🚘 Tesla Taps The Earnings Brake

Good afternoon! Well, the passing of Pope Francis has left many feeling a little lost, but for others? It’s a goldmine of betting opportunities. Millions are flocking to online prediction markets, tossing down cash like it’s bingo night at the Vatican. With Cardinal Pietro Parolin currently leading the odds, it seems some folks are more interested in the next papal power play than offering their prayers.

In today’s digital age, the centuries-old mystery of who becomes the next pope has gone full internet. Instead of hushed cathedral gossip, it’s all online odds and prediction markets, where watching papal succession feels more like fantasy football than divine intervention. A little morbid? Yes — but hey, it’s an exciting time to ponder who’ll inherit the keys to St. Peter’s!

MARKETS

• Stocks soared on Tuesday as investors grabbed the chance to bounce back from Monday's sharp declines, buoyed by growing optimism over U.S.-China trade relations. The White House's encouraging remarks about potential tariff negotiations sparked renewed interest, with traders feeling more confident in a resolution that could ease tensions.

• The Dow Jones jumped over 1,000 points, reflecting a robust 2.66% gain, while the S&P 500 climbed 2.51% and the Nasdaq saw a 2.71% increase. This rally came as major tech stocks began to recover some of their recent losses, with traders eager to capitalize on the upbeat sentiment surrounding the market’s future.

STOCKS
Winners & Losers

What’s up 📈

• Equifax soared 13.84% following strong results for the credit rating company, as well as its announcement of a $3 billion buyback program. ($EFX)

• Calix surged 13% after posting strong earnings and optimistic guidance. Calix earned 19 cents per share, excluding items, on $220.2 million in revenue. ($CALX)

• CoreWeave jumped 8.74% after several Wall Street analysts initiated coverage of the newly public cloud computing company. ($CRWV)

• 3M gained 8.12% after the industrial manufacturing giant beat Wall Street’s expectations in the first quarter. ($MMM)

• Sportradar rallied 9% on the back of Bank of America’s double upgrade to buy from underperform. ($SRAD)

• Hertz rose more than 8% as shares have more than doubled since Bill Ackman’s Pershing Square revealed a 19.8% stake in Hertz. ($HTZ)

• BP managed to gain 2.81% after regulatory filings revealed that Elliott Investment Management has accrued a 5% stake in the oil giant. ($BP)

• Amazon rose 3.5% a day after Wells Fargo analysts revealed that the tech giant has paused some of its data center leases. ($AMZN)

• GE Aerospace gained 6.07% following the release of its first-quarter financial results. ($GE)

• Verra Mobility popped 4.29% on the heels of Baird’s upgrade to outperform from neutral. ($VRRM)

What’s down 📉

• Northrop Grumman dove 12.66% after the company cut its full-year guidance for earnings per share. ($NOC)

• RTX dropped nearly 10% due to management comments about the expected effects of tariffs rattling investors, despite better-than-expected earnings. ($RTX)

• Halliburton tumbled 5.57% after announcing that President Trump's tariffs would affect its second-quarter earnings per share. ($HAL)

EARNINGS
Tesla Signals Caution, Says It Will Revisit 2025 Growth Outlook

esla walked back its full-year sales forecast in its latest earnings report, saying it’ll “revisit” 2025 guidance next quarter. The EV giant posted adjusted earnings of 27 cents per share, well below Wall Street’s 39-cent estimate, and reported a 9% revenue dip to $19.3 billion. Net income? Down a whopping 71%. Price cuts, factory downtime, and slowing demand took a serious toll. Tesla is up after-hours by 4.76%.

Tariff Troubles and Political Tangles

Global trade tensions aren’t helping. Tesla warned that rising tariffs are stressing supply chains and lifting costs, especially for its energy business, which relies on Chinese battery cells. While Tesla assembles cars in the U.S., it still sources many parts abroad. And with Musk now leading Trump’s Department of Government Efficiency, Tesla’s policy messaging is walking a careful line.

