The ADP jobs report missed analysts' estimates, but nonfarm payrolls surpassed them
The first week of May was anything but quiet. President Donald Trump and Tesla (TSLA) CEO Elon Musk traded jabs on social media amid a disagreement over the Trump administration's "Big, Beautiful" tax and spending bill. Trump also touted a "very good" phone call with Chinese President Xi Jinping on trade, days after doubling steel tariffs to 50%.
Meanwhile, the Organization for Economic Co-operation and Development (OECD) cut its U.S. growth outlook. Jobs data was also in focus, with the ADP jobs report missing expectations, while weekly jobless claims and May nonfarm payrolls came in above estimates. The ISM services purchasing managers' index (PMI) inched closer to contraction territory, and the Federal Reserve's "Beige Book" pointed to a contracting U.S. economy. The Dow Jones Industrial Average (DJI), Nasdaq Composite (IXIC) and S&P 500 Index (SPX) still paced for weekly wins despite the volatility.
Retail Earnings Grab the Spotlight
Retail earnings dominated headlines this week as earnings poured in from across the sector. Lululemon Athletica (LULU) stock gapped to its lowest level since 2020 after tariffs squeezed guidance, despite its historically strong June performance. Dollar Tree (DLTR) stock fell despite upbeat results, while Kroger (KR) shares seemed ready to rally. Meanwhile, Chewy (CHWY) stock attracted a downgrade, and Calvin Klein parent PVH (PVH) issued a dismal revenue outlook.
Tech Stocks Make Big Moves
The tech sector was also in focus. Broadcom (AVGO) shares rallied before earnings, and a downgrade from J.P. Morgan stung dating app Bumble (BMBL). Software stock Asana (ASAN) brushed off upbeat first-quarter results, while options bulls targeted Applied Digital (APLD) after the company inked a five-year, $7 billion deal with cloud service name CoreWeave (CRWV). Elsewhere, MongoDB (MDB) shares shot higher after earnings, DocuSign (DOCU) stock tanked on a billings shortfall, and Samsara (IOT) shared disappointing revenue guidance.
Next Week Brings CPI, PPI Readings
The upcoming week features key inflation data, with May's consumer price index (CPI) and producer price index (PPI) due out. Wholesale inventories and a U.S. federal budget update are also on tap, in addition to reports from Adobe (ADBE), Chewy (CHWY), Dave and Buster's (PLAY), GameStop (GME), GitLab (GTLB), and Stitch Fix (SFIX). Schaeffer's Senior Quantitative Analyst Rocky White examined what global stock outperformance could mean for for the SPX, and Senior V.P. of Research Todd Salamone dug into favorable bearish indicators.