Stock Region Market Briefing
Stock Region Market Briefing Newsletter - Thursday, April 3, 2025
Stock Region Market Briefing Newsletter - Thursday, April 3, 2025
The stocks featured in this report were previously delivered in our trading room in real-time. To access Stock Region’s real-time trade ideas, then be sure to purchase a membership now.
Disclaimer: For informational purposes only. This is not financial advice. Always consult a financial professional.
Major Market Events
April 3, 2025 Recap:
The U.S. stock market witnessed a steep selloff today after sweeping tariffs were announced by President Trump. Key indices faced significant downturns as fears of a global economic slowdown mounted:
Dow Jones: Fell over 1,500 points.
Nasdaq Composite: Declined 6.0%.
S&P 500: Dropped 4.8%.
The newly imposed tariffs, effective April 5, include a 10% base rate on all global imports. Specific countries face considerably higher tariffs (e.g., China at a staggering 54%). This escalation unnerved investors, hitting U.S. equities across numerous sectors. Technology, discretionary, and energy were the day’s worst performers, while Treasury yields fell sharply amid a flight to safety.
Economic data further added to the downbeat sentiment. Initial jobless claims remained low at 219K, but continuing claims rose to their highest level since late 2021. ISM Services data (50.8%) revealed a notable slowdown in growth for the services sector.
Oil weakened further on demand concerns, with WTI crude prices plunging to $67 per barrel, spelling trouble for energy stocks.
Individual Company Updates
AppLovin (APP)
Ticker: APP
Price: $261.98 (-$28.41, -9.8%)
AppLovin confirmed its interest in acquiring TikTok in all markets outside of China. While this would be a bold strategic move for the mobile app tech giant, market volatility reacted unfavorably. Potential approval hurdles could heighten investor concerns.
Franklin Electric (FELE)
Ticker: FELE
Price: $91.87 (-$4.00, -4.2%)
Following the resignation of its CFO, Franklin Electric named Russell Fleeger as interim CFO. Investors could keep an eye on this transition as the company navigates leadership changes in its water systems business.
Exxon Mobil (XOM)
Ticker: XOM
Price: $112.43 (-$6.24, -5.3%)
Exxon Mobil released considerations for Q1 earnings but faced a downward spiral as oil prices took a heavy hit. Energy investors may want to monitor future demand projections, especially amid growing macroeconomic uncertainties.
Alamos Gold (AGI)
Ticker: AGI
Price: $26.87 (+$0.36, +1.4%)
Alamos Gold finalized a deal to sell its Quartz Mountain project for up to $21M. Strength in precious metals could continue to buoy AGI shares, positioning it as a potential safe-haven stock pick.
Riot Platforms (RIOT)
Ticker: RIOT
Price: $7.30 (-$0.72, -9.0%)
Riot Platforms announced it produced 533 Bitcoin in March, marking a 25% year-over-year increase. While the crypto mining company celebrated production growth, the broader market selloff impacted its stock performance.
Cboe Global Markets (CBOE)
Ticker: CBOE
Price: $225.95 (+$1.08, +0.5%)
Cboe reported record trading volumes for Q1 options, with U.S. options volume hitting 1.1 billion contracts. Amid market turbulence, CBOE’s operational strength may provide stability to long-term shareholders.
AbbVie (ABBV)
Ticker: ABBV
Price: $201.64 (-$3.55, -1.7%)
AbbVie lowered its Q1 and FY EPS forecast due to R&D milestones and acquisition-related costs. Despite this, its robust long-term growth pipeline in pharmaceuticals merits attention from value investors.
Canadian National Railway (CNI)
Ticker: CNI
Price: $98.21 (-$2.03, -2.0%)
The railway giant set new records, moving 2.98 million metric tonnes of grain nationally in March. This achievement highlights its operational resilience while battling adverse winter conditions earlier in the year.
Many other companies issued updates ranging from dividend increases (GBX) to new product launches (RCEL). Investors are encouraged to monitor sector-wide trends closely.
Growth Stocks to Watch
AppLovin (APP): If successful, the acquisition of TikTok (outside China) could boost the company’s digital ecosystem significantly, enhancing long-term user engagement and revenue streams.
Riot Platforms (RIOT): With consistent Bitcoin production growth, this stock could be a play for those optimistic about cryptocurrency adoption post-volatility.
Alamos Gold (AGI): Amid market instability, gold miners such as AGI tend to perform well as safe-haven assets attract demand.
CBOE Global Markets (CBOE): Volume records indicate increasing interest in options trading, offering potential upside in bearish markets.
Stock Market Forecast
The near-term outlook for U.S. equities remains challenging as tariff concerns weigh heavily on investor sentiment. Rising barriers to global trade could spark a chain reaction, slowing economic growth while pressuring corporate earnings.
Key indices may face heightened volatility in the coming weeks, particularly as market participants digest tomorrow’s anticipated Employment Situation report and fresh data on manufacturing activity. Technology and energy stocks may remain under heavy pressure, with defensive sectors like utilities or consumer staples offering some reprieve.
From a macro perspective, the Federal Reserve’s policy adjustments, the geopolitical landscape, and potential retaliatory tariffs from allied nations will strongly influence market trajectories through Q2 of 2025. Long-term investors should stay cautious but focus on quality companies with solid fundamentals and resilient business models.