Musk’s political alignment with Trump and far-right European figures is fueling consumer pushback. Showrooms and charging stations have faced protests and vandalism, and a growing anti-Tesla movement is urging customers to ditch the brand. Q1 deliveries fell 13% globally, with sales plunging in China, Germany, and even Tesla’s home turf—California.

Eyes on Autonomy and Energy

With its core EV business under pressure, Tesla is betting on what’s next: AI, robotaxis, and energy storage. It’s planning a June pilot launch of driverless taxis in Austin and expects its humanoid robot, Optimus, to enter test production this year. Meanwhile, energy revenue jumped 67% to $2.7 billion, offering one of the few bright spots in a rocky quarter.

The Road Ahead: Tesla’s stock is down 41% year-to-date, and Q1 marked its worst quarter since 2022. The company says shifting trade policies and “changing political sentiment” could continue to weigh on demand. With growth uncertain and the brand under pressure, Tesla’s next move may be its most critical yet.

NEWS
Market Movements

• ☁️ CoreWeave Receives “Buy” Rating Amid AI Growth: CoreWeave's stock is climbing after major banks initiated coverage, citing its leading position in the AI infrastructure market. Bank of America set a target price of $42, highlighting strong growth potential. ($CRWV)

• 🤖 Amazon Halts AI Data Center Expansion Plans: Amazon is pausing expansion of AI data centers in response to economic uncertainties, though it denies any major shifts in strategy. This follows similar moves by its competitors to reassess their growth plans. ($AMZN)

• 📉 Northrop Grumman Faces Stock Drop After Poor Q1 Report: Northrop Grumman's stock plummeted after it reported disappointing first-quarter earnings and lowered its full-year EPS forecast. The company blames increased production costs for new aircraft. ($NOC)

• 📦 DHL Halts High-Value US Shipments Over Tariff Changes: DHL has temporarily suspended shipments valued over $800 to the U.S. due to new customs regulations causing delays. This move follows similar actions taken by Hong Kong’s postal service amid tariff disputes. ($DPSTF)

• 🛂 Palantir's Controversial Role in ICE Deportations: Leaked communications suggest Palantir is assisting ICE in deportation efforts, including locating individuals marked for removal. The company's involvement has drawn criticism, but its commercial head defends the partnership. ($PLTR)

• ⛏️ Barrick Gold Divests Alaska Mine Stake: Barrick Gold is selling its 50% interest in an Alaskan gold project for up to $1.1 billion, leveraging record-high gold prices. The deal involves Novagold and Paulson Advisers as buyers. ($GOLD)

• 💊 Walgreens Settles Opioid Claims for $350M: Walgreens has agreed to pay up to $350 million to settle claims of unlawfully filling opioid prescriptions, with $300 million due immediately. The remaining $50 million is contingent upon the company's sale or merger before 2032. ($WBA)

• 🥤 RFK Jr. Plans Phaseout of Petroleum-Based Food Dyes: Health Secretary RFK Jr. is targeting the elimination of 8 petroleum-based food dyes by the end of next year, affecting companies like General Mills, Kraft Heinz, and PepsiCo. ($GIS, $KHC, $PEP)

• 💵 Airbnb Displays Full Pricing Ahead of Regulations: Airbnb will now show total prices, including fees and taxes, by default. This change comes ahead of new federal rules aiming to ban hidden fees effective May 12. ($ABNB)

• 🌱 Sam Altman Steps Down from Oklo Board: Sam Altman is resigning as chairman of Oklo, a nuclear startup, to provide the company with more flexibility in pursuing strategic partnerships. Oklo's shares dropped 12% following the news.

