US retailers are huggling with suppliers after Trump’s tariffs
Walmart and Target, the leading US retailers, are quarreling behind the scenes with suppliers over how much they will raise prices in the wake of President Trump’s tariffs. The outcome of their talk will depend on when prices will rise, and even which products will stay on the shelves.
US stocks moved forward on Friday, with the Broad S&P 500 trying to extend its winning streak to five days, even after showing that consumers continue to feel pessimistic.
The University of Michigan Consumer Sentiment Index fell to another 50.8, according to a May preliminary measure below the economist’s forecast of 53.5.
The final April survey showed that the index would fall to 52.2, with consumers expecting a decline in their own income growth over the next year and that inflation would increase.
At 10:15am ET, the Blue Chip Dow rose 0.02% or 10.06 points to 42,332.81. The S&P 500 has added 0.13% (7.66 points) to 5,924.59. And the high-tech Nasdaq rose 0.19%, or 35.68 points, to 19,148.00. The benchmark 2010-year Treasury Department fell to 4.414%.
The stocks came back Thursday to help by encouraging economic data.
Retail sales rose 0.1% in April, with producer prices falling without changing economists’ forecasts. Producer prices, or wholesale prices, measure the companies paying for goods or services.
“While this news is dominated by the negative impact of tariffs, (The) retail sales numbers show that consumers continue to drive retail spending in the face of increasing uncertainty,” said Neil Saunders, managing director of GlobalData.
And with inflation easing, the Federal Reserve may have room to lower fees later this year, some economists said.
Corporate News
- Charter Communications has agreed to purchase its close-holding rival Cox Communications for $21.9 billion. Charter stocks rose 3.77%.
- Revenue from applied materials for the second fiscal quarter surpassed analyst expectations, but sales were missed. The chip company said the trade war has not changed demand significantly. Stocks fell by more than 6%.
- Video game maker Take-Two warned that it would report full-year losses and lower-than-expected sales after delaying the next installment payment for the “Grand Theft Auto” franchise. The stocks were slightly higher.
- Novo Nordisk’s CEO has resigned. Stocks fell by more than 3%.
This story has been updated with new information.
Medora Lee is a money, market and personal finance reporter for USA Today. mjlee@usatoday.com and Subscribe to our free daily money newsletter Personal finance tips and business news every Monday to Friday.
