What’s News in Markets: Tariff Trade, Robinhood’s Crypto Gains, Unilever Slides - WSJ What’s News

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WSJ What’s News in Markets: February 15, 2025 – Tariff Trade, Robinhood’s Crypto Gains, Unilever Slides

Hosted by Francesca Fontana | Released on February 15, 2025

Introduction

In this episode of WSJ What’s News in Markets, Francesca Fontana delves into the significant market movements and the news driving them over the past week. From escalating tariff tensions and unexpected inflation data to notable corporate performances in the crypto and consumer goods sectors, this episode provides a comprehensive overview of the factors influencing today’s financial landscape.

1. Tariff Trade: President Trump’s Steel and Aluminum Levies

The week commenced with President Trump’s announcement of additional tariffs on steel and aluminum imports, set at 25%. While this move initially caused a stir, investors largely remained unfazed by the potential onset of a trade war.

“This week started off with more tariffs from President Trump, announced on Monday, with investors largely shrugging off the risk of them igniting a trade war.”
— Francesca Fontana [00:25]

However, midweek developments shifted market sentiments. The Consumer Price Index (CPI) rose faster than economists predicted, heightening traders' concerns that interest rates might remain elevated longer than anticipated. Despite this, the market rebounded towards the end of the week, buoyed by political news that softened initial tariff anxiety.

“But investors weren't shrugging off Wednesday's inflation readout as the consumer Price Index picked up faster than economists had expected.”
— Francesca Fontana [00:50]

Market Performance:

Nasdaq: +2.6%
S&P 500: +1.5%
Dow Jones Industrial Average: +0.9%

Impact on Stocks: The tariffs specifically targeted imports of steel and aluminum, affecting various sectors differently. Metal producers like Cleveland Cliffs, U.S. Steel, and Alcoa emerged as clear winners, benefiting directly from the imposed levies. Conversely, companies reliant on these metals faced challenges. Notably, Coca-Cola had to strategize around rising aluminum costs.

“Those levies are 25% on imports of steel and aluminum, or aluminium if you're from the UK Dealer's choice.”
— Francesca Fontana [02:10]

Coca-Cola’s Strategic Response: Coca-Cola reported better-than-expected quarterly revenue and profit on Tuesday. The company’s CEO, James Quincy, addressed the aluminum price concerns by emphasizing efforts to mitigate cost increases.

“Coke is working to keep a lid, so to speak, on potential price increases by looking for ways to use less aluminum and finding different sources for it.” – James Quincy [03:00]

As a result of these strategic moves, Coca-Cola’s shares surged by 4.7% on Tuesday, ultimately finishing the week with an impressive 8% gain.

2. Robinhood’s Crypto Gains: Embracing the Cryptocurrency Wave

The episode highlights the burgeoning optimism in the cryptocurrency sector, epitomized by Robinhood’s robust earnings report released on Wednesday. The trading platform experienced a substantial jump in quarterly profits, largely attributed to heightened post-election trading activities, particularly in cryptocurrencies.

“Robinhood the trading platform posted a sharp jump in quarterly profit, helped by a flurry of post election activity, including trading in crypto.”
— Francesca Fontana [04:20]

This surge is part of what Francesca refers to as the "Trump bump," a market rally driven by investor expectations of a business-friendly administration under President Trump. Trump's pro-crypto stance, marked by the signing of an executive order to loosen cryptocurrency regulations, has further fueled this growth. Major cryptocurrencies saw significant upticks following Trump's electoral victory, creating a favorable environment for platforms like Robinhood.

“Robinhood's one of the big winners of the so called Trump bump, AKA the end of year market rally, fueled by investors expectations that the new administration would be more business friendly.”
— Francesca Fontana [05:10]

Robinhood’s Stock Performance:

Thursday Surge: +14%
Weekly Growth: +17%

This robust performance underscores the growing integration of cryptocurrencies into mainstream trading platforms and highlights investor confidence in pro-crypto regulatory environments.

3. Unilever Slides: Strategic Spin-Off Amid Revenue Concerns

Transitioning to the consumer goods sector, Unilever made strategic moves that had mixed reactions in the stock market. On Thursday, Unilever announced plans to spin off its ice cream division, which includes renowned brands like Ben & Jerry's, Breyers, and Talenti. This decision aims to simplify the company’s structure and enhance operational focus.

“Unilever, the consumer goods giant that makes Ben and Jerry's, Breyers, Talenti, a bunch of the big names and frozen treats, on Thursday confirmed its plans to spin off its ice cream business in order to simplify the company.”
— Francesca Fontana [06:30]

The ice cream business is a substantial segment, having generated over $8.6 billion in sales last year, accounting for approximately 14% of Unilever’s overall revenue. Previously, Unilever had considered selling this unit entirely, but the spin-off strategy represents a compromise to retain some control while streamlining operations.

