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2 stocks to buy now as more Trump tariffs go live
CATCaterpillar(CAT) Finbold·2025-03-04 13:06

Group 1: Tariff Impact - President Trump's trade tariffs took effect on March 4, 2025, causing panic in the stock market and significant capital outflow in major indices [1][2] - The tariffs include a 25% tariff on all Mexican goods, 25% on Canadian goods (excluding energy), 20% on many Chinese imports, and a 10% tariff on Canadian energy, with Canada retaliating with a 25% tariff on up to 155billionworthofU.S.exports[2]TheDowJonesIndustrialAverageexperiencedadramaticdropof1,100pointsafterinitiallyopening300pointshigher,indicatinga1,400pointreversal[2]Group2:Walmart(NYSE:WMT)Walmartispositionedasadefensivestockwitharesilientbusinessmodel,benefitingfromconsumerprioritizationofvalueduringeconomicuncertainty[5]Despiteinitialweaknessduetotariffannouncements,Walmartssophisticatedsupplychainandstrongpricingpowerhelpmitigatecostincreasesfromtariffs[6]Walmartreportedrevenueof155 billion worth of U.S. exports [2] - The Dow Jones Industrial Average experienced a dramatic drop of 1,100 points after initially opening 300 points higher, indicating a 1,400-point reversal [2] Group 2: Walmart (NYSE: WMT) - Walmart is positioned as a defensive stock with a resilient business model, benefiting from consumer prioritization of value during economic uncertainty [5] - Despite initial weakness due to tariff announcements, Walmart's sophisticated supply chain and strong pricing power help mitigate cost increases from tariffs [6] - Walmart reported revenue of 180.55 billion in the fourth quarter, a 4% year-over-year increase, and online sales now account for 18% of total revenue, with global e-commerce growing 16% last quarter [6][8] Group 3: Caterpillar (NYSE: CAT) - Caterpillar operates in the industrial equipment sector and may benefit from increased U.S. demand if tariffs lead to higher infrastructure spending or domestic manufacturing [9] - Although facing potential international sales challenges due to tariffs, Caterpillar's innovations in technology, such as AI and electrified powertrains, could help offset negative impacts [10] - In the fourth quarter, Caterpillar reported revenue of 16.2billion,down516.2 billion, down 5% year-over-year, but earnings per share reached a record high of 5.78 [11][13]