Signs of Trade Deal Hope Fuels Markets

Thursday, May 8, 2025Markets rose today on hopeful sentiment regarding trade deals with U.S. partners, after an agreement with the UK that kept the baseline +10% tariff in place. The UK is far from the U.S.’s top trading partner, but the hope is that other deals will be coming down the pike in the coming days and weeks. The 90-day tariff suspension ends (at this point) on July 10th of this year.Whether more deals do land or they don’t, the Dow gained +254 points today, +0.62% (although it had been up +655 points earlier in the session), while the S&P 500 grew nearly as big, percentage-wise: +0.58%. The Nasdaq and the small-cap Russell 2000 were the clear leaders on the day, up +1.07% and +1.85%, respectively. Earnings Roundup After the Bell: EXPE, AFRM, DKNGTravel giant Expedia EXPE missed Q1 estimates on both top and bottom lines this afternoon, reporting 40 cents per share versus the Zacks consensus 42 cents (though up +90% year over year) on $2.99 billion in revenues, which was below the $3.03 billion analysts had predicted. Booked Room Nights were up a solid +6% year over year, but it wasn’t enough for the stock to be trading down -6.7% in after-hours. (You can see the full Zacks Earnings Calendar here. https://www.zacks.com/earnings/earnings-calendar)Payment services tech firm Affirm AFRM posted a bottom line beat in its fiscal Q3 report today: +$0.01 per share versus expectations for -$0.08. Revenues were just in-line with estimates at $783 million for the quarter, though its $8.6 billion in Gross Merchandise Value (GMV) rose +36% year over year. However, shares are trading down on this news, -8% in the late session.DraftKings DKNG also missed estimates after the bell today, though its bottom line of -$0.07 per share was a nice improvement from the -30 cents projected. Revenues of $1.41 billion grew +20% year over year, but still narrowly missed the $1.42 billion in the Zacks consensus. The company also lowered revenue guidance and downgraded its full-year adjusted EBITDA, but somehow the shares are up +3% in post-market trading.Questions or comments about this article and/or author? Click here>>7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Expedia Group, Inc. (EXPE): Free Stock Analysis Report DraftKings Inc. (DKNG): Free Stock Analysis Report Affirm Holdings, Inc. (AFRM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks