Earnings Are Pretty Strong. Why Are Investors Antsy?
10 minutes ago
Earnings have been strong. Not everyone’s happy about it.
Nearly three-quarters of S&P 500 companies had turned in first-quarter results through Friday, according to FactSet, which in a note last week said that earnings for the index as a whole are on track—based on a “blended” number that reflects numbers already reported and Wall Street’s expectations for those that remain—to rise nearly 13% year-over-year.
Still, some investors are wary. Investors have so far bid up shares of companies that have reported guidance better than the Street expected, according to Bank of America research, but companies have been rewarded less than is typical for stronger-than-expected results, and misses have been more harshly punished than in recent years.
The percentage of companies beating earnings estimates, meanwhile, is higher than the historical average, but that of sales beats is lower, Bank of America said.
Many companies are withdrawing forecasts entirely. One of the latest examples came today: engine maker Cummins (CMI), which cited uncertainty about the direction of Trump administration trade policy. (Other companies have taken another tack, offering up outlooks that take into account a range of economic scenarios.)
“Companies are getting nervous about the future—so much so that they’re pulling earnings forecasts in droves,” wrote Callie Cox, chief market strategist at Ritholtz Wealth Management, in a Monday email.
Even those that aren’t withdrawing forecasts are being cautious, Goldman Sachs analysts wrote last week, while observing that an above-average share of companies that have offered full-year guidance have kept previously issued numbers in place.
“We view this dynamic partly as a reflection of [companies’] hesitancy to shift guidance due to uncertainty around tariff policy,” they wrote. “For example, some companies noted in their earnings calls that their most recent guidance does not incorporate the impact of tariffs.”
That could spell trouble in the months ahead, especially if companies are spending now to get ahead of the effects of tariffs later.
“In our reading, a combination of pre-buying and inventory rundowns should give companies a buffer of about 1 to 2 months before the tariff impacts start to bite,” Deutsche Bank analysts wrote last week. “If sustained, we see the potential impact of the announced tariffs as large and likely to fall disproportionately on US companies.”
The bulk of the Magnificent Seven‘s results are in, with only Nvidia’s (NVDA) remaining. But plenty of closely watched reports are expected this week, among them numbers from Palantir (PLTR), Advanced Micro Devices (AMD), Walt Disney (DIS) and Coinbase Global (COIN).
Traders Pricing in Big Palantir Move After Earnings
53 minutes ago
Palantir Technologies (PLTR) is slated to report quarterly results after the market closes on Monday, and investors are positioning for a big stock move.
Options pricing suggests traders are expecting Palantir stock to move more than 12% in the days after Monday’s earnings report. A move higher of that magnitude would put Palantir stock at an all-time high of about $139, while a decline of the same size would drag shares down to about $108.
Palantir was the S&P 500’s best-performing stock last year when it rose 340%, and as of Friday’s close was the index’s top stock this year as well. Shares have risen more than 60% since the start of 2025, while the S&P 500 as a whole has declined a bit over 3%.
Palantir, an ascendant defense contractor, has benefited recently from both booming demand for artificial intelligence (AI) services and Washington’s new priorities. The U.S. government accounted for more than 40% of Palantir’s revenue in the fourth quarter, ostensibly making it vulnerable to President Trump and Elon Musk’s cost-cutting initiative. However, the company’s focus on AI and Trump’s desire to increase spending on immigration enforcement and the military are expected to be tailwinds for Palantir.
Jemal Countess / Getty Images / Jacob Helberg
Shares soared more than 20% after each of the company’s two most recent earnings reports. The company in both February and last November said strong demand for its AI platform drove quarterly revenue growth of 30% or more in the preceding quarters.
Wall Street expects Palantir to report revenue increased by 36% in the first quarter and adjusted earnings rose more than 60%, according to analysts who follow the company and are tracked by Visible Alpha. Though, due to the stock’s meteoric rise over the past year and a half, only one of those analysts recommends buying it at its current price.
Nonetheless, the company has developed a dedicated following of retail investors who have shown little interest in cashing out. According to analysts at Vanda Research earlier this year, Palantir is the third most popular stock among individual investors, behind only Nvidia (NVDA) and Tesla (TSLA).
Tyson Sinks as Sales Miss Estimates, Outlook Disappoints
1 hr 35 min ago
Tyson Foods (TSN) shares plunged Monday after the meat producer posted quarterly sales that missed analysts’ expectations and its outlook disappointed.
Tyson reported $13.1 billion in sales during the second quarter, roughly in line with its performance a year earlier and slightly below the consensus estimate compiled by VisibleAlpha. Sales volumes for nearly all types of protein except for chicken fell year-over-year, as prices rose for most categories.
Executives said on the company’s earnings call that sales would have grown as expected if not for the roughly $340 million Tyson set aside to cover an antitrust investigation settlement related to allegations of price-fixing in the pork industry, according to a filing with the Securities and Exchange Commission.
Tyson’s adjusted earnings per share of $0.92 rose from $0.62 a year ago, topping analysts’ projections.
The Arkansas-based company said it expects sales for the full fiscal year to come in flat to up 1% from 2024. Analysts were looking for about 0.8% growth, near the higher end of that range, according to Visible Alpha.
Tyson shares were down 7% in recent trading, dragging them into negative territory for the year.
