Shesa's Weekend Stock Market Updates - 5/16/25

Friends, wishing all my readers a VERY HAPPY MEMORIAL DAY!!

The Stocks declined last Friday after President Donald Trump raised trade fears again, warning Apple  and recommending stiffer duties on the European Union. The Friday’s declines added to the market’s weekly losses. The S&P 500, DOW and NASDAQ - all lost more than 2.5% for the week. Some other facts which contributed to this downturn as indicated below. 

But just to remind that this week is going to be EXTREMELY important not only because of a few key economic report but the most IMPORTANT earnings of the quarter. Nvidia (NVDA) reports earnings on Wednesday, 5/28, after the close of the market. This would be the KEY and impetus for technology stocks. I am hoping for a good quarter but let's keep the fingers crossed.

  • The U.S. debt-and-deficit situation is bad and facing real prospects of getting worse, triggering a high-profile credit rating downgrade from Moody’s and another selling stampede in stocks and bonds.
  • President Donald Trump’s “big, beautiful” spending bill is instilling some fears that they may increase U.S debt despite the promise to cut spending. I will discuss more about the Tax bill some other time or in my next blog. 
  • April home sales dropped to the slowest pace for that month since 2009 as consumers faced high home prices and growing concern over the economy and employment.
  • Mortgage rates rose due to national debt concerns, with 30-year fixed at 6.94%.
Having said all the above, today (Sunday), Donald Trump tweeted that he agreed to extend the Tariff deadline for European Union (EU) to July 9 after being called by European Union president. In such market, pullbacks are good opportunities to accumulate great stocks that we were waiting being on the sidelines. This Is a positive news for the stock market.

EARNINGS
Palo Alto Networks (PANW) Q3 FY2025.
Small beat on both top and bottom line. Guidance was in-line with the analysts expectations. 
• Actual: EPS $0.80 vs. $0.77 expected; Revenue $2.29B vs. $2.28B expected.
• Guidance (Q4 FY2025): EPS $0.87-$0.89 vs. $0.87 expected; Revenue $2.49B-$2.51B vs. $2.49B expected.
My View: I like this company but expected better guidance. It may remain on a trading range and can be played to buy on dip and trim on the up.

Snowflake (SNOW) Q1 FY2026 
• Actual: EPS $0.24 vs. $0.21 expected; Revenue $1.04B vs. $1.01B expected.
• Guidance (Q2 FY2026): expects $1.035 billion to $1.04 billion in product revenue, while analysts were modeling $1.022 billion.
My View: Snowflake had a good earnings. The stock was up about 18% after the earnings. A good idea to take some positions the dip. 

Earnings to Watch this week
WED, 5/28: Nvidia (NVDA) - market mover, Salesforce (CRM).

Key ECONOMIC Report this week

TUESDAY, MAY 27: Consumer confidence

WEDNESDAY, MAY 28: Minutes of Fed's May FOMC meeting.

THURSDAY, MAY 29: Q1 GDP, Pending home sales.

FRIDAY, MAY 30: Personal Consumption Expenditure (PCE)


Other News

Reuter reported Sunday that, Nvidia (NVDA) is set to launch a new AI chipset for China amid U.S. export curbs, Reuters reported on Saturday, with mass production likely to begin as early as next month and cheaper version of Blackwell chip starting September this year. This is a good news. This Is a positive news for the stock market.


Elon Musk announce Saturday that he is back to spending 24/7 at work and sleeping in conference/server/factory rooms. I must be super focused on X/xAI and Tesla (plus Starship launch next week), as we have critical technologies rolling out.". I will keep an eye on Tesla stock. 


STOCKS to watch this week

NVDA, CRM, AVGO, META, TSLA, CRWV, NFLX, AVGO, SOXL, TQQ, Quantum Computing stocks which are on fire!


Have a great rest of the long weekend! 



Comments

Post a Comment

Popular Post

Shesa's August 2025 investment Blog

 By Shesa Nayak Welcome to Shesa’s Blog U.S. Stock Market Update   The U.S. stock market (Nasdaq and S&P) rallied to multiple record highs during the month of July 2025 with the S&P 500 went up about 3% and NASDAQ up about 3.7% for the month. After making multiple highs, all of a sudden there was a jolt in the stock market last Friday attributed to terrible job reports, and Trump’s tariffs concerns of August 7 deadline potentially increasing the reciprocal tariffs. We have entered into August followed by September which happens to be the worst month of the year for the stock market, hence we must be watchful to the market situation. Q2 Earnings We saw marathon of big tech companies earnings in last couple of week. Almost every company had a beat on top and bottomline with the exception of Tesla. Apple, Amazon, Google and Netflix came with good earnings. But the star performers in the large tech sector were META and Microsoft . The earnings season will continue fo...
Read more

Shesa's Stock Market Weekend Report - 7|20|25

U.S. Stock Market Weekly Summary Though last week was nothing exciting, S&P and Nasdaq made new highs. We are in the Q2 earnings season. Most of the key banks and financial institutions reported earnings last week. This week we will see two tech giants report their earnings . I am also expecting to see some trade deals this week. But let's glance through what happened last week. S&P 500 up 0.6% , closing at 6,296.79, hit record highs. Nasdaq was up 1.5% , closing at 20,895.66, fifth straight record high. DOW was up 0.1%, closing at 44,342.19. Market Drivers: Strong bank/tech earnings, 0.6% June retail sales rise, jobless claims at 221,000. GENIUS Act boosted crypto. Tariff threats (30% EU/Mexico, 25% Japan/South Korea) added volatility, eased by hopes of trade  negotiation. Sectors: Financials and Technology up; energy down 0.65%. So far this year, Nasdaq has gone up 8.2% and S&P 500 is up 7%, Economic Report last week The CPI/Inflation increased 0.3% for t...
Read more

Shesa's Weekend Update - 7|27|25

Welcome to my Weekend Updates! Stock Market Last week Last week, the S&P 500 was up 1.5% to close at 6,388.64, marking its 14th record close in  2025. The Nasdaq gained 1% , ending at 21,108.32, with its 15th record close . The Dow Jones Industrial Average rose 1.3%, settling at 44,901.92, just 0.25% shy of its December 4 peak. Tech and utilities led, fueled by strong earnings from Alphabet and robust economic data, despite tariff concerns. On July 22, 2025, the U.S. and Japan finalized a trade deal setting a 15% tariff on Japanese imports to the U.S., down from a planned 25%. Japan will invest $550 billion in the U.S.  Earnings last week and my View Google ( GOOG ) Revenue:  $96.43 billion vs. $94 billion. Earnings per share:  $2.31 vs. $2.18. Google Cloud revenue:  $13.62 billion   vs.   $13.11 billion, up 31% YOY. Google’s announcement of a $10 billion increase in its capital expenditure outlook, reaching $85 billion. It indi...
Read more