👑 Microsoft Dethrones Apple

Good afternoon! Colossal Biosciences just unveiled its boldest project yet: recreating the long-extinct dire wolf using CRISPR-edited gray wolf DNA. The startup, which boasts a $10B+ valuation and George R.R. Martin as an adviser, introduced three engineered pups—Remus, Romulus, and Khaleesi—on a secret preserve in the U.S. The pups share 99.5% of their DNA with modern gray wolves, but 20 genes were edited to give them that signature dire wolf look.

Colossal claims this is the first time an extinct species has been “brought back,” though some scientists disagree. Critics argue the animals are more cosplay than comeback—genetically tweaked gray wolves, not full-blown de-extincted beasts. The question now: is this Jurassic Park for real, or just a very expensive science experiment with great marketing?

MARKETS

• Tuesday opened with stocks surging on hopes that the White House would soften its tariff stance. All 30 Dow stocks kicked off in the green after President Trump teased “great calls” with South Korea and hinted China might soon follow. At one point, the Dow was up nearly 1,500 points, and investors were cautiously eyeing a trade breakthrough.

• But those calls never came, and by mid-afternoon, reality bit back. The Dow flipped over 1,700 points from high to low, closing down 320 points for its fourth straight loss. The S&P 500 dropped 1.6%, slipping below 5,000 for the first time in a year, while the Nasdaq slid 2.2%. A looming 104% cumulative tariff on Chinese goods—set to hit just after midnight—sent markets tumbling into the close.

STOCKS
Winners & Losers

What’s up 📈

• Health insurers soared after the government announced a $25 billion boost to Medicare Advantage plans in 2026. Humana jumped 10.69%, UnitedHealth Group rose 5.41%, and CVS Health gained 5.92%. ($HUM, $UNH, $CVS)

• Coal stocks rallied on reports President Trump will declare coal a national security asset. Peabody Energy rose 9.21%, while Core Natural Resources gained 4.55%. ($BTU, $CNRC)

• Lockheed Martin added 2.91% as defense names rallied after President Trump pledged a $1 trillion defense budget. ($LMT)

What’s down 📉

• Tilray Brands fell 21.23% on a miss in Q3 earnings and narrowed guidance. ($TLRY)

• Apple dropped 4.98%, extending its losing streak despite hopes it could offset China tariffs with iPhone production in India. ($AAPL)

• Janover plummeted 12.94% after revealing a new Solana-focused crypto strategy and rebrand plan. ($JNVR)

• Greenbrier the railcar manufacturer declined 11.42% after slashing full-year revenue guidance. ($GBX)

• Levi Strauss slid 8% after an early pop on solid earnings faded as tariff worries returned. ($LEVI)

• Harley-Davidson dropped 8.60% after CEO Jochen Zeitz announced plans to retire later this year. ($HOG)

• Infineon Technologies dipped 4.87% after acquiring Marvell’s auto ethernet business. ($IFNNY)

STOCK
Apple Hands Crown Back To Microsoft

A trillion here, a trillion there, and suddenly Microsoft is back on top.

After a brutal four-day slide that shaved 23% off Apple’s stock, Microsoft has officially reclaimed the title of the world’s most valuable company. Apple’s market cap now sits at $2.59 trillion, just behind Microsoft’s $2.64 trillion. That’s a far cry from the near-$4 trillion valuation Apple boasted just a few months ago.

The culprit? A full-on tariff shock. Trump’s aggressive new trade measures—including a headline-grabbing 104% tariff on Chinese imports—have hit Cupertino especially hard. With most of Apple’s supply chain rooted in China, investors are pricing in an iPhone that’s both more expensive to make and harder to sell.

UBS estimates the iPhone 16 Pro Max could cost Americans up to $350 more. That’s not exactly the kind of upgrade pitch consumers love to hear.

A Bitter Pill with a Short-Term Sugar Coating

Strangely enough, the fear of higher prices has spurred a mini-buying spree. Shoppers are rushing to grab current iPhones before the tariff-driven price tags kick in. But don’t mistake that for a comeback—analysts say the long-term picture still looks grim unless Apple finds a workaround.

