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Episode Description
Generated finance podcast with host Dusty based on prompt: Finance and economic news from yesterday and today
Episode Transcript
Welcome to "Profit Insights," where we dissect the financial landscape and dig into the stories driving market movements. I'm your host, Dusty, guiding you through today's complexities with a calm and thoughtful approach. Let's dive right in.
Today's market saw the major U.S. indices taking a tumble on this Thursday, May 29, 2025. What's the cause of these shaky grounds? Economic uncertainties seem to be brewing from President Trump's tariff policies and the Federal Reserve's watchful eye. Investors grew cautious after the Fed's meeting minutes revealed a "wait-and-see" stance, pondering the potential dual blow of higher inflation and weaker growth due to tariffs.
Here's a quick snapshot of how the market was shaken today: The Dow Jones dropped by 0.6%, sliding nearly 245 points to around 42,098. The S&P 500 wasn't far behind, also down 0.6%, while the Nasdaq dipped 0.5%. Trading volume hit 15.60 billion shares, which fell short of its recent 20-session average. Notably, more falling stocks than risers marked both the NYSE and Nasdaq—a sure sign of investor wariness.
Today, fear had a name: the CBOE Volatility Index, climbing nearly 2% to 19.31. Utilities and discretionary stocks took some harsh hits—Edison International fell 3.5%, while Carnival Corporation slid 2.5%.
Let's shift gears and spotlight key corporate performances on Wall Street. Some companies managed to weather today's storm better than others. For instance, Abercrombie & Fitch delighted investors with a remarkable 14.7% boost after surpassing revenue expectations. The National Bank of Canada also impressed, with shares jumping 3.7% post-earnings report. Over at Capri Holdings, a 2.8% rise marked a pleasant surprise, beating revenue estimates.
On the other hand, Sociedad Química y Minera faced a tough day, plummeting over 4% for missing earnings expectations. Nvidia, while lifting its stock marginally with decent earnings, sent mixed signals due to the U.S. export restrictions on China.
Moving from companies to the big picture, President Trump's tariffs were at the forefront again. A court ruling shook up Wall Street's early energies but was tempered by an appeal from the administration. Tariffs continue to cast a long shadow—affecting GDP growth, increasing unemployment, and elevating average tariff rates to levels last seen in the late 60s.
Let's glance at economic indicators: GDP slightly improved to -0.2%, jobless claims were unexpectedly higher, and the GDP deflator, which watches inflation, stayed put at 3.7%. Currency movements also echoed unrest—the U.S. dollar slipped against a strengthening Euro and Japanese Yen.
Our old rival to traditional markets, Bitcoin, played its unpredictable game, initially rallying but then dipping below 106,000 dollars. Meanwhile, gold prices decided to take advantage of the weaker dollar, and U.S. oil prices reversed previous gains.
An exciting development in finance was the partnership between Zip and CardCash, a significant move in the Buy Now, Pay Later world, poised to take on the credit card titans as consumer debt surges.
Looking ahead, keep your eyes peeled as investors await significant economic releases due tomorrow—German CPI, U.S. Core PCE data, and Canada's GDP numbers make their debut. On the earnings radar, updates from Costco and Dell could provide fresh market insights.
And that's the wrap for today's episode of Profit Insights. Remember, through all the market noise: when the dust settles, only the truth remains. Thanks for tuning in. Until next time!
Supporting Data
**Market Performance:**
* The Dow Jones Industrial Average (DJI) fell 0.6%, or 244.95 points, to close at 42,098.70.
* The S&P 500 dropped 0.6%, or 32.99 points, to 5,888.55.
* The Nasdaq Composite lost 0.5%, or 98.23 points, to finish at 19,100.94.
* A total of 15.60 billion shares were traded, below the 20-session average of 17.7 billion.
* Decliners outnumbered advancers on the NYSE by a 2.79-to-1 ratio and on the Nasdaq by 2.04:1.
* The CBOE Volatility Index (VIX), a measure of market fear, rose 1.9% to 19.31.
* Utilities and discretionary stocks were the hardest-hit sectors. Shares of Edison International (EIX) fell 3.5% and Carnival Corporation & plc (CCL) dropped 2.5%.
**Company Earnings and Stock Movements:**
* **Abercrombie & Fitch Co. (ANF)** shares soared 14.7% after reporting first-quarter revenues of $1.09 billion, surpassing estimates.
* **National Bank of Canada (NTIOF)** shares jumped 3.7% after reporting second-quarter earnings of $2.00 per share, beating expectations.
* **Capri Holdings Limited (CPRI)** rose 2.8% after reporting fourth-quarter fiscal 2025 revenues of $1.04 billion, exceeding estimates.
* **Sociedad Química y Minera (SQM)** shares plunged 4.2% after its first-quarter earnings of 48 cents per share missed estimates.
* **Nvidia (NVDA)** saw its stock rise after its earnings narrowly beat Wall Street expectations, despite disappointing guidance due to U.S. export restrictions on China. The company's annual data center revenue growth of 73% was a positive sign for investors.
* **Best Buy (BBY)** fell 2.54% after beating earnings expectations and meeting revenue forecasts, but lowered its fiscal year guidance due to tariff impacts.
**Economic Indicators and Trends:**
* **Tariffs:** A U.S. Court of International Trade ruling invalidated many of President Trump's tariffs, injecting some initial vigor into Wall Street. However, the administration has stated it would appeal. The 2025 U.S. tariffs, along with foreign retaliation, are projected to lower real GDP growth by 0.2 percentage points over the calendar year 2025. The unemployment rate is expected to be 0.10 percentage point higher by the end of 2025, with 127,000 fewer payroll jobs. The average tariff rate is expected to be 7.0%, the highest since 1969.
* **GDP:** The second estimate of first-quarter U.S. Gross Domestic Product (GDP) inched up to -0.2%, slightly better than the initial estimate of -0.3%.
* **Jobless Claims:** Initial jobless claims rose to 240,000, about 10,000 above expectations.
* **Inflation:** The quarterly GDP deflator, an inflation monitor, was unchanged at 3.7%.
* **US Dollar:** The U.S. dollar weakened, with the DXY index dropping after the court ruling on tariffs. European currencies, including the Euro, Swiss Franc, and Japanese Yen, gained against the dollar.
* **Cryptocurrencies:** Bitcoin and other cryptocurrencies rallied. Bitcoin was up 1.3% but later extended losses, finishing below $106,000, down 1.92% on the day.
* **Gold:** Gold prices hit a one-week low following the tariff ruling but later recovered, benefiting from the weaker U.S. dollar.
* **Oil:** U.S. oil prices retraced gains from the previous day.
* **Buy Now, Pay Later (BNPL):** Zip is partnering with CardCash, allowing users to save on brands and use flexible payment options, positioning both companies to gain market share from traditional credit providers as U.S. credit card debt surpasses $1.2 trillion.
**Looking Ahead:**
* Investors are awaiting key economic data releases, including German CPI and U.S. Core PCE data, as well as Canada's Q1 GDP numbers, expected on Friday, May 30th, for further insights into the impact of tariffs and the Federal Reserve's potential policy direction.
* Costco and Dell are expected to release earnings after the market close.
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