Let's talk markets now. Kate Moore is chief investment officer at City Wealth. Kate, welcome to the show.Good to see you. Yeah, good morning. Uh, where do you stand on the rally here.Uh, sitting pretty much at record highs for the NASDAQ and the S&P 500. Yeah, so I've been saying I've been pretty uncomfortable with the rally in part because a lot of it has not been driven by fundamentals. We know against the backdrop of this rally, there's been a a decline in terms of earnings expectations.as we continue to ...

Core Insights - The S&P 500 index is expected to see Q2 earnings increase by +4.9% year-over-year, driven by a +3.9% rise in revenues [3][4] - Earnings estimates for Q2 have faced significant downward revisions, particularly in the Tech and Finance sectors, which together account for 51% of total S&P 500 earnings [4][6] - Despite the overall pressure on estimates, three sectors are projected to achieve double-digit earnings growth: Aerospace (+15.1%), Tech (+11.8%), and Consumer Discretionary (+105.6%) [4][5] Sector Performance - 13 out of 16 Zacks sectors have seen earnings estimates decline since the start of Q2, with notable drops in Transportation, Autos, Energy, Construction, and Basic Materials [5] - The only sectors with upward revisions are Aerospace, Utilities, and Consumer Discretionary [5] - The Tech sector's earnings are expected to grow by +11.8% in Q2, although this is a reduction from earlier estimates [6][11] Future Outlook - The Q2 earnings season is anticipated to gain momentum with major financial institutions like JPMorgan, Bank of America, and Wells Fargo reporting [4] - While current estimates for 2025 Q2 have been under pressure, there have not been significant changes to estimates for the following two years [16] - The macroeconomic environment remains uncertain, particularly regarding tariff impacts, which could continue to influence earnings estimates [16]

Core Viewpoint - Best Buy Co Inc reported disappointing first-quarter 2026 earnings, with sales and adjusted earnings falling short of analyst expectations [1][2]. Financial Performance - First-quarter sales decreased by approximately 1% year-over-year to $8.77 billion, missing the analyst consensus estimate of $9.22 billion [1]. - Adjusted earnings were reported at $1.15, below the consensus of $1.31 [2]. - The gross profit margin remained stable at 23%, while the operating margin declined from 3.5% to 2.5% [2]. Guidance and Outlook - The company updated its full-year guidance, expecting annual comparable sales growth to range from a decline of 1% to an increase of 1%, with an adjusted operating income rate similar to last year at approximately 4.2% [2][4]. - For Q2 FY26, comparable sales are expected to be slightly down compared to last year, with an adjusted operating income rate projected at approximately 3.6% [3]. - Fiscal 2026 adjusted earnings guidance was lowered from a range of $6.20-$6.60 per share to $6.15-$6.30 per share, compared to the consensus of $6.13 per share [3]. - Sales guidance was also reduced from $41.4 billion to $42.2 billion down to a new range of $41.1 billion to $41.9 billion, with the consensus around $41.44 billion [3]. Revenue Breakdown - Domestic revenue of $8.13 billion decreased by 0.9%, primarily due to a 0.7% decline in comparable sales [4]. - The decline in comparable sales was driven by decreases in home theater, appliances, and drones, partially offset by growth in computing, mobile phone, and tablet categories [4]. - Domestic online revenue increased by 2.1% on a comparable basis to $2.58 billion, representing 31.7% of total domestic revenue compared to 30.8% last year [4].

Macy's, Inc. M will release its first-quarter earnings results before the opening bell on Wednesday, May 28. Analysts expect the New York-based company to report quarterly earnings at 15 cents per share, down from 27 cents per share in the year-ago period. According to data from Benzinga Pro, Macy's projects to report quarterly revenue at $4.43 billion, compared to $4.85 billion a year earlier. On May 16, the company's board of directors declared a regular quarterly dividend of 18.24 cents per share. Macy's ...

Home Depot, Inc. HD will release its first-quarter earnings results before the opening bell on Tuesday, May 20. Analysts expect the Atlanta, Georgia-based company to report quarterly earnings at $3.59 per share. That's down from $3.63 per share in the year-ago period. According to data from Benzinga Pro, Home Depot projects to report quarterly revenue at $39.14 billion, compared to $36.42 billion a year earlier. The company has beaten analyst estimates for revenue in two straight quarters and six of the las ...

