- Stocks Settle Higher on Strong Earnings
May 11, 2026
The S&P 500 Index ($SPX) (SPY) on Monday closed up +0.19%, the Dow Jones Industrial Average ($DOWI) (DIA) closed up +0.19%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.29%. June E-mini S&P futures (ESM26) rose +0.18%, and June E-mini Nasdaq futures (NQM26) rose +0.28%.
Stock indexes settled higher on Monday, with the S&P 500 and Nasdaq 10 posting new all-time highs amid strong corporate earnings results and resurgent optimism around artificial intelligence. Strength in chipmakers and AI-infrastructure stocks led the broader market higher on Monday. Gains in stocks were limited on Monday amid rising oil prices and bond yields after the US and Iran failed to reach terms to end the war in the Middle East. Global bond yields rose on concern that the continued standoff will keep energy prices elevated and could force the world’s central banks to tighten monetary policy. The 10-year T-note yield rose +5 bp to 4.41%. Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
In the latest developments in the Middle East, President Trump and Iran rejected each other's latest peace proposals to end the 10-week conflict. Iran offered to transfer some of its stockpile of highly enriched uranium to a third country, but rejected the idea of dismantling its nuclear facilities. Iran also demanded a lifting of the US naval blockade and sanctions relief, while maintaining a degree of control over traffic through the Strait of Hormuz. Despite the ceasefire in place since last month, a drone strike over the weekend set a cargo vessel ablaze off Qatar in the Persian Gulf. Also, the United Arab Emirates and Kuwait both said they intercepted hostile drones.
Monday’s US economic news was slightly weaker than expected after Apr existing home sales rose +0.2% m/m to 4.02 million, below expectations of 4.05 million.
Chinese trade news was better than expected, a positive factor for global growth. China Apr exports rose +14.1% y/y, stronger than expectations of +8.4% y/y. Apr imports rose +25.3% y/y, stronger than expectations of 20.0% y/y.
WTI crude oil prices (CLM26) rose more than 2% on Monday, as optimism that the US and Iran would reopen the Strait of Hormuz was dashed after President Trump on Sunday said that Iran's latest peace proposals were "totally unacceptable." The strait remains essentially closed, as about a fifth of the world’s oil and liquefied natural gas transits through the strait. Goldman Sachs estimates that the current disruption has drawn down nearly 500 million bbl from global crude stockpiles, with the drawdown potentially reaching 1 billion bbl by June.
The markets are discounting a 4% chance of a -25 bp FOMC rate cut at the next FOMC meeting on June 16-17.
Earnings reports thus far in this reporting season have been supportive of stocks. As of Monday, 83% of the 450 S&P 500 companies that reported Q1 earnings have beaten estimates. Q1 S&P 500 earnings are projected to climb +12% y/y, according to Bloomberg Intelligence. Stripping out the technology sector, Q1 earnings are projected to increase around +3%, the weakest in two years.
Overseas stock markets settled mixed on Monday. The Euro Stoxx 50 closed down -0.27%. China's Shanghai Composite rallied to a 10-year high and closed up +1.08%. Japan's Nikkei Stock Average fell from a record high and closed down -0.47%.
Interest Rates
June 10-year T-notes (ZNM6) on Monday closed down -11 ticks. The 10-year T-note yield rose +5.4 bp to 4.408%. T-notes were under pressure on Monday from a +2% jump in WTI crude oil prices, which boosted inflation expectations. T-notes fell to their lows on Monday afternoon on weak demand for the Treasury’s $58 billion auction of 3-year T-notes that had a bid-to-cover ratio of 2.54, well below the 10-auction average of 2.64.
European government bond yields moved higher on Monday. The 10-year German Bund yield rose +3.5 bp to 3.040%. The 10-year UK gilt yield rose +8.6 bp to 4.998%.
ECB Governing Council member Martin Kocher said, "If the situation around energy prices does not improve significantly, an interest rate hike will be unavoidable in the near future."
Swaps are discounting an 84% chance of a +25 bp ECB rate hike at its next policy meeting on June 11.
