President Trump is making a big mistake with the name-calling, although he has a legitimate beef. 

For me, it’s the Federal Reserve — “The Creature from Jekyll Island.” It's designed to keep the ultra-wealthy insulated while excluding the rest of the public. They hike rates when regular folks get too many raises and only cut them when aggregate demand slumps, which means demand from the top 10% is dragging.

There were no middle-class folks at the meeting to form the Federal Reserve, yet they bear the brunt of poor timing and failed actions over and over. The Fed must know that at the pace we are on, deflation is the bigger risk, and the real shock will be to the jobs picture. They should act or acknowledge what has become clear to the market.

Sun Going Down

The S&P 500 Index heatmap shows a scorched earth (below). I understand some investors are tired of the constant pressure, but it's only been weeks. This is the test. The markets are trying to force ‘Trump and Powell Puts’. 

I hoped that Powell would blink, partly because I think the tariff approach could work, although I admit the rollout has been uneven and self-defeating. America voted for bold leadership. There is no way the turmoil in markets and White House messaging is helping.

Only 7% of the S&P 500 (SPX) advanced yesterday, while 29% did so on the NASDAQ Composite.

Stocks tumbled out of the gate, and it was downhill until 2:50 PM. Those closing rallies also sent a message. I think it's clever money positioning for positive overnight news on tariffs.

Brace for Earnings

Big Earnings Day with Tesla (TSLA), which reports after the close at the top of the list with its $775 billion market capitalization.

“Mag Seven” is expected to grow earnings faster vs. the other 493.

Common Spirit

When I look at the market and filter out the noise of those cheering on the worst kind of clamor, primarily for political reasons, the market sends a different message.

The market and the nation are looking for a shot of esprit de corps.

This isn’t the end of “American Exceptionalism,” and there is no other nation or group of nations to hand that baton to anyway.

Europe is a disaster. Too many structural problems need fixing, which will be more difficult than ditching Germany's debt brake.

China isn’t ready to lead the free world and has reverted to its wolf diplomacy tactics. The notion that Euripides is entertaining overtures from China is dangerously ironic.

Sadly, Europe cannot stand alone this many years after the sacrifices of the United States and the Marshall Plan.

This Trade War is nothing more than trying to “right the ship,” all the key players understand this, no matter what is tossed out there for public consumption.

The masses reject globalism, producing uneven gains and growing hopelessness in the world’s wealthiest nations.

George Marshall helped to craft the post-World War II world. His resume speaks for itself. He always has one of the most famous quotes on esprit de corps.

This trade war should be an investment in America’s future. It's not about short-term stock market moves but long-term shared prosperity.

Sadly, the messaging from the globalists has been effective.

The clock is ticking. We need the White House to infuse the nation with esprit de corps because we need a modern-day Marshall Plan for America.

It would be a shame to abandon the last chance because of a short-term hiccup in the stock market or temporary weakness in the dollar.

Today’s Session

This morning’s story is about information from the horses’ mouths. Big American companies reporting results, tell the story of American Exceptionalism.

It’s not only high-tech companies leading the Fourth Industrial Revolution.

Companies that are more than 100 years old have survived many scenarios with far greater detrimental impact than the fearmongering flooding the airwaves.

They adapt and adjust.

The thing is that Americans are the end-consumer in the world, it is time we make sure everyone gets a bite of the apple. We need to make stuff in America.  Let those that chill in the Hamptons laugh at the notion of doing menial jobs, but lots of American do them, and more would if they paid more and alternatives (read government funds) were cut off.

Stocks of the Day

3M (MMM)

The company offered guidance, adding potential impact for tariffs, but reiterating that business is doing well.

Shares initially popped more than 6.0% in premarket trading.

GE Aerospace (GE)

The company offered full-year 2025 guidance that assumes the impact of announced tariffs net of actions.

Guidance does not assume changes in airframer delivery schedules, further tariff escalation or a global economic recession.

Lockheed Martin (LMT)

The company reaffirmed guidance and it does not include impacts of evolving tariffs.

Chevron (CVX)

The CEO of Chevron (CVX) says there are no signs that the US is in a recession or close to a recession.

The media is pushing “sell America” hard and amplifying any down tick while urging investors to “sell the rip.”

We can’t fight that negative momentum. We can take notes and continue to reassess tremendous values that are being created.

Comments

Charles, Thank you for giving your readers the REAL scoop of what is going on!!! You are helping us keep a cool head! Anita Anita Ariail on 4/22/2025 10:27:13 AM

It seems funny that I only get Yahoo finance alerts when the market is down 😂 Jlm on 4/22/2025 10:43:49 AM

Charles… I read you every day… for good reason!! And today is exceptional. Don Fapore on 4/22/2025 3:11:30 PM

I think the real problem is most of Wall Street, which screams either buy or sell depending on what to them is good or bad news on a daily basis (sometimes on an hourly basis) with little of no thought to the long term. Jim Peyton on 4/22/2025 5:39:34 PM

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