CWS Market Review – May 30, 2025
“THIS IS A GREAT TIME TO BUY!!!” – President Donald Trump, April 9, 2025
This week’s epigraph is the same one I ran seven weeks ago. I have to concede that President Trump was correct in his market call. The market has mostly walked back a nasty correction built on fears of an ugly trade war.
To be fair to myself, though, at the time, I said I agreed with the president, and the stock market has responded nicely over the last seven weeks. In fact, we’re not too far from a new all-time high.
However, the big news this week is that the dynamics of the trade war may have permanently shifted. On Wednesday, a federal court invalidated many of President Trump’s tariffs.
As is often the case, the issue before the court wasn’t a particular policy, but rather that policy’s legality: not tariffs, but rather what presidents are allowed to do. In this case, the U.S. Court of International Trade said the president overstepped his authority when he imposed his reciprocal tariffs.
Trump’s legal argument is based on the International Emergency Economic Powers Act of 1977. The law doesn’t mention tariffs, and the court said, “no dice.”
This ruling probably won’t end the trade war, but it will make installing tariffs more difficult. Ultimately, this will probably wind up being decided by the Supreme Court.
I’m not precisely sure what the U.S. gained from these recent ructions, but Wall Street is pleased. I’m more confident in encouraging investors not to get in the way of a charging bull.
We just wrapped up a very good earnings season. This week, Nvidia impressed Wall Street with another strong earnings report. The Federal Reserve appears to be on hold for the time being. Even the odds of a September hike are far from a sure-thing.
Our Buy List continues to perform well. Last week, Intuit had a blow-out earnings report. The company beat earnings and raised guidance. The shares rallied 8% on Friday, plus another 4.4% on Tuesday. On Thursday, the stock reached a new 52-week high. We have a 20% gain this year with Intuit.
This week, it was Heico’s turn. The company beat earnings ($1.12 to $1.03), and the stock jumped over 7% after its earnings report. Heico also reached a new high on Thursday. We have a 26% gain this year with Heico.
I was very happy with this report, so let’s start by taking a deep dive into what Heico had to say this week.