Market Concerns - ASML's clients are more worried about the global trade war than in April [1] Executive Commentary - CFO Roger Dassen commented on clients' increased concerns [1]

Trade War Concerns - Concerns are reviving that a global trade war will reduce crude consumption [1] Tariff Impact - Donald Trump's recent barrage of tariff letters contains some of the highest tax rates yet [1]

Financial Performance - Delta Airlines Q2 earnings beat expectations, although expectations had been lowered [1] - Full-year guidance is now $525 to $625, lower than the initial expectation of at least $735 in January [1] Market Trends & Industry Dynamics - Main cabin demand is down 5%, indicating price sensitivity among customers [3] - Industry capacity in the main cabin domestically is expected to decrease significantly starting in August [3] - Delta plans to keep domestic capacity flat to down, focusing growth on international routes and premium cabins [5] - Europe has been a strong market, but a weak dollar and negative tourism headlines are having a modest impact [5][6] - Inbound travel from Europe to the US represents 20% of the mix, which can be offset by increased American outbound travel [7] Future Outlook - Fall bookings for international travel look strong, suggesting a seasonal shift in travel patterns [9] - International travel remains a key area for future growth [9]

Market Overview - The S&P 500 has reached an all-time high of 6,173.07 points, up 0.5% on Friday, surpassing its previous record of 6,147.43 points [3][8] - The index has rebounded over 20% from its April lows and has gained nearly 5% year to date, driven by easing geopolitical tensions and hopes for Federal Reserve rate cuts [6][8] Geopolitical and Economic Factors - Geopolitical tensions, particularly between Iran and Israel, have eased, contributing to investor confidence [6] - The Federal Reserve is expected to resume rate cuts, with officials hinting at a potential cut as early as July, which could further support the S&P 500 rally [7] Company Highlights Adobe Inc. (ADBE) - Adobe is a leading software company with an expected earnings growth rate of 11.9% for the current year, and its earnings estimate has improved by 1.2% over the past 60 days [9] - ADBE currently holds a Zacks Rank of 2 (Buy) [9] Altria Group, Inc. (MO) - Altria is adapting to industry changes by expanding into the smokeless category, with an expected earnings growth rate of 4.9% for the current year and a 1.7% improvement in earnings estimates over the past 60 days [10] - MO also holds a Zacks Rank of 2 [10] Arista Networks, Inc. (ANET) - Arista provides cloud networking solutions and has an expected earnings growth rate of 13.2% for the current year, with a 4% improvement in earnings estimates over the past 60 days [12] - ANET is currently rated as a Zacks Rank 2 [12] Atmos Energy Corporation (ATO) - Atmos Energy is involved in regulated natural gas distribution and storage, serving approximately 3.3 million customers [13] - The company has an expected earnings growth rate of 6% for the current year, with a 0.6% improvement in earnings estimates over the last 60 days [14] - ATO also carries a Zacks Rank of 2 [14]

Company Overview - Hasbro has cut 3% of its global workforce, amounting to approximately 150 employees, as part of a cost-cutting initiative due to higher US tariffs on toys imported from China [1][4] - The company had around 4,985 employees globally according to its fiscal 2024 annual filing [1] Sourcing and Market Strategy - Hasbro sources about half of its toys and games sold in the US from China and is accelerating efforts to diversify sourcing to reduce reliance on China [2] - The toy industry is facing pressures from a global trade war and has been struggling with weak demand [2] Financial Impact and Restructuring - CEO Chris Cocks indicated that tariffs lead to higher consumer prices, potential job losses, and reduced profits for shareholders [3] - Hasbro is reassessing logistics routes and manufacturing as part of its strategy to adapt to increased costs [3] - The company previously announced a plan to cut 900 jobs globally in December 2023, following a reduction of 15% of its workforce due to weaker sales [3] Business Performance - In April, Hasbro reported better-than-expected quarterly results, driven by a shift towards digital and licensed gaming businesses, which helped attract younger customers [5]

