CrowdStrike (CRWD) delivered a quarterly outlook that fell short of analysts’ expectations, sending shares lower in extended trading Tuesday after the stock closed at a record high.
The cybersecurity firm said it expects fiscal second-quarter revenue of $1.14 billion to $1.15 billion, below the analyst consensus of $1.16 billion compiled by Visible Alpha.
CrowdStrike shares slipped more than 6% in after-hours trading. The stock was up about 43% for 2025 through the closing bell.
CrowdStrike maintained its full-year revenue projection of $4.74 billion to $4.81 billion, and raised its adjusted earnings per share estimate to $3.44 to $3.56. Wall Street had called for $4.79 billion and $3.45 per share, respectively.
In its fiscal first quarter, CrowdStrike posted revenue of $1.1 billion, up 20% year-over-year and roughly in-line with the analyst consensus. Its adjusted net income of $184.7 million, or 73 cents per share, fell from $196.8 million, or 79 cents per share, in the year-ago quarter, but beat estimates.
CrowdStrike also said its board of directors approved a share repurchase program of up to $1 billion.
The results are the company’s first since CrowdStrike said last month it planned to cut roughly 500 jobs, or 5% of its workforce.
Dollar General is serving more middle- and high-income households than it has in four years, said CEO Todd Vasos Tuesday.
The company’s core clientele remains under financial pressure, Vasos said, citing recent customer surveys.
Ollie’s Bargain Outlet also reported signs of consumer stress on Tuesday. Discount-store competitor Dollar Tree will release first-quarter results Wednesday.
A new clientele of middle- and high-income households is shopping at Dollar General.
The discount retailer hasn’t served such a high percentage of these higher-income customers in years, executives said on a quarterly earnings conference call Tuesday. The statements, from CEO Todd Vasos, echo statements made in recent months by other value-oriented retailers that have seen wealthier customers check out their offerings.
“We saw the highest percent of trade-in customers we’ve had in the last four years,” in the first quarter, CEO Todd Vasos said, according to a transcript made available from AlphaSense. Those “trade-in customers” are drawn to the value and new delivery options available at Dollar General (DG), Vasos said.
The company’s core lower-income shoppers, meanwhile, are financially stressed, according to Vasos, reiterating a theme that came up on last quarter’s call.
One-quarter of surveyed customers reported having less income than a year earlier, and 60% said they “felt the need to sacrifice some necessities in the coming year,” Vasos said Tuesday.
Ollie’s Also Notes Focus on ‘Consumer Staples’
Low prices are critical near the end of the month when some Dollar General shoppers’ money runs out, Vasos said. Shares of Dollar General were up 16% at close to nearly $113 and led S&P 500 gainers on Tuesday after the company released first-quarter results that beat Wall Street’s expectations and raised its forecast for the year ahead.
Customers at Ollie’s Bargain Outlet (OLLI) have been concentrating on “immediate needs” and buying “consumer staples,” CFO Robert Helm said on that company’s earnings conference call Tuesday.
Ollie’s Bargain Outlet also surpassed analysts’ expectations and lifted its outlook, but its shares were down 2% to almost $110 at close Tuesday.
Dollar Tree (DLTR) is scheduled to release first-quarter results before the bell on Wednesday. Analysts expect the chain to report a 3.8% year-over-year bump in comparable store sales, but warned that tariffs and sluggish discretionary spending may weigh on its performance.
The US dollar staged a modest rebound on Tuesday as investors processed a mixed set of US economic data, offering fresh insights into the Federal Reserve’s (Fed) rate path. While the rebound lifted the dollar off its 6-week low, lingering growth concerns and uncertainty over trade negotiations continued to limit further upside as President Trump doubles steel and aluminium tariffs from 25% to 50%.
On the labour front, JOLTs job openings unexpectedly rose to 7.39 million in April, above estimates and March’s revised 7.2 million, reinforcing labour market resilience. However, factory orders fell sharply by 3.7%, signalling manufacturing weakness and raising questions about broader economic momentum. Today, the ADP employment report and ISM services PMI will be crucial ahead of Friday’s non-farm payrolls report, all of which will help determine the Fed’s policy outlook and dollar’s direction.
Short-term dollar drivers remain tied to evolving Fed policy expectations, with officials signalling a preference for holding rates steady despite mounting pressure for cuts. Escalating trade tensions further complicate the outlook, with the OECD lowering its US growth forecast to 1.6% in 2025 and 1.5% in 2026, citing global uncertainty.
