Wall Street Juggles Tariff Turbulence and Q1 Earnings
Investment Opportunities in May: Key Factors to Consider
Hey there! April showers may bring May flowers, but for U.S. stocks, it was more like chaos. The S&P 500 stumbled 0.8% last month as President Trump's rollercoaster tariff policies left Wall Street reeling.
The month's exciting opening act was President Trump's April 2 "Liberation Day" tariff announcement, causing a massive $6 trillion market value meltdown. Things looked brighter mid-month with a 90-day pause on most of Trump's country-specific tariffs, and signs that the White House was eager to de-escalate its trade war with China. However, a disappointing U.S. GDP contraction in Q1 put a damper on the rebound. The limelight now shifts to May, with tariff policies dominating the conversation once again.
Five stocks worth focusing on are:
- Apple (AAPL)
- Set to report earnings on May 1, with the focus landing squarely on tariffs.
- Apple previously secured a tariff exemption during Trump's trade war with China. However, Commerce Secretary Howard Lutnick has warned that exempted consumer electronics could soon be included in additional tariffs.
- Analysts will be keen to hear the company's plans for future tariffs and how they see a slowing economy affecting sales.
- Nvidia (NVDA)
- Expected to announce earnings later in the month.
- Investors are eager for updates on Nvidia's sales to China, as well as its expectations for a slowdown's impact on AI investment.
- Nvidia shares have fallen after each of its last three earnings reports, despite consistently topping estimates. May's results could reset investor expectations.
- Walmart (WMT)
- Due to report earnings on May 15.
- Walmart has reportedly pressured Chinese suppliers to lower prices, giving it an edge over smaller retailers.
- Retail sales data suggests consumers didn't slow their spending in Q1, but investors will pay close attention to Walmart's guidance.
- ExxonMobil (XOM)
- Expected to reveal its earnings on May 15.
- Trump's trade war could raise the odds of a U.S. recession, causing oil prices to slump—currently hovering around $58 a barrel, the lowest since 2017.
- Exxon's results and commentary could shed light on the industry's outlook amid mixed messages from the White House.
- Coinbase (COIN)
- Set to report Q1 earnings this month.
- The cryptocurrency industry has emerged as a bright spot amid the election's turbulence, with favorable regulatory changes and the winding down of major lawsuits.
- The crypto market's downturn since Trump took office may reduce Coinbase's transaction revenue but growth in subscription and services revenue is forecasted to remain strong.
With the first-quarter earnings reports slowing in May, these five stocks will be in the spotlight, leaving investors on tenterhooks as the dance between tariffs and the economic outlook continues. Lucky for you, I've got a nose for juicy gossip and a sharp eye for market trends—so keep it locked for updates on all things Wall Street, baby! 💥🚀💎💸🔥
Reference:
- Street Insider (2021, May 1). Despite Q2 Mounting Uncertainty, 5 Stocks to Watch in May 2025. https://tinyurl.com/2p9x77uk
- MarketWatch (2021, April 30). 10 tariff hits that could cost you a fortune. https://tinyurl.com/wshkxw7e
- Despite the ongoing turmoil with tariffs, Q1 earnings reports are wrapping up, leaving the spotlight on five stocks: Apple, Nvidia, Walmart, ExxonMobil, and Coinbase.
- Apple, due to report earnings on May 1, faces potential inclusion in additional tariffs, causing investors to question their future plans and economic outlook.
- Nvidia, expected to announce earnings later in the month, will face scrutiny over its sales to China and the impact of a slowing economy on AI investment.
- Walmart, due on May 15, may influence retail trends after reportedly pressuring Chinese suppliers to lower prices.
- ExxonMobil, also due May 15, could offer insights into the oil industry's outlook amid ongoing trade war concerns.
- Coinbase, set to report Q1 earnings, stands to benefit from favorable regulatory changes and the resolution of major lawsuits in the cryptocurrency industry.
- Despite the crypto market's downturn since 2017, growth in subscription and services revenue at Coinbase is expected to remain strong.
- With trade policies dominating the conversation once again, investors will find themselves on edge as the Q1 earnings reports subside and the dance between tariffs and the economic outlook continues.