The Case for a Bounce?

Not everyone’s panicking. Bank of America called Apple’s plunge a “particularly enhanced buying opportunity,” arguing the stock’s drop pushed it below a key valuation threshold (a 25x forward P/E). They’ve slapped a $250 price target on it, banking on a rebound powered by production shifts to India or supplier cost cuts.

But that kind of optimism comes with asterisks. The current definition of “cheap” in this market is still historically expensive. And the sample size of Apple bouncing from these levels? Let’s just say it’s not statistically bulletproof.

Still, in a market where giants are tumbling, Microsoft’s more diversified business model and software-heavy revenue mix may offer a bit more insulation—at least for now.

NEWS
Market Movements

• 🧠 Microsoft Fires Engineers Over AI Protest: Microsoft terminated two engineers who publicly opposed its AI tool contracts with the Israeli military. The firings followed their disruption of the company's 50th-anniversary celebration. ($MSFT)

• 🇪🇺 E.U. to Rule on Apple and Meta Over DMA Compliance: The European Union will soon issue decisions on whether Apple and Meta violated the Digital Markets Act. Both companies could face significant fines depending on the outcome. ($AAPL, $META)

• 🛒 Walmart+ Drives Nearly Half of Digital Sales: Walmart said Walmart+ members were responsible for nearly 50% of its U.S. digital sales in the past fiscal year. Its investor event will spotlight how loyalty and ad programs are lifting margins. ($WMT)

• 👕 Retailers Cut Orders and Freeze Hiring Amid Tariffs: Nike, Lululemon, and smaller clothing brands are delaying inventory and halting hiring. New tariffs are forcing price hikes up to 40% or cutting into margins, with smaller firms fearing survival. ($NKE, $LULU)

• 💊 Walgreens Beats Estimates as Buyout Looms: Walgreens posted Q2 revenue of $38.59B and EPS of $0.63, beating expectations. The performance comes as it moves toward a $10B buyout by Sycamore Partners. ($WBA)

• 💼 CVS Taps Former UPS Exec as New CFO: CVS named Brian Newman as CFO starting April 21. The company reaffirmed its 2025 earnings guidance of $5.75–$6/share. Newman previously held CFO roles at UPS and PepsiCo. ($CVS, $UPS, $PEP)

• ✈️ Spirit Airlines CEO Steps Down Amid Recovery: Spirit Airlines CEO Ted Christie has stepped down as the carrier continues to recover from bankruptcy. A leadership team will manage operations during the transition. ($SAVE)

• 🎨 Global Art Market Sees 12% Decline in 2024: Global art sales fell to $57.5B last year, a 12% drop driven by economic volatility and fragmented trade. U.S. sales fell 9% while China’s plunged 31%, and looming tariffs could worsen the trend. (No ticker)

HEALTHCARE
Health Insurers Just Got a $25 Billion Gift

The Trump administration gave health insurance stocks a reason to smile—and rally like it’s 2020.

In a surprise move, Medicare Advantage plans are getting a 5.06% payment boost for 2026, more than double the 2.23% increase proposed by the Biden administration just a few months ago. That’s $25 billion in new revenue for the industry—and Wall Street is eating it up.

The Market Reaction Was Immediate

Shares of Humana surged 10.69%, CVS Health popped nearly 5.92%, and UnitedHealth Group gained 5.41% on the news. Even the broader health care ETF (XLV) inched up as investors recalibrated what had been a bleak year for insurers.

The reversal signals strong White House backing for Medicare Advantage—the private version of Medicare that now covers over 30 million seniors. Trump’s pick to lead the Medicare agency? None other than Dr. Mehmet Oz, who has both supported the program and criticized its worst billing abuses. (Yes, that Dr. Oz.)

What’s Behind the Hike?

