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Overall, first-quarter earnings for the S&P500 are expected to have climbed by +8.0% from the year-earlier period, according to LSEG IBES, with the fallout from tariffs likely to be a major topic for companies.
Focus will also be on the Consumer Price Index (CPI) report for March due Thursday, April 10th. Investors are looking to see if U.S. inflation is moderating enough to allow the Fed to continue cutting rates.
(2) U.S Recession Worry Builds, After the April 2nd Trump Tariffs.
Trump's tariffs have panicked investors, who now believe a U.S. recession could happen, jettisoning U.S. stocks in one of the most aggressive sell-offs in the past 30 years and hunting for safe-haven gems.
The U.S. dollar has typically been the shelter of choice. But the extent of the fear over what damage the tariffs might do to the U.S. economy and the U.S. administration's increasingly isolationist tendencies has left the dollar in the dust.
Gold, the Japanese yen and the Swiss franc have all soared along with Treasury prices.
Not content with turning the world order on its head, Trump & Co. are turning markets on their head, too — and investors are having to find new ways to play it.
(3) What Trade Retaliation, Against U.S. Tariffs, is In Store?
Global markets have felt the impact of "Liberation Day;” now they have to brace for what many are already calling "Retaliation Day" from trade partners in response to the highest U.S. tariffs in over a century.
Signs of that may come during this week and beyond. The next steps from the European Union and China are especially in focus.
The EU is expected to pursue a phased approach that leaves space for negotiations to deescalate tensions. China, which reacted immediately when the U.S. imposed 10% tariffs just weeks ago, has not acted... yet.
For market watchers, it's pretty straightforward — the stronger the retaliation to U.S. tariffs, the higher the chances the world economy lurches into recession and keeps investors away from risk assets.
(4) Facing Huge New U.S. Tariffs, Factory Troubles Surge Across Asia.
"Factory Asia" has taken a particularly large hit from Trump’s new tariffs.
Six of the nine Southeast Asian countries on Trump's list face tariffs between 32% and 49%. Sri Lanka, which is clawing back from its worst economic crisis in a generation, took a painful 44% hike.
The news sent Asian currencies plunging – and Sri Lanka's sovereign dollar bonds to their lowest since last year's debt restructuring.
Investors expect Asia's central banks to counter the hit. Thailand's central bank has already said it's ready to manage tariff-induced volatility.
For Sri Lanka, it's trickier; the U.S. typically takes around 40% of its apparel exports, which brought in a net $1.9 billion last year – its second-biggest source of foreign currency.
Yohan Lawrence, Secretary General of Sri Lanka's Joint Apparel Association Forum said the situation “must be addressed as a matter of national urgency.”
(5) On Thursday, Mainland China Consumer Price Inflation (CPI) Data Comes Out.
Chinese inflation data is due on Thursday, and investors will be hoping households in the world's second-largest economy showed more willingness to spend in March after February's dismal consumer price index reading.
The figures come on the heels of China's State Council's "special action plan" reveal last month, featuring measures such as increasing residents' income and establishing a childcare subsidy scheme to boost domestic consumption.
While recent economic data in the country has turned more favorable and Chinese stocks continue to find themselves more buyers, persistent deflationary pressures remain a huge drag.
Trump's tariffs are also complicating matters for Beijing in its quest to mount a solid recovery.
In other news, a rate decision from the Reserve Bank of New Zealand (RBNZ) is due on Wednesday, where expectations are for yet another rate cut as policymakers seek to revive a struggling economy.
Zacks #1 Rank (STRONG BUY) Stocks
(1) Veeva Systems (VEEV - Free Report) : This is a $221 a share stock, with a market cap of $36.9B. It is found in the Medical Info Systems industry. I see a Zacks Value score of F, a Zacks Growth score of F, and a Zacks Momentum score of C.
Image Source: Zacks Investment Research
Headquartered in Pleasanton, CA, Veeva Systems Inc. offers cloud-based software applications and data solutions for the life sciences industry.
The company’s product portfolio includes Veeva CRM (customer relationship management), Veeva Vault (content and information management), Veeva Network (customer master and product data management) and Veeva data services (Veeva OpenData and Veeva KOL data).
Veeva CRM is the company’s flagship product and runs on Salesforce.com’s SaaS platform.
The contract between Veeva and Salesforce.com extends till 2025.
In May 2023, Veeva unveiled Vault CRM, built on the Veeva Vault Platform. It has the full functionality of Veeva CRM and significant new innovations, including two new applications CRM Bot and Service Center.
