Early Look

Thursday, May 29, 2025

U.S. futures are surging, adding to weekly gains following strong earnings print and guidance from AI semiconductor chip giant Nvidia overnight, boosting Nasdaq futures nearly 2%. Also adding to the stock market strength, a federal court struck down President Trump’s reciprocal tariffs in a ruling out Wednesday, saying global tariffs were deemed illegal and were blocked by the US trade court. This places most of the tariffs on an indefinite hold while the administration appeals the decision through the Supreme Court. S&P futures (Spuz) topped the 6,000 level overnight for the first time since March 3^rd before paring gains slightly but are still up over 1%. In Asian markets, The Nikkei Index jumped 710 points to 38,432, the Shanghai Index gained 23 points to 3,363, and the Hang Seng Index rose 315 points to 23,573. In Europe, the German DAX is up 73 points to 24,111, while the FTSE 100 slips -11 points to 8,714. Attention turns back to earnings this morning, especially in retail with COST, BBY, BURL, KSS among other results coming and also receiving fresh economic data, including weekly jobless claims and a revision of first quarter US gross domestic product (GDP) and PCE inflation data.

• The Dow Jones Industrial Average fell -244.95 points, or 0.58%, to 42,098.70
• The Nasdaq Composite dropped -98.23 points, or 0.51%, to 19,100.94
• The Russell 2000 Index declined -22.60 points, or 1.08% to 2,067.80

• 8:30 AM ET                  Continuing Claims…est. 1.894m
• 8:30 AM ET                  Gross Domestic Product (GDP) Q1 (2^nd estimate) …est. (-0.3%)
• 8:30 AM ET GDP Price Deflator for Q1 (prelim)…est. +3.7%
• 8:30 AM ET                  Consumer Spending for Q1 (prelim)…prior +1.8%
• 8:30 AM ET PCE Prices for Q1 (2^nd estimate) …prior +3.6%
• 8:30 AM ET                  Core PCE Prices for Q1 (2nd estimate) …est. +3.5%
• 10:00 AM ET                Pending Home Sales M/M for April…est. (-1.0%)
• 10:30 AM ET                Weekly EIA Natural Gas Inventory Data
• 11:00 AM ET                Weekly EIA Crude Inventory Data
• 1:00 PM ET U.S. Treasury to sell $44B in 7-year notes

• Earnings After the Close: AEO AMBA COO COST DELL ESTC GAP MRVL NGL NTAP PATH PD RRGB ULTA ZS

• Bitcoin Conference, 5/27-5/29, in Las Vegas, NV
• Deutsche Bank 15th Annual Global Financial Services Conference, 5/27-5/29 in New York
• Goldman Sachs 10th Annual Leveraged Finance and Credit Conference, 5/28-5/29, in CA
• Jefferies Technology Conference, 5/28-5/29
• TD Cowen, Technology, Media & Telecom Conference, 5/28-5/29
• Wells Fargo Semis Bus Tour, 5/27-5/29

• The bull-bear spread in the American Association of Individual Investors (AAII) weekly survey was -9 vs +1 last week. Bulls dropped to 32.9% from 37.7%, Neutrals dropped to 25.2% from 25.6%, Bears rise to 41.9% from 36.7%.

• Elf Beauty (ELF) Q4 adj EPS $0.78 vs est. $0.72, adj EBITDA $81.4Mm vs est. $74.5Mm on sales $332.6Mm vs est. $327.47Mm, gr mgn 71%; not providing FY26 guidance at this time due to wide range of potential tariff outcomes; says to acquire rhode for $1B.
• Hormel Foods (HRL) Q2 EPS $0.35 vs. est. $0.34 and Q2 sales $2.9B in-line with consensus; narrows FY25 adjusted EPS $1.58-$1.68 from $1.58-$1.72 (est. $1.60) and also narrows FY25 revenue view to $12B-$12.2B from $11.9B-$12.2B (est. $12.11B).
• MercadoLibre (MELI) said its fintech unit Mercado Pago will apply for a banking license from the central bank of Argentina. Mercado Pago said the move is aimed at expanding “service offering within its 100% digital model,” noting it was also part of a regional strategy already underway in other key markets such.

• Hess Midstream LP (HESM) 15M share Spot Secondary priced at $37.25.
• Nordson Corp. (NDSN) Q2 sales rose 5% y/y to $682.93M vs. est. $674M; Q2 net income $112.4M vs. est. $133.2M; Q2 pretax profit $138.77M vs. est. $157.6M; said backlog grew about 5% during quarter; Q2 EBITDA was $217M, or 32% of sales, an increase of 7% compared to prior year EBITDA of $203M, or 31% of sales; sees Q3 adjusted EPS $2.55-$2.75, vs. consensus $2.58.
• Triumph Group (TGI) Q4 adj EPS $0.48 vs. est. $0.36; Q4 revs $377.9M vs. est. $338M; Q4 adj Ebit $68.9M vs. est. $58.1M; said achieved 21% EBITDAP margins in its 12^th consecutive quarter of y/y sales growth.

