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NVIDIA Q1 Earnings Closes the Season: Global Week Ahead
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What is in store for this Global Week Ahead?
Chip behemoth Nvidia (NVDA - Free Report) is closing the U.S. earnings season.
Investors digest the appearance of the bond vigilantes, in the usually rather sedate corner of long-term government debt.
Central banks in Australia, New Zealand and South Korea hold rate meetings.
Inflation data from around the globe provides evidence of the economic fallout, from the tectonic shifts in U.S. trade policy.
Next are Reuters’ five world market themes, reordered for equity traders—
(1) Q1 Earnings Season Ends with Nvidia
Results from Nvidia — a behemoth in the artificial intelligence field that has become a sparring ground in global trade and geopolitics — are due on Wednesday, and round out the Q1 U.S. reporting season.
Nvidia is part of the "Magnificent Seven" megacaps, whose shares have rebounded sharply since early April after a rough start to the year.
Its AI chips have helped catapult the company to become one of the world's largest by market value and given it heft in world equity indexes. But after two years of massive gains, the stock's performance has leveled off so far in 2025.
Nvidia's report could test the stock market rebound, with the S&P 500 approaching record highs after teetering on the brink of a bear market last month.
(2) The Bond Vigilantes Are Back
It's no surprise that government debt levels have surged given relentless pressure to raise spending on everything from defense to healthcare, aging populations and climate change.
But the consequences of governments not doing enough to improve their finances are coming home to roost.
Just days after the U.S. lost its top-notch triple-A credit rating with Moody's, a $16 billion sale of 20-year U.S. Treasuries saw soft demand, and Japan had its worst auction result since 2012 — sending 30-year government bond yields to record highs.
A corner of the bond market not known for its volatility — long-dated government bonds — has suddenly become a hot spot.
In addition to surging Japan government bond yields, 30-year U.S. yields are back above 5%, dragging others higher.
Japan sells more long-dated debt in the days to come. Watch those auctions. The bond vigilantes are back.
(3) Investors Are Planning to Defend Portfolios from More Wild Volatility Swings
With fears for the U.S.'s massive debt pile quashing a relief rally in its assets, investors are planning how they might defend portfolios from more wild swings in the world's largest economy.
Top money managers at JP Morgan (JPM), and Goldman Sachs (GS), are laying on more hedges to diffuse some of the hits to U.S. Treasuries and stocks. Others are using the dog days of May to sell down with greater conviction, diversifying exposures by pumping more money into Europe.
European equity exchange-traded funds have pulled in 34 billion euros ($38.6 billion) of cash over the year to May 16 — four times the 8.2 billion euros put in U.S. equity funds, Morningstar data shows.
By comparison, in 2024, net flows into U.S. equity funds in Europe had dominated by a ratio of more than 8:1 over locally-focused products.
(4) On Thursday, May 30th, Core PCE, the Fed’s Preferred Inflation Measure, Is Out
Inflation is returning to the top of policy makers' agenda elsewhere too.
The Fed's targeted inflation metric, Personal Consumption Expenditures (PCE), for April, due on May 30th, could paint a clearer picture of the impact U.S. tariffs are having.
April was a volatile month after U.S. President Trump's tariff onslaught on April 2, but recent consumer and producer prices data have not flashed inflationary warning signs just yet.
Price pressures were clearly playing on the Fed's collective minds when it kept rates steady this month, with a warning that the risk of higher inflation had increased, dampening expectations for near-term rate cuts.
The Eurozone's biggest economies, France and Germany, report consumer prices data on Tuesday and Friday; bloc-wide figures follow the week after.
(5) This Week, a Few Developed Central Banks Step Up to the Plate
Unbowed by aggressive and unpredictable U.S. tariffs — or even the recent melt-up in bond yields — the Bank of Japan has kept a very calm demeanor in saying it plans to keep raising interest rates if prices gain in line with forecasts.
A surge in rice prices has driven upward momentum. The bellwether Tokyo consumer price index is due on May 30th, front-running the nationwide reading by three weeks. Figures a month ago scaled a two-year high.
Australia's inflation data on Wednesday will be watched after the central bank cut rates in May and signaled an openness to additional easing, with cooling prices giving policy makers room to do so.
New Zealand's central bank is seen trimming the cash rate by another quarter point the same day.
On Thursday, the Bank of Korea looks ready to cut amid concerns about growing economic headwinds.
