The stock market rally powered higher in the latest week, led by the Nasdaq, as President Donald Trump slashed China tariffs while Nvidia chip sales to Saudi Arabia propelled the broader artificial intelligence hardware space. Surging CoreWeave revenue also helped. UnitedHealth crashed on another medical cost warning and a reported criminal probe. Alibaba tumbled on an earnings miss. But Sea and Cisco Systems were earnings winners. Walmart topped on EPS, saying tariff price hikes are coming.
Stock Market Surges, Near Power Trend
The stock market had another big week, led by the Nasdaq on Trump tariff cuts and Nvidia-led AI excitement. The Nasdaq and S&P 500 blasted above their 200-day moving averages, both on the verge of entering power trends. The Dow Jones also climbed, to around its 200-day. A number of leading stocks broke out, though many are extended from their 50-day lines. The 10-year Treasury yield surged above 4.5% before backing off.
Economy Solid, Inflation Tame
Consumer and producer inflation showed a cooling trend, helped by easy year-earlier comparisons. Retail sales growth was modest in April, but March's huge gains were revised higher. The Philadelphia Fed manufacturing index was less negative in May. With President Trump slashing China tariffs, the looming hit to the economy may be blunted or at least short-lived. Odds for a Fed rate cut were pushed back considerably.
AI Stocks Rise On Saudi Deals
An artificial intelligence company backed by Saudi Arabia's Public Investment Fund signed deals with AI chip suppliers Nvidia and Advanced Micro Devices. The Saudi firm, Humain, intends to buy hundreds of thousands of advanced processors for AI data centers with a projected capacity of up to 500 megawatts over the next five years. Meanwhile, Super Micro Computer inked a deal to supply systems to DataVolt's hyperscale AI campuses in Saudi Arabia and the U.S. The deal is valued at more than $20 billion. Nvidia, AMD and Supermicro shares rose on the news, along with many other AI hardware plays.
CoreWeave Revenue Soars
Reporting earnings for the first time as a public company, CoreWeave reported a wider-than-expected Q1 loss but a 420% revenue gain to $981 million that handily beat Wall Street estimates. CoreWeave guided higher on full-year revenue, partly due to the Q1 beat. The cloud-computing provider, which uses Nvidia processors and is backed by the AI chip giant, forecast capital spending significantly higher than expected, due to new customer contracts.
Walmart Tops EPS Views, Expects Tariff Price Hikes
Walmart on Thursday reported a 2% EPS gain, slightly beating, while revenue grew 2.5% to $165.6 billion, a whisker below estimates. CEO Doug McMillon called the quarter "solid" and said Walmart is "well positioned" to navigate the near-term environment. The Dow Jones retailer sees Q2 sales up 3.5%-4.5% and reiterated its full-year guidance, with the midpoint slightly below consensus. CFO John David Rainey told CNBC that tariffs are "still too high" even with the recent rollbacks, saying it's "more than any retailer can absorb." He expects consumers to start seeing tariff-related price hikes later this month and "much more" in June. Shares initially plunged Thursday morning but slashed losses, holding a buy point.
China Internet Giants Mixed
Alibaba tumbled below a buy point and its 50-day line after the China tech giant missed on fiscal Q4 results, with EPS up 23% while sales increased 7% to $32.8 billion. Alibaba's cloud business grew 18%, helped by AI demand. Alibaba e-commerce rival JD.com beat top- and bottom-line forecasts with EPS and revenue growth both accelerating, to 48% and 15%, respectively. U.S.-listed shares gained following the report but fell for the week amid concerns about a food-delivery push. Also, WeChat parent Tencent posted an earnings beat, helped by strong sales for its gaming unit. Over-the-counter Tencent stock rose solidly, toward a buy point.
Sea Soars On Strong Earnings
Sea surged to its highest levels since early 2022 after reporting a first-quarter earnings beat. Sales were slightly below forecasts but still jumped 29.6% to $4.84 billion. The Singapore internet services company swung to a profit of 65 cents per share vs. a 4-cent loss a year earlier. Sea continued to improve the profitability of its Shopee e-commerce business and reiterated its guidance for gross merchandise value to rise 20% this year. Sea stock has rallied more than 50% in 2025.
UnitedHealth Dives On Warning, Probe
UnitedHealth Group plunged on another cost warning as well as a reported criminal probe. On Tuesday, the Dow insurance giant withdrew its already-slashed full-year earnings outlook after warning on accelerating medical costs for the second time in a month. UnitedHealth also announced the immediate resignation of CEO Andrew Witty. On Wednesday night, The Wall Street Journal reported that the Justice Department has been investigating UnitedHealth for possible Medicare fraud. Shares dived to a five-year low.
