📈 Microsoft Cloud Rises 9%

Amazon to invest $4 billion to expand rural delivery, Meta shares rise on stronger-than-expected revenue, Shein explores US restructuring, Novartis to buy kidney disease drug maker for $1.7B, Microsoft beats Q3 earnings estimates

Good morning.

⚡ The Fast Five → Amazon to invest $4 billion to expand rural delivery, Meta shares rise on stronger-than-expected revenue, Shein explores US restructuring, Novartis to buy kidney disease drug maker for $1.7B, Microsoft beats Q3 earnings estimates

🔎 Market Trends → Late rally propels Dow, S&P 500 to slight gains; US Futures Edge Lower Ahead of Key Data, Earnings

And now…

⏱️ Your 5-minute briefing for Thursday, May 1, 2025:

MARKET BRIEF
Before the Open

As of market close 04/30/2025.

Pre-Market

  • Western Digital (WDC) with a 7.98% increase, making it one of the best performers on the S&P 500.

  • Super Micro Computer (SMCI) with an 11.5% drop, making it the worst performer on the S&P 500.

Fear & Greed

 

Markets in Review

Markets Stay Resilient as Nasdaq Breaks Losing Streak

The Dow rose 0.4% to 40,669.4, while the S&P 500 added 0.2% to 5,569.1, both extending their seven-day winning streaks. The Nasdaq slipped 0.1% to 17,446.3, but still booked its first monthly gain since January.

The Big Picture:

Despite a headline-grabbing 0.3% GDP contraction in Q1, markets found their footing. The drop was largely attributed to temporary drags, and signs of resilient consumer spending and a cooler inflation read helped cushion sentiment.

Even amid tariff uncertainties and mixed private job data, investors are finding silver linings: the core PCE price index cooled to 2.6%, easing pressure on the Fed. Meanwhile, pending home sales surged, hinting at life in housing despite high rates.

WTI crude tumbled 3.7% to $58.16, as OPEC+ output jitters met demand worries. Gold slipped 0.8% to $3,306.70, and silver fell 2.5% to $32.75, reflecting risk-on appetite and profit-taking.

Market Movers:

  • 📉 Super Micro (SMCI) fell 11.5%, after cutting its outlook—AI tailwinds met by cyclical headwinds.

  • 📉 Newell Brands (NWL) dropped 7.5%, citing macro uncertainty and soft forward guidance.

  • 📈 Western Digital (WDC) surged 8%, riding strong Q3 revenue growth and optimistic guidance.

What They’re Saying:

“We expect the U.S. economy to skirt a recession,” said Wells Fargo Investment Institute, emphasizing resilience in consumption and cooling inflation.

WHAT WE’RE WATCHING
Events

  • Today: Department of Labor - Unemployment Claims - 8:30am

    Why You Should Care: Although it's generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions. Unemployment is also a major consideration for those steering the country's monetary policy.

  • Today: Institute for Supply Management - The Institute for Supply Management (ISM) Manufacturing Purchasing Managers' Index (PMI) - 10:00am

    Why You Should Care: It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy.

Earnings Reports

  • Today: Apple, Amazon, MicroStrategy, McDonald’s, Mastercard, CVS Health, Airbnb, Shell, Eli Lilly, Reuters, Motorola

  • Tomorrow: Berkshire Hathaway, ExxonMobil, Chevron, Shell, Cigna

MARKET BRIEF
Leading News

Microsoft's Cloud Surge Defies Gravity: Q3 Blowout Sends Shares Skyward 9%

Microsoft building in Vancouver, BC, Canadá

Photo Credit: Matthew Manuel

Why it matters:

Microsoft's stellar earnings reveal that AI investments are paying off sooner than expected, creating a moat against competitors while cushioning potential tariff impacts that have worried tech investors.

Zoom Out:

The Redmond giant's quarterly performance tells a story of remarkable resilience. Azure revenue jumped 33% — with AI contributing a whopping 16 percentage points of that growth — handily surpassing Wall Street's expectations of around 30%. (MSFT)

Despite market jitters about President Trump's tariffs potentially dampening tech spending, Microsoft's forward guidance suggests the opposite: demand for AI infrastructure is accelerating faster than the company can build it. CEO Satya Nadella reported that Microsoft is actually facing "AI capacity constraints" extending beyond June.

Key Insights:

  • Cloud momentum accelerating: Microsoft Cloud revenue reached $42.4 billion, growing 20% year-over-year. The company's Intelligent Cloud segment that includes Azure generated $26.75 billion, exceeding analyst estimates by nearly $600 million. This suggests enterprise cloud spending remains robust despite economic uncertainties.

  • Windows comeback: Commercial deployments of Windows 11 increased 75% as the October 2025 end-of-support deadline for Windows 10 approaches. This creates a potential revenue tailwind as businesses accelerate refresh cycles ahead of tariff implementation.

  • AI adoption metrics: GitHub Copilot users quadrupled to 15 million in just one year — a tangible measure of how rapidly AI tools are being embraced by developers. This positions Microsoft to capitalize on the next wave of AI-infused productivity gains.

Market Pulse:

"Demand is growing a bit faster," CFO Amy Hood told analysts. "Therefore, we now expect to have some AI capacity constraints beyond June."

Bull’s Take:

Smart investors should view Microsoft's cloud momentum as the canary in the coal mine — but singing happily, not gasping for air. The AI revolution is arriving faster than the market expected, and Microsoft has secured its position at the front of the parade.

Headlines

  • Amazon to invest $4 billion to expand rural delivery network in US (link)

  • Meta shares rise on stronger-than-expected revenue for first quarter (link)

  • Honeywell Stock Rises as Firm Posts Strong Results, Plans to Counter Tariffs (link)

  • Qualcomm forecasts Trump tariffs will dent revenue, shares fall 6% (link)

  • Shein explores US restructuring as tariffs threaten to derail London IPO (link)

  • Novartis to buy kidney disease drug maker Regulus in up to $1.7 billion deal (link)

CRYPTO
Fear & Greed

 

Headlines

  • SEC Filing Shows BlackRock Preparing $150 Billion Tokenized Treasury Trust Offering (link)

  • AI Crypto Agents Are Ushering in a New Era of ‘DeFAI’ (link)

  • FIFA to migrate its NFT collection to own EVM-compatible blockchain (link)

  • Ubisoft, LayerZero launch network for migrating crypto game assets (link)

DAILY SHARE
On the Socials

*Hat-tip to choity25