📈 BlackRock's $23B Port Power Play

Good morning.

⚡ The Fast Five → Honeywell makes $2.2B deal for Pump Maker, Okta pops more than 24%, CrowdStrike falls 9%, CFPB drops case against Zelle, BlackRock inks deal for Panama Canal ports

🔎 Market Trends → Nasdaq nears correction territory dragged down by trade tensions; US Futures Rise on Lutnick’s Comments on Tariffs

And now…

⏱️ Your 5-minute briefing for Wednesday, March 5, 2025:

MARKET BRIEF
Before the Open

Pre-Market

Fear & Greed

Markets in Review

Markets Tumble as Trade War Heats Up—But Some Stocks Shine

The Dow sank 1.6% to 42,521, while the S&P 500 dropped 1.2% to 5,778.2. The Nasdaq dipped 0.4% to 18,285.2 as trade tensions rattled markets. Financials led the losers, while technology stocks held their ground.

The Big Picture:

The U.S. doubled tariffs on Chinese imports to 20%, and its new 25% tariffs on Canada and Mexico took effect Tuesday. Beijing responded with tariffs on U.S. agricultural goods, while Canada announced its own 25% tariffs on $20.65 billion of U.S. goods—with more to come.

Mexico’s retaliatory tariffs are expected Sunday, escalating tensions among America’s largest trading partners. Investors are weighing the impact on supply chains, inflation, and corporate earnings.

The 10-year Treasury yield climbed 6.2 basis points to 4.24%, while the 2-year yield held steady at 3.98%. WTI crude oil slipped 0.4% to $68.09 per barrel, reflecting demand concerns.

Market Movers:

• Best Buy (BBY) tumbled 13%, the worst performer on the S&P 500, after warning of potential price hikes due to tariffs and issuing a weaker-than-expected earnings outlook.

• Target (TGT) fell 3% as the retailer cautioned about consumer spending uncertainties and tariff pressures on profits.

• Nvidia (NVDA) gained 1.7%, the best performer on the Dow, as investors continue betting on AI-driven growth.

• Walgreens Boots Alliance (WBA) surged 5.6%, among the S&P 500’s top gainers, after reports that it’s nearing a $10 billion private-equity buyout deal with Sycamore Partners.

What They’re Saying:

"Trade tensions are stirring up near-term uncertainty, but long-term fundamentals remain intact. Investors should prepare for volatility but resist the urge to overreact," Stifel wrote in a note to clients.

WHAT WE’RE WATCHING
Events

• Today: Automatic Data Processing, Inc. - ADP Non-Farm Employment Change - 8:15am

• Why You Should Care: Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity.

• Today: Institute for Supply Management - Non-Manufacturing PMI - 10:00am

• Why You Should Care: It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy.

Earnings Reports

• Today: Campbell’s, Victoria’s Secret, Foot Locker, Abercrombie & Fitch, Brown-Forman, Thor Industries, MongoDB, NexGen Energy

• Tomorrow: Costco, Kroger, Macy’s, BJ’s Wholesale Club, Gap, Burlington Stores, National Beverage Corp., Broadcom, Hewlett Packard Enterprise

MARKET BRIEF
Leading News

BlackRock's Power Play: $23B Panama Canal Ports Deal Reshapes Global Trade

Why it matters:

BlackRock's acquisition of strategic Panama Canal ports not only resolves geopolitical tensions but creates potentially lucrative infrastructure plays for long-term investors seeking inflation-resistant assets.

Zoom Out:

The world's largest asset manager ($10.5T+ AUM) is flexing its muscles in global infrastructure, acquiring two critical Panama Canal ports from Hong Kong-based CK Hutchison. This $22.8B transaction—BlackRock's (BLK) largest infrastructure investment to date—puts American capital in control of vital shipping chokepoints that handle billions in global trade.

The deal transforms a political flashpoint into an investment opportunity, as former concerns about Chinese influence give way to what BlackRock CEO Larry Fink calls "patient, long-term capital."

Key Insights:

• Strategic positioning: BlackRock's consortium gains control of 43 ports across 23 countries—a diversified portfolio of irreplaceable assets with strong pricing power amid supply chain restructuring.

• Infrastructure renaissance: This fits BlackRock's broader pivot toward "real assets" that can withstand inflation and geopolitical upheaval—a lesson from the 2022 market correction when traditional 60/40 portfolios faltered.

• Political premium: The acquisition carries implicit U.S. government backing, reducing regulatory risk and potentially enhancing returns—what savvy investors might call a "national security moat."

Market Pulse:

"These world-class ports facilitate global trade," notes Fink, signaling BlackRock's intent to monetize critical infrastructure at a time when reshoring and friend-shoring are reshaping global supply chains.

Bull’s Take:

Patient investors should watch for opportunities to gain exposure to this infrastructure play through BlackRock funds (BLK) or shipping ETFs. In a world where geopolitics increasingly drives markets, controlling the arteries of global commerce offers defensive growth that might just sail through the next market storm.

Headlines

• The CFPB drops its case against payment app Zelle, in another sign of a Trump pivot (link)

• Honeywell’s Transformation Continues With $2.2 Billion Deal for Pump Maker (link)

• Okta pops more than 24% on strong earnings and guidance beat (link)

• GE Vernova, AWS Address Energy Demand With Collaboration Agreement (link)

• CoreWeave and Anthropic make opposite money-raising moves as AI attracts billions (link)

• CrowdStrike falls 9% on disappointing earnings forecast (link)

CRYPTO
Fear & Greed

Headlines

• Bitcoin Rises As Coinbase Seeks SEC Crypto Industry Probe Details Amid Trump's Bitcoin Reserve Plans (link)

• Coinbase, Chainlink, Strategy Among Companies Attending Trump's Crypto Summit (link)

• Bitcoin and crypto market downturn sparks $1 billion in liquidations (link)

DAILY SHARE
On the Socials