Monday's Dump-and-Pump Reeks of Institutional Exasperation; Tariff Issues Need Resolution

Trading got off to a slow start Monday as the month of April - a downbeat one overall - approaches an end. The three major indices - Dow, NASDAQ, S&P - got a bit of a boost at the open, slumped all morning, then miraculously moved higher into the close, extending the winning streak for the Dow and S&P to five straight sessions.

The NASDAQ, down more than 200 points midday, rallied to briefly turn positive nearing the session's close, but ended just short. Gains on the Dow and S&P were marginal, indicating the rally through the heart of earnings season may be running out of gas.

Speaking of earnings, a good cross-section of American firms reported after the close Monday and prior to Tuesday's cash session.

Here's a brief rundown of some of the first quarter results:

• Waste Management (WM): revenue slippage in 1Q; pre-market, -1-2%
• Rambus (RMBS): small EPS beat; pre-market +2.5%
• Transocean (RIG): -0.07 EPS; $2.80 stock (pass)
• Nucor (NUE): EPS 0.77 (beat); shares flat
• Teradyne (TER: EPS 0.75 (beat); -1.7% pre-market
• Coca-Cola (KO): EPS 0.73 (small beat) +1% pre-market
• Altria (MO): EPS 1.23 (beat); -2.5% pre-market
• Pfizer (PFE): EPS 0.92% (beat); shares flat
• PayPal (PYPL): EPS 1.33 (beat); flat
• UPS (UPS): EPS 1.49 (beat); +1.35% pre-market
• JetBlue (JBLU): EPS: -0.59; -2% pre-market
• Spotify (SPOT): EPS miss; Cramer likes; -6% pre-market
• Royal Caribbean (RCL): suprise guidance, +3.5% pre-market

Mostly, earnings were drab, except Royal Caribbean, which had a solid quarter and surprised with strong forward guidance.

Stocks can probably maintain prices at these levels (still down for the year), unless first quarter GDP comes in at a negative number. That's for Wednesday, along with the latest PCE Index and more earnings (Starbucks after close today; Caterpillar before open tomorrow).

The market seems to have grown weary of the tariff trades and is seeking some kind of resolution, which, naturally, will be months or years in the making. There's plenty of pessimism to go around, but enough optimism to keep stocks treading water until the next major event, be it positive or negative. While it would be a mistake to underestimate the degree by which President Trump will shake things up, it is equally dangerous to underestimate his potential for winning on trade, taxes, spending cuts, and a trimmed down 2026 budget.

That said, futures are slipping into the open, with the Dow +27, NASDAQ -117; S&P -22.

At the Close, Monday, April 28, 2025:
Dow: 40,227.59, +114.09 (+0.28%)
NASDAQ: 17,366.13, -16.81 (-0.10%)
S&P 500: 5,528.75, +3.54 (+0.06%)
NYSE Composite: 18,971.73, +71.93 (+0.38%)