Tariff Talk Returns to Sink Markets; Plus Q1 Earnings

Tuesday, May 6, 2025

Market indexes didn’t spend a second in the green today, dropping in the final minutes of the trading day from levels more or less where they were when the opening bell sounded this morning. The Dow slid -389 points, -0.95%, while the S&P 500 was 43 points, -0.77%. The Nasdaq fell another -154 points today, -0.87%, while the small-cap Russell 2000 lost -21 points, -1.05%.

President Trump’s return to tough tariff talk has informed today’s market sentiment. The president met with Canada’s newly elected Prime Minister Mark Carney, and both men were clearly pursuing separate programs. Trump was also interested in talking up new tariffs on pharmaceuticals imported to the U.S.
 

Q1 Earnings After the Close: AMD, WYNN & RIVN

No sooner did the closing bell ring today than companies resumed heavy volume of quarterly earnings reports. Advanced Micro Devices AMD kept its long 5+-year positive earnings surprise string intact, posting a 3-cent beat to 96 cents per share. Revenues were notably stronger than the Zacks consensus: $7.44 billion versus $7.12 billion projected. Forward revenue guidance for the current quarter was raised to $7.4 billion (the Zacks consensus had expected $7.35 billion). See the Zacks Earnings Calendar here.

Wynn Resorts WYNN came up short of estimates on both top and bottom lines this afternoon, reporting earnings of $1.07 per share which missed the $1.22 estimate. Revenues of $1.7 billion was narrowly shy of the $1.73 billion. The company announced a share buyback program, but health in the Chinese economy would help Wynn’s Macau business, while tariff concerns are muddying the waters for Wynn’s domestic locations.

EV upstart Rivian Automotive RIVN posted a much narrower bottom line than had been anticipated: -41 cents per share versus expectations of -80 cents. Revenues of $1.24 billion swung to a positive year over year and easily surged past the $1.02 billion estimate. Gross Profit of $206 million in the quarter put the company in good stead with Volkswagen, which has invested in Rivian. Shares are flat in late trading.

What to Expect from the Stock Market Tomorrow

Tomorrow morning brings us fiscal Q2 earnings of The Walt Disney Co. DIS, where the underperforming entertainment conglomerate is expected to fetch -2.48% earnings growth on +4.77% top-line growth. Its Parks division will draw high interest, as may its film company’s first big hit film of the year, “Thunderbolts.” Shares are down -17% year to date.

The latest Federal Open Market Committee (FOMC) meeting ends tomorrow, with a 1pm ET release on a change in interest rate levels (spoiler alert: there won’t be one) and a full press conference with Fed Chair Jerome Powell directly afterward. We expect Powell to field questions about a timeline for lowering rates and the possibility of being replaced before his term ends in 2026.

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