Hims & Hers to sell Eli Lilly’s Zepbound on its platform

US stocks are falling out of bed, with the S&P 500 paring an advance of more than 3% down to about 0.5% on confirmation that an escalating trade war is indeed happening.

White House press secretary Karoline Leavitt said the additional 50% tariffs imposed on China following its retaliatory tariffs on the US are going into effect.

Here’s this headline, which is definitely real:

*LEAVITT: US TO IMPOSE 104% TARIFFS ON CHINA TOMORROW: FOX BIZ

A Goldman Sachs basket of US stocks with high exposure to China (ex semiconductors) is in the red and lagging the benchmark US stock index, with the underperformance swelling after that headline hit the wires.

One lesson from Monday’s mayhem — and a factor behind Tuesday’s early gains — is that traders are desperately looking for, and believing in, potential off-ramps from highly disruptive trade levies. The recent price action may serve as a portent of what awaits if the current policy course we’re on stays intact.

If the US does spiral into a self-induced recession, as economists are increasingly predicting, history shows consumer staples may be one of the safest places to invest, according to Bank of America analysts.

Some of the companies it recommends are Zyn maker Philip Morris International, sugary drink staple Coca-Cola, and condiment and spice seller McCormick. Those industries have outperformed in most recessions, with the exception of COVID-19.

They have also outperformed this year as President Trump’s tariff threats have rattled global markets.

Bank of America is pounding the table on Apple’s attractive risk-reward profile after the stock’s massive tariff-induced plunge.

“In our view, the pullback presents a particularly enhanced buying opportunity for investors to own a high-quality name,” a team led by Wamsi Mohan wrote.

While acknowledging that “history is not a guide,” Mohan examined times when the iPhone maker’s 12-month forward price-to-earnings ratio has fallen below 25x, a threshold it breached recently.

The forward returns are encouraging:

Bank of America has a “buy” rating and $250 price target on the shares.

Management has some options at its disposal to blunt the potential impact of tariffs, according to Mohan, such as moving production to India, raising selling prices, or squeezing its suppliers.

Taken plainly, this note is a resounding endorsement of one of America’s leading companies. But I think it’s also revealing as to the challenges investors have in trying to assess what constitutes “value” in the current market environment.

First, a forward price-to-earnings ratio below 25x doesn’t exactly scream “cheap.” Second, all these periods of multiple compression examined by BofA have come since the end of 2020. So, we’re really only looking at a valuation cushion that’s seemingly existed for the company during a time in which the US stock market as a whole has been very richly valued. The sample size is understandably small, and I have thoughts about the folly of low-n analysis.