WSJ What’s News: Tesla Turmoil, WK Kellogg Gains, MP Materials Soars

Hosted by Francesca Fontana | Released on July 12, 2025

In this episode of WSJ What’s News, Francesca Fontana delves into the week's most significant market movements, dissecting the interplay between global trade tensions, corporate maneuvers, and geopolitical strategies that are shaping the financial landscape.

Trade Tensions Escalate: Impact on Metals and Mining Stocks

Timestamp: 00:45

The episode opens with a comprehensive analysis of ongoing trade disputes, particularly focusing on President Trump's recent announcement of tariffs on global copper imports. Francesca explains, "President Trump's announcement of tariffs on global copper imports sent the metals futures rising and with them shares of mining companies like Freeport McMorran, which gained 2.5% on Tuesday and the stock rose roughly 3.5% on Thursday" (00:50). This move not only bolstered metals prices but also positively impacted mining stocks, signaling investor optimism in the sector amidst protectionist policies.

Brazilian Tariffs and Market Reactions

Timestamp: 01:30

Further complicating the trade landscape, Brazil announced a 50% tariff on certain imports starting next month. Francesca highlights the ripple effect of this decision, noting, "U.S. traded shares of jetmaker Embraer dropped more than 4% on Thursday" (02:10). The increase in Brazilian tariffs led to a decline in Brazilian-focused ETFs and negatively impacted companies like Embraer, reflecting concerns over international trade relations and their direct impact on specific industries.

Commodity Prices: Arabica Coffee Rises

Timestamp: 03:00

Shifting focus to commodities, Arabica coffee futures saw a notable increase. Francesca points out, "Arabica coffee futures rose 1.3%" (03:10). This uptick is attributed to various factors, including weather conditions affecting supply and increased global demand, illustrating the volatility and sensitivity of commodity markets to both environmental and economic variables.

Overall Market Performance: Major Indexes Decline

Timestamp: 04:00

Despite gains in specific sectors, the broader market faced a downturn. Francesca summarizes the week's performance: "The Dow lost 1%, the S&P 500 lost 0.3%, and the Nasdaq edged 0.1% lower" (04:10). This decline across major indexes underscores a cautious investor sentiment, influenced by the persistent uncertainties in global trade and political dynamics.

Tesla Under Pressure: Trump vs. Elon Musk Feud

Timestamp: 05:00

A significant portion of the episode is dedicated to the ongoing feud between former President Trump and billionaire Elon Musk, which continues to influence Tesla's stock performance. Francesca elaborates, "Musk posted on his platform X... that he's creating a new political party, the America Party. Trump called that ridiculous" (05:15). This public spat has tangible consequences for investors, as Musk's ventures face potential governmental challenges. "Tesla shares declined 6.8% on Monday and on the week the stock slipped 0.6%" (05:45), highlighting the direct impact of political conflicts on company valuations.

Corporate Acquisition: Ferrero’s $3 Billion Bet on W.K. Kellogg

Timestamp: 06:30

In corporate news, Francesca reports on Ferrero's strategic acquisition of W.K. Kellogg for approximately $3 billion. She clarifies, "W.K. Kellogg is different from Kellogg. In 2023, Kellogg spun off its North American cereal business" (06:40). This acquisition is poised to expand Ferrero's footprint in the global market, particularly in the North American region. The announcement sent W.K. Kellogg's shares soaring by roughly 30% (07:10), reflecting investor confidence in Ferrero’s growth strategy.

MP Materials and National Security: A Strategic Alliance with the Pentagon

Timestamp: 08:00

The episode also covers MP Materials' groundbreaking deal with the Pentagon, aiming to reduce the U.S.'s reliance on Chinese rare earths. Francesca explains, "Rare earths minerals are used to make magnets that are critical to manufacturing cars, wind turbines, and jet fighters" (08:10). By securing a 15% stake in MP Materials, the Defense Department is investing billions to support the company's expansion. This partnership is expected to significantly boost domestic production capabilities, with plans to increase magnet output to 10,000 metric tons annually (09:00). The strategic move not only enhances national security but also propelled MP Materials' stock by an impressive 50% on Thursday (09:15).

Conclusion

Francesca Fontana wraps up the episode by directing listeners to the Wall Street Journal's Exchange section for a deeper dive into the week's market movements. Produced by Charlotte Gartenberg and supervised by Talia, the episode offers a succinct yet thorough overview of the forces shaping today's financial markets.

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