• Royal Bank of Canada (RY) Q2 adjusted EPS C$3.12 vs. C$2.92 last year and Q2 revenue C$15.67B vs. C$14.15B last year; raises quarterly dividend 4% to C$1.54 per share; said plans to repurchase up to 35M common shares

• HCA Healthcare (HCA) upgraded to Equal Weight (tgt to $385 from $320) and Tenet Healthcare (THC) upgraded to Overweight in hospitals saying they are now more constructive on the group and sees policy risks as having receded following the House passage of budget reconciliation legislation.
• Taysha Gene Therapies (TSHA) announced details of its planned pivotal Part B trial design for TSHA-102 following written alignment from the FDA. Additionally, the company announced clinical data from Part A of the REVEAL Phase 1/2 adolescent/adult and pediatric trials evaluating TSHA-102 in Rett syndrome.
• Taysha Gene Therapies (TSHA) 46.9M share Spot Secondary priced at $2.75
• Veeva Systems (VEEV) Q1 adj EPS $1.97 vs est. $1.74, adj op Inc $349.9Mm vs est. $307.1Mm on revs $759.043Mm vs est. $732Mm; guides Q2 revs $766-769Mm vs est. $753.92Mm, adj op Inc $335-337Mm and adj EPS $1.89-1.90 vs est. $1.79; sees FY revs $3.09-3.1B, adj op Inc $1.36B and adj EPS $7.63 vs est. $7.30.

• Salesforce Inc. (CRM) Q1 adj EPS $2.58 vs est. $2.54 on revs $9.8B vs est. $9.748B, adj op mgn 32.3%; sees Q2 adj EPS $2.76-2.78 vs est. $2.73 and revs $10.11-10.16B vs est. $10.009B; sees FY adj EPS $11.27-11.33 vs est. $11.16 and revs $41.0-41.3B vs est. $40.819B with adj op mgn 21.6%.
• C3 AI (AI) Q4 EPS loss (-$0.16) vs. est. loss (-$0.20); Q4 revs $108.7M vs. est. $107.7M; Q4 Subscription revenue for the quarter rose 9% y/y to $87.3M as subscription revenue constituted 80% of total revenue for the quarter; sees FY26 revs $447.5M-$484.5M vs. est. $466.1M and op loss ($100M)-($65M) vs. ($324.4) y/y.
• HPQ Inc. (HPQ) Q2 EPS $0.71 vs. est. $0.80; Q2 revs rose 3.3% y/y to $13.22B vs. est. $13.12B; sees Q3 EPS $0.68-$0.80 below the consensus $0.91; ow expects 2025 adjusted EPS $3.00-$3.30 a share, below prior estimates of $3.45-$3.75 (and ests $3.56); says miss due to “added cost” from tariffs.
• Nutanix (NTNX) Q3 adj EPS $0.42 vs est. $0.38 on revs $639Mm vs est. $626Mm, adj gr mgn 88.2%, adj op mgn 7.6%; sees Q4 revs $635-645Mm vs est. $638.33Mm, adj op mgn 15.5-16.5%; sees FY revs $2.52-2.53B vs est. $2.511B and adj op mgn about 20.5%.
• Ooma Inc. (OOMA) Q1 adj EPS $0.20 vs est. $0.18, adj EBITDA $6.7Mm vs est. $6.22Mm on revs $65Mm vs est. $64.8Mm; sees Q2 revs $65.5-66.1Mm vs est. $66.08Mm and adj EPS $0.20-0.21 vs est. $0.18; sees FY revs $267-270Mm vs est. $267.66Mm and adj EPS $0.79-0.83 vs est. $0.76.
• Pure Storage (PSTG) Q1 EPS $0.29 vs. est. $0.25; Q1 revs $778.5M vs. est. $770.35M; sees Q2 revenue $845M, above consensus $841.13M as sees Q2 revenue y/y growth rate 10.6 %, non-GAAP operating income $125M, non-GAAP operating margin 14.8%; guides Fy26 revs $3.51B in-line with estimates.
• Sentinel (S) Q1 adj EPS $0.02 vs est. $0.02 on revs $229Mm vs est. $228.35Mm, adj gr mgn 79%; guides Q2 revs $242Mm vs est. $244.88Mm, adj gr mgn 79%; sees FY revs $996Mm – $1.001B vs est. $1.011B, adj gr mgn 78.5-79.5% and adj op mgn 3-4%.
• Synopsys (SNPS) Q2 adj EPS $3.67 vs. est. $3.40; Q2 revs $1.6B vs. est. $1.6B; reaffirming full-year 2025 revenue guidance, and non-GAAP operating margin guidance (after falling -9.64% on the FT story that President Trump orders US chip designers to stop selling to China).
• Paramount (PARA) has offered $15M to settle CBS Lawsuit, while the President’s team threatened another lawsuit amid settlement talks.