Stocks Fall for 2nd Straight Day as Investors Await Tariff News, Fed Decision; Palantir Plunges After Earnings

Biggest S&P 500 Movers on Tuesday

3 hr 37 min ago

Decliners

• Palantir (PLTR) shares dropped 12%. The AI software firm didn’t deliver strong enough earnings to impress investors after it reported adjusted earnings per share that were in line with analysts’ expectations. The company reported a batter-than-expected 39% jump in quarterly revenue and raised its full-year outlook on growing demand for its AI software. Analysts raised questions about its valuation, as the stock price was up over 40% for 2025 and 400% over the past 12 months.
• Vertex Pharmaceuticals (VRTX) was down 10% after it paused a cystic fibrosis clinic trial it was conducting with Moderna (MRNA)—which was itself down around 12%. The delayed trial at Vertex was part of a series of costs that led to worse-than-expected quarterly earnings.
• Pharmaceutical stocks were also weighed down by news that the Food and Drug Administration named Dr. Vinay Prasad, a critic of the U.S. Covid-19 response, as its top vaccine regulator. Regeneron Pharmaceutical (REGN) was down more than 7%, while Eli Lilly (LLY) sank almost 6% and Bristol-Myers Squibb (BMY) was down 5%. 
• DoorDash (DASH) stock fell more than 7% after it moved up its scheduled earnings result release to this morning, with the food delivery service reporting underwhelming revenue for the quarter. The company said it was buying U.K. firm Deliveroo for nearly $4 billion and restaurant booking platform SevenRooms for $1.2 billion. 

Advancers

• Constellation Energy (CEG) shares rose 10% to deliver the best performance in the S&P 500 after the nuclear energy provider continued to benefit from artificial intelligence-driven electricity demand. It beat its quarterly operating revenue forecasts and maintained its 2025 outlook, even though its profits were weaker than expected. The company also said its $26.6 billion purchase of natural gas and geothermal energy firm Calpine is on track to be completed by the end of the year. 
• Engineering firm Leidos Holdings (LDOS) was 4.6% higher after its better-than-expected results indicated that the company may not see too much earnings loss from cuts to government spending from programs like the Department of Government Efficiency. 

• Ford Motor (F) shares climbed 2.7% after it reported quarterly earnings that beat analysts’ expectations but suspended its full-year outlook amid uncertainty about tariffs. Super Micro Computer (SMCI) rose 2.4% ahead of its earnings report, due after markets closed.

–Terry Lane

AMD Wavers in Extended Trading Despite Strong Earnings

4 hr 10 min ago

Advanced Micro Devices (AMD) delivered first-quarter earnings that topped analysts’ estimates as sales from its data center segment surged.

The chipmaker reported revenue of $7.44 billion, up 36% year-over-year and ahead of the analyst consensus from Visible Alpha. Adjusted net income of $1.57 billion, or 96 cents per share, rose from $1.01 billion, or 62 cents per share, a year earlier, above Wall Street’s estimates.

The gains came as AMD’s data center sales climbed 57% to $3.67 billion, exceeding expectations.

“We delivered an outstanding start to 2025 as year-over-year growth accelerated for the fourth consecutive quarter driven by strength in our core businesses and expanding data center and AI momentum,” said AMD CEO Lisa Su.

AMD shares initially jumped in after-hours trading following the report but were down about 1% recently. The stock was down about 18% for 2025 through Tuesday’s close. 

Looking ahead, AMD projected second-quarter revenue of $7.1 billion to $7.7 billion. Analysts had called for $7.3 billion.

The company warned its results would be affected by charges of roughly $800 million related to tightening restrictions on sales of its chips to China. Competitor Nvidia (NVDA) has also said it expects a potential $5.5 billion charge related to limits on exports of its H20 chip.

“Despite the dynamic macro and regulatory environment, our first quarter results and second quarter outlook highlight the strength of our differentiated product portfolio and consistent execution positioning us well for strong growth in 2025,” Su said.

