The stock market rally rebounded this past week amid mixed Trump tariff news and Nvidia earnings. Nvidia stock broke out while Veeva Systems and Box gapped out of bases on earnings. But there were also some notable earnings losers. Treasury yields continued to retreat from recent highs.
Stock Market Rallies On Tariff News
The stock market rebounded in the latest week, fueled by President Donald Trump delaying 50% EU tariffs and then courts ruling that most of his tariffs are illegal. Trump on Friday accused China of violating a preliminary trade deal. Nvidia rose solidly on results. The Dow Jones is still hitting resistance at the 200-day line while the Nasdaq is pausing at recent highs, not far from all-time levels.
Nvidia Eases Investor Concerns
Nvidia reported better-than-feared fiscal first-quarter results and said demand remains strong for AI computers, even with the loss of China business due to U.S. trade restrictions. Nvidia's earnings grew 33% while sales soared 66% to $44.06 billion. Nvidia's data center revenue surged 73% to $39.1 billion. Nvidia stock hit a buy point on the news, but faded from weekly highs. Analysts said Nvidia put to rest concerns about a possible pause in data center spending and worries about Blackwell production issues. CEO Jensen Huang hinted at more AI data center customer announcements in the weeks ahead.
Market Rally At Key Levels; Five Stocks Near Buy Points
Inflation Data Tame
The Fed's favored inflation gauge, the core PCE price index, rose 0.1% rise in April, as expected. Core PCE inflation dipped to 2.5% vs. a year earlier, and the lowest since March 2021. Meanwhile, the University of Michigan's final consumer sentiment survey for May revised down inflation expectations. The one-year inflation expectations gauge fell to 6.6% from the preliminary 7.3% reading. The inflation expectations gauge over five-to-10 years was revised to 4.2% from 4.6%. Separately, initial jobless claims rose but stayed low while continuing claims trended higher, as the slow-to-fire, slow-to-hire trend continues.
Cybersecurity Stocks Diverge
Okta said Q1 EPS popped 32% while revenue climbed 12% to $688 million, both beating. The cybersecurity firm guided slightly higher on Q2 revenue. But Okta also kept full-year sales targets amid macroeconomic uncertainty and some customer caution. Shares plunged. Zscaler reported Q3 EPS grew 18% while revenue climbed 23% to $678 million and billings rose 25% to $784.5 million, all beating views. Zscaler guided slightly lower. Earlier in the week, Zscaler agreed to buy Red Canary, a provider of managed threat detection and response services. Shares jumped to a three-year high.
Salesforce Beats, But Stock Falls
Salesforce reported Q1 EPS grew 6% with revenue up 8% to $9.8 billion, both slightly topping. A key financial metric, current remaining performance obligations, known as CRPO bookings, topped views. The software giant guided up on Q2 and full-year revenue. But shares fell solidly.
Costco Retakes Buy Point
Costco reported a 13% EPS gain as revenue rose 8% to $63.2 billion, both slightly beating. Same-store sales increased 5.7%, just below estimates for 6%. Excluding gasoline, overall comparable sales increased 8%. U.S. same-store sales rose 6.6%. CEO Roland Vachris said that Costco has rerouted products, pulled forward summer items or sourced locally produced goods to help reduce tariff costs and ensure proper inventories. Costco rose back above a buy point Friday.
BYD Dives On China EV Price War
BYD plunged from record highs and below a buy point after slashing China prices by up to 34%. The EV giant is the low-cost producer and booming overseas sales carry higher margins, but the move will hit profits. Some other EV makers also cut EV prices. Handset-maker turned EV-maker Xiaomi drifted further below a buy point despite strong earnings. Li Auto rose on mixed results, near a buy point, with new all-electric models coming soon. XPeng reversed higher after announcing strong orders for its affordable Mona M03 Max variant that comes with advanced driver-assist systems.
Tesla rose above an aggressive early entry of 354.99, with shares continuing to gain momentum ahead of the limited robotaxi launch in Austin, Texas, which reportedly will start June 12. Also, CEO Elon Musk officially announced he was done working for the Trump White House.
Temu Parent PDD Badly Missed Views
Adjusted earnings decreased 44% while revenue grew 10% to 95.67 billion yuan, both well below Q1 views. PDD Holdings, parent of Temu and the China-based Pinduoduo retail site in China, said it was stepping up investments to support merchants and consumers against uncertainty. Trump tariffs have had a big impact on the e-commerce giant. PDD stock plunged.
Data Storage Firms Beat, Fall
Pure Storage and NetApp fell following earnings reports that exceeded expectations, but still left some concerns. Pure Storage's adjusted EPS sank 9% while sales grew 12% to $778.5 million. NetApp reported adjusted EPS up 7% while sales increased 4% to $1.73 billion, but it also guided low on revenue.
Stock Market News In Brief
Nutanix Q1 earnings rose 50% while revenue rose 22% to $639 million, both beating. Annual recurring revenue from subscription services rose 18% to $2.14 billion, slightly below views. The cloud-computing network management software maker guided slightly higher on Q2 revenue. Nutanix fell solidly from a buy point.
Box surged to highs after the cloud-based file sharing and storage company topped fiscal Q1 estimates. Adjusted earnings fell 23% while sales rose 4% to $276 million. Box also guided slightly higher for Q2 revenue. Bookings for the April quarter grew 27%, highlighting "customer demand for AI-driven intelligent content management and workflow automation," William Blair analysts said.
C3.ai reported a smaller-than-expected first-quarter loss while revenue grew 26% to $108.7 million, edging by estimates, boosted by professional services. Subscription revenue growth of 9% was down from the prior quarter's 22%. C3.ai announced a multi-year renewal and expansion of its joint venture agreement with Baker Hughes.
Heico reported a 27% EPS gain as revenue rose 15% to $1.097 billion, both beating fiscal Q2 views. The defense and aerospace parts manufacturer jumped out of a base
ELF Beauty reported a 47% EPS jump on a 4% revenue rise to $332.65 million, beating Q4 views. It'll also buy Rhode, Hailey Bieber's lifestyle and beauty brand, for $1 billion. Shares skyrocketed as federal courts struck down many Trump tariffs. The cosmetics company sources most of its wares from China.
Boeing hit a 15-month high after CEO Kelly Ortberg said 737 Max production is ramping up while China will resume accepting Boeing jet deliveries in June. A court ruling nixing many Trump tariffs also helped.
Veeva Systems earnings climbed 31% while sales rose 17% to $759 million, both comfortably beating views amid accelerating growth. The life-sciences-focused cloud computing company issued a bullish full-year outlook. Shares gapped out of a base.
Dell Technologies delivered mixed fiscal first-quarter results, but guided solidly higher than views for the current quarter. The computer maker said it is experiencing "unprecedented demand" for its AI-optimized servers. Dell stock rose.
Best Buy beat fiscal Q1 earnings estimates with a 4% drop on weaker-than-expected sales that fell 1%. The consumer electronics retailer also cut its full-year outlook to account for the Trump tariffs. Best Buy has 14 consecutive quarters of declining sales, largely due to its shrinking store count.
Synopsys topped fiscal second-quarter estimates. But the chip design software firm suspended its Q3 and full-year guidance after the Trump administration moved to block sales of electronic design automation tools in China. Synopsys and peer Cadence Design Systems fell on the export ban.
