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Markets Slide on Bond Option; Q1 Earnings After the Close
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Wednesday, May 21, 2025
A couple things happened mid-day that sent a steady flat-to-down session falling into the red and staying there. Market indexes closed off their lows, but appeared to be trending back down in the final minutes before the close. The Dow slip -816 points, -1.91%, the S&P 500 -95, -1.61%, the Nasdaq -270, -1.41% and the small-cap Russell 2000 -55 points, -2.63%.
One occurrence was a sell-off in bonds, likely having something to do with the U.S. government planning to add to the overall deficit with a major tax cut bill working its way through Congress. The three credit rating agencies have already downgraded the U.S. from AAA, and now this bond option has led to spiking Treasury yields: +4.59% on the 10-year, +4.01% on the 2-year, and back up over +5% on the 30-year bond.
The other event was more localized in the realm of AI and concerning the original designer of the iPhone, Jony Ive. Ive’s AI startup io is going to Sam Altman’s OpenAI for a cool $6.4 billion, and without many details the market priced in a discount at Apple (AAPL - Free Report) , which closed -2.3% on the day. What this move signals in a broader sense, however, is that access to AI design and implementation is becoming increasingly competitive.
Q1 Earnings After the Close: URBN, SNOW, ZM
Urban Outfitters (URBN - Free Report) posted solid beats on its Q1 report after today’s closing bell, with earnings of $1.16 per share easily outperforming the 81 cents expected. Revenues of $1.33 billion in the quarter surpassed the Zacks consensus of $1.29 billion. Comps rose +4.8% year over year, led by Anthropologie. Company subscribers rose by nearly +60%. The retailer made no mention of tariff impacts on future gains. Shares are up +9% after hours. (You can see the full Zacks Earnings Calendar here.)
Data storage firm Snowflake (SNOW - Free Report) also outpaced estimates on both top and bottom lines this afternoon, with earnings of 24 cents per share beating expectations by 2 cents on quarterly sales of $1.04 billion, which improved over the $1.00 billion analysts were anticipating. Product revenue guidance was placed much higher for Q2: $997 million versus $962 million previously expected. Shares gained +7% on the news in late trading.
Zoom Communications (ZM - Free Report) makes it 3-for-3 following Wednesday’s close: earnings of $1.43 per share “zoomed” past the Zacks consensus $1.30, with revenues eking out a slight beat: $1.17 billion versus $1.16 billion. Earnings guidance was lifted while revenues were kept in-line, as gains in Enterprise outperformed estimates. The videoconferencing services firm had jumped higher on the news, but have moderated somewhat.
What to Expect from the Stock Market Thursday
Finally, tomorrow morning we see some economic reportage, including Weekly Jobless Claims, S&P flash Services and Manufacturing PMI, and Existing Home Sales. Expectations are for jobless claims to remain steady at the slightly higher levels we’ve seen over the past few weeks, lower PMI results with Services remaining above the 50 threshold but Manufacturing dipping below it, and home sales coming in slightly higher month over month.
Image: Bigstock
Markets Slide on Bond Option; Q1 Earnings After the Close
Wednesday, May 21, 2025
A couple things happened mid-day that sent a steady flat-to-down session falling into the red and staying there. Market indexes closed off their lows, but appeared to be trending back down in the final minutes before the close. The Dow slip -816 points, -1.91%, the S&P 500 -95, -1.61%, the Nasdaq -270, -1.41% and the small-cap Russell 2000 -55 points, -2.63%.
One occurrence was a sell-off in bonds, likely having something to do with the U.S. government planning to add to the overall deficit with a major tax cut bill working its way through Congress. The three credit rating agencies have already downgraded the U.S. from AAA, and now this bond option has led to spiking Treasury yields: +4.59% on the 10-year, +4.01% on the 2-year, and back up over +5% on the 30-year bond.
The other event was more localized in the realm of AI and concerning the original designer of the iPhone, Jony Ive. Ive’s AI startup io is going to Sam Altman’s OpenAI for a cool $6.4 billion, and without many details the market priced in a discount at Apple (AAPL - Free Report) , which closed -2.3% on the day. What this move signals in a broader sense, however, is that access to AI design and implementation is becoming increasingly competitive.
Q1 Earnings After the Close: URBN, SNOW, ZM
Urban Outfitters (URBN - Free Report) posted solid beats on its Q1 report after today’s closing bell, with earnings of $1.16 per share easily outperforming the 81 cents expected. Revenues of $1.33 billion in the quarter surpassed the Zacks consensus of $1.29 billion. Comps rose +4.8% year over year, led by Anthropologie. Company subscribers rose by nearly +60%. The retailer made no mention of tariff impacts on future gains. Shares are up +9% after hours. (You can see the full Zacks Earnings Calendar here.)
Data storage firm Snowflake (SNOW - Free Report) also outpaced estimates on both top and bottom lines this afternoon, with earnings of 24 cents per share beating expectations by 2 cents on quarterly sales of $1.04 billion, which improved over the $1.00 billion analysts were anticipating. Product revenue guidance was placed much higher for Q2: $997 million versus $962 million previously expected. Shares gained +7% on the news in late trading.
Zoom Communications (ZM - Free Report) makes it 3-for-3 following Wednesday’s close: earnings of $1.43 per share “zoomed” past the Zacks consensus $1.30, with revenues eking out a slight beat: $1.17 billion versus $1.16 billion. Earnings guidance was lifted while revenues were kept in-line, as gains in Enterprise outperformed estimates. The videoconferencing services firm had jumped higher on the news, but have moderated somewhat.
What to Expect from the Stock Market Thursday
Finally, tomorrow morning we see some economic reportage, including Weekly Jobless Claims, S&P flash Services and Manufacturing PMI, and Existing Home Sales. Expectations are for jobless claims to remain steady at the slightly higher levels we’ve seen over the past few weeks, lower PMI results with Services remaining above the 50 threshold but Manufacturing dipping below it, and home sales coming in slightly higher month over month.
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