Supreme Court Rules Against Trump's Tariffs, Retailers to Benefit
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 hours ago
0mins
Source: CNBC
- Tariff Ruling Impact: The U.S. Supreme Court ruled 6-3 against Trump's tariffs, stating that the power to tax lies with Congress, which could positively impact retailers and manufacturers, particularly companies like Nike, Target, and Home Depot.
- Nike's Expected Gains: Nike faced significant challenges from Trump's tariffs last year, with footwear prices rising 17% and apparel prices increasing 14%, and the rollback of these tariffs is expected to alleviate cost pressures and potentially boost stock prices.
- Target's Strategic Shift: Target adjusted its corporate strategy due to tariff uncertainties, resulting in missed revenue estimates in the first quarter; with the tariffs being rolled back, the company is expected to regain profitability, with shares briefly rising to $118.98 post-ruling.
- Home Depot's Market Response: Home Depot considered raising prices due to tariffs, which affected consumer purchasing behavior; the rollback of tariffs is anticipated to improve market performance, although the stock has only seen a modest 2% increase recently.
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Analyst Views on NKE
Wall Street analysts forecast NKE stock price to rise
21 Analyst Rating
14 Buy
7 Hold
0 Sell
Moderate Buy
Current: 65.610
Low
62.00
Averages
76.11
High
110.00
Current: 65.610
Low
62.00
Averages
76.11
High
110.00
About NKE
NIKE, Inc. is engaged in the designing, marketing and distributing of athletic footwear, apparel, equipment and accessories and services for sports and fitness activities. The Company's operating segments include North America; Europe, Middle East & Africa (EMEA); Greater China; and Asia Pacific & Latin America (APLA). It sells a line of equipment and accessories under the NIKE Brand name, including bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment and other equipment designed for sports activities. It also designs products specifically for the Jordan Brand and Converse. The Jordan Brand designs, distributes and licenses athletic and casual footwear, apparel and accessories predominantly focused on basketball performance and culture using the Jumpman trademark. The Company also designs, distributes and licenses casual sneakers, apparel and accessories under the Chuck Taylor, All Star, One Star, Star Chevron and Jack Purcell trademarks.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Trump's Global Tariff Policy Impacts Markets
- Supreme Court Ruling Impact: The U.S. Supreme Court's 6-3 decision to strike down Trump's emergency tariffs led to a volatile market uptick, although Trump announced a 10% global tariff that can only last 150 days without congressional action, indicating ongoing policy uncertainty that may exert continued pressure on the markets.
- Nike Stock Fluctuation: Nike, facing a $1.5 billion cost headwind from tariffs, saw its stock briefly rise above $68 post-ruling, but quickly reversed as the market recognized Trump's potential for alternative trade restrictions, highlighting the market's sensitivity to tariff policy changes.
- Cybersecurity Stocks Decline: Following Anthropic's release of the Claude Code Security tool, stocks like CrowdStrike and Palo Alto Networks dropped, reflecting the market's sensitivity to AI disruption announcements, despite a general belief that AI will drive increased demand for cybersecurity solutions.
- Upcoming Earnings Reports: Next week, key earnings from Home Depot, TJX, Salesforce, Nvidia, and Qnity are anticipated, with Nvidia's performance expected to significantly influence market sentiment, alongside the release of crucial economic indicators such as durable goods orders, consumer confidence, jobless claims, and the producer price index.
See More
Supreme Court Rules Against Trump's Tariffs, Retailers to Benefit
- Tariff Ruling Impact: The U.S. Supreme Court ruled 6-3 against Trump's tariffs, stating that the power to tax lies with Congress, which could positively impact retailers and manufacturers, particularly companies like Nike, Target, and Home Depot.
- Nike's Expected Gains: Nike faced significant challenges from Trump's tariffs last year, with footwear prices rising 17% and apparel prices increasing 14%, and the rollback of these tariffs is expected to alleviate cost pressures and potentially boost stock prices.
- Target's Strategic Shift: Target adjusted its corporate strategy due to tariff uncertainties, resulting in missed revenue estimates in the first quarter; with the tariffs being rolled back, the company is expected to regain profitability, with shares briefly rising to $118.98 post-ruling.
- Home Depot's Market Response: Home Depot considered raising prices due to tariffs, which affected consumer purchasing behavior; the rollback of tariffs is anticipated to improve market performance, although the stock has only seen a modest 2% increase recently.
See More
Midday Market Moves: Retailers Rally Post-Tariff Ruling
- Retailer Rally: Following the Supreme Court's tariff ruling, Amazon shares rose over 2% and Shopify climbed 4%, indicating retailers' resilience under tariff pressures, which could boost market confidence and consumer spending.
- Opendoor Beats Estimates: Opendoor reported fourth-quarter revenue of $736 million, exceeding the LSEG estimate of $549 million, although it anticipates a first-quarter adjusted EBITDA loss in the range of $30 million to $32 million; management aims for positive adjusted net income by the end of 2026, showcasing long-term growth potential.
