2025-04-23 21:03
NEW YORK, April 23 (Reuters) - Making sense of the forces driving global markets By Alden Bentley, Americas Finance and Markets Breaking News Sign up here. Editor. Jamie is away so I'll provide a round-up of today's main market moves below. I'd love to hear from you, so please reach out to me with comments at [email protected] , opens new tab. If you have more time to read today, here are a few articles I recommend to help you make sense of what happened in markets. Today's Key Market Moves Wall Street extends rebound as trade war fears subside The bounce in U.S. stocks gained momentum on Wednesday as the Trump administration turned down the heat on its trade war with China that has so rattled markets, while the president distanced himself from his own calls for the immediate termination of Federal Reserve chair Jerome Powell. At one point Wall Street's indexes were up more than 3%, with the S&P 500 hitting a two-week high, after a Wall Street Journal report cited a senior White House official as saying that U.S. tariffs on China were likely to come down to between roughly 50% and 60%. There was talk of short covering even as investors were loathe to buy into a full-recovery scenario. They remain distrustful after the selloff on U.S. President Donald Trump's on-again, off-again tariff declarations since April 2 earned the Nasdaq a bear-market label, the S&P 500 nearly so, and sent investors rushing out of dollar-based assets like Treasury bonds, which had been trusted safe-havens. Late Tuesday, Trump dialed back his attacks on the Fed chief, which helped futures build on a recovery. "I have no intention of firing him," Trump said at the Oval Office. "I would like to see him be a little more active in terms of his idea to lower interest rates." Trump had threatened to remove Powell, who is widely viewed as a stabilizing force in the market, just as his chaotic trade policy most required a disciplined Fed. It also helped that Tesla (TSLA.O) , opens new tab shares jumped almost 6% after CEO Elon Musk said he would significantly scale back his work with the Trump administration to devote more time to running his companies. Even so, the electric carmaker posted a 71% plunge in quarterly net profit. The market seems to welcome any distraction from Trump headlines, if only so it can focus on earnings as the first quarter reporting season gets into full swing. Boeing (BA.N) , opens new tab shares also surged after the planemaker reported a smaller-than-expected quarterly loss. The dollar found a footing, rising to an eight-day high versus the yen and a seven-day high on the euro . The benchmark 10-year Treasury note tried to rally, pushing the yield down to its lowest since April 8, but faded with the yield off just 0.6 bp in late trade. What could move markets tomorrow? Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles , opens new tab, is committed to integrity, independence, and freedom from bias. Trading Day is also sent by email every weekday morning. Think your friend or colleague should know about us? Forward this newsletter to them. They can also sign up here. https://www.reuters.com/markets/global-markets-trading-day-2025-04-23/
2025-04-23 21:02
Chipotle imports face tariffs from Australia, China, and Mexico Menu innovation and tech investments aim to offset higher costs Shares drop 2% despite EPS beat as revenue misses estimates April 23 (Reuters) - Chipotle Mexican Grill (CMG.N) , opens new tab tempered its annual comparable sales growth forecast on Wednesday as the Trump administration's tariffs raise supply chain costs and fan economic uncertainty, prompting Americans to spend less on dining out. President Donald Trump's sweeping tariffson several countries and an escalating trade war with China have fueled fears of a recession in the U.S. and forced companies to pull back their annual expectations as consumers deal with higher costs of living. Sign up here. "In February, we began to see that elevated level of uncertainty felt by consumers. Consumers were saving money because of concerns around the economy, and reducing restaurant visits. These trends continued into April," CEO Scott Boatwright said on a post-earnings call. Chipotle's comparable restaurant sales fell for the first time in more than four years to 0.4% in the quarter ended March 31. Trump's newly enacted tariffs, including those on aluminum, as well as broad-based 10% levies will impact Chipotle's cost of sales by about 50 basis points, company executives said. According to a note by TD Cowen analysts, Chipotle imports beef from Australia, which faces a 10% tariff, and paper and packaging material from China, which faces a 145% duty. The company also imports some tomatoes from Mexico, which was hit by a 21% tariff last week. Chipotle now expects annual comparable sales growth in the low single-digit range, compared with a prior forecast for a low- to mid-single-digit rise. The company has also leaned into menu innovation and invested in technology such as produce slicers and three-tiered rice cookers to boost efficiency and soften the hit from higher input costs. Restaurant-level operating margin fell to 26.2% in the first quarter, compared with 27.5% a year ago. "It's a growth story in the consumer discretionary space – specifically, restaurants – as we do see not a lot of strong growers in there. (This is a) crack in the armor," said Don Nesbitt, senior PM at F/m Investments, which holds Chipotle shares. The company's shares were down about 2% in extended trading after its total revenue of $2.88 billion fell short of estimates of $2.95 billion, according to data compiled by LSEG. Its adjusted earnings per share of 29 cents beat estimates by 1 cent. https://www.reuters.com/business/retail-consumer/chipotle-mexican-grill-tempers-annual-comparable-sales-growth-forecast-2025-04-23/
