Trump tariff fatigue, stock market euphoria, and Netflix sell-off: Opening Bid takeaways
- - - Trump tariff fatigue, stock market euphoria, and Netflix sell-off: Opening Bid takeaways
Brian SozziJuly 11, 2025 at 10:58 PM
Investors have had their fair share of things to digest this week.
Trump the tariff man has returned in force. The president slapped a 50% tariff on copper imports, powering shares of metals play Freeport-McMoRan (FCX) up almost 5% on the week. Copper (HG=F) prices have surged 10% since Monday.
Late Thursday, Trump posted a letter threatening to impose 35% tariffs on goods from Canada.
The barrage of letters began on Monday, setting tariffs of 25% on goods from Japan and South Korea and 50% on Brazil. He added that countries that do not get letters will incur a straight tariff rate of 15% to 20%, up from 10% currently.
Yet, companies like Delta (DAL) and Levi's (LEVI) are offering up decent outlooks. And the market is rewarding the more upbeat guidance ranges.
Delta stock finished Thursday's session up 12%. Levi's popped 7% on Friday as it lifted its full-year sales outlook and said tariffs won't hammer its business this year.
"Delta's results tell me that the domestic consumer, while there could be some constraints there, it also shows me the resilience that we're seeing with corporate America," StockBroker.com's Jessica Inskip told me on Opening Bid.
Here is everything we touched on during Yahoo Finance's Opening Bid on Friday. Tune in live daily to Opening Bid at 9:30 a.m.
1. The return of tariff man!
President Trump threatened Canada with 35% tariffs in what has been a blistering week of new jawboning on the tariff front. Investors are wondering if all of this is just a classic Trump negotiating tactic or if the president is poised to hit countries hard come the Aug. 1 deadline.
2. Market euphoria
The S&P 500 (^GSPC) and the Nasdaq Composite (^IXIC) reached new all-time highs Thursday. Even with markets in digestion mode today, it still looks like investors are experiencing tariff fatigue.
Great callout on this: A new report from BofA today showed that clients aren't remotely worried about economic risks or more inflated stock valuations.
"I think I would say we're in the full fledged flight to crap mode right now, and there's definitely heavy pockets of speculation," Interactive Brokers chief strategist Steve Sosnick warned.
3. Earnings surprises
Just a few days removed from getting earnings reports from important economic bellwethers like JPMorgan (JPM) and Netflix (NFLX), the market has gotten a taste of what could lie ahead — that is, well-received second quarter earnings beats, solid guidance, and not-so-gloomy earnings call commentary.
Levi's checked these boxes with its earnings last night and raised its full-year sales outlook.
4. Eyes on Netflix
Normally we do a stock of the day on Opening Bid, but on this Friday we cranked it up a gear with — the stock of the week!
I am focused on Netflix (NFLX) ahead of its July 17 earnings report. What has caught my attention is that the stock has been underperforming the broader stock market rally this month. Shares are down 5.5% in July while the S&P 500 is up 1.7%.
Judging by the Wall Street commentary out there, analysts aren't making too much of this trend divergence.
Yahoo Finance's Invest conference is coming! Secure your spot.
Needham analyst Laura Martin is out today raising her price target on Netflix to $1,500 from $1,126. She said she remains impressed with Netflix's global scale and stable content spending.
Jumping into the Yahoo Finance platform, you can see Martin isn't alone in her bullishness. The Street has hiked its 2025 EPS estimate on Netflix by $0.79 compared to 90 days ago. It also lifted its 2026 EPS estimate by $0.60 during that same time span.
"I think it's a normal sector rotation [out of Netflix]. Fund managers have made a lot of money this year in tech and some of these growth stocks," Blue Chip Daily Trend Report chief technical strategist Larry Tentarelli said.
Brian Sozzi is Yahoo Finance's Executive Editor and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email [email protected].
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