Archives May 2025

Major U.S. equities indexes moved lower to kick off a week of trading that will feature the latest policy decision by the Federal Reserve, which has been facing pressure from President Donald Trump to lower interest rates.

The S&P 500 fell 0.6% on Monday, ending its streak of nine consecutive positive trading days. After trading higher for much of the session, the Dow ran out of steam in the afternoon to end with a loss of 0.2%, while the Nasdaq finished 0.7% lower.

Zimmer Biomet (ZBH) shares plunged nearly 12%, easily losing the most of any stock in the S&P 500 on Monday. The producer of orthopedic implants, known for its artificial knee and hip joints, reduced its earnings outlook for 2025, noting that tariffs could drag down operating profits by $60 million to $80 million over the full year. The company indicated that it is exploring options to mitigate the potential tariff impact, including possible shifts in the countries where it sources and manufactures its products.

Meanwhile, the entertainment business became the latest industry to be caught in the trade-war crosshairs after Trump announced a 100% tariff on foreign-made films.

Although ON Semiconductor (ON) topped first-quarter profit estimates and essentially matched sales expectations, the power and sensing chipmaker’s revenue fell 22% year-over-year, reflecting softness in automotive markets. The company noted that it faces macroeconomic challenges and anticipated price declines in parts of its business. Onsemi shares fell 8.4%.

Tyson Foods (TSN) reported lower-than-expected sales for its fiscal second quarter, and shares of the chicken, pork, and beef processor dropped 7.8%. Tyson pointed to a significant earnings impact from setting aside approximately $340 million related to the settlement of an antitrust investigation regarding alleged price-fixing in the pork industry. Although adjusted earnings per share for the period exceeded expectations, the company also provided relatively underwhelming full-year sales guidance.

Shares of internet domain provider GoDaddy (GDDY) advanced 3.4%, securing the S&P 500’s top daily performance. With Monday’s gains, GoDaddy stock clawed back a portion of the steep losses posted Friday in the wake of the company’s quarterly earnings release. Although the web hosting company fell short of expectations on annual recurring revenue and analysts raised concerns about its valuation, GoDaddy’s revenue and EPS topped estimates.

EQT Corp. (EQT) shares jumped 3.2% after UBS upgraded the natural gas producer’s stock to “buy” from “neutral” and lifted its price target. Analysts highlighted a positive outlook for natural gas in coming years, robust revenue growth and gross profit margins, and operational strength following EQT’s acquisition of pipeline operator Equitrans Midstream Corporation.

Oil prices moved lower as major producers agreed to additional output increases. The likelihood of lower jet fuel costs helped boost airline stocks. Shares of Delta Air Lines (DAL) gained 3%.

After the major indices experienced their worst drops in years in the beginning of April, they’ve since bounced back strongly. In fact, the S&P 500 and Dow recorded gains nine days in a row – the first time the S&P 500 has rallied for nine consecutive days in 20 years.

The fact is a handful of key economic reports, combined with signs of potential progress on tariffs, as well as a number of solid earnings reports, all gave Wall Street reason to cheer.

But this week, it will be all about the Federal Reserve. Tuesday kicks off the Federal Open Market Committee (FOMC) meeting, and an interest rate decision is expected on Wednesday.

Right now, the CME FedWatch Tool shows a 96.9% chance that the Fed will keep interest rates the same. Personally, I think the Fed is clinically insane if they don’t cut interest rates on Wednesday. (I’ve explained why in previous Market 360 articles here and here.) And if they don’t, it tells me they aren’t looking at the data. Regardless, I’m predicting four rate cuts this year – largely due to the global collapse in interest rates in Europe.

Now, given all of the uncertainty, not to mention the volatility, you may be wondering whether you should practice the old saying and, “Sell in May and go away.”

So, in this week’s episode of Navellier Market Buzz, I’ll explain what that means – and why I think that’s bad advice. We’ll also preview some key economic reports to watch this week, along with some major companies that are set to announce. Plus, I will answer a couple of questions from subscribers, including one about Super Micro Computer, Inc. (SMCI).

Click the image below to watch now!

If you like what you saw, don’t forget to subscribe to my YouTube channel here so you can be notified when I upload a new video. You can also submit any questions you have so they can be featured in the next episode!

A New Economic Shift – How You Can Prepare

As I said, this week is all about the Fed. But many don’t realize that there is another economic shift happening behind the scenes, one that is unlike anything I’ve seen in my four decades on Wall Street.

I call it The Economic Singularity.

