The stock market has a funny way of humbling you just when you think you’ve caught the rhythm of a winning streak. On Monday, May 5, 2025, the S&P 500 and the Dow Jones Industrial Average finally snapped their nine-session rally. It wasn't a total bloodbath, but for anyone watching the earnings calendar May 5 2025, it was a masterclass in how "good" news can still lead to a red screen.
Investors woke up to a mix of geopolitical tension and a literal pile of quarterly reports. By the time the closing bell rang, the S&P 500 had dipped about 0.6%. The tech-heavy Nasdaq took a slightly harder hit, falling 0.7%. Honestly, it felt like the market was just holding its breath for the upcoming Fed meeting and more clarity on those looming tariff discussions.
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The Big Names That Moved the Needle
Monday morning started with a flurry of activity. Several heavy hitters across the industrial, medical, and food sectors dropped their numbers, and the reactions were, well, chaotic.
Zimmer Biomet (ZBH) and the "Tariff Shadow"
Zimmer Biomet arguably had the roughest day in the S&P 500. Their stock didn’t just slip; it plummeted nearly 12%.
The producer of orthopedic implants—you know, the folks making the artificial hips and knees that half the aging population needs—actually lowered their earnings outlook for the rest of 2025. Why? Tariffs. Management noted that new trade policies could eat $60 million to $80 million out of their operating profits this year. It was a stark reminder that even if a company is operationally sound, the stroke of a political pen in D.C. can change the math overnight.
ON Semiconductor (ON)
Over in the chip world, ON Semiconductor (onsemi) managed to top profit estimates, but the market didn't care. The stock fell 8.4%.
Revenue was down 22% compared to the previous year. That’s a massive gap. The company pointed to "softness" in the automotive market, which is a polite way of saying people aren't buying high-tech cars as fast as the industry hoped. If you’re tracking the earnings calendar May 5 2025, onsemi was the poster child for the "beat the estimate but lose the war" phenomenon.
Tyson Foods (TSN)
Tyson Foods also struggled, dropping 7.8%. Their sales came in lower than expected for the fiscal second quarter.
The real kicker for Tyson wasn’t just the chicken or beef prices. They had to set aside roughly $340 million for an antitrust investigation settlement regarding pork price-fixing. When you’re dealing with a legal bill that large, even decent adjusted earnings per share (EPS) can't save the stock price from a slide.
Who Actually Won on May 5?
It wasn't all gloom. A few companies managed to buck the trend.
- GoDaddy (GDDY): They were the top performer in the S&P 500, gaining 3.4%. They were basically recovering from a rough Friday, but beating revenue and EPS estimates gave them the momentum they needed.
- EQT Corp (EQT): Natural gas got a boost. EQT shares jumped 3.2% after a major upgrade from UBS.
- Airlines: Delta Air Lines (DAL) gained 3%, mostly because oil prices were sliding. Lower fuel costs are basically a direct injection of cash for the airlines.
Breaking Down the Numbers: A Mid-Season Reality Check
By May 5, we were more than halfway through the Q1 earnings season. According to FactSet data from that period, about 72% of S&P 500 companies had already reported.
The "blended" earnings growth rate was sitting at a surprisingly strong 12.8%. On paper, that’s great—it’s the second straight quarter of double-digit growth. But look closer. Analysts were already slashing their estimates for the second quarter and the rest of 2025.
There's a growing divide between what companies did in the first three months of the year and what they think they can do for the next nine. The word "uncertainty" was mentioned more on earnings calls during the first week of May than almost any other time in the last five years.
Sector Winners and Losers (Q1 2025 Blended)
| Sector | Earnings Growth | Context |
|---|---|---|
| Healthcare | +46% | Massive rebound, but very top-heavy. |
| Tech/Info Systems | +17% | AI infrastructure is still paying the bills. |
| Energy | Contraction | Falling crude prices are starting to bite. |
| Consumer Staples | Contraction | Inflation-weary shoppers are finally pulling back. |
The "Tariff" Problem Nobody Can Ignore
What really defined the earnings calendar May 5 2025 wasn't just the EPS numbers. It was the "T-word."
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A record number of companies—at least 51 in the S&P 500 by early May—had issued specific statements about how tariffs were affecting their 2025 bottom lines. We saw a lot of "reaffirming guidance excluding tariff impacts," which is basically corporate-speak for "we have no idea what's going to happen."
When companies like Zimmer Biomet start talking about moving manufacturing plants to different countries just to dodge a 10% or 20% tax, you know the vibe in the boardroom has shifted from "growth" to "survival."
What Most People Missed This Week
While everyone was staring at the tickers for Tyson and onsemi, the macro data was whispering something different.
The Commerce Department had just released figures showing the U.S. economy actually contracted by 0.3% in the first quarter of 2025. A big reason? A massive surge in imports. Usually, that means people are spending more, but in this case, it looked like businesses were front-loading their inventory to get ahead of those aforementioned tariffs.
It creates a "stutter" in the GDP data that makes the economy look weaker than it probably is. But in the world of high-frequency trading, perception is reality.
Actionable Takeaways for Your Portfolio
If you're looking back at the lessons from May 5, here’s how to handle the rest of the year:
- Watch the "Guidance" not the "Beat": A company can beat earnings by a mile, but if they lower their full-year outlook (like Zimmer Biomet), the stock is going to get hammered. Focus on what they say about the next six months.
- Monitor the Margin Squeeze: Revenue growth is great, but if expenses (like tariffs or legal settlements) are rising faster, that growth is hollow. Look for companies with high "accounting quality"—where reported earnings actually match the cash flowing into the bank.
- Diversify Away from Trade War Casualties: If a company manufactures 80% of its goods in a country facing new trade barriers, they’re in for a volatile ride. Companies with diversified, localized supply chains are the safer bet right now.
- Oil is a Double-Edged Sword: Falling oil prices are bad for your energy stocks but great for your airlines and shipping companies. Play the rotation.
The market isn't broken, but it's definitely changing its priorities. The days of "easy money" rallies are being replaced by a much more scrutinized, "show me the cash" environment.
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Review your current holdings for exposure to international supply chains. If more than 25% of a company's COGS (Cost of Goods Sold) is tied to imported materials, it's time to dig into their latest 10-Q filing to see how they plan to mitigate tariff risks. Pay close attention to companies that are "re-shoring" or have existing facilities in Mexico or Southeast Asia, as they may have a competitive advantage in the current trade climate.