Auto Tariffs: Price Hikes Ahead 🚗

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Hey Daily Traders,

Today's market landscape is shifting as President Donald Trump's 25% auto tariffs are set to increase vehicle prices in 2025, potentially dampening sales and tightening supply. Automakers are scrambling to adapt, with some halting shipments and others offering temporary deals, while analysts predict a ripple effect on the used car market, echoing pandemic-era disruptions.

Meanwhile, recession fears loom as Trump's tariff hikes send stock markets into turmoil, prompting financial experts to raise recession forecasts. With the Federal Reserve considering interest rate cuts to mitigate these effects, all eyes are on real-time data for signs of a downturn, as economic uncertainty grows despite solid job gains and low unemployment.


Here's what's happening today:

Question

With auto tariffs set to drive up vehicle prices, do you think automakers' temporary deals will be enough to maintain consumer demand, or will the market face significant challenges?

Reply to this email with your answer

Stock Market

Auto Tariffs Expected to Drive Up Vehicle Prices in 2025
The U.S. automotive market is bracing for significant price hikes as President Donald Trump's 25% tariffs on imported vehicles take effect. Industry experts at Cox Automotive predict these levies will add thousands of dollars to the costs of both new and used cars. This is expected to dampen sales and tighten supply, leading to increased prices across the board. Automakers like Ford and Chrysler are adapting with temporary deals, while others, such as Jaguar Land Rover, have halted U.S. shipments altogether.

New tariffs on auto parts are also looming, further exacerbating the situation. Analysts expect these price increases to ripple through the used car market, with wholesale prices projected to rise significantly by year-end. The tariffs are poised to disrupt the automotive supply chain, echoing economic uncertainties reminiscent of the pandemic's impact on the industry. As manufacturers adjust to these changes, consumers may face a volatile market with fewer affordable options.

Key Takeaway
  • The new auto tariffs are expected to significantly increase vehicle prices, affecting both new and used car markets.
  • This matters because it could lead to reduced consumer demand and disrupt the automotive industry's stability, echoing economic uncertainties seen during the pandemic.
Stock Market

Recession Fears Grow Amid Trump's Tariff Hikes
Economists are increasingly concerned that President Donald Trump's recent tariff hikes could push the U.S. into a recession. The tariffs, which include a 10% duty on imports from most countries, have already sent stock markets into turmoil. Financial experts from Goldman Sachs and JPMorgan have raised their recession forecasts, citing the potential for increased costs and uncertainty for businesses. The tariffs could also lead to reduced consumer spending, further slowing economic growth.

Despite solid job gains and low unemployment, surveys show growing anxiety among consumers and businesses about the economic outlook. Analysts are closely monitoring real-time data for signs of a downturn, as the Federal Reserve considers potential interest rate cuts to counteract the tariffs' effects. The situation remains fluid, with potential for further economic disruption if the tariffs remain in place.

Key Takeaway
  • Trump's tariff hikes have heightened fears of a U.S. recession, as they are expected to increase costs and uncertainty for businesses.
  • This matters because it could lead to reduced consumer spending and economic slowdown, impacting overall economic stability.
Stock Market

FatPipe, Inc., a leader in secure SD-WAN solutions, has announced the pricing of its initial public offering (IPO) and subsequent listing on the Nasdaq Capital Market under the ticker symbol 'FATN'. The company is offering 695,656 shares at $5.75 each, aiming to raise $4 million in gross proceeds. The IPO is expected to close on April 9, 2025, pending standard closing conditions.

FatPipe specializes in network optimization and cybersecurity, serving a global clientele that includes enterprises and government organizations. The IPO marks a significant milestone for the company as it seeks to expand its market presence and capitalize on growing demand for secure and efficient networking solutions. With a robust customer base and a focus on innovation, FatPipe is poised for growth in the competitive tech industry.

Key Takeaway
  • FatPipe's IPO on Nasdaq signifies its entry into the public market, aiming to raise funds for expansion.
  • This is important as it highlights the company's growth potential in the tech industry and its focus on secure networking solutions.
Stock Market

Boeing Settles to Avoid Trial Over Ethiopian Airlines Crash
Boeing has reached a settlement to avoid a civil trial related to the 2019 Ethiopian Airlines crash, which involved a 737 MAX aircraft. The settlement comes just as the trial was set to begin in Chicago, concerning one of the two remaining cases. The crash, which occurred shortly after takeoff, resulted in the deaths of 157 people and led to the global grounding of the 737 MAX fleet.

The settlement allows Boeing to sidestep further legal scrutiny over its safety measures and focus on resolving remaining legal challenges. The company continues to face a criminal case set to start in June, where it is accused of defrauding the Federal Aviation Administration during the 737 MAX certification process. This development underscores the ongoing legal and reputational challenges Boeing faces as it works to restore confidence in its aircraft.

Key Takeaway
  • Boeing's settlement in the Ethiopian Airlines crash case helps the company avoid a civil trial, but it still faces legal challenges.
  • This matters as it highlights ongoing scrutiny over Boeing's safety practices and its efforts to rebuild trust in its aircraft.
Crypto

PairMiner is revolutionizing the cryptocurrency mining landscape by offering cloud-based services that eliminate the need for expensive hardware investments. As the crypto market continues to grow, PairMiner provides an accessible entry point for both novice and experienced miners. Users can mine popular cryptocurrencies like Bitcoin and Dogecoin without the usual high costs associated with traditional mining setups.