The stock market endured a turbulent session on April 3, 2025, marked by geopolitical developments, aggressive U.S. tariff policies, and corporate announcements. The S&P 500 closed down 1.8%, with the tech-heavy NASDAQ Composite plummeting 3.2% amid tariff-induced concerns. The Dow Jones Industrial Average fell 2.1%, while the Russell 2000 sank an additional 2.6%, officially entering bear market territory. Market sentiment remains anxious as investors weigh the long-term effects of rising tariffs and a potential global trade shift on corporate revenue and consumer pricing.
Gold rallied to $2,050 per ounce, signaling investor preference for safe-haven assets during mounting uncertainty. Meanwhile, crude oil prices declined significantly due to OPEC+ production boosts, with Brent crude trading at $70.50 per barrel (-6%) and WTI at $67.11 per barrel (-6.1%).
Key Headlines and Analysis
Amazon (AMZN) to Challenge Starlink with Project Kuiper
Amazon is gearing up to launch Project Kuiper, its ambitious satellite internet venture. The first batch of 27 satellites will head to orbit next week as part of a planned 3,200-satellite constellation aimed at competing directly with SpaceX's Starlink. The system promises global high-speed internet at speeds of up to 1Gbps through cost-effective user terminals. This bold initiative could establish Amazon as a key player in the $20 billion satellite internet market by 2030.
Ticker Symbol: AMZN
Market Performance: Yesterday’s close at $95.42 (-7%), pressured by tariff-induced sector-wide declines.
Watch Stock: Iridium Communications (IRDM), which specializes in satellite technology, could benefit as demand for satellite components surges across the industry.
Google’s (GOOGL) NotebookLM Enhances AI Research Tools
Google's NotebookLM continues to revolutionize AI applications. The new "Discover" feature automatically retrieves web resources, simplifying tasks for students, researchers, and professionals. With AI integration becoming a core growth opportunity, Alphabet's strategic push to dominate the AI space solidifies its long-term upside.
Ticker Symbol: GOOGL
Market Performance: $120.15 (-1.3%)
Watch Stock: Consider NVIDIA (NVDA), as high computing power drives AI capabilities. NVIDIA's role in producing AI-focused GPUs positions it for sustained growth.
Apple (AAPL) Loses $250 Billion in Market Value on Tariff Fears
Apple suffered a dramatic 8.5% plunge after the Trump administration announced steep import tariffs of 54% on Chinese goods. With around 90% of Apple's manufacturing rooted in Asia, the company faces significant cost pressures. Additionally, rising consumer prices for its flagship products like the iPhone may dampen demand in the near term.
Ticker Symbol: AAPL
Market Value Decline: $250 billion
Watch Stock: Qualcomm (QCOM), a major Apple supplier, could face similar pressures. However, opportunities in licensing fees via 5G growth ensure it remains a notable stock to monitor.
OPEC+ Accelerates Oil Output, Prices Slide 6%
OPEC+ members, including Saudi Arabia and Russia, announced accelerated production increases. The move sent crude oil prices tumbling, with Brent crude falling 6%. Energy-heavy businesses and consumers could see short-term relief from lower fuel costs, though oversupply risks linger if demand wanes.
Ticker Symbol: XLE (SPDR Energy Select Sector ETF)
Watch Stock: Exxon Mobil (XOM) remains a key player, offering stability amid price fluctuations.
Spotify (SPOT) Unveils Advanced Advertising Tech
Spotify's new tools leverage generative AI for scriptwriting and real-time programmatic ad buying. By connecting brands with Gen Z users, who make up a significant portion of Spotify's 550 million active user base, SPOT is innovating in the digital advertisement landscape.
Ticker Symbol: SPOT
Market Performance: $115.20 (+0.5%)
Watch Stock: Trade Desk (TTD), an independent digital ad platform, could benefit from industry-wide ad innovation.
Spring 2025 has presented a mixed picture for investors. While higher tariffs and a trade standstill with key partners like China and Vietnam are fueling volatility, innovation in technology, AI, and energy continues to offer pockets of opportunity. However, tariff pressures remain the story of the week, particularly in the tech space.
From a broader economic perspective, Federal Reserve rate cuts could emerge later this year to combat slowing growth and reassure markets. However, with global macroeconomic uncertainty rising, the back-half of 2025 may see subdued corporate profit margins. Small-cap stocks, as seen in the Russell 2000 index, may continue to struggle amid rising debt burdens and reduced consumer demand. Investors should focus on quality names in less tariff-sensitive sectors like healthcare and domestic utilities.
More Growth Stocks to Watch:
Tesla (TSLA): While pressured by tariffs, Tesla's leadership in EVs and global expansion supports long-term potential.
Advanced Micro Devices (AMD): Resilient amidst AI demand, AMD offers solid growth prospects with its cutting-edge chipsets.
Palantir Technologies (PLTR): Benefiting from defense tech and federal contracts amid increasing geopolitical tensions.
Thank you for reading Stock Region’s Market Briefing Newsletter. Stay informed by subscribing for regular updates.
Disclaimer: This newsletter is for informational purposes only and does not constitute investment advice. Stock Region and its affiliates are not liable for any financial losses based on this data. Always do your own research and consult with licensed financial advisers.
We are working endlessly to provide free insights on the stock market every day, and greatly appreciate those who are paid members supporting the development of the Stock Region mobile application. Stock Region offers daily stock and option signals, watchlists, earnings reports, technical and fundamental analysis reports, virtual meetings, learning opportunities, analyst upgrades and downgrades, catalyst reports, in-person events, and access to our private network of investors for paid members as an addition to being an early investor in Stock Region. We recommend all readers to urgently activate their membership before reaching full member capacity (500) to be eligible for the upcoming revenue distribution program. Memberships now available at https://stockregion.net