Wow! What a rebound!
To such enthusiasm, the cynic might add: “Yes, it’s pretty. It’s going to break soon.”
Maybe even this week.
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Why worry a break is nearing? The basic fuel starts with this: The Standard & Poor’s 500 Index has risen for nine straight sessions through Friday.
In truth, this is a winning streak to savor.
The last time it happened with the S&P 500 was between Oct. 26, 2004 and Nov. 5, 2004, and the index gained 6.52%. That proved to be nearly three quarters of the index’s gain for 2004.
Our 2025 version of THE STREAK has a more dramatic story. It began on April 22, when the S&P jumped 2.51% from the prior day’s close of 5,158.20. As of Friday, the index had climbed to 5,686.67, a gain of 10.3%.
Related: Analysts revise Amazon stock price target after earnings
The whys of the streak are pretty straight forward.
Some investors (maybe just computer buy programs) are gobbling up stocks at the flimsiest of suggestions that trade deals a-plenty are about to be announced. India, Japan and Vietnam are reportedly first in line among dealmakers.
Maybe even China will start talking. There were hints last week that some early chatting is going on, trying to frame the question and setting up the possibility that real negotiations will occur.
At the same time, the S&P 500 is down 3.3% this year but up 17.6% from the intraday low after President Trump announced his tariff plan on April 2. The Nasdaq Composite’s year-to-date loss is 6.9%. Gain from the April intraday low: 21.6%. The Russell 2000 is off 9.4% this year but up 16.2% from the post-Trump low.
More details like that may keep the buying frenzy going.
But then there are two big risks.
- Tariffs on auto parts jumped on Saturday to 25%.
- The Port of Los Angeles, the biggest destination for goods shipped from China, believes cargo volume is about to drop 36% very soon. The Port of Seattle and Tacoma, also a destination for Chinese cargo believes its volumes will drop, too.
Monday will be the first day of trading after legendary investor Warren Buffett of Berkshire Hathaway (BRK.A) and (BRK.B) announced he will retire at the end of the year. The announcement came Saturday at the end of Berkshire’s annual meeting in Omaha, Neb.
Greg Abel, Berkshire’s vice chairman is Buffett’s choice as his successor.
Related: Warren Buffett sends strong message on trade, tariffs
Bad news on the trade front could stall the S&P 500’s streak pretty quickly. Futures trading late Sunday suggest U.S. stocks will open lower on Monday.
In addition, bitcoin was down nearly $1,600 to $93,992. The crypto currency had reached nearly to $97,000 on Saturday.
A question is how the market overall will react to the 6.7% loss (to $219.50) suffered by shares of Take Two Interactive Software (TTWO) on Friday.
The company said it was delaying release of its Grand Theft Auto VI game until Sept. 26, 2025. The game, among the most popular video games, needs more refinement.
But there are companies reporting earnings this week that could excite Wall Street. Nearly 1,500 companies are expected to report.
Some should report terrific results. Some won’t. Here are a few to watch.
Palantir Technologies
Palantir (PLTR) reports after Monday’s close. The company develops software platforms primarily for the intelligence community to assist in counterterrorism investigations and operations in the United States, the United Kingdom, and elsewhere. The shares are up 64% in 2025 and, on Friday, were up nearly 7% to $124.28.
The consensus estimate is for earnings of 11 cents a share, up 38% from a year ago with revenue at $799 million, up 26%.
Related: Analyst who bought Palantir stock before a 600% rally updates price target
Palantir is very nearly a meme stock. Its forward price-to-earnings ratio is something over 200 times earnings. Its trailing 12-month P/E ratio is over 600. It has a relatively high percentage of individual investor ownership, close to 47%. One cares because, nowadays anyway, individual shareholders sell out at the first hint of bad news.
More Palantir
- Analysts reset Palantir stock forecast amid rally
- Venture capital leader has harsh words for Palantir
- Musk may be teaming up with Palantir on important project
Ford Motor Co.
Ford (F) also reports after Monday’s close. Wall Street is looking for 2 cents a share of earnings, down from 49 cents a year ago.
The revenue estimate for the quarter is $35.8 billion, down from $39.9 billion a year ago.
Ford does has considerable assets, such as its pickup business, and is less exposed to Trump tariffs than General Motors (GM) and Chrysler parent Stellantis (STLA) .
Ford’s 7.3% dividend yield is a big selling point. The shares are up 3.8% year-to-date and up 18.3% from its April 9 closing low.
Advanced Micro Devices
Advanced Micro Devices (AMD) has aspirations to be a major player in artificial intelligence.
The consensus earnings estimate is 93 cents a share, up 50% from a year ago. Revenue is projected at $7.1 billion, up nearly 30%.
Tariffs are the wildcard for AMD, along with the Trump Administration’s export controls on chips shipped to China, particularly its high-end MI308 chips.
AMD warned last month that the move could result in $800 million in charges if it isn’t able to secure an export license.
The shares are down more than 18% this year.
Related: Billionaire Bill Ackman sends strong message on China, US trade war
Walt Disney
Walt Disney Co. (DIS) , which reports before Wednesday’s open, faces some big challenges.
The earnings estimate is $1.21, unchanged from the year ago period. Revenue is estimated at $23.1 billion, up 4.7% from a year ago.
Here’s the downside.
Price hikes instituted last fall are not going over well. Surveys suggest families who spend $4,000 for a 4-day visit, including tickets and lodging, are balking at booking new visits or coming at all.
Disney faces problems of a different sort. Prices for the steel used to build Disney cruise ships are soaring because the steel is made in China. Disney uses Chinese companies to make most of the toys it sells. U.S.-bound product could be subject to substantial tariffs.
Disney shares are down nearly 12% this year. The rebound from the April low: 14.4%.
Disney shares sell at 18 times on a forward 12-month basis. Netflix NFLX, now a serious rival, is selling at 48 times forward earnings.
Also reporting this week:
- Arista Networks (ANET) , Tuesday after the close.
- Uber Technologies (UBER) , Wednesday before the open.
- Chip designer Arm Holdings (ARM) , Wednesday after the close.
- Oil company ConocoPhillips (COP) , Thursday before the open.
- Cryptocurrency exchange operator Coinbase (COIN) , Thursday after the close.
- News Corp. (NWS) , Thursday after the close.
- Warner Bros. Discovery (WBD) , Thursday before the open.
Related: Veteran fund manager unveils eye-popping S&P 500 forecast
