Jamie Kelter Davis, Bloomberg via Getty Images
Key Takeaways
- The S&P 500 edged 0.4% higher on Tuesday, April 1, a day ahead of the Trump administration's anticipated rollout of new tariffs.
- Following a strong earnings announcement from Calvin Klein parent PVH, shares of fashion companies rose.
- Johnson & Johnson said it failed to reach a settlement in liability cases related to its baby powder. The health care giant’s shares fell.
Major U.S. equities ended the first trading day in the second quarter mixed.
A vacillating Tuesday session occurred a day before President Donald Trump’s scheduled announcement of global tariffs aimed at trade reciprocity—and with uncertainties remaining about the specifics of the levies the U.S. will impose.
After fluctuating for much of the day, the S&P 500 ended with a gain of 0.4%. The Nasdaq rose by 0.9%, and the Dow fell by less than 0.1%.
Shares of Vistra (VST), the power generator that has drawn attention for its opportunity to provide electricity for energy-intensive artificial intelligence data centers, rose 4.1%, notching the top daily performance in the S&P 500. Vistra’s gains marked a reversal of steep losses last week due to concerns about a potential AI data center bubble, and a JPMorgan analysts’ price target reduction citing an uncertain regulatory outlook.
PVH Corporation (PVH), the parent company of Calvin Klein, Tommy Hilfiger & Co., posted better than expected quarterly sales and profit. PVH shares rose 18%. Ralph Lauren (RL), a stock included in Bank of America’s top 10 ideas for 2025’s second quarter, saw its shares rise 3.7%. Shares of Coach parent Tapestry gained 3.5%.
Tesla (TSLA), shares rose 3.6% a week before the expected first-quarter update from the electric car maker. Tesla (TSLA), despite the protests against Elon Musk and the reported sales pressure on European markets, has seen its shares rise 3.6% a single day before the expected first-quarter update.
Johnson & Johnson (JNJ) shares fell 7.6%, the most of any S&P 500 stock, as the company said that a judge denied its plan to settle thousands of legal claims alleging that its baby powder and other talc products cause ovarian cancer. The rejected proposal involved a “prepackaged” bankruptcy plan for a subordinate. The health care company has said that they will return to tort law in order to defeat the claims.
Analysts at Jefferies downgraded the ratings of three of the four largest U.S. airlines, citing a soft consumer sentiment and uncertainty about tariffs. Southwest Airlines shares (LUV) dropped 5.9% as Jefferies reduced its rating on the stock from “outperform” to “underperform.” Southwest Airlines announced earlier this month that it would move to a paid luggage policy, moving away from an old perk that distinguished Southwest from its competitors. Jefferies downgraded Delta Air Lines and American Airlines to “hold” and their shares fell 2.7% and 2.4% respectively.
Warner Bros. Discovery (WBD), a subsidiary of Warner Bros., saw its shares fall 4.8%. The entertainment giant appointed Anton Levy as an independent member to its expanded board of director. Levy is an advisory director with private equity firm General Atlantic. The move came at a time when the company was struggling with its film studio. It also engaged in a restructuring, which involved separating its streaming and studio business from its cable TV properties.
