😇 Earnings are here

Good morning investors! Earnings season is now in full swing but challenges persist. also, on Monday, both the S&P 500 and Nasdaq 100 triggered a "death cross," as their 50-day moving averages dipped below their 200-day moving averages for the first time in three years. The last time this pattern emerged, markets declined by 11% before the 50-day average recovered above the 200-day—nearly a year later. However, it may not be as ominous as it sounds.

Today we cover:

• More tariff issues

• Nvidia’s troubles

• Earnings are here

📊 Economy and News 

Rare Earth Restrictions from China Threaten U.S. Supply Chains

In response to U.S. President Donald Trump's escalating tariffs on China, Beijing imposed export restrictions earlier this month on seven rare earth elements critical to defense, energy, and automotive industries.

The Center for Strategic and International Studies (CSIS) cautioned that these restrictions could lead to a pause in exports and disrupt supplies for several U.S. companies.

CSIS highlighted that the U.S. is especially exposed to such risks, as rare earths are essential components in many advanced military technologies.

We must mention that Trump has been pressing China to talk and calm things down.

Global hits:

• US import prices ease, but tariffs casting shadow over inflation.

• Apple airlifted iPhones worth a record $2 billion from India in March as Trump tariffs loomed.

• LVMH dethroned by Hermès as world’s most valuable luxury stock after sales miss causing the stock to fall nearly 8%.

Global inflation: Canada’s inflation surprisingly slows to 2.3% in March. Nigeria’s annual inflation picks up to 24.23% in March. India’s wholesale inflation falls to six-month low of 2.05% in March

Reminder: American Airlines to make Wi-Fi free on most of its fleet in 2026. We’d like to add that in a poll in January, nearly 80% of our subscribers said that onboard WiFi isn’t a service they’d like to pay for.

Also, President Donald Trump directed his health department on Tuesday to work with Congress on revamping a law that allows Medicare to negotiate prescription drug prices, seeking to introduce a change the pharmaceutical industry has lobbied for.

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📈 Stocks

S&P 500 5,396.63 (-0.17%)
DJIA 40,368.96 (-0.38%)
NASDAQ 16,823.17 (-0.049%)
BRENT CRUDE 64.67 (-0.32%)
* Prices as of Apr 16th, 12:20 AM UTC

Nvidia Hit with $5.5 Billion Charge Over China Export Restrictions

Nvidia will take a $5.5 billion quarterly charge due to new U.S. export restrictions on its H20 AI chips to China and other regions, the company said Tuesday. The news sent shares down 6% in after-hours trading.

The U.S. government informed Nvidia on April 9 that a license would now be required to export the H20, a chip designed to comply with earlier rules. Despite this, the chip generated an estimated $12–$15 billion in 2024.

This marks the clearest sign yet that tightening U.S. controls could slow Nvidia’s growth. CEO Jensen Huang recently noted that revenue from China has dropped by half since restrictions began. China is Nvidia’s fourth-largest market, after the U.S., Singapore, and Taiwan.

The H20, a scaled-down version of the H100 and H200 chips, is based on the older Hopper architecture. Nvidia is now focused on selling its new Blackwell chips.

The company also faces new “AI diffusion” rules beginning next month, adding further export hurdles. Nvidia has warned that continued restrictions could harm U.S. tech competitiveness. It has since moved some operations out of China.

In its latest filing, Nvidia said the license requirement for H20 exports will remain in place “for the indefinite future.” Q1 earnings are due May 28.

Good to know: OpenAI considering its own social network to compete with Elon Musk’s X. On the other hand, reports say that Meta CEO Mark Zuckerberg considered spinning off Instagram from Facebook in 2018. Lastly, Boeing shares fall on report that China has halted its deliveries as part of trade war.

More earnings:

• Bank of America reported an 11% profit jump to $7.4 billion, or 90 cents per share, as revenue rose 5.9% to $27.51 billion. Results topped expectations, driven by net interest income of $14.6 billion—above the $14.56 billion estimate—thanks to lower deposit costs and higher-yielding investments.

• Citigroup's Q1 results outperformed expectations, driven by strong gains in fixed income and equities trading. Fixed income traders generated $4.5 billion—an 8% increase year-over-year—thanks to heightened activity in currencies and government bonds. Equities trading revenue jumped 23% to $1.5 billion, surpassing the $1.4 billion estimate amid increased market volatility and client demand.

• Johnson & Johnson shares slipped even after the company reported stronger-than-expected earnings. J&J delivered adjusted earnings per share of $2.77 on revenue of $21.89 billion, with U.S. sales rising 6% to $12.31 billion. The dip followed a downward revision to its full-year outlook, factoring in expenses tied to its January acquisition of Intra-Cellular Therapies and anticipated costs from tariffs introduced under the Trump administration.

💵 Personal Finance

Managing Subscription Overload

Subscription overload—accumulating too many recurring payments for services like streaming, apps, or memberships—can drain your finances unnoticed. Here are tips to tackle this rare but growing issue:

1. Audit Your Subscriptions Monthly
   Review bank and credit card statements to list all subscriptions. Use a spreadsheet or budgeting app (e.g., YNAB or Mint) to track names, costs, and renewal dates. Cancel any unused or low-value services immediately.

2. Set a Subscription Budget Cap
   Allocate a fixed monthly amount (e.g., $50) for non-essential subscriptions. Prioritize services you use weekly over those used sporadically. If you exceed the cap, cancel or downgrade one before adding another.

3. Leverage Free Trials Strategically
   Before committing, test services during free trials. Set calendar reminders to cancel 1-2 days before the trial ends to avoid accidental charges. Use virtual credit cards (offered by some banks) for trials to prevent auto-billing.

4. Negotiate or Share Plans
   Contact providers to negotiate discounts, especially for annual renewals. Alternatively, split family or group plans (e.g., Spotify or Netflix) with trusted friends or family to cut costs while maintaining access.

5. Use Subscription Management Tools
   Apps like Rocket Money or Trim can identify, track, and cancel subscriptions for you. Some even negotiate lower rates. Set up alerts for price hikes or unused services to stay proactive.

By implementing these steps, you can reclaim control over recurring expenses and redirect savings toward high-priority financial goals like debt repayment or investments.

💰 Be a Better Investor

👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.

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