The Centers for Medicare and Medicaid Services said rising medical costs and newer data justified the larger-than-expected bump. The rate hike also comes after the administration scrapped a Biden-era plan to cover obesity drugs—another potential cost driver.

Even with the payment lift, the administration is still pushing forward with a crackdown on so-called "upcoding," where insurers boost reimbursements by logging extra diagnoses. But Wall Street shrugged that off for now.

The Bottom Line: Insurers just dodged a revenue headwind and turned it into a tailwind. Whether it lasts may depend on how serious Oz & Co. get about reform. But for now, investors are all smiles—and a tad bit richer.

Calendar
On The Horizon

Tomorrow

Nothing major on the economic data front tomorrow, but one earnings report could get extra attention. A company squarely in the crosshairs of the new tariff wave is set to post results—and Wall Street will be watching closely to see how it’s handling the pressure.

Before Market Open:

• Delta Air Lines may have one of the steadiest flight paths in the industry, but even it isn’t immune to turbulence. As the largest U.S. carrier, its earnings tomorrow will offer a high-altitude view of how airlines are navigating a tougher environment marked by weaker consumer demand, shrinking corporate travel budgets, and macro uncertainty. With tariffs looming and fuel costs volatile, investors are counting on Delta to map out a clear flight plan for the rest of the year. Solid financials give it an edge, but this earnings call will be more about direction than dollars. Wall Street is forecasting $0.80 in EPS on $13.39 billion in revenue ($DAL).

NEWS
The Daily Rundown

• 🤖 Shopify CEO Urges AI Over Headcount in Memo to Staff: Shopify CEO Tobi Lütke told employees to prioritize AI tools before requesting new hires. The internal directive follows years of layoffs and a push for operational efficiency. Lütke called AI a “fundamental expectation” to increase productivity as the company slims down to 8,100 workers.

• ☢️ U.S. and Iran to Resume Direct Nuclear Talks This Weekend: President Trump announced new direct negotiations with Iran, marking the first official nuclear dialogue since 2015. Talks aim to curb Iran’s nuclear ambitions and potentially de-escalate long-standing tensions between the two nations.

• 🏀 Colleges Set to Share Revenue With Athletes Under $2.8B Settlement: A groundbreaking NCAA settlement could allow schools to pay athletes directly, starting this fall. Power Five schools would be capped at ~$20.5 million per year, while past athletes could receive $2.75 billion in backpay. Critics, including Olivia Dunne, argue the terms undervalue athletes and may violate antitrust laws.

• 🏭 Trump Revives Review of Nippon Steel’s US Steel Takeover: Trump has called for a fresh national security review of Nippon Steel’s $15B bid for U.S. Steel. The move comes after President Biden initially blocked the deal, citing security concerns. Trump’s reversal signals potential approval after meetings with Japan’s leadership.

• 🏆 Florida Gators Win NCAA Championship in Comeback Thriller: The Florida Gators defeated Houston 65–63 to claim their first men’s basketball title since 2007. Down by 12 in the second half, they surged back with key plays by Will Richard and Walter Clayton Jr. Coach Todd Golden, 39, is the youngest title-winning coach in over four decades.

• ⚖️ SCOTUS Allows Deportations Under Wartime Law With Court Oversight: The Supreme Court ruled that the Trump administration can use the Alien Enemies Act to deport Venezuelan migrants with suspected gang ties, as long as they receive judicial review. The decision lifts an injunction but emphasizes due process protections.

• 🛬 Chief Justice Pauses Order to Return Wrongfully Deported Migrant: John Roberts issued a temporary stay on a ruling requiring the government to return Kilmar Abrego Garcia, a deported Maryland resident. The move gives the Court time to weigh the administration’s appeal against the deportation reversal.

• ⛏️ Barrick Gold Considers Rebranding as Barrick Mining to Reflect Copper Expansion: As it expands into copper production, Barrick Gold may change its name to Barrick Mining Corporation. The proposed rebrand reflects the company’s pivot away from gold as it diversifies its mineral portfolio. ($GOLD)

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