Skechers Soars on $9.4B Deal to Go Private
2 hr 40 min ago
Skechers (SKX) shares skyrocketed Monday after the lifestyle shoe manufacturer agreed to be taken private by investment firm 3G Capital for approximately $9.4 billion.
The deal pays Skechers investors $63 for every share they own, a 27.6% premium over the stock’s closing price on Friday. In addition, shareholders have the option of receiving $57 per share plus “one unlisted, non-transferable equity unit (the “LLC Unit”) in a newly formed, privately held company that, following the closing of the transaction, will be the parent company of Skechers (the “New LLC”).”
“We believe this partnership will support our talented team as they execute their expertise to meet the needs of our consumers and customers while enabling the Company’s long-term growth,” said current Skechers CEO Robert Greenberg.
As part of the agreement, Skechers will continue to be run by Greenberg along with President Michael Greenberg and the current executive team. Skechers headquarters will remain in Manhattan Beach, Calif., where the firm was founded.
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Skechers shares were up about 25% in midday trading Monday. Despite today’s jump, the stock remains down about 8% so far in 2025.
Oil Prices Tumble as OPEC+ Agrees to Boost Output
3 hr 59 min ago
Oil prices dropped Monday, as the Organization of the Petroleum Exporting Countries and its allies agreed to boost output again in June, raising concerns about a potential oversupply at a time when markets are grappling with the uncertainties of a global trade war.
Over the weekend, OPEC+, a grouping led by Saudi Arabia and Russia, agreed to add 411,000 barrels a day next month. That decision came after the group last month agreed to add 411,000 barrels a day “equivalent to three monthly increments,” essentially speeding up its program of unwinding its output cuts.
In early March, the group affirmed plans to gradually increase crude production beginning in April, ending a voluntary program it started almost two years ago to prop up oil prices. The group had a policy of voluntary production cuts of 2.2 million barrels per day (B/D).
Brent crude futures were recently at $59.90 per barrel, while West Texas Intermediate futures, the U.S. benchmark, were at about $56.80, both down more than 2%.
The S&P 500’s energy sector index was down 1.5%, the biggest decline of any sector in the benchmark index on Monday morning.
Media Stocks Drop on News of Tariffs on Foreign-Made Films
4 hr 50 min ago
President Donald Trump said he has authorized a 100% tariff on movies made overseas, blindsiding the movie industry and media giants as he took his tariffs war beyond levies on the import of physical goods into the country.
The announcement, made by the president Sunday on his Truth Social platform, was hitting shares of media giants like Walt Disney Co. (DIS) and Netflix (NFLX) Monday morning. Shares of Disney, which reports quarterly results Wednesday, were trading down 1%, while those of Netflix were 3% lower in early trading. Warner Bros. Discovery (WBD) and Paramount Global (PARA) were each down more than 1%.
The president called tax incentives that lure production of American movies overseas a “national security threat” in a Truth Social post on Sunday and said the tariffs on all movies produced in “foreign lands” would take effect immediately. Many American movies and TV shows are made in Canada and the U.K., both of which offer tax incentives, among other places.
“The Movie Industry in America is DYING a very fast death,” Trump said. “Other Countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States. Hollywood, and many other areas within the U.S.A., are being devastated.”
“WE WANT MOVIES MADE IN AMERICA, AGAIN!” he concluded in his post, which did not name specific companies.
Netflix and Disney didn’t immediately respond to requests for comment. Industry executives were reportedly surprised by the announcement, not least because it was unclear what exactly the tariffs would entail.
The movie industry “generated a positive balance of trade in every major market in the world,” according to the Motion Picture Association latest economic impact report.
Berkshire Hathaway Levels to Watch as Buffett to Step Down
5 hr 58 min ago
Berkshire Hathaway (BRK.B) shares fell in premarket trading Monday after legendary investor Warren Buffett said on Saturday at the conglomerate’s annual meeting that he plans to step down as CEO at the end of this year.
The 94-year-old Buffett, who has headed the company for 60 years, said he will hand over the reins to Vice Chairman Greg Abel, who has long been identified by Berkshire as Buffett’s successor. Buffett’s retirement marks the end of an era that has cemented his place as an investment icon and American success story after transforming a faltering textile company into a trillion dollar conglomerate with successful businesses across many sectors.
Berkshire shares had climbed to a fresh record high on Friday before Buffett’s announcement on Saturday. As of last week’s close, the stock has gained 19% since the start of the year and trades 35% higher over the past 12 months. By comparison, the benchmark S&P 500 has lost 3% and added 11%, respectively, over the same periods.
Berkshire shares broke out above the upper trendline of an ascending triangle in Friday’s trading session, potentially setting the stage for a continuation move higher.
Meanwhile, the relative strength index (RSI) confirms bullish price momentum with a reading above the 50 threshold, though the indicator sits below overbought levels.
Measured move and bars pattern upside targets on Berkshire’s chart sit at $585 and $606, while crucial support levels lie at $519 and $490.
The stock was down about 3% at $524 ahead of Monday’s opening bell.
Major Index Futures Move Lower
6 hr 18 min ago
Futures tied to the Dow Jones Industrial Average were down 0.6%.
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S&P 500 futures were off 0.8%.
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Nasdaq 100 futures dropped 1%.
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Source: Dow Jones Today: Stocks Hover Near Unchanged as Dow, S&P 500 Aim to Extend Winning
