Markets steady with slight red open, PANW misses earnings, TOL beats, concerns over proposed tax bill

From Nasdaq: 2025-05-20 18:39:00

Market indexes opened in the red but remained steady throughout the day. The Dow slipped -114 points, the S&P 500 fell -0.39%, the Nasdaq dropped -0.38%, and the small-cap Russell 2000 was up +0.05%. Concerns over a proposed tax bill increasing the deficit emerge as major indexes continue to rise.

Palo Alto Networks reported mixed results in its fiscal Q3, missing earnings by 2 cents but beating revenue estimates with +15% year-over-year gains. Shares reacted erratically in late trading. Luxury homebuilder Toll Brothers posted strong beats in fiscal Q2, with earnings of $3.50 per share and revenues of $2.71 billion.

Tomorrow, we await news on potential trade deals and Congress’s decision on the tax bill. Retailers, including Lowe’s, Target, and TJX Companies, are set to report earnings. Estimates for quarterly earnings and sales are negative, except for TJX’s +4% revenue growth. The economy remains in focus as the market continues its upward trend.



Read more at Nasdaq: Markets Cool on Low News Cycle; PANW, TOL Report