–Andrew Kessel

Ford Levels to Watch as Automaker Suspends Guidance

4 hr 54 min ago

Ford (F) shares rose Tuesday, one day after the automaker reported quarterly results that topped Wall Street expectations and suspended its full-year forecast amid auto tariff worries.

The stock is down more than 16% over the past 12 months as challenges in the company’s EV division and ongoing tariff concerns weigh on investor sentiment, though it’s gained more than 20% from its early-April low.

Ford shares oscillated within a falling wedge pattern between July last year and April, potentially indicating a long-term accumulation phase. More recently, the stock broke out above the pattern’s upper trendline but encountered resistance near the closely watched 200-day moving average (MA). 

It’s also worth noting that trading volume declined during the move higher, suggesting that larger market participants, such as institutional investors and hedge funds, remained on the sidelines ahead of the automaker’s quarterly report.

The stock closed above a key resistance level of $10.25 today, with the next key upside level to watch at $11.25. Investors should also monitor crucial support levels on Ford’s chart around $9.50 and $8.50.

Ford shares gained 2.7% to close at $10.44 on Tuesday.

Read the full technical analysis piece here.

–Timothy Smith

What Analysts Think of Disney Stock Ahead of Earnings

5 hr 39 min ago

The Walt Disney Company (DIS) is scheduled to report fiscal second-quarter results before the opening bell Wednesday, and analysts are largely bullish on the media and entertainment giant’s stock.

Five of the seven analysts tracked by Visible Alpha who cover Disney rate the stock as a “buy,” while the other two dub it a “hold.” Their average price target is $120, a 30% premium to the stock’s closing level on Tuesday of around $92, suggesting analysts think shares will reverse their roughly 19% decline since the end of February.

The conglomerate is expected to report second-quarter revenue of $23.17 billion, up 5% year-over-year, while adjusted earnings per share are expected to have declined by a penny to $1.20.

UBS analysts recently reiterated their “buy” rating in a note previewing Disney’s earnings, but trimmed their price target to $105 from $130. The analysts said they expect the firm’s second quarter to “reflect resilient demand across the parks, initial upside from the new cruise ship and solid sports advertising,” but see “recession risk” in the second half of the fiscal year that could hit advertising revenue and park visits.

Last quarter, Disney’s revenue and profit topped estimates, but it reported a slight drop in Disney+ subscribers to 124.6 million, and said it expected another “modest decline” in the second quarter. The Visible Alpha consensus calls for 123.6 million Disney+ subscribers at the end of the second quarter.

–Aaron McDade

What You Need to Know Abut the Fed Policy Meeting

6 hr 14 min ago

The Federal Reserve’s two-day monetary policy meeting kicked off Tuesday, and officials will likely discuss how tariffs are working through the economy.

Central bankers are deliberating over monetary policy and are scheduled to release their decision about their key federal funds rate after the meeting at 2 p.m. on Wednesday. Following the announcement, Fed Chair Jerome Powell is expected to hold a press conference at 2:30 p.m.

The Fed can either lower interest rates to boost the economy or raise them to push down inflation.

So far this year, central bankers have chosen to keep the fed funds rate unchanged at an elevated level. That streak of inaction is likely to continue, according to the CME Group’s FedWatch tool, which is pricing in just a 3.1% chance of a fed rate cut Wednesday.

At future meetings, the Fed may be forced to choose whether to fight inflation by keeping interest rates high, or boosting the economy to defuse tariff-induced job losses. So far, the economy has been resilient against the import taxes, which economists expect to increase prices and cost jobs.

It usually takes about three months for shocks to the economy to translate into worsening “hard data” such as the unemployment rate, David Mericle, economist at Goldman Sachs, wrote in a commentary this week. That suggests impacts from the tariffs, which went into effect in April, should start setting off alarm bells in official government data this summer.

Because of that, financial markets expect rate cuts to begin in July.

