Stock Market Live May 27: Trump Postpones 50% EU Tariff, S&P 500 (VOO) Soars
President Trump over the weekend said he will push back imposition of a threatened 50% tariff on imports from the European Union. The tariff, which was to go into effect on June 1, will now not take effect until July 9. European Commission president Ursula von der Leyen, apparently asked for the delay, and the […] The post Stock Market Live May 27: Trump Postpones 50% EU Tariff, S&P 500 (VOO) Soars appeared first on 24/7 Wall St..
President Trump over the weekend said he will push back imposition of a threatened 50% tariff on imports from the European Union. The tariff, which was to go into effect on June 1, will now not take effect until July 9. European Commission president Ursula von der Leyen, apparently asked for the delay, and the implication of a request for a delay rather than a repeal is that the EU must be interested in negotiating a trade deal which would lower the tariff rate even more, once it goes into effect (whenever that is).
Investors are thrilled with the news, and the Vanguard S&P 500 ETF (NYSEMKT: VOO) opened 1.2% higher Tuesday morning.
Earnings
Earnings are starting off slow this week, with few companies reporting this morning. S&P 500 component company Autozone (NYSE: AZO) reported mixed results, with Q3 revenue of $4.5 billion exceeding expectations and domestic same store sales rising 5%, but earnings of $35.36 falling short of Wall Street forecasts. Autozone stock is up less than 1%.
Later today, investors will be looking to see how Okta (Nasdaq: OKTA) performs when it reports earnings after the bell. Later in the week we’ll hear from giants including Nvidia (Nasdaq: NVDA) and Costco (Nasdaq: COST).
Analyst Calls
Industrial companies are in focus in upgrades/downgrades action today. Goldman Sachs just upgraded Terex (NYSE: TEX) and S&P component Cummins (NYSE: CMI) to buy. Goldman sees tariffs as the major worry hear, but says Terex’s aerials segment earnings have hit bottom amid a 30% production cut. At Cummins, the banker notes US truck demand is falling and inventory levels are now down a similar 30% year over year, while power systems profitability is improving.
Baird cut Leidos (NYSE: LDOS) stock to neutral on worries over weaker bookings and DOGE’s continuing threat to companies dependent on government contracts.
The post Stock Market Live May 27: Trump Postpones 50% EU Tariff, S&P 500 (VOO) Soars appeared first on 24/7 Wall St..
