This Week in Earnings – Q4’24

President Trump Administration / Tariffs

• On Tuesday, President Trump announced plans to impose tariffs “in the neighborhood of 25%” on imports of cars, semiconductors, and pharmaceutical products. These tariffs are expected to be formally introduced on April 2, following a comprehensive review of trade policies. President Trump said he was also thinking about a 25% tariff on lumber and forest products, to take effect around the same time. (Source: Reuters)
• EU Trade Commissioner met with U.S. officials to discuss and potentially resolve trade conflicts arising from President Trump’s proposed reciprocal tariffs. The EU has expressed willingness to negotiate, including the possibility of reducing its 10% tariff on car imports to align more closely with the U.S. rate of 2.5%. (Source: AP, Politico)
• On Tuesday, Trump issued an executive order that aims to curb the ability of some of Washington’s most powerful regulators to oversee banks and other companies. The order allows the White House to shift the budget and policies of the Federal Election Commission, the SEC, the National Labor Relations Board and other agencies. The order exempts the Federal Reserve’s Board of Governors and FOMC from the additional oversight. (Source: Reuters, Bloomberg)
• Elon Musk’s DOGE taskforce claimed this week that its cuts saved $55B in federal funds so far, though the figure is hard to verify as only a portion of the contracts allegedly terminated has been disclosed. Musk also endorsed the idea of using 20% of the savings for a “DOGE Dividend” that would send direct payments to American citizens, with another 20% used to pay down the national debt. Trump on Wednesday indicated support for the idea. (Source: ABC News)

Labor Market

• U.S. Initial Jobless Claims rose 5,000 to a seasonally adjusted 219,000 for the week ended February 15, slightly more than the 215,000 projected by analysts. Continuing claims increased 24,000 to a seasonally adjusted 1.869M during the week ending February 8. (Source: Labor Department)

Housing & Construction

• U.S. Housing Starts fell 9.8% MoM to a rate of 1.366M units in January, below analyst expectations for 1.390M units. Single-family housing starts, which account for the bulk of homebuilding, dropped 8.4% MoM to a seasonally adjusted annual rate of 993,000 units. December was revised higher to 1.084M units from the previously reported pace of 1.050M units. (Source: Commerce Department)
• Privately-owned housing units authorized by building permits were at a seasonally adjusted annual rate of 1.483M units in January. This is 0.1% above the revised December rate of 1.482M units, but 1.7% below the January 2024 rate of 1.508M. (Source: Commerce Department)
• The NAHB homebuilder sentiment dropped to 42.0 in February, down from January’s 47.0 reading. The report from the National Association of Home Builders noted uncertainties about tariff impacts on timber and appliances pushed builder expectations for future sales volumes down to lowest point since December 2023. (Source: NAHB)