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This is The Takeaway from today's Morning Brief, which you can sign up to receive in your inbox every morning along with:
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The chart of the day
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What we're watching
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What we're reading
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Economic data releases and earnings
It has been a week.
Stocks entered the green for the year as investors cheered the US-China trade thaw. Five CEOs this week reminded me that this is a truce, not an agreement, and one top Fortune 500 executive who recently met with the Trump administration to discuss tariffs told me the 30% level could be the new norm, barring a major breakthrough.
The "Magnificent Seven" tech stocks — Microsoft (MSFT), Amazon (AMZN), Apple (AAPL), Alphabet (GOOGL), Meta (META), Tesla (TSLA), and Nvidia (NVDA) — continued their renewed ascent.
Earnings from economic bellwethers Cisco (CSCO) and Walmart (WMT) didn't completely suck (though they were not perfect).
We even had some history at the Nasdaq. On his IPO day, eToro's (ETOR) co-founder and CEO, Yoni Assia, pointed out that his dad took a software company public at the exchange in 1991. They became the first father and son to take a company public on the Nasdaq. You will also notice that we actually had our first major post-"Liberation Day" IPO, though I am hearing that any other big name eyeing public markets will be waiting until the fall, at least.
Through all of this frenzied activity, you may be surprised what has really gotten under my skin.
I am reminded how absolutely useless earnings estimates and corporate guidance (if a company decides to issue it) are in a backdrop where one social media post could blow up a company's careful financial planning. If you are relying on earnings estimates and corporate guidance to inform your investing decision-making process right now, just stop it. It's a total waste of time.
"If [CEOs] didn't get away from [guidance], they should," former Medtronic (MDT) CEO Bill George said on Yahoo Finance's Opening Bid podcast (see video above or listen below). "I think they're smart to pull it."
George told me off-camera that, in the 10 years when he was the CEO of Medtronic, he only missed earnings estimates once, in part because he thought the price-earnings ratio on the stock was too high and wanted to reset expectations more reasonably.
So the guy — who also sat on the boards of Target, ExxonMobil, and Goldman Sachs — knows what he is talking about here.
"I'm just shooting in the wind to give you a number when I don't know what the ground rules are," George explained. "If you tell me what the ground rules are, I'll tell you what we'll do. But I need to have some ground rules. I'll tell you when new products are coming to market; I can give you some idea of how we're going to do revenue-wise and help you figure it out."