Stock Movers Tariffs Strike Merck and Pepsi; American Air Uncertainty
Apr 24, 2025
Merck is navigating a turbulent trade environment, cutting its earnings forecast while still posting stronger-than-expected quarterly results. PepsiCo shares have dipped due to lowered profit expectations, driven by fluctuating trade policies and consumer sentiment. Meanwhile, American Airlines has retracted its earnings outlook amid economic uncertainty, reflecting challenges in domestic leisure travel. The uncertainty rippling through these industries paints a complex picture of the current market landscape.
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Merck Faces Tariff Impact But Beats Estimates
- Merck expects to lose $200 million due to tariffs affecting its global supply chain, especially between the US and China.
- Despite tariff challenges, their Q1 results beat expectations, driven by strong sales beyond the cancer drug Keytruda.
PepsiCo Lowers Profit Outlook Amid Uncertainty
- PepsiCo lowered its full-year profit outlook due to volatile global trade and rising supply chain costs.
- Additional challenges include government efforts to restrict artificial dyes and soda purchases via food vouchers.
Airlines Cut Earnings Guidance Over Economy
- Airlines like American, Delta, Southwest, and Frontier are withdrawing or lowering earnings guidance due to economic uncertainty.
- Trade tensions and weakened consumer confidence hurt travel demand and airline profitability.