If the Fed holds rates steady as expected, Trump is unlikely to be pleased by the decision.

Last month, Trump took to social media to angrily demand the Fed cut interest rates, increasing political pressure on the Fed’s policy committee, which is not under the White House’s direct control. On Sunday, he reiterated his criticisms during an interview on “Meet the Press,” calling the Fed “stubborn.”

“Well, [Powell] should lower them. And at some point, he will. He’d rather not because he’s not a fan of mine. He just doesn’t like me because I think he’s a total stiff,” Trump said. “I wish the people that are on that board would get him to lower because we are at a perfect time. It’s already late.”

Despite the demands, Trump also said he had no plans to fire Powell, whose term ends in 2026, walking back previous threats.

–Diccon Hyatt

Sweetgreen Stock Drops After a Pre-Earnings Downgrade

7 hr 4 min ago

Sweetgreen is wilting. 

Shares of the salad chain dropped early Tuesday, falling nearly 8% in recent trading after JPMorgan analysts downgraded the shares and cut their price target to below the Visible Alpha average. They now have a “neutral” rating on Sweetgreen (SG) stock, down from “overweight,” along with a $25 target, below the roughly $30 mean. Their prior target, at $32, was among the Street’s highest.

JPMorgan expressed worry about demand, oversupply of restaurants and negative free cash flow.  

“We believe there is a need for Sweetgreen to improve its relative value proposition by 1) foregoing pricing in the near-medium term, 2) reinvesting in food portions (especially in the digital pickup/delivery channels), 3) developing & effectively communicating entry level price points, and 4) increasing returns on marketing/advertising spend,” they wrote. 

The downgrade arrives as some food chains are sharing concerns about demand and consumer health. Fast-food standouts offer some recent examples: Wendy’s (WEN) recently said its sales may fall this year, while McDonald’s (MCD) has warned of economic stress seeping into the middle-income segment. American consumers have continued to spend, but some observers worry about flagging sentiment.  

The slide in Sweetgreen’s shares has the stock down more than 40% this year so far, a rough start ahead of quarterly financial results due Thursday afternoon.

Analysts are expecting first-quarter revenue of $164.8 million and a nearly $26 million net loss, according to Visible Alpha.

–David Marino-Nachison

How Much Traders Expect AMD to Move After Earnings

7 hr 49 min ago

Advanced Micro Devices (AMD) is scheduled to report first-quarter earnings after the closing bell. Traders are expecting a modest post-earnings move from the stock, which has fallen so far this year.

Options pricing suggests traders are positioning for AMD stock to move nearly 8% in the days after it reports. An 8% jump off Monday’s closing price would put the stock at about $108.50, its highest price since late March, and an 8% decline would put it around $92.50, erasing all of the stock’s gains from the last week. 

A move of that magnitude—in either direction—would be about in line with AMD’s average post-earnings swing over the past four quarters, which comes out to 7.5%.

 The stock tumbled more than 6% the day after its fourth-quarter data center revenue, which rose 69% from the prior year, fell short of expectations in February. Shares dropped more than 10% on AMD’s disappointing earnings report in October.

Analysts expect AMD to report first-quarter data center revenue rose 55% to $3.6 billion, driving total sales growth of 30%. Adjusted earnings are expected to jump more than 50% year-over-year to $1.55 billion, or 94 cents a share.

Analysts are split on the outlook for AMD and its stock heading into Tuesday’s earnings. Half of the 12 analysts tracked by Visible Alpha rate AMD stock a buy, while five assign it a “hold” rating and one recommends selling. The consensus price target is $123.50, implying a 23% return from Monday’s close. 

AMD shares were down about 2% in mid-afternoon trading on Tuesday. The stock has lost about 18% of its value since the start of the year.

Read the full article here.

–Colin Laidley

Tesla Falls as Bad News About Europe Sales Keeps Coming

8 hr 31 min ago

Tesla (TSLA) shares slid Tuesday, extending Monday’s decline as bad news continues to pile up about the electric vehicle giant’s sales in Europe.

