General Motors, Constellation Brands whipsaw as conflicting reports on Trump tariffs confuse traders

Yesterday, after President Donald Trump committed to tariffs of 25% on imports from Mexico and Canada starting February 1, the S&P 500 speedran this cycle in approximately 21 minutes to finish up 0.5% on Thursday:

Trump Hot Air Cycle — Source: Sherwood News

On Friday, stocks of some companies that could be most impacted if Trump follows through on this measure rallied on reports that the imposition of these tariffs would be delayed by a month. They then gave up that advance — and then some — after White House Press Secretary Karoline Leavitt told reporters, “The February 1 deadline that President Trump put into place in a statement several weeks ago continues.”

General Motors, which made 900,000 cars in Mexico, appears to be the stock most sensitive to this chatter, though Constellation Brands (seller of Corona and Modelo) is also getting hit.

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Max Knoblauch9m

Ford raises its full-year guidance, receives $1.3 billion tariff refund

Ford reported its first-quarter results after markets closed on Wednesday. The automaker’s shares climbed roughly 7% in after-hours trading on the news.

For Q1, Ford reported:

Adjusted earnings of $0.66 per share, compared to the $0.18 per share expected by Wall Street analysts polled by FactSet. The figure includes Ford’s tariff reimbursement.
$43.25 in total revenue, vs. the $42.66 billion consensus. Automotive revenue came in at $39.8 billion, compared to estimates of $38.9 billion.
A $1.3 billion tariff refund.

Ford boosted its full-year guidance for adjusted earnings before interest and taxes to between $8.5 billion and $10.5 billion, up from between $8 billion to $10 billion.

Late last year, Ford announced it would take $19.5 billion in charges — one of the largest write-downs ever — relating mostly to its EV business. $7 billion of those charges will be spread across this year and next, the company said.

Earlier this month, Ford recorded an 8.8% drop in Q1 sales from the same period last year, a similar result to Detroit rival GM, which posted a 9.7% sales drop.

Jon Keegan17m

Microsoft beats on revenue and earnings in Q3

Microsoft reported strong Q3 earnings after the bell Wednesday, posting sales of $82.9 billion for the quarter, beating FactSet analyst estimates of $81.4 billion. Earnings per share were $4.27 handily beating estimates of $4.05.

Azure (and other cloud revenue) increased 40% on year.

Microsoft reported a $627 billion backlog of commercial bookings (known as RPO), growing 99%.

In the earnings release, Microsoft CEO Satya Nadella said:

“Our AI business surpassed an annual revenue run rate of $37 billion, up 123% year-over-year.”

Microsoft shares whipsawed in after-hours trading.

This is a developing story.

Max Knoblauch

20m

Carvana reports better-than-expected Q1 sales, gross profit per vehicle

Carvana reported its first-quarter earnings after markets closed on Wednesday.

Luke Kawa

25m

Amazon reports strong Q1 results with mixed Q2 guidance

The e-commerce and cloud giant just released quarterly results.

Tasha Matsumoto

26m

The S&P 500 finishes marginally lower while oil climbs amid war uncertainty

Stocks pared steeper losses as a somewhat hawkish shift within the central bank sent stocks to their lows of the day.

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