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Pre-Markets Stay Flat a Week Ahead of Tariffs

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Wednesday, March 25, 2025

We are starting to get the feeling market participants are keeping trading levels relatively flat ahead of the still-unknown impact of new tariff policy in the U.S. beginning a week ago today, April 2nd. After a flattish session yesterday, the Dow is currently up +50 points, the S&P 500 — technically riding a three-day winning streak — is +1 and the Nasdaq +15 points.

Depending on the ultimate severity of these tariffs — and what counter-tariffs are installed by our trading partners elsewhere — monthly economic data, which is essentially backward-looking, may not have the currency it would in “normal times.” Thus, while most metrics depict a healthy economy overall, it’s impossible to truly prepare for what is to come; nobody knows what it is.
 

Durable Goods Better than Expected


That said, Durable Goods Orders for February are out this morning, beating expectations on nearly every level. Headline +0.9% swings to a positive from the -1.0% anticipated, and follows an upwardly revised +3.3% from the prior month — the best read since July of last year. Subtracting big-ticket transportation orders, this metric improves to +0.7% from +0.1% a month ago.

The only segment of this report to underperform was in the proxy for basic business expenses, non-Defense, ex-aircraft: -0.3%, swinging to a negative from the +0.2% expected and the upwardly revised +0.9% previously posted. Shipments reached +0.9%, a big jump from the +0.2% anticipated and the downwardly revised +0.2%.

If we want to view this with the shadow of future tariffs superimposed, we may see these improved figures as pulling-forward goods orders ahead of April 2nd. Time will tell if we see a drop-off over the next few months. This is also a preliminary Durable Goods report, so figures are subject to change, in any case.
 

Late Q4 Earnings This Morning: DLTR, CHWY


Dollar Tree (DLTR - Free Report) posted mixed results in its Q4 report ahead of today’s open. Earnings of $2.29 per share topped expectations by 11 cents, while revenues missed estimates badly: by -39% to $5.0 billion for the quarter. However, the company is extricating itself from its Family Dollar merger, announcing the sale of that company for $1 billion. Shares are up +2% on the news. For more on DLTR’s earnings, click here.

Check out the updated Zacks Earnings Calendar here.

Pet goods delivery major Chewy (CHWY - Free Report) outpaced estimates on both top and bottom lines in its Q4 report this morning, with earnings of 28 cents per share beating the Zacks consensus by 7 cents, while revenues of $3.25 billion bettered the $3.20 billion analysts were expecting. Sales grew +15% year over year on 30 basis-point (bps) growth in gross margins. Shares are up +5% on the news ahead of the open.

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