We’re talking about an economic transformation so profound it could create explosive wealth for those who understand it. But for those that don’t, it could bring devastating financial consequences. 

I don’t say this to scare you, folks. In fact, I want to make sure you know exactly what’s coming and how you can prepare for it the right way.

That’s why I’ve prepared this new video to explain why this matters and what you can do to stay safe in this economic shift that could reshape America’s financial landscape as we know it.

Click here to watch my special presentation now.

Sincerely,

Louis Navellier

Editor, Market 360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Super Micro Computer, Inc. (SMCI)

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Palantir (PLTR) reported quarterly revenue that beat analysts’ expectations and raised its full-year outlook on strong demand for its artificial intelligence software.

The company reported first-quarter revenue of $884 million, up 39% year-over-year and above the analyst consensus from Visible Alpha. Adjusted earnings per share of 13 cents, rose from 8 cents per share a year earlier, in line with Wall Street’s estimates. 

Palantir projected second-quarter sales of $934 million to $938 million, and full-year revenue of $3.89 billion to $3.9 billion, up from $3.74 billion to $3.76 billion previously. Wall Street analysts had called for $898.16 million for the second quarter and $3.75 billion for the full year.

“The rush towards large language models, as well as the foundational software architecture that is capable of making them valuable to large organizations, has turned into a stampede,” CEO Alex Karp said in a letter to shareholders.

“We believe our results are indicative of a revolution sweeping across our business and industry,” he said.

Last month, the North Atlantic Treaty Organization last month said it acquired Palantir’s AI-enabled military system, helping ease investor concerns that Europe may rely less on American defense contractors like Palantir amid an uncertain trade outlook.

Palantir shares wavered between gains and losses in after-hours trading. The stock was up over 63% for 2025 through Monday’s close.

The four U.S. states with the cheapest 30-year mortgage refinance rates Friday were New York, Florida, California, and Texas, which also happen to be the states with the largest populations, accounting for about 30% of the national population.

After those four states, the lowest refi rates are available in Massachusetts, Georgia, North Carolina, Illinois, Minnesota, and Tennessee. The ten lowest-rate states registered averages between 6.97% and 7.11%.

Meanwhile, the states with the highest Friday refinance rates were West Virginia, Washington, D.C., Alaska, South Carolina, South Dakota, Hawaii, North Dakota, and Oregon. The range of 30-year refi averages for these states was 7.19% to 7.26%.

Mortgage refinance rates vary by the state where they originate. Different lenders operate in different regions, and rates can be influenced by state-level variations in credit score, average loan size, and regulations. Lenders also have varying risk management strategies that influence the rates they offer.

Since rates vary widely across lenders, it’s always smart to shop around for your best mortgage option and compare rates regularly, no matter the type of home loan you seek.

National Mortgage Refinance Rate Averages

Rates for 30-year refinance mortgages had been bobbing modestly for a week. But Friday saw the the national rate average shoot up 11 basis points to 7.14%. In early April, 30-year refi rates surged a dramatic 40 basis points in a week to notch a peak of 7.31%—the highest level since July 2024.

In March, however, the 30-year refinance average sank to 6.71%, its cheapest level of 2025. And back in September, rates plunged to a two-year low of 6.01%.

Tom Yeung here with your Sunday Digest. 

Last month, I wrote about five stocks to “buy the dip.” Our quantitative systems signaled April’s selloff had gone too far and that low prices would be enough to trigger a market rally. 

Since then, these five firms have performed splendidly, largely outperforming the S&P 500’s 8% rise. 

• Salesforce Inc. (CRM) +16% 
• Akamai Technologies Inc. (AKAM) +13% 
• Advanced Micro Devices Inc. (AMD) +16% 
• Moderna Inc. (MRNA) +6% 
• Celanese Corp. (CE) +13% 

InvestorPlace Senior Analyst Luke Lango believes this is just the start.  

He predicts a major event on May 7 will trigger a flood of cash – as much as $7 trillion – to rush back into U.S. stocks. It’s a catalyst that could change the entire market dynamic and create a new summer “panic” of the sort not seen since 1997. 

This is why he held a special 2025 Summer Panic Summit on Thursday. At this event, Luke explained why he believes this catalyst on May 7 will be a game-changer. Plus, he revealed a new set of stocks that he believes are primed to lead the next wave of growth. (You can watch a replay of the event here.)  

Now, I can’t tell you what this catalyst is. You’ll have to see it for yourself in Luke’s special presentation. But if this panic buying he describes does take off, several of my top long-term picks are certain to benefit.  