US Stock Movers
Chipmakers and AI-infrastructure stocks rose on Monday amid continued optimism over AI infrastructure build-outs. Qualcomm (QCOM) closed up more than +8% to lead gainers in the Nasdaq 100, and Western Digital (WDC) closed up by more than +7%. Also, Micron Technology (MU) and Seagate Technology Holdings Plc (STX) closed up more than +6%, and NXP Semiconductors NV (NXPI), Intel (INTC), and Texas Instruments (TXN) closed up more than +3%. In addition, Nvidia (NVDA), Applied Materials (AMAT), and Analog Devices (ADI) closed up more than +1%.
Mining stocks moved higher on Monday amid rallies in silver and copper prices. Hecla Mining (HL) closed up more than +11%, and Barrick Mining (B) closed up +9%. Also, Coeur Mining (CDE) closed up more than +6%, and Freeport McMoRan (FCX) closed up more than +4%. In addition, Newmont Corp (NEM) closed up more than +3%, and Anglogold Ashanti (AU) closed up more than +1%.
Consumer-exposed stocks retreated on Monday after Wells Fargo warned about weakening consumer demand. Kohl’s (KSS) closed down more than -10% and Dollar General (GD) closed down more than -8% to lead losers in the S&P 500. Also, Ollie’s Bargain Outlet Holdings (OLLI) closed down more than -8% and Kontoor Brands (KTB) closed down more than -7%. In addition, Target (TGT) and Celsius Holdings (CELH) closed down more than -6%.
Airline stocks and cruise line operators were under pressure on Monday amid a +2% increase in WTI crude oil prices, which boosts fuel costs and undermines the companies' profitability prospects. American Airlines Group (AAL), Alaska Air Group (ALK), and Royal Caribbean Cruises Ltd (RCL) closed down more than -4%. Also, Carnival (CCL) closed down more than -3%, and Norwegian Cruise Line Holdings (NCLH), United Airlines Holdings (UAL), Southwest Airlines (LUV), and Delta Air Lines (DAL) closed down more than -2%.
Beazer Homes USA Inc (BZH) closed up more than +34% on a report that said Dream Finders Homes is close to announcing a $704 million offer to acquire the company.
Babcock & Wilcox (BW) closed up more than +30% after reporting Q1 revenue grew 44% year-over-year, and that Q1 Ebitda nearly quadrupled.
Lumentum Holdings (LITE) closed up more than +16% to lead gainers in the S&P 500 after Nasdaq announced that the stock will replace CoStar Group in the Nasdaq 100 before the market opens on Monday, May 18.
Coherent Corp (COHR) closed up more than +13% on news that CEO Anderson will travel with President Trump to China this week.
Monday.com (MNDY) closed up more than +5% after reporting Q1 adjusted EPS of $1.15, better than the consensus of 93 cents, and raising its full-year revenue forecast to $1.466 billion to $1.474 billion from a previous forecast of $1.45 billion to $1.46 billion, better than the consensus of $1.46 billion.
Iren Ltd (IREN) closed down more than -10% after announcing that it intends to offer $2 billion of convertible senior notes due 2033 in a private offering.
Trade Desk (TTD) closed down more than -7% after HSBC downgraded the stock to reduce from hold with a price target of $20.
Wendy’s (WEN) closed down more than -7% after JPMorgan Chase downgraded the stock to underweight from neutral with a price target of $6.
Dell Technologies (DELL) closed down more than -5% after UBS downgraded the stock to neutral from buy.
Tyler Technologies (TYL) closed down more than -3% after announcing that it intends to offer $1 billion of convertible senior notes due 2031 in a private offering.
Mosaic (MOS) closed down nearly -2% after forecasting Q2 phosphate sales of 1.4 million to 1.7 million tons, weaker than the consensus of 1.78 million tons.
Earnings Reports(5/12/2026)
Aramark (ARMK), Karman Holdings Inc (KRMN), Millicom International Cellular SA (TIGO), On Holding AG (ONON), Qnity Electronics Inc (Q), Ralliant Corp (RAL), Under Armour Inc (UAA), Zebra Technologies Corp (ZBRA).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
- Stocks Supported by Strong Earnings and AI Optimism
May 11, 2026
The S&P 500 Index ($SPX) (SPY) today is up +0.25%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +0.05%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.17%. June E-mini S&P futures (ESM26) are up +0.29%, and June E-mini Nasdaq futures (NQM26) are up +0.19%.
