"Wall Street makes its money on activity. You make your money on inactivity."- Warren Buffett
This timeless insight from Warren Buffett highlights the value of patience in investing. Rather than chasing every market move, long-term success often comes from disciplined restraint.
Buffett reminds us that great outcomes come from thoughtful inactivity rather than constant action.
Market Wrap
Public Skepticism Mounts, Factory Activity Falters
Public Skepticism on Tariff Benefits:
A Gallup poll released on April 28 indicates that most Americans expect their country's new tariffs to result in higher prices in the U.S. and to cost more than they raise, with about half believing the tariffs will bring in more money to the U.S. than they cost and will create more manufacturing jobs at home.
Mixed Signals from U.S.-China Trade Talks:
While the U.S. administration expressed a willingness to negotiate tariff reductions with China, Chinese officials denied any scheduled trade talks.
Global Recession Risks Heighten:
A Reuters poll revealed that economists have significantly increased their global recession forecasts due to the ongoing U.S. tariff policies. The survey indicates that the risk of a global economic downturn has surged, with many countries facing potential slowdowns as a result of the U.S. trade measures.
Financial Stability Report Highlights Emerging Risks:
The Federal Reserve released its April 2025 Financial Stability Report, identifying growing concerns about nonbank financial institutions, private credit markets, and stablecoins. The report emphasizes that these sectors could pose significant risks to the broader financial system, particularly if economic conditions deteriorate or if there is a sustained decline in earnings among vulnerable business borrowers.
Dallas Fed Manufacturing Index Declines:
The Dallas Fed Manufacturing Index fell to -14.5 in April from -11.1 in March, signaling a continued contraction in Texas manufacturing activity. Businesses reported decreased new orders and production levels, citing heightened uncertainty due to escalating trade tensions and tariff impacts.
Legal Challenges to Executive Orders:
Four major law firms—Perkins Coie, Jenner & Block, WilmerHale, and Susman Godfrey—are challenging executive orders issued by President Donald Trump, which they argue infringe on constitutional rights, freedom of speech, and the right to legal counsel. These legal battles underscore the broader divide in how top-tier law firms are responding to political pressure from the Trump administration.
Nvidia Corporation shares declined 2.1% amid reports that Chinese tech giant Huawei plans to test its own AI chip. The news raised concerns about increased competition in the AI semiconductor market, potentially impacting Nvidia's dominance in the sector.
AbbVie Inc. shares rose after the pharmaceutical company reported better-than-expected quarterly earnings and raised its full-year guidance. The positive results were driven by strong sales of its immunology and oncology drugs, boosting investor confidence in the company's growth prospects.
Boeing Co. shares rose after an analyst upgrade from Bernstein, which cited progress in the company's turnaround efforts. The positive assessment boosted investor confidence in Boeing's recovery trajectory.
Colgate-Palmolive Co. shares declined 3.1%, despite solid quarterly results, as the company revised its full-year forecast downward amid tariff concerns. The cautious outlook overshadowed the positive earnings report.
Weyerhaeuser Co. shares rose 3.1% following better-than-expected sales and in-line profits, despite year-over-year declines caused by reduced exports to China. The results suggested stability in the company's core operations.
MGM Resorts International shares gained following a strong revenue update from its online gaming unit, BetMGM. The robust performance in the digital segment signaled growth potential beyond traditional casino operations.
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