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Breakfast News: Tariff Delay Reignites Stocks

May 27, 2025

Friday's Markets
S&P 500
5,803 (-0.67%)
Nasdaq
18,737 (-1%)
Dow
41,603 (-0.61%)
Bitcoin
$108,625 (-2.32%)
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1. Futures Up as Trump Extends E.U. Tariff Deadline

S&P 500 futures rose over 1.4% this morning following President Trump's statement that looming 50% tariffs on the E.U. – due to be imposed on June 1 – would be pushed back to July 9 following fresh trade talks.

  • E.U. ready with $108 billion of retaliatory tariffs if talks fail: The lead negotiator for the E.U. said good talks were held yesterday and that both sides would stay in contact.
  • "Negotiating trade deals with the U.S. is unlikely to go in a straight line and adds an element of risk for investors": Daniel Casali, chief investment strategist at Evelyn Partners, said the fast-changing nature of trade negotiations means investors should focus more on company fundamentals.

2. Next Up: OKTA, AZO, and HEI Kick Off Earnings

After the market closes, Stock Advisor recommendation Okta (OKTA 1.54%) will report quarterly earnings. Investors will be watching for continued growth in large enterprise customers, which helped to drive the earnings beat last time around. Since the April 2018 rec, the stock is beating the S&P 500 by 50%.

  • Import levies put pressure on aftermarket auto parts too: AutoZone (AZO -3.67%) is set to report before the opening bell, with any specific tariff-related headwinds likely being highlighted. Consumer demand via the change in same-store sales growth is also worth noting.
  • Beating earnings consensus every time for the past two years: HEICO (HEI 2.18%) releases earnings following the market close, with the company expected to keep the strong run going and post double-digit percentage growth in both revenue and earnings.

3. Coming Up: Nvidia Scales, Costco Expands

Arguably the highlight of this week, Nvidia (NVDA 3.07%) will post results after the market closes on Wednesday, with the production scale and revenue contribution from the Blackwell platform under scrutiny. Guidance for the coming year is important to see the extent of further potential scalability. The stock is up 24% versus the S&P 500 since the May 2024 Hidden Gems rec.

  • Continued expansion into international markets: Costco (COST 0.88%) is set to update the market on Thursday after the market closes. Membership retention rates remain a key metric, with the 90.5% global figure from last quarter the benchmark to compare against.
  • Inflation data unlikely to show tariff impact just yet: Thursday brings the preliminary reading for U.S. Q1 GDP, expected to show a 0.3% contraction. Friday offers the April data for the Federal Reserve's preferred inflation gauge, core Personal Consumption Expenditures (PCE). Consensus is for a 2.6% print, the same as the previous month.

4. Your Take

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