Market Sentiment & Performance - Bank of America's flow data indicates net selling of small-cap stocks by clients last week, while large and mid-cap stocks saw net buying [1] - 44% of fund managers surveyed believe large-cap stocks will outperform small-cap stocks this year, an increase from the previous reading [1] - The Russell 2000 is up only 1.5% year-to-date, indicating continued underperformance of small caps [1] Concerns & Cautions - B of A remains near-term cautious on the Russell 2000 index and does not expect any Fed rate cuts this year [2][4] - Tariff risk poses a greater threat to small caps due to their thinner margins [3] - Inflation remains sticky, leading to the expectation that the Fed will remain on hold, potentially negatively impacting the Russell 2000, which is sensitive to interest rates [4][5] - Small-cap earnings recovery has been slower than expected compared to large caps, with lofty expectations for the second half of the year [6][7] Opportunities & Recommendations - It is advisable to be selective within small caps, favoring mid-caps due to cleaner balance sheets and lower risk from tariffs and refinancing [8] - Despite risks, small caps offer wider performance spreads and alpha opportunities, with relatively cheap valuations compared to large caps [8] - Focus on higher quality areas within small and mid-caps, prioritizing stocks with positive revisions and stronger margins [9][10]

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Johnson & Johnson (JNJ -0.05%) has been a leading healthcare company in the world for decades, and it's one of the most valuable as well, with a market cap of around $380 billion. Known for its long-term stability and dividend growth, it's a blue chip stock that is primarily suitable for risk-averse investors who want to collect a reliable payout. Johnson & Johnson last reported earnings on April 15, which covered the first three months of the year. Its sales were up by a little over 2%, totaling $21.9 bill ...

Core Viewpoint - Winnebago Industries reported a significant reduction in adjusted EPS guidance and net revenue guidance for FY2025, highlighting operational inefficiencies in the Motorhome segment while noting improvements in Marine and selective growth in other segments [1][10]. Inventory Discipline - The company aims for a long-term operational standard of two times inventory turn, aligning with dealer goals and industry best practices, and is willing to sacrifice short-term market share for channel health [3][4]. - This disciplined approach may increase near-term financial pressure but is expected to enhance dealer partnerships and improve supply-demand dynamics when demand recovers [4]. Tariff Risk - Recent U.S. tariff policy escalations have a direct impact on imported RV and marine components, with a forecasted unmitigated tariff risk of $0.50–$0.75 to diluted EPS for FY2026 [5][6]. - The company is monitoring costs with suppliers and may implement price increases to offset short-term effects, but persistent tariff exposure could depress profitability if mitigation tactics are insufficient [6]. Segment Performance - The Marine segment achieved a 15% net revenue increase and over 11% unit growth in Q3 FY2025, with Barletta capturing 9.2% of the U.S. aluminum pontoon market [7]. - Newmar's Class A diesel market share exceeded 33%, and dealer inventory for the brand has significantly decreased since 2019, contributing to the company's risk diversification [7][9]. Future Outlook - Full-year adjusted EPS guidance for FY2025 has been lowered to $1.20–$1.70, with consolidated revenue guidance set at $2.7 billion–$2.8 billion due to dealer destocking and weak RV retail demand [10]. - The company targets margin recapture in the Motorhome segment for FY2026 and aims to reduce net leverage, with a current net-debt-to-EBITDA ratio of 4.8 times [10].

Joining me now is Matt Stucky. He's the chief portfolio manager for equities at Northwestern Mutual Wealth Management. And Matt, you know, markets seem to be taking a breather today after yesterday's bounceback.How do you think investors are processing the latest risks here. Not just tariffs and inflation, but now that escalating geopolitical headwinds are on the table, that's another risk that we're going to have to deal with. Well, good morning, Ally.Thanks for having me back. Um yeah, there is no shortag ...

Summary of Apple Inc. Conference Call Company Overview - **Company**: Apple Inc. - **Industry**: Technology, specifically smartphone manufacturing Key Points 1. **Shift in Production Location**: Apple plans to shift the assembly of all iPhones sold in the US to India as soon as next year, moving away from reliance on China due to trade tensions initiated by former President Donald Trump [2][4] 2. **Long-term Goals**: The company aims to source all more than 60 million iPhones sold annually in the US from India by the end of 2026, indicating a significant acceleration in its supply chain diversification strategy [5] 3. **Production Capacity Increase**: Achieving this target would require Apple to double its iPhone output in India, a notable shift after nearly two decades of heavy investment in Chinese manufacturing [6] 4. **Current Manufacturing Landscape**: Currently, the majority of iPhones are manufactured in China through third-party suppliers like Foxconn, which have been impacted by aggressive tariffs imposed by the US [7][10] 5. **Market Value Impact**: Following Trump's tariff announcements, Apple experienced a market value loss of $700 billion, prompting the company to expedite the export of Indian-manufactured iPhones to the US to mitigate tariff impacts [8] 6. **Component Sourcing**: Despite the shift in assembly, Apple remains heavily reliant on Chinese suppliers for hundreds of components necessary for iPhone production [10] 7. **Tariff Context**: The US has imposed a 20% tariff on all imports from China, while India faced a reciprocal tariff of 26%, which is currently paused as negotiations for a bilateral trade agreement progress [11] 8. **US Market Share**: The US accounted for approximately 28% of Apple's global iPhone shipments, valued at $232.1 billion in 2024, highlighting the importance of the US market for Apple's overall sales [12] 9. **Increased Capacity Needs**: To fulfill all US orders from India, Apple will need to further increase its manufacturing capacity in the country [12] 10. **Strategic Importance**: Industry experts believe this move is crucial for Apple to maintain its growth and momentum amidst tariff risks, showcasing the company's agility in responding to market challenges [14] 11. **Upcoming Earnings Report**: Apple is set to report quarterly earnings soon, with investors keen to understand the implications of the tariff situation on the company's financial performance [15] 12. **Executive Engagement**: CEO Tim Cook has maintained regular communication with Trump and his administration since the inauguration, indicating the company's proactive approach to navigating trade issues [15] Additional Insights - **Component Import Strategy**: In efforts to boost production in India, Foxconn and Tata have started importing pre-assembled component sets from China, reflecting a transitional strategy as Apple ramps up local assembly [13] - **No Official Comments**: Apple has declined to comment on the specifics of its production strategy or the impact of tariffs [16][17]

Core Viewpoint - Williams-Sonoma is facing significant challenges due to newly enacted tariffs by the U.S. government, leading to a notable decline in its stock price and potential negative impacts on consumer behavior and sales [1][3]. Company Analysis - As of early Friday, Williams-Sonoma shares were down nearly 13% week to date, indicating a considerable weakening in market confidence [1]. - The company heavily relies on imports for its product offerings, making it particularly vulnerable to trade disputes and tariffs [2]. - Analyst Bradley Thomas highlighted that the retail sector, especially for higher-end goods like those offered by Williams-Sonoma, is at risk as consumer inflation is expected to rise due to tariffs [3]. Industry Context - The retail segment for non-essential goods, such as those sold by Williams-Sonoma, is often one of the first to suffer during economic downturns, as consumer psychology shifts towards more essential purchases [4]. - The impact of tariffs is likely to be more manageable for discount retailers compared to higher-end retailers, suggesting a challenging environment for Williams-Sonoma [3]. - Observing consumer reactions to the economic changes will be crucial for Williams-Sonoma in the upcoming weeks and months, as foot traffic and sales volume may decline [5].