• 📉 Meta Braces for $7B Hit Due to China Tariffs: Meta's advertising revenue could drop by $7 billion this year as Chinese retailers reduce ad spending amid the U.S.-China trade dispute. Analysts warn about the impact of escalating tensions on the company's financials. ($META)

COMMODITY
Gold Slides From $3,500 on Profit Booking After Rally to Record

Gold’s historic rally hit a speed bump. After surging past $3,500 an ounce for the first time ever, the precious metal slipped 1.2% as traders cashed in on a nearly 30% year-to-date run. That pullback comes just days after gold added $500 in a span of eight trading sessions, a meteoric rise driven by market chaos and investor anxiety.

Technical indicators also flashed warning signs—gold’s 14-day relative strength index climbed above 78, well past the “overbought” threshold. In other words, the rally may have been too hot to handle.

Trump vs. Powell Sparks a Flight to Safety

Behind the gold rush: politics. Specifically, President Trump’s social media attacks on Fed Chair Jerome Powell, whom he dubbed “Mr. Too Late” while demanding immediate rate cuts. That rattled investor confidence in the Fed’s independence and sent money fleeing from U.S. stocks and bonds toward safer ground.

With Treasury markets on shaky footing and the dollar sliding, many turned to gold as the last “true” safe haven. The metal has historically performed well in moments of economic stress—and right now, stress is in no short supply.

Central Banks Are All In

It’s not just retail investors buying the dip—or rather, the spike. Central banks have been heavy buyers, with China, India, Turkey, and Poland all beefing up their reserves. Central bank purchases topped 1,000 metric tons in 2024, and 2025 is already tracking close behind.

Meanwhile, gold-backed ETFs have seen massive inflows, and demand in China has gone so wild that gold ATMs—yes, really—are now spitting out cash in exchange for jewelry.

The $4,000 Question

Where does gold go from here? JPMorgan and Goldman Sachs both say $4,000 is in sight by mid-2026, with prices potentially overshooting that if the economic uncertainty lingers.

Still, analysts caution that the short-term rally might be overextended. Whether gold cools off or continues to shine, one thing is clear: the yellow metal is back in fashion—and this time, it’s not just jewelry buyers paying attention.

Calendar
On The Horizon

Tomorrow

It's been a rather calm week in the economic data scene, but the anticipation mounts as we gear up for tomorrow's highlight: the flash PMI reading for April.

For those wondering, PMI stands for Purchasing Managers' Index, and it’s exactly how it sounds—a survey involving key industry players who know the ins and outs of economic metrics like employment rates, pricing trends, new orders, shipping costs, and inventory levels.

What amps up the intrigue of this report is that we won’t just get the scoop on the US; we’ll also get insights from the UK, Japan, Germany, France, and the entire Eurozone. This is our first peek into the global economic landscape since tariffs started leaving their mark earlier this month, and it should provide a clearer picture of the potential fallout.

And don’t forget, the Fed is set to drop its Beige Book on Wednesday, alongside new home sales figures.

Now, onto earnings—there’s quite a lineup: IBM, AT&T, Philip Morris International, ServiceNow, Thermo Fisher Scientific, Boston Scientific, NextEra Energy, GE Vernova, Lam Research, O'Reilly Automotive, General Dynamics, Texas Instruments, Newmont, and Volvo. Heads up before the market opens!

Before Market Open:

• In the latest twist of the US vs. China trade saga, Boeing finds itself in hot water. Last week, the Chinese government instructed airlines to halt deliveries of Boeing aircraft and is likely pulling the plug on future orders. The burning question is whether those planes lined up for delivery to China can find new homes. Add in lingering concerns about the company’s recovery from notorious mechanical hiccups, and it might be a less-than-pleasant earnings call for management. ($BA)

After Market Close:

• Chipotle Mexican Grill will find itself under the spotlight, as it navigates the impact of US tariffs on the avocado supply from Mexico—132 million pounds utilized last year, a significant chunk of which hails from south of the border. While the chain has made strides in diversifying its guacamole sources, these recent tariffs are still expected to sting. Investors will be eager to hear how the company plans to address this and its ambitions to open its first restaurant in Mexico as part of its expansion strategy. ($CMG)

NEWS
The Daily Rundown

• ⚖️ DOJ Pushes for Google's Browser Sale in Antitrust Case: The Department of Justice has urged a judge to compel Google to divest its Chrome browser as part of an ongoing antitrust case against the tech giant. This would mark a significant move toward restoring competition in the sector, should the court agree to the demand.

