📈 Home Depot's Tariff Tap-Dance

Warby Parker: Google glasses boost stock, Palo Alto: Sales up, profits down, Trump selects defense shield design, Google launches AI search assistant, Levi sells Dockers for $391M

Author

Evelio Silvera
May 21, 2025

In partnership with

Good morning.

⚡ The Fast Five → Warby Parker: Google glasses boost stock, Palo Alto: Sales up, profits down, Trump selects defense shield design, Google launches AI search assistant, Levi sells Dockers for $391M

🔎 Market Trends → US stocks fall; S&P 500 ends six-session win streak; US Futures Fall on Tuesday

And now…

⏱️ Your 5-minute briefing for Tuesday, May 20, 2025:

MARKET BRIEF
Before the Open

As of market close 05/20/2025.

Pre-Market

  • Amer Sports (AS) with a +19.05% increase, after raising its full-year outlook and addressing tariff mitigation strategies.

  • Airbnb (ABNB) with a −3.27% drop, following news that Spain ordered the removal of over 65,000 listings for regulatory violations.

Fear & Greed

 

Markets in Review

Tariff Clouds, Silver Linings: Markets Cool as Trade Caution Returns

The S&P 500 slipped 0.4%, snapping a six-day win streak. The Nasdaq Composite fell 0.4%, and the Dow dropped 0.3% as investors digested fresh Fed comments and a modest retreat in trade optimism.

The Big Picture:

After a weeklong rally powered by de-escalation in the US-China trade conflict, equity markets took a breather. While tariff tensions are cooling, Fed officials reminded investors that uncertainty still lingers in the economic forecast.

St. Louis Fed President Alberto Musalem warned that new tariffs could weigh on consumer prices, employment, and demand—suggesting policymakers will tread carefully. Despite that, most see the Fed as well-positioned to stay patient and data-dependent.

The bond market was subdued: 2-year yields held at 3.98%, while the 10-year crept up to 4.49%.

Market Movers:

  • Amer Sports (AS) surged 19%, leading the S&P 500, after raising its full-year outlook and signaling confidence in weathering tariff-related headwinds.

  • Dollar Tree (DLTR) gained 4.6% after Deutsche Bank boosted its price target to $90, citing a favorable risk/reward setup.

  • Pfizer (PFE) climbed 2.3% following a $6.05B licensing deal for an experimental cancer treatment from 3SBio.

  • Airbnb (ABNB) dropped 3.3% as Spain moved to block over 65,000 listings on alleged regulatory violations—Airbnb plans to appeal.

What They’re Saying:

“Monetary policy is well-positioned to navigate material changes in the outlook… and to deliver stable prices and maximum employment.” — Alberto Musalem, St. Louis Fed President

WHAT WE’RE WATCHING
Events

  • There are no events scheduled for today.

Earnings Reports

  • Today: Target Corporation, Lowe’s Companies, TJX Companies, Zoom Communications, Medtronic, Urban Outfitters, V.F. Corporation

  • Tomorrow: Intuit, Ross Stores, Ralph Lauren Corporation, BJ’s Wholesale Club, Autodesk, Copart, Workday, Lionsgate Studios

MARKET BRIEF
Leading News

Home Depot's Tariff Tap-Dance: Why Wall Street Is Applauding

Photo Credit: Marques Thomas

Why it matters:

While other retailers sound tariff alarms, Home Depot's (HD) "portfolio approach" to pricing could win favor with the Trump administration while potentially boosting market share in an increasingly protectionist landscape.

Zoom Out:

The home improvement giant beat sales expectations in Q1 despite housing market headwinds, suggesting consumer resilience in at least one corner of retail. More notably, executives signaled they won't implement "broad-based price increases" from tariffs.

Unlike Walmart (WMT), which drew presidential ire after warning of price hikes, Home Depot's messaging emphasizes price stability across its "basket of goods" — a subtle but strategically significant distinction that analyst Michael Baker of D.A. Davidson suggests will "play better to the administration."

Key Insights:

  • Supply chain positioning matters: With over 50% of its merchandise sourced domestically and no single foreign country projected to represent more than 10% of purchases within a year, Home Depot has insulated itself from the worst tariff impacts.

  • The portfolio approach decoded: While some prices may rise and others fall, the net effect for consumers remains neutral — essentially the same outcome as competitors but framed in language less likely to provoke executive branch Twitter storms.

  • Improving sales trajectory: Management noted activity levels strengthened in March and April after a soft start to the quarter, potentially signaling improving consumer sentiment despite lingering mortgage rate pressures.

Market Pulse:

"Despite caution about the outlook for the rest of the year, we believe that major home-improvement retailers like Home Depot, with their expansive and adaptable supply chains, are well-positioned to overcome tariff-related obstacles," notes Jonathan Reid of Fitch Ratings.

Bull’s Take:

Patient investors might consider that Home Depot's politically adept tariff strategy and robust supply chain create a foundation for market share expansion when housing activity eventually normalizes. Remember what Ben Graham taught us: in the short run, the market is a voting machine, but in the long run, it's a weighing machine — and Home Depot just added some muscle.

Headlines

  • Warby Parker pops 16% on $150 million Google smart glasses partnership (link)

  • Microsoft-backed AI startup Builder.ai enters insolvency proceedings (link)

  • Palo Alto Networks Posts Higher Sales, But Profit Slips (link)

  • Trump selects $175 billion Golden Dome defense shield design, appoints leader (link)

  • Google Unveils A.I. Chatbot, Signaling a New Era for Search (link)

  • Levi Strauss agrees to sell Casual Friday staple Dockers for up to $391 million (link)

CRYPTO
Fear & Greed

 

Headlines

  • Bitcoin Tops $107K, Could Hit Record Highs This Summer Say Analysts (link)

  • XRP futures generate $19 million in first-day trading on CME Group, outperforming Solana's launch (link)

  • Circle Has Explored Potential $5B Sale to Coinbase or Ripple Instead of IPO (link)

DAILY SHARE
On the Socials

*Hat-tip to GamblingMemez

StartEngine’s Blockbuster Year: How You Can Join the Action Before Our June Deadline

StartEngine is the platform allowing accredited investors to gain exposure to some of the world’s most coveted private companies like OpenAI, Perplexity, and Databricks — without paying millions.

Not surprisingly, they just posted new blockbuster financials:

📈 Monster (and record) Q4 revenues
📈 Revenue doubled year-over-year ($23M -> $48M)

They’ve been building something big, and the results speak for themselves.

The even better part? The window is open (but closing soon) for you to join their latest funding round. Over 50,000 have invested $84+ million in StartEngine — and now you can get in on the action before this round closes next month. Investments start as low as $500.

Reg A+ via StartEngine Crowdfunding, Inc. No BD/intermediary involved. Investment is speculative, illiquid & high risk. See OC and Risks on page.

All content provided by Investor Lookout and Bull Street is for informational and educational purposes only and should not be taken as trading or investment recommendations.

Reply

or to participate.