• Menu
  • Skip to right header navigation
  • Skip to main content
  • Skip to secondary navigation
  • Skip to primary sidebar
  • Skip to footer

Before Header

Philadelphia Wealth & Asset Management Firm

wealth management

  • Why TBA?
    • Why Tower Bridge Advisors?
    • FAQs
  • Who We Serve
    • Individuals & Families
    • Financial Advisors
    • Institutions & Consultants
  • People
    • James M. Meyer, CFA® – CEO
    • Robert T. Whalen – Principal
    • Nicholas R. Filippo – VP, Sales & Marketing
    • Jeffrey Kachel – CFO, Principal & CTO
    • Chad M. Imgrund – Sr. Research Analyst
    • Christopher E. Gildea – Senior Portfolio Manager, Co-Chief Investment Officer
    • Daniel P. Rodan – Sr. Portfolio Mgr.
    • Christopher M. Crooks, CFA®, CFP® – Senior Portfolio Manager, Co-Chief Investment Officer
    • Michael J. Adams – Sr. Portfolio Manager
    • Shawn M. Gallagher, CFA® – Sr. Portfolio Mgr.
  • Wealth Management
    • How to Select the Best Wealth Management Firms
  • Process
    • Financial Planning
    • Process – Equities
    • Process – Fixed Income
  • Client Service
  • News
    • Market Commentary
  • Video
    • Economic Updates
  • Contact
    • Become A TBA Advisor
    • Ask a Financial Question
  • We are looking to add advisors to our team. Click here to learn more!
  • We are looking to add advisors to our team. Click here to learn more!
  • Click to Call: 610.260.2200
  • Send A Message
  • Why TBA?
    • Why Tower Bridge Advisors?
    • FAQs
  • Services
    • Individuals & Families
    • Financial Advisors
    • Institutions & Consultants
  • People
    • James M. Meyer, CFA – Principal & CIO
    • Raymond F. Reed, CFA – Principal
    • Robert T. Whalen – Principal
    • Nicholas R. Filippo – VP, Sales & Marketing
    • Jeffrey Kachel – CFO, Principal & CTO
    • Chad M. Imgrund – Sr. Research Analyst
    • Christopher E. Gildea – Sr. Portfolio Mgr.
    • Daniel P. Rodan – Sr. Portfolio Mgr.
  • Wealth Management
  • Our Process
    • Financial Planning
    • Process: Equities
    • Process – Fixed Income
  • Client Service
  • News
    • News & Resources
    • Market Commentary
  • Videos
    • Economic Updates
  • Contact
    • Become a TBA Advisor
    • Ask a Financial Question
wealth management

July 24, 2025 – Like the game of Go in China, or Igo in Japan, the evolving tariff negotiations between the U.S. and our trading partners are creating a constantly changing gameboard and continue to dominate the news cycle. Markets reacted positively yesterday to indications that Japan’s tariffs would be capped at 15%, less than the 25% expected, and a potential deal with the European Union. Tariffs are already having an impact on corporate earnings and outlooks, although equity markets continue to gain ground.

//  by Tower Bridge Advisors

Let’s Go
The game of Go, also known as Igo in Japan, is a two-player strategy board game. Players aim to control more territory on a grid board by surrounding empty spaces with their stones and capturing opponent’s stones. The game ends when both players pass their turns, indicating they cannot improve their position. The board is constantly changing as players build territories and capture stones, making for a dynamic and evolving game much like the current tariff negotiations.

The U.S. Government reached a trade deal with Japan yesterday that will impose 15% tariffs on imports, including automobiles. The deal includes a $550 billion fund to make investments in the US, with Japan agreeing to provide the funds to invest in projects in America. Japan will also buy 100 Boeing# aircraft, boost rice purchases, and buy $8 billion in agricultural and other products, while hiking defense spending with U.S. firms.

On the flip side, the European Union (EU) plans to hit the US with 30% tariffs on about $100 billion worth of goods if the administration carries through with its threat to impose that rate on most of the EU’s exports after August 1st. Reports circulated yesterday that the US and EU were nearing a deal that would impose a 15% tariff on European imports, similar to the deal with Japan, but with the possibility of exemptions for specific products such as aircraft, alcohol, and medical devices.

Earnings reports and tariff impacts
Based on recent earnings releases, several companies have specifically mentioned or highlighted the impact of tariffs on their financial performance. General Motors# reported a significant $1.1 billion hit to its second-quarter core profit due to tariffs, and warned of a potentially larger impact in the third quarter. RTX Corporation# lowered its overall 2025 profit forecast, but now expects a $500 million headwind from tariffs, down from an initial $850 million estimate. Stellantis, the maker of Jeeps, warned of a loss in the first half of 2025, partially attributed to the impact of US tariffs, which are estimated to have cost the company around $2.7 billion. Danaher#, the science-equipment producer, mentioned a tariff exposure of a couple hundred million dollars in the second quarter. However, this is down from a $350 million prior estimate as the company noted that mitigation strategies have largely offset the impacts. Coca-Cola# expects the tariff impact on its business to be manageable, but has moderated its full-year profit expectations. While tariff commentary by management teams is indicative of the economy-wide impact, market reaction has been both positive and negative depending upon expectations and the severity of any earnings hit.