• 🚀 Chipotle Announces Plans to Open First Location in Mexico by 2026: In a bid for international expansion, Chipotle has revealed plans to open its first restaurant in Mexico by early 2026, aiming to tap into a market already saturated with local taquerias. Despite skepticism about its chances of success, Chipotle remains optimistic about its menu's appeal.

• 🤑  Dollar Tumble Amid Trump’s Threats to Powell: President Trump's recent threats to fire Federal Reserve Chairman Jerome Powell over interest rates have led to a sharp decline in the US dollar. Investors are concerned about the potential instability this could bring as all major stock indexes fell, with gold prices hitting a record high amid the uncertainty.

• 🇨🇳 China Warns of Retaliation Against Nations Making US Trade Deals: China has issued a warning to other countries against entering trade agreements that disadvantage its interests, threatening countermeasures. This comes amid an escalating trade war, where countries are attempting to navigate concessions to avoid tariffs imposed by the Trump administration.

• 🏅 Sharon Lokedi Wins Boston Marathon, Collects $200K in Prize Money: Kenyan runner Sharon Lokedi took home $200,000 for her remarkable victory at the Boston Marathon, setting a new course record. Meanwhile, John Korir also achieved historic recognition in the men's race, finishing with one of the fastest times ever recorded.

• 📜 Harvard Sues Trump Administration Over $2.2B Funding Freeze: Harvard University has filed a lawsuit against the Trump administration, challenging a freeze on $2.2 billion in federal research funding that they claim unlawfully infringes on academic independence and jeopardizes critical research efforts.

• 🛡️ Defense Secretary Faces Scrutiny Over Shared Sensitive Information: Defense Secretary Pete Hegseth is under fire for reportedly sharing sensitive military details (again) about airstrikes in Yemen via a private chat. Despite Trump defending him, the White House is considering a potential replacement amid emerging concerns over security protocols.

• ⚖️ Nadine Menendez Convicted in Federal Bribery Case: Nadine Menendez has been found guilty in a federal bribery trial involving cash, gold bars, and a luxury car in exchange for political favors. Her conviction adds to the legal woes surrounding her husband, former Senator Bob Menendez.

• 🐣 Tech Giants Sponsor White House Easter Egg Roll for First Time: Major technology companies, including Amazon and Meta, have sponsored the White House Easter Egg Roll, raising concerns about corporate influence on public traditions. This marks a notable shift in the event's historical nonpartisan nature.

REFERRAL
Share Investinq 🤝 Acquire Swag

If you love reading our newsletter, don’t be selfish — share it. Odds are your favorite finance bro, trader, investor, or stock market fanatic will too.

Don’t keep all the market news to yourself — share the love using the unique link below.

We deliver you all the news for free every single day (go on… help us out ;)

And here’s the kicker: every referral you make gets you entered into a raffle to win some awesome prizes listed below. Just share the link below and you’ll be entered once they sign up.

RESOURCES
The Federal Reserve Resource

Join our small yet growing subreddit 🚀: https://www.reddit.com/r/investinq/

Wall Street Reads 💎 (Best Books):

• Stock Market Books📚
  https://drive.google.com/file/d/1NQ-vdLE1afXFcc5PwDRp1d5VSHzDly88/view?usp=sharing

• Options Trading Books📗 https://drive.google.com/file/d/1xeYL3IpjT623CJpO_Ole1Z-GuzHQQJzg/view?usp=sharing

• Business Books 📖https://drive.google.com/file/d/1VfuTqhPVB2YjDOd0N56UhF6kmZU-kLci/view?usp=sharing

Check out our latest issues 🎯: https://investinq.beehiiv.com