Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action, news, and analysis.

Good afternoon. Today is Monday, May 5th, and I'm your host, Kim Khan. Our top story so far, it's Tariffs, The Movie.

President Donald Trump announced a 100% tariff on all movies produced outside of the U.S.

He cited the need to protect a, quote, dying, unquote, American film industry.

Trump claims that foreign governments are offering incentives to lure film makers and studios away from Hollywood,

which he describes as a coordinated effort that threatens national security and acts as propaganda.

He authorized the Department of Commerce and the United States Trade Representative to institute the tariff, according to his post on Truth Social. The movie industry in America is dying a very fast death, he wrote. Other countries are offering all sorts of incentives to draw filmmakers and studios away from the United States. Hollywood and many other areas within the USA are being devastated. This is a concerted effort by other nations and therefore a national security threat. It is, in addition to everything else, messaging and propaganda. Commerce Secretary Howard Lutnik posted on X, we're on it. But right now, there's a little idea of how the tariff would work.

Would moviegoers see a ticket tax for certain films at the box office? What movies would count as

being made in America? Would 100% of shots have to be filmed stateside? And what valuation

the tariff would be based on. Just production costs or also distribution. The announcement

comes amid ongoing trade tensions, particularly with China, which has recently

reduced the number of U.S. films it imports.

Netflix, Disney Warner Brothers Discovery, Paramount Global, Lions Gain, and IMAX are all trading

lower.

Looking into the economy, April's ISM Services Index increased the 51.6 in April from 50.8 in March, exceeding the 50.2

consensus. Steve Miller, chair of the ISM Services Business Survey Committee, said April's change

in indexes was a reversal of March's direction, with increases in three new orders, employment,

and supply derivatives, of the four sub-indexes that directly

factor into the services PMI. Of those four, only the Business Activity Index had a lower

reading compared to March. Employment continues to be the only one of these sub-indexes in

contraction territory, with two straight months of contraction. In discussing concerns about

tariffs, survey respondents mentioned

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