Zacks #1 Rank (STRONG BUY) Stocks
(1) Ferrari (RACE - Free Report) : This is a $477 a share stock with a market cap of $119.1B. It is found in the Auto-Original Equipment industry. I see a Zacks Value score of F, a Zacks Growth score of A, and a Zacks Momentum score of F.
Image Source: Zacks Investment Research
Ferrari N.V. is engaged in designing, manufacturing and selling sports cars. Its products include sports car models that consist of 458 Italia, 488 GTB, 458 Spider, 488 Spider, F12 Berlinetta, 458 Speciale and 458 Speciale A as well as two grand tourer (GT) cars: California T and FF.
The company also produces a limited edition supercar, LaFerrari, and limited series of one-off cars. It operates primarily in Europe, the Middle East, India, Africa, Americas, Greater China and Rest of Asia-Pacific region.
Ferrari N.V. is headquartered in Maranello, Italy.
(2) Applovin (APP - Free Report) : This is a $353 a share stock with a market cap of $118.9B. It is found in the Technology Services industry. I see a Zacks Value score of F, a Zacks Growth score of A, and a Zacks Momentum score of A.
Image Source: Zacks Investment Research
AppLovin Corp. provides a technology platform which enables developers to market, monetize, analyze and publish their apps.
AppLovin is headquartered in Palo Alto, California.
(3) Axa (AXAHY - Free Report) : This is a $46 a share stock with a market cap of $103.8B. It is found in the Insurance Multi-line industry. I see a Zacks Value score of C, a Zacks Growth score of D, and a Zacks Momentum score of C.
Image Source: Zacks Investment Research
The AXA Group is an international group of insurance and related financial services companies.
AXA's insurance operations are diverse geographically, with activities in 50 countries, principally Western Europe, North America and the Asia/Pacific area.
In the United States, AXA is represented through its 60% holding in The Equitable companies and its subsidiaries, Equitable Life, Alliance Capital management and Donaldson, Lufkin & Jenrette.
Key Global Macro
The core PCE data is the key macro report out this week.
Monday was the Memorial Day holiday in the USA. Bond and stock markets were closed.
The ECB’s President LaGarde gave a speech.
On Tuesday, the Bank of Japan (BoJ)’s Ueda gave a speech.
U.S. Durable Goods orders for April come out. Headline ex-defense was down -6.3% from a downwardly revised +7.6% the previous month.
On Wednesday, the Fed’s Kashkari, Williams, and Waller give speeches.
The FOMC minutes comes out too.
The Reserve Bank of New Zealand (RBNZ) should cut its policy rate from 3.5% to 3.25%.
On Thursday, the U.S. core nominal PCE for Q1 comes out. The consensus is for a +3.5% q/q number, identical to the prior quarterly print.
U.S. GDP in Q1 should be a preliminary confirm of a -0.3% decline.
U.S. initial Weekly Jobless Claims should remain low at 230k.
On Friday, the U.S. core PCE price index for April comes out. I see a prior +2.6% y/y print.
The University of Michigan Consumer Sentiment Index comes out. The prior print was a very low 50.1.
There is a Dragon Boat Festival in Mainland China.
Conclusion
On May 21st, Zacks Research Director Sheraz Mian gave us his latest earnings update.
Here are the four key points:
(1) Total Q1-25 earnings for the 469 S&P500 index members that have reported results are up +11.5% from the same period last year on +4.3% higher revenues.
(2) Companies struggled to beat consensus estimates this reporting cycle.
The Q1-25 EPS and revenue beats percentages for this group of 469 S&P500 index members are tracking below what we had seen from the group; in other recent periods, as well as the average for this group over the preceding 20-quarter period.
(3) For the Retail sector, we now have Q1-25 results from 96% of the sector’s members in the S&P 500 index.
Total earnings for these Retail sector companies are up +11.5% from the same period last year, on +5% higher revenues.
(4) However, the +11.5% earnings growth pace for these Retail sector companies drops to a decline of -5.2%, once Amazon’s substantial contribution is excluded.
EPS and revenue beats percentages for the group are materially below historical averages for this same group of Retail sector companies.
That sounds like a touch — of trade and policy uncertainty induced — retail fatigue to me.
Enjoy an excellent week, with both trading and investing.
John Blank, PhD. Zacks Chief Equity Strategist and Economist
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NVIDIA Q1 Earnings Closes the Season: Global Week Ahead
What is in store for this Global Week Ahead?