2025-04-23 20:45
WASHINGTON, April 23 (Reuters) - The U.S. Commerce Department said on Wednesday it is opening a probe into national security impacts of imports of medium-duty and heavy-duty trucks and related parts into the United States. The "Section 232" investigation could form the basis of grounds to impose new tariffs on work trucks, buses, vans and other larger vehicles. Sign up here. Tariffs would hurt Mexico, as it is the largest exporter of medium- and heavy-duty trucks to the United States. A study released in January said imports of those larger vehicles from Mexico have tripled since 2019. Canada and Japan are also large exporters of larger trucks to the United States. The Commerce Department is seeking public comment by mid-May on the extent to which domestic production of trucks and truck parts can meet domestic demand and the concentration of U.S. imports of trucks and truck parts from a small number of suppliers. It also wants comments on the impacts on prices "due to foreign unfair trade practices and state-sponsored overproduction". U.S. President Donald Trump earlier this month imposed 25% tariffs on light-duty vehicles and said he planned to impose tariffs of 25% on imported auto parts no later than May 3. The auto industry on Tuesday urged him to abandon the planned tariffs on auto parts. Higher tariffs on commercial vehicles could put pressure on transportation costs just as Trump has vowed to reduce inflation especially on consumer goods like groceries. Tariffs could also affect Chrysler-parent Stellantis (STLAM.MI) , opens new tab, which produces heavy-duty Ram trucks and commercial vans in Mexico. Sweden's Volvo Group (VOLVb.ST) , opens new tab is building a $700-million heavy-truck factory in Monterrey, Mexico, due to start operations in 2026. Mexico is home to 14 manufacturers and assemblers of buses, trucks, and tractor trucks, and two manufacturers of engines, according to the U.S. International Trade Administration. The country is also the leading global exporter of tractor trucks, 95% of which are destined for the United States. https://www.reuters.com/world/us/trump-administration-opens-national-security-probe-into-imported-commercial-2025-04-23/
2025-04-23 20:42
April 23 (Reuters) - The world's biggest gold miner Newmont (NEM.N) , opens new tab beat Wall Street estimates for first-quarter profit on Wednesday as a rally in bullion prices helped offset lower production, sending its shares up 2% after hours. The average price of gold has been rising over the past few quarters and hit record highs in the January to March period, as concerns over U.S. President Donald Trump's erratic tariff plans ignited fears of a global trade war, driving a rush towards the safe-haven allure of the precious metal. Sign up here. Newmont's quarterly average realized price for gold jumped about 41% to $2,944 per ounce, compared with a year ago, while gold production fell 8.3% to 1.54 million ounces, hurt by reduced contributions from its non-core operations. The company bought Australia-based Newcrest for $17.14 billion in 2023 and said in February last year it would divest some non-core assets and trim its workforce to cut debt, which was at $3.22 billion as of March 31. Late last year, Newmont said it would sell its Eleonore mine in Canada to UK-based miner Dhilmar Ltd for $795 million and sell its Musselwhite Gold Mine in Ontario to Orla Mining (OLA.TO) , opens new tab in a deal valued at $850 million. In January, gold miner Discovery Silver (DSV.TO) , opens new tab said it would acquire Newmont's stake in Porcupine Operations in Ontario, Canada, for $425 million. Newmont's quarterly all-in-sustaining costs for gold, an industry metric reflecting total expenses, rose 14.7% to $1,651 per ounce in the January-March quarter due to lower gold production. On an adjusted basis, the company earned $1.25 per share for the quarter ended March 31, compared with analysts' average estimate of 90 cents per share, according to data compiled by LSEG. https://www.reuters.com/markets/commodities/newmont-beats-first-quarter-profit-estimates-2025-04-23/
2025-04-23 20:40
Kazakhstan says oil output levels decided by national interest, not OPEC+ Move signal Kazakhstan's possible exit from producers alliance Saudi Arabia could launch price war LONDON, April 23 - Kazakhstan's public defiance of the OPEC+ oil production alliance could signal its exit from the group and push Saudi Arabia into a painful price war at a precarious moment. The Central Asian country's newly appointed Energy Minister Erlan Akkenzhenov told Reuters on Wednesday that Kazakhstan will prioritise national interests over those of the OPEC+ group when determining its oil production levels, implying the country might not comply with cuts it agreed to as part of a supply deal between major producing nations. Sign up here. This could also be a precursor to Kazakhstan leaving the OPEC+ alliance unofficially led by Saudi Arabia, which has since 2022 agreed on a series of collective production cuts totalling around 5.85 million barrels per day (bpd), or nearly 6% of global production. But the agreement has been far from water-tight, as a number of members have failed to comply with their production targets, including Iraq and the United Arab Emirates. Kazakhstan has arguably been the worst offender recently. Its crude oil production surged in March to 1.85 million bpd from an average of 1.74 million bpd in 2024, after production began at the extension of the country’s giant Tengiz field at the start of the year, far exceeding the country’s output quota of 1.468 million bpd, according to OPEC data. The OPEC+ alliance has been highly effective in maintaining Brent oil prices in a steady range of $70 to $90 a barrel in recent years. But the lack of compliance among OPEC+ members has rankled Saudi Arabia, which requires