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Most Trump tariffs ruled illegal by appeals court

The United States Court of Appeals for the Federal Circuit, which handles appeals for the Court of International Trade, has ruled against President Trump and his administration on tariffs levied against other countries.

The president’s tariffs were launched under the International Emergency Economic Powers Act, but the courts majority was in agreement with the lower court that the act does not in fact give the president the authority to implement the tariffs in the manner that he did.

However, the court permitted the tariffs to stay in place until mid-October, allowing for a request for an appeal to reach the Supreme Court.

“We agree that IEEPA’s grant of presidential authority to regulate imports does not authorize the tariffs imposed by the Executive Orders, we affirm,” the court wrote in a 7-4 decision.

Tariffs have been a major narrative driving markets over the past several months, and the decision is a legal blow to a signature element of the president’s economic policy.

The tariffs rejected by the ruling include the 10% charge placed on imports from almost all countries, as well as additional tariffs imposed on countries the president deemed to have unfair trade restrictions, and charges put in place on goods imported from Canada, China, and Mexico.

The president’s tariffs were launched under the International Emergency Economic Powers Act, but the courts majority was in agreement with the lower court that the act does not in fact give the president the authority to implement the tariffs in the manner that he did.

However, the court permitted the tariffs to stay in place until mid-October, allowing for a request for an appeal to reach the Supreme Court.

“We agree that IEEPA’s grant of presidential authority to regulate imports does not authorize the tariffs imposed by the Executive Orders, we affirm,” the court wrote in a 7-4 decision.

Tariffs have been a major narrative driving markets over the past several months, and the decision is a legal blow to a signature element of the president’s economic policy.

The tariffs rejected by the ruling include the 10% charge placed on imports from almost all countries, as well as additional tariffs imposed on countries the president deemed to have unfair trade restrictions, and charges put in place on goods imported from Canada, China, and Mexico.

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SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

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Nike sinks to lowest level since 2014 after warning of “challenged” sales environment in Q4 report

Did Nike do it?

Investors had a mixed reaction after the global sports apparel company reported its fourth quarter earnings on Tuesday after the bell. Shares initially rose 5% as Nike beat out Wall Street expectations amid a hefty tariff refund bonus. However, the stock then sank to its lowest level since August 2014 in postmarket trading.

Here are the Q4 numbers:

  • Revenue of $11.0 billion (estimate: $10.8 billion).

  • Adjusted earnings per share of $0.20 (estimate: $0.12).

Ahead of this report, Nike warned that results would be flattered by a one-time tariff refund (now estimated at roughly $0.52 per share for the bottom line). That gave the company an extra cushion in snapping its streak of seven quarters of year-over-year profit declines.

Over the past year, the company had been punished by tariffs on imported goods, stagnant consumer spending, and increasing competition from other footwear brands like New Balance, Adidas, and Hoka.

Outgoing CFO Matthew Friend deemed it an “increasingly challenging operating environment, where sell-through remains challenged.”

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