Market Update
S&P 500 and Nasdaq Face Headwinds as Tariff Uncertainty Weighs
Barry Adams
30 May, 2025
New York City
Wall Street indexes wavered on the final day of the month amid Trump tariff uncertainty and lack of progress on the promised "hundreds of deals by June."
The S&P 500 index decreased 0.1%, and the Nasdaq Composite declined 0.2%, as Treasury Secretary Scott Bessant confirmed a lack of progress in convincing China.
Moreover, Japanese negotiators are sending signals about the lack of priorities or a framework for trade negotiations, as Japanese vehicle makers resist 25% tariffs on passenger cars and parts.
The Trump administration's botched import tax launch is beginning to show in earnings calls, and leading retailers confirmed stalled sales growth, higher costs from tariffs, and plans to increase retail prices as early as June.
Burlington Stores, Macy's, Ross Stores, Best Buy, Gap, Target, and Walmart have withdrawn or lowered their annual outlook, citing tariffs and macroeconomic uncertainty.
The Trump administration is forced to use presidential powers available through the Trade Act of 1974, but sector-specific tariffs for durations longer than six months are hard to implement.
U.S. Stock Movers
Gap Inc. dropped 14.5% to $23.83 after the company's fiscal second quarter flat revenue outlook fell short of market expectations.
The specialty apparel retailer reported better-than-expected fiscal first quarter revenue and earnings, and the company warned that tariff-related hits may cost between $100 million and $150 million.
Dell Technologies advanced 0.9% to $114.58 after the computing device maker reported better-than-expected fiscal first quarter revenue of $23.38 billion.
The company also lifted its annual earnings outlook, citing demand for its advanced servers for artificial intelligence applications.
Costco Wholesale Corp. decreased 0.4% to $1,004.99, and the membership warehouse retailer operator reported better-than-expected revenue, earnings, and same-store sales.
Revenue increased to $63.20 billion from $58.51 billion, net income jumped to $1.90 billion from $1.68 billion, and diluted earnings per share rose to $4.28 from $3.78 a year ago.
Comparable sales edged up 5.7% in the quarter, and e-commerce sales surged 14.8%.
Excluding the impacts from changes in gasoline prices and foreign exchange, comparable sales increased 8%, and e-commerce sales were up 15.7%.
U.S. Stocks Face Headwinds Amid Botched Tariff Pl
Barry Adams
30 May, 2025
New York City
Wall Street indexes wavered on the final day of the month amid Trump tariff uncertainty and lack of progress on the promised "hundreds of deals by June."
The S&P 500 index decreased 0.1%, and the Nasdaq Composite declined 0.2%, as Treasury Secretary Scott Bessant confirmed a lack of progress in convincing China.
Moreover, Japanese negotiators are sending signals about the lack of priorities or a framework for trade negotiations, as Japanese vehicle makers resist 25% tariffs on passenger cars and parts.
The Trump administration's botched import tax launch is beginning to show in earnings calls, and leading retailers confirmed stalled sales growth, higher costs from tariffs, and plans to increase retail prices as early as June.
Burlington Stores, Macy's, Ross Stores, Best Buy, Gap, Target, and Walmart have withdrawn or lowered their annual outlook, citing tariffs and macroeconomic uncertainty.
The Trump administration is forced to use presidential powers available through the Trade Act of 1974, but sector-specific tariffs for durations longer than six months are hard to implement.
U.S. Stock Movers
Gap Inc. dropped 14.5% to $23.83 after the company's fiscal second quarter flat revenue outlook fell short of market expectations.
The specialty apparel retailer reported better-than-expected fiscal first quarter revenue and earnings, and the company warned that tariff-related hits may cost between $100 million and $150 million.
Dell Technologies advanced 0.9% to $114.58 after the computing device maker reported better-than-expected fiscal first quarter revenue of $23.38 billion.
The company also lifted its annual earnings outlook, citing demand for its advanced servers for artificial intelligence applications.
Costco Wholesale Corp. decreased 0.4% to $1,004.99, and the membership warehouse retailer operator reported better-than-expected revenue, earnings, and same-store sales.
Revenue increased to $63.20 billion from $58.51 billion, net income jumped to $1.90 billion from $1.68 billion, and diluted earnings per share rose to $4.28 from $3.78 a year ago.
Comparable sales edged up 5.7% in the quarter, and e-commerce sales surged 14.8%.
Excluding the impacts from changes in gasoline prices and foreign exchange, comparable sales increased 8%, and e-commerce sales were up 15.7%.
European Markets Scale Higher May Amid Persistent Trade and Geopolitical Uncertainties
Bridgette Randall
30 May, 2025
London
Stock market indexes across Europe struggled to advance on the final trading day of May, as investors remained defensive amid persistent uncertainties surrounding the U.S. trade policy.
