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Takeaways
- The S&P 500 advanced 2.5% on Tuesday, April 22, as investors monitored the latest trade negotiations and corporate earnings news.
- Equifax shares rose as the credit rating company surpassed quarterly estimates. This showed its resilience in spite of headwinds on the mortgage and hiring market.
- Northrop Grumman shares dropped after the B-21 bomber program was cancelled.
Investors reacted to the latest news on corporate earnings and trade negotiations.
Stocks rose after reports of progress in trade talks with India. No deals have been reached so far. The window for negotiations has also shrunk, with only 78 days left until President Trump’s 90 day suspension of “reciprocal tariffs”.
The S&P 500 ended Tuesday's session with a gain of 2.5%. Both the Dow Jones Industrial Average and the Nasdaq index, which is heavily tech-oriented, posted daily gains of approximately 2.7%.
Equifax (EFX) shares logged the day’s top performance in the S&P 500, surging 13.8% after the consumer credit rating agency reported better-than-expected sales and adjusted profits for the first quarter. The information provider stated that despite the headwinds experienced in its U.S. hiring and mortgage businesses, it was able to achieve a strong performance. Equifax announced a $3 billion share buyback program and increased its quarterly dividend.
First Solar’s (FSLR) shares jumped by 10.5% following the announcement of significant antidumping duties. The U.S. government imposed these duties on equipment imported from four Southeast Asian countries, which historically accounted for most of the solar panel and cell imports. The move may increase solar panel prices in the U.S. while not affecting First Solar’s production capacity.
Pentair’s (PNR), which provides water treatment solutions, exceeded analysts’ expectations for its first-quarter profits and sales. The company’s shares also gained 9.2%. Pentair’s earnings and margins increased despite a decline in revenue. The CEO praised the company for its adaptability and resilience to tariff impacts.
Northrop Grumman (NOC) shares plunged 12.7%, falling the furthest of any S&P 500 stock, after the aerospace and defense technology firm missed quarterly sales and profit estimates. Northrop Grumman’s B-21 program suffered a $477-million loss, due to higher production and material costs. The disappointing results weighed down on other stocks within the defense sector. Shares of aviation peer RTX fell 9.8%.
Halliburton, a giant in oilfield services, has indicated that tariffs as well as a slumping oilfield industry could affect its performance for the second quarter. The company said that its clients are evaluating their options for production activities as they react in response to the uncertain economy and falling crude oil prices. Halliburton shares fell 5.6%.
Kimberly-Clark’s (KMB) stock fell 1.5% after the Kleenex manufacturer reduced its profit forecast for 2025, citing a $300-million cost impact due to tariffs imposed on the Trump administration. The paper products manufacturer, although it manufactures most its products domestically said that the current trading environment would have an impact on its global supply chains.
