May 23, 2025
S&P futures were flat in early Friday trading following a mixed Thursday session where major indexes saw weekly losses of over 1%. Asian markets delivered a mixed performance, with Japan and Australia leading gains, while Mainland China lagged. European equities were little changed. In bonds, Treasuries firmed slightly with a bit of curve flattening, though they retreated from earlier highs. Commodities saw gold rise 1.0% and WTI crude gain 0.3%, while Bitcoin futures dipped 0.2%. The dollar index fell 0.6%, putting it on track for its first weekly decline in five weeks.
Key Themes:
Market attention remains focused on monetary policy, with the Supreme Court shielding the Federal Reserve from rulings that allow for the removal of officials at other agencies. This eased concerns about potential interference in the Fed’s independence. Trade developments were modest, with the US and China resuming dialogue after recent de-escalation and reports of Washington pressuring the EU for further trade concessions. Rate stabilization remains a point of focus amid rising deficit concerns and unwinding of the US exceptionalism trade narrative.
Economic data includes new home sales, expected to decline 4.7% in April after a 7.4% gain in March. Looking ahead, next week’s highlights include durable goods orders, consumer confidence, and core PCE inflation data, among others.
Company News:
- INTU: Post-earnings standout; Consumer segment strength drives better FY guidance.
- WDAY: Contract boosts inflate cRPO beat; flagged policy/tariff headwinds in education and international.
- ADSK: Beat expectations; no signs of macro weakness.
- ROST: Softer Q2 outlook, withdrawn FY guidance, tariff-driven profitability concerns.
- DECK: Declines tied to HOKA growth slowdown and lack of FY26 guidance amid tariff uncertainty.
- XRX: Dividend cut pressures stock.
U.S. equities were mixed in Thursday trading, with the Dow flat (0.00%), the S&P 500 edging up 0.04%, the Nasdaq gaining 0.28%, and the Russell 2000 up 0.05%. A late-afternoon selloff capped gains. Treasuries were firmer after Wednesday’s rate surge, with the 30-year yield retreating from a high of 5.15%. The dollar index rose 0.4%, reversing the prior session’s losses, while gold fell 0.6%, and Bitcoin futures gained 2.4%. WTI crude declined 0.6% following OPEC+ production discussions.
Economic Data:
- Initial Jobless Claims: Fell to 227K (vs. 230K consensus), while continuing claims increased to 1.903M, the highest since mid-April.
- PMI Data: May’s flash S&P Global Manufacturing PMI reached 52.3 (highest in three months), while Services PMI rose to 52.3. Both exceeded expectations, signaling modest improvement but highlighting tariff-driven cost pressures.
- Existing Home Sales: Dropped 0.5% month-over-month in April to 4M, missing the 4.1M consensus. Inventory levels reached their highest in nearly five years.
Key Themes:
Bond market volatility continues to dominate headlines, driven by sticky inflation, resilient economic data, and deficit concerns tied to the House-passed reconciliation bill. Tariff discussions remain in focus, with mixed signals from U.S.-Mexico talks and skepticism about labor cost feasibility. Oil weakness and upbeat trade deal prospects contributed to market stabilization, while earnings results fueled individual stock movements.
S&P 500 Sector Performance
- Outperformers: Consumer Discretionary (+0.56%), Communication Services (+0.32%), Technology (+0.12%).
- Underperformers: Utilities (-1.41%), Healthcare (-0.76%), Energy (-0.44%), Consumer Staples (-0.41%).
Consumer Discretionary:
- Nike (NKE): Reportedly raising prices on select products due to tariffs and resuming sales on Amazon for the first time since 2019. (+2.2%)
- Urban Outfitters (URBN): Strong Q1 earnings beat with standout performance from Anthropologie and Urban Outfitters; momentum expected to continue into Q2. Upgraded by JP Morgan. (+23%)
- Williams-Sonoma (WSM): Q1 EPS and revenue beat; reaffirmed FY26 guidance despite incremental tariff costs. (-4.9%)
- Advance Auto Parts (AAP): Beat expectations with narrower-than-expected comp declines; reaffirmed FY guidance. (+57%)
Communication Services:
- Google (GOOGL): DOJ launching an antitrust probe into AI chatbot agreements. Defeated Rumble’s antitrust lawsuit. (+0.5%)
- Match Group (MTCH): Tinder CEO to step down in July amid struggles to grow the segment. (-2.1%)
Information Technology:
- Snowflake (SNOW): Q1 revenue and product growth beat expectations; raised FY26 guidance. (+13.4%)
- IonQ (IONQ): CEO highlighted ambitions to dominate quantum computing, drawing comparisons to Nvidia. (+36.5%)
Healthcare:
- Humana (HUM): Weaker alongside peers after CMS announced expanded audits of Medicare Advantage plans. (-7.6%)
- Hims & Hers (HIMS): Declined as CI Health expands availability of weight-loss drugs through its services division. (-7.7%)
Industrials:
- Pitney Bowes (PBI): Announced a CEO transition and strategic review; shares rose on plans for share buybacks and potential dividend increases. (+9.5%)
- Dana Inc. (DAN): Upgraded by RBC Capital Markets on expectations for an off-highway deal. (+2.8%)
Financials:
- Fannie Mae (FNMA): Shares surged on reports that Trump is considering taking the GSE public. (+50.6%)
Energy:
- SunRun (RUN): Dropped sharply after the reconciliation bill proposed eliminating key tax credits for solar energy. (-37.1%)
Materials:
- Ralph Lauren (RL): Beat earnings expectations but warned of flat FY gross margins due to tariffs offsetting cost savings. (+1.2%)
Real Estate:
- Existing Home Sales: Missed expectations as higher mortgage rates and inventory pressures weighed on activity.
Eco Data Releases | Friday May 23rd, 2025
S&P 500 Constituent Earnings Announcements | Friday May 23rd, 2025
No constituents report today
Data sourced from FactSet Research Systems Inc.