Chip behemoth Nvidia (NVDA - Free Report) is closing the U.S. earnings season.
Investors digest the appearance of the bond vigilantes, in the usually rather sedate corner of long-term government debt.
Central banks in Australia, New Zealand and South Korea hold rate meetings.
Inflation data from around the globe provides evidence of the economic fallout, from the tectonic shifts in U.S. trade policy.
Next are Reuters’ five world market themes, reordered for equity traders—
(1) Q1 Earnings Season Ends with Nvidia
Results from Nvidia — a behemoth in the artificial intelligence field that has become a sparring ground in global trade and geopolitics — are due on Wednesday, and round out the Q1 U.S. reporting season.
Nvidia is part of the "Magnificent Seven" megacaps, whose shares have rebounded sharply since early April after a rough start to the year.
Its AI chips have helped catapult the company to become one of the world's largest by market value and given it heft in world equity indexes. But after two years of massive gains, the stock's performance has leveled off so far in 2025.
Nvidia's report could test the stock market rebound, with the S&P 500 approaching record highs after teetering on the brink of a bear market last month.
(2) The Bond Vigilantes Are Back
It's no surprise that government debt levels have surged given relentless pressure to raise spending on everything from defense to healthcare, aging populations and climate change.
But the consequences of governments not doing enough to improve their finances are coming home to roost.
Just days after the U.S. lost its top-notch triple-A credit rating with Moody's, a $16 billion sale of 20-year U.S. Treasuries saw soft demand, and Japan had its worst auction result since 2012 — sending 30-year government bond yields to record highs.
A corner of the bond market not known for its volatility — long-dated government bonds — has suddenly become a hot spot.
In addition to surging Japan government bond yields, 30-year U.S. yields are back above 5%, dragging others higher.
Japan sells more long-dated debt in the days to come. Watch those auctions. The bond vigilantes are back.
(3) Investors Are Planning to Defend Portfolios from More Wild Volatility Swings
With fears for the U.S.'s massive debt pile quashing a relief rally in its assets, investors are planning how they might defend portfolios from more wild swings in the world's largest economy.
Top money managers at JP Morgan (JPM), and Goldman Sachs (GS), are laying on more hedges to diffuse some of the hits to U.S. Treasuries and stocks. Others are using the dog days of May to sell down with greater conviction, diversifying exposures by pumping more money into Europe.
European equity exchange-traded funds have pulled in 34 billion euros ($38.6 billion) of cash over the year to May 16 — four times the 8.2 billion euros put in U.S. equity funds, Morningstar data shows.
By comparison, in 2024, net flows into U.S. equity funds in Europe had dominated by a ratio of more than 8:1 over locally-focused products.
(4) On Thursday, May 30th, Core PCE, the Fed’s Preferred Inflation Measure, Is Out
Inflation is returning to the top of policy makers' agenda elsewhere too.
The Fed's targeted inflation metric, Personal Consumption Expenditures (PCE), for April, due on May 30th, could paint a clearer picture of the impact U.S. tariffs are having.
April was a volatile month after U.S. President Trump's tariff onslaught on April 2, but recent consumer and producer prices data have not flashed inflationary warning signs just yet.
Price pressures were clearly playing on the Fed's collective minds when it kept rates steady this month, with a warning that the risk of higher inflation had increased, dampening expectations for near-term rate cuts.
The Eurozone's biggest economies, France and Germany, report consumer prices data on Tuesday and Friday; bloc-wide figures follow the week after.
(5) This Week, a Few Developed Central Banks Step Up to the Plate
Unbowed by aggressive and unpredictable U.S. tariffs — or even the recent melt-up in bond yields — the Bank of Japan has kept a very calm demeanor in saying it plans to keep raising interest rates if prices gain in line with forecasts.
A surge in rice prices has driven upward momentum. The bellwether Tokyo consumer price index is due on May 30th, front-running the nationwide reading by three weeks. Figures a month ago scaled a two-year high.
Australia's inflation data on Wednesday will be watched after the central bank cut rates in May and signaled an openness to additional easing, with cooling prices giving policy makers room to do so.
New Zealand's central bank is seen trimming the cash rate by another quarter point the same day.
On Thursday, the Bank of Korea looks ready to cut amid concerns about growing economic headwinds.
