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Miriam Gottfried

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WSJ What’s News

What to Watch for This Earnings Season as Trump’s Tariffs Come Into Play

1217.02

What about another mode of transportation, which we can't really live without, which is cars? I think that's going to be a big focus in this quarter.

WSJ What’s News

What to Watch for This Earnings Season as Trump’s Tariffs Come Into Play

1234.141

Can the automakers pass along these price increases? They've been struggling even before tariffs.

WSJ What’s News

What to Watch for This Earnings Season as Trump’s Tariffs Come Into Play

1287.09

And didn't President Trump explicitly warn the auto CEOs do not raise prices as a result of these tariffs? So the spotlight's kind of on them right now.

WSJ What’s News

What to Watch for This Earnings Season as Trump’s Tariffs Come Into Play

1340.489

You get a couple of windshield wipers. Do people do that? Yeah.

WSJ What’s News

What to Watch for This Earnings Season as Trump’s Tariffs Come Into Play

1517.22

Some of them might be rewriting their guidance up until the minute before their earnings call.

WSJ What’s News

What to Watch for This Earnings Season as Trump’s Tariffs Come Into Play

154.605

I mean, the administration did not hold back. I think there had been a view beforehand that they will either take the across the board tariff approach, one flat rate for every country to pay on imports, or there will be this reciprocal approach where we're trying to bring other countries into parity with what the U.S. has to pay. And in fact, there was both.

WSJ What’s News

What to Watch for This Earnings Season as Trump’s Tariffs Come Into Play

1676.195

All right, welcome back, Christine. In 30 seconds or less, is there a sector of the economy that will surprise the market this quarter?

WSJ What’s News

What to Watch for This Earnings Season as Trump’s Tariffs Come Into Play

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And I'm Miriam Gottfried. Until next time.

WSJ What’s News

What to Watch for This Earnings Season as Trump’s Tariffs Come Into Play

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So we have first a 10 percent across the board tariff on all imports and then even higher rates on top of that for countries the White House considers to be bad actors on tariffs. And there will also be a 25 percent duty on all foreign made cars, which was sort of, you know, forecast. We kind of knew that was coming. Let's go to a clip from the announcement.

WSJ What’s News

What to Watch for This Earnings Season as Trump’s Tariffs Come Into Play

215.439

So these are pretty extreme changes and the market reacted pretty dramatically right afterwards to this news. I mean, there are a lot of Yeah.

WSJ What’s News

What to Watch for This Earnings Season as Trump’s Tariffs Come Into Play

271.38

Yeah. And that's why Trump positioned these numbers as being kind to other countries. We were being nice to them because we're not doing the full trade deficit. We're taking it and cutting it in half. And then that's what we're charging them. But these are big numbers. These are big numbers. And, you know, I can't tell you the number of products in my house that say made in Vietnam.

WSJ What’s News

What to Watch for This Earnings Season as Trump’s Tariffs Come Into Play

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made in China. You know, these are this is where a lot of our goods come from today.

WSJ What’s News

What to Watch for This Earnings Season as Trump’s Tariffs Come Into Play

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tariffs. Yeah, that's right. I think that's true. And I think what people will look for now is whether some of these individual countries decide to strike deals with the U.S. to try to negotiate these rates down a little bit. I mean, that's the goal of reciprocal tariffs, right, is just try to kind of bring people to the bargaining table and get something out of them.

WSJ What’s News

What to Watch for This Earnings Season as Trump’s Tariffs Come Into Play

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So I wouldn't be surprised if pretty soon we start to see certain countries coming forward with proposals that, you know, might appease the White House and get some of these tariffs to be modified.

WSJ What’s News

What to Watch for This Earnings Season as Trump’s Tariffs Come Into Play

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OK, let's move on to the earnings front. The first quarter earnings report season is popping off this coming week.

WSJ What’s News

What to Watch for This Earnings Season as Trump’s Tariffs Come Into Play

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You know, I'm really curious about Delta, which already lowered its guidance, along with many other airlines. You know, the amount that businesses and consumers spend on air travel, I think, is an indication of their sentiment, their optimism about the future, how much they believe they can, you know, shell out versus how much they have to save just in case things go wrong.

WSJ What’s News

What to Watch for This Earnings Season as Trump’s Tariffs Come Into Play

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Maybe that was just everybody selling off autos. Who knows?

WSJ What’s News

What to Watch for This Earnings Season as Trump’s Tariffs Come Into Play

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That could at least improve profitability in the short term. We don't know.

WSJ What’s News

What to Watch for This Earnings Season as Trump’s Tariffs Come Into Play

594.648

Or at least in the short term, because I think, you know, consumer spending is still an important part of the economy. And as that comes down, that will eventually affect companies need to sell stuff to someone. Yeah.

WSJ What’s News

What to Watch for This Earnings Season as Trump’s Tariffs Come Into Play

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Today in the studio, we are joined by Christine Short to talk about first quarter earnings, which kick off this coming week. She is the head of research at Wall Street Horizon, a TMX Group company. Christine, welcome. Thank you so much for having me. So we are about to enter earnings season and tariffs are looming large. What does that mean for corporate earnings?

WSJ What’s News

What to Watch for This Earnings Season as Trump’s Tariffs Come Into Play

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Will some companies be able to pass these tariffs along and what kinds of companies will struggle to do that?

WSJ What’s News

What to Watch for This Earnings Season as Trump’s Tariffs Come Into Play

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So they were basically saying we're powerless against these tariffs. Like even we, these big companies can't really push back that much.

WSJ What’s News

What to Watch for This Earnings Season as Trump’s Tariffs Come Into Play

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It's great to be here, Telos, and I am very excited to talk to you about Tariffs again.

WSJ What’s News

What to Watch for This Earnings Season as Trump’s Tariffs Come Into Play

974.513

Telus and I have both covered a lot of earnings reports, and we know that sometimes the stock doesn't move in the way you expect it to. So do beats and misses really matter? I mean, what should investors actually be looking for on an earnings report to tell them how the stock's going to move?