By coinnews 
00:00 Speaker A
It’s looking like turnaround Tuesday for stocks after a bruising three-day stretch. Futures on the Dow Jones Industrial average are up about 800 points as traders lock in on the Trump administration reportedly beginning trade discussions with Japan. Gains are also being seen on the S&P 500 and Nasdaq composite. The news is being seen as a sign Trump’s broad tariffs, which are set to kick in on Wednesday, will prove to be a negotiating tactic. China, however, vowed today to quote, “fight to the end” on the tariff front. Here’s what you need to know on what could be a turnaround Tuesday for stocks. Levi’s puts investors through the spin cycle. Shares of the jeans maker surged 10% in early trading following better than expected quarterly earnings. Company’s ticker page was among the most visited on Yahoo Finance. Investors appear to be cheering Levi’s maintaining its full-year profit outlook. My question to investors, though, did you listen to the earnings call? Levi’s said it had established a tariff task force to estimate the tariff impact. Right now, it has no clue on the impact. If that sounds bullish, well then, I have a full head of hair. Staying on retail, Walmart is in focus. Wall Street is still trying to estimate the hit to profits from all sorts of companies. Today, veteran retail analyst Greg Melich over at Evercore ISI is out estimating a worst-case scenario on tariffs on Walmart. Says Melich, quote, “If 50% incremental tariffs on China and 20% rest of the world tariffs are maintained and no carrots of tax cuts or deregulation are implemented, we estimate the EPS pressure for Walmart of 2% could grow by three times, brutal.” And last but not least, it could be the year of lost profits for companies due to tariffs. Currently, the bottom-up consensus earnings per share expectation for the S&P 500 assumes 9.6% growth. Some of the biggest EPS gains are seen at tech darlings like Nvidia, Broadcom, Netflix, and of course, Microsoft. But longtime strategist Adam Parker at Trivariate Research says investors no longer believe those numbers. Parker thinks the tariffs are such a headwind investors may see no earnings growth for the S&P 500.