The stock market is cooling off again today after a big sigh of relief yesterday. President Donald Trump announced a 90-day pause of tariffs on all countries except China. The market jumped immediately, and afternoon trading caused a stunning rally, with many stocks posting record gains.
That didn’t last long as S&P Futures started cooling off in pre-market trading and have since cooled off significantly today. Wall Street is still worried about broader macro trends and the escalating trade war with China. In fact, it was clarified by the White House that tariffs on China were not 125%, but rather 145% since the 125% stacks on top of a previous 20% tariff on China.
Investors had been seeking shelter in more safe-haven stocks and are more likely to do so today.
What Happened With WMT, COST, and KO
You’d expect Walmart (NYSE:WMT | WMT Price Prediction) and Costco (NASDAQ:COST) to crater, especially as the inflation report this morning showed that food prices were soaring and the lower print was thanks to lower energy prices. Instead, these stocks have gone up this morning. The stock price may not hold up, but the resilience is quite surprising.
Walmart saw a slew of analyst positivity today. JPMorgan maintained its $112 price target on the stock. BMO also maintained its “Outperform” rating and kept a $110 price target. Walmart executives said that the business is well-positioned to take on these tariffs. Investors also believe that Walmart doesn’t have much to lose as other retail companies will also have to hike prices, and with Walmart being the biggest customer for many vendors, it gives it a lot of flexibility.
Costco also rose due to it reporting $25.51 billion in net sales for the five weeks ending April 6, 2025. This is an 8.6% increase, and analysts are bullish due to the solid performance here. Loop Capital thinks it could even steal market share if inflation rises due to tariffs.
Coca-Cola (NYSE:KO) gained earlier this morning but has since turned slightly negative. KO stock is seen as a safe-haven stock by many, and recent market volatility has prompted many investors to seek refuge here. KO has a 2.92% dividend yield and has extensive supply chains in every country to insulate itself from tariffs or trade wars.
Time to Buy?
All three stocks are great long-term buys. However, short-term trends are too erratic to make investment decisions on. If you are worried about a potential recession, buying KO is a good idea. Demand is quite inelastic here.
WMT and COST are more vulnerable to consumer spending shifts but are rising regardless today. I would give them a “Hold” rating, as the real impact of tariffs will be felt once their pre-tariff inventory stockpile runs out.
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