5 Things to Know Before the Stock Market Opens

President Joe Biden is suggesting a steep hike on tariffs of steel and aluminum imports from China; Volkswagen workers in Tennessee are starting to vote on whether to join the United Auto Workers union; United Airlines (UAL) shares are surging in premarket trading as the carrier’s earnings topped forecasts despite its issues with Boeing (BA); Dutch chip-gear maker ASML (ASML) is falling as orders disappoint and cast a shadow on artificial intelligence (AI) chip demand; and Tesla (TSLA) shareholders will once again vote on the $56 billion compensation package for CEO Elon Musk. U.S. stock futures are rising, as earnings are in focus and investors shrug aside comments from Federal Reserve Chair Jerome Powell that interest rates will stay higher for longer. Here’s what investors need to know today.

1. Biden Seeks Steep Tariffs Hike on Chinese Steel, Aluminum Imports  

President Biden is reportedly seeking a more than tripling of certain tariffs on imports of steel and aluminum from China, to 25% from 7.5%, as he seeks to attract workers ahead of the presidential election later this year. The new levies would be separate from a 25% tariff on steel and a 10% duty on aluminum imposed by the Trump administration. Chinese exports have surged recently while U.S. Treasury Secretary Janet Yellen has accused Beijing of creating excess capacity and cut-price goods on the back of the country’s strategy of turbocharging manufacturing.

2. Volkswagen Starts Union Vote in Key Test for UAW’s Sway 

Volkswagen workers in Chattanooga, Tenn., will reportedly begin voting today on whether to organize with the United Auto Workers in a key test of the union’s sway after winning several contracts last year. A victory at the German firm’s sole U.S. factory would give the UAW its first contract at a foreign-owned auto-manufacturing plant here, according to The Wall Street Journal. Last year the UAW won historic new contracts with Ford (F), General Motors (GM) and Chrysler parent Stellantis (STLA). Winning over Volkswagen workers could be more challenging, however, given strong anti-union sentiment in Tennessee. Separately, Volkswagen is trying to regain lost ground in China with the launch of new electric vehicle (EV) software it has developed with China’s XPeng (XPEV).

3. United Airlines Soars on Q1 Earnings Beat Despite Boeing Exposure 

United Airlines (UAL) shares were up 5% about 90 minutes before the opening bell after the airline topped Wall Street’s quarterly expectations and issued better-than-expected current-quarter earnings guidance, despite slashing its aircraft deliveries forecast from troubled airplane maker Boeing (BA). United said the temporary grounding of Max 9 jets in January following an inflight door plug blowout involving the aircraft type cost it around $200 million, adding that it would have generated a profit in the quarter had the planes not been out of service.

4. AI Chip-Equipment Maker ASML Posts Disappointing Orders

ASML (ASML) shares were down nearly 5% in premarket trading after the chipmaking equipment giant reported lower-than-expected orders for the three months through March, casting doubt on the extent of demand for AI chips. The Dutch company said first-quarter orders fell to 3.61 billion euros ($3.83 billion) in the three months from 3.75 billion a year earlier, and well below expectations of nearly 5.10 billion euros forecast by analysts on the back of enthusiasm for all things Al. ASML shares have run up more than 50% in the past year as investors piled into stocks of the sole maker of extreme ultraviolet (EUV) lithography machines that can make faster and powerful AI chips amid enthusiasm for the technology. 

5. Tesla to Vote on Musk’s $56B Pay Package Again, Move to Texas 

Tesla (TSLA) shareholders will once again vote on the $55.8 billion compensation package for Chief Executive Officer (CEO) Elon Musk that a Delaware court challenged earlier this year. According to a Securities and Exchange Commission (SEC) filing, the EV maker said it will also call a vote on moving the company’s state of incorporation to Texas from Delaware. Tesla shares wee little changed in premarket trading.

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