Market Update
Solid Earnings Extend Market Rally to Eighth Week
Barry Adams
21 May, 2026
New York City
Stocks on Wall Street lacked direction in early trading on Thursday, and investors reviewed the latest corporate earnings and ongoing tensions in the Middle East.
The S&P 500 Index decreased 0.1%, and the tech-heavy Nasdaq Composite inched lower by a fraction as investors digested quarter results from Walmart and Nvidia.
The seven-week-long market rally has been supported by a solid earnings season, and investors have estimated that the surge in crude oil prices is likely to be contained to a few economic sectors.
Moreover, investors have looked beyond the inflation worries, as resilient consumer spending is showing no sign of easing despite higher food, transportation, and energy prices.
U.S. Movers
Intuit Inc. dropped 13.8% to $331.08 after the company posted its fiscal third quarter results and announced its plan to layoff about 17% of its staff.
Revenue increased 10% to $8.6 billion from $7.8 billion, net income jumped 8% to $3.1 billion from $2.8 billion, and diluted earnings per share advanced to $11.09 from $10.02 a year ago.
The company raised its full-year revenue to range between $21.341 billion and $21.374 billion, an increase between 13% and 14% from a year ago.
The software company estimated full-year diluted earnings per share to range between $15.79 and $15.84.
Nvidia Corp. edged lower by 0.1% to $223.16 after the advanced chipmaker reported better-than-expected results in the fiscal first quarter ending on April 26.
Revenue soared 85% to $81.6 billion from $44.0 billion, net income soared 211% to $58.3 billion from $18.8 billion, and diluted earnings per share advanced to $2.39 from 76 cents a year ago.
Data center segment revenue jumped 92% to $75.2 billion, amid sustained demand from AI hyperscalers.
The company increased its quarterly cash dividend of 25 cents per share from 1 cent per share, payable on June 26 to shareholders on record on June 4.
In addition, the company announced an $80 billion additional share repurchase authorization, adding to its $38.5 billion remaining in the current share repurchase authorization.
Walmart Inc. decreased 1.1% to $127.99 after the retailer reported its results for the fiscal first quarter ending in April.
Revenue increased 7.1% to $175.7 billion from $164.0 billion, net income advanced 18.8% to $5.3 billion from $4.9 billion, and diluted earnings per share rose 20% to 67 cents from 56 cents a year ago.
Net sales at the U.S.-based stores advanced 4.5% to $117.2 billion from $112.2 billion, and comparable sales, excluding fuel sales, increased 4.1%, driven by a 3.0% increase in transactions and a 1.1% rise in average ticket size.
For the fiscal second quarter, the retailer guided revenue in constant currencies to rise between 4.0% and 4.5% from $175.8 billion and adjusted earnings per share to jump to between 72 cents and 74 cents from 68 cents a year ago.
Walmart reiterated its fiscal 2027 revenue to rise between 3.5% and 4.5%, adjusted earnings per share to fall between $2.75 and $2.85, and capital expenditures of 3.5% of net sales.
U.S. Movers: CAVA Group, Lowe's Companies, Nvidia, Target Corp.
Scott Peters
20 May, 2026
New York City
Nvidia Corp. increased 1.4% to $223.75 ahead of the advanced chipmaker's quarterly results after the close on Wednesday.
Lowe's Companies declined 2.1% to $213.79 despite the home improvement retailer reporting better-than-expected earnings in the fiscal first quarter ending in April.
Total sales in the quarter increased to $23.0 billion from $20.9 billion, net income edged down to $1.63 billion from $1.64 billion, and diluted earnings per share inched lower to $2.90 from $2.92 a year ago.
Comparable sales for the quarter increased 0.6%, driven by a 15.5% rise in online sales and 'continued strength in appliances, home services, and the professional segment.'
Lowe's reaffirmed its 2026 total sales to range between $92.0 billion and $94.0 billion, an increase between 7% and 9% from a year ago.
The company estimated a net interest expense of $1.6 billion, diluted earnings per share to range between $12.25 and $12.75, and capital expenditures of up to $2.5 billion.
Target Corp. increased by 0.4% to $127.80 after the retailer reported its financial results for the fiscal first quarter ending in April.