- Comfort Systems Strong Performance: Comfort Systems reported a fourth-quarter EPS of $9.37, surpassing the FactSet estimate of $6.75, with revenue of $2.65 billion exceeding the $2.34 billion forecast, highlighting the company's robust performance in the HVAC and electrical services sector.
- Chemours Shares Plunge: Chemours' fourth-quarter EPS was only 5 cents, below the FactSet estimate of 7 cents, with revenue of $1.33 billion matching market expectations, reflecting challenges in the industrial and specialty chemicals sector, leading to an 18% drop in share price.
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Supreme Court Strikes Down Trump's Tariffs, Market Reaction Mixed
- Tariff Ruling Impact: The Supreme Court's decision to strike down Trump's emergency tariffs is seen as positive for consumer-facing companies like Nike; however, the market remains cautious about the potential for tariffs to be reimposed, resulting in a muted response from retail and consumer stocks.
- Stock Volatility Analysis: Texas Roadhouse exited its position due to lackluster earnings, and although the stock initially opened higher on accelerating same-store sales, it ultimately turned lower, reflecting market concerns over high beef prices.
- Corning Stock Surge: Corning's shares rose 7%, making it one of the biggest gainers in the S&P 500 after UBS raised its price target from $125 to $160, with analysts increasing sales and earnings forecasts based on high capital expenditure plans from hyperscalers.
- Future Outlook: Analysts believe there could be further upward revisions in capital expenditures following Nvidia's earnings report next week, which may lead to additional contracts for Corning, particularly in fiber-optic cable and connectivity solutions, thereby driving the company's growth.
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Supreme Court Strikes Down Trump's Tariff Policy
- Tariff Policy Impact: The Supreme Court's ruling against Trump's tariff agenda is expected to reduce the average household cost burden to between $600 and $800 in 2026, down from $1,000 in 2025, alleviating economic pressure on consumers, particularly low-income households.
- Legal Authority Challenge: In a 6-3 decision, the Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to unilaterally impose tariffs, which limits presidential power over tariff policy and could lead to significant changes in future tariff regulations.
- Alternative Pathways Explored: The Trump administration may seek to impose tariffs through other legal avenues such as Section 122 of the 1974 Trade Act and Section 338 of the 1930 Smoot-Hawley Tariff Act, although these measures may face legal challenges and have lower tariff caps.
- Ongoing Consumer Impact: Despite the overturning of IEEPA tariffs, the average effective tariff rate in the U.S. remains at 9.1%, meaning consumers will still experience price increases when purchasing metal products, electronics, and vehicles, with low-income households bearing a heavier burden.
See More
Supreme Court Rules Trump Tariffs Illegal, Potential $175 Billion Refunds Loom
- Supreme Court Ruling: The U.S. Supreme Court's 6-3 decision declaring Trump's unilateral tariffs illegal could obligate the government to refund over $175 billion to importers, impacting a wide range of businesses and highlighting significant legal flaws in Trump's policies.
- Refund Estimates: The $175 billion refund estimate from the Penn-Wharton Budget Model is based on tariffs collected since their imposition, reflecting the potential fiscal implications of Trump's tariff policies on the federal budget.
- Legal Challenges: Multiple importers have initiated lawsuits seeking refunds, citing lower court rulings that deemed Trump's tariffs illegal, which may lead to substantial legal challenges and refund requests for the government, increasing policy uncertainty.
- Economic Impact: Economists estimate that the illegal IEEPA-related tariffs constitute about 60% of all tariffs imposed to date, indicating a significant drop in tariff rates from 9.5% to 5%, which could have profound effects on U.S. trade and consumer prices, potentially generating uncertainty in future trade agreements.
See More
Trump's Global Tariff Policy Impacts Markets
- Supreme Court Ruling Impact: The U.S. Supreme Court's 6-3 decision to strike down Trump's emergency tariffs led to a volatile market uptick, although Trump announced a 10% global tariff that can only last 150 days without congressional action, indicating ongoing policy uncertainty that may exert continued pressure on the markets.
- Nike Stock Fluctuation: Nike, facing a $1.5 billion cost headwind from tariffs, saw its stock briefly rise above $68 post-ruling, but quickly reversed as the market recognized Trump's potential for alternative trade restrictions, highlighting the market's sensitivity to tariff policy changes.
- Cybersecurity Stocks Decline: Following Anthropic's release of the Claude Code Security tool, stocks like CrowdStrike and Palo Alto Networks dropped, reflecting the market's sensitivity to AI disruption announcements, despite a general belief that AI will drive increased demand for cybersecurity solutions.
- Upcoming Earnings Reports: Next week, key earnings from Home Depot, TJX, Salesforce, Nvidia, and Qnity are anticipated, with Nvidia's performance expected to significantly influence market sentiment, alongside the release of crucial economic indicators such as durable goods orders, consumer confidence, jobless claims, and the producer price index.
See More
Supreme Court Rules Against Trump's Tariffs, Retailers to Benefit
- Tariff Ruling Impact: The U.S. Supreme Court ruled 6-3 against Trump's tariffs, stating that the power to tax lies with Congress, which could positively impact retailers and manufacturers, particularly companies like Nike, Target, and Home Depot.