Veeva Systems has also released its advanced Veeva Commercial Cloud offering, Veeva CRM Engage Webinar, at the Veeva Commercial Summit Europe
Veeva Systems also released Veeva Vault PromoMats Brand Portal — a new digital asset management capability that helps brand managers create portals, organize and showcase content within Veeva Vault PromoMats
Veeva Systems has also announced the availability of the whole suite of commercial data products from Veeva Compass Suite for a more comprehensive understanding of patient groups and HCP-level information
FY25 at a Glance
For fiscal 2025, VEEV registered total sales of $2.75 billion, up +16% year over year. VEEV reported adjusted earnings per share of $6.60 for fiscal 2025, up +36.4% compared with fiscal 2024.
Subscription Service revenues were $2.28 billion (83.2% of net sales, up +20% from fiscal 2024), while Professional services and other revenues grossed $461.9 million (16.8%, down- 0.03%)
(2) Societe Generale Group (SCGLY - Free Report) : This is a very cheap $8.50 a share French bank stock, with a market cap of $35.5B. It is found in the Foreign Bank industry. I see a Zacks Value score of A, a Zacks Growth score of D, and a Zacks Momentum score of C.
Image Source: Zacks Investment Research
Societe Generale FR Group is the sixth largest bank in the Eurozone.
Its business mix is structured around three core businesses: Retail Banking, Asset Management and Private Banking, Corporate and Investment Banking.
The Group is implementing a sustainable growth policy based on the selective development of its products and services, a client-focused culture of innovation in its different markets, and sustained organic growth coupled with acquisitions.
(3) Baidu (BIDU - Free Report) : This is a $90 a share Mainland China stock, with a market cap of $32.2B. It is found in the Internet Services industry. I see a Zacks Value score of A, a Zacks Growth score of C, and a Zacks Momentum score of B.
Image Source: Zacks Investment Research
Baidu, Inc., formerly Baidu.com, Inc. is a Chinese-language Internet search provider and is based in Beijing, the People's Republic of China.
The company offers a Chinese language search platform and conducts its operations principally through Baidu Online Network Technology Co., Ltd., a network of third-party Web sites and software applications.
Further, the company offers Japanese search services, including Web search, image search, video search, and blog search capabilities.
It also offers online marketing services to its customers directly and through other distribution networks.
Key Global Macro
The U.S. Consumer Price Inflation report for March is the major macro print.
On Monday, Mainland China FX reserves for March come out. The prior reading is $3.2T.
Euro Area retail sales for FEB come out. The prior annual (y/y) reading was +1.5%.
On Tuesday, the U.S. NFIB Small Business Optimism Index comes out for MAR. I see a 100.7 prior reading. What happens here, after the latest Trump tariffs? Ouch.
On Wednesday, the Reserve Bank of New Zealand (RBNZ) likely cuts is policy rate to 3.5% from 3.75%.
The latest U.S. FOMC meeting minutes come out.
On Thursday, Mainland China’s CPI for MAR comes out. I see a -0.7% y/y prior reading. Yes. That spells out a modest deflation underway here.
The U.S. CPI for MAR also comes out. I see a +2.8% y/y prior reading here. Ex-food & energy in the prior reading was +3.1% y/y.
On Friday, we get the preliminary U of Michigan Consumer Expectations Index for APR. I see a poor 57 prior reading is already in hand.
Conclusion
On April 2nd, 2025, Zacks Research Director Sheraz Mian offered up his latest four key Q1-25 earnings season points.
Here are his key Q1 points:
(1) Zacks expects total Q1-25 earnings for the S&P500 index to be up +5.9% from the same period last year, on +3.9% higher revenues.
This would follow the +14.1% earnings growth, on +5.7% revenue growth in the preceding period.
(2) Q1-25 earnings estimates have steadily come down since the quarter got underway.
The current +5.9% expected growth pace is down from +10.4% -- at the start of January 2025.
(3) Look at the calendar year picture.
Zacks expects total S&P500 earnings to grow by +9.6% in 2025.
12 of the 16 Zacks sectors expect to produce positive earnings growth.
Sectors with double-digit earnings growth this year include:
Aerospace (+53.3%)
Consumer Discretionary (+19.4%)
Medical (+17.2%), and
Tech (+12.1%)
(4) For the Mag 7 group? Total 2025 earnings are expected to increase by +12.6%, on +9.3% higher revenues.
Exclude the Mag 7 contribution? Total earnings for the remaining S&P500 companies are expected to grow +8.7% in 2025.
This compares to +4.0% growth in 2024 and -5.1% in 2023.
That’s it for me.
Enjoy a productive week, trading and investing.
Warm regards,
John Blank, PhD. Zacks Chief Equity Strategist and Economist
See More Zacks Research for These Tickers
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The First Q1 Earnings Land: Global Week Ahead
What to look out for in the Global Week Ahead?
Global investors have yearned for clarity over President Trump's tariffs.
But now they have it, and don't much like what they see.