Early Q2 earnings are good to go
Second quarter earnings season is off to a generally positive start. The blended earnings growth rate for Q2 S&P 500 earnings currently stands at 5.6%, better than the 4.9% expected about a month ago. Of the 12% of S&P 500 companies that have reported for Q2, 83% have beaten consensus EPS expectations, above the 77% one-year average. In aggregate, companies are reporting earnings that are about 8% above expectations. Banks have dominated the reporting thus far with macro themes revolving around a still healthy overall consumer, benign credit, and an improving investment banking pipeline of deals. Looking ahead, earnings are expected to increase 6% in Q3 and 7% in Q4. For all of 2025, earnings are expected to increase by about 9%. That would be a healthy outcome if realized, but tariff developments could be a game-changer once again.

Alphabet# (Google’s parent), is one of the first Magnificent 7 stocks to report earnings, and came through with a positive earnings surprise versus expectations yesterday. However, in order to achieve future growth, Alphabet will be increasing its capital expenditures by $10B more than its previous guidance this year. Google’s advertising revenue growth trends were positive, with both Search & YouTube growth accelerating. Google’s operating margin remained at a 12-year high and Google Cloud growth accelerated to 32%. The stock is reacting positively pre-market.

Go For It
We have not seen a major economic slowdown, job losses or significant inflationary pressures from tariffs yet, although the second half of 2025 could witness an uptick in these metrics based on earnings commentary. The next meeting of the Federal Reserve to decide interest rate policy is next week, though no policy change is expected. Expectations continue to focus on two rate cuts this year at one-half percentage point at a time. Against a tumultuous backdrop, the 10-year Treasury yield has traded in a range of 4.0-4.8% over the past six months, and now sits at 4.4%.

For now, trade negotiations make for volatile markets on the upside and downside. Like the game of Go, this tariff turmoil ends when no more ground can be taken by either side. Meanwhile, despite all of the volatility in markets and interest rates, the S&P500 and Nasdaq are both up over 8% this year and at record closing highs. A few more Go stones need to be placed on the gameboard to solidify our trade and tariff position, which would go a long way toward calming markets down.

Jennifer Lopez turns 56 today, Kristin Chenoweth turns 57, and Barry Bonds hits 61. The fact that Amelia Earhart was born on this day in 1897 and attended the Ogontz School in Rydal, PA, was not lost on us.

Christopher Crooks, CFA®, CFP® 610-260-2219

Tower Bridge Advisors manages over $1.3 Billion for individuals, families and select institutions with $1 Million or more of investable assets. We build portfolios of individual securities customized for each client's specific goals and objectives. Contact Nick Filippo (610-260-2222, nfilippo@towerbridgeadvisors.com) to learn more or to set up a complimentary portfolio review.

# – This security is owned by the author of this report or accounts under his management at Tower Bridge Advisors.

Additional information on companies in this report is available on request. This report is not a complete analysis of every material fact representing company, industry or security mentioned herein. This firm or its officers, stockholders, employees and clients, in the normal course of business, may have or acquire a position including options, if any, in the securities mentioned. This communication shall not be deemed to constitute an offer, or solicitation on our part with respect to the sale or purchase of any securities. The information above has been obtained from sources believed reliable, but is not necessarily complete and is not guaranteed. This report is prepared for general information only. It does not have regard to the specific investment objectives, financial situation or the particular needs of any specific person who may receive this report. Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies discussed in this report and should understand that statements regarding future prospects may not be realized. Opinions are subject to change without notice.

Filed Under: Market Commentary

Previous Post: « July 21, 2025 – Last week was a quiet week for news. The real heart of earnings season starts to kick in this week. Meanwhile the new crypto legislation signed into law last week is likely to change our lives a lot more than what we will learn from a few earnings reports.
Next Post: July 28, 2025 – The world looks pretty healthy but rising speculation elevates our concern. When the amount of corporate money flowing into bitcoin is twice the amount raised in initial public offerings to date, that gets our attention. With that said the focus this week will be on earnings and a slew of economic data on inflation, interest rates, and employment, all of which can be market moving. »

Primary Sidebar

Market Commentary

Sign Me Up!

