Next week may have many investors on edge as the latest tariff threads could lead to more losses in next week’s trading session. Monday will be closed for the holiday.
- Tariff threats pushed stocks lower on Friday with every index falling roughly 2.5% for the week.
- The S&P 500 was 5.6% below the record level it saw three months ago.
- Gold surged as bitcoin slightly retraced.
- Treasury yields sharply went lower and the dollar dragged.
What is One Analyst Saying about Tariff Threats Against Apple?
Analysts largely see tariff threats as detrimental, especially when it comes to global trade and economic stability.
Wedbush analyst Dan Ives has fired back against President Trump’s tariff threat against Apple.
President Donald Trump demanded that Apple and other smartphone makers manufacture their phones in the United States- or face a 25% tariff instead.
“I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.” -Trump posted Friday morning on Truth Social.
Apple shifting production to the U.S. is “a fairy tale” despite President Trump threatening a tariff on iPhones made outside the U.S., Wedbush said. Wedbush estimates such a move would result in an iPhone with a price tag of $3,500, while the iPhone 16 currently costs $799
In a Friday note, Ives mentioned how Trump’s demand to shift production to the U.S. is “not realistic” since it would take at least 5 to 10 years to onshore manufacturing.
“We believe the concept of Apple producing iPhones in the [U.S.] is a fairy tale that is not feasible.” -Dan Ives.
Ives reiterated an “Outperform” rating on Apple with an above-average price target of $270.
Analysts are generally positive on Apple with a prevailing consensus of “BUY” or “STRONG BUY” ratings.
Steel Shined in the Spotlight
President Trump said Friday that U.S. Steel will keep its headquarters in Pittsburgh as part of what he called a “planned partnership” between the steelmaker and Japan-based Nippon Steel. which has sought to buy it.
Nippon Steel’s almost $15 billion bid to buy U.S. Steel was blocked by former President Joe Biden. When Trump became president, the deal was subject to another national security review by the Committee on Foreign Investment in the United States.
“I am proud to announce that, after much consideration and negotiation, US Steel will REMAIN in America, and keep its Headquarters in the Great City of Pittsburgh,” the president wrote on Truth Social.
“For many years, the name, ‘United States Steel’ was synonymous with Greatness, and now, it will be again. This will be a planned partnership between United States Steel and Nippon Steel, which will create at least 70,000 jobs, and add $14 Billion Dollars to the U.S. Economy.”
Shares of U.S. Steel jumped 21% on the news. “President Trump is a bold leader and businessman who knows how to get the best deal for America, American workers and American manufacturing,” the company stated.
“U. S. Steel will remain American, and we will grow bigger and stronger through a partnership with Nippon Steel that brings massive investment, new technologies and thousands of jobs over the next four years,” the company added. “U. S. Steel greatly appreciates President Trump’s leadership and personal attention to the futures of thousands of steelworkers and our iconic company.”
The President will hold a rally at U.S. Steel in Pittsburgh on May 30th.
The Nuclear Space Went Nuclear
Nuclear energy stocks soared Friday after President Donald Trump signed executive orders attempting to speed up permitting for reactors and expand domestic enriched uranium production.
The executive orders support the nuclear energy sector and put in place a “total and complete reform” of the Nuclear Regulatory Commission, or NRC. The executive orders also look to speed up the deployment of new nuclear power reactors in the U.S.
Shares of Oklo (OKLO), Constellation Energy (CEG), and Nano Nuclear (NNE) all headed north on the news.
The Week Ahead:
Monday (5/26): No reports. Markets will be closed for celebration of Memorial Day.
Tuesday (5/27): Consumer Confidence, Durable Goods, FHFA Housing Price Index, S&P Case-Shiller Home Price Index. Earnings expected are PDD Holdings Inc. (PDD), Autozone Inc. (AZO), Bank of Nova Scotia (BNS), Okta Inc. (OKTA) Sociedad Quimica y Minera de Chile SA (SQM), Box Inc. (BOX).
Wednesday (5/28): MBA Mortgage Applications Index. Release of minutes from the May 6-7 meeting of the U.S. Federal Reserve. Earnings expected are Bank of Montreal (BMO), DICK’s Sporting Goods (DKS), Kingsoft Cloud Holdings (KC), Abercrombie & Fitch Co. (ANF), Capri Holdings Ltd. (CPRI), Nvidia Corp. (NVDA), Salesforce Inc. (CRM), Synopsys Inc. (SNPS), Veeva Systems (VEEV), Agilent Technologies Inc. (A), HP Inc. (HPQ).
Thursday (5/29): Continuing Claims, EIA Crude Oil Inventories, EIA Natural Gas Inventories, GDP – Second Estimate, Initial Claims, Pending Home Sales. Earnings expected are Royal Bank of Canada (RY), Canadian Imperial Bank of Commerce (CM), Burlington Stores Inc. (BURL), Best Buy Co. (BBY), Costco Wholesale Corp. (COST), Dell Technologies (DELL), Marvell Technologies Inc. (MRVL), Zscaler Inc. (ZS).
Friday (5/30): Advanced International Trade in Goods, Advanced Retail Inventories, Chicago PMI, PCE Prices, Personal Income, Personal Spending, University of Michigan Consumer Sentiment – Final. Shoe Carnival Inc. (SCVL) will report earnings.
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