Trading results for 20 May 2025
Even before Tuesday’s session began, many analysts agreed on one thing: investors needed a break, and there was little reason to expect anything extraordinary from the market. And so it happened. The day’s trading was calm, with no spikes in volatility or excess emotion. A moderate wave of negativity set in early and kept the bulls subdued for the entire session – not that they tried very hard.
Not even relatively decent earnings from Home Depot (HD, -0.61%) could turn the tide. Although profits slightly missed expectations ($3.56 per share vs forecast of $3.53), sales exceeded projections by $600 million. Initially, Home Depot shares jumped nearly 3% after the report, but by the close of trading the bears had dragged them below the waterline. The day ended with a 0.61% decline. The sharp market reaction looks justified – in a sense, Home Depot will have to endure sluggish performance until the macroeconomic outlook improves.
Given this backdrop, there was little chance of market growth. U.S. indexes spent the day mostly flat, posting slight losses. Even a late-session push by the bulls could not lift them into positive territory. The Dow Jones closed down 0.27%, while the S&P 500 lost 0.39%. Trading volumes were modest, hitting their lowest level of the year.
A similar picture emerged for the ITS index family. However, the ITS World Index (ITSW) managed to close with a symbolic gain of 0.02%, crossing the important psychological threshold of 1300 points. The historical high remains just over 1.5% away, but the move was still welcome.
Meanwhile, the ITS Shariah Index (ITSS) mirrored the performance of its U.S. peers – the S&P 500 and NASDAQ Composite – with a 0.38% drop. There was little talk of growth: the best performer in the index, Merck & Co (MRK), gained less than 1% on the day – just as it had the previous session. In fact, pharmaceutical stocks have been leading the market lately. On Tuesday, the top three performers in ITSS were all from that sector – Merck & Co, Johnson & Johnson (JNJ), and Procter & Gamble (PG).
In contrast, the ITSW index was led entirely by European and Asian companies, which have overtaken their American counterparts in recent days. The top performer was Israeli software firm Monday.com Ltd (MNDY, +4.13%), which has been rallying for a week following strong quarterly results. Close behind was Japanese electronics giant Sony Group (SONY, +3.04%), whose shares have attracted significant interest over the past two days after reporting earnings per share 30% above forecasts (22 cents vs 17 expected). As we can see, when America stalls, the ITSW index has a “lifeline” – non-American stocks that ensure steadier performance. Geographic diversification wins the day!
Overall, the market environment saw little change on Tuesday. Uncertainty remains high amid the introduction of new tariffs. The optimism from last week – sparked by a temporary easing of tariffs between the U.S. and China – is fading. The key word here is “temporary”. Investors appear to be waiting for stronger and clearer market signals before deciding on their next move.