Tesla vehicle registrations, often used as a proxy for sales, declined 46% in Germany and 62% in the United Kingdom in April compared to a year earlier, according to data released Tuesday by industry groups in the respective countries.

The data comes a day after similarly disappointing figures out of Spain, which showed that Tesla’s Model 3 and Model Y declined in April. Registrations in the month were down 55% to 81% in other European countries like Belgium and Sweden, Bloomberg  reported Tuesday.

The declines come even as Tesla has ramped up production of its revamped Model Y, which was released earlier this year and some analysts hoped would lead to a sales boost. The company said when it reported first-quarter production and deliveries last month that its changeover to manufacturing the new Model Y cost it several weeks of production.

Tesla has been the target of protests in recent months as people in the U.S. and abroad have looked to voice their displeasure about CEO Elon Musk’s involvement in the Trump administration. Musk said during last month’s earnings call that he plans to scale back his government work to one or two days per week this month, and focus more on Tesla.

Tesla shares were down 2% in recent trading, and have lost more than 30% of their value so far this year.

–Aaron McDade

Constellation Energy Soars as AI Demand Boosts Revenue

9 hr 35 min ago

Constellation Energy (CEG) shares soared Tuesday as the nuclear power utility beat operating revenue forecasts and kept its 2025 outlook steady despite weaker-than-expected profit, as it continued to benefit from AI-related electricity demand.

Constellation reported first-quarter operating revenue rose more than 10% year-over-year to $6.79 billion, while analysts at Visible Alpha were looking for $5.44 billion. However, adjusted earnings per share (EPS) of $2.14 came in below expectations. Still, the company affirmed its previous full-year adjusted EPS guidance of $8.90 to $9.60.

CEO Joe Dominguez said Constellation “is working hard to meet the power needs of customers nationwide, including powering the new AI products that Americans increasingly are using in their daily lives and that businesses and government are using to provide better products and services.” Dominguez noted that both former President Joe Biden and President Donald Trump repeatedly emphasized that “it is vital for our national security and for our economy that America lead the AI race, and I am so proud that Constellation is playing such an important role.” 

The company added that its $26.6 billion purchase of natural gas and geothermal energy firm Calpine announced in January is on track to be completed by the end of the year. 

Including today’s 11% surge, shares of Constellation Energy are up about 23% since the start of the year. The stock nearly doubled in 2024, making it one of the top performers in the S&P 500, as it benefitted from booming AI demand.

–Bill McColl

Vertex Pharmaceuticals Stock Sinks as Costs Soar

10 hr 22 min ago

Shares of Vertex Pharmaceuticals (VRTX) tumbled Tuesday, a day after the biotech firm reported worse-than-expected results as costs increased.

Vertex posted first-quarter adjusted earnings per share of $4.06, with revenue rising 3% year-over-year to $2.77 billion. Analysts surveyed by Visible Alpha were looking for $4.19 and $2.83 billion, respectively.

U.S. revenue grew 9% to $1.66 billion in part because of higher prices. However, outside the U.S. revenue dropped 5% to $1.11 billion because of a decline in sales in Russia, where the company said it is “experiencing violation of its intellectual property rights.”

Total expenses skyrocketed nearly 40% to $2.14 billion, which Vertex blamed mostly on “continued R&D investment in support of multiple mid- and late-stage clinical development programs and increased commercial investment to support the launch of JOURNAVX,” its non-opioid pain medicine. In addition, it also had a $379.0 million intangible asset impairment charge associated with its experimental diabetes treatment VX-264, which it won’t be advancing for additional clinical development.

Vertex raised the low end of its full-year revenue guidance to $11.85 billion from $11.75 billion as it sees continued growth in demand for its cystic fibrosis drugs, including the recently launched Alyftrek. The company did not change its upper end outlook of $12.0 billion.

Vertex shares were down 11% recently. Even with today’s slide, the stock is up 10% in 2025.

–Bill McColl

DoorDash Drops After Revenue Miss, Deal News

11 hr 19 min ago

DoorDash shares are sinking Tuesday after the food-delivery company posted first-quarter revenue that undershot analysts’ forecasts.

DoorDash—which separately announced that it was buying U.K. firm Deliveroo for nearly $4 billion and restaurant booking platform SevenRooms for $1.2 billion—had announced yesterday that it was moving forward its results to before markets opened Tuesday instead of after the bell Wednesday.

The San Francisco-based company reported Q1 revenue of $3.03 billion, below the $3.10 billion expectation of analysts polled by Visible Alpha. Earnings per share of $0.44 topped estimates of $0.39.

For the second quarter, DoorDash sees Marketplace GOV—the total dollar value of orders completed on its Marketplaces—of $23.3 billion to $23.7 billion and adjusted EBITDA between $600 million and $650 million. Analysts expect $23.5 billion and $633.1 million, respectively, per Visible Alpha.

DoorDash shares sank more than 8% in early trading Tuesday. The stock is still up 12% since the start of the year, handling outperforming the S&P 500.

–Nisha Gopalan

Will the Strength in Corporate Earnings Last?

12 hr 8 min ago

Some market watchers warn that investors are underestimating the pain that’s just over the horizon.

Solid earnings reports rolled in last week, helping the S&P 500 notch its longest winning streak in two decades. Growth has handily exceeded expectations so far this quarter. And share-buyback announcements have surged to a record, according to a Deutsche Bank analysis, marking another sign of strength.

The outlook for corporate America has remained resilient despite all the uncertainty   created by President Donald Trump’s tariff policies. Analysts have cut their earnings expectations for the current quarter by 2.6%—more than average but not apocalyptic, according to Deutsche Bank analysts led by Chief Strategist Binky Chadha.

But there’s a catch. “Many companies are either not incorporating the tariff impact into their guidance or suspending it given the uncertainty, and in our reading, analysts are, in turn, waiting for more clarity before adjusting numbers,” the analysts wrote in a note on Friday.

The absence of tariff-impact forecasts, they suggest, is why they see “significant potential downside to consensus earnings estimates.”

Read the full article here.

Palantir Levels to Watch Amid Post-Earnings Sell-Off

12 hr 54 min ago

Palantir Technologies (PLTR) raised its full-year outlook but disappointed investors with mostly in-line quarterly results, sending shares in the analytics software provider sharply lower in premarket trading Tuesday.

The company late Monday reported first-quarter revenue of $884 million, up 39% year-over-year and above the analyst consensus. Adjusted earnings per share of 13 cents, rose from 8 cents per share a year earlier, in line with Wall Street’s estimates. Investors may have been looking for more, after the AI darling posted blowout results in February and November.

Ahead of the highly anticipated earnings report, Palantir shares were up 64% since the start of the year and had soared more than five-fold over the past 12 months. The stock has been boosted by optimism that the software maker would benefit from increasing enterprise AI deployments and federal initiatives to improve government efficiency. 

After setting their record high in mid-February, Palantir shares consolidated within a falling wedge before breaking out above the pattern last month. More recently, the stock has rallied to its highest level since mid-February but found significant selling pressure around its record high as the relative strength index (RSI) crossed into overbought territory.

Indeed, the stock looks set to continue its retreat from this important technical  location on Tuesday, possibly forming a double top pattern in the process.

Investors should watch major support levels on Palantir’s chart around $97, $83 and $66, while also monitoring a key overhead area near $125.

Palantir shares were down 8% at around $114 in recent premarket trading.

Read the full technical analysis piece here.

–Timothy Smith

Major Stock Futures Point to Lower Open

13 hr 37 min ago

Futures tied to the Dow Jones Industrial Average were down 0.7%.

S&P 500 futures were off 0.9%.

Nasdaq 100 futures dropped 1.1%.