Beyond short-term fluctuations, a bigger concern for long-term dollar positioning is the growing unease around de-dollarization. Trump’s proposed “revenge tax”—Section 899 of his bill—introduces yet another disincentive for foreign investors, further eroding confidence in Treasury bonds and US assets.
Already, erratic trade policies and the nation’s deteriorating fiscal accounts have put pressure on dollar-denominated holdings, prompting global institutions to reassess exposure. If foreign investors perceive heightened risks, capital flow dynamics may shift further away from the dollar, reinforcing the long-term challenges facing the currency.
Eurozone inflation below target ahead of ECB meeting
George Vessey – Lead FX & Macro Strategist
The euro faced selling pressure on Tuesday, weighed down by softer-than-expected inflation data and stronger US economic releases, reinforcing short-term headwinds for the currency. A downgraded global growth outlook from the OECD and heightened political uncertainty in the Netherlands added to investor caution. Trade policy concerns also remained in focus, with the US pushing for final offers in negotiations by Wednesday, just days after renewed tariff threats.
Ahead of the European Central bank’s (ECB) meeting this Thursday we had some interesting inflation data out of Europe supporting the case for interest rates to be lowered further. Services inflation fell to 3.2% from 4%. A sharp decline in core inflation to 2.3% and headline inflation to 1.9% in May all signal that price pressures may undershoot the ECB’s target, cementing the view that the deposit rate will be cut by 25bps to 2% on Thursday. This was one factor weighing the euro but one that could be short-lived. Trade-related uncertainties have so far had a muted impact on Eurozone growth, with global commodity price declines and euro strength against the dollar helping to cushion inflationary pressures. As price concerns ease, the ECB’s focus is shifting toward economic growth, reinforcing a supportive backdrop for the euro in the medium term.
Moreover, if we do see more of a pick-up in FX volatility, the euro is expected to benefit, as it has over the past few months, as an attractive alternative to the dollar. In the very short term, holding above $1.1285 will be key if we want to see a retest of the $1.16 handle this summer. But traders are looking beyond short-term noise and positioning for long-term euro gains as the skew trades in favour of the euro across tenors, with $1.20 a potential target by year-end.
Pound slumps as dovish signals dominate
Antonio Ruggiero – FX & Macro Strategist
The pound tumbled against major pairs yesterday, wiping out early-week gains. Even against the dollar—recently the weakest link among majors—sterling struggled, with GBP/USD briefly dipping below the $1.34 handle before rebounding.
With little new on the trade front—a factor that has recently weighed on the dollar, strong U.S. jobs data and an equity rally fueled dollar demand, helping it outperform sterling.
The pound’s decline was further driven by dovish signals from the Bank of England, as Governor Andrew Bailey, Deputy Governor Sarah Breeden, and rate-setters Catherine Mann and Swati Dhingra addressed the Treasury Committee in Parliament. Their remarks reinforced expectations that the path for rate cuts remains downward but increasingly uncertain, largely due to global market volatility—particularly stemming from U.S. trade policies. As a result, markets now price in a 62% probability of a second rate cut by year-end.
Adding to the bearish pound sentiment, Mann’s earlier comments on quantitative tightening resurfaced. She warned that ongoing bond sales could stunt economic growth by keeping long-dated yields elevated, creating a policy tension between rate cuts and balance sheet reduction. Markets took the messaging as unmistakably dovish—yields dropped, and the pound followed suit.
Despite the dip, the pound’s performance remains resilient in the bigger picture. A strong domestic backdrop, combined with ongoing uncertainty in the US, should continue to support sterling, with GBP/USD still up over 1.5% year-to-date. Overall, sentiment toward the currency remains firmly bullish.
*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.
Hewlett Packard Enterprise (HPE) delivered fiscal second-quarter results that topped analysts’ expectations and narrowed its full-year profit forecast.
The server maker posted revenue of $7.63 billion, up 6% year-over-year and above the analyst consensus from Visible Alpha. Its adjusted net income of $545 million, or 38 cents per share, fell from $561 million, or 42 cents per share, in the year-ago quarter, but topped estimates.
HP Enterprise shares gained over 3% in after-hours trading. The stock was down 17% for 2025 through Tuesday’s close.