As part of his "Liberation Day" on April 2nd, Trump slapped hefty tariffs on major trading partners, plunging markets into turmoil.
This happened just as investors parse through the first new quarterly earnings, along with Chinese inflation data.
Traders are waiting for the rest of the world to respond.
Next are Reuters’ five world market themes, re-ordered for equity traders—
(1) On Friday, the First Q1-25 S&P500 Earnings Report Hit the Tape.
A crucial quarterly reporting season for U.S. companies kicks off in the coming week, led by results from several major banks.
Investors will be hoping strong earnings can revive enthusiasm for stocks on the heels of the worst quarterly performance for the S&P 500 since 2022.
JPMorgan (JPM - Free Report) , Wells Fargo (WFC - Free Report) , and Morgan Stanley (MS - Free Report) , are among those reporting on April 11th. Delta Air Lines (DAL - Free Report) and Corona beer maker Constellation Brands (STZ - Free Report) also post results.
Overall, first-quarter earnings for the S&P500 are expected to have climbed by +8.0% from the year-earlier period, according to LSEG IBES, with the fallout from tariffs likely to be a major topic for companies.
Focus will also be on the Consumer Price Index (CPI) report for March due Thursday, April 10th. Investors are looking to see if U.S. inflation is moderating enough to allow the Fed to continue cutting rates.
(2) U.S Recession Worry Builds, After the April 2nd Trump Tariffs.
Trump's tariffs have panicked investors, who now believe a U.S. recession could happen, jettisoning U.S. stocks in one of the most aggressive sell-offs in the past 30 years and hunting for safe-haven gems.
The U.S. dollar has typically been the shelter of choice. But the extent of the fear over what damage the tariffs might do to the U.S. economy and the U.S. administration's increasingly isolationist tendencies has left the dollar in the dust.
Gold, the Japanese yen and the Swiss franc have all soared along with Treasury prices.
Not content with turning the world order on its head, Trump & Co. are turning markets on their head, too — and investors are having to find new ways to play it.
(3) What Trade Retaliation, Against U.S. Tariffs, is In Store?
Global markets have felt the impact of "Liberation Day;” now they have to brace for what many are already calling "Retaliation Day" from trade partners in response to the highest U.S. tariffs in over a century.
Signs of that may come during this week and beyond. The next steps from the European Union and China are especially in focus.
The EU is expected to pursue a phased approach that leaves space for negotiations to deescalate tensions. China, which reacted immediately when the U.S. imposed 10% tariffs just weeks ago, has not acted... yet.
For market watchers, it's pretty straightforward — the stronger the retaliation to U.S. tariffs, the higher the chances the world economy lurches into recession and keeps investors away from risk assets.
(4) Facing Huge New U.S. Tariffs, Factory Troubles Surge Across Asia.
"Factory Asia" has taken a particularly large hit from Trump’s new tariffs.
Six of the nine Southeast Asian countries on Trump's list face tariffs between 32% and 49%. Sri Lanka, which is clawing back from its worst economic crisis in a generation, took a painful 44% hike.
The news sent Asian currencies plunging – and Sri Lanka's sovereign dollar bonds to their lowest since last year's debt restructuring.
Investors expect Asia's central banks to counter the hit. Thailand's central bank has already said it's ready to manage tariff-induced volatility.
For Sri Lanka, it's trickier; the U.S. typically takes around 40% of its apparel exports, which brought in a net $1.9 billion last year – its second-biggest source of foreign currency.
Yohan Lawrence, Secretary General of Sri Lanka's Joint Apparel Association Forum said the situation “must be addressed as a matter of national urgency.”
(5) On Thursday, Mainland China Consumer Price Inflation (CPI) Data Comes Out.
Chinese inflation data is due on Thursday, and investors will be hoping households in the world's second-largest economy showed more willingness to spend in March after February's dismal consumer price index reading.
The figures come on the heels of China's State Council's "special action plan" reveal last month, featuring measures such as increasing residents' income and establishing a childcare subsidy scheme to boost domestic consumption.
While recent economic data in the country has turned more favorable and Chinese stocks continue to find themselves more buyers, persistent deflationary pressures remain a huge drag.
Trump's tariffs are also complicating matters for Beijing in its quest to mount a solid recovery.
In other news, a rate decision from the Reserve Bank of New Zealand (RBNZ) is due on Wednesday, where expectations are for yet another rate cut as policymakers seek to revive a struggling economy.
Zacks #1 Rank (STRONG BUY) Stocks
(1) Veeva Systems (VEEV - Free Report) : This is a $221 a share stock, with a market cap of $36.9B. It is found in the Medical Info Systems industry. I see a Zacks Value score of F, a Zacks Growth score of F, and a Zacks Momentum score of C.
