Tuesday, April 22, 2025
Markets moved strongly back in Tuesday’s session, filling in many holes dug during Monday trading and previously. There were no economic prints out before the opening bell and no derogatory remarks regarding interest rates. There was a White House statement regarding upcoming trade deals, but as they were short on specifics, we won’t dwell on them.
The Dow blossomed +1016 points this spring day, +2.66%. Its day landed between the S&P 500’s +129 points, +2.51%, and the Nasdaq’s +429 points, +2.71%. Winning the day was the small-cap Russell 2000 at +50 points, +2.76%. Bringing the past two sessions together, we’re basically flat: -0.21% on the Dow, +0.10% on the S&P 500, -0.05% on the Nasdaq and +0.57% on the Russell 2000.
Q1 Reports After Market Close: Tesla & Intuitive Surgical
Tesla TSLA posted its sixth earnings miss in the past seven quarters, coming up -38.6% short after today’s closing bell: earnings of 27 cents per share was well shy of the 44 cents in the Zacks consensus, and 45 cents per share in the year-ago quarter. Revenues of $19.34 billion missed the $20.98 billion anticipated and $21.30 billion reported for Q1 a year ago. Automotive revenue fell -20% from a year ago.
The note to shareholders released minutes after the close depict a “revolutionary” strategy for advancing its Cybercab business, where volume production is expected sometime in 2026. For guidance, Tesla said it will be revisiting this for the full year, and we can expect numbers on this in the company’s Q2 statement.
It should be an interesting conference call. Tesla is in a completely unique position, as its CEO has spent the past 2+ quarters engaged in U.S. national politics and as the de facto head of the DOGE movement slashing federal workforces and dissolving agencies. His work has drawn scorn and protests; Tesla vehicles themselves have drawn vandalism. Damage to the Tesla brand is crystal clear — the question is: will Elon Musk address it in today’s call?
Check out the updated Zacks Earnings Calendar here.
Intuitive Surgical ISRG posted its ninth-straight earnings beat this afternoon, with the medical device innovator outpacing earnings by a solid dime to $1.81 per share (nicely ahead of the $1.50 per share reported in the year-ago quarter) on revenues totaling $2.25 billion, ahead of the $2.18 billion analysts were expecting. But, the country said, the outlook for the company gets worse if heavy tariff policy is carried out. Shares are down another -7% in late trading, adding to its -8% year to date.
What to Expect from the Stock Market Wednesday
Tomorrow is the biggest day of the week in terms of economic reports, though this is a pretty quiet week for such things. The most prominent of this data will be flash Services and Manufacturing PMI for April — expected to come in at 52.8 and 49.5, respectively. These estimates are both lower month over month, with Manufacturing expected to dig below the 50 line that determines growth versus loss.
New Home Sales for March are expected to turn up month over month, however. An estimate of 685K seasonally adjusted, annualized units would be a notable advance from the 676K reported the prior month. Also, a Fed Beige Book is expected to be released at 2pm ET tomorrow, giving details of economic growth in all regions of the Federal Reserve. Last time around, all 12 districts were in positive territory.
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Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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