1426 ET - Investors should be closely watching inventory levels as companies navigate quickly changing tariff policies, Morgan Stanley analysts say in a research note. "Companies began pulling forward inventory orders at the start of the year to get ahead of possible tariffs, realizing they were high on the Trump administration's agenda," the analysts write, noting a spike in imports of consumer goods during 1Q. They note, though, that demand for industrial warehouse leases has remained flat, signaling that inventory is being stockpiled as a temporary measure rather than for the long haul. The analysts have additionally been watching container traffic departing China to the U.S., which surged ahead of tariffs and has since fallen off. (connor.hart@wsj.com)

(END) Dow Jones Newswires

May 13, 2025 14:26 ET (18:26 GMT)

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