"Time is your friend; impulse is your enemy."- John C. Bogle
This succinct admonition by John C. Bogle underscores the value of long-term investing discipline and the dangers of emotion-driven decisions. By embracing time, investors harness the power of compounding while avoiding costly, impulsive trades.
Let patience guide your portfolio, and resist impulse to secure lasting investment success.
Market Wrap
Tariffs Back On, Jobless Claims Up, GDP Dips
Appeals Court Reinstates Trump’s “Liberation Day” Tariffs:
A federal appeals court granted the administration’s request to stay a lower court ruling, allowing the 10% emergency-powers tariffs on imports from China, Canada and Mexico to remain in force for now. This decision eases near-term trade uncertainty but underscores the ongoing legal tug-of-war around U.S. tariff policy.
Initial Jobless Claims Rise to 240,000:
Weekly filings for unemployment benefits jumped by 14,000 to 240,000 for the week ending May 24, significantly above the 229,000 consensus forecast. While still near historic lows, the increase suggests a slight easing in labor-market tightness amid ongoing trade policy uncertainty.
Q1 GDP Second Estimate – Economy Contracts 0.2%:
The Bureau of Economic Analysis’ second estimate showed real GDP fell at a 0.2% annualized rate in Q1, an upward revision from the –0.3% “advance” estimate but still marking the first contraction in three years. The drag largely reflected a surge in imports ahead of tariffs and a drop in government spending, offset only partly by stronger business investment and consumer spending.
Chair Powell Meets with the President:
At the White House, Fed Chair Jerome Powell met with President Trump to discuss economic developments. He stressed that future policy decisions will depend entirely on incoming economic data and refrained from previewing any changes to interest rates.
House Passes $150 Billion Immigration Enforcement Bill:
The U.S. House approved a sweeping tax and spending package allocating roughly $150 billion to bolster border security—including funding for 10,000 new officers and $46.5 billion for the southern wall—and imposing new fees on asylum seekers. Its projected $3.8 trillion deficit impact over ten years has raised investor concerns about long-term fiscal discipline.
U.S. Shale Drillers Begin to Slow Activity Amid Price War:
Reuters reports that major U.S. shale producers have started trimming rig counts in response to OPEC’s price-war strategy, which aims to pressure higher-cost U.S. supply. A slowdown in domestic output suggests tighter future oil supply, reinforcing bullish sentiment in energy equities.
Nvidia Corp. shares rose 3.2% after the chipmaker reported record first-quarter revenue driven by surging AI demand, boosting investor optimism despite export restrictions to China.
Salesforce Inc. shares fell 3.3% despite beating earnings estimates and raising its full-year outlook, as investors digested valuation concerns amid strong AI product demand.
HP Inc. shares fell 8.3% after the PC and printer maker lowered its annual guidance, blaming tariff-driven cost pressures and softer demand in key markets.
United Airlines Holdings Inc. shares increased 1.4% after unveiling a network partnership with JetBlue Airways, aiming to expand routes and realize cost synergies.
Best Buy Co. Inc. shares dropped 7.3% after the electronics retailer cut its forecast, citing ongoing tariffs that could dampen consumer spending on big-ticket items.
E.l.f. Beauty Inc. shares jumped 24% following better-than-expected earnings and the announcement of its acquisition of Hailey Bieber’s Rhode skincare line, underscoring confidence in its growth strategy.
American Eagle Outfitters Inc. will release results after market close, with forecasts of $0.11 EPS on $1.08 billion revenue, a key indicator for teen apparel demand.
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