Looking ahead, HP Enterprise raised the low end of its full-year forecast for adjusted earnings per share to $1.78 from $1.70, while keeping the high end at $1.90. Wall Street had called for adjusted EPS of $1.78. Meanwhile, the company’s third-quarter revenue forecast of $8.2 billion to $8.5 billion beat analysts’ expectations, and its adjusted EPS estimate of 40 cents to 45 cents landed roughly in line.
The results come after the company reported in April that activist investor Elliott Investment built a more than $1.5 billion stake in the company. The firm has been in the spotlight recently for its influence on the operations of Southwest (LUV), which recently implemented a number of changes including ending its “two bags fly free” policy.
HP Enterprise CFO Marie Myers said the company remains focused on “achieving efficiencies and streamlining operations across our businesses.”
Jefferies raised its price target for Netflix stock to $1,400, which implies a 15% return from where shares closed Tuesday and is well above Visible Alpha’s consensus price target.
Netflix is expected to benefit from a lineup of strong releases, future price increases, and improving ad revenue, analysts said.
They estimate Netflix may bring in as much as $10 billion in ad revenue through 2030.
Netflix shares hit a record high during Tuesday’s session before closing fractionally lower.
There’s a lot for investors to tune into at Netflix, Jefferies said.
Jefferies reiterated its “buy” rating of Netflix (NFLX) stock Tuesday, saying a solid release lineup, additional price increases and ad revenue are likely to bolster shares.
Analysts raised their price target to $1,400, about 15% above its current level. Jefferies’ target is well above the average analyst price target of $1,192 compiled by Visible Alpha that implies a roughly 2% loss. The stock hit an all-time intraday high of around $1,230 on Tuesday before closing the session down fractionally at just below $1,218.
“We continue to see a favorable catalyst path for NFLX over the short, medium, and long-term,” Jefferies said, adding: “Over the next 5 yrs, we believe NFLX should sustain 20%+ EPS.”
Netflix will likely be able to retain customers in 2025 while cracking down on password sharing and collecting recently raised subscription fees, thanks to “one of the best” release lineups in recent memory, Jefferies said. Anticipated releases include new episodes of Squid Game, Stranger Things and Wednesday, the research note said.
Ad revenue is poised to grow in the coming year, and potentially create a “$10B opportunity through 2030,” Jefferies said.
Federal student loan borrowers who have not paid their loans in over 270 days and receive Social Security benefits will not see their benefits garnished during collections.
Although Social Security beneficiaries will still be required to repay their defaulted student loans, this could help many stay on their feet.
This action by the Department of Education departs from its original plan to garnish all federal and non-federal wages.
In an apparent change of course, the Department of Education said Tuesday that Social Security benefits will not be garnished for student loan borrowers who default.
In a statement to Investopedia, Ellen Keast, a Department of Education spokesperson, said the department had not garnished any benefits issued by the federal government program that provides income to retired and disabled Americans since the resumption of student loan collections. Keast also said the Department has “put a pause” on any future garnishments, confirming a report by CNBC.
“The Trump Administration is committed to protecting Social Security recipients who oftentimes rely on a fixed income,” Keast said.
A Change In the Education Department’s Original Policy
Not withholding a portion of Social Security payments from beneficiaries who have defaulted on their student loan debt is a shift from the department’s original statement on May 5 about its collections efforts.
Originally, the department said if borrowers failed to bring their accounts into good standing by the summer, it would restart the Treasury Offset Program. Under that program, the government withholds portions of any federal payments, including up to 15% of Social Security. The department had already started garnishing federal tax refunds in mid-May.
This shift could be an effort to align with President Donald Trump’s campaign promise to keep Social Security benefits intact.
Why Does Garnishment on Social Security Matter?
Pausing Social Security payments could help many, as delinquent and defaulted borrowers are getting older on average.
According to data from the Federal Reserve Bank of New York, more than a quarter of borrowers 50 years and older are past due on their loans, likely driven by the rise in Parent PLUS loans, which parents or grandparents are still paying off.
More than 450,000 borrowers have defaulted on student loans and are receiving Social Security benefits, according to estimates by the Consumer Financial Protection Bureau.
Social Security beneficiaries will still be required to pay back their defaulted student loans. Keast told Investopedia that the department would continue to reach out to borrowers about affordable repayment options and work to get them back into good standing.
Shares in AI darling CoreWeave surged 25% to a fresh record high on Tuesday, one day after the cloud computing provider and Nvidia partner signed a long-term data center leasing deal with Applied Digital.
The stock broke out from an ascending triangle on Tuesday that had been in play since late May, possibly paving the way for a continuation move higher.
Bars pattern analysis projects a potential upside target of around $200 and indicates the trend higher could last until next month.
Investors should watch key support levels on CoreWeave’s chart around $122, $97 and $73.
Since the stock went public in late March, it has surged 276% above its initial public offering price of $40. The stock surged 25% to a record closing high of $150.48 on Tuesday, after gaining 8% the previous session, amid a broader upturn for stocks tied to the AI boom.
Below, we take a closer look at CoreWeave’s one-hour chart and apply technical analysis to identify key price levels that investors will likely be watching.
Ascending Triangle Breakout
CoreWeave shares broke out from an ascending triangle on Tuesday that had been in play since late May, possibly paving the waying for a continuation move higher. Importantly, the move occurred on above-average volume, signaling buying conviction by larger market players, such as institutional investors and hedge funds.
Let’s apply bars pattern analysis to predict where CoreWeave’s price may be headed next and also identify support levels worth watching during potential retracements.
Bars Pattern Analysis
Bars pattern analysis analyzes prior trends on the chart to project how future directional moves may play out. When applying the tool to CoreWeave’s chart, we extract the price bars comprising the stock’s strong rally that followed a mid-May pullback and overlay it from the ascending triangle’s breakout point.
The analysis forecasts a potential upside target of around $200 and indicates the move higher may last until early next month if a similar trend emerges.
Key Support Levels Worth Watching
During profit-taking, investors should initially watch the key $122 level. This location on the chart would likely provide strong support near the ascending triangle’s top trendline, which may flip from a region of prior resistance into future support.
The bulls’ inability to defend this level could see the shares retreat to around $97. Investors may seek entry points in this area near the low of the ascending triangle, which also closely aligns with a minor peak last month that preceded a brief dip in the stock.
Finally, a deeper retracement in the stock opens the door for a retest of lower support at the $73 level. CoreWeave shares may attract buying interest in this area around the high of a mid-May rally and nearby 200-day moving average.
The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.
As of the date this article was written, the author does not own any of the above securities.
Deutsche Bank analysts led by Chief US Equity & Global Strategist Binky Chadha on Tuesday raised their year-end S&P 500 target to 6,550.
That suggests about 10% upside from Tuesday’s close. And it would be nearly 7% above the index’s record close from earlier this year.
Investor positioning, they said, is close to neutral and assumes tariffs will be a slight drag on earnings growth this year.
Some Wall Street forecasters see stocks closing out 2025 at record highs—despite a shaky start to the year.
Deutsche Bank analysts led by Chief US Equity & Global Strategist Binky Chadha on Tuesday raised their year-end S&P 500 target to 6,550, a number suggesting about 10% upside from Tuesday’s close. That would be nearly 7% above the index’s record close from earlier this year.
Investor positioning, they said, is close to neutral and assumes tariffs will be a slight drag on earnings growth this year. “However, if there is confidence that tariff impacts will be modest and temporary, we expect discretionary investors to look through any slowing in growth and turn overweight in anticipation of a rebound,” they wrote.
The analysts expect robust corporate demand to shrink the supply of stock on public markets. They forecast companies will spend $1.1 trillion on stock buybacks this year, thanks to resilient earnings.
Deutsche Bank raised its estimate of the S&P 500’s aggregate full-year earnings per share to $267 from $240. The firm entered the year forecasting index-level earnings of $282 per share. But it slashed that outlook in mid-April shortly after President Trump paused “Liberation Day” tariffs for 90 days and lifted rates on Chinese goods to 145% at a minimum. Earnings, they estimated, would suffer from a prohibitively high effective tariff rate and the lingering possibility of a prolonged trade war.
The outlook improved last month when the U.S. and China agreed to slash their respective tariff rates while officials negotiated a more comprehensive trade deal. Tensions between the world’s two largest economies linger: This weekend each party accusing the other of violating their tentative agreement.
Still, the White House’s approach to tariff negotiations has some market watchers feeling optimistic. Deutsche Bank’s analysts take the White House’s decision to pause “Liberation Day” tariffs just hours after they took effect, “before the emergence of any legal barriers or economic or political pain,” as a sign that “if negative impacts of tariffs do materialize, we will get further relents.”
