Market Sees Small Declines as Earnings Reports Pour In
Friday, April 25, 2025
Pre-market futures are slightly in the red this morning, but this does not threaten the gains made earlier this week, although it is still early in the trading day. Bond yields are trending downward. While no significant economic reports are scheduled before the market opens, multiple Q1 earnings releases are anticipated (see below).
The Dow is currently down by 147 points, with the S&P 500 down 10 points, the Nasdaq down 60 points, and the small-cap Russell 2000 down 15 points. The 10-year bond yield has decreased below 4.3%, and the 2-year yield is below 3.8%. Initially, pre-market trading for the Nasdaq and S&P started positively, but recent news has shifted all major indexes into negative territory.
The Uncertain Trade Dialogue Between Trump and China
This morning, President Trump claimed in an interview with Time Magazine that China’s President Xi Jinping contacted him directly. This assertion was quickly denied by the Chinese embassy, which stated that no tariff discussions are underway between the two largest trading nations. Interestingly, this follows U.S. Treasury Secretary Scott Bessent’s statement earlier this week suggesting ongoing tariff talks with China, which was also rejected by Chinese officials.
Such conflicting statements warrant attention because the current market rally is largely predicated on expectations that trade negotiations may alleviate the harsh tariffs imposed three weeks ago. With a critical 90-day deadline approaching—July 10th—the absence of a new trade deal could deepen concerns over existing tariff levels.
Q1 Earnings Update: Colgate-Palmolive, AbbVie, and More
Q1 results from Colgate-Palmolive (CL) were announced this morning, exceeding earnings estimates by 5 cents to reach 91 cents per share on revenues of $4.91 billion, surpassing the Zacks consensus by 1.15%. Following the news, shares are trading up 1.4%, contributing to a 2% gain year-to-date. For further information on CL’s earnings, click here.
AbbVie (ABBV) also delivered stronger-than-expected Q1 results this morning, with earnings of $2.46 per share, beating estimates by 2.93% on revenues of $13.34 billion, significantly ahead of the $12.91 billion analysts projected. Shares are up 3.9%, adding to an 8.4% increase for the year.
AutoNation (AN) reported Q1 earnings of $4.68 per share, surpassing the consensus estimate of $4.35, along with revenues of $6.69 billion that exceeded expectations by 1.75%. Despite these results, concerns about potential tariff impacts on vehicle costs have led to a pre-market decline of 3.76%, pulling the stock back into negative territory year-to-date. For more on AN’s earnings, click here.
Perhaps the standout Q1 report came from financial advisory firm Lazard (LAZ), which exceeded Zacks consensus expectations by an impressive 93%, reporting earnings of $0.56 per share. Revenues also surpassed expectations by 4.35%, reaching $643.19 million. Despite this strong performance, shares are flat and down more than 20% year-to-date. For more on LAZ’s earnings, click here.
Market Expectations for Today and Next Week
As this trading week concludes, there will be no further Q1 earnings reports, but after today’s market opening, investors will receive the final Consumer Sentiment report for April. The initial reading came in above 50 at 50.8, indicating growth potential. Analysts expect this figure to hold steady.
Looking ahead to next week, a heavier influx of Q1 earnings reports is expected, particularly from key players in the “Mag 7”—including Microsoft (MSFT), Meta (META), Apple (AAPL), and Amazon (AMZN). Additionally, it is Jobs Week, with private-sector payroll figures for April set to be released on Wednesday, and government non-farm payrolls scheduled for Friday morning. To add to the economic data, Personal Consumption Expenditures (PCE) for March will also be released a week from today.
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