2 big things to watch this week as the S&P 500 looks to extend its historic win streak
Could the rallying S & P 500 go for 10 in a row? The S & P 500 on Friday extended its winning streak to nine straight sessions. That incredible run, not seen for 20 years, wiped out all the losses since President Donald Trump announced his “reciprocal” tariffs on April 2. Stocks soared Friday on a strong jobs report and signs that trade negotiations are progressing . For the week, the S & P 500 gained nearly 3%, while the Dow rose 3% and the Nasdaq advanced 3.4%. .SPX .IXIC,.DJI mountain 2025-04-28 S & P 500, Nasdaq, Dow since April 28 The S & P Short Range Oscillator on Friday finished in overbought territory once again. It’s the sixth straight session above that threshold. During these times, we like to lighten up on stocks. Last week, we only made one trade . On Monday, we booked some profits on CrowdStrike after a huge run for the cybersecurity stock. CrowdStrike has been our top performer year to date with a nearly 29% gain versus losses of 3.3% and almost 7%, respectively, for the S & P 500 and Nasdaq. Quarterly earnings from megacap Club names like Microsoft and Meta Platforms also played a role in last week’s market upswing. Microsoft and Meta were our top two performers last week, up 11% and 9%, respectively. Both management teams helped assuage investor concerns that the president’s threats of higher levies would nix the artificial intelligence trade. Here’s a rundown of earnings from those two and the eight other portfolio names that reported last week. Tuesday Honeywell: This industrial conglomerate posted a solid quarter, highlighted by management’s reassuring remarks about how the company plans to mitigate tariff risks. Starbucks: The coffee chain disappointed this quarter . But we’re not giving up yet. Starbucks’ turnaround plan still looks promising under CEO Brian Niccol. Wednesday Microsoft: The software and cloud giant proved naysayers wrong with its quarterly results. Strength in Azure showed how its massive AI investments are starting to pay off. Meta Platforms: The social media giant’s strong quarter quieted near-term tariff worries. CEO Mark Zuckerberg said Meta is “well-positioned to navigate the macroeconomic uncertainty.” Thursday Eli Lilly: The drugmaker posted great sales for its GLP-1 franchise, which includes Mounjaro for diabetes and Zepbound for obesity. But a partnership between rival Novo Nordisk and CVS Health overshadowed Lilly’s solid quarter. We’re not worried. Linde: This industrial gas and engineering firm kept its earnings beat streak alive for yet another quarter. Amazon: The e-commerce and cloud company failed to impress with its light guidance . Still, we maintained our buy-equivalent 1 rating on the stock because of growth in two of its high-margin revenue streams: Amazon Web Services and advertising. Apple: We’re pleased to see that management delivered better-than-expected iPhone sales , but a services miss was a disappointment. Friday DuPont: This quarter was better than expected , highlighted by double-digit growth in its electronics business. This division will be spun off into a standalone company in November. Eaton: The maker of power management solutions for AI data centers and other commercial markets delivered a largely positive first quarter . However, we may need to rethink our position because we also own stakes in DuPont and Dover, which both have ties to the AI trade as well. The week ahead is all about earnings and the Fed. 1. The Fed The Federal Reserve’s third policy meeting of the year this week starts Tuesday and wraps up Wednesday afternoon, when we’ll get the central bank’s latest interest rate decision. The Fed is widely expected to once again hold rates steady in the range of 4.25% to 4.5%, as it did in January and March, according to the CME Group’s FedWatch tool ; the market is penciling in a quarter percentage point cut at the Fed’s June meeting. Still, there will be plenty to ask Chairman Jerome Powell about at his Wednesday afternoon news conference. It all boils down to this: How has the latest economic data changed Powell’s assessment, if at all, on the impact of tariffs on the Fed’s dual goals of price stability and maximum employment? Powell has said before the Fed could find itself in a “challenging scenario” that puts those goals at odds with each other — perhaps rising inflation due to tariffs at the same time economic growth is slowing. Additionally, Powell figures to be asked about Trump’s attacks on his job performance and the role of central bank independence, in general. 