Image Source: Zacks Investment Research
Headquartered in Pleasanton, CA, Veeva Systems Inc. offers cloud-based software applications and data solutions for the life sciences industry.
The company’s product portfolio includes Veeva CRM (customer relationship management), Veeva Vault (content and information management), Veeva Network (customer master and product data management) and Veeva data services (Veeva OpenData and Veeva KOL data).
Veeva CRM is the company’s flagship product and runs on Salesforce.com’s SaaS platform.
The contract between Veeva and Salesforce.com extends till 2025.
In May 2023, Veeva unveiled Vault CRM, built on the Veeva Vault Platform. It has the full functionality of Veeva CRM and significant new innovations, including two new applications CRM Bot and Service Center.
FY25 at a Glance
For fiscal 2025, VEEV registered total sales of $2.75 billion, up +16% year over year. VEEV reported adjusted earnings per share of $6.60 for fiscal 2025, up +36.4% compared with fiscal 2024.
Subscription Service revenues were $2.28 billion (83.2% of net sales, up +20% from fiscal 2024), while
Professional services and other revenues grossed $461.9 million (16.8%, down- 0.03%)
(2) Societe Generale Group (SCGLY - Free Report) : This is a very cheap $8.50 a share French bank stock, with a market cap of $35.5B. It is found in the Foreign Bank industry. I see a Zacks Value score of A, a Zacks Growth score of D, and a Zacks Momentum score of C.
Image Source: Zacks Investment Research
Societe Generale FR Group is the sixth largest bank in the Eurozone.
Its business mix is structured around three core businesses: Retail Banking, Asset Management and Private Banking, Corporate and Investment Banking.
The Group is implementing a sustainable growth policy based on the selective development of its products and services, a client-focused culture of innovation in its different markets, and sustained organic growth coupled with acquisitions.
(3) Baidu (BIDU - Free Report) : This is a $90 a share Mainland China stock, with a market cap of $32.2B. It is found in the Internet Services industry. I see a Zacks Value score of A, a Zacks Growth score of C, and a Zacks Momentum score of B.
Image Source: Zacks Investment Research
Baidu, Inc., formerly Baidu.com, Inc. is a Chinese-language Internet search provider and is based in Beijing, the People's Republic of China.
The company offers a Chinese language search platform and conducts its operations principally through Baidu Online Network Technology Co., Ltd., a network of third-party Web sites and software applications.
Further, the company offers Japanese search services, including Web search, image search, video search, and blog search capabilities.
It also offers online marketing services to its customers directly and through other distribution networks.
Key Global Macro
The U.S. Consumer Price Inflation report for March is the major macro print.
On Monday, Mainland China FX reserves for March come out. The prior reading is $3.2T.
Euro Area retail sales for FEB come out. The prior annual (y/y) reading was +1.5%.
On Tuesday, the U.S. NFIB Small Business Optimism Index comes out for MAR. I see a 100.7 prior reading. What happens here, after the latest Trump tariffs? Ouch.
On Wednesday, the Reserve Bank of New Zealand (RBNZ) likely cuts is policy rate to 3.5% from 3.75%.
The latest U.S. FOMC meeting minutes come out.
On Thursday, Mainland China’s CPI for MAR comes out. I see a -0.7% y/y prior reading. Yes. That spells out a modest deflation underway here.
The U.S. CPI for MAR also comes out. I see a +2.8% y/y prior reading here. Ex-food & energy in the prior reading was +3.1% y/y.
On Friday, we get the preliminary U of Michigan Consumer Expectations Index for APR. I see a poor 57 prior reading is already in hand.
Conclusion
On April 2nd, 2025, Zacks Research Director Sheraz Mian offered up his latest four key Q1-25 earnings season points.
Here are his key Q1 points:
(1) Zacks expects total Q1-25 earnings for the S&P500 index to be up +5.9% from the same period last year, on +3.9% higher revenues.
This would follow the +14.1% earnings growth, on +5.7% revenue growth in the preceding period.
(2) Q1-25 earnings estimates have steadily come down since the quarter got underway.
The current +5.9% expected growth pace is down from +10.4% -- at the start of January 2025.
(3) Look at the calendar year picture.
Zacks expects total S&P500 earnings to grow by +9.6% in 2025.
12 of the 16 Zacks sectors expect to produce positive earnings growth.
Sectors with double-digit earnings growth this year include:
(4) For the Mag 7 group? Total 2025 earnings are expected to increase by +12.6%, on +9.3% higher revenues.
Exclude the Mag 7 contribution? Total earnings for the remaining S&P500 companies are expected to grow +8.7% in 2025.
This compares to +4.0% growth in 2024 and -5.1% in 2023.
That’s it for me.
Enjoy a productive week, trading and investing.
Warm regards,
John Blank, PhD.
Zacks Chief Equity Strategist and Economist