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Tuesday, May 6

Noteworthy macro moves today: Gold +1.6%. Oil (WTI) +2.4%. Nasdaq 100 Index (US) -1.0%. Noteworthy US mega-cap moves today: Broadcom Inc (AVGO) -2.2%. Alphabet Inc (GOOG) -1.4%. Alphabet Inc (GOOGL) -1.4%. 

The market is currently reacting to significant political and economic developments, particularly in Germany, where the designated Chancellor Friedrich Merz failed to secure a parliamentary majority. This has led to declines across European equity indices, notably impacting the DAX, which fell over 1%. The uncertainty surrounding German politics adds pressure on broader European markets as investors await further clarity.

In addition, U.S.-China trade relations remain a focal point with President Trump expected to announce new tariffs soon while also indicating potential for upcoming trade deals with other nations such as Canada. These tariff announcements have contributed to volatility in currency markets; Asian currencies like the Taiwan Dollar surged recently amid speculation of imminent negotiations between major economies.

Economic data releases are also influencing sentiment today: Canada's March trade deficit narrowed significantly due partly to reduced imports amidst ongoing tariff impacts from the U.S., while expectations build ahead of key monetary policy decisions by both the Federal Reserve and Bank of England later this week. Investors are closely monitoring these events for their implications on interest rates and overall economic stability.

iShares MSCI Germany ETF (EWG) [-0.9%]
The iShares MSCI Germany ETF (EWG) has experienced a decline of 0.9% in premarket trading, coinciding with a drop in the German DAX index of over 1%. This movement follows political uncertainty as Conservative leader Friedrich Merz failed to secure a parliamentary majority necessary for the chancellorship, raising concerns about stability. Notably, the top contributors to EWG's performance included SAP and Deutsche Bank, both of which saw significant declines. In contrast, Fresenius Medical Care AG reported strong year-over-year growth across key financial metrics and reaffirmed its positive outlook for 2025. Additionally, the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) has also declined, reflecting a cautious market sentiment that may be influencing EWG's performance.

SPDR S&P 500 ETF Trust (SPY) [-0.8%]
The SPDR S&P 500 ETF Trust (SPY) has seen a decline of 0.8% in pre-market trading, reflecting broader market volatility. This downturn is coinciding with escalating geopolitical tensions and new tariffs imposed on foreign-made films. The S&P 500 Index has dropped amid these conditions, while the Dow Jones Index has also decreased. Social media discussions reveal skepticism about current market conditions, with one user questioning if the market's performance seems "too good to be true." Additionally, another post highlighted a comparison of market performance under different presidential administrations, noting that former President Trump's first 100 days were the weakest in modern history for market performance, in contrast to President Biden's tenure. Among SPY's top holdings, notable contributors to the ETF's performance include NVDA, MSFT, AMZN, AVGO, and AAPL, all of which experienced negative returns.

PLTR | -8.5% | -21.4B
Palantir Technologies Inc | Application Software
Palantir Technologies Inc reported its Q1 earnings, revealing a revenue of $884 million, surpassing analysts' expectations of $863 million, and an adjusted earnings per share of $0.13, which matched consensus estimates. U.S. revenue grew significantly, increasing 55% year-over-year to $628 million, while U.S. commercial revenue surged 71% year-over-year to $255 million. The company revised its fiscal year 2025 revenue guidance upward to between $3.89 billion and $3.90 billion, from prior estimates of $3.74 billion to $3.76 billion. Despite these positive results, the stock experienced notable declines in after-hours trading, dropping approximately 10% immediately following the earnings call, attributed to ongoing valuation concerns. Additionally, social media discussions highlighted a decrease in expected U.S. business revenue from strategic commercial contracts for Q2'25 compared to the previous year.

DASH | -5.0% | -4.0B
DoorDash Inc | Restaurants
DoorDash Inc reported its first-quarter 2025 financial results, revealing total orders of 732 million, an 18% year-over-year increase. Revenue reached $3.03 billion, slightly below analysts' expectations of $3.09 billion. Net income was reported at $193 million, exceeding the anticipated $182 million. The company's adjusted EBITDA for the quarter was $590 million, also surpassing estimates. Additionally, DoorDash announced an agreement to acquire SevenRooms, a hospitality technology firm, for approximately $1.2 billion in cash, expected to close in the second half of 2025, pending regulatory approvals. For the second quarter, DoorDash anticipates marketplace gross order value between $23.3 billion and $23.7 billion. In pre-market trading, the stock dropped significantly following these results, influenced by lower-than-expected revenue and midpoint EBITDA guidance for Q2.

F | -2.5% | -1.0B
Ford Motor Co | Automobile Manufacturers
Ford Motor Co. is experiencing a decline in pre-market trading, moving lower alongside the broader market. The company recently reported its first-quarter financial results, with an adjusted earnings per share of $0.14, surpassing analyst expectations of $0.02, and revenues of $40.66 billion against an estimate of $36.20 billion. Despite these positive revenue figures, Ford suspended its financial guidance due to significant tariff-related uncertainties, estimating a potential adverse impact of approximately $1.5 billion on adjusted EBIT for the fiscal year. This suspension reflects ongoing concerns about industry risks and supply chain disruptions, contributing to a notable drop in share price following the earnings announcement. Additionally, discussions on social media highlight concerns regarding the implications of tariff policies on Ford's operations, further influencing market sentiment. The Russell 2000 Index's decline also mirrors the cautious outlook affecting stocks within the automotive sector, including Ford.

Datadog Inc (DDOG) [-0.9%, -305.1M]
Application Software
Datadog Inc. reported its first-quarter 2025 financial results, revealing revenue of $762 million, exceeding expectations of $741.5 million. The company posted a net income of $24.64 million, down from $42.63 million year-over-year. Adjusted EPS was reported at $0.46, surpassing the consensus estimate of $0.43. For the second quarter, Datadog anticipates revenue between $787 million and $791 million, with adjusted EPS projected at $0.40 to $0.42. Despite this positive performance, Datadog's stock has declined, mirroring broader market trends as the Nasdaq 100 Index dropped significantly. Concurrently, European equity markets are under pressure due to political uncertainty in Germany, contributing to a cautious investment environment. Additionally, the Eurozone Composite PMI indicates ongoing economic challenges, with industrial producer price inflation easing across Europe.
—𝑆𝑜𝑢𝑟𝑐𝑒: 𝑀𝑎𝑟𝑘𝑒𝑡𝑅𝑒𝑎𝑑𝑒𝑟 𝐼𝑛𝑐 @ 𝑀𝑎𝑦 6𝑡ℎ 8:40 𝐴𝑀

VRTX | -4.9% | -6.1B
Vertex Pharmaceuticals Inc | Biotechnology
Vertex Pharmaceuticals reported its first-quarter financial results on May 5, 2025, generating revenue of $2.76 billion, which fell short of estimates. Operating income was significantly below expectations, and adjusted net income also missed consensus forecasts. Earnings per share came in lower than anticipated. Despite a 2% increase in sales of the cystic fibrosis drug Trikafta, overall quarterly revenue increased by only 2.7%, failing to meet analyst expectations. Vertex introduced two new medications, ALYFTREK for cystic fibrosis and JOURNAVX for pain management, while discussions on social media highlighted the impact of the earnings report and upcoming FDA decisions regarding a sickle cell disease treatment. Following the earnings announcement, Vertex's stock experienced a notable decline of over 3%. The company narrowed its fiscal year 2025 revenue guidance but maintained it slightly above the previous range.

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