• Trump tariff “Liberation Day” and the newest jobs report loom within the week forward.
• ExxonMobil seems well-positioned to capitalize on the altering dynamics of power commerce.
• Normal Motors is predicted to face challenges because of the new tariffs set to be unveiled, probably making it a inventory to promote.
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U.S. shares tumbled on Friday to wrap up a risky week as a unfavorable combine of stories associated to inflation, the economic system, and President Donald Trump’s commerce conflict triggered a pointy selloff.
For the week, the fell about 1%, the slumped 1.5%, whereas the tech-heavy declined 2.6%.
With this newest shedding week, the Nasdaq is now on tempo for a greater than 8% month-to-month decline, which might be its worst month-to-month efficiency since December 2022.
Supply: Investing.com
The week forward is predicted to be an eventful one as traders look forward to Wednesday, when President Trump is predicted to announce a contemporary spherical of tariffs, for additional readability.
Most necessary on the calendar might be Friday’s U.S. employment report for March, which is forecast to indicate the economic system added 139,000 positions. The unemployment fee is seen holding regular at 4.1%.
Supply: Investing.com
That might be accompanied by a heavy slate of Fed audio system, together with Chairman Jerome Powell. Rate of interest futures counsel merchants see a 79% chance that the Fed will minimize rates of interest by 25 foundation factors by its June assembly, in line with Investing.com .
Elsewhere, on the earnings docket, there are only a handful of company outcomes due, together with Conagra Manufacturers (NYSE:), Lamb Weston (NYSE:), RH (NYSE:), Guess (NYSE:), and PVH (NYSE:).
No matter which path the market goes, beneath I spotlight one inventory more likely to be in demand and one other which might see contemporary draw back. Bear in mind although, my timeframe is only for the week forward, Monday, March 31 – Friday, April 4.
Inventory To Purchase: ExxonMobil
Because the so-called “Liberation Day” approaches, ExxonMobil (NYSE:) is poised to capitalize on the Trump administration’s aggressive commerce and power agenda.
The president’s pursuit of a commerce conflict with allies Mexico and Canada—America’s prime sources of imported crude oil—has already seen tariffs slapped on crude from these neighbors.
This transfer is designed to squeeze overseas oil provides and bolster home manufacturing, a transparent win for ExxonMobil, one of many U.S.’s power titans.
Including gasoline to the hearth, Trump’s sanctions on Venezuelan oil threaten to tighten international crude markets additional. His administration has warned that any nation buying Venezuelan oil will face a 25% tariff, a coverage that might drive oil costs larger.
With crude costs trending upward, ExxonMobil’s strong home operations stand to learn as Trump doubles down on his promise to supercharge U.S. power independence.
Supply: Investing.com
XOM inventory ended Friday’s session at $117.73, placing it nearby of its October 2024 file peak of $126.34. ExxonMobil has a market cap of $510 billion at its present valuation, making it the most important U.S. oil producer and the 14th most respected firm buying and selling on the NYSE.
Shares have elevated 9.4% for the reason that begin of 2024, outperforming the broader market by a large margin over the identical interval.
Supply: InvestingPro
The Irving, Texas-based oil large maintains a strong Monetary Well being rating of two.88, incomes it a “GOOD” ranking as per the InvestingPro mannequin. This rating is bolstered by sturdy efficiency in particular areas, notably worth momentum (3.56) and revenue metrics (3.41), whereas money stream (3.18) additionally reveals energy.
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Inventory to Promote: Normal Motors
On the flip facet, Normal Motors (NYSE:) finds itself within the crosshairs of Trump’s tariff barrage, making it a inventory to keep away from this week.
The administration’s determination to impose a 25% tariff on almost all imported automobiles and parts is a major blow to the U.S. auto business—and GM specifically. Efficient April 3, these tariffs cowl a broad vary of imports, with restricted aid for USMCA-compliant automobiles.
This transfer introduces a possible $110 billion annual value enhance throughout the sector, translating to an estimated $6,700 per car.
GM’s reliance on a globally interconnected provide chain makes it notably weak, as absorbing the tariff prices might erode revenue margins, whereas passing them on to shoppers dangers a major decline in gross sales.
For GM, which depends closely on imports, the tariffs pose a considerable risk to its earnings energy, with a notable hit anticipated by the second half of 2025.
Supply: Investing.com
GM inventory closed at $46.68 on Friday, not removed from a 2025 low of $44.41 touched on March 4. At present valuations, Normal Motors has a market cap of $46.5 billion, making it the second largest U.S. automaker after Tesla (NASDAQ:).
Shares, that are buying and selling beneath their key transferring averages, are down 12.4% within the year-to-date.
Supply: InvestingPro
The automaker maintains a decent monetary well being general rating of two.61, additionally incomes a “GOOD” ranking. GM reveals balanced efficiency throughout revenue metrics (2.76) and development (2.75), however demonstrates some weak point in money stream (2.03) and worth momentum (2.29).
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Disclosure: On the time of writing, I’m brief on the S&P 500 and through the ProShares Brief S&P 500 ETF (SH) and ProShares Brief QQQ ETF (PSQ).
I usually rebalance my portfolio of particular person shares and ETFs primarily based on ongoing danger evaluation of each the macroeconomic atmosphere and firms’ financials.
The views mentioned on this article are solely the opinion of the writer and shouldn’t be taken as funding recommendation.
Observe Jesse Cohen on X/Twitter @JesseCohenInv for extra inventory market evaluation and perception.