an oil price of over $90 a barrel in order to balance its budget, according to IMF estimates. Riyadh and other producers sent a shot across the bows of non-compliant members earlier this month when they announced an unexpected deal to accelerate plans to increase output by 411,000 bpd in May, a three-fold increase from a previous plan. Saudi also sharply cut its oil selling prices for May for Asian buyers to the lowest in four months, further challenging other producers. An extended price war, such as the one Saudi launched in 2014 in an attempt to curb surging U.S. shale production, would make many oilfields unprofitable, leading producers to shut in production, giving low-cost producers bigger market share. The increased output deal initially appeared to achieve its aim and was followed by a detailed compensation plan , opens new tab that would have seen Kazakhstan and Iraq implement deep production cuts. But Wednesday's events suggest Kazakhstan is not going to play ball and will maintain production at elevated levels. NIGHTMARE SCENARIO This is a nightmare scenario for the OPEC+ alliance. Kazakhstan's defiance could push other members to reconsider the benefits of complying with the supply deal, potentially leading them to contemplate leaving the alliance. That, in turn, could lead to a surge in production that could crater oil prices if production in other non-OPEC+ countries such as the United States and Brazil rises. Saudi Arabia and its allies will likely immediately launch a broad diplomatic push to convince Kazakhstan to comply with the deal. But if Riyadh fails to assert discipline that way, it could try to compel Kazakhstan and other errant OPEC+ members to fall in line by flooding the market with more cheap oil, effectively launching a price war. Indeed, sources familiar with the matter told Reuters on Wednesday that several OPEC+ members will suggest accelerating oil output hikes in June for a second consecutive month. Adding so much oil into an already well-supplied market is risky, especially considering the global economic turmoil seen amid the escalation of U.S. President Donald Trump's global trade war. Saudi and other Gulf countries have some of the world's lowest oil production costs and could therefore weather a price war better than others. At the same time, they would not want to see prices collapse for an extended period of time because that would weigh heavily on their national finances. The OPEC+ alliance has shown increasing signs of weakness this year. Kazakhstan’s defiance could signal that a split is coming. ** The opinions expressed here are those of the author, a columnist for Reuters. ** Want to receive my column in your inbox every Thursday, along with additional energy insights and trending stories? Sign up for my Power Up newsletter here. https://www.reuters.com/business/energy/kazakhstans-opec-defiance-could-push-saudi-into-painful-price-war-bousso-2025-04-23/
2025-04-23 20:40
Fire is no longer threatening populated areas State has seen almost twice as many wildfires as usual so far in 2025 Affected area is about 15 miles from the Atlantic Ocean Soaking rainfall needed to stop fires April 23 (Reuters) - A fast-growing wildfire was burning in New Jersey's Pinelands near its Atlantic Ocean beach towns on Wednesday and threatened to become the largest in the state in about 20 years, officials said on Wednesday. The Jones Road Wildfire had spread to 12,500 acres (50.6 sq km) on Wednesday afternoon and was 40% contained, the New Jersey Forest Fire Service said in a press conference. Sign up here. It was no longer threatening populated areas but a "soaking rainfall" is needed to stop the fire, officials said. The cause of the fire was under investigation. The blaze could become the largest in New Jersey in about 20 years, said Shawn LaTourette, the state's commissioner of environmental protection, at a press conference. A fire in May 2007 in the same area consumed 17,000 acres. Embers from the fire sparked several small blazes near a decommissioned Oyster Creek nuclear power plant in Waretown, according to state officials. The plant, owned by Holtec International, shut down in 2018. Lieutenant Governor Tahesha Way declared a state of emergency beginning at 7 a.m. on Wednesday. She was filling in for Governor Phil Murphy, who was on an overseas trip. "At this time, we have no loss of life and no homes have been harmed," Way said on X on Wednesday morning. So far in 2025, New Jersey has experienced nearly twice as many wildfires as in the same period last year, with 662 wildfires burning over 16,500 acres. That compares with about 310 wildfires burning 315 acres in the first four months of 2024, Bill Donnelly, the chief of the forest fire service, said at the briefing. On average, 1,500 wildfires damage or destroy 7,000 acres of the state's forests each year, the New Jersey Forest Fire Service said on its website. The blaze started on Tuesday in the Greenwood Forest Wildlife Management Area near Lacey, Ocean and Barnegat townships in Ocean County, about halfway between Asbury Park and Atlantic City. The area is about 15 miles (24 km) inland from the Atlantic Ocean shoreline. About 1,300 homes were endangered, and between 3,000 and 5,000 people were under mandatory or voluntary evacuation orders, which were lifted on Wednesday morning. In addition, a 17-mile stretch of the Garden State Parkway, a major north-south highway, was closed on Tuesday but reopened on Wednesday morning Hundreds of firefighters have been working on the blaze for almost 24 hours straight, Donnelly said. To fully stop the fire, crews need a "soaking rainfall" which might come this weekend, said John Cecil with the state's environmental protection department. https://www.reuters.com/business/environment/new-jersey-wildfire-could-become-states-largest-20-years-2025-04-23/