Benchmark indexes in Frankfurt, Paris, Milan, and London flatlined as a U.S. court reinstated global tariffs imposed by the Trump administration in less than 24 hours after they were deemed illegal by another court.
The rapid shift in the U.S. trade policy and rules reinforces the world view that the current administration lacks a deeper understanding of the legalities of international trade and is deficient in professional resources to devise sound and stable policies.
World markets have lost and regained trillions of dollars since the launch of global tariffs by the U.S. president on April 2, and the turbulent U.S. trade policy over the last two months has disrupted trade with its key trading partners.
Closer to home, Spain's consumer price inflation decelerated for the third consecutive month in May to 1.9%, according to the National Statistics Institute.
The slowdown in inflation was mainly driven by a steep fall in leisure and culture prices and an additional contribution by a sharp fall in transportation prices.
Germany's retail sales struggled to advance on a monthly basis in April, as consumers avoided large-ticket items, according to the latest data available from Destatis.
Monthly retail sales declined by 1.1% in April from the upwardly revised 0.9% increase in March, marking the first decline in four months.
Over the year, retail sales increase slowed to 2.3% from 3.3% in March, and the increase was driven by a 2.3% rise in food sales and a 2.6% increase in non-food sales.
Europe Indexes and Yields
The DAX index increased by 0.2% to 23,974.84, the CAC-40 index edged lower 0.3% to 7,757.64, and the FTSE 100 index advanced 0.4% to 8,754.84.
The DAX increased 0.8% and 7.3%, the CAC-40 index decreased a fraction and rose 2.7%, and the FTSE 100 index edged up 0.5% and 3.3% for the week and in May, respectively.
The yield on 10-year German bonds inched lower to 2.50%, French bonds decreased to 3.17%, the UK gilts moved down to 4.64%, and Italian bonds edged higher to 3.49%.
The euro decreased to $1.13; the British pound was lower at $1.34; and the U.S. dollar was higher and traded at 82.45 Swiss cents.
Brent crude decreased $0.13 to $63.22 a barrel, and the Dutch TTF natural gas was lower by €0.13 to €34.93 per MWh.
Europe Movers
Automobile stocks led decliners in Europe as investors estimated U.S. trade policy-related uncertainties are likely to persist.
Volkswagen Group decreased €95.28, Mercedes-Benz dropped 0.3% to €53.05, Stellantis NV added 0.4% to €9.10, and Renault SA eased 0.2% to €45.86.
Chemical companies traded lackluster amid worries that the Trump administration is looking for ways to impose additional tariffs on European shipments.
Sanofi SA dropped 5.7% to €86.73, BASF rose 1% to €43.04, Bayer AG gained 0.2% to €24.77, Novartis AG added 1.5% to CHF 94.08, and Sika AG inched up 0.8% to CHF 222.30.
European Markets Scale Higher May Amid Persistent Trade and Geopolitical Uncertainties
Bridgette Randall
30 May, 2025
London
Stock market indexes across Europe struggled to advance on the final trading day of May, as investors remained defensive amid persistent uncertainties surrounding the U.S. trade policy.
Benchmark indexes in Frankfurt, Paris, Milan, and London flatlined as a U.S. court reinstated global tariffs imposed by the Trump administration in less than 24 hours after they were deemed illegal by another court.
The rapid shift in the U.S. trade policy and rules reinforces the world view that the current administration lacks a deeper understanding of the legalities of international trade and is deficient in professional resources to devise sound and stable policies.
World markets have lost and regained trillions of dollars since the launch of global tariffs by the U.S. president on April 2, and the turbulent U.S. trade policy over the last two months has disrupted trade with its key trading partners.
Closer to home, Spain's consumer price inflation decelerated for the third consecutive month in May to 1.9%, according to the National Statistics Institute.
The slowdown in inflation was mainly driven by a steep fall in leisure and culture prices and an additional contribution by a sharp fall in transportation prices.
Germany's retail sales struggled to advance on a monthly basis in April, as consumers avoided large-ticket items, according to the latest data available from Destatis.
Monthly retail sales declined by 1.1% in April from the upwardly revised 0.9% increase in March, marking the first decline in four months.
Over the year, retail sales increase slowed to 2.3% from 3.3% in March, and the increase was driven by a 2.3% rise in food sales and a 2.6% increase in non-food sales.
Europe Indexes and Yields
The DAX index increased by 0.2% to 23,974.84, the CAC-40 index edged lower 0.3% to 7,757.64, and the FTSE 100 index advanced 0.4% to 8,754.84.
The DAX increased 0.8% and 7.3%, the CAC-40 index decreased a fraction and rose 2.7%, and the FTSE 100 index edged up 0.5% and 3.3% for the week and in May, respectively.
The yield on 10-year German bonds inched lower to 2.50%, French bonds decreased to 3.17%, the UK gilts moved down to 4.64%, and Italian bonds edged higher to 3.49%.
The euro decreased to $1.13; the British pound was lower at $1.34; and the U.S. dollar was higher and traded at 82.45 Swiss cents.
Brent crude decreased $0.13 to $63.22 a barrel, and the Dutch TTF natural gas was lower by €0.13 to €34.93 per MWh.
Europe Movers
Automobile stocks led decliners in Europe as investors estimated U.S. trade policy-related uncertainties are likely to persist.
Volkswagen Group decreased €95.28, Mercedes-Benz dropped 0.3% to €53.05, Stellantis NV added 0.4% to €9.10, and Renault SA eased 0.2% to €45.86.
Chemical companies traded lackluster amid worries that the Trump administration is looking for ways to impose additional tariffs on European shipments.
Sanofi SA dropped 5.7% to €86.73, BASF rose 1% to €43.04, Bayer AG gained 0.2% to €24.77, Novartis AG added 1.5% to CHF 94.08, and Sika AG inched up 0.8% to CHF 222.30.
Europe Movers: Stratec
Inga Muller
30 May, 2025
Frankfurt
Stratec SE traded up 4.5% to €26.75 after the Germany-based provider of technologies for in-vitro diagnostics and life sciences reported strong results in the fiscal first quarter of 2025.
Sales increased to €60.36 million from €53.89 million, adjusted EBIT surged to €5.36 million from €2.92 million, and earnings per share rose to 12 cents from 2 cents a year ago.
The company said demand and new co-operations for software solutions remained strong during the quarter, such as for product cybersecurity as well as for product lifecycle management.
Stratec estimated full-year sales at constant currency to grow in a low to medium single-digit percentage range, compared to €257.6 million, and adjusted EBIT margin of around 10% to 12%, compared to 13% a year earlier, respectively.
Europe Movers: Stratec
Inga Muller
30 May, 2025
Frankfurt
Stratec SE traded up 4.5% to €26.75 after the Germany-based provider of technologies for in-vitro diagnostics and life sciences reported strong results in the fiscal first quarter of 2025.
Sales increased to €60.36 million from €53.89 million, adjusted EBIT surged to €5.36 million from €2.92 million, and earnings per share rose to 12 cents from 2 cents a year ago.
The company said demand and new co-operations for software solutions remained strong during the quarter, such as for product cybersecurity as well as for product lifecycle management.
Stratec estimated full-year sales at constant currency to grow in a low to medium single-digit percentage range, compared to €257.6 million, and adjusted EBIT margin of around 10% to 12%, compared to 13% a year earlier, respectively.
U.S. Movers: Bath & Body Works, Best Buy, Burlington Stores, Costco, Foot Locker, GAP, Li Auto, Zscaler
Scott Peters
30 May, 2025
New York City
Bath & Body Works Inc. gained 0.3% to $28.68 after the personal care products retailer reported strong results in the fiscal first quarter of 2025.
Net sales climbed to $1.42 billion from $1.38 billion, net income jumped to $105 million from $87 million, and diluted earnings per share rose to 49 cents from 38 cents a year ago.
The company maintained its full-year guidance of 1% to 3% growth, compared to $7.31 billion, and diluted earnings per share between $3.25 and $3.60, compared to $3.61 a year earlier, respectively, inclusive of current tariff rates.
For the second quarter, the retailer estimated net sales to be flat to up 2%, compared to $1.53 billion, and diluted earnings per share between 33 cents and 38 cents, compared to 68 cents a year ago, respectively.
Best Buy Co. Inc. inched up 0.01% to $66.33 after the consumer electronics retailer reported lower sales in the fiscal first quarter of 2026.
Revenue edged down to $8.77 billion from $8.85 billion, net earnings dropped to $202 million from $246 million, and diluted earnings per share fell to 95 cents from $1.13 a year ago.
The company guided full-year revenue to be between $41.1 billion and $41.9 billion, compared to $41.5 billion, and adjusted diluted earnings per share between $6.15 and $6.30, compared to $6.37 a year earlier, respectively.
During the first quarter, the retailer returned $302 million to shareholders through dividends of $202 million and share repurchases of $100 million, and the company expects to spend approximately $300 million on share repurchases during fiscal year 2026.
Best Buy will pay its next quarterly cash dividend of 95 cents per share on July 10 to shareholders on record on June 19.
Costco Wholesale Corp. eased 0.4% to $1,004.99 despite the wholesale retailer reporting strong results for the fiscal third quarter of 2025.