Net sales increased 6.7% to $25.4 billion from $23.8 billion, net income decreased 24.6% to $781 million from $1.04 billion, and diluted earnings per share dropped 24.5% to $1.71 from $2.27 a year ago.
Comparable traffic increased 4.4%; digital sales rose 8.9%, led by a 27% surge in the same-day delivery business segment.
The company hiked its 2026 sales growth estimate to 4% compared to 2025, two percentage points higher than the previous estimated range.
The retailer also estimated GAAP and adjusted earnings per share near the high end of the previous guidance range between $7.50 and $8.50.
CAVA Group soared 7.5% to $84.00 after the Mediterranean fast-casual restaurant chain operator revised higher its estimate of adjusted annual earnings.
Revenue in the fiscal first quarter ending on April 19 rose 32.2% to $434.4 million from $328.5 million, net income declined to $23.6 million from $25.7 million, and diluted earnings per share eased to 20 cents from 22 cents a year ago.
The fast-casual restaurant chain operator hiked its 2026 same-store sales growth range to between 4.5% and 6.5% from between 3% and 5%.
The company increased its 2026 adjusted operating income range to between $176 million and $184 million from $181 million and $191 million.
U.S. Movers: CAVA Group, Lowe's Companies, Nvidia, Target Corp.
Scott Peters
20 May, 2026
New York City
Nvidia Corp. increased 1.4% to $223.75 ahead of the advanced chipmaker's quarterly results after the close on Wednesday.
Lowe's Companies declined 2.1% to $213.79 despite the home improvement retailer reporting better-than-expected earnings in the fiscal first quarter ending in April.
Total sales in the quarter increased to $23.0 billion from $20.9 billion, net income edged down to $1.63 billion from $1.64 billion, and diluted earnings per share inched lower to $2.90 from $2.92 a year ago.
Comparable sales for the quarter increased 0.6%, driven by a 15.5% rise in online sales and 'continued strength in appliances, home services, and the professional segment.'
Lowe's reaffirmed its 2026 total sales to range between $92.0 billion and $94.0 billion, an increase between 7% and 9% from a year ago.
The company estimated a net interest expense of $1.6 billion, diluted earnings per share to range between $12.25 and $12.75, and capital expenditures of up to $2.5 billion.
Target Corp. increased by 0.4% to $127.80 after the retailer reported its financial results for the fiscal first quarter ending in April.
Net sales increased 6.7% to $25.4 billion from $23.8 billion, net income decreased 24.6% to $781 million from $1.04 billion, and diluted earnings per share dropped 24.5% to $1.71 from $2.27 a year ago.
Comparable traffic increased 4.4%; digital sales rose 8.9%, led by a 27% surge in the same-day delivery business segment.
The company hiked its 2026 sales growth estimate to 4% compared to 2025, two percentage points higher than the previous estimated range.
The retailer also estimated GAAP and adjusted earnings per share near the high end of the previous guidance range between $7.50 and $8.50.
CAVA Group soared 7.5% to $84.00 after the Mediterranean fast-casual restaurant chain operator revised higher its estimate of adjusted annual earnings.
Revenue in the fiscal first quarter ending on April 19 rose 32.2% to $434.4 million from $328.5 million, net income declined to $23.6 million from $25.7 million, and diluted earnings per share eased to 20 cents from 22 cents a year ago.
The fast-casual restaurant chain operator hiked its 2026 same-store sales growth range to between 4.5% and 6.5% from between 3% and 5%.
The company increased its 2026 adjusted operating income range to between $176 million and $184 million from $181 million and $191 million.
Optimism Prevailed On Wall Street as Investors Overlooked Inflation and Geopolitical Risks
Barry Adams
20 May, 2026
New York City
Stocks on Wall Street rebounded, crude oil prices eased, and bond yields inched lower ahead of key tech earnings.
The S&P 500 Index increased 0.3%, the tech-heavy Nasdaq Composite advanced 0.7%, and the yield on 10-year U.S. Treasury notes edged lower to 4.64%.
In the year so far, the S&P 500 index has soared more than 7%, and the Nasdaq Composite has advanced 11.2% as investors look through geopolitical tensions and inflation fears.
