"No room left" rattles auto industry as tariff tantrum sends stocks spiraling lower. (00:24) Walgreens (WSB) gains on reports of Sycamore nearing $10B takeover. (02:40) 23andMe (ME) committee rejects new Wojcicki proposal to take company private. (03:25)Episode transcripts seekingalpha.com/wsb.Show links: Biggest stock movers Tuesday: WBA, ILMN, and moreInvestors may be riding a ‘bucking bronco’ stock market into AprilBitcoin's back to where it started after strategic reserve spikeStocks are no longer sensitive to yields, U.S. dollar – Morgan StanleySign up for our daily newsletter here and for full access to analyst ratings, stock quant scores, dividend grades, subscribe to Seeking Alpha Premium at seekingalpha.com/subscriptions.
Full Episode
Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning. Good morning. Today is Tuesday, March 4th. I'm Julie Morgan. New tariffs are shaking up auto stocks. A deal for Walgreens could become final this week. And the 23andMe board did not accept the CEO's latest offer.
So, of course, we've talked about tariffs on this show, and you're hearing a lot about where they stand on any given day, especially today. Some of the areas taking a hit are auto stocks, suppliers, and ancillary industries.
On Monday, President Trump made his commitment to 25% tariffs on Canada and Mexico a reality, saying during a press conference that there's no room left to make a deal before the midnight deadline.
His remarks sent shockwaves through an already tariff-sensitive market, driving the Dow down 650 points in its aftermath in shares of Detroit's Big Three, General Motors, Ford, and Stellantis, along with Tesla spiraling lower into the close. GM fell nearly 3.6%, Ford 1.7%, Stellantis dropped 3%, and Tesla 6%. 2.8%. The reaction was not isolated to just automakers.
Suppliers like Aptiv, Lear Corp, BorgWarner, Magna International, and Autoliv were also under heavy selling pressure. Dana Incorporated, which makes transmissions, driveshafts, and motion systems for Ford and Stellantis vehicles, as well as parts for the mining and construction industry, experienced a 4.7% drop in its share price to a six-week low.
Adiant, which makes seats and interior components, saw its shares fall almost 7%, while shares of Ohio-based Goodyear Tire and Rubber, the largest tire maker in Canada, buckled by 6.5%. The knee-jerk reaction to President Trump's comments underscored Wall Street's sensitivity to tariff shocks. According to data cited by CNBC, the majority of U.S.
autos are made domestically, with just 16% made in Mexico and a little over 7% from Canada. However, a 25% tax on imports from those countries, along with components imported from outside the U.S., will raise the cost of a vehicle by an average of $6,250, an additional cost that most likely manufacturers and consumers will take on. Both Mexico and Canada have vowed to retaliate against U.S.
tariffs. Walgreens Boots Alliance is up 5.8% in pre-market action after the Wall Street Journal reported that Sycamore Partners was closing in on a deal to acquire the U.S. pharmacy chain for about $10 billion. According to the report, the agreement could be completed as soon as Thursday, barring any last-minute complications.
Private equity firm Sycamore Partners is expected to pay between $11.30 and $11.40 per share in cash, with potential additional value tied to performance-based targets. If the deal proceeds, Sycamore is likely to retain Walgreens' core U.S. retail operations while selling off or taking public other parts of the company.
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