Dow Jones Live Update May 29: Trade Court Takes Down Trump Tariffs, Dow Jones Industrial Average (DJI) Tears Higher
Key Points
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The U.S. Court of International Trade left Trump Administration steel and aluminum tariffs in place, but ordered the administration to repeal tariff increases on Canada, Mexico, China, and the rest of the world last night.
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Nvidia reported mixed earnings last night, and Best Buy did the same this morning. Both stocks are up in early morning trading.
Live Updates
DJIA Ends Day in the Green
The Dow Jones Industrial Average gained 117 points to close at 42,216 on Thursday, up 0.3%.
Oil Prices Slide, But May Bubble Back Up
In energy news, the latest data on oil is bullish for investors in the industry. Crude inventories fell by 2.8 million barrels last week, versus consensus forecasts for inventories to rise. Gasoline inventories fell by 2.4 million barrels, also contrary to expectations.
OilPrice.com is showing WTI crude prices down 1.1% at $61 and change today, but you can probably expect this data to help push prices higher soon.
Boeing Revs Up
Dow component Boeing (NYSE: BA | BA Price Prediction) has announced it will go through a “milestone review” at the end of the year, preparatory to accelerating 737 MAX airliner production from 42 planes per month to 47.
Boeing stock is up 3.4% on the news. The Dow Jones Industrial Average’s gain for the day, however, has now slipped to 0.1%.
Tariffs, Caveats, and Provisos
A strict reading of the U.S. Court of International Trade’s ruling last night implies a permanent ban on Trump’s 25% tariffs on imports from Mexico and Canada, 10% tariffs on China, and reciprocal tariffs of various severity on the rest of the world — but that’s not set in stone.
The Court gave the President 10 days to amend his executive orders to bring them into compliance with the court’s ruling. The President may well also try other routes to get the tariffs he wants, levying similar tariffs on similar countries with different justifications for example.
Meanwhile, the legal saga now shifts to the U.S. Court of Appeals for the Federal Circuit, with the Administration having immediately appealed the lower court’s ruling. And even if that court rules against the President, there’s still the option of an appeal to the U.S. Supreme Court.
Long story short, tariffs turmoil will continue to roil the stock market for weeks, if not months or even years. Be prepared.
This article will be updated throughout the day, so check back often for more daily updates.
A three-judge panel of the U.S. Court of International Trade declared last night that President Trump’s April 2 “reciprocal tariffs” exceeded the President’s authority “to regulate importation by means of tariffs” under the 1977 International Emergency Powers Act. Tariffs against Canada, Mexico, and China similarly failed “because they do not deal with the threats set forth in those orders,” namely the fentanyl crisis. Tariffs on aluminum and steel imports, however, remain in place.
The Dow Jones Industrial Average (DJINDICES: ^DJI) opened 75 points higher Thursday morning for a 0.2 % gain.
Earnings
In earnings news, Nvidia (Nasdaq: NVDA) reported Q1 results last night. The semiconductors company missed earnings forecasts for $0.93 per share, reporting adjusted profits of $0.81. Q1 sales, however, were higher than expected at $44.1 billion.
Nvidia did warn that Q2 sales will miss expectations slightly, and probably be about $45 billion. Investors don’t seem too upset about that, though, and Nvidia stock is up more than 5% this morning.
Best Buy (NYSE: BBY) reported similarly mixed earnings this morning, with sales of $8.8 billion slightly below expectations, but per-share profits of $1.15 per share more than the $1.09 that Wall Street forecast. Best Buy stock is up more than 3%.
Analyst Calls
Deutsche Bank upgraded Southwest Airlines (NYSE: LUV) to buy this morning, with a $40 price target up 43% from its previous valuation of the airlines stock. “A new era of change at the company” has begun, predicts Deutsche, which “should drive meaningful revenue and EBIT growth over the next 12 – 24 months” and “drive higher shareholder returns.”
Joel South covers large-cap stocks, dividend investing, and major market trends, with a focus on earnings analysis, valuation, and turning complex data into actionable insights for investors.
He brings more than 15 years of experience as an investor and financial journalist, including 12 years at The Motley Fool, where he served as an investment analyst, Bureau Chief, and later led the Fool.com investing news desk. He has also co-hosted an investing podcast and appeared across TV and radio discussing market trends.
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