April 18, 2025
Domestic financial markets are closed today in observance of Good Friday.
U.S. equities closed mixed on Thursday, capping a choppy session that saw a rotation out of mega-cap tech into cyclicals and defensives. The Dow fell 1.33% to 37,352.41, pressured by weakness in large-cap industrials and healthcare. The S&P 500 edged up 0.13% to 5,011.46, while the Nasdaq dipped 0.13% to 15,839.64 as semis and big tech lagged. The Russell 2000 gained 0.92% to close at 2,007.11, helped by strength in regional banks and small-cap cyclicals. The equal-weighted S&P 500 outperformed the cap-weighted index by ~60 basis points, underscoring the broader participation outside of the Mag 7.
Trade developments and Fed independence concerns remained central market drivers. President Trump said there was “big progress” in trade talks with Japan and noted optimism around reaching deals with the EU and other allies before the 90-day tariff pause ends. However, he also sparked a firestorm after publicly calling for Fed Chair Jerome Powell’s termination, suggesting he could remove him quickly if desired. The White House later downplayed the remarks, and reports noted internal resistance from Treasury Secretary Bessent and others.
Economic data was mixed. The April Philadelphia Fed manufacturing index plunged to -26.4, the lowest since April 2023, with sharp declines in new orders and shipments. Meanwhile, March housing starts fell more than expected to a 1.324M SAAR, though permits offered a modest beat. Weekly initial jobless claims came in better than expected at 215K, signaling continued labor market resilience. Globally, the ECB delivered a widely expected 25 bp rate cut and warned that U.S. tariffs pose a supply-side threat to eurozone growth. The dollar was flat, gold dipped 0.5% after a 3.5% surge Wednesday, and WTI crude gained 3.5%, helping lift energy stocks.
Company News by Sector
Health Care
- LLY (+14.3%) soared after Phase 2 data showed its oral GLP-1 weight-loss drug matched injectables, accelerating its obesity and diabetes treatment pipeline.
- UNH (-22.4%) slumped after missing Q1 earnings/revenue and cutting FY guidance, citing rising utilization in Medicare Advantage and reimbursement shifts at Optum.
- ABT (+2.8%) beat on EPS behind strength in medical devices, though COVID testing and China performance lagged expectations.
Information Technology
- TSM (+) topped Q1 expectations, guided Q2 above consensus, and emphasized no change in customer behavior despite tariff risk, highlighting AI-driven demand.
- GOOGL (-1.4%) fell after a U.S. judge ruled it violated antitrust laws in its online ad business, boosting the odds of regulatory breakup.
- FIS (+8.7%) surged after agreeing to sell Worldpay to GPN (-17.4%) for $22.7B, while acquiring GPN’s Issuer Solutions business for $13.5B.
- INTC (-1.6%) declined after TSMC denied ongoing JV or licensing talks with the chipmaker.
Financials
- SCHW (+) reported improved Q1 interest-earning assets and daily trading activity.
- HBAN (+3.1%) and KEY (+1.5%) beat expectations and reaffirmed FY guidance, citing loan growth and stable net interest income.
- MMC (-4.9%) declined as Q1 organic growth lagged in both consulting and insurance segments.
- HTZ (+43.9%) extended gains after CNBC confirmed Pershing Square now holds ~19.8% of the company.
Industrials
- CSX (+1.2%) missed on revenue and operating income but guided optimistically on volume recovery and operational improvement.
- MAN (-19.1%) posted a large EPS miss, citing weakness in European and North American labor markets; Q2 EPS guide missed by ~30%.
- SNA (-8.0%) missed estimates and flagged macro-related softness in U.S. tool sales and military contracts.
- LMT (-2.7%) named Evan Scott as new CFO, replacing Malave; company said guidance would be reaffirmed next week.
Consumer Discretionary
- DHI (-) missed on earnings, cited a slower-than-expected spring selling season, and lowered FY guidance.
- F (-) said vehicle price hikes could come without tariff relief.
- PINS (-) was in the spotlight following reports it had explored major ad-related acquisitions.
Consumer Staples
- L’Oréal (+) beat Q1 expectations with 3.5% sales growth, helped by resilience in luxury and skin care.
- Broader sector outperformed amid renewed focus on defensive plays and rising food regulation scrutiny in the U.S.
Real Estate
- REXR (+) posted a Q1 beat on strong leasing volumes and maintained FY25 FFO guidance.
- SLG (+) exceeded FFO estimates with improved occupancy trends.
Materials
- AA (-7.0%) beat EBITDA but missed on revenue and reported minimal free cash flow. Tariffs contributed ~$105M in Q1 costs, delaying restart decisions at some facilities.
Eco Data Releases | Friday April 18th, 2025
Markets are closed today
S&P 500 Constituent Earnings Announcements | Friday April 18th, 2025
Markets are closed today
Data sourced from FactSet Research Systems Inc.