The sharp rise in crude oil prices has stoked overall inflation, and the price hikes are rippling through the economy to other sectors, including transportation, fertilizers, and food.
The yield on the 10-year U.S. Treasury notes stayed above 4.65% and hovered at a high last seen in January 2024.
Investors are increasingly factoring in at least two rate hikes before the end of this year, as the prolonged shutdown of the Strait of Hormuz keeps 19% of energy products from global markets.
U.S. Movers
Nvidia Corp. increased 1.4% to $223.75 ahead of the advanced chipmaker's quarterly results after the close on Wednesday.
Lowe's Companies declined 2.1% to $213.79 despite the home improvement retailer reporting better-than-expected earnings in the fiscal first quarter ending in April.
Total sales in the quarter increased to $23.0 billion from $20.9 billion, net income edged down to $1.63 billion from $1.64 billion, and diluted earnings per share inched lower to $2.90 from $2.92 a year ago.
Comparable sales for the quarter increased 0.6%, driven by a 15.5% rise in online sales and 'continued strength in appliances, home services, and the professional segment.'
Lowe's reaffirmed its 2026 total sales to range between $92.0 billion and $94.0 billion, an increase between 7% and 9% from a year ago.
The company estimated a net interest expense of $1.6 billion, diluted earnings per share to range between $12.25 and $12.75, and capital expenditures of up to $2.5 billion.
Target Corp. increased by 0.4% to $127.80 after the retailer reported its financial results for the fiscal first quarter ending in April.
Net sales increased 6.7% to $25.4 billion from $23.8 billion, net income decreased 24.6% to $781 million from $1.04 billion, and diluted earnings per share dropped 24.5% to $1.71 from $2.27 a year ago.
Comparable traffic increased 4.4%; digital sales rose 8.9%, led by a 27% surge in the same-day delivery business segment.
The company hiked its 2026 sales growth estimate to 4% compared to 2025, two percentage points higher than the previous estimated range.
The retailer also estimated GAAP and adjusted earnings per share near the high end of the previous guidance range between $7.50 and $8.50.
CAVA Group soared 7.5% to $84.00 after the Mediterranean fast-casual restaurant chain operator revised higher its estimate of adjusted annual earnings.
Revenue in the fiscal first quarter ending on April 19 rose 32.2% to $434.4 million from $328.5 million, net income declined to $23.6 million from $25.7 million, and diluted earnings per share eased to 20 cents from 22 cents a year ago.
The fast-casual restaurant chain operator hiked its 2026 same-store sales growth range to between 4.5% and 6.5% from between 3% and 5%.
The company increased its 2026 adjusted operating income range to between $176 million and $184 million from $181 million and $191 million.
Optimism Prevailed On Wall Street as Investors Overlook Inflation and Geopolitical Risks
Barry Adams
20 May, 2026
New York City
Stocks on Wall Street rebounded, crude oil prices eased, and bond yields inched lower ahead of key tech earnings.
The S&P 500 Index increased 0.3%, the tech-heavy Nasdaq Composite advanced 0.7%, and the yield on 10-year U.S. Treasury notes edged lower to 4.64%.
In the year so far, the S&P 500 index has soared more than 7%, and the Nasdaq Composite has advanced 11.2% as investors look through geopolitical tensions and inflation fears.
The sharp rise in crude oil prices has stoked overall inflation, and the price hikes are rippling through the economy to other sectors, including transportation, fertilizers, and food.
The yield on the 10-year U.S. Treasury notes stayed above 4.65% and hovered at a high last seen in January 2024.
Investors are increasingly factoring in at least two rate hikes before the end of this year, as the prolonged shutdown of the Strait of Hormuz keeps 19% of energy products from global markets.
U.S. Movers
Nvidia Corp. increased 1.4% to $223.75 ahead of the advanced chipmaker's quarterly results after the close on Wednesday.
Lowe's Companies declined 2.1% to $213.79 despite the home improvement retailer reporting better-than-expected earnings in the fiscal first quarter ending in April.
Total sales in the quarter increased to $23.0 billion from $20.9 billion, net income edged down to $1.63 billion from $1.64 billion, and diluted earnings per share inched lower to $2.90 from $2.92 a year ago.
