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Elon Musk claims $1 trillion in savings
Ryan Serkes
March 28, 2025
The
Daily Trade
Hey Daily Traders,
President Donald Trump's 25% tariffs on foreign autos and parts are poised to shake up the auto industry, potentially raising car prices and affecting consumer spending across the board. As the industry grapples with these changes, the broader economy could feel the pinch, especially considering the ongoing supply chain challenges and the delicate balance of domestic manufacturing incentives.
Meanwhile, the U.S. economy's 2.4% growth in Q4 2024, fueled by consumer spending, shows resilience amidst uncertainty. With trade policies like the new tariffs looming, and inflationary pressures rising, the outlook for 2025 remains clouded, highlighting the importance of staying informed and prepared for potential shifts in economic dynamics.
Here's what's happening today:
- 🚗 Trump's tariffs to impact auto industry prices.
- 📉 U.S. economy grows 2.4% in Q4 2024.
- 💼 Former Morgan Stanley advisor sentenced for fraud.
- 📈 Republicans face hurdles in making tax cuts permanent.
- 🚀 Elon Musk confident in cutting federal spending by $1 trillion.
Question
How do you think President Trump's 25% auto tariffs will impact your future car purchasing decisions—will you opt for domestic vehicles or reconsider buying altogether?
Reply to this email with your answer
Stock Market  President Donald Trump's 25% tariffs on foreign autos and parts are set to create significant challenges for the auto industry. These tariffs, which are part of a broader trade policy overhaul, are expected to increase the prices of new vehicles and impact the used car market. With the global supply chain being highly integrated, automakers are likely to face disruptions, and consumers could see car prices rise by several thousand dollars. The tariffs are designed to encourage domestic manufacturing, but they may also lead to increased costs for companies that rely on foreign-sourced components. Industry experts warn that the tariffs could lead to a decrease in consumer spending on other goods as car prices rise, potentially impacting the broader economy. The auto industry, already grappling with supply chain issues from the pandemic, may face further challenges as it adjusts to the new trade landscape. Automakers and their suppliers are advocating for a tariff implementation that minimizes consumer impact while preserving industry competitiveness. Key Takeaway
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Stock Market  The U.S. economy experienced a 2.4% growth rate in the fourth quarter of 2024, driven by robust consumer spending. This growth marks a slight deceleration from the previous quarter's 3.1% pace, as reported by the Commerce Department. While consumer spending rose, business investment saw a decline, particularly in equipment. The economy's overall growth for 2024 was 2.8%, slightly down from 2023. Inflationary pressures were noted, with the Federal Reserve's preferred inflation gauge rising above its 2% target. Despite the positive growth figures, concerns loom over the potential impact of ongoing trade policies, including newly imposed tariffs on foreign autos. These policies could disrupt investment and push inflation higher, posing risks to future economic growth. The report highlights the economy's resilience at the end of 2024 but points to a clouded outlook as trade uncertainties and policy changes take effect in 2025. Key Takeaway
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Stock Market  Jesus Rodriguez de la Cruz, a former Morgan Stanley financial advisor in El Paso, has been sentenced to 12 years in prison for orchestrating a multi-million dollar fraud scheme. Between 2018 and 2021, Rodriguez de la Cruz defrauded Morgan Stanley and its clients by making fraudulent transfers from their accounts for personal gain. He created false documents and impersonated clients to authorize these transfers, using the funds for personal purchases, including a Lamborghini. The fraudulent activities resulted in a loss of over $5 million for Morgan Stanley. Rodriguez de la Cruz pleaded guilty to charges of wire fraud, aggravated identity theft, and making a false income tax return. This case underscores the importance of vigilance and robust internal controls within financial institutions to prevent and detect fraudulent activities. Key Takeaway
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Stock Market  Republicans in Congress are working to make President Donald Trump's tax cuts permanent, but they face significant obstacles. The primary challenge is the divided opinion within the party on how to fund these cuts while maintaining a balanced budget. The proposed tax cuts, a key part of Trump's 2024 campaign, are expected to be costly, and Republicans aim to use the budget reconciliation process to pass them with a simple majority vote. However, disagreements over spending cuts and budget targets persist, particularly within the House Freedom Caucus. The GOP is considering using a current policy baseline approach to present the tax cuts as a no-cost measure, but this requires approval from the Senate parliamentarian. The outcome of these negotiations will impact the country's fiscal policy and economic growth, making it a critical issue for lawmakers to resolve. Key Takeaway
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Stock Market  Elon Musk, leading the Department of Government Efficiency, expressed confidence in reducing federal spending by $1 trillion without affecting core services. In an interview, Musk outlined plans to cut wasteful spending by 15%, aiming to lower the federal deficit from $2 trillion to $1 trillion. The initiative involves streamlining government operations and eliminating inefficiencies, with support from several tech billionaires. Musk's efforts include revamping outdated government systems with innovative technology solutions. While specific savings targets remain unclear, the initiative represents a significant push to improve government efficiency. The potential impact on federal agencies and services is being closely monitored as Musk's cost-cutting measures continue to unfold. Key Takeaway
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Today's Technical Analysis
RSI Sell | MFI Sell | WillR Sell | AO Sell |
CCI Sell | BBANDS Hold | ULTOSC Sell | STOCH Sell |
RSI Buy | MFI Buy | WillR Buy | AO Buy |
CCI Buy | BBANDS Buy | ULTOSC Hold | STOCH Hold |
RSI Buy | MFI Buy | WillR Buy | AO Buy |
CCI Buy | BBANDS Buy | ULTOSC Hold | STOCH Hold |
RSI Buy | MFI Buy | WillR Buy | AO Buy |
CCI Buy | BBANDS Buy | ULTOSC Hold | STOCH Hold |
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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.
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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.
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