Latest News

  • September 22, 2025 – The Fed cut rates last week as it focuses more on the deteriorating state of our labor market. The unemployment rate remains modest but only because demand and supply are eroding in tandem, hardly a favorable state of affairs. While the concentration was on labor, more aggressive fiscal and monetary policy could increase inflationary pressures. Thus while President Trump’s new appointee opted for over a one percentage point drop in the Fed Funds rate by year end, the rest of the Board voted to move at a more measured pace. Wall Street applauded that decision.
  • September 18, 2025 – The Federal Reserve cut interest rates by a quarter-point, prioritizing the labor market over persistent inflation. This decision risks a prolonged period of higher inflation and may be fueling a stock market bubble, which is already at a record valuation.
  • September 15, 2025 – So far, investors have been happy with most of the disruptive changes of the Trump Presidency. But the fly in the ointment is the labor market which has shown little growth for several months. Job growth is the ultimate engine for economic growth. Machines and computers can replace workers but they can’t eat or spend money. History says that displaced workers will find alternative employment over time but until they do, growth may slow. Final sales growth within GDP suggests real growth today is well under 2%. That isn’t recessionary but the trend bears watching.
  • September 11, 2025 – The California gold rush began in 1848, when gold was found at Sutter’s Mill in Coloma, California. While many gold prospectors failed to find gold, suppliers of picks and shovels to gold miners garnered the majority of wealth creation. The current gold rush in the artificial intelligence space continues to benefit the picks and shovels equipment suppliers, although the AI “miners” may not all see a similar return on their massive investments.
  • September 8, 2025 – Friday’s employment report was a stinker, confirming an obvious slowdown in the labor market. The unemployment rate is the single most important indicator in America, a legacy of the Great Depression. The simple fact is our workforce drives growth. Without a growing work force the only tailwind is improved productivity. The Federal Reserve, always data dependent and therefore backward looking, is now set to start a series of cuts to the Fed Funds rate beginning next week. Hopefully, those cuts will abort any slowdown and get the economy back on course. Until evidence appears, stocks could experience higher volatility.
  • September 2, 2025 – Equilibrium means balance but doesn’t define the size of a market. A steady unemployment rate, stable housing prices and a steady 10-year bond yield all suggest equilibrium, but beneath the surface, there are warning signs that require investor attention.
  • August 28, 2025 – The July jobs report signaled a cooling labor market, with slowing growth and a slight rise in unemployment, yet consumer spending remains resilient despite retail price hikes caused by new tariffs. This mixed economic data creates a conundrum for the Federal Reserve as it balances its dual mandate amid political pressure and inflationary headwinds. Given this uncertainty and the S&P 500 trading near all-time highs, investors should brace for potential market volatility post Labor Day, as the Fed’s next policy moves will depend heavily on upcoming inflation and jobs data.
  • August 25, 2025 – The Fed’s shift in policy, as stated by Jerome Powell last Friday, moves away from a focus on inflation and more toward insuring full employment. Such a shift suggests more short-term rate cuts and a willingness to tolerate some inflation as long as it stays below 3%. A willingness to tolerate a bit more inflation may sound innocuous but it could lead to unanchored long-term inflation expectations and keep 10-year Treasury yields elevated. If so, the euphoria expressed in Friday’s market rally may have been a bit too exuberant.
  • August 21, 2025 – This Friday we will receive commentary from the Federal Reserve after its annual gathering in Jackson Hole, Wyoming. The central-bank gathering has sometimes been a venue for marking shifts in Fed policy. Last year Fed Chairman Powell used it to signal that rate cuts were coming, and followed through the next month. The Snake River, which runs through Jackson Hole, provides an apt backdrop for the Fed’s meeting where the waters can be turbulent and winding. In the meantime, technology stocks have retreated this week and a number of consumer-focused companies have provided both encouraging and uncertain signals.
  • August 18, 2025 – The noise of front-page news doesn’t seem to coincide with record stock prices. War, ICE raids, violent storms and tariffs may be the topics of the Sunday talk shows, but the stock market cares more about earnings and interest rates. Earnings are rising and interest rates are stable. Will that continue? Earnings growth should slow a bit as the full impact of tariffs hits. While the Fed Funds rates should start to decline this fall, markets will focus on changes in the 10-year Treasury yield more than the Fed Funds rate.

Footer

Wealth Management Services

  • Individuals & Families
  • Financial Advisors
  • Institutions & Consultants

Important Links

  • ADV Part 2 & CRS
  • Privacy Policy

Tower Bridge Advisors, a Philadelphia Wealth and Asset Management firm, is registered with the SEC as a Registered Investment Advisor.

Portfolio Review

Is your portfolio constructed to meet your current and future needs? Contact us today to set up a complimentary portfolio review, using our sophisticated portfolio analysis system.

Contact

Copyright © 2023 Tower Bridge Advisors

Philadelphia Wealth & Asset Management, Registered Investment Advisors

300 Barr Harbor Drive
Suite 705
West Conshohocken, PA 19428

Phone: 610.260.2200
Toll Free: 866.959.2200

  • Why Tower Bridge Advisors?
  • Investment Services
  • Our Team
  • Wealth Management
  • Investment Process
  • Client Service
  • News
  • Market Commentary
  • Economic Update Videos
  • Contact