Overnight – Stocks lower as investors unnerved by Trump tariffs
Stocks gave up gains to close lower Friday, in a ugly reversal as the White House confirmed that tariffs on Mexico, Canada, and China would begin on Saturday.
White House press secretary Karoline Leavitt confirmed that the tariffs will begin on Saturday on America’s three largest trading partners including Canada, Mexico and China.
The U.S. is set to impose 25% tariffs on Mexican and Canadian goods as well as a 10% tariff on Chinese goods. The confirmation of tariffs to come in 24 hours caught markets off guard as some had been hoping that Trump wouldn’t follow through on his earlier threat to impose tariffs on Feb. 1.
White House press secretary Karoline Leavitt confirmed that the tariffs will begin on Saturday on America’s three largest trading partners including Canada, Mexico and China.
The U.S. is set to impose 25% tariffs on Mexican and Canadian goods as well as a 10% tariff on Chinese goods. The confirmation of tariffs to come in 24 hours caught markets off guard as some had been hoping that Trump wouldn’t follow through on his earlier threat to impose tariffs on Feb. 1.
Mexico and Canada – the top U.S. two trading partners – vowing immediate retaliation and China saying it would take “counter measures,” the scene was set for a round of turbulence.
Corporate Earnings
- Apple – stock closed lower as the broader market selloff wiped out its gains even after the company said it now expects sales to grow in the low- to mid-single digits in its fiscal second quarter.
- Exxon Mobil – stock fell 2.5% oil giant beat estimates for fourth-quarter profit as higher oil and gas production offset lower oil prices and weaker refining margins.
- Colgate-Palmolive – stock fell 4.6% after the consumer products giant reported fourth-quarter results that fell short of analyst expectations on revenue.
- AbbVie – stock soared nearly 5% after the drugmaker forecast 2025 profit above estimates, as strong sales of its newer immunology drugs Skyrizi and Rinvoq make up for a steep decline in those of Humira, its flagship rheumatoid arthritis drug that now faces stiff competition.
ASX SPI 8406 (-1.18%)
Australian share are set for deep losses on the open as President Trump turned threats into reality for tariffs. Companies like RIO Tinto and BHP could be affected by tariffs from Canada and Mexico while a weak AUD, combined with tariffs could mean much higher prices for Australian consumers
