President-elect Donald Trump says he would enact a 25% tariff on products from Mexico and Canada on his first day in office, as well as 10% tariffs on Chinese-made products; U.S. stock futures are little changed as investors digest the tariffs vow; Kohl’s (KSS) stock is sinking on weak results and news its CEO will be stepping down; Zoom Communications (ZM) shares are down despite better-than-expected quarterly results; and Intel (INTC) receives nearly $7.9 billion in CHIPS Act funding but Qualcomm reportedly has cooled on the idea of acquiring the chipmaker. Here’s what investors need to know today.
1. Trump Vows Tariffs on Mexico, Canada, China
President-elect Donald Trump said he would impose tariffs on products coming into the country from Mexico, Canada, and China, reflecting his intention to fulfill a campaign promise. In a post on his Truth social media site, Trump said on Jan. 20, 2025, the first day of his presidency, he would sign an executive order to impose a 25% tariff on all products coming into the U.S. from Mexico and Canada, citing high levels of illegal immigration and drug trafficking. In a separate post, he said he would enact a 10% tariff on Chinese-made goods, but did not specify a timeline for implementing that levy on imports.
2. US Stock Futures Little Changed on Trump Tariffs Proposal
U.S. stock futures are little changed as investors digest potential economic changes that could come from Trump’s announcement on tariffs, which some believe could help increase inflation. The flat early performance follows a session where markets continued their post-election rally, including a record-high close for the Dow Jones Industrial Average, whose futures are ticking lower. Futures for the Nasdaq and S&P 500 are up about 0.3% each. Yields on the 10-year Treasury note are little changed, remaining below the 4.3% level. Bitcoin (BTCUSD) is down more than 1%, trading around the $92,000 price level after stepping back from recent highs.
3. Kohl’s Stock Sinks After Weak Results, CEO Departure News
Kohl’s (KSS) stock is plummeting 16% in premarket trading after it reported weaker-than-expected third-quarter earnings Tuesday, the day after it announced that Chief Executive Officer (CEO) Tom Kingsbury would stepping down after less than two years running the struggling retailer. Kingsbury, who was named CEO in February 2023, will leave his post on Jan. 15 and be replaced by Ashley Buchanan, CEO of The Michaels Companies. The department store chain reported profit of $22 million on revenue of $3.51 billion, while analysts polled by Visible Alpha were looking for $29.8 million and $3.85 billion, respectively.
4. Zoom Stock Sinks; Company Removes ‘Video’ From Name
Zoom Communications (ZM) stock is sinking 9% in premarket trading even though the remote video communication company posted better-than-expected results for the third quarter. The company reported year-over-year revenue growth of 4% to $1.18 billion, above Visible Alpha consensus, while its net income of $207.1 million or 66 cents per share also topped estimates. Zoom raised its full-year outlook for revenue and adjusted earnings per share (EPS), and also reported adding new customers. It also announced its name has changed to Zoom Communications from Zoom Video Communications as it focuses more on artificial intelligence (AI).
5. Intel Gets Nearly $7.9 Billion in CHIPS Act Funding; Qualcomm Reportedly Cools on Takeover
Intel (INTC) announced it would receive nearly $7.9 billion in government funding as part of a grant from the CHIPS and Science Act. The grant is less than the amount revealed in a March announcement, but the company also is receiving $3 billion in Defense Department funding to improve microchip production. Meanwhile, Bloomberg reported that executives at Qualcomm (QCOM) are cooling on the idea of mounting a takeover bid of Intel. Shares of Intel are little changed in premarket trading.