Stock indexes are moving higher today, with the S&P 500 and Nasdaq 10 posting new all-time highs amid strong corporate earnings results and resurgent optimism around artificial intelligence. Gains in stocks are limited today amid rising oil prices and bond yields after the US and Iran failed to reach terms to end the war in the Middle East. Global bond yields rose on concern that the continued standoff will keep energy prices elevated and could force the world’s central banks to tighten monetary policy. The 10-year T-note yield is up +3 bp to 4.39%. Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
In the latest developments in the Middle East, President Trump and Iran rejected each other's latest peace proposals to end the 10-week conflict. Iran offered to transfer some of its stockpile of highly enriched uranium to a third country, but rejected the idea of dismantling its nuclear facilities. Iran also demanded a lifting of the US naval blockade and sanctions relief, while maintaining a degree of control over traffic through the Strait of Hormuz. Despite the ceasefire in place since last month, a drone strike over the weekend set a cargo vessel ablaze off Qatar in the Persian Gulf. Also, the United Arab Emirates and Kuwait both said they intercepted hostile drones.
Today’s US economic news was slightly weaker than expected after Apr existing home sales rose +0.2% m/m to 4.02 million, below expectations of 4.05 million.
Chinese trade news was better than expected, a positive factor for global growth. China Apr exports rose +14.1% y/y, stronger than expectations of +8.4% y/y. Apr imports rose +25.3% y/y, stronger than expectations of 20.0% y/y.
WTI crude oil prices (CLM26) are up by more than 2% today, as optimism that the US and Iran would reopen the Strait of Hormuz was dashed after President Trump on Sunday said that Iran's latest peace proposals were "totally unacceptable." The strait remains essentially closed, as about a fifth of the world’s oil and liquefied natural gas transits through the strait. Goldman Sachs estimates that the current disruption has drawn down nearly 500 million bbl from global crude stockpiles, with the drawdown potentially reaching 1 billion bbl by June.
The markets are discounting a 5% chance of a -25 bp FOMC rate cut at the next FOMC meeting on June 16-17.
Earnings reports thus far in this reporting season have been supportive of stocks. As of today, 83% of the 446 S&P 500 companies that reported Q1 earnings have beaten estimates. Q1 S&P 500 earnings are projected to climb +12% y/y, according to Bloomberg Intelligence. Stripping out the technology sector, Q1 earnings are projected to increase around +3%, the weakest in two years.
Overseas stock markets are mixed today. The Euro Stoxx 50 is down -0.55%. China's Shanghai Composite rallied to a 10-year high and closed up +1.08%. Japan's Nikkei Stock Average fell from a record high and closed down -0.47%.
Interest Rates
June 10-year T-notes (ZNM6) today are down -7 ticks. The 10-year T-note yield is up +3.8 bp to 4.392%. T-notes are under pressure today from a +2% jump in WTI crude oil prices, which is boosting inflation expectations. Also, supply pressures are weighing on T-notes as the Treasury will auction $125 billion of T-notes and T-bonds in this week’s quarterly refunding, beginning with today’s $58 billion auction of 3-year T-notes.
European government bond yields are moving higher today. The 10-year German Bund yield is up +3.7 bp to 3.042%. The 10-year UK gilt yield is up +9.1 bp to 5.003%.
ECB Governing Council member Martin Kocher said, "If the situation around energy prices does not improve significantly, an interest rate hike will be unavoidable in the near future."
Swaps are discounting an 85% chance of a +25 bp ECB rate hike at its next policy meeting on June 11.
US Stock Movers
Chipmakers and AI-infrastructure stocks are climbing today amid continued optimism over AI infrastructure build-outs. Qualcomm (QCOM) is up more than +8% to lead gainers in the Nasdaq 100, and Western Digital (WDC) is up by more than +6%. Also, Micron Technology (MU) and Seagate Technology Holdings Plc (STX) are up more than +5%, and Nvidia (NVDA) is up more than +3% to lead gainers in the Dow Jones Industrials. In addition, Applied Materials (AMAT) is up more than +2%, and Intel (INTC), KLA Corp (KLAC), Texas Instruments (TXN), and Lam Research (LRCX) are up more than +1%.
Mining stocks are moving higher today with rallies in gