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Stock Market Live May 8: UK Talks Trade With Trump, S&P 500 (VOO) Rises Again
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Key Points
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The US and UK are set to announce a new trade agreement that may lower tariffs and boost trade.
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President Trump renewed criticism of Fed Chairman Powell this morning after the FOMC decided not to lower interest rates yesterday.
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Live Updates
Live Coverage Has Ended
S&P 500 wins, Expedia Group Stock Loses
The S&P 500 closed up 0.6% today, and the Vanguard S&P 500 ETF closed up 0.7%.
Online travel company and S&P 500 component Expedia Group (Nasdaq: EXPE) reported better than expected adjusted earnings of $0.40 per share after the close. Revenue came up short, however, revenue forecasts were weak, and the company cut forecasts for gross bookings growth. Expedia stock is down 6.5% after hours, erasing its earlier 1.5% gain.
Trump Talks Tariffs
Speaking at the White House this morning on the subject of the new trade deal with the UK, President Trump confirmed that he is seeking “a very good relationship with China” on trade, and also intends to “make a deal with Europe,” apparently referring to the entire European Union.
Specific details are few, but investors seem to like both comments. Here on the other side of noon, the Vanguard S&P 500 ETF is now up 1.5%.
Uber Looks Recession-Resistant
Barclays Capital raised its price target on Uber (NYSE: UBER) from $86 to $97, and reiterated its “overweight” rating on the stock. (That’s not fat-shaming; it’s a compliment). After seeing Uber’s latest earnings report, Barclays commented that the ride-sharing company is “executing solidly.” The banker added that Uber’s business model looks “recession resistant.”
Bank of America seconded the emotion, also hiking Uber to $97 and forecasting improved free cash flow in 2026.
Profits Will Be Harder to Come By
Bad news out of the the Bureau of Labor Statistics today. Nonfarm business labor productivity fell at an 0.8% annual rate in Q1 as workers spent more time (0.6% more hours worked) to produce fewer goods (industrial output shrank 0.3%). The hourly cost of labor also increased 4.8% for employers.
This was less of a cost increase than forecast, which is good. But the overall import of the numbers is probably not great news for corporate profits.
Another Day in the Green
Markets are open now and the pre-market gains are largely holding up. Both the S&P 500 index and the ETF that tracks it are up about 0.6%. Investors await details on the announced US-UK trade deal. The press conference is expected to begin at 10 a.m. ET.
This article will be updated throughout the day, so check back often for more daily updates.
President Trump will hold a press conference later this morning to announce a “full and comprehensive” trade agreement to be signed with the United Kingdom, the first of “many other deals, which are in serious stages of negotiation, to follow,” as the President promised on Truth Social today. The U.S. currently has a trade surplus with the U.K., and has imposed only 10% “reciprocal” tariffs on the country, as well as 25% tariffs on steel, aluminum, and car imports. Still, the deal may give a small boost to bilateral trade, and perhaps more importantly, create a framework for further deals to be signed with other nations.
Investors like the news, and the Vanguard S&P 500 ETF (NYSEMKT: VOO) is trading 0.8% higher in the pre-market, as is the S&P 500 index that it tracks.
In less optimistic news, the President is rattling cages at the Fed this morning, calling Fed Chairman Jerome Powell “a FOOL, who doesn’t have a clue” after the Fed declined to lower interest rates at the Federal Open Market Committee meeting yesterday.
Earnings
Meanwhile, earnings season rolls onward, with well over 100 companies reporting their Q1 results this morning.
Oil major and S&P 500 component ConocoPhillips (NYSE: COP) reported a 6% earnings beat, and told investors it plans to cut capital spending this year to help keep profits flowing. Liquefied natural gas company Cheniere Energy (NYSE: LNG) wasn’t so lucky, missing earnings by 42% despite reporting significantly stronger revenue than expected.
In entertainment, S&P 500 component Warner Brothers Discovery (Nasdaq: WBD) reported a revenue miss and an $0.18 per share loss that was larger than expected.
In e-commerce, Shopify (Nasdaq: SHOP) said Q1 revenue was $2.4 billion, and more than expected. The company warned Q2 revenue will grow better than 20%, but gross profit less than 20%, however. Analysts were expecting profits to grow faster, and Shopify stock is slipping pre-market.
Analyst Calls
Positive earnings reports are winning praise on Wall Street. DZ Bank this morning upgraded Advanced Micro Devices (Nasdaq: AMD) to buy after its earnings beat yesterday. Presidents Capital Management upgraded Disney (NYSE: DIS) to buy for a similar reason.
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