S&P 500 and Dow Extend Winning Streak Amid Economic Uncertainty
The stock market opened with caution on Tuesday, April 29, 2025, as investors brace for a pivotal week of earnings reports from tech giants and crucial economic data releases. The S&P 500 edged up slightly in early trading, extending its winning streak to a sixth consecutive session, while the Dow Jones Industrial Average gained modest ground. The Nasdaq Composite showed mixed performance as technology stocks faced pressure ahead of major earnings announcements.
As of mid-morning trading, the S&P 500 was up 0.14% at 5,537, the Dow Jones Industrial Average gained 0.12% to 40,306, and the Nasdaq Composite moved up 0.2% to 17,382.
Why Is the Market Up Today Despite Trade Tensions?
The market’s resilience comes despite ongoing concerns about tariffs imposed by the Trump administration, which have caused the S&P 500 to decline approximately 10% from its recent highs. Investors appear to be finding buying opportunities after the recent pullback, with market analyst Larry Tentarelli noting, “Any pullbacks have turned to be buyable. I think the bulls are back in control.”
However, the broader market remains in negative territory for April. With just two trading sessions left in the month, the Dow and S&P 500 have tumbled more than 4% and 1%, respectively, while the Nasdaq Composite has managed a slight gain of 0.4%.
Upcoming Market Events: All Eyes on Big Tech Earnings
This week marks a critical period for the market with approximately one-third of S&P 500 companies scheduled to report earnings. Of particular importance are the upcoming reports from technology giants:
– **Meta Platforms (META)** and **Microsoft (MSFT)** will report after market close on Wednesday, April 30
– **Apple (AAPL)** and **Amazon (AMZN)** will release their results after market close on Thursday, May 1
Wall Street expectations for these tech giants include:
– **Meta Platforms:** Sales increase of 14% to $41.4 billion and earnings growth of 12% to $5.28 per share
– **Microsoft:** Revenue growth of 11% to $68.4 billion and earnings increase of 10% to $3.22 per share
– **Amazon:** Revenue increase of 8% to $154.9 billion and earnings growth of 39% to $1.36 per share
– **Apple:** Sales growth of 4% to $94.1 billion and earnings increase of 5% to $1.61 per share
Key Economic Data Releases Today
Investors are also closely monitoring several important economic indicators being released today:
– **Job Openings (JOLTS):** Expected to show a decrease of 68,000 to 7.5 million openings, potentially signaling softening labor demand
– **Consumer Confidence:** April’s reading will provide insight into consumer sentiment amid trade tensions
– **S&P Case-Shiller Home Price Index:** February data will show housing market trends
– **Advanced Trade Balance, Retail and Wholesale Inventories:** March figures will help gauge economic activity
Major Stock News and Market Movers
Several notable companies are reporting earnings today, including:
– **Visa (V):** The payment processing giant’s results will provide insight into consumer spending patterns
– **Coca-Cola (KO):** Expected to show how inflation and changing consumer preferences are affecting the beverage sector
– **General Motors (GM):** Results will highlight automotive sector trends amid supply chain challenges
– **Pfizer (PFE):** The pharmaceutical company’s performance may reflect changing healthcare dynamics
– **Starbucks (SBUX):** Will offer perspective on consumer discretionary spending
Among yesterday’s market movers, Peloton Interactive (PTON) led gains on the Nasdaq with a 5.18% increase, followed by Intel (INTC) at 3.39% and Charter Communications (CHTR) at 2.55%. Notable decliners included Nvidia (NVDA), which fell 1.97% following news about Huawei’s AI chip developments.
Trade Tensions and Tariff Concerns Remain Central
The market continues to grapple with uncertainty surrounding U.S. trade policies, particularly tariffs affecting Chinese goods. Treasury Secretary Bessent emphasized that it was “up to China” to ease trade tensions, suggesting that tariff concerns may persist in the near term.
These trade issues are especially relevant for companies with significant exposure to Chinese manufacturing, such as Apple, which assembles approximately 90% of its iPhones in China. The company has been moving some production capacity to India to mitigate tariff impacts.
Market Outlook: What Investors Should Watch
As the week progresses, investors should pay particular attention to:
1. **Management Guidance:** Any lack of forward guidance from major companies could suggest that shifting trade policies have impaired business leaders’ ability to predict demand, potentially triggering market anxiety.
2. **GDP Data:** First-quarter GDP figures, expected to show growth slowing to 0.4% (down from 2.4% in Q4 2024), will be released tomorrow and could provide evidence of how tariffs have affected economic momentum.
3. **Labor Market Indicators:** Friday’s employment report will be crucial, with forecasts calling for 130,000 new jobs in April, down from 228,000 in March.
4. **Consumer Spending:** As the largest contributor to economic growth, March consumer spending data (expected +0.4%) could either alleviate or intensify concerns about tariff impacts.
The performance of major tech companies this week could be particularly influential, as Meta, Microsoft, Apple, and Amazon collectively account for approximately 19% of the S&P 500’s market capitalization. Strong results and positive commentary could spark a market rally, while disappointing numbers might accelerate selling pressure.
With economic data, earnings reports, and ongoing trade tensions all converging this week, market volatility is likely to remain elevated as investors seek clarity on the economic outlook for the remainder of 2025.