Revenue increased to $63.20 billion from $58.51 billion, net income jumped to $1.90 billion from $1.68 billion, and diluted earnings per share rose to $4.28 from $3.78 a year ago.
Comparable sales edged up 5.7% in the quarter, and e-commerce sales surged 14.8%.
Excluding the impacts from changes in gasoline prices and foreign exchange, comparable sales increased 8%, and e-commerce sales were up 15.7%.
Zscaler Inc. surged 4.9% to $263.54 after the cloud security provider reported higher revenue in the fiscal third quarter of 2025, but net income swung to a loss.
Revenue edged up to $678.03 million from $553.20 million, net income swung to a loss of $4.12 million from a profit of $19.12 million, and diluted earnings per share swung to a loss of 3 cents from a profit of 12 cents a year ago.
The company guided fourth-quarter revenue to be between $705 million and $707 million, compared to $592.9 million, and non-GAAP net income per share between 79 cents and 80 cents, compared to 88 cents a year earlier, respectively.
For the full year, the cyber security company estimated revenue to be between $2.659 billion and $2.661 billion, compared to $2.168 billion, and non-GAAP net income per share between $3.18 and $3.19, compared to $3.19 a year ago, respectively.
The company expects non-GAAP income from operations in the fourth quarter to range between $152 million and $154 million, compared to $140.6 million, and for the full year, it will be between $573 million and $575 million, compared to $508.1 million in 2024, respectively.
Li Auto Inc. gained 0.7% to $28.70 despite the China-based electric vehicle maker reporting sharply lower net earnings in the fiscal first quarter 2025.
Revenue declined to 25.63 billion yuan from 44.27 billion yuan, net income slumped to 592.56 million yuan from 3.52 billion yuan, and diluted earnings per share fell to 0.28 yuan from 1.65 yuan a year ago.
The company delivered 92,864 vehicles in the quarter, an increase of 15.5% from 80,400 vehicles a year earlier.
Li Auto guided second-quarter revenue to be between 32.5 billion yuan and 33.8 billion yuan, an increase of 2.5% to 6.7% from 31.7 billion yuan a year earlier.
The company also expects to deliver between 123,000 and 128,000 vehicles during the second quarter, an increase of 13.3% to 17.9% from 108,581 vehicles in the previous year.
Burlington Stores Inc. traded flat at $227.80 after the off-price department store retailer reported strong results for the fiscal first quarter of 2025.
Revenue increased to $2.50 billion from $2.36 billion, net income jumped to $100.83 million from $78.51 million, and diluted earnings per share rose to $1.58 from $1.22 a year ago.
Comparable store sales were flat, at the midpoint of guidance, and on top of 2% last year.
The company repurchased 445,285 shares of its own stock for $105 million during the quarter, and $158 million remained under repurchase authorization.
In addition, the company’s board of directors authorized the repurchase of up to an additional $500 million, which is authorized to be executed through May 2027.
Burlington Stores guided second-quarter sales to increase between 5% and 7%, compared to $2.46 billion, assuming comparable store sales will be breakeven to up 2%, and adjusted earnings per share between $1.20 and $1.30, compared to $1.24 a year ago, respectively.
For the full year, the retailer estimated sales to grow between 6% and 8%, compared to $10.62 billion, assuming comparable store sales will be breakeven to up 2%, and adjusted earnings per share between $8.70 and $9.30, compared to $8.35 in the previous year, respectively.
GAP Inc. plunged 14.8% to $23.80 after the specialty apparel company failed to meet analyst expectations in the fiscal first quarter of 2025 and warned of tariff-related costs in the future.
Revenue increased to $3.46 billion from $3.39 billion, net income climbed to $193 million from $158 million, and diluted earnings per share rose to 51 cents from 41 cents a year ago.
Comparable sales were up 2% from a year earlier, and online sales increased 6%, representing 39% of total net sales.
Excluding the potential impact from imposed tariffs, the company guided full-year net sales to grow between 1% and 2% from $15.1 billion and net interest income to decline to $15 million from $25 million in the previous year, respectively.
Furthermore, GAP plans to close approximately 35 stores during 2025, after closing 56 stores last year.
For the second quarter, the retailer estimated net sales to remain flat year-over-year.
Foot Locker Inc. traded flat at $23.93 after the footwear and apparel retailer swung to a loss in the fiscal first quarter of 2025.
Total sales were down 4.6% to $1.79 billion from $1.87 billion, net income swung to a loss of $363 million from a profit of $8 million, and diluted earnings per share swung to a loss of $3.81 from a profit of 9 cents a year ago.
Comparable sales decreased 2.6%, with comparable sales in the North American region declining 0.5% and in the international segment they were down 8.5%, led by softness in Foot Locker Europe.
Dick's Sporting Goods Inc. has agreed to acquire Foot Locker for $2.4 billion.