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OVERVIEW
Tariffs, Coming To A Theater Near You 📽️

Happy Cinco de Mayo!! The market fell after hitting the best day after day climb for twenty years, who knew that would happen? Earnings came in from Hims, Ford, and Palantir, Trump talked tariffs some more, and Treasury Secretary Scott Bessent said everything was going great.

Today's issue covers tariffs coming to a theater near you this summer, PLTR and HIMS report, and more. 📰

Here’s the S&P 500 heatmap. 2 of 11 sectors closed green, with communications (+0.24%) leading and consumer discretionary (-1.06%) lagging.

And here are the closing prices: 

STOCKS
Tariffs, Coming To A Theater Near You? 📽️ 

Have no fear, Trump said he would save Hollywood from a “very fast death” in a Truth social post on Sunday, announcing 100% tariffs on foreign-made movies, whatever that could mean.

The White House walked back the comments on Monday, and Trump said he wanted to boost domestic film production and help, not hurt, the industry.

Industry public stocks were falling Monday on the news, as it was not clear how the White House would implement levies on intellectual property. Did it mean all streaming from outside the country as well? Would Formula 1 races in Dubai get a surcharge for American audiences?

The largest content producers felt the sell-off on Monday, with Netflix, Warner Bros. Discovery, and Walt Disney falling. $PARA ( ▼ 0.42% ) was off nearly 2%, due to report later this week.

According to production tech firm ProdPro, in 2023, about half of U.S. production spending went outside the U.S., for projects over $10M. It’s not just Hollywood that should be worried. Axios reported that up until now, tariffs have focused on physical shipments.

70% of the U.S. economy by GDP produces services, including tech subscriptions and financial products. No one makes goods in the U.S. anymore, but the U.S. is one of the wealthiest countries in the world largely because of its intellectual property. If the White House starts taxing ideas like they have shipping containers… no one knows what could happen. 🤯 

Trump also said he will lower tariffs on China “at some point” but ruled out dropping them to bring China to the negotiating table. Treasury Secretary Scott Bessent, meanwhile, defended Trump’s tariffs, stating they encourage companies to invest in the U.S. He called the U.S. economy “antifragile.” 🦴 

Stocktwits users went ‘extremely bullish’ on Netflix, and in a poll, nearly 40% said they were selling or trimming their holdings.

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