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Mid-Week Wrap-Up - March 5th, 2025

Mid-Week Wrap-Up - March 5th, 2025

Tariffs weigh on markets... again

CMG Venture & Mark Roussin
March 05, 2025

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Good morning investors!

If this is your first time reading, welcome to The Investor’s Edge — a thriving community of over 22,000 subscribers striving to be better investors with an edge in the market.

Every Wednesday we publish “The Mid-Week Wrap-Up” — your ticket to being well informed and staying ahead in the investment game!

This report is designed to help investors of all skill levels break down important stories/topics within the stock market. And best of all, we cut through all of the BS and give you exactly what you need to know in easy to digest, bite sized pieces of content.

This article is designed to truly give you that EDGE in the day ahead!

Grab your afternoon pick me up and let’s dive in.

Market Talk

Tariff concerns have weighed on the overall market this week, with all three major indexes declining around 3%.

3 Stories Moving the Market

These are some of the biggest stories so far this week that are having an influence on market action.

Trump tariffs: the latest updates

President Trump moved forward with broad tariffs on all imports from Canada and Mexico, imposing a 25% tariff on most goods starting Tuesday, with Canadian energy products facing a lower 10% rate. He justifies these measures as pressure on Canada and Mexico to curb undocumented immigration and fentanyl trafficking.

Canada moved ahead with its plan to impose 25% tariffs while Mexico said it respond by Sunday.

Additionally, Trump is increasing tariffs on all Chinese imports by 10%, compounding prior tariffs on goods like electronics and footwear. China immediately retaliated, imposing tariffs affecting U.S. agriculture products.

These move risks a trade war and could lead to higher consumer prices in the U.S. as businesses either absorb the costs or pass them to consumers.

Commerce Secretary Howard Lutnick hinted at a potential relief agreement with Canada and Mexico, suggesting that Trump might negotiate a partial rollback of tariffs if the countries demonstrate stronger enforcement efforts. A resolution could be announced as early as Wednesday.

👉 EDGE TAKEAWAY: Markets hate uncertainty, and Trump’s escalating tariff war is fueling volatility across key sectors. The…upgrade to Edge+ to read the full Edge Alert.

Taiwanese chipmaker TSMC announces new $100B investment in US

Taiwanese semiconductor giant TSMC announced a $100 billion expansion in the U.S., adding three new advanced chip manufacturing plants, including a critical R&D center in Arizona.

This announcement builds on the company's previous $65 billion commitment under the CHIPS Act. The first Arizona factory began mass production last month, employing 3,000 workers.

The move follows broader AI and semiconductor investments by major tech firms, reinforcing the U.S.'s push for domestic chip production and comes amid geopolitical concerns over Taiwan’s chip dominance and Trump’s threats to impose tariffs on foreign-made chips.

TSMC is also considering a joint venture with a U.S. chipmaker to further align with Trump’s reshoring priorities. Meanwhile, Apple, a key TSMC customer, pledged over $500 billion in U.S. investments, including chip purchases from TSMC’s Arizona facility.

📚 EDGE-UCATION: What is the CHIPS Act?

The CHIPS and Science Act is a $280 billion U.S. law, passed in 2022, designed to boost domestic semiconductor manufacturing and research. It includes $52.7 billion in subsidies for chipmakers to build factories in the U.S., along with tax incentives and funding for scientific research.

The goal is to reduce reliance on foreign-made semiconductors, strengthen national security, and enhance U.S. competitiveness in the global tech race, particularly against China.

The act has encouraged companies like TSMC, Intel, and Samsung to expand U.S. operations. However, some critics argue that it’s a corporate subsidy benefiting large firms without strict enough conditions to ensure long-term U.S. job growth.

*Note - Trump said on Tuesday U.S. lawmakers should get rid of the landmark bipartisan law and use the proceeds to pay debt.

Target warns February sales were soft, adding to concerns about consumer health

Target warned of a "meaningful" drop in first-quarter profit, citing weak February sales, declining consumer confidence, and concerns over tariffs on Mexican imports, which could push grocery prices higher.

While the company beat Wall Street’s Q4 earnings and revenue expectations (EPS: $2.41 vs. $2.26 expected; Revenue: $30.92B vs. $30.82B expected), shares fell nearly 5% as it forecasted modest 1% sales growth for the year, below expectations.

Profitability took a hit due to higher markdowns and promotional activity, reflecting consumer reluctance to spend on discretionary items amid inflation and high interest rates.

However, Target aims to drive momentum with exclusive partnerships, including Champion sportswear and Warby Parker eyewear, set to launch in 2025.

📊 EDGE SCORE: Here’s a look at Target’s Edge Score - while valuations look attractive, growth is definitely a concern as near-term headwinds—weak consumer sentiment, tariff-related cost pressures, and stiff competition from Walmart and online discounters—continue to weigh on the retailer:

Want access to your own Edge Scores? Upgrade to Edge+ today and be one of the first to use the dashboard:

In Other News

In this section we'll be curating a selection of news headlines we think you'll find interesting. If a topic catches your eye, click the provided links to read more about it.

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The Second Half

The main catalyst for the remainder of the week will be the latest labor market data, though we also get earnings from two major names.

Earnings Reports

Two heavy hitters are scheduled to report earnings on Thursday — Broadcom and Costco —and we will be closely watching.

Wednesday 3/5: --
Thursday 3/6: Broadcom and Costco
Friday 3/7: --

Here is the calendar of earnings releases scheduled for the rest of the week:

Source: Earnings Whisper

Economic Reports

All eyes will be on the nonfarm payrolls report on Friday for further clues into the state of the labor market. We also get initial jobless claims, unemployment data and a speech from Jerome Powell.

Here is the full calendar of events scheduled for the remainder of the week:

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Thank you for reading this edition of the Mid-Week Wrap-Up.

Until next time investors!

Mark & Chris

The Investor’s Edge

Disclosure

This is not investing advice. It is very important that you do your own research and make investments based on your own personal circumstances, preferences, goals and risk tolerance.

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