Zacks #1 Rank (STRONG BUY) Stocks
(1) Ferrari (RACE - Free Report) : This is a $477 a share stock with a market cap of $119.1B. It is found in the Auto-Original Equipment industry. I see a Zacks Value score of F, a Zacks Growth score of A, and a Zacks Momentum score of F.
Image Source: Zacks Investment Research
Ferrari N.V. is engaged in designing, manufacturing and selling sports cars. Its products include sports car models that consist of 458 Italia, 488 GTB, 458 Spider, 488 Spider, F12 Berlinetta, 458 Speciale and 458 Speciale A as well as two grand tourer (GT) cars: California T and FF.
The company also produces a limited edition supercar, LaFerrari, and limited series of one-off cars. It operates primarily in Europe, the Middle East, India, Africa, Americas, Greater China and Rest of Asia-Pacific region.
Ferrari N.V. is headquartered in Maranello, Italy.
(2) Applovin (APP - Free Report) : This is a $353 a share stock with a market cap of $118.9B. It is found in the Technology Services industry. I see a Zacks Value score of F, a Zacks Growth score of A, and a Zacks Momentum score of A.
Image Source: Zacks Investment Research
AppLovin Corp. provides a technology platform which enables developers to market, monetize, analyze and publish their apps.
AppLovin is headquartered in Palo Alto, California.
(3) Axa (AXAHY - Free Report) : This is a $46 a share stock with a market cap of $103.8B. It is found in the Insurance Multi-line industry. I see a Zacks Value score of C, a Zacks Growth score of D, and a Zacks Momentum score of C.
Image Source: Zacks Investment Research
The AXA Group is an international group of insurance and related financial services companies.
AXA's insurance operations are diverse geographically, with activities in 50 countries, principally Western Europe, North America and the Asia/Pacific area.
In the United States, AXA is represented through its 60% holding in The Equitable companies and its subsidiaries, Equitable Life, Alliance Capital management and Donaldson, Lufkin & Jenrette.
Key Global Macro
The core PCE data is the key macro report out this week.
Monday was the Memorial Day holiday in the USA. Bond and stock markets were closed.
The ECB’s President LaGarde gave a speech.
On Tuesday, the Bank of Japan (BoJ)’s Ueda gave a speech.
U.S. Durable Goods orders for April come out. Headline ex-defense was down -6.3% from a downwardly revised +7.6% the previous month.
On Wednesday, the Fed’s Kashkari, Williams, and Waller give speeches.
The FOMC minutes comes out too.
The Reserve Bank of New Zealand (RBNZ) should cut its policy rate from 3.5% to 3.25%.
On Thursday, the U.S. core nominal PCE for Q1 comes out. The consensus is for a +3.5% q/q number, identical to the prior quarterly print.
U.S. GDP in Q1 should be a preliminary confirm of a -0.3% decline.
U.S. initial Weekly Jobless Claims should remain low at 230k.
On Friday, the U.S. core PCE price index for April comes out. I see a prior +2.6% y/y print.
The University of Michigan Consumer Sentiment Index comes out. The prior print was a very low 50.1.
There is a Dragon Boat Festival in Mainland China.
Conclusion
On May 21st, Zacks Research Director Sheraz Mian gave us his latest earnings update.
Here are the four key points:
(1) Total Q1-25 earnings for the 469 S&P500 index members that have reported results are up +11.5% from the same period last year on +4.3% higher revenues.
74.2% beat EPS estimates. 62.5% beat revenue estimates.
(2) Companies struggled to beat consensus estimates this reporting cycle.
The Q1-25 EPS and revenue beats percentages for this group of 469 S&P500 index members are tracking below what we had seen from the group; in other recent periods, as well as the average for this group over the preceding 20-quarter period.
(3) For the Retail sector, we now have Q1-25 results from 96% of the sector’s members in the S&P 500 index.
Total earnings for these Retail sector companies are up +11.5% from the same period last year, on +5% higher revenues.
56% beat EPS estimates. 52% beat revenue estimates.
(4) However, the +11.5% earnings growth pace for these Retail sector companies drops to a decline of -5.2%, once Amazon’s substantial contribution is excluded.
EPS and revenue beats percentages for the group are materially below historical averages for this same group of Retail sector companies.
That sounds like a touch — of trade and policy uncertainty induced — retail fatigue to me.
Enjoy an excellent week, with both trading and investing.
John Blank, PhD.
Zacks Chief Equity Strategist and Economist