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On the downside, Chipotle sank 3.5% following its first same-store sales decline since 2020, citing consumer spending pressure. PepsiCo and Procter & Gamble both edged lower after trimming forward guidance, with tariffs and cost concerns weighing on their outlooks. Comcast slid more than 3% as subscriber losses overshadowed its earnings beat.
What’s Driving the Economic Narrative?
Initial jobless claims edged higher to 222,000, signaling a still-resilient labor market. The four-week average dipped slightly, reinforcing steady employment conditions even as some states saw localized layoffs in manufacturing and construction.
Durable goods orders spiked 9.2% in March, but nearly all gains came from transportation—up 27%. Excluding transportation, orders were flat, suggesting broader industrial demand is muted. Housing remained soft as well, with March existing-home sales falling to their lowest since 2009 and price gains narrowing to just 2.7% year-over-year.
Is Trade Tension Returning to the Forefront?
Trade developments injected some caution. China’s Commerce Ministry stated no talks were currently underway with the U.S. and dismissed reports of progress, calling instead for tariff rollbacks. This clashed with recent U.S. commentary, including President Trump’s softer tone and Treasury Secretary Bessent’s optimism over a potential “big deal.”
Despite these tensions, markets remained focused on fundamentals, with earnings continuing to steer investor sentiment more than geopolitical headlines.
What’s the Trading Outlook from Here?
The outlook remains cautiously constructive. Strong earnings in key tech and industrial names are offsetting sector-specific concerns and trade noise. Traders should remain selective, favoring companies with pricing power and clear demand visibility.
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