• Trump tariff “Liberation Day” and the newest jobs report loom within the week forward.
• ExxonMobil seems well-positioned to capitalize on the altering dynamics of power commerce.
• Common Motors is predicted to face challenges as a result of new tariffs set to be unveiled, doubtlessly making it a inventory to promote.
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U.S. shares tumbled on Friday to wrap up a risky week as a detrimental combine of stories associated to inflation, the economic system, and President Donald Trump’s commerce warfare triggered a pointy selloff.
For the week, the fell about 1%, the slumped 1.5%, whereas the tech-heavy declined 2.6%.
With this newest dropping week, the Nasdaq is now on tempo for a greater than 8% month-to-month decline, which might be its worst month-to-month efficiency since December 2022.
Supply: Investing.com
The week forward is predicted to be an eventful one as traders sit up for Wednesday, when President Trump is predicted to announce a contemporary spherical of tariffs, for additional readability.
Most vital on the calendar will likely be Friday’s U.S. employment report for March, which is forecast to indicate the economic system added 139,000 positions. The unemployment fee is seen holding regular at 4.1%.
Supply: Investing.com
That will likely be accompanied by a heavy slate of Fed audio system, together with Chairman Jerome Powell. Rate of interest futures recommend merchants see a 79% probability that the Fed will lower rates of interest by 25 foundation factors by its June assembly, in response to Investing.com .
Elsewhere, on the earnings docket, there are only a handful of company outcomes due, together with Conagra Manufacturers (NYSE:), Lamb Weston (NYSE:), RH (NYSE:), Guess (NYSE:), and PVH (NYSE:).
No matter which path the market goes, under I spotlight one inventory more likely to be in demand and one other which might see contemporary draw back. Bear in mind although, my timeframe is only for the week forward, Monday, March 31 – Friday, April 4.
Inventory To Purchase: ExxonMobil
Because the so-called “Liberation Day” approaches, ExxonMobil (NYSE:) is poised to capitalize on the Trump administration’s aggressive commerce and power agenda.
The president’s pursuit of a commerce warfare with allies Mexico and Canada—America’s high sources of imported crude oil—has already seen tariffs slapped on crude from these neighbors.
This transfer is designed to squeeze international oil provides and bolster home manufacturing, a transparent win for ExxonMobil, one of many U.S.’s power titans.
Including gasoline to the fireplace, Trump’s sanctions on Venezuelan oil threaten to tighten world crude markets additional. His administration has warned that any nation buying Venezuelan oil will face a 25% tariff, a coverage that might drive oil costs increased.
With crude costs trending upward, ExxonMobil’s sturdy home operations stand to learn as Trump doubles down on his promise to supercharge U.S. power independence.
Supply: Investing.com
XOM inventory ended Friday’s session at $117.73, placing it nearby of its October 2024 file peak of $126.34. ExxonMobil has a market cap of $510 billion at its present valuation, making it the biggest U.S. oil producer and the 14th most useful firm buying and selling on the NYSE.
Shares have elevated 9.4% because the begin of 2024, outperforming the broader market by a large margin over the identical interval.
Supply: InvestingPro
The Irving, Texas-based oil big maintains a stable Monetary Well being rating of two.88, incomes it a “GOOD” ranking as per the InvestingPro mannequin. This rating is bolstered by robust efficiency in particular areas, significantly value momentum (3.56) and revenue metrics (3.41), whereas money circulate (3.18) additionally reveals energy.
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Inventory to Promote: Common Motors
On the flip facet, Common Motors (NYSE:) finds itself within the crosshairs of Trump’s tariff barrage, making it a inventory to keep away from this week.
The administration’s determination to impose a 25% tariff on practically all imported autos and elements is a big blow to the U.S. auto business—and GM specifically. Efficient April 3, these tariffs cowl a broad vary of imports, with restricted aid for USMCA-compliant autos.
This transfer introduces a possible $110 billion annual price enhance throughout the sector, translating to an estimated $6,700 per car.
GM’s reliance on a globally interconnected provide chain makes it significantly susceptible, as absorbing the tariff prices might erode revenue margins, whereas passing them on to shoppers dangers a big decline in gross sales.
For GM, which depends closely on imports, the tariffs pose a considerable menace to its earnings energy, with a notable hit anticipated by the second half of 2025.
Supply: Investing.com
GM inventory closed at $46.68 on Friday, not removed from a 2025 low of $44.41 touched on March 4. At present valuations, Common Motors has a market cap of $46.5 billion, making it the second largest U.S. automaker after Tesla (NASDAQ:).
Shares, that are buying and selling under their key shifting averages, are down 12.4% within the year-to-date.
Supply: InvestingPro
The automaker maintains a decent monetary well being general rating of two.61, additionally incomes a “GOOD” ranking. GM reveals balanced efficiency throughout revenue metrics (2.76) and development (2.75), however demonstrates some weak spot in money circulate (2.03) and value momentum (2.29).
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Disclosure: On the time of writing, I’m quick on the S&P 500 and by way of the ProShares Quick S&P 500 ETF (SH) and ProShares Quick QQQ ETF (PSQ).
I often rebalance my portfolio of particular person shares and ETFs based mostly on ongoing danger evaluation of each the macroeconomic atmosphere and firms’ financials.
The views mentioned on this article are solely the opinion of the creator and shouldn’t be taken as funding recommendation.
Comply with Jesse Cohen on X/Twitter @JesseCohenInv for extra inventory market evaluation and perception.