US stock market drops after Trump announced tariffs | Calamatta Cuschieri

The US Government plans to increase tariffs for aluminum and steel. Dow Jones down more than 400 points.

Stocks fell on Thursday after President Donald Trump said the U.S. will implement tariffs on steel and aluminum imports next week.

The Dow Jones industrial average closed 420.22 points lower at 24,608.98 after rising more than 150 points earlier in the day. The S&P 500 declined 1.4% to end at 2,677.67 with the industrials as the worst-performing sector. The U.S. government will set tariffs of 25% for steel and 10% for aluminum, the president said. It is unclear whether they will apply to all imports or only metals from certain countries. Wall Street also digested the declaration from Federal Reserve Chair Jerome Powell that confirmed any decision about increase in wages.

A shift in software helped Nutanix earnings.

Earlier Thursday, Nutanix NTNX, -0.69% reported a better-than-expected fiscal second quarter and outlook, even as it eliminates more hardware sales from its total revenue. The hybrid cloud company said late last year that it would no longer include hardware revenue that is passed on to the original equipment manufacturers in its financial statements. As Chief Executive Dheeraj Pandey told analysts on a conference call, buyers of the company’s software are increasingly coming from higher up in the corporate echelon, as customers expand their purchases to include more parts of the corporation, as they de-emphasize some of their spending on public cloud computing systems. The company saw growth in all its geographies and was optimistic that its growth will continue. Investors pushed Nutanix shares up 3% in after-hours trading.

Nutanix has been a controversial stock, with JPMorgan downgrading the company in January on views that a software shift could be disruptive, sending shares down. Other analysts have been more upbeat, saying the software strategy may slow revenue growth but improve profitability.

Investors pushed Nutanix shares up 3% in after-hours trading and are waiting for a more positive news.

Newell shares rose more than 3% as Icahn says he has a stake in the company.

Shares of Newell Brands Inc. NWL, +3.15% showed a rare splash of green in a sea of red Thursday, after billionaire investor Carl Icahn said he has a stake in the company but has not yet decided which side to take in a pending proxy fight.

Newell produces a variety of consumer and commercial goods from power tools to child car seats. The industrial conglomerate operates under many brands including Sharpie, Paper Mate, Mr. Coffee and Coleman.

Newell is shaping up for a proxy fight with activist investor Starboard Value LP, which is seeking to replace the entire board and its chief executive. Icahn joins other activist investors including Starboard Value and Martin Franklin in their bid to reform the company with a different view about the direction that the company should go.

Disclaimer

This article was issued by Linda De Luca, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.