Latest / Key Markets & Headlines / Key Markets & Headlines — Friday, May 8, 2026
Transcript
- Key markets and headlines for today. The most market-moving story this morning is the escalating tensions near the Strait of Hormuz, where the United States and Iran clashed in a series of incidents that threaten to fracture a fragile ceasefire and disrupt global energy flows. The Iranian army seized an oil tanker, accusing it of attempting to disrupt Iranian oil exports, while US forces targeted missile and drone launch sites they said were responsible for attacks on three American warships transiting the strait. No vessels were hit, according to US Central Command, but the situation remains volatile. President Donald Trump confirmed that a monthlong ceasefire is still in effect, but he warned of more intense strikes if Iran refuses to agree to US terms for a permanent end to the war. Talks continue, with Iran expected to respond via Pakistan, acting as a mediator, in the coming days. The stakes are high, as the conflict has already killed thousands and sparked a global energy crisis, with oil prices surging and ripple effects being felt in markets worldwide. Turning to equities, US stocks and gold are both on track for a fourth consecutive year of double-digit gains, a rare occurrence in market history. The S&P 500 is set for an annualized gain of twenty percent, while gold is on pace for a thirty percent rally, according to strategists at Bank of America. Such extended advances have only happened a handful of times, including during World War Two, the postwar boom, and the late nineties tech bubble for equities, and the stagflation era of the nineteen seventies for gold. The Bank of America team sees small caps, emerging markets, and commodities all benefiting from a bullish secular turning point, thanks to the resilience of the US economy. Consensus forecasts now call for nominal GDP growth of five and a half percent this year, with earnings growth at twenty percent. Materials stocks, which currently make up just two percent of the S&P 500 and are near thirty-year lows, are tipped as the next sector to watch, driven by a geopolitical grab for resources, increased military spending, the artificial intelligence capital expenditure boom, and efforts to address housing shortages. In the housing market, US mortgage rates climbed for the second straight week, threatening to stall the spring home sales season. The average rate for thirty-year fixed loans rose to six point three seven percent, up from six point three percent last week, matching levels last seen in early April. A year ago, rates were at six point seven six percent. Earlier this year, rates briefly dipped below six percent, raising hopes for a rebound in home sales, but the war in Iran has pushed oil prices and borrowing costs higher, putting that recovery in jeopardy. For the first time this year, new listings grew at a faster pace than home sales, according to Zillow. Looking at global trade, Brazil set a monthly export record in April, with exports totaling thirty-four point one five billion dollars, a fourteen point three percent increase from a year earlier. The country’s trade surplus rose thirty-seven and a half percent to ten point five billion dollars, driven by a seventeen point nine percent year-on-year export increase in the extractive industry, as war in the Middle East propelled oil prices higher. Shifting to the United Kingdom, the latest local and regional elections are shaping up as a pivotal test for Prime Minister Keir Starmer. Early expectations suggest heavy losses for Labour in local councils—potentially around one thousand eight hundred fifty seats—while insurgent parties like Reform UK and the Greens are projected to make major gains, signaling a breakdown of the traditional Labour–Conservative dominance. The Conservatives are also expected to continue losing ground, while the Liberal Democrats could pick up seats. In Scotland and Wales, Labour faces further setbacks, trailing the Scottish National Party and Plaid Cymru respectively. A poor showing could trigger a leadership challenge against Starmer, whose approval ratings are at historic lows. Internal party tensions are rising, with potential rivals such as Angela Rayner and Wes Streeting waiting to gauge the fallout. The political uncertainty is already affecting markets, with UK borrowing costs hitting a twenty-eight-year high amid concerns that instability could push Labour toward looser fiscal policy. In Washington, President Trump’s ten percent global tariffs were declared unlawful by a federal trade court, dealing a fresh blow to the administration’s economic agenda. A divided three-judge panel at the US Court of International Trade in Manhattan granted a request by a group of small businesses and two dozen mostly Democrat-led states to invalidate the tariffs, which were imposed in February under a rarely used section of the Trade Act of 1974. For now, the ruling only immediately blocks the administration from enforcing the tariffs against the two companies that sued and Washington State, but the decision could have broader implications. President Trump criticized the ruling, saying, “We had two radical left judges who voted against it. So nothing surprises me with the courts. Nothing surprises me. So we always do it a different way. We get one ruling and we do it a different way.” Turning to China, Nvidia CEO Jensen Huang said he would gladly join President Trump on an upcoming visit to China if invited, signaling that he has yet to receive an official offer. The China summit is slated for May fourteenth and fifteenth, and Huang’s potential absence would be notable given his close relationship with Trump and his outspoken views on US-China relations. Blackstone CEO Steve Schwarzman and Citigroup head Jane Fraser are already set to join Trump for the summit, which will include a high-stakes meeting with Chinese President Xi Jinping. Chinese officials are reportedly uneasy about holding the meeting before the war in Iran is resolved, but Trump is moving forward with plans. In Thailand, a key company behind the country’s national artificial intelligence effort is suspected of helping to smuggle billions of dollars’ worth of Super Micro Computer servers containing advanced Nvidia chips to China, with Alibaba named as one of several end customers. US prosecutors have outlined a scheme involving Super Micro’s co-founder, an unnamed Southeast Asian company—identified as Bangkok-based OBON Corp.—and a network of third-party brokers to divert the AI semiconductors in violation of US trade rules. OBON is responsible for the creation of Siam AI, Thailand’s sovereign cloud champion, and has deployed Nvidia servers in a Bangkok data center as part of the country’s AI roadmap. Now, let’s move to corporate news and earnings. Apple, ticker A-A-P-L, has reached the late stages of development for new AirPods with built-in cameras, marking a significant milestone for what could be its first wearable device designed for the artificial intelligence era. The earbuds, which are in advanced testing, feature cameras that act as eyes for the Siri digital assistant, capturing low-resolution visual information from the space surrounding the user. The cameras are not intended for taking photos or video. Other than longer stems to accommodate the cameras, the product will resemble the AirPods Pro 3. Apple is betting that this device can capitalize on the success of AirPods while vaulting it into AI-enhanced hardware, an area where it faces competition from OpenAI, Meta, and others. Airbnb, ticker A-B-N-B, boosted its annual forecast on robust bookings in major markets across the Americas, even as it posted a significant jump in spending as part of efforts to diversify its business. The company expects annual revenue growth to accelerate to the low- to mid-teens, up from its previous guidance of at least low double digits. Analysts had projected a twelve percent increase. Airbnb’s first-quarter net income was one hundred sixty million dollars, below the one hundred eighty million expected by analysts, while sales and marketing expenses surged thirty-three percent to seven hundred fifty-one million, far exceeding Wall Street’s projection. Despite increased cancellations in the region that includes the Middle East, overall nights booked jumped nine percent from a year ago, topping estimates. In Asia, first-time bookers in India grew more than seventy-five percent, and in Latin America, Mexico continued to post double-digit nights growth. The company expects continued headwinds from the Middle East conflict in the second quarter, which could slow overall growth in nights and seats booked. Airbnb projected second-quarter revenue of three point five four billion to three point six billion dollars, surpassing estimates. Affirm, ticker A-F-R-M, reported a surge in profit in its fiscal third quarter, with net income of one hundred two point nine million dollars, or thirty cents a share, compared with two point eight million, or one cent a share, a year earlier. Analysts had expected earnings of seventeen cents a share. Revenue jumped thirty-three percent to one point zero four billion dollars, driven by gains on the sale of loans and increases in network revenue and interest income. Gross merchandise volume was eleven point six billion, up from eight point six billion a year earlier. About forty percent of the growth came from direct merchant point-of-sale integrations, with the remainder split between the direct-to-consumer business and wallet partnerships. Affirm raised its guidance for full-year revenue to four point one eight billion to four point two one billion dollars, above analyst expectations. The company also retooled its software engineering to be powered by artificial intelligence, with code now written by AI bots, according to CEO Max Levchin. CarGurus, ticker C-A-R-G, reported solid top-line growth in the first quarter, with revenue rising fifteen percent year over year to approximately two hundred forty-four million dollars, supported by continued investment in AI-driven product innovation. Gross profit grew fourteen percent with strong margins of ninety-two percent, and key operating metrics improved, including a seven percent increase in total paying dealers and higher revenue per dealer in both the US and international markets. Adjusted EBITDA reached eighty point two million, up seventeen