2. Earnings A trio of Club holdings are set to report this week: Coterra Energy on Monday night (with its usual conference call the following morning), Disney on Wednesday morning and Texas Roadhouse on Thursday night. As always, Coterra’s results are swayed by the price of oil and natural gas. Coterra’s ability to shift production resources around to whichever commodity has the most favorable prices is beneficial. However, there’s no getting around that it’s been a rough year for U.S. crude prices – driven in part by demand erosion concerns – while natural gas is basically flat. What we want to see from the company is a continued ability to deliver strong production while keeping capital expenditures in check – that’s what makes them a disciplined operator. Comments from executives on whether the uncertain economic is changing their production expectations for 2025 will be helpful, too. With Disney’s report on Wednesday, there are two main questions. First, how is CEO Bob Iger’s push to make Disney more profitable going, especially on its streaming business? Operating income and margins were a bright spot in its February earnings report . Secondly, how is the shakier economic backdrop — and a slowdown in tourists flying to the U.S. — impacting its theme park and cruise business? Disney’s forward-looking commentary on consumer health and any related changes to guidance will arguably matter more than the numbers themselves. Texas Roadhouse on Thursday will provide another look at the consumer. Will its affordable meals be enough to keep diners coming through the doors, a noisy, weather-related start to the first quarter notwithstanding? Another question is whether the company is feeling any competitive pressures from the likes of Chili’s. While its parent company Brinker saw shares tumble after its own earnings report last week, the results themselves were better than expected. Other food chains such as Chipotle have disappointed this earnings season . Week ahead Monday, May 5 ISM Services PMI at 10 a.m. ET Before the bell: Loews (L), Cummins (CMI), Tyson Foods (TSN), On Semiconductor (ON) After the bell: Ford Motor (F), Mattel (MAT), Palantir (PLTR), Clorox (CLX), Coterra Energy (CTRA), IAC Inc. (IAC), Vertex Pharmaceuticals (VRTX), Hims & Hers Health (HIMS), Diamondback Energy (FANG), Lattice Semiconductor (LSCC) Tuesday, May 6 Before the bell: Datadog (DDOG), Ferrari (RACE), Constellation Energy (CEG), Marriott International (MAT), Archer-Daniels-Midland (ADM), American Electric Power (AEP), Aramark (ARMK), Ball Corporation (BALL), Leidos Holdings (LDOS), GlobalFoundries (GFS), Marathon Petroleum (AMPC), Zoetis (ZTS) After the bell: Advanced Micro Devices (AMD), Super Micro Computer (SMCI), Rivian (RIVN), Arista Networks (ANET), Wynn Resorts (WYNN), Devon Energy (DVN), Coupang (CPNG), Electronic Arts (EA), International Flavors & Fragrance (IFF), Mosaic Co. (MOS), Resideo Technologies (REZI), Astera Labs (ALB), Coty (COTY) Wednesday, May 7 Federal Reserve interest rate decision at 2 p.m. ET Before the bell: Disney (DIS) , TripAdvisor (TRIP), Uber (UBER), Novo Nordisk (NVO), Teva Pharmaceutical (TEVA), Unity (U), Vistra Energy (VST), Barrick Gold (GOLD), Bunge (BG), Bloomin’ Brands (BLMN), Johnson Controls (JCI), Emerson Electric (EMR), Owens Corning (OC), New York Times Co. (NYT), Rockwell Automation (ROK), Elanco Animal Health (ELAN) After the close: Arm Holdings (ARM), DoorDash (DASH), Skyworks Solutions (SWKS), AppLovin (APP), Carvana (CVNA), Cleveland-Cliffs (CLF), Axon Enterprise (AXON), Occidental Petroleum (OXY), Dutch Bros (BROS), Apace Corp. (APA), AMC Entertainment (AMC), Kyndryl (KD), Fortinet (FTNT), Corteva (CTVA), GXO Logistics (GXO, H & R Black (HRB), CF Industries (CF) Thursday, May 8 Initial jobless claims at 8:30 a.m. ET Monthly Wholesale Trade Survey at 10 a.m. ET Before the bell: Toyota Motor (TM), Anheuser-Busch InBev (BUD), ConocoPhillips (COP), Warner Bros. Discovery (WBD), Six Flags Entertainment (FUN), Yeti (YETI), Kenvue (KVUE), Restaurant Brands International (QSR), Papa John’s (PZZA), Molson Coors Beverage (TAP), Valvoline (VVV), Planet Fitness (PLNT), Hanesbrands (HBI), Tapestry (TPR), US Foods (USFD), Choice Hotels (CHH) After the bell: Dropbox (DBX), Expedia Group (EXPE), Affirm Holdings (AFRM), Paramount Global (PARA), Texas Roadhouse (TXRH), Lyft (LYFT), Coinbase (COIN), Akamai (AKAM), TKO Group (TKO), DraftKings (DKNG), Sweetgreen (SG), Toast (TOST), McKesson (MCK), Cloudflare (NET), Microchip Technology (MCHP) Friday, May 9 Before the bell: AMC Networks (AMCX), Enbridge (ENB), Gogo Inc. (GOGO) (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
The “Charging Bull” sculpture is seen in the financial district of New York City, U.S., April 10, 2025.
Kylie Cooper | Reuters
Could the rallying S&P 500 go for 10 in a row?