Profit Insights

Here's a summary of the financial news, market data, stock performance, and economic indicators from May 28, 2025:

**Market Movements & Stock Performance:**

* **US Stocks:** U.S. stocks generally drifted lower on May 28th, cooling down after recent gains. The S&P 500 fell by 0.6%, the Dow Jones Industrial Average also dipped by 0.6% (244 points), and the Nasdaq Composite slipped by 0.5%. Trading was relatively quiet as investors awaited key earnings reports, particularly from Nvidia. Despite the daily dip, the S&P 500 remained close to its record high. In after-hours trading, Nvidia's shares jumped 6.6% following its earnings release. The NASDAQ 100 After Hours Indicator was up.
* **Indian Markets:** The Sensex ended at 81,312.32, down 239.31 points, and the Nifty 50 declined to 24,752.45. The Indian rupee settled flat at 85.40 against the US dollar. On the BSE, 2,002 stocks advanced while 1,902 declined.
* **Global Markets:** Financial markets globally welcomed a U.S. court ruling that blocked President Donald Trump from imposing sweeping tariffs on imports under an emergency-powers law. U.S. futures jumped early Thursday (May 29th), and oil prices rose.
* **Specific Stocks:**
* **Nvidia (NVDA):** Reported strong first-quarter revenue growth and earnings that beat expectations after market close. Shares jumped in after-hours trading. Analysts had high expectations for the AI bellwether.
* **Salesforce (CRM):** Was also scheduled to report Q1 results after markets closed, with analysts expecting revenue growth driven by AI optimism.
* **Synopsys (SNPS):** Reported Q2 fiscal year 2025 revenue of $1.604 billion, exceeding guidance.
* **American Airlines (AAL):** Shares gained 4% due to delayed tariffs, strong travel demand, and declining fuel costs.
* **PDD Holdings (PDD):** Shares plummeted 13.6% after missing Q1 2025 earnings estimates.
* **Amazon (AMZN):** Shares gained 2.5% as mega-cap growth stocks rallied.
* **Champion Homes (SKY):** Shares plunged 16.4% after missing Q4 fiscal 2025 earnings estimates.
* **Elgi Equipments:** Recommended as a "buy" by The Hindu BusinessLine.
* **Juniper Hotels:** Reported a consolidated net profit of ₹54.95 crore for the quarter ended March 2025, and the stock soared 5.92%.
* **Kirloskar Electric Company:** Reported a standalone net profit of ₹6.65 crore for Q1 2025, and the stock rose 2.41%.
* **Abercrombie & Fitch (ANF):** Shares soared over 20% after reporting better-than-expected Q1 results.
* **Macy's (M):** Reported a smaller-than-expected decline in same-store sales.
* **e.l.f. Beauty (ELF):** Announced Q4 and full fiscal 2025 results, with net sales increasing 4% for the quarter. The company also announced a definitive agreement to acquire Rhode, a beauty brand founded by Hailey Bieber.
* **Microsoft (MSFT):** Market sentiment remained positive, driven by AI and cloud advancements. The stock closed at $460.69 on May 27th, a 2.33% increase.

**Company Earnings:**

* A significant number of companies reported earnings on May 28th.
* **Synopsys (SNPS):** Exceeded Q2 revenue and earnings guidance.
* **Nvidia (NVDA):** Beat Q1 revenue and earnings expectations.
* **Retail/Restaurant Index:** As of May 28th, 83% of companies in the LSEG Retail/Restaurant Index had reported Q1 2025 results. 64% beat EPS estimates, and the blended earnings growth estimate stood at 7.9%.
* **Dick's Sporting Goods (DKS):** Exceeded Q1 earnings expectations and announced the acquisition of Foot Locker.
* **Abercrombie & Fitch (ANF):** Reported a 4% increase in same-store sales for Q1 but lowered guidance citing potential tariff impacts.
* **Macy's (M):** Reported a -2% same-store sales result but saw positive comps in its Bloomingdale’s and Bluemercury divisions.
* **e.l.f. Beauty (ELF):** Reported a 4% increase in net sales to $332.6 million for Q4 fiscal 2025.
* Other companies scheduled to report included HP (HPQ), U-Haul (UHAL), Veeva Systems (VEEV), Salesforce (CRM), Agilent Technologies (A), Nutanix (NTNX), and C3.ai (AI).

**Economic Indicators & Financial Trends:**

* **Housing Market:** Citi Research warned that housing is now the top threat to the U.S. economy, with rising mortgage rates (near 7%) discouraging buyers and home sales, permits, and prices dropping. Commercial real estate values are also falling. Mortgage rates were mostly higher compared to the previous week.
* **Tariffs:** A U.S. court ruling blocked President Trump from imposing sweeping tariffs, a development welcomed by financial markets. The potential impact of tariffs on prices and the economy remains a concern, with the Fed watching closely.
* **China Economic Data:** The Conference Board Leading Economic Index (LEI) for China decreased by 0.3% in April 2025, signaling continued headwinds. However, recent agreements to de-escalate U.S.-China tariffs and monetary policy measures are expected to support growth.
* **Global Leading Indicators:** Various economic indicators were released or scheduled for May 28th, including construction data in Australia, unemployment figures in Germany, and the Corporate Bond Market Distress Index in the U.S.
* **Federal Reserve:** Investors were awaiting the release of FOMC meeting minutes. The Fed has been holding off on interest rate cuts due to inflation concerns, partly fueled by tariffs.
* **AI's Impact:** AI continues to be a major financial trend, significantly influencing stock performance (e.g., Nvidia, Microsoft) and company strategies. AI is also reshaping financial audits, with a move towards real-time or continuous auditing.
* **Microsoft Financials:** Microsoft's Q3 2025 (ended March 31, 2025) revenue grew 13% year-over-year, driven by its Intelligent Cloud segment (including Azure, which grew 33%).

**Key Themes for May 28, 2025:**

* Anticipation and reaction to major tech earnings, especially Nvidia.
* Ongoing concerns and developments regarding tariffs and their economic impact.
* The housing market showing signs of weakness and posing a potential risk.
* The continued strong influence of AI on market sentiment and company performance.

**Sources:**
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