As such, Deutsche Bank expects this year’s rally to 6,550 to benefit investors who bet on Trump relenting. “Despite the rhetoric to the contrary, the 2018-2019 dynamic of repeated cycles of escalation and de-escalation predicated on the market looks to be alive and well.”
Onsemi (ON) shares surged Tuesday as the semiconductor firm’s CEO said he feels “good about the second half,” anticipating improving demand in several key markets.
The stock added 11% to close at just over $47. The gains came amid a broader rally for chip stocks as investors awaited new developments in trade talks. (Read Investopedia‘s full coverage of today’s trading here.) Despite Tuesday’s surge, shares of Onsemi have lost roughly one-quarter of their value since the start of the year.
CEO Hassan El-Khoury told attendees at a tech conference Tuesday that the company has seen signs of recovery in the industrial market, its second-largest, and expects auto demand to bottom in the second quarter before rebounding, with growth boosted by the company’s success in supplying chips for electric vehicle manufacturers in China.
The company will “benefit from a broad-based recovery based on the signs that we see even for the second half of this year,” El-Khoury said.
Onsemi last month reported first-quarter revenue that fell 22% year-over-year to $1.45 billion and warned about a “challenging macroeconomic environment,” sending shares tumbling. Today’s climb has the stock back at levels last seen in March.
U.S. data centers are expected to consume 65 gigawatts of power between 2025 and 2028, about 45 GW more than existing capacity can accommodate, according to Morgan Stanley.
Due to a mix of regulatory and economic hurdles, analysts expect AI providers and data-center operators to deploy “temporary, mobile generation” solutions to meet surging demand.
Companies that make fuel cells, mobile natural gas turbines, and small modular nuclear reactors are some of the potential beneficiaries of this next phase of the AI infrastructure buildout.
AI data centers are expected to consume a massive amount of energy in the coming years, and meeting that need could be a boon to some investments, according to Morgan Stanley.
Morgan Stanley forecasts U.S. data centers will consume 65 gigawatts of power between 2025 and 2028, but available capacity could fall short by about 45 GW. To make up the difference, “all potential ‘de-bottlenecking’ solutions will need to be drawn upon,” the analysts wrote in a note on Tuesday.
Possible solutions, they say, include converting crypto mining operations into data centers, building data centers at large nuclear power plants, and constructing new natural gas-fired power plants.
But all of that is easier said than done. First, the rising price of bitcoin could discourage miners from converting their mining facilities or selling excess power to data centers. Second, concerns about stressing regional power grids could compel regulators to mandate that new data centers not come online until additional power sources are connected to the grid.
That’s why Morgan Stanley expects to see hyperscalers and data-center owners adopt a “bridge” approach, “in which temporary, mobile generation is deployed” to address the regulatory and economic hurdles to quickly ramping power capacity.
Nuclear, Natural Gas Generator Providers May Benefit
Small modular nuclear reactors are one solution that gives companies the flexibility they’ll need. SMRs have the added benefit of providing reliable carbon-free energy that aligns with Big Tech’s emission-reduction goals. However, small reactors are a nascent, “next decade technology,” Morgan Stanley analysts said.
For that reason, cloud hyperscalers like Microsoft (MSFT), Alphabet (GOOG), Amazon (AMZN), and Meta Platforms (META) increasingly have turned to existing nuclear infrastructure during the AI buildout of the past few years. Meta on Tuesday signed a 20-year deal with Constellation Energy (CEG), America’s largest nuclear power provider, to sustain its AI. Constellation and Microsoft last year agreed to bring back online a reactor at Pennsylvania’s Three Mile Island.
With SMRs still a ways off, new data centers are likely to rely on small, mobile natural gas generators from the likes of GE Vernova (GEV) and Caterpillar (CAT).
Hyperscalers may also buy from fuel cell manufacturers like Bloom Energy (BE), whose electricity servers are a low-carbon way to convert natural gas, biofuel, or hydrogen into power. These fuel cells, the analysts said, offer the benefit of short lead times, reliable equipment, the ability to add redundant capacity in the event of a unit failure, and exceptional flexibility in terms of power output.
“We believe [Bloom Energy] could quickly increase manufacturing capacity to ~3 GW per year, with the potential for further increases in output if demand grows,” the analysts wrote. “Bloom Energy is in our view one of the under-appreciated beneficiaries of the rapid growth in data center power demand globally.”
