Good morning, CFOs. President Trump’s planned Hollywood tariff hurts Netflix, Disney and Paramount stocks; Mattel plans price increases for American toys; plus, OpenAI abandons planned for-profit conversion.

President Trump’s planned 100% tariff on films produced overseas weighed on entertainment company stocks early Monday, though details remain scant on how the administration intends to implement the policy.

The prospect of tariffs on movies sent shudders from Hollywood to Wall Street. Films are the source of billions of dollars in U.S. exports. While many Hollywood workers and studios have called for ways to make shooting films in the U.S. more economical, tariffs could add uncertainty to a business already fighting to stay relevant against digital competitors.

“If this is deployed on a wide scale, it may end up harming the very industry it is supposed to help,” Barclays analysts wrote in a research note.

Shares in Netflix, Disney, Warner Bros. Discovery and Paramount fell 2% or more in morning trading before recovering slightly.

• Hollywood Wanted Trump to Bring Movie-Making Back to the U.S.—But Not Like This.

📆 Earnings

• Archer-Daniels-Midland
• Ball Corp.
• Duke Energy
• Marriott International
• Wynn Resorts

Mattel’s CEO said the company was moving more of its production out of China, lobbying the Trump administration to exempt toys from tariffs and making plans to raise prices on American toys.

The company also scrapped its financial forecast for the year, saying that President Trump’s trade war has made it too difficult to predict consumer spending.

“As we sit here today, we’re modeling different scenarios, but it’s hard to tell where things will land and how the tariff situation will evolve,” Chief Executive Ynon Kreiz said on Monday. “It’s very volatile right now.”

• The big stock rebound showed some signs of exhaustion on Monday.
• OpenAI abandoned a controversial effort to place its juggernaut artificial-intelligence business under the control of a for-profit entity and will instead remain under its founding nonprofit board.
• Skechers will be sold in a deal worth about $9.4 billion to 3G Capital, a private-equity firm that has a history in the consumer-goods sector and had a hand in deals with AB InBev and Kraft Heinz.

📰 Other headlines

• Ford’s First-Quarter Profit Drops 64%, Automaker Suspends Outlook
• Clorox Revenue Drops; Expects Slowdown in Shopping to Continue
• High Beef Costs Hurt Tyson Foods
• Sunoco to Buy Canada’s Parkland in Deal Worth $9.1 Billion
• Palantir Technologies Raises Outlook on Continued AI Demand
• Apple Won’t Be Able to Avoid Price Hikes for Long
• Fed Confronts Lose-Lose Scenario Amid Haphazard Tariff Rollout

BioNTech, the German biotech company, named Novartis executive Ramón Zapata-Gómez as CFO, succeeding Jens Holstein upon the latter's retirement in June. The company had previously disclosed Holstein's plans to retire on June 30, at which time Zapata-Gómez, who has served as the chief financial officer of Swiss drug maker Novartis's biomedical research unit since 2022, will step in. In addition to his work at Novartis, Zapata-Gómez has held financial positions at generic-drug maker Sandoz and consumer-products giant Mondelez International.

—Rob Curran contributed to today’s Ledger.

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