Regulated by the UK Financial Conduct Authority (FCA), PairMiner emphasizes security and compliance, ensuring a trustworthy environment for users. The platform offers a variety of mining plans, catering to different investment levels and risk appetites. With its user-friendly interface and attractive daily returns, PairMiner aims to make crypto mining a viable source of passive income for a broader audience.

Key Takeaway
  • PairMiner's cloud-based crypto mining services offer an accessible and cost-effective way to mine cryptocurrencies.
  • This is important as it lowers the barrier to entry for crypto enthusiasts and provides a secure, regulated platform for generating passive income.

Today's Technical Analysis

Undervalued
DX
Dynex Capital, Inc.
Volume: 7.93M shares | Price: $11.73

Technical Indicator Score: 100% Buy
Out of the 8 technical indicators used to analyze this stock, 8 indicated buy signals.
RSI
Buy
MFI
Buy
WillR
Buy
AO
Buy
CCI
Buy
BBANDS
Buy
ULTOSC
Buy
STOCH
Buy

Undervalued
ORC
Orchid Island Capital, Inc.
Volume: 8.18M shares | Price: $6.22

Technical Indicator Score: 100% Buy
Out of the 8 technical indicators used to analyze this stock, 8 indicated buy signals.
RSI
Buy
MFI
Buy
WillR
Buy
AO
Buy
CCI
Buy
BBANDS
Buy
ULTOSC
Buy
STOCH
Buy

Overvalued
YANG
Direxion Daily FTSEChina Bear 3X Shares
Volume: 12.64M shares | Price: $63.00

Technical Indicator Score: 100% Sell
Out of the 8 technical indicators used to analyze this stock, 8 indicated sell signals.
RSI
Sell
MFI
Sell
WillR
Sell
AO
Sell
CCI
Sell
BBANDS
Sell
ULTOSC
Sell
STOCH
Sell

Undervalued
SNY
Sanofi American Depositary Shares (Each representing one-half of one ordinary share)
Volume: 4.01M shares | Price: $50.76

Technical Indicator Score: 88% Buy
Out of the 8 technical indicators used to analyze this stock, 7 indicated buy signals, 1 indicated a neutral signal.
RSI
Buy
MFI
Buy
WillR
Buy
AO
Buy
CCI
Buy
BBANDS
Buy
ULTOSC
Hold
STOCH
Buy

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Technical Indicator Information

Relative Strength Index (RSI) | Period: 14 days | Overvalued threshold: 70 | Undervalued threshold: 30

Money Flow Index (MFI) | Period: 14 days | Overvalued threshold: 80 | Undervalued threshold: 20

Williams Percent Range (WillR) | Period: 14 days | Overvalued threshold: -20 | Undervalued threshold: -80

Aroon Oscillator (AO) | Period: 14 days | Overvalued threshold: 75 | Undervalued threshold: -75

Moving Average Convergence/Divergence (MACD) | Period: 26/12/9 days | Overvalued threshold: MACD crosses below MACD Signal | Undervalued threshold: MACD crosses above MACD Signal

Stochastic Oscillator (STOCH) | Period: 14/3/3 days | Overvalued threshold: %K crosses below %D above 80 | Undervalued threshold: %K crosses above %D below 20

Commodity Channel Index (CCI) | Period: 20 days | Overvalued threshold: 100 | Undervalued threshold: -100

Bollinger Bands (BBANDS) | Period: 20 days | Overvalued threshold: price >= upper band | Undervalued threshold: price <= lower band

Parabolic Stop and Reverse (SAR) | Period: variable 50 - 100 days | Overvalued threshold: SAR crosses above price | Undervalued threshold: SAR crosses below price

Triple Exponential Average (TRIX) | Period: 15 days | Overvalued threshold: TRIX crosses below 0 | Undervalued threshold: TRIX crosses above 0

Ultimate Oscillator (ULTOSC) | Period: 28/14/7 days | Overvalued threshold: 70 | Undervalued threshold: 30

Directional Movement Index (DMI) | Period: 14 days | Overvalued threshold: PlusDI crosses below MinusDI | Undervalued threshold: PlusDI crosses above MinusDI

Average Directional Index (ADX) | Period: variable 14 days | Requirement: >= 25

Analysis is only performed on securities with market caps in excess of $100 million and with daily trade volume in excess of $50 million.

Disclaimers

The information in our newsletter is not intended to constitute investment advice and is not designed to meet your personal financial situation. It is provided for information purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor or a group of investors. It should not be assumed that any investments in securities, companies, sectors or markets identified and described will be profitable. We strongly advise you to discuss your investment options with your financial advisor prior to making any investments, including whether any investment is suitable for your specific needs.

Although we obtain information contained in our newsletter from sources we believe to be reliable, we cannot guarantee its accuracy. The analysis provided in this newsletter is based on the prior trading day’s closing prices and may not reflect after-hours trading, earnings announcements, or other significant market events that occur outside regular trading hours. As such, any data or commentary may not fully capture the latest market movements or emerging factors. For the most current and comprehensive view, please consider additional sources or consult with a qualified financial professional.

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