Comparable sales for the quarter increased 0.6%, driven by a 15.5% rise in online sales and 'continued strength in appliances, home services, and the professional segment.'
Lowe's reaffirmed its 2026 total sales to range between $92.0 billion and $94.0 billion, an increase between 7% and 9% from a year ago.
The company estimated a net interest expense of $1.6 billion, diluted earnings per share to range between $12.25 and $12.75, and capital expenditures of up to $2.5 billion.
Target Corp. increased by 0.4% to $127.80 after the retailer reported its financial results for the fiscal first quarter ending in April.
Net sales increased 6.7% to $25.4 billion from $23.8 billion, net income decreased 24.6% to $781 million from $1.04 billion, and diluted earnings per share dropped 24.5% to $1.71 from $2.27 a year ago.
Comparable traffic increased 4.4%; digital sales rose 8.9%, led by a 27% surge in the same-day delivery business segment.
The company hiked its 2026 sales growth estimate to 4% compared to 2025, two percentage points higher than the previous estimated range.
The retailer also estimated GAAP and adjusted earnings per share near the high end of the previous guidance range between $7.50 and $8.50.
CAVA Group soared 7.5% to $84.00 after the Mediterranean fast-casual restaurant chain operator revised higher its estimate of adjusted annual earnings.
Revenue in the fiscal first quarter ending on April 19 rose 32.2% to $434.4 million from $328.5 million, net income declined to $23.6 million from $25.7 million, and diluted earnings per share eased to 20 cents from 22 cents a year ago.
The fast-casual restaurant chain operator hiked its 2026 same-store sales growth range to between 4.5% and 6.5% from between 3% and 5%.
The company increased its 2026 adjusted operating income range to between $176 million and $184 million from $181 million and $191 million.
Japan's Indexes Dropped 2%, JGB Yields Rose to Three-Decade Highs
Akira Ito
20 May, 2026
Tokyo
Japan's benchmark indexes sharply declined following a global bond market sell-off, and an energy-driven inflation shock reinforced inflation expectations.
The Nikkei 225 Stock Average decreased 1.6%, the TOPIX dropped 2%, and the Japanese yen eased to 158.93 against the U.S. dollar.
The yield on 10-year U.S. Treasury notes inched higher to 4.66% and reached a 16-month high amid worries of rising inflation.
The Japanese bonds also came under pressure because the prime minister, Sanae Takaichi, called on the finance ministry to compile a supplementary budget in response to rising commodity prices, fueling debt worries.
Global inflationary pressures have intensified over the last two months, following the prolonged disruptions in the Strait of Hormuz and inflicting downward pressures on the growth of the oil-import-dependent economies of Asia.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 1.6% to 59,561.26, and the broader TOPIX dropped 2% to 3,774.71.
AI-led stocks led decliners in Tokyo amid worries of global stagflation and skepticism about the sustainability of the elevated level of investment in AI-driven data centers.
SoftBank Group, Tokyo Electron, Advantest Corp., Lasertec, and Fujikura Ltd. dropped between 3% and 9%.
Nippon Yusen KK declined 0.6% to ¥5,586.0, Mitsui O.S.K. Lines dropped 1% to ¥5,760.0, and Kawasaki Kisen Kaisha Ltd. decreased 0.4% to ¥2,570.50.
Japan's Indexes Dropped 2%, JGB Yields Rose to Three-Decade Highs
Akira Ito
20 May, 2026
Tokyo
Japan's benchmark indexes sharply declined following a global bond market sell-off, and an energy-driven inflation shock reinforced inflation expectations.
The Nikkei 225 Stock Average decreased 1.6%, the TOPIX dropped 2%, and the Japanese yen eased to 158.93 against the U.S. dollar.
The yield on 10-year U.S. Treasury notes inched higher to 4.66% and reached a 16-month high amid worries of rising inflation.
The Japanese bonds also came under pressure because the prime minister, Sanae Takaichi, called on the finance ministry to compile a supplementary budget in response to rising commodity prices, fueling debt worries.
Global inflationary pressures have intensified over the last two months, following the prolonged disruptions in the Strait of Hormuz and inflicting downward pressures on the growth of the oil-import-dependent economies of Asia.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 1.6% to 59,561.26, and the broader TOPIX dropped 2% to 3,774.71.
AI-led stocks led decliners in Tokyo amid worries of global stagflation and skepticism about the sustainability of the elevated level of investment in AI-driven data centers.
SoftBank Group, Tokyo Electron, Advantest Corp., Lasertec, and Fujikura Ltd. dropped between 3% and 9%.
Nippon Yusen KK declined 0.6% to ¥5,586.0, Mitsui O.S.K. Lines dropped 1% to ¥5,760.0, and Kawasaki Kisen Kaisha Ltd. decreased 0.4% to ¥2,570.50.
PBoC Holds Reference Rates Steady, Hong Kong Tech Stocks Waver
Li Chen
20 May, 2026
Hong Kong
The movements in the bond market dominated market sentiment in stock trading amid persistent inflation worry rooted in the prolonged Middle East conflict.
The Hang Seng Index decreased 0.6%, and the mainland-focused CSI 300 Index eased 0.3%, as the yield on the U.S. Treasury notes reached the highest since 2007.
The yield on the 10-year U.S. Treasury notes advanced to 4.66% as investors reacted to elevated energy product prices and prolonged closure of the Strait of Hormuz.
PBoC Holds Rates Steady Amid Weakening Economic Data
The People's Bank of China held steady its reference rates for most consumer loans and property loans for the twelfth month in a row.
The central bank left unrevised the one-year loan prime rate at 3.0% and the five-year LPR rate at 3.5%, underscoring the cautious stance of the policymakers despite the rising inflationary pressures rooted in the supply disruptions through the Strait of Hormuz.
The policymakers held reference rates amid weakening economic data, as in April retail sales rose at the weakest pace in four years, and industrial output rose at the slowest pace since 2023.
China Indexes and Stocks
The Hang Seng Index decreased 0.6% to 25,655.44, and the mainland-focused CSI 300 Index declined 0.3% to 4,839.16.
Technology and AI-driven stocks traded down for the second consecutive session as caution prevailed in trading in Shanghai and Hong Kong.
CATL, Foxconn Industrial Internet, Luxshare Precision, Alibaba Group, Tencent Holdings, and Baidu declined between 0.8% and 3%.
Property developers in Hong Kong edged lower 2%, despite the PBoC holding rates steady amid mounting inflationary pressures.
China Vanke, Sun Hung Kai Properties, Henderson Land Group, CK Asset Holdings, and New World Development declined between 2% and 4%.
PBoC Holds Reference Rates Steady, Hong Kong Tech Stocks Waver
Li Chen
20 May, 2026
Hong Kong
The movements in the bond market dominated market sentiment in stock trading amid persistent inflation worry rooted in the prolonged Middle East conflict.
The Hang Seng Index decreased 0.6%, and the mainland-focused CSI 300 Index eased 0.3%, as the yield on the U.S. Treasury notes reached the highest since 2007.
The yield on the 10-year U.S. Treasury notes advanced to 4.66% as investors reacted to elevated energy product prices and prolonged closure of the Strait of Hormuz.
PBoC Holds Rates Steady Amid Weakening Economic Data
The People's Bank of China held steady its reference rates for most consumer loans and property loans for the twelfth month in a row.
The central bank left unrevised the one-year loan prime rate at 3.0% and the five-year LPR rate at 3.5%, underscoring the cautious stance of the policymakers despite the rising inflationary pressures rooted in the supply disruptions through the Strait of Hormuz.
The policymakers held reference rates amid weakening economic data, as in April retail sales rose at the weakest pace in four years, and industrial output rose at the slowest pace since 2023.
China Indexes and Stocks
The Hang Seng Index decreased 0.6% to 25,655.44, and the mainland-focused CSI 300 Index declined 0.3% to 4,839.16.
Technology and AI-driven stocks traded down for the second consecutive session as caution prevailed in trading in Shanghai and Hong Kong.
CATL, Foxconn Industrial Internet, Luxshare Precision, Alibaba Group, Tencent Holdings, and Baidu declined between 0.8% and 3%.
Property developers in Hong Kong edged lower 2%, despite the PBoC holding rates steady amid mounting inflationary pressures.
China Vanke, Sun Hung Kai Properties, Henderson Land Group, CK Asset Holdings, and New World Development declined between 2% and 4%.
Chip Stocks Led Decliners On Wall Street as Benchmark Indexes Stayed Near Recent Record Highs
Barry Adams
19 May, 2026
New York City
Wall Street indexes extended their decline to the second consecutive session amid anxieties over the rising level of layoffs in the tech sector.
The S&P 500 Index decreased 0.3%, and the tech-heavy Nasdaq Composite fell 0.6%, and the yield on the 10-year U.S. Treasury notes rose to a one-year high of 4.61%.
Chipmakers fell amid worries that the companies may struggle to meet rising demand from AI-driven data centers after comments from Seagate Technology CEO Dave Mosley.
Mosley said at a JPMorgan Chase conference that building new factories could take too long to benefit from the demand boom, as chipmakers struggle with supply constraints from equipment makers and supply disruptions from key chemicals.
The S&P 500 index and the Nasdaq Composite rallied to new highs in the previous week as investors continued to allocate fresh capital to AI trades.
However, investor sentiment remained fragile amid valuation worry and growing anxieties over the rising risks of global stagflation.
U.S. Movers
Home Depot declined 0.3% to $299.00 after the do-it-yourself retailer reported better-than-expected fiscal first-quarter results ending on May 3.
Revenue increased 4.8% to $41.8 billion from $39.8 billion, net income decreased 4.3% to $4.3 billion from $3.4 billion, and diluted earnings per share fell 4.3% to $3.31 from $3.46 a year ago.
Comparable sales at U.S. stores rose 0.4% and advanced 0.6% across all locations.
The company reaffirmed its fiscal 2026 outlook, with total sales growth falling between 2.5% and 4.5% and comparable sales growth ranging between flat and 2.0%.
Diluted earnings per share are expected to range between flat and 4% from $14.23 in fiscal 2025.
Akamai Technologies decreased 3.3% to $145.75 after the cloud computing and cybersecurity company proposed to raise $2.6 billion through a convertible senior note offering.
Chip Stocks Led Decliners On Wall Street as Benchmark Indexes Stayed Near Recent Record Highs
Barry Adams
19 May, 2026
New York City
Wall Street indexes extended their decline to the second consecutive session amid anxieties over the rising level of layoffs in the tech sector.
The S&P 500 Index decreased 0.3%, and the tech-heavy Nasdaq Composite fell 0.6%, and the yield on the 10-year U.S. Treasury notes rose to a one-year high of 4.61%.
Chipmakers fell amid worries that the companies may struggle to meet rising demand from AI-driven data centers after comments from Seagate Technology CEO Dave Mosley.
Mosley said at a JPMorgan Chase conference that building new factories could take too long to benefit from the demand boom, as chipmakers struggle with supply constraints from equipment makers and supply disruptions from key chemicals.
The S&P 500 index and the Nasdaq Composite rallied to new highs in the previous week as investors continued to allocate fresh capital to AI trades.
However, investor sentiment remained fragile amid valuation worry and growing anxieties over the rising risks of global stagflation.
U.S. Movers
Home Depot declined 0.3% to $299.00 after the do-it-yourself retailer reported better-than-expected fiscal first-quarter results ending on May 3.
Revenue increased 4.8% to $41.8 billion from $39.8 billion, net income decreased 4.3% to $4.3 billion from $3.4 billion, and diluted earnings per share fell 4.3% to $3.31 from $3.46 a year ago.
Comparable sales at U.S. stores rose 0.4% and advanced 0.6% across all locations.
The company reaffirmed its fiscal 2026 outlook, with total sales growth falling between 2.5% and 4.5% and comparable sales growth ranging between flat and 2.0%.
Diluted earnings per share are expected to range between flat and 4% from $14.23 in fiscal 2025.
Akamai Technologies decreased 3.3% to $145.75 after the cloud computing and cybersecurity company proposed to raise $2.6 billion through a convertible senior note offering.