Market Running On Fumes
PRESENTED BY
CLOSING BELL
Market Running On Fumes
– tenor
After a six-session climb and 19 positive days of the past 25, the S&P 500 fell Tuesday, running out of steam. Retailers and Fed speakers are worried about summer price increases from tariffs, the GOP can’t decide on a tax bill, and the ripping market can only climb so much, especially after retail bought $4B worth of the slight dip Monday, according to JPMorgan Analysts.
St. Louis Reserve Pres. Alberto Musalem said Tuesday that the FOMC and gang have to wait until tariff price raises are over before gauging inflation. He said a ‘look-through’ policy, ignoring tariffs, imagining underlying inflation could be too difficult, and if they miss, they miss big. 👀
Today’s issue covers Home Depot, Where Doers Don’t Pay For Tariffs; Palo Alto ‘Aint Growin’ Like It Used To, and more. 📰
With the final numbers for indexes and the ETFs that track them, 3 of 11 sectors closed green, with health care $XLV ( ▼ 1.0% ) leading and consumer discretionary $XLY ( ▼ 0.96% ) lagging.
S&P 500 Map – finviz
STOCKS
Home Depot, Where Doers Don’t Pay For Tariffs 🔨
While Walmart said it was raising prices, Home Depot said in its quarterly earnings call that it was trying its hardest to diversify its supply chain and keep prices the same.
CFO Richard McPhail told the Wall Street Journal that Home Depot suppliers have tried to push them into price raises, haggling over who will pay what portion of the 30% import tariffs on Chinese goods. The firm sources about half of its goods from the U.S.
McPhail said that in a year, he aimed to have no single country supplying more than a 10% share of their goods.
He also said bad weather hurt comparable sales growth globally, but strong employment meant customers still paid for home improvement projects stateside, pushing U.S. comparable sales higher YoY.
Lowes is set to report tomorrow, and investors watching the home improvement retailers will wait to see how they decide to forecast their coming year.
Walmart and Home Depot kept their forecasts for the year unchanged, though Walmart said tariffs might push them to raise prices. Home Depot missed earnings estimates by four cents on lower comparative sales. They did not say they were eating tariffs, but they did say they would try to avoid paying them altogether.
Home Depot, Inc. Stocktwits sentiment is ‘extremely high’
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COMPANY NEWS
Palo Alto ‘Aint Growin’ Like It Used To 🙃
Palo Alto Networks climbed $PANW ( ▼ 6.88% ) up until the close, when it reported earnings and fell 4%.
The cybersecurity firm said it expects a slowdown in revenue growth based on its current contract order book. The firm reported an outlook in line with expectations, to the exact EPS and revenue range, but it was not enough.
Wall Street Analysts call the forward book guidance metric remaining performance obligations. Palo Alto said it had $13.5B booked out, at the low end of its own outlook, and growing just 19%, down from 21% growth in January.
In the firm’s most recent quarter, its Q3, it beat expectations, with 80 C/share on revenue that grew 15% Yoy to $2.3B.
Chief Nikesh Arora said the firm’s platform sales pitch was working, pulling in $5B in recurring revenue, despite the marginally lower book.
“In Q3, we continued to make progress on our platformization strategy. Our scale and platform breadth make us a leading consolidator of choice in cybersecurity,” Arora said.
Retail and analysts were ‘extremely bullish’ until the earnings report.
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STOCKS
Other Noteworthy Pops & Drops 🗞️
The FDA announced new guidelines requiring clinical trials for annual COVID booster approvals in healthy adults under 65, but not for the treatment of older adults and high-risk individuals. Vaccine makers like $MRNA ( ▼ 4.32% ) climbed on the news, benefiting from regulatory clarity and the likelihood they will run more trials, while getting away with producing vaccines for high-risk users without any new rules.
Bilibili reported Q1 revenue of $965.1M, up 24% YoY, with EPS of $0.12, beating estimates of $0.06. The stock jumped as daily active users hit 106.7M, mobile game revenue surged 76%, and gross margin expanded to 36.3%.
Bitcoin, Ethereum, and Solana rallied after the Senate advanced the GENIUS Act, a bill to regulate stablecoins. The legislation, which had previously faced opposition, passed a key procedural vote, signaling potential regulatory clarity for the crypto market. Bitcoin is less than $4k away from an all-time high.
Pony.ai $PONY ( ▼ 4.59% ) reported Q1 revenue of $13.98M, up 11.6% YoY, driven by a 200% surge in Robotaxi services and an 800% increase in fare-charging revenue. The company unveiled its seventh-generation autonomous driving system, reducing costs by 70% and aiming to expand its fleet to 1,000 vehicles by year-end.
D-Wave $QBTS ( ▼ 0.91% ) unveiled its sixth-generation quantum computer, Advantage2, featuring over 4,400 superconducting qubits and a new Zephyr topology with 20-way qubit connectivity. The system delivers a 40% increase in energy scale, a 75% reduction in noise, and a twofold improvement in qubit coherence time, enhancing computational efficiency for AI, optimization, and materials simulation.
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📱 Trump tariffs live updates: China iPhone exports to US plunge to 14-year low amid tariff tensions
👀 Retail Traders Go on Record Dip Buying Spree, Calming a Jumpy Stock Market
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WHAT’S ON DECK
Tomorrow’s Top Things 📋
Economic data: MBA 30-year mortgage rate (7:00am) Fed Barkin Speech (12:00pm). 📊
Pre-Market Earnings: Baidu ($BIDU), XPeng ($XPEV), iQIYI ($IQ), Lowe’s Companies ($LOW), Weibo ($WB), Canada Goose Hldgs ($GOOS), TJX Companies ($TJX), Wix.com ($WIX), VF ($VFC), Evogene ($EVGN), WeRide ($WRD).🛏️
After-Hour Earnings: Snowflake ($SNOW), Borr Drilling ($BORR), American Superconductor ($AMSC). 🎧
P.S. You can listen to all of these earnings calls and more straight from the Stocktwits app or website. You’ll find them on the calendar page and individual symbol pages once they’re set to begin! We’ll see you there. 👍
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