Core Viewpoint - Best Buy has adjusted its revenue and profit guidance for fiscal 2026 due to the impact of higher tariffs, reflecting a challenging retail environment [2][3] Financial Performance - Best Buy's net income for the three-month period ending May 3 declined by approximately 18% to $202 million from $246 million in the same period last year [5] - First-quarter revenue dropped from $8.85 billion in the year-ago period [5] - Comparable sales fell by 0.7% year-on-year in the U.S., with declines in categories like home theaters and appliances, although there was growth in computing, cell phone, and tablet categories [6] Revenue Guidance - The company downgraded its revenue expectations for fiscal 2026 to a range of $41.1 billion to $41.9 billion, down from a previous range of $41.4 billion to $42.2 billion [2] Tariff Impact and Strategy - Best Buy has increased prices on some items due to higher costs from tariffs, with changes implemented by mid-May [2] - The company has reduced its reliance on Chinese imports, with China now accounting for 30% to 35% of its merchandise, down from 55% [7][8] - About 25% of merchandise comes from the U.S. or Mexico, which are not subject to tariffs, while the remaining 40% is sourced from other countries like Vietnam, India, South Korea, and Taiwan, which face a 10% tariff [7][8] Operational Adjustments - Best Buy has encouraged vendors to manufacture in multiple countries, negotiated lower costs, and adjusted its merchandise mix [9] - The company is focusing on improving customer experience, enhancing digital and in-store integration, and expanding its third-party marketplace and retail media businesses [9] Market Trends - Following a pandemic-related boost in sales for home offices and entertainment centers, Best Buy has faced declining sales over the past three years [10] - The lack of hit tech products has been a challenge, but new product launches, such as the Nintendo Switch 2, are anticipated to attract customers [11] - Smartphone sales have shown strength, with increased staffing at Best Buy stores by Verizon and AT&T to meet demand [12]

Market Overview - Wall Street experienced a strong bull run in 2023 and 2024, but 2025 has shown mixed results due to concerns over persistent inflation and the Federal Reserve's uncertain stance on interest rates after a 1% cut in the benchmark lending rate last year [1] - Severe volatility has affected Wall Street since early April, primarily due to the implementation of reciprocal tariff policies by the Trump administration, with baseline tariffs at 10% but actual rates exceeding 70% for several major trading partners [2] - Retaliatory tariffs from other countries have raised fears of a global trade war, although some trade negotiations have been settled and others are ongoing [3] Company Highlights Philip Morris International Inc. (PM) - Philip Morris has shown strong pricing power and is expanding its smoke-free product portfolio, aiming to become substantially smoke-free by 2030 [7] - The company anticipates robust growth in 2025, with a projected 2% increase in volume and smoke-free products expected to grow by 12-14% [8] - Expected revenue and earnings growth rates for the current year are 8.1% and 13.7%, respectively, with a stock price increase of 44.7% year to date [9] Sprouts Farmers Market Inc. (SFM) - Sprouts Farmers is focusing on product innovation, e-commerce, and private label offerings, which have contributed to better-than-expected fourth-quarter 2024 results [10] - The company expects net sales to rise between 10.5% and 12.5% in 2025, with comparable sales anticipated to increase by 4.5-6.5% [11] - Expected revenue and earnings growth rates for the current year are 13.7% and 35.5%, respectively, with a stock price surge of 32.2% year to date [12] Newmont Corp. (NEM) - Newmont is progressing with growth projects, including the Tanami expansion and the acquisition of Newcrest, which enhances its portfolio and synergies [13] - The Ahafo North project has received full funding approval, with commercial production expected to start in the second half of 2025, involving an investment of $950 million to $1,050 million [14] - Expected revenue and earnings growth rates for the current year are 2% and 12.6%, respectively, with a stock price increase of 40.5% year to date [15]

Harley-Davidson on Thursday suspended its full-year forecast as President Trump’s tariffs fuel economic uncertainty.“Due to the uncertain global tariff situation and macroeconomic conditions, we are withdrawing our full year 2025 financial outlook,” the motorcycle maker said in a statement.The company estimated its tariff bill could reach $175 million this year, even though most of its suppliers are in the US, because it still imports parts from China, which face a hefty 145% tariff.Harley-Davidson suspende ...

The Zacks Mining – Gold industry is housed within the broader Zacks Basic Materials sector. The Q1 earnings picture for this sector looks glum. Basic Materials is among the Zacks sectors that are expected to see the biggest decline in earnings in the first quarter. Overall earnings for the space are projected to fall 17.8% on 0.7% lower revenues, per the latest Earnings Preview. Gold mining companies’ first-quarter results are expected to reflect the benefits of higher gold prices and efforts to boost opera ...

Core Insights - The global trade war has negatively impacted many stocks in the past quarter, but a stealth bull market is emerging in certain overseas stocks, particularly in Latin America, which has significantly outperformed in 2025 [1]. Group 1 - Latin American equities have shown strong performance, indicating potential investment opportunities in this region [1]. - The article suggests that despite broader market challenges, specific sectors or regions may still present favorable conditions for investors [1]. Group 2 - The investing group led by Ian offers various features including market analysis, trade alerts, and direct access to insights, which can be beneficial for investors looking for new opportunities [2]. - Ian Bezek, with a decade of experience in Latin America, provides valuable on-the-ground research for investors interested in markets like Mexico, Colombia, and Chile [3].