- Nike's Expected Gains: Nike faced significant challenges from Trump's tariffs last year, with footwear prices rising 17% and apparel prices increasing 14%, and the rollback of these tariffs is expected to alleviate cost pressures and potentially boost stock prices.
- Target's Strategic Shift: Target adjusted its corporate strategy due to tariff uncertainties, resulting in missed revenue estimates in the first quarter; with the tariffs being rolled back, the company is expected to regain profitability, with shares briefly rising to $118.98 post-ruling.
- Home Depot's Market Response: Home Depot considered raising prices due to tariffs, which affected consumer purchasing behavior; the rollback of tariffs is anticipated to improve market performance, although the stock has only seen a modest 2% increase recently.
See More
Midday Market Moves: Retailers Rally Post-Tariff Ruling
- Retailer Rally: Following the Supreme Court's tariff ruling, Amazon shares rose over 2% and Shopify climbed 4%, indicating retailers' resilience under tariff pressures, which could boost market confidence and consumer spending.
- Opendoor Beats Estimates: Opendoor reported fourth-quarter revenue of $736 million, exceeding the LSEG estimate of $549 million, although it anticipates a first-quarter adjusted EBITDA loss in the range of $30 million to $32 million; management aims for positive adjusted net income by the end of 2026, showcasing long-term growth potential.
- Comfort Systems Strong Performance: Comfort Systems reported a fourth-quarter EPS of $9.37, surpassing the FactSet estimate of $6.75, with revenue of $2.65 billion exceeding the $2.34 billion forecast, highlighting the company's robust performance in the HVAC and electrical services sector.
- Chemours Shares Plunge: Chemours' fourth-quarter EPS was only 5 cents, below the FactSet estimate of 7 cents, with revenue of $1.33 billion matching market expectations, reflecting challenges in the industrial and specialty chemicals sector, leading to an 18% drop in share price.
See More
Supreme Court Strikes Down Trump's Tariffs, Market Reaction Mixed
- Tariff Ruling Impact: The Supreme Court's decision to strike down Trump's emergency tariffs is seen as positive for consumer-facing companies like Nike; however, the market remains cautious about the potential for tariffs to be reimposed, resulting in a muted response from retail and consumer stocks.
- Stock Volatility Analysis: Texas Roadhouse exited its position due to lackluster earnings, and although the stock initially opened higher on accelerating same-store sales, it ultimately turned lower, reflecting market concerns over high beef prices.
- Corning Stock Surge: Corning's shares rose 7%, making it one of the biggest gainers in the S&P 500 after UBS raised its price target from $125 to $160, with analysts increasing sales and earnings forecasts based on high capital expenditure plans from hyperscalers.
- Future Outlook: Analysts believe there could be further upward revisions in capital expenditures following Nvidia's earnings report next week, which may lead to additional contracts for Corning, particularly in fiber-optic cable and connectivity solutions, thereby driving the company's growth.
See More
Supreme Court Strikes Down Trump's Tariff Policy
- Tariff Policy Impact: The Supreme Court's ruling against Trump's tariff agenda is expected to reduce the average household cost burden to between $600 and $800 in 2026, down from $1,000 in 2025, alleviating economic pressure on consumers, particularly low-income households.
- Legal Authority Challenge: In a 6-3 decision, the Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to unilaterally impose tariffs, which limits presidential power over tariff policy and could lead to significant changes in future tariff regulations.
- Alternative Pathways Explored: The Trump administration may seek to impose tariffs through other legal avenues such as Section 122 of the 1974 Trade Act and Section 338 of the 1930 Smoot-Hawley Tariff Act, although these measures may face legal challenges and have lower tariff caps.
- Ongoing Consumer Impact: Despite the overturning of IEEPA tariffs, the average effective tariff rate in the U.S. remains at 9.1%, meaning consumers will still experience price increases when purchasing metal products, electronics, and vehicles, with low-income households bearing a heavier burden.
See More
Supreme Court Rules Trump Tariffs Illegal, Potential $175 Billion Refunds Loom
- Supreme Court Ruling: The U.S. Supreme Court's 6-3 decision declaring Trump's unilateral tariffs illegal could obligate the government to refund over $175 billion to importers, impacting a wide range of businesses and highlighting significant legal flaws in Trump's policies.
- Refund Estimates: The $175 billion refund estimate from the Penn-Wharton Budget Model is based on tariffs collected since their imposition, reflecting the potential fiscal implications of Trump's tariff policies on the federal budget.
- Legal Challenges: Multiple importers have initiated lawsuits seeking refunds, citing lower court rulings that deemed Trump's tariffs illegal, which may lead to substantial legal challenges and refund requests for the government, increasing policy uncertainty.
- Economic Impact: Economists estimate that the illegal IEEPA-related tariffs constitute about 60% of all tariffs imposed to date, indicating a significant drop in tariff rates from 9.5% to 5%, which could have profound effects on U.S. trade and consumer prices, potentially generating uncertainty in future trade agreements.
See More
