Tariffs Weigh on Apple; Nike's Production Bind; Wayfair Downgrade

On this episode of Stock Movers:
- Apple (APPL) shares dipped after the company lost over $300 billion yesterday, second largest drop in market cap for any company ever. The drop comes as the company has moved its supply chain away from China but to countries that face high tariffs.
- Nike (NKE) is continuing its slide as shoe and garment makers extended their selloff as they face tariffs on their Asian-made products. Apparel and footwear companies that shifted manufacturing from China to avoid tariffs are now being targeted by Trump's tariffs on Vietnam, Cambodia, Indonesia, and Thailand.
- Wayfair (W) shares are sliding 11% in premarket trading putting the stock on track to extend declines after Citi downgraded the online furniture retailer to neutral from buy. Analyst Ygal Arounian said President Donald Trump’s tariff announcement “created significant exposure” to the supplier base of Wayfair, and sees eBay as better positioned.
- Stellantis (STLA) shares are lower after about 6,000 workers in Canada were idled by day 1 of US tariffs. It comes along with reports of 900 US jobs cuts and Fitch downgrading the company's debt from BBB+ to BBB.

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news, The.

Speaker 2 (00:08):
Stock Movers podcast, your roundup of companies making moves in
the stock market, harnessing the power of Bloomberg data.

Speaker 1 (00:17):
Let's take a look at some stocks on the move today.
We're joined by Lisa Montel.

Speaker 3 (00:21):
All Right, I want to start with Apple, because the
shares fell more than nine percent yesterday. That erased about
three hundred and eleven billion dollars in market value. It
was the worst single day decline since March sixteen, twenty twenty,
during the pandemic. So that's a while. Shares have been
down as much as four percent this morning, but we
talked about it yesterday. Right, The supply chain relies heavily
on China. New Terriss reached thirty four percent in China

(00:44):
off for China. But it's not just China. Apple also
relies on other nations, for example, India, Vietnam, Malaysia, Thailand,
even yes, Paul Ireland. Yes, but it's not just Apple.
To Dell Technologies, they sank nineteen percent yesterday. Those shares
down as much as a four percent before the bell to.

Speaker 4 (01:03):
So some big big names taking some big big hits here.
We had some Bloomberg Television came out just earlier this
morning with some charts and they're just kind of breaking
it down. There's no real sector that's escaping us. You
know what. You just look across the boils and package goods, consumers,
the technology, you know, the commodities, pretty much everything across support.
It's simply a risk off environment reflecting increased levels of

(01:27):
Insercha and Nike, I.

Speaker 3 (01:28):
Mean footwear apparel, that's another one. I mean, what's wild
about this. The Nike story is that during President Trump's
first term, apparel and footwear makers they shifted manufacturing out
of China to avoid tariffs, and now they're being hit
anywhere because they's targeting the same nations that they moved to.

Speaker 1 (01:43):
But to the point of, you can't grow bananas in America,
can we grow Michael Jordan's sneakers? Jordan's is just as
important a discussion.

Speaker 4 (01:53):
Yeah, absolutely, they go to.

Speaker 3 (01:55):
Viet They go to Vietnam for a lot of that. Stillantis, Yes,
of course they're dealing with all tarifs. They closed down
like nine percent yesterday this morning there up as much
as as they are six percent. Also dealing with a
few other things, though not just tariffs. It's this trickle
down effect because now you have about six thousand workers
in Counada's auto sector receive those temporary layoff notices. A

(02:16):
majority of them work at a Stillantis Planet in Ontario
makes Chrysler Dodge vehicles and they're going to post production
for two weeks starting on Monday. But they also received
on top of this, and know some other bed news,
Stillantis received a downgrade by Fitch due to the tariffs too,
So on top of that news.

Speaker 1 (02:30):
They also set it down. Thank you, thank you so
much for bringing this up. Well, this is not a
small matter. I mean we're all looking at Apple with
a gazillion dollars of cash on the balance seat there's
four to eighty three whatever other stocks. And you wonder
in this new fragility, when Fitch, Moodies, S and p.

Speaker 4 (02:50):
Step in start looking at the balance.

Speaker 1 (02:52):
You know, that's the first I've heard that. At least Mateo.

Speaker 2 (02:55):
Out front with them.

Speaker 3 (02:57):
That's what they're doing with Wayfair a down grade there,
I mean Wayfair, I didn't even realize it. They were
down twenty five percent yesterday. That's the online furniture retailer.
Before the bell, the had been down as much as
ten percent, but they got a downgrade from City and
City saying Wayfair. Yes, they are positioned well long term,
but the tariffs have made the risk to revenue now greater.
And which interesting is that they said eBay is a

(03:18):
good alternative to look at instead of Wayfair.

Speaker 2 (03:23):
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