Let’s revisit two of them today – and a new one as well… 

The Leveraged Play 

The first is Sabre Corp. (SABR), one of the three firms that run the world’s Global Distribution System (GDS) for hotels and flights. Virtually all travel agents and online booking systems use GDS to book flights since it’s the only platform with real-time data on available seats, rooms, and prices. That means industry profits are generally stable and very high. (Even Alphabet Inc. [GOOGL] failed to create a rival system and now uses Sabre to power Google Flights.) 

That’s why private equity decided to take Sabre off the public markets in 2007. They saw a cash cow that could be loaded with debt to make large profits even bigger. And it worked, at least in the short run.  

Sabre returned to public markets in 2014 with 50% higher net income, and the stock surged another 70% the following year as profits continued to climb. 

Then, two things happened. 

• Covid-19. The once-in-a-century pandemic brought air travel to a near standstill, slashing Sabre’s revenues and making debts impossible to service. 
• Rising rates. The following year, the U.S. Federal Reserve began hiking interest rates to stave off inflation, making it harder for Sabre to pay off existing debts and roll them into new deals. 

That crushed Sabre’s share price, which has fallen 90% since early 2020. Its debts are now worth almost six times more than its equity… a situation usually associated with near-bankrupt companies. 

But if Luke’s calculations are right, things could soon turn around for this equity “stub.” 

In fact, since the company is so financially leveraged, a 10% increase in enterprise value will translate into a 58% increase in share price. 

That makes Sabre an incredible “option-like” play. In the worst case, the stock goes to zero… but in the best case, SABR shares could rise 2X… 5X… or even 10X.  

The Real Estate Kings 

The May 7 catalyst will also be felt among real estate companies that rely on more traditional debt financing. 

My two favorites are on opposite ends of the risk spectrum. I would recommend both as complements. 

• Realty Income Corp. (O). This real estate investment trust (REIT) is arguably the most conservative of its kind. Leases are made on a “triple net” basis, meaning tenants are responsible for almost all costs, and the company attracts blue-chip tenants by offering minimal rent increases. Its dividend is paid monthly and sits at a stunningly high 5.6%. 
• Digital Realty Trust Inc. (DLR). Meanwhile, DLR is one of the most aggressive REITs thanks to its single-minded pursuit of growth in AI data centers. Gross income more than doubled to $2.9 billion in 2024, and analysts expect another 50% surge to $4.5 billion by 2027. Cloud computing firms like Microsoft Corp. (MSFT) are still starved for computing power, and Digital Realty has grown as quickly as possible to service that need. Dividends are lower at 3% to reflect this potential. 

These two firms are well run. Realty Income has played the long game by focusing on grocery stores (10% of its portfolio), convenience stores (9%), non-retail stores  (i.e., industrial and services) (21%), and other businesses resistant to e-commerce competition.  

On its part, Digital Realty realized early on that cloud computing customers would need dense colocation data centers (where powered, connected warehouse space is rented out to firms that bring their own servers) and quickly moved to offer that service. 

That means both firms should see a surge in buying interest on a May 7 catalyst. Despite their differences, these REITs are economically sensitive firms. And if Luke is right, a summer panic could send these types of companies soaring.  

The Healthcare Acquirer 

Finally, I’m adding a new pick to my top list: 

Biogen Inc. (BIIB). 

This high-quality biotech firm was created in 2003 in a mega-merger of Biogen and automation company Idec. Shares rose as much as 1,200% through the biotech boom of the mid-2010s as blockbusters like cancer drug Rituxan and MS therapy Avonex came onto the market. Biogen also proved reasonably adept at acquiring and partnering with other biotech firms, though a 2019 acquisition of Nightstar did end with two clinical failures. 

Challenges began to mount after 2023 on rising research costs and high interest rates. Suddenly, new therapies became far more expensive to finance. A lackluster launch of Alzheimer’s drug Leqembi also spooked investors. So did recent staffing cuts at the U.S. Food and Drug Administration (FDA), which will increase the time and barriers for new drug approvals. 

Biogen’s stock has dropped 60% over the past two years and trades at 8X forward earnings, compared to a long-term average of 13.3X.  

The May 7 catalyst could change part of that equation. 

This summer, we could see investors return to this beat-up stock whose forward price-earnings ratio now looks more like an automaker’s than a top-tier biotech’s. Biogen’s pipeline and several new launches look reasonably strong. Recently approved drugs like Skyclarys, used in neurology, and Zurzuvae, for postpartum depression, should reduce the impact of expiring drugs and Leqembi’s slower-than-expected success.  

It’s also worth noting that large biotechs like Biogen have significant marketing and production scale that make them attractive partners, allowing them to snap up promising smaller firms at a discount. 

Of course, many of Biogen’s challenges will remain. Biotech is an industry that generates enormous paydays and equally significant flops. I’m also not expecting a quick return to “normal” at the FDA. 

Still, if you had told me two years ago that Biogen would be on sale at 8X forward earnings, I wouldn’t have believed you. And now, it’s something worth taking advantage of. 

The Summer Panic of 1997 

In May 1997, the Asian Financial Crisis was getting started. Currency speculators were dumping the Thai baht, forcing that country’s central bank to defend their currency exchange rate with a dwindling supply of foreign reserves. By July, these reserves had run out, triggering a devaluation and market mayhem. It only took several months for the crisis to spread to South Korea, Hong Kong, and beyond. Asian stock markets collapsed. 

Yet, none of this affected the dot-com boom. Over the same period, the tech-heavy Nasdaq Composite surged 20% to a new record as American investors began recognizing the promises of the internet. Retail investors were more panicked about missing out than with some faraway financial crisis. 

Luke Lango believes we’re approaching a new version of this two-sided “panic.” 

Today, bearish institutional investors are dumping tariff-impacted companies as global macro fears kick in. Shares of Norwegian Cruise Line Holdings Ltd. (NCLH) have dropped 38%, while those of shoe retailer Deckers Outdoor Corp. (DECK) have sunk 45%. 

Meanwhile, retail investors are aggressively buying the dip every chance they get. On April 3, individual investors bought $4.7 billion of equities following President Donald Trump’s “Liberation Day” selloff. And on Wednesday, a negative U.S. GDP report was quickly buried as these same mom-and-pop investors snapped up shares. 

That’s because there’s a lot of money sitting on the sidelines. And there are a lot of bullish investors waiting to buy up stock. 

This could come to a head on May 7, when Luke predicts an event will trigger a new cascade of retail buying. 

Understandably, everyone is focused on short-term moves in the midst of a fast-paced market. But there’s something bigger happening behind the scenes…  

For the full breakdown of this catalyst – and Luke’s blueprint for the summer – click here to check out his 2025 Summer Panic Summit.

Until next week, 

Tom Yeung 

Market Analyst, InvestorPlace.com 

Consumers may have doubts about the economy’s future, but that hasn’t stopped them from spending so far—a habit that could prevent a recession.

Consumer sentiment fell for the fourth consecutive month in April. The declines reflect uncertainty surrounding President Donald Trump’s tariff policies and whether they will drive up prices across the economy. Some forecasters are worried that the sour mood could translate to a sustained slowdown in spending and send the economy into a recession.

“How consumers act in these next couple of months will be telling,” wrote Wells Fargo economists Tim Quinlan and Shannon Grein.  “Consumer optimism has slid amid tariff-related pricing concerns, but one of the lessons of the pandemic was that what consumers say is seldom the best barometer for actual spending.”

What Does History Tell Us About Consumer Spending Amid a Dour Outlook?

Consumer sentiment was at a historically low reading of 50 in June 2022, when inflation was at more than 9% and gas prices approached $5 amid Russia’s invasion of Ukraine.

However, despite the poor sentiment over elevated inflation, retail sales grew that month, including higher restaurant spending. This was part of a longer trend of strong consumer spending that helped keep the economy from slipping into recession during that period. 

A good job market kept consumers spending during that period of bad vibes, which economists said could help keep the economy moving during the current period of low sentiment.

“We actually saw spending be very solid, if not strong, over that period,” said Nationwide’s senior economist Ben Ayers. “The sentiment readings were not looking so great, but the job numbers were very strong, and that gave people the income and the confidence that they could go out and spend money and that they would still have income coming in.”

To that end, economists saw good news in the April jobs report released on Friday, which showed better-than-expected job growth. However, there could be weakness ahead, as the weekly jobless claims reached their highest levels since February, said Bret Kenwell, a U.S. investment analyst at eToro.

“Although consumers have been shifting how they spend their money, they’re still spending, and that can keep powering the U.S. economy forward,” Kenwell said. “However, that engine could stall if the labor market deteriorates.”

Spending Remains Solid But Weaknesses Are Emerging

Spending remains strong, at least for the time being.

Retail sales, often used as an indicator of spending, came in better than economists projected in March, as Trump ramped up his tariff talk. Some attributed the jump to shoppers rushing to buy items before tariff costs hit, especially on cars, but other economists said consumer trends weren’t so clear.

“What’s difficult with looking at that data is trying to decide how much of that was just people buying things in advance of tariff price increases,” Ayers said.

Economists pointed out that restaurants and bars saw a 1.8% increase in sales in March, a spending category that isn’t closely associated with imports.

“We’re not aware of a way you can front-run tariffs with a nice night out,” the Wells Fargo economists wrote, noting that March’s restaurant spending data was “a key signal that while spending may be slowing, consumers have not gone into hiding when it comes to discretionary spending.”

However, there could be a slowdown in discretionary spending on the horizon. For example, several major airlines have pulled their guidance for upcoming earnings amid weakening demand for domestic flights. Comerica Bank Chief Economist Bill Adams said that is bad news in a consumer spending category that is often a bellwether.

“This is a sign that flight bookings show consumers are not only talking down the economy like they did in 2022 and 2023, they’re acting on their bad vibes, too,” Adams said.

During these busy times, it pays to stay on top of the latest profit opportunities. And today’s blog post should be a great place to start. After taking a close look at the latest data on institutional buying pressure and each company’s fundamental health, I decided to revise my Stock Grader recommendations for 125 big blue chips. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.

Article printed from InvestorPlace Media, https://investorplace.com/market360/2025/05/20250525-blue-chip-upgrades-downgrades/.

©2025 InvestorPlace Media, LLC

If you have a keen eye for detail, love working with numbers, are good at organization, and want to be self-employed, establishing a bookkeeping business could be a good way to capitalize on your interests and skills.

Bookkeeping involves recording the daily transactions of a company, which is vital to the financial health of a business. Bookkeepers are responsible for generating financial reports, reconciling accounts, managing payroll, and more.

How Do You Become a Bookkeeper?

You don’t need a specific degree or certification to become a bookkeeper or start your own bookkeeping business. However, because bookkeepers play a vital role in managing a business’s finances, completing an online course or earning a certification can be a valuable way to build the necessary skills and knowledge.

The American Institute of Professional Bookkeepers and the National Association of Certified Public Bookkeepers offer educational information, courses, and certifications.

And as bookkeeping has moved away from relying on physical journals to manually track transactions, knowing how to use bookkeeping software programs, like QuickBooks or Xero, can be helpful too.

Establishing a Business

Starting a bookkeeping business is like starting any other small business. You’ll need to determine what your business structure is, apply for an employer identification number (EIN) with the Internal Revenue Service (IRS), pick a name, get business insurance, register your business, and open a business bank account.

You might also consider drafting a business plan where you detail information like what services you plan to provide, pricing, your marketing plan, your target customers, and more. You don’t need to draft a business plan to establish a business, but it can be a useful way to understand the purpose of your business as well as your future goals. Plus, it can be used when you apply for loans or request financing for your business.

All of these steps may seem overwhelming at first, but you don’t need to do everything at once. Take your time with each step and don’t hesitate to seek help, especially for decisions like choosing your business structure, which can have significant legal and tax implications down the line.

You’ll also want to start thinking about the logistics and finances of your business. These are important questions to ask yourself:

• Do you plan to launch a website so potential customers can find you online?
• Will you need a customer relationship management (CRM) software to help you keep track of your customers?
• Have you opened a business bank account to keep your personal funds separate from your business funds?
• How much will you charge for your services?

Marketing Your Business

You can offer bookkeeping services in person or online, but regardless of how you plan to offer your services, you’ll need to market your business in order to attract clients.

You can promote your business on social media platforms—like X, Instagram, Facebook, and LinkedIn—for free. You can also pay for ads on these platforms. Another option is to advertise your services on freelance platforms like Fiverr and Upwork.

Beyond social media, think about leveraging your in-person network. Do you have any friends, family members, or acquaintances who run small businesses? Consider reaching out to them and offering your services. Additionally, you may consider joining local groups or organizations for small businesses. These can be a helpful way to connect with other business owners and find potential clients.

The Bottom Line

Starting a bookkeeping business is a great option for those who want the freedom of self-employment without needing a particular degree. Bookkeeping, however, may not be right for everyone, so consider trying an online course to see if it suits your skills and interests.

When you’re ready to establish your own business, take your time when it comes to steps like determining the business structure and purchasing business insurance. And of course, you’ll need clients, too—take advantage of free social media and freelance platforms to boost your business’s visibility.