However, this announcement coincided with less favorable news. Unilever reported that its revenue growth in the last quarter fell short of analysts' expectations and provided a subdued outlook for 2025. These factors dampened investor enthusiasm, leading to a sharp decline in Unilever’s stock.

Unilever’s Stock Performance:

Thursday: -5.6%
Friday: -1.9%

“But alas, investors weren't all screaming for ice cream because the announcement wasn't the only Unilever news to dig.”
— Francesca Fontana [07:45]

The dual impact of the strategic spin-off and weaker-than-expected financial performance contributed to the overall slide in Unilever’s market valuation.

Conclusion

This week’s market movements were a blend of geopolitical maneuvers, economic indicators, and significant corporate strategies. President Trump’s tariffs influenced specific sectors while broader economic concerns like inflation impacted interest rate expectations. Meanwhile, Robinhood capitalized on the crypto surge, reflecting the dynamic interplay between policy and market sentiment. Unilever’s strategic decisions in the consumer goods arena highlight the challenges of balancing growth initiatives with financial performance expectations.

For investors, these developments underscore the importance of staying informed about policy changes, economic indicators, and corporate strategies to navigate the ever-evolving market landscape effectively.

Produced by Zoe Kulkin and Anthony Banci, with Supervising Producer Talia.

For more detailed analyses and updates on stock movements, visit The Wall Street Journal's Exchange section.

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This episode is brought to you by Amazon Business. We could all use more time Amazon Business offers smart business buying solutions so you can spend more time growing your business and less time doing the admin. I can see why they call it smart. Learn more@amazonbusiness.com hey listeners, it's Saturday, February 15th.
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I'm Francesca Fontana for the Wall Street Journal, and this is what's News in Markets, Our look at the biggest ST moves of the week and the news that drove them. Let's get to it. Welcome back. Hope you all are taking advantage of any post Valentine's Day chocolate sales near you. This week started off with more tariffs from President Trump, announced on Monday, with investors largely shrugging off the risk of them igniting a trade war. But investors weren't shrugging off Wednesday's inflation readout as the consumer Price index picked up faster than economists had expected. That deepened traders worries that interest rates might not come down anytime soon. But the market bounced back with more political news Thursday, with Trump raising hopes of a resolution to the war in Ukraine and putting off a decision on additional tariffs on foreign goods on a weekly basis. The Nasdaq rose 2.6%, the S&P 500 gained 1.5%, and the Dow Jones Industrial Average added less than 1%. Now, while the market overall shrugged off Monday's tariff announcement, it still played a part in some big stock moves this week. For those who missed the news or who just can't keep all the trade news straight, which I can't blame you. Those levies are 25% on imports of steel and aluminum, or aluminium if you're from the UK Dealer's choice. The stock market winners there were the metal producers like Cleveland Cliffs, U.S. steel and Alcoa. But those who buy metal might have to make some changes, like Coca Cola. On Tuesday, Coke posted better than expected quarterly revenue and profit. But investors were also taking in what Chief Executive James Quincy had to say about aluminum prices. He said Coke is working to keep a lid, so to speak, on potential price increases by looking for ways to use less aluminum and finding different sources for it. Coke, as you might imagine, uses a heck of a lot of aluminum soda cans and imports the material from Canada. Coke shares ended up jumping 4.7% Tuesday and ended the week with a gain of nearly 8%. Next up, we're welcoming in the crypto golden age. At least that's the hope of many a cryptocurrency trader. And we certainly saw those hopes bolstered by Robinhood's earnings on Wednesday. Robinhood the trading platform posted a sharp jump in quarterly profit, helped by a flurry of post election activity, including trading in crypto. Robinhood's one of the big winners of the so called Trump bump, AKA the end of year market rally, fueled by investors expectations that the new administration would be more business friendly. And as we've seen, Trump is pro crypto since taking office. He's signed an executive order for looser regulations for cryptocurrencies and we've seen major cryptocurrencies surging after he won the election. So how'd the stock do it? Surged 14% on Thursday and ended the week almost 17% higher. Now, I might just have an especially sweet tooth this week because first I'm talking about chocolate and now ice cream. Unilever, the consumer goods giant that makes Ben and Jerry's, Breyers, Talenti, a bunch of the big names and frozen treats, on Thursday confirmed its plans to spin off its ice cream business in order to simplify the company. Before, it had also been considering selling the unit, and that business is a big one. Last year it generated sales of more than $8.6 billion, roughly 14% of Unilever's overall revenue. But alas, investors weren't all screaming for ice cream because the announcement wasn't the only Unilever news to dig. The company also said that revenue grew less than analysts expected in the last quarter, and it gave a subdued outlook for 2025 US traded shares of Unilever fell 5.6% Thursday and they lost an additional 1.9% on Friday. And now you know what's news in markets this week. You can read about more stocks that moved on. The week's news in the Score, my column in the Wall Street Journal's Exchange section. Today's show was produced by Zoe Kulkin and Anthony Banci, with supervising producer Talia. I'm Francesca Fontana. Have a great weekend and see you next Saturday.