Eyes on Earnings — Week of June 1, 2025
Heartbreaking: The “Nothing Really Happens” crowd was right again.
On Thursday, a US trade court struck down Trump’s tariffs, which have been top of mind since the President took to the White House Rose Garden in April. Not even 24 hours later, an appeals court stayed the biggest blow to his tariff aspirations, which threatened some of the $6T in promised revenues considered crucial to the “One Big, Beautiful Bill.”
Trump and the tariff dissidents might be going to the Supreme Court, but amid talk of the TACO trade, investors are hoping for tariffs to get toasted, with markets rising 2.24% last week on the revelations.
Turning a corner: It’s not just traders hoping that the tariffs will soon be bygones. On Wednesday, the Conference Board’s Consumer Sentiment survey showed an improvement in Americans’ views of the economy — the first boost in five months. The US-China trade deal was seen as a considerable ingredient in Americans’ change of heart on the economy. That’s helped stabilize markets where companies have been reluctant to withdraw or cut their guidance. Instead, investors appear to be leaning into optimism.
- The S&P 500 is now up 18% from its April lows — rewarding investors who ‘bet on nothing’ just a few weeks ago when tariffs looked existential and market-derailing.
- Last week alone, investors were particularly jazzed about positive reports from SalesforceCRM and a handful of retail names; seemingly disaffected by recent talk of uncertainty.
What’s On Deck?
Over the next few weeks, we can expect a slow trickle of earnings, with 124 reports expected, according to Nasdaq. Here are three to keep an eye on:
- CrowdStrikeCRWD will hope to shake a dearth of positive news out of the cybersecurity world, where reports from OktaOKTA and SentinelOneS disappointed some investors — expectations are low as the cloud-native platform recently announced layoffs.
- BroadcomAVGO, the newest entrant in the $1T club, will report on Thursday, offering another blockbuster report from the semiconductor business on the heels of a highly consequential beat from NvidiaNVDA last week.
- Budget chains Dollar GeneralDG and Dollar TreeDLTR have seen their customers siphoned away from increasingly competitive wholesale giants but will build on commentary from late last year on the state of low-income shoppers.
Honorable mentions: Reports from major athleisure player LululemonLULU, alcohol titan Brown Forman ($BF.B), and Vail ResortsMTN are also ones to watch, given their sensitivity to customer attitudes. In addition, SamsaraIOT, RubrikRBRK, and DocuSignDOCU will give more insight into the state of software.