025 Bloomberg L.P. Sign in to access your portfolio
