CNBC Halftime Report: Trading Trump’s New Tariffs – April 2, 2025

Release Date: April 2, 2025

Hosts: Scott Wapner and Carl Quintanilla
Panelists: Joe Terranova, Steve Weiss, Bill Baruch, Rob Sechin
Guest Analysts: Dan Ives, David Faber, Angelica Peebles

1. Introduction and Overview

The April 2, 2025, episode of CNBC’s Halftime Report delved into the imminent announcement of President Trump’s new tariffs and their potential impact on the markets. Hosted by Scott Wapner and Carl Quintanilla, the discussion featured insights from top investors and analysts on navigating the volatile trading environment shaped by these new trade policies.

2. Market Reactions to New Tariffs

Key Points:

• Announcement of new tariffs scheduled for later in the afternoon.
• Current market sentiment showing early weakness, with some sectors showing resilience.

Notable Quote:

Joe Terranova [02:13]: “I literally think we're setting up for a pillow fight between bulls and bears. ... I don't understand how you could not be defensively allocating towards whether it's bonds or equities.”

Discussion: Joe Terranova emphasized the uncertainty surrounding the tariffs, suggesting that the market is poised for significant volatility. He highlighted the divided sentiment between bullish and bearish investors, advocating for a defensive allocation strategy amidst the ongoing unpredictability.

3. Amazon’s Potential Acquisition of TikTok

Key Points:

• Amazon is reportedly making a last-minute bid to acquire TikTok in the U.S., citing sources from the New York Times.
• Other bidders include Oracle and Blackstone, with uncertainty about Chinese involvement in the sale.

Notable Quotes:

Steve Weiss [04:50]: “Given Andy Jassy's focus on core operations, I think Amazon could leverage TikTok’s consumer data, particularly in advertising.”

Bill Baruch [05:11]: “Amazon is well-positioned to capitalize on the infrastructure they already have and pivot TikTok into a more profitable business.”

Discussion: The panelists discussed the strategic implications of Amazon potentially acquiring TikTok, particularly in enhancing Amazon’s advertising capabilities and leveraging user data for growth. Steve Weiss expressed support for Amazon’s strategic direction, while Bill Baruch highlighted the synergy between Amazon’s existing infrastructure and TikTok’s platform.

4. Elon Musk’s Potential Exit from Tesla

Key Points:

• Reports suggest that Elon Musk may soon step down as CEO of Tesla.
• Analyst Dan Ives provided critical insights into the implications of Musk’s departure.

Notable Quotes:

Dan Ives [07:36]: “I think clock struck midnight for Musk. ... He had to pick. I think this is the right move for Tesla.”

Joe Terranova [12:30]: “The brand damage here is permanent. ... It was a path of no return.”

Discussion: Dan Ives criticized Musk’s handling of Tesla’s brand and political affiliations, suggesting that his departure could stabilize the company and remove it from political controversies. The panelists debated the long-term effects on Tesla, with some expressing concern over the potential for lasting brand damage versus the opportunity for renewed focus and leadership.

5. Upcoming Tariffs Announcement and Market Expectations

Key Points:

• Anticipation of the tariffs announcement in the Rose Garden at 4 PM ET.
• Mixed analyst opinions on whether this will serve as a clearing event or escalate the trade war.

Notable Quotes:

Rob Sechin [20:02]: “With or without TikTok, Amazon is ready to rally. ... We see it higher.”

Bill Baruch [24:14]: “I think the market has already begun to discount the potential blanket 20% tariff. ... People are not pricing for upside.”

Discussion: The panel discussed various scenarios post-tariff announcement, including potential market rebounds or further declines. Rob Sechin remained optimistic about Amazon’s prospects, while Bill Baruch expressed a more constructive view, suggesting that the market might have already priced in the anticipated tariffs but remains cautious about the overall economic sentiment.

6. FDA Delays on Novavax’s COVID-19 Vaccine Approval

Key Points:

• The FDA missed the deadline to approve Novavax’s COVID-19 vaccine for full approval.
• The delay occurs amidst significant internal changes within the FDA.

Notable Quote:

Angelica Peebles [27:22]: “The FDA has been pushed to make decisions amid significant layoffs and leadership changes. We’re awaiting further updates.”

Discussion: Angelica Peebles reported on the FDA’s delay in approving Novavax’s vaccine, highlighting the agency’s internal turmoil and its potential impact on future vaccine approvals and public health initiatives.

7. Calls of the Day: Analyst Updates

Highlighted Stocks:

• ServiceNow: Stifel reiterated a buy rating but cut the price target due to increased uncertainty.
• Northern Trust: Despite mixed analyst comments, potential for growth remains if cost reduction targets are met.
• Comerica: Despite target reductions, maintained as a solid regional bank with strong fundamentals.
• AT&T: Positioned as a defensive play with strong infrastructure holdings.

Notable Quotes:

Bill Baruch [30:12]: “We’ve raised about 5% cash to leverage buying opportunities. ... We are dialing back energy exposure strategically.”

Rob Sechin [38:49]: “We still like Comerica due to its strong commercial lending franchise and sticky deposit base.”

Discussion: The panel reviewed various stock movements and analyst ratings, emphasizing the importance of strategic positioning amidst market volatility. Bill Baruch discussed reallocating capital to capitalize on emerging opportunities, while Rob Sechin highlighted the enduring strength of regional banks like Comerica.

8. Quarterly Report: Stock Performances and Strategies

Key Points:

• Winners: AT&T, Amgen, AbbVie.
• Losers: Salesforce, Broadcom.
• Strategies: Focus on defensive stocks, leveraging strong earnings momentum, maintaining select healthcare holdings.

Notable Quotes:

Bill Baruch [40:22]: “Amgen and AbbVie have outperformed as defensive names with strong revenue growth and optimistic outlooks.”

Rob Sechin [41:55]: “Salesforce remains a core holding due to its leadership in AI monetization, despite recent performance dips.”

Discussion: Bill Baruch and Rob Sechin discussed their quarterly performances, highlighting successful holdings in healthcare and technology sectors. They underscored the importance of maintaining positions in fundamentally strong companies while navigating market challenges.

9. Closing Remarks and Future Guests

Key Points:

• Upcoming guests include Brad Gerstner of Altimeter Capital, Jeremy Siegel of the Wharton School, Tom Lee, Richard Fisher, Dan Greenhouse, and Lucy Baldwin of Citi.
• Emphasis on continued market analysis and strategic insights for the trading day’s final stretch.

Notable Quotes:

Carl Quintanilla [46:19]: “A big guest coming up tomorrow. ... We have a great lineup with experts ready to provide deeper insights.”

Discussion: The hosts teased an exciting lineup of guests for future episodes, promising in-depth discussions on market trends, economic outlooks, and investment strategies to equip listeners with actionable insights.

Conclusion

The April 2 episode of Halftime Report provided a comprehensive analysis of the anticipated tariff announcements, the potential Amazon-TikTok acquisition, and the implications of Elon Musk’s possible departure from Tesla. The panelists offered diverse perspectives on navigating the uncertain market landscape, emphasizing strategic positioning and cautious optimism amidst ongoing economic and geopolitical challenges.

Note: All timestamps correspond to the provided transcript times. Advertisements and non-content sections have been excluded to maintain focus on the substantive discussions.