Happy Tuesday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.

• 🟩 | US stocks rose today after Treasury Secretary Bessent said he expects US-China de-escalation in the “very near future”.

• 📈 | One Notable Gainer: First Solar $FSLR ( ▲ 10.45% ) shares surged as tariffs hit Chinese solar power firms, due to the company’s strong stateside manufacturing power.

• 📉 | One Notable Decliner: Stock in Northrop Grumman $NOC ( ▼ 12.89% ) was one of the few S&P 500 losers. The defense firm’s earnings fell short after showing a sharp production charge for its stealth bombers.

MARKET MOVERS

3M, Halliburton, Hertz

$MMM ( ▲ 8.68% ) 3M’s stock rallies on the company’s ‘solid game plan’ for tariffs (MarketWatch)

$HAL ( ▼ 5.98% ) Halliburton warns of tariff impact, lower North America oilfield activity; shares plunge (Reuters)

$HTZ ( ▲ 8.17% ) Hertz is rolling out AI-powered inspections to tell if you dinged your rental car (Fortune)

$RTX ( ▼ 8.67% ) / $GE ( ▲ 5.74% ) RTX, GE Aerospace expect more than $1 billion tariff impact (CNBC)

$EFX ( ▲ 13.75% ) Equifax Tops Profit Estimates, Maintains Outlook on Macro Risk (Bloomberg)

OVERHEARD ON THE STREET

AP: US Treasury Secretary Scott Bessent said the ongoing trade war with China is unsustainable and predicted a near-term de-escalation.

Reuters: The IMF cut its 2025 global growth forecast to 2.8% from 3.3% in January, citing century-high US tariffs and a global trade reset.

CNBC: Instagram $META ( ▲ 2.39% ) launched Edits, a new video creation app with TikTok-like features.

Bloomberg: Boeing $BA ( ▲ 1.37% ) sold its Jeppesen unit to Thoma Bravo for more than $10B, its largest step yet toward streamlining its business portfolio.

CNN: Gold surged to a record high of more than $3,500 per ounce following President Trump’s threats to remove Fed Chair Jerome Powell.

TOMORROW’S TRADE IDEA, TODAY

Apple is Falling Further From the Tree

Persistent Pessimism

Despite a roughly 20% drop YTD, Apple’s $AAPL ( ▲ 2.84% ) stock isn’t likely to see a turnaround anytime soon, according to Moffett Nathanson’s Craig Moffett.

The analyst reiterated a Sell rating and dropped his price target to $141, forecasting a further 30% drop from the slumping stock. 

Moffett is also predicting a significant drop in the company’s long-term earnings potential, largely due to tariffs. His EPS estimate for 2025 currently sits at $7.20.

Downhill From Here

Moffett notes Apple may see some short-term benefit from consumers rushing to make purchases before tariffs take hold. But he predicts this trend will be short-lived, and adds that Apple’s earnings outlook for 2026 looks even worse. The analyst expects EPS to drop to $7.06 next year. 

The White House’s latest tariff announcements — smartphone exemptions and an April pause on some duties — could offer some relief. But even with those updates, Apple faces a 20% tariff on China imports and a 10% minimum tax on items from India and Vietnam.

Apple’s supply chain is heavily dependent on these countries, Moffett says, and the effects could be profound.

Don’t Eat the Apple

Apple’s problems don’t begin and end with tariffs. Its AI development is lagging behind its competition, and its iPhone upgrade cycles have been somewhat disappointing. 

It could be facing further headwinds, too, thanks to Google’s $GOOGL ( ▲ 2.74% ) antitrust issues. Apple’s royalties from Google currently account for over 25% of its operating revenue. 

It’s important to note Moffett isn’t exactly omnipotent. The analyst’s recommendations yield an average loss of 3.6%, per TipRanks. Nevertheless, he’s far from the only would-be oracle warning investors not to eat the Apple.

ON OUR RADAR

WSJ: Trump is setting the stage to blame Fed Chair Powell for an economic downturn, accusing the central bank of political bias.

Fortune: Trump's attempt to secure a quick trade deal with Japan fell through, raising doubts among analysts about future tariff agreements.

AP: Starting next month, the Education Department will resume sending defaulted student loans to collections, potentially impacting 5M borrowers.

Reuters: Vietnam's trade ministry ordered stricter controls on imports and tighter procedures to curb fraud on US-bound exports.

CNBC: Check out Warren Buffett’s “simple rule” for building wealth in uncertain markets.

MONDAY’S POLL RESULTS

Which stock will outperform over the next 12 months?

🟩🟩🟩🟩🟩🟩 Verizon (VZ)

🟨🟨⬜⬜⬜⬜ SBA Communications (SBAC)