US-Japan Trade Deal, AI Policy, and Tech Earnings Preview

US-Japan Trade Deal and EU Negotiations

• 🇯🇵 A new trade deal has been announced between the US and Japan, with reciprocal tariffs set at 15% for autos, a reduction from previous levels.
• 💡 The deal includes concessions on rice imports and auto safety standards, representing a compromise for both nations.
• 🇪🇺 Discussions are ongoing regarding a potential similar trade deal with the European Union, though the EU faces a collective action problem with 27 member states.
• 📈 Experts note that while the Trump administration has reset perspectives on tariff levels, the long-term impact on bringing investment and jobs back to the US remains uncertain.

White House AI Policy Vision

• 🇺🇸 The White House has unveiled its AI policy vision, aiming to spur US development by loosening regulations and expanding energy supply for data centers.
• 🚀 The plan emphasizes deregulation and cutting red tape to allow America to move fast in the AI space, with participation from key tech leaders like NVIDIA and AMD.
• ⚡ A significant focus is placed on securing the energy supply for data centers, acknowledging that the US is currently behind China in energy capacity.
• 🤝 The administration aims to establish the US as a leader in AI technology and export its technology globally, even to economic adversaries.

Tech Earnings and Market Trends

• 📊 Alphabet is set to report earnings, with key metrics to watch including subscriber growth for Google One and YouTube, and token consumption related to AI services.
• 🚗 Tesla is also reporting earnings, with investor focus on the outlook for vehicle deliveries and the potential announcement of a cheaper vehicle model.
• 📈 The meme stock rally continues with stocks like GoPro and Krispy Kreme surging, while Beyond Meat shows volatility.
• 🏥 Carlsmed, a medtech company using AI in spinal surgery, has launched its IPO, raising over $100 million, despite its stock trading lower on the first day.

Market Performance and Other News

• 📈 The S&P 500 index reached a new record high, with the Dow and Nasdaq also advancing, driven by optimism about trade and tariff deals.
• 📉 Texas Instruments stock is trading lower after its earnings report.
• 💡 Baker Hughes is a top performer in the S&P 500, benefiting from its diversified energy technology portfolio, including exposure to LNG terminals and gas turbines.
• 📉 Otis, the elevator maker, saw its stock decline due to a larger than expected drop in new equipment sales, particularly in China and North America.