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President-elect Donald Trump says he would enact a 25% tariff on products from Mexico and Canada on his first day in office, as well as 10% tariffs on Chinese-made products; U.S. stock futures are little changed as investors digest the tariffs vow; Kohl’s (KSS) stock is sinking on weak results and news its CEO will be stepping down; Zoom Communications (ZM) shares are down despite better-than-expected quarterly results; and Intel (INTC) receives nearly $7.9 billion in CHIPS Act funding but Qualcomm reportedly has cooled on the idea of acquiring the chipmaker. What investors should know about today.
1. Trump announces tariffs against Mexico, Canada and China
Donald Trump, the president-elect, said that he will impose tariffs for products entering his country from Mexico Canada and China. This is in line with his campaign promises. Trump stated in a posting on his Truth website that on January 20, 2025 – the first official day of his administration – he would issue an executive order imposing a 25% duty on all goods coming from Mexico and Canada. Trump cited high rates of illegal migration and drug trafficking. He said in a separate blog post that he will impose a tariff of 10% on Chinese goods. However, he did not give a timeframe for the implementation.
2. US Stock Futures: Trump Tariffs Have Little Impact on Futures Prices
The U.S. Stock Futures have not changed much as investors consider the economic effects of Trump’s recent announcements on tariffs. Some believe that this could lead to an increase in inflation. This flat performance comes after a day where the markets rallied post-election, with a Dow Jones Industrial Average record close and futures that are slightly lower. Futures for the Nasdaq and S&P 500 are up about 0.3% each. The yields of the 10-year Treasury notes are barely changed and remain below 4.3%. Bitcoin (BTCUSD), which has retreated from its recent price highs, is now trading below the 4% level.
3. Kohl's Stock Sinks After Weak Results, CEO Departure News
Kohl’s shares (KSS), the stock of the struggling retailer, are down by 16% during premarket trading on Tuesday after they reported earnings that were weaker than expected for the third quarter. Ashley Buchanan will replace Kingsbury on January 15, 2023. He was appointed CEO by The Michaels Companies in February of that year. The chain of department stores reported a profit of $22million on revenues of $3.51billion, whereas Visible Alpha polled analysts who were expecting $29.8million and $3.85billion respectively.
4. Zoom Stock Sinks; Company Removes 'Video' From Name
Zoom Communications stock (ZM) is falling 9% before the opening of the market, despite the fact that the company reported better results than anticipated for its third quarter. The company reported year-over-year revenue growth of 4% to $1.18 billion, above Visible Alpha consensus, while its net income of $207.1 million or 66 cents per share also topped estimates. Zoom reported new customer additions and raised their full-year revenue outlook and adjusted earning per share (EPS). Zoom Communications has also changed its name from Zoom Video Communications to Zoom Communications. This is because the company focuses on artificial intelligence.
5. Intel Receives Nearly $ 7.9 Billion from the CHIPS Act; Qualcomm reportedly cools down on a takeover
Intel (INTC) announced it would receive nearly $7.9 billion in government funding as part of a grant from the CHIPS and Science Act. This grant amount is lower than that revealed in an announcement made in March, but it is accompanied by $3 billion of funding from the Defense Department to help improve the microchip manufacturing process. Bloomberg reports that Qualcomm executives (QCOM), who are reportedly rethinking the idea of acquiring Intel, have cooled on this. Intel shares are not much changed at premarket.
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