Adidas and Puma were founded by rival brothers, Adolf and Rudolf Dassler, after their personal and business relationship fell apart.
The two brothers started out as partners in the Dassler Brothers Shoe Factory in 1924 in Herzogenaurach, Germany. Their collaboration was initially successful, even supplying shoes to athletes in the 1936 Berlin Olympics. However, growing tensions during World War II and differing personalities eventually led to a major falling out.
By 1948, the rift was so severe that the brothers split the company—Adolf formed Adidas (derived from "Adi" and "Dassler") and Rudolf created Puma. Their rivalry divided their hometown for decades, with local loyalties split between the two brands.
Market Wrap
Tariff Hopes Rise, Powell Talk Cools — Wall Street Rebounds
Trump Signals Possible Tariff Reduction on China:
President Trump suggested that the 145% tariffs on Chinese imports could be “substantially reduced,” though not eliminated. While no formal changes were made, the remarks gave markets hope for a potential thaw in trade relations with China.
Treasury Secretary Flags Trade War Unsustainable:
U.S. Treasury Secretary Scott Bessent stated that the ongoing trade standoff with China was “not sustainable” and hinted that easing tensions was likely, even as formal negotiations remain pending. The comment contributed to a late-day rally in equities.
Trump Walks Back Fed Chair Firing Threat:
After days of criticizing Federal Reserve Chair Jerome Powell and suggesting he could be removed, President Trump stated he has “no intention” of firing him. While continuing to pressure the Fed to lower interest rates, this clarification helped ease investor concerns about the central bank’s independence.
Major Solar Panel Tariffs Announced:
The U.S. Commerce Department imposed significant new tariffs—some exceeding 3,500%—on solar panel imports from Southeast Asia, citing evidence that Chinese firms were circumventing existing duties. While the move aims to protect domestic manufacturers, clean energy groups warned it could raise costs and slow solar adoption in the U.S.
IMF Cuts Global and China Growth Forecasts:
The IMF downgraded China’s 2025 growth outlook to 4.0% and global growth to 2.8%, citing weakening demand and the ongoing trade conflict with the U.S. The move added pressure on Chinese policymakers to provide further economic stimulus and influenced sentiment toward global demand.
U.S. PMI Data Shows Diverging Sectors:
The S&P Global Flash PMI showed a continued expansion in the U.S. services sector but a renewed contraction in manufacturing. While the data confirmed resilience in consumer-facing industries, it also highlighted ongoing industrial softness.
Tesla Inc. shares rose over 5% after the market close despite missing Q1 earnings expectations, as the company reaffirmed plans to launch its robotaxi service by June and begin producing a lower-cost EV in the first half of 2025. CEO Elon Musk also signaled he would scale back government advisory roles to focus more on Tesla, boosting investor confidence in the company’s long-term roadmap.
SAP SE shares jumped 9% in after-hours trading after the company raised its full-year profit guidance and announced strong cloud business momentum. The German software firm impressed investors with its solid revenue growth and expanding margins.
RTX Corp. shares plunged 9.8% as the defense contractor projected an $850 million profit hit due to new tariffs on Mexican and Canadian imports. This overshadowed the company's stronger-than-expected quarterly earnings.
Lockheed Martin Corp. shares gained modestly after announcing a new $4 billion contract with the U.S. Department of Defense. The contract, which includes additional F-35 fighter jets, was seen as a positive catalyst for future revenue growth.
3M Co. shares jumped 8.1% after the company reported better-than-expected profits for the first quarter. The industrial conglomerate also reaffirmed its full-year earnings forecast, though it cautioned that new tariffs could reduce earnings per share by up to $0.40.
Equifax Inc. shares surged 13.8% following a strong earnings report that exceeded analyst expectations. The credit reporting agency also announced a dividend increase and a $3 billion share buyback program over the next four years.
PulteGroup Inc. shares rose 8.4% after the homebuilder posted robust quarterly earnings, benefiting from lower mortgage rates earlier in the year. The company noted continued strong demand for new homes despite affordability challenges.
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