S&P, Nasdaq rise as investors await US tariff clarity; Johnson & Johnson slips, PVV Corp jumps
The S&P 500 experienced volatility on Tuesday and was in the green.
Investors were awaiting clarity from US President Donald Trump regarding tariff policy, and weaker-than-expected economic data also put pressure on Wall Street.
The broad market index was up 0.5% from the previous close.
The Dow Jones Industrial Average climbed 0.2%, while the Nasdaq Composite surged 1% on Tuesday.
The Institute for Supply Management’s manufacturing survey indicated a contraction in the US economy, and the Bureau of Labor Statistics reported that job openings were below expectations.
Due to the threat of tariffs and lower-than-expected economic data, investor confidence fell on Tuesday.
“Usually, after a disappointing first quarter, investors look forward to better opportunities ahead,” David Morrison, senior market analyst at Trade Nation, said.
But that doesn’t appear to be the case now. Instead, there’s one word which comes up repeatedly when attempting to describe the current trading environment, and that is: uncertain.
“And the reason for that uncertainty is, of course, Trump’s tariffs. President Trump has promised ‘retaliatory’ tariffs on all US trading partners, along with a 25% levy on US car imports, starting tomorrow, or ‘Liberation Day’ if you’re a member of the Trump Administration,” Morrison added.
The Trump administration is contemplating imposing tariffs of approximately 20% on the majority of imports into the US, as reported by The Washington Post on Tuesday.
The report, citing three sources familiar with the matter, emphasised that no definitive decision has been reached.
Morrison noted:
The trouble is that there have been so many contradictory statements about what this may mean, that markets can’t handicap the outcomes. It seems increasingly plausible that Trump and his administration are also undecided.
US job openings decline
The labor market continued to normalize in February from the pandemic’s massive supply-demand shock, and job openings declined slightly.
Available positions decreased by 194,000 from January to 7.57 million, according to a Tuesday report from the Bureau of Labor Statistics. This figure is slightly lower than the Dow Jones estimate of 7.6 million.
The ratio of openings to available workers decreased to 1.07 to 1, and the openings rate as a share of the labor force decreased 0.2 percentage points to 4.5%.
The Job Openings and Labor Turnover Survey indicated that other measures of quits, hires, layoffs, and separations showed minimal change.
Johnson & Johnson slips
Johnson & Johnson’s shares experienced a more than 5% decline following a US bankruptcy judge’s rejection of the company’s proposed $10 billion settlement.
This settlement was intended to resolve thousands of lawsuits claiming that Johnson & Johnson’s talc-based products, including its iconic baby powder, caused ovarian cancer in users.
The judge’s decision means that Johnson & Johnson will now have to face these lawsuits in court, potentially leading to a lengthy and costly legal battle.
This development has understandably rattled investors, leading to the drop in the company’s share price.
The outcome of these lawsuits will have significant implications not only for Johnson & Johnson’s financial health but also for its reputation and the future of its talc-based products.
PVH Corp soars on strong Q4 earnings
PVH Corp, the parent company of renowned fashion brands Calvin Klein and Tommy Hilfiger, experienced a significant surge in its stock price, jumping 17.4%, following the release of its fourth-quarter earnings report.
The company exceeded market expectations, reporting earnings per share (EPS) of $3.27, excluding items, on revenue of $2.37 billion.
This performance surpassed the consensus estimates of analysts polled by LSEG, who had projected EPS of $3.21 and revenue of $2.33 billion.
The stronger-than-anticipated results can be attributed to several factors, including robust sales of both Calvin Klein and Tommy Hilfiger products, particularly in international markets.
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