👊 Netflix smashes earnings

Good morning investors! The market was mixed yesterday and we’ve got big news below.

Today we cover:

• Trump after the Fed

• Netflix beats

• More stock news

📊 Economy and News 

Trump Turns Up the Heat on Fed

Donald Trump is once again pushing the Federal Reserve to lower interest rates, taking to Truth Social to not only demand cuts but also hint—for the first time—at firing Fed Chair Jerome Powell. While a senior official clarified it wasn't a formal threat, it marks a sharp escalation in Trump's long-standing criticism of Powell’s leadership.

The comments came a day after Powell spoke at the Economic Club of Chicago, acknowledging the challenges tariffs pose to monetary policy. He made no mention of upcoming rate changes, and New York Fed President John Williams said current rates remain appropriate.

Trump sees lower rates as a tool to boost growth, fuel markets, and counteract the economic drag from tariffs—potentially strengthening his 2024 campaign. However, premature cuts risk stoking inflation and undermining the Fed’s credibility.

Although Trump cannot legally fire Powell, the public pressure highlights a growing political clash over interest rates. With Powell’s term ending in 2026, the battle over Fed policy may intensify as the election approaches.

Furthermore, Sen. Elizabeth Warren, D-Mass., warned that U.S. markets will “crash” if President Donald Trump can fire Federal Reserve Chair Jerome Powell, saying the central bank’s decisions must remain independent of politics.

A senior White House official later told CNBC that Trump’s broadside should not be seen as a threat to fire Powell.

Global hits:

• ECB cuts rates again, promises agility in face of trade war uncertainty.

• Ukraine’s cenbank holds key rate at 15.5%, sees slower 2025 economic growth.

• Turkish central bank surprises with rate hike to 46% after market turmoil.

Check this: Hermès to hike U.S. prices for iconic bags and scarves in response to Trump tariffs. Elsewhere, Nvidia’s CEO makes surprise visit to Beijing after US restricts chip sales to China.

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📈 Stocks

S&P 500 5 282,70 (+0.13%)
DJIA 39 142,23 (-1.33%)
NASDAQ 16 286,45 (-0.13%)
BRENT CRUDE 67.96 (+3.23%)
* Prices as of Apr 18th, 12:20 AM UTC

Netflix Surges on Strong Q1 Earnings, Focus Shifts to Revenue Over Subscribers

Netflix beat Wall Street expectations in Q1 2025, reporting revenue of $10.54 billion—up nearly 13% year-over-year—and earnings per share of $6.61, topping the $5.71 forecast.

The growth was driven by higher-than-expected subscription and ad revenue. In January, Netflix raised prices across all tiers, with its standard plan now $17.99, ad-supported at $7.99, and premium at $24.99.

Notably, the company did not disclose subscriber numbers for the first time, signaling a shift toward prioritizing revenue and financial performance metrics.

Despite market volatility and pressure on traditional media stocks tied to President Trump’s trade policy, Netflix maintained its full-year revenue outlook of $43.5–$44.5 billion.

Net income rose to $2.89 billion from $2.33 billion a year ago. Shares rose 4% in after-hours trading.

Netflix also launched its in-house ad tech platform in April, aiming to boost advertising capabilities as subscriber growth plateaus.

Netflix executives said the business has remained stable amid recent economic turmoil and declined to revise 2025 guidance upward, despite saying it is “tracking above the mid-point” of its stated range.

Some more news:

• Eli Lilly the daily obesity pill called orforglipron had in late-stage trials helped Type 2 diabetes patients lower their blood sugar and body weight. The highest dose of the pill helped patients lose 7.9% of their weight, or around 16 pounds, on average after 40 weeks, in line with expectations. The news sent the stock about 16% higher helping the company register one of its best days in a long time.

• UnitedHealth Group’s stock sank after the company slashed its annual profit forecast, citing higher-than-expected medical costs in its privately run Medicare plans. Those bleak results from a health-care giant seen as the insurance industry’s bellwether could potentially be a warning sign for other companies with so-called Medicare Advantage plans, according to some Wall Street analysts. UnitedHealth’s first-quarter results reveal “ominous signs” of an accelerating medical costs trend in Medicare Advantage businesses, some analysts said.

• Global Payments announced that it is buying Worldpay for more than $24 billion. In a connected transaction, Global Payments is selling its Issuer Solutions business to Fidelity National Information Services for $13.5 billion. Mizuho analysts wrote in a report that Global Payments “could be seeing more meaningful margin pressure than investors acknowledge.”

• TSMC stock gained ground after posting a Q1 earnings beat. Sales in the quarter fell short of the market's expectations, but the foundry company's results were solid overall.

• Amex reported much-better-than-expected first quarter earnings and maintained its full-year guidance. Moreover, American Express’s affluent cardmembers are showing few signs of curbing their spending, and younger customers drove growth in first-quarter transaction volumes

💵 Personal Finance

Best U.S. Cities for Recent College Grads in 2025: Why Salt Lake City Tops the List

As the class of 2025 approaches graduation, many young adults are weighing where to launch their post-college lives. Whether it's staying close to home or chasing new opportunities in a different city, location matters—and a new report from Apartment Advisor helps narrow down the best options.

The study ranked 98 U.S. cities based on four factors: economic opportunity, cost of living, mobility (like walkability and public transit), and access to entertainment. While big-name cities like New York and Boston might seem like obvious picks, the data shows they may not offer the best return for new graduates.

Top 10 Cities for New Grads in 2025

1. Salt Lake City, Utah

2. Washington, D.C.

3. Portland, Maine

4. Seattle, Washington

5. Charleston, South Carolina

6. Madison, Wisconsin

7. Atlanta, Georgia

8. San Francisco, California

9. Chicago, Illinois

10. Tampa, Florida

Salt Lake City ranked highest overall thanks to its fast-growing population, affordability, and vibrant young adult community. With a median rent of $1,298 and a low unemployment rate of just 1.18% for bachelor’s degree holders, it strikes a strong balance between cost and opportunity. Its rent-to-income ratio of 24.7% makes it easier for new grads to live independently.

Washington, D.C. came in second, with nearly 66% of its residents holding at least a bachelor’s degree. While it isn’t the most affordable option—median rent for a one-bedroom is $2,215—higher salaries tend to offset the cost. The city also offers excellent public transit, dense cultural and entertainment offerings, and access to nearby natural retreats in Maryland and Virginia.

For new grads making big decisions about the future, looking beyond the obvious may be the smartest move.

💰 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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