Aerospace
Loar Holdings reported a 400% EPS gain in Q1 with revenue up nearly 25% to $114.7 million, both beating views. Loar lifted its 2025 revenue guidance by $2 million, but the midpoint was still below FactSet expectations. The jet parts provider also said it will sell shares on behalf of existing holders. LOAR stock dived. Karman reported a 67% adjusted EPS gain on a 21% revenue rise to $100.1 million, both beating. Its funded backlog also was higher than expected. Karman maintained its 2025 revenue target. KRMN stock rallied to a record high. AST SpaceMobile reported a that was worse than expected while revenue fell well short. But it has five contracted satellite launches over the next six to nine months, with second-half 2025 revenue opportunities of $50 million to $75 million. ASTS stock climbed modestly for the week.
On Holding, Birkenstock Run Higher
On Holding rallied more than 20%, moving toward a buy point amid Trump tariff optimism, topping Q1 estimates and lifting its sales outlook. The Swiss athletic shoemaker said it saw "strong demand" throughout the quarter. Footwear sales jumped about 51%, while apparel revenue more than doubled. On Holding slightly raised its full-year revenue growth target to 28% growth for the year. That's up from its Q4 forecast for a 27% increase. ONON stock is working toward a 64.05 cup buy point. Birkenstock also edged past earnings and revenue views for its Q2 results Thursday. The sandal supplier said that unit sales grew by double digits while average selling prices for shoes climbed in the mid-single digits. Birkenstock now expects 2025 revenue at the high end of its previously announced forecast for 15%-17% sales. BIRK stock jumped more than 10% on the week to push toward a 62.66 cup entry.
Stock Market News In Brief
Deere earnings fell 22% while revenue sank 16% to $12.8 billion, both comfortably beating fiscal Q2 views. But the farm-equipment giant cut full-year net income targets. Shares rose to a new high, topping a buy point.
Exelixis rocketed to a record high Wednesday after the cancer-focused biotech reported better-than-expected results and raised its full-year revenue target. Q1 sales jumped 31% to $555.4 million, while adjusted earnings rocketed 417%.
Cisco Systems reported fiscal third-quarter earnings and revenue that topped estimates as new product orders continued to rebound amid growing artificial intelligence infrastructure demand. EPS rose 9% while revenue climbed 11% to $14.1 billion, another quarter of accelerating growth. Product orders increased 20%, or 9% excluding recently acquired Splunk. AI network infrastructure orders exceeded $600 million, up from $350 million in the previous quarter. For fiscal Q4, Cisco guided slightly higher. Mark Patterson, chief strategy officer, will replace Scott Herren as CFO as of July 27. Shares jumped, marking their best close since 2000.
Monday.com reported Q1 EPS up 80%, crushing views, while revenue beat with a 30% gain to $282.3 million. The maker of project management software predicted Q2 revenue roughly in line.
Dynatrace reported a 10% EPS gain with revenue up 17% to $445 million. Annual recurring revenue, or ARR, from subscriptions rose 15% to $1.734 billion. All three modestly beat. The network monitoring tool maker guided slightly higher for the full fiscal year.
CyberArk Software said adjusted Q1 EPS rose 30%, easily beating. Including acquisitions, revenue climbed 43% to nearly $318 million, also topping. The cybersecurity firm guided slightly higher on Q2 revenue.
MakeMyTrip beat fiscal Q4 EPS views with an 11% gain, but a 21% revenue rise to $245.5 million slightly missed. The India-focused online travel booking firm said it is seeing "sustained momentum" for domestic and international travel. Shares dipped following earnings but rose strongly for the week.
American Eagle Outfitters jumped for the week even though it released weak preliminary Q1 results and pulled its guidance. The apparel retailer expects an adjusted operating loss due to higher promotions and inventory write downs. Revenue fell 5% to $1.1 billion. CEO Jay Schottenstein said he was "disappointed" but added that American Eagle is entering Q2 in an improved position.
Doximity beat fiscal Q4 views with revenue up 17%. But the communications platform for medical professionals guided low on Q1 and fiscal 2026. Shares dived Friday.
Cava Group beat views, but a big tax benefit fattened profit while sales growth only narrowly beat at 28%. Same-restaurant growth topped at 10.8%, but fell sharply vs. 21.1% a year earlier. The Mediterranean-themed fast-casual chain upped full-year EBITDA targets, but below consensus. Shares fell.
Take-Two Interactive earned an adjusted $1.08 a share on net bookings of $1.58 billion in the March-ended quarter. Analysts had expected the video game publisher to earn an adjusted $1.10 a share on net bookings of $1.55 billion. Its June quarter guidance was similarly mixed. Take-Two stock fell Friday.
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