What the Mexican Tariffs and Earnings From Gap and Uber Mean for the Markets

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Is it the weekend yet?

Jeff Marks, senior portfolio analyst for Jim Cramer's Action Alerts PLUS investing club, weighs in on the Mexican tariffs, Gap's (GPS) - Get Report disappointing earnings and Uber's (UBER) - Get Report first earnings report. 

The Newest Tariffs

President Donald Trump tweeted out that he was imposing tariffs on Mexico starting June 10 late Thursday.

The tariffs could go to 25% by October 1, if President Andres Manuel Lopez Obrador doesn't move swiftly enough to tackle the crisis, Trump said in a statement.

"If the illegal migration crisis is alleviated through effective actions taken by Mexico, to be determined in our sole discretion and judgment, the tariffs will be removed," Trump's statement said.

Gap's Earnings Whiff

Eek.

Real Money Stock of the Day Gap said adjusted earnings came in at 24 cents per share, below analysts expectations of 32 cents. Group revenues fell 2% to $3.7 billion, missing estimates of $3.78 billion, while same-store sales slumped 4%, the steepest in three years, in what CEO Art Peck called an "extremely challenging" quarter.

"As you know, this is one of the coldest, wettest quarters in memory, and while traffic and sales trends improved, as we move through March and April, it was difficult to overcome the extremely slow business that we and others encountered in February," Peck said on a conference call late Thursday. "In addition to the poor weather, we had late spring breaks, a late Easter and delayed and lower tax refunds thrown into the mix, as well. We also missed opportunities on our own, and we could have executed as always better across places in our brands."

Uber's First Earnings Report

Uber reported earnings after the bell Thursday.

Diluted net loss per share for Uber's first quarter of 2019 came in at $2.26, beating Wall Street's expected loss of $2.30 but wider than the year-ago quarter's loss of $1.84 per share. Revenue rose 20% year-over-year to $3.09 billion, beating analyst's estimates of $3.08 billion. And the closely-watched gross bookings numbers rose 34% to $14.649 billion.

Uber spoke heavily about its "healthy competition" with Lyft (LYFT) - Get Report .

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Related. Jim Cramer: Trump Doesn't Care About the Market Impact of Mexico Tariffs