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NEWS
Earnings Say AI and Consumers Are Doing Fine

The market climbed on Wednesday, but not as high as it wanted to. The S&P 500 started the morning up nearly 4% after the White House made up with Powell, and said that Chinese tariffs might get halved. Then, Treasury Secretary Bessent walked back tariff talk, said China negotiations might take two to three years, and generally did his best to be a wet blanket. ⛈️ 

Still, earnings results came in mixed, as usual, and consumer and tech firms climbed. Boeing climbed on a narrowed loss, Texas Instruments gained on their outlook, Tesla climbed after Musk said FUTURE, and the Mag 7 went with it.

The Fed published its boring Beige Book that summarizes the word on the street- economic activity from across the U.S. in April. Most was the same, but prices were rising, consumers were buying goods before tariffs kicked in, and the outlook for the future fell dramatically. 👀 

Today's issue covers AI making earnings waves, Boeing’s earnings (loss) beat, and more. 📰 

Here’s the S&P 500 heatmap. 9 of 11 sectors closed green, with technology (+5.56%) leading and consumer staples (-0.44%) lagging.

And here are the closing prices: 

EARNINGS
Is AI Back? TI, LAM, Show The Time Is Still NOW📦️ 

Wednesday, the market looked immensely normal, led higher by technology and AI semiconductor companies. Deja vu?

Tech and semi’s were following Tesla’s lead, following news that Chief Musk was returning, fresh from a quick stint as a government auditor. After the close, the three largest climbers were AI/semiconductor-related firms, Texas Instruments, Lam Research, and ServiceNow. Let’s track what they said about AI demand in the year of our lord 2025:

$NOW: ServiceNow beat estimates and climbed 9%, the biggest gainer in large and mid-cap firms. The software as a service firm raised an adjusted $4.04/share on revenue of $3.09 billion, both beating estimates. Subscription revenue climbed 19% YoY.

The full year looks pretty good too, with obligations, or scheduled contracts to use its AI products, totaling $10.3B, up 22% YoY. Right NOW everything is looking fine. 

$TXN: Texas Instruments climbed 5% after reporting earnings that beat for Q1, and about $160M more in revenue than FactSet expected. Everyone knows the Firm for its calculators, but it also expects to rake in up to $4.5B selling semiconductors and designs in Q2.

Management gave lip service during its earnings call that the market was unpredictable right now, but gave pushback: When asked if demand rose because of a fear that tariffs were coming, management said customers didn’t tell them why they were ordering more. As the first major chip maker to post earnings, we’ll have to watch this one overnight.

$LRCX: Lam Research was up nearly 5% after hours, as the semiconductor and circuit equipment maker beat estimates for its third quarter and expects its final quarter of its wonky fiscal year (the current quarter) to see revenue of $5B.

Not all AI companies were happy today- $IBM fell more than 5% after hours at the time of writing, after the firm reported an earnings decline for the quarter, despite a 1% climb in revenue to $14.54B.

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