Core Viewpoint - Nvidia's stock has historically presented buying opportunities after significant declines, and the current situation appears to be similar, with a potential rebound expected before the earnings announcement on May 28 [1]. Group 1: Earnings Performance - Nvidia has a strong track record of exceeding earnings expectations, having beaten consensus estimates by at least 5% in each of the last four quarters [3]. - The upcoming earnings report on May 28 is anticipated to act as a catalyst for the stock, as quarterly updates often influence share prices positively [2]. Group 2: Customer Insights - Major customers like Amazon, Microsoft, and Google have expressed positive sentiments regarding Nvidia's products, indicating strong demand for its AI chips and GPUs [6][7][9][10]. - Amazon's CEO noted aggressive installations of Nvidia AI chips, while Microsoft highlighted demand outpacing capacity for AI services, suggesting a favorable outlook for Nvidia [7][9]. Group 3: Product Demand - Nvidia's new Blackwell GPUs are experiencing "extraordinary" demand, with $11 billion in revenue reported, marking the fastest product ramp in the company's history [11]. - The company plans to launch the Blackwell Ultra GPU in the second half of the year, with expectations for a positive outlook regarding next-generation chips in the upcoming earnings report [12].

CAVA Group, Inc. CAVA will release its first-quarter earnings results after the closing bell on Thursday, May 15. Analysts expect the company to report quarterly earnings at 15 cents per share, up from 13 cents per share in the year-ago period. According to data from Benzinga Pro, CAVA projects quarterly revenue at $327.71 million, compared to $259.01 million a year earlier. On March 26, S&P Dow Jones Indices said Cava Group will replace Altair Engineering in the S&P MidCap 400. CAVA shares fell 0.2% to clo ...

Sabre Corporation (SABR) reported break-even first-quarter 2025 bottom line against the Zacks Consensus Estimate of earnings of 1 cent per share. The company had incurred a loss of 2 cents per share in the year-ago quarter.Sabre reported revenues of $776.62 million for the quarter ended March 31, 2025, which missed the Zacks Consensus Estimate by 1.77%. The figure declined 0.8% year over year.Sabre’s Q1 in DetailThe Travel Solutions segment’s revenues declined 2% year over year to $702.13 million. The growt ...

Ford Motor Company F will release earnings results for the first quarter, after the closing bell on Monday, May 5.Analysts expect the Dearborn, Michigan-based company to report quarterly earnings at 2 cents per share, down from 49 cents per share in the year-ago period. Ford projects to report quarterly revenue at $35.79 billion, compared to $39.89 billion a year earlier, according to data from Benzinga Pro.Ford Motor has reportedly terminated the development of an advanced electrical architecture that powe ...

Core Insights - Garmin Ltd. reported first-quarter 2025 pro forma earnings of $1.61 per share, missing the Zacks Consensus Estimate by 2.41%, but showing a year-over-year improvement of 13.4% [1] - Net sales were $1.54 billion, which also missed the Zacks Consensus Estimate by 2%, yet increased by 11.1% compared to the same quarter last year [1][2] Segment Performance - **Outdoor Segment**: Contributed 28.6% of net sales with $438.5 million, up 20% year-over-year, driven by strong adventure watch sales, and an operating income of $128.8 million with a 29% margin [3] - **Fitness Segment**: Accounted for 25.1% of sales at $384.7 million, reflecting a 12% year-over-year increase, supported by demand for advanced wearables, with an operating income of $77.7 million and a 20% margin [3] - **Aviation Segment**: Generated $223.1 million in sales, a 3% increase year-over-year, with an operating income of $48.4 million and a 22% margin [4] - **Marine Segment**: Sales were $319.4 million, down 2% year-over-year due to promotional timing, with an operating income of $86.9 million and a 27% margin [4] - **Auto OEM Segment**: Achieved $169.3 million in sales, a 31% year-over-year increase, but reported an operating loss of $8.9 million with an 18% gross margin [5] Financial Metrics - Garmin's gross margin for Q1 2025 was 57.6%, a decrease of 50 basis points, while operating expenses grew by 10% to $552 million [6] - Operating income rose to $333 million, a 12% year-over-year increase, with a slight expansion in operating margin to 21.7% [6] - As of March 29, 2025, Garmin held $2.67 billion in cash and marketable securities, an increase from $2.5 billion in the previous quarter [7] - Operating cash flow for Q1 2025 was $420.8 million, with free cash flow at $380.7 million [7] Guidance and Outlook - Garmin expects fiscal 2025 revenues to reach $6.85 billion, an increase from previous guidance of $6.80 billion, while the Zacks Consensus Estimate indicates a year-over-year decline of 13.4% [8] - The company anticipates pro forma EPS of $7.80, with the Zacks Consensus Estimate at $1.65, suggesting a year-over-year decline of 16.2% [8] - Expected gross margin for 2025 is 58.5%, with an operating margin of 24.8% and a pro forma effective tax rate of 16.5% [9]