Thursday, May 29, 2025
Markets spent almost all day in the green this Thursday, save for a brief scare mid-day from the U.S. Court of Appeals, which ruled President Trump’s tariffs could be reinstated after a federal court ruled early this morning that the administration did not have the authority to install them. But the major indexes regained their footing on the session.
The Dow finished the session up +108 points, +0.26%, while the S&P 500 rose +0.40%. The Nasdaq did basically as well, +0,39% on the day, while the small-cap Russell 2000 grew +0.33%. Bond yields retreated through the course of the day, with the 10-year now at +4.42%, the 2-year +3.94% and the 30-year is +4.92%.
Pending Home Sales Posts Second-Worst April on Record
Home sales under contract, Pending Home Sales, sank -6.3% month over month for April in a report released earlier today. Expectations were for a drop of -1.0%, and followed a healthy +5.5% the previous month. The index came in at +71.3 overall, with the biggest monthly drops in the West (-8.9%) and the South (-7.7%). The Midwest and the Northeast also posted losses (-5.0% and -0.6%, respectively). Recall last week, New Home Sales for April surprised to the upside.
Quarterly Reports After the Closing Bell: COST, GAP, DELL & More
Discount club warehouse giant
Costco COST posted slight beats on both top and bottom lines for its fiscal Q3 report after today’s close. Earnings of $4.28 per share outperformed expectations by a solid nickel, on $63.2 billion in revenues which came in ahead of the $63.14 billion in the Zacks consensus, +8% year over year.
The company had a novel take on the tariff situation, which has wreaked havoc on many a retailer’s guidance. Costco said it may be in a position to benefit from tariffs, as the company provides goods in bulk orders. Costco bounced back from a fiscal Q2 miss in today’s print, and has now met or outperformed on earnings in eight of its last nine quarters. (You can see the full Zacks Earnings Calendar here.)
Shares of
The Gap GAP are tumbling -17% following its Q1 earnings report after the bell. The San Francisco-based retailer outpaced estimates on both top and bottom lines: 51 cents per share versus 40 cents expected, on $3.5 billion in revenues which surpassed the $3.42 billion analysts were expecting. Athleta posted a disappointing -8% growth year over year, and the parent company said that tariffs could cost the company $100-150 million, even after mitigating risk.
Dell Technologies DELL is seeing a positive reaction to its Q1 report this afternoon, despite missing on the bottom line. Earnings of $1.55 per share came up short of the $1.72 in the Zacks consensus, but still represented +17% growth from a year ago. Infrastructure Solutions was up +12% from the prior-year quarter, and the company raised full-year guidance. The stock has now swung to positive year-to-date.
Marvell Technology MRVL narrowly outperformed on top and bottom lines today after the close, with earnings of 62 cents per share beating by a penny, on $1.89 billion in revenues — a new record high — from the expected $1.88 billion. Marvell also boosted next-quarter guidance, as its Data Center grew +76% in the quarter. Shares are pushing slightly higher in after-hours.
Ulta Beauty ULTA follows e.l.f.’s earnings report yesterday with a strong beat on its bottom line: earnings of $6.70 per share versus expectations of $5.77, ands swinging to a positive year over year’s $6.47 per share. Revenues of $2.85 billion outpaced the $2.80 billion expected. The beauty supply giant also guided above consensus, despite uncertainty regarding consumer demand. Shares are blossoming +8% in late trading.
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Dell Technologies Inc. (DELL): Free Stock Analysis Report Costco Wholesale Corporation (COST): Free Stock Analysis Report Ulta Beauty Inc. (ULTA): Free Stock Analysis Report Marvell Technology, Inc. (MRVL): Free Stock Analysis Report The Gap, Inc. (GAP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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