percent and above guidance, reflecting strong underlying performance. However, profitability was pressured by higher costs and one-time charges, including about twenty million in impairments, leading to a twenty-three percent decline in GAAP net income to thirty-two point two million and margin compression. The company repurchased one hundred seventy-five million dollars of stock in the quarter, contributing to a sharp decline in cash balances. Looking ahead, CarGurus guided to continued revenue growth in the second quarter and for the full year, though it expects modest margin compression as it continues to invest in growth initiatives. Coinbase, ticker C-O-I-N, posted a challenging first quarter, with revenue falling thirty-one percent year over year to one point four one billion dollars, worse than expected, due to declining token prices and weaker trading volumes. The company reported a net loss of three hundred ninety-four million dollars, compared to a sixty-six million profit last year, reflecting both operating weakness and unrealized losses on crypto holdings. The miss on both revenue and EBITDA disappointed investors, sending the stock lower. In response, Coinbase is cutting about fourteen percent of its workforce, or roughly seven hundred employees, and shifting focus toward artificial intelligence capabilities while flattening management. The company expects up to sixty million in restructuring costs. The broader backdrop remains challenging, with Bitcoin down sharply from its peak, subdued trading activity, and increased competition from lower-fee offerings like Morgan Stanley’s E*Trade. Looking ahead, Coinbase guided to softer-than-expected subscription and services revenue for the current quarter, though it highlighted “green shoots” in newer businesses like derivatives and prediction markets, the latter reaching a one hundred million dollar annualized revenue run rate. Regulatory developments remain important, particularly around stablecoin rewards tied to USD Coin, a meaningful revenue contributor. Coinbase also faced operational challenges this week, as trading services were disrupted by a significant outage that left customers unable to transact on its platform for almost seven hours on Friday. The company attributed the outage to overheating at an Amazon Web Services data center in Northern Virginia, which disrupted systems used by Coinbase and led to a suspension of all transactions for a period of time. The issue was first flagged at about nine a.m. in Singapore and activity resumed by around four p.m. CoreWeave, ticker C-R-W-V, an artificial intelligence data center operator, gave a disappointing forecast for the current quarter, sparking concerns about slowing growth at a time when the company is spending heavily to bolster its operations. Revenue for the second quarter is expected to range from two point four five billion to two point six billion dollars, below the two point seven billion average estimate of analysts. Despite this, CoreWeave reported that first-quarter sales more than doubled to two point zero eight billion, beating estimates. The company’s backlog hit almost one hundred billion dollars in the quarter, but its operating loss increased to one hundred forty-four million, compared with the one hundred thirty-three million projected by Wall Street. CoreWeave is expanding its customer base beyond traditional AI clients, moving into sectors like financial services, engineering, and retail, with management hinting at exciting announcements to come next quarter. Datadog, ticker D-D-O-G, saw its shares surge by the most in more than six years after the software developer raised its full-year outlook for sales and earnings, far exceeding Wall Street’s expectations. Revenue is now expected to total four point three billion to four point three four billion dollars, above analysts’ estimates of four point zero nine billion. The company also raised its adjusted earnings guidance to as much as two dollars and forty-four cents a share, up from two dollars and sixteen cents at the previous top of the range. Datadog, which provides a cloud-based platform for monitoring and analyzing network activity, has benefited from the widespread adoption of AI tools across industries. CEO Olivier Pomel said the company is “aggressively building with and for AI,” and has signed deals with two of the world’s biggest AI research teams to help with their training workflows. First-quarter revenue totaled one point zero one billion, up thirty-two percent from a year earlier, with adjusted earnings of sixty cents a share, both exceeding projections. Shares gained thirty-one percent to close at one hundred eighty-eight dollars and seventy-three cents, their highest settlement price since September twenty nineteen. Ginkgo Bioworks, ticker D-N-A, reported a sharp decline in core revenue in the first quarter as it continues restructuring and refocusing the business following the divestiture of its Biosecurity unit. Revenue from continuing operations fell forty-nine percent year over year to nineteen million dollars, or down thirty-seven percent excluding a one-time benefit in the prior year, driven by program rationalization. The company remained deeply unprofitable, posting a GAAP net loss of seventy-six million, though this was a modest improvement from the prior year. Adjusted EBITDA was negative forty-two million. Ginkgo ended the quarter with a relatively strong cash position of three hundred seventy-three million and reaffirmed its expected twenty twenty-six cash burn of one hundred twenty-five to one hundred fifty million. Strategically, the company is doubling down on its vision of “autonomous labs” as the future of biotech research and development, centered around its Nebula platform, which it claims is the world’s largest automated lab. Management emphasized that its Cloud Lab, Datapoints, and Solutions offerings both generate current revenue and help improve the platform over time, with early traction from partners like Amazon and ProQR. Overall, Ginkgo is repositioning itself as infrastructure for AI-driven biology, but near-term financials remain weak as it restructures and invests in this longer-term vision. Expedia, ticker E-X-P-E, posted quarterly revenue slightly ahead of estimates as it overcame travel disruptions related to the Middle East and said it expected healthy demand from this summer’s FIFA World Cup. First-quarter revenue was three point four three billion, up fifteen percent from a year earlier and above the consensus estimate of three point three five billion. Expedia forecast second-quarter revenue of four point one one billion to four point one nine billion, compared with Wall Street expectations of four point one two billion. CEO Ariane Gorin said the company had experienced a wave of cancellations in a volatile environment due to geopolitical disruptions in the Middle East and Mexico, but circumstances have improved and bookings have picked up again. Expedia left its full-year guidance unchanged out of prudence but plans to revisit it during its second-quarter earnings. Shares fell as much as nine percent in post-market trading after the results. The company also announced a new five billion dollar share repurchase authorization, after buying back seven hundred million of stock. Gorin said Expedia viewed its own stock as undervalued. Gilead Sciences, ticker G-I-L-D, said it now expects to book a loss in twenty twenty-six on eleven point five billion dollars in charges after deals to acquire a string of companies making experimental cancer and autoimmune disease drugs. The planned charges come as the company reported first-quarter earnings and revenue that beat analysts’ expectations on growing HIV drug sales, including a strong initial rollout of a new HIV prevention drug, Yeztugo. As a result of the deal-related charges, the company now expects an adjusted per-share loss of one dollar and five cents to sixty-five cents, down from a previous profit target of eight dollars and sixty-five cents a share at the midpoint. Alphabet, ticker G-O-O-G, faced a legal setback as a federal judge rejected its request to pause an order requiring the company to provide rivals with access to its underlying search data while it appeals a ruling that it illegally monopolized the online search market. US District Judge Amit Mehta denied Google’s request, saying that any data sharing is at least months away and the company is not at risk of immediate harm. The Justice Department and state attorneys general must notify the court forty-five days before any data sharing would start, giving Google a chance to renew its request to pause the ruling. Mehta had previously ruled that Google illegally monopolized the search market through contracts with Apple and other smartphone makers that required its search engine to be used as the default. Those deals, for which Google paid more than twenty billion dollars annually, blocked rivals from key distribution channels. The judge also required Google to share a one-time snapshot of its search data with some rivals to help them build up competing search engines or artificial intelligence products. In product news, Google on Thursday launched the Fitbit Air, a one hundred dollar screenless fitness band aimed at competing with Whoop and other makers of health and fitness wearables that forgo displays. The new device features a soft fabric band with a battery and sensor pack underneath and is sold with an upfront hardware cost and an optional ten dollar per month Google Health subscription. Whoop, by contrast, doesn’t charge for hardware but has an annual subscription fee starting at two hundred dollars. The Fitbit Air may appeal to users seeking a simpler alternative to the Apple Watch or a cheaper option than rival health trackers. Instructure, the company behind the widely used Canvas learning platform, suffered a cyberattack that caused disruptions at universities worldwide, affecting access to coursework, tests, and grades. While service has largely been restored, many institutions—including Yale, Stanford, and Columbia—reported that student data such as names, emails, IDs, and messages may have been compromised. Universities also warned of potential phishing attempts following the breach. The attack highlights ongoing cybersecurity vulnerabilities in higher education, which has been increasingly targeted in recent years. A hacking group known as ShinyHunters has claimed responsibility, though this has not been officially confirmed. Kalshi, the prediction markets platform, completed a funding round that values the company at twenty-two billion dollars, roughly doubling its previous valuation from five months ago. The New York-based firm raised one billion dollars in a Series-F round led by Coatue Management, with participation from Sequoia Capital, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley, and ARK Invest. Kalshi’s annualized revenue is now more than one point five billion dollars. Lyft, ticker L-Y-F-T, reported first-quarter profit that fell short of Wall Street’s estimates after heavy spending on international expansion and higher-end offerings like chauffeur services. Earnings were four cents a share, below the average analyst forecast of five point seven cents, due in part to integration costs from recent acquisitions. Gross bookings were four point nine five billion, slightly ahead of expectations. For the current quarter, Lyft expects gross bookings of five point three billion to five point four three billion, topping estimates. Adjusted EBITDA is expected to be in a range of one hundred sixty million to one hundred eighty million. High-value rides have grown thirty-five percent, according to CFO Erin Brewer. The company blamed a shortfall in rides on storms in the Northeastern US, which impacted more than three million rides. Total rides were two hundred thirty-six point nine million, below Wall Street estimates. Mattel, ticker M-A-T, is facing pressure from a major shareholder to explore a sale of the company. Southeastern Asset Management, which holds more than four percent of Mattel, said it believes the company is now positioned to consider strategic alternatives after stabilizing its business. Southeastern expressed concern that CEO Ynon Kreiz’s compensation package incentivizes waiting for the stock price to surpass thirty dollars before acting on a sale. The firm believes there are at least three groups of buyers that could better realize Mattel’s long-term value, including private equity, another toy company, or a large media company. Mattel said it maintains ongoing communication with shareholders and regularly reviews its strategy and opportunities to enhance long-term value. MercadoLibre, ticker M-E-L-I, saw its shares slip after profits missed estimates for the fourth quarter in a row, even as revenue grew at its fastest pace in nearly four years. Revenue rose forty-nine percent from a year earlier to eight point eight billion dollars, above analyst expectations, but net income was four hundred seventeen million, below the four hundred thirty-three million estimate. The company’s strategy of investing heavily in long-term opportunities, such as lowering free shipping thresholds in Brazil and expanding credit, has driven revenue growth at the expense of current profitability. MercadoLibre recorded twenty-six percent growth in new active buyers, adding roughly seventeen million first-time customers since the first quarter of last year. Its financial services arm added about twenty million monthly active users, growing twenty-nine percent. The company also started a pilot program for medicine sales in São Paulo and discontinued crypto initiatives like its Mercado Coin digital asset, focusing instead on its dollar-backed stablecoin, the “Meli Dólar.” Revenues from Mercado Pago grew fifty-one percent to four billion dollars, and the credit portfolio grew eighty-seven percent year-on-year to fourteen point six billion. Cloudflare, ticker N-E-T, plans to cut more than one thousand one hundred jobs globally as it accelerates its shift to an agentic AI-first operating model. CEO Matthew Prince said Cloudflare’s usage of AI has increased by more than six hundred percent in the last three months, with staff across functions running thousands of AI-driven workflows each day. The company expects to incur charges of one hundred forty to one hundred fifty million dollars from the layoffs, with most of the costs recognized in the second quarter. Cloudflare reported first-quarter results that beat expectations and raised its full-year outlook for adjusted profit and revenue. Nvidia, ticker N-V-D-A, is investing as much as two point one billion dollars in data center developer IREN as part of a broader partnership aimed at accelerating the construction of artificial intelligence infrastructure. IREN has agreed to issue Nvidia a five-year right to purchase up to thirty million shares at an exercise price of seventy dollars. The two companies are working together to roll out billions of dollars in computing capacity, with IREN announcing a three point four billion dollar AI cloud contract with Nvidia to deploy the chip company’s Blackwell processors. The partnership will focus on developing IREN’s two-gigawatt Sweetwater campus in Texas, with plans to eventually add up to five gigawatts of Nvidia infrastructure. For context, a single gigawatt can power roughly seven hundred fifty thousand homes. OpenAI and Broadcom are in talks to advance their joint AI chip venture, with Broadcom potentially financing the first phase, estimated at around eighteen billion dollars and requiring one point three gigawatts of data center capacity. However, Broadcom’s commitment is conditional on Microsoft agreeing to purchase about forty percent of the chips, making Microsoft an anchor customer for the project’s economics. Microsoft has not yet committed, and the draft agreement includes provisions requiring OpenAI to secure alternative buyers if Microsoft’s demand falls short. The companies are working toward a conditional agreement that would allow Broadcom to reserve manufacturing capacity at TSMC, but the project’s financing and scale ultimately hinge on customer commitments. Pacific Biosciences, ticker P-A-C-B, forecast full-year revenue of one hundred sixty-five to one hundred seventy-five million dollars, compared with a Bloomberg consensus estimate of one hundred seventy-three point six million. First-quarter revenue was thirty-seven point two million, flat from a year earlier and below the thirty-nine point eight million estimate. The company reported an adjusted loss per share of twelve cents, narrower than the fourteen-cent loss expected by analysts. Total operating expenses were twenty-one point two million, down sharply year-over-year. Peloton, ticker P-T-O-N, raised its full-year twenty twenty-six outlook, signaling that its turnaround efforts are gaining traction. The company now expects revenue of two point four two to two point four four billion dollars, slightly above prior guidance but still down about two percent year over year at the midpoint. In the fiscal third quarter, revenue grew one percent to six hundred thirty-one million—its first year-over-year growth since mid-twenty twenty-four and ahead of expectations—while adjusted EBITDA rose sharply, up forty-one percent to one hundred twenty-six million. The rebound is being driven by new product launches, including AI-enabled bikes and treadmills, as well as growth in its commercial segment, which increased fourteen percent ahead of new gym-focused equipment releases. Peloton is also expanding partnerships, notably with Spotify to distribute its fitness content, which management believes will help drive user growth more efficiently. Engagement trends are improving, with strong growth in newer categories like Pilates, and the company is investing further in personalized AI features, strength training, and products targeting GLP-1 users. Sweetgreen, ticker S-G, reported weak underlying operating performance in the first quarter, despite headline profitability driven by a one-time gain. Revenue declined two point nine percent year over year to one hundred sixty-one point five million, primarily due to a sharp twelve point eight percent drop in same-store sales, driven mostly by an eleven point two percent decline in traffic and weaker product mix, only partially offset by modest price increases. This demand softness pressured margins, with restaurant-level profit falling to sixteen point two million and margins compressing roughly eight hundred basis points to ten percent. Adjusted EBITDA turned negative at negative eight point one million, and operating losses widened to negative thirty-four point three million. Despite these challenges, Sweetgreen reported net income of one hundred twenty-five point eight million, entirely driven by a one hundred sixty point six million gain from the sale of Spyce. On the positive side, digital sales penetration increased to over sixty-seven percent, general and administrative expenses improved, and newer restaurant openings contributed incremental revenue. Management highlighted early signs of improvement in April tied to the launch of wraps, which have driven customer acquisition and repeat visits, though this recovery remains early. Looking ahead, the company expects same-store sales declines to moderate to between negative four and negative two percent for the full year, with restaurant-level margins recovering to roughly fourteen to fifteen percent and adjusted EBITDA returning to modestly positive levels. SoftBank has downsized plans for a ten billion dollar margin loan backed by its OpenAI stake after facing hesitation from some creditors. In discussions with potential lenders, the Japanese conglomerate and its bankers have mentioned targeting an amount as low as six billion dollars. The shift comes after some investors expressed concerns about the difficulty of reaching a valuation for an unlisted company like OpenAI. Sony announced it will buy back as much as five hundred billion yen, or about three point two billion dollars, of its shares after rising memory prices weighed on the entertainment group’s annual outlook. For the year through March twenty twenty-seven, Sony expects an operating profit of one point six trillion yen, roughly an eleven percent increase and in line with analyst estimates. Sony improved profitability in the fiscal year just concluded, with its music and smartphone image-sensor businesses making the biggest contributions to growth. Shares rose as much as seven point three percent, their biggest intraday jump in over two months, but gave up all those gains by the end of trading on Friday. Sony plans to cancel three percent of its shares on May twenty-ninth, helping take some of the pressure off its Tokyo-traded stock, which is down more than twenty percent this year due to surging component costs. Sony also announced a new joint venture with Taiwan Semiconductor Manufacturing Company, or TSMC, to develop next-generation image sensors and explore physical applications of artificial intelligence. The project will be based in Kumamoto, where TSMC has set up a fabrication plant, and Sony expects to receive support from the Japanese government. Block, ticker X-Y-Z, offered a solid outlook for profits and growth after a severe round of job cuts related to artificial intelligence that executives said were necessary to improve performance. The payments company expects annual gross profit of twelve point three billion dollars, higher than its previous forecast and above the twelve point one billion analysts had estimated. Block anticipates that growth to start showing up in second-quarter results, forecasting three billion in gross profit, up twenty percent from a year ago. The company beat analyst estimates across the board for the first quarter, reporting adjusted EBITDA of one billion, up twenty-four percent from the year-ago quarter, and higher than the nine hundred forty-seven million analysts had estimated. Adjusted earnings per share were eighty-five cents, compared with fifty-six cents in the first quarter of twenty twenty-five and higher than the sixty-seven cents analysts had expected. Net revenue was six point one billion, up four point nine percent year-over-year and compared with Wall Street’s estimate of five point nine billion. Now, let’s move to event-driven headlines. Brown-Forman shares rose up to three and a half percent following a Betaville report that Pernod Ricard may have revived takeover discussions and could be willing to offer around thirty-two dollars per share. Brown-Forman is reportedly working with Morgan Stanley on the talks. The news comes shortly after the companies ended earlier negotiations in April due to disagreements on terms, indicating a potential renewed push toward a deal. A legal dispute has emerged within the Del Vecchio family over a roughly ten billion euro restructuring of Delfin, the holding company that controls a major stake in EssilorLuxottica. Rocco Basilico, the son of Leonardo Del Vecchio’s widow, has filed a claim in a Luxembourg court arguing that the approval process for transferring a twenty-five percent stake in Delfin to Leonardo Maria Del Vecchio did not meet the required voting threshold. The transaction, approved last month, is intended to allow Leonardo Maria—one of Del Vecchio’s six children—to buy out two of his siblings and consolidate influence over the family’s assets. If Basilico’s challenge succeeds, it could delay or complicate the deal. Delfin is the largest shareholder in EssilorLuxottica, the world’s leading eyewear company and a key player in AI-enabled glasses through its partnership with Meta, and also holds significant stakes in Generali and Monte dei Paschi. Hawkeye 360 soared thirty-one percent after the provider of satellite-based signals intelligence for US government agencies raised four hundred sixteen million dollars in a US initial public offering priced at the top of a marketed range. Shares closed at thirty-four dollars each on Thursday in New York, versus the IPO price of twenty-six dollars. The offering of sixteen million shares was marketed in a range of twenty-four to twenty-six dollars. Founded in twenty fifteen, Hawkeye 360 makes, owns, and operates a constellation of more than thirty satellites that listen for radio signals from emitters such as radars, jammers, and satellite phones and uses its own signal-processing algorithms to process classified data for the US government. Revenue jumped to one hundred seventeen point seven million in twenty twenty-five, up from sixty-seven point six million a year earlier, while net income rose to forty-eight thousand from a net loss of thirty-one point two million. J.M. Smucker rose three percent on a report that the peanut butter and jelly company has hired Goldman Sachs for a strategic review of its portfolio. Smucker is dealing with prominent activist investor Elliott Investment Management, and a business review would likely bring Twinkie-maker Hostess to market, according to an Axios Pro report. Smucker purchased Hostess for five point six billion in twenty twenty-three. The news comes after Smucker announced in February that two new directors will be joining the company as part of an agreement with Elliott. Now, let’s take a quick look at some notable trends in the charts. Micron is now the same weight as ExxonMobil in the S&P 500, as semiconductor stocks continue to be the story of twenty twenty-six. This reflects the ongoing dominance of the semiconductor sector, driven by the artificial intelligence boom. In commodities, copper has resumed its move higher, signaling continued global economic strength. After a period of sideways movement, uranium stocks are also back near all-time highs, reflecting renewed investor interest in the sector. And in US equities, rail and trucking stocks are making all-time highs, underscoring the strength of the transportation sector and the broader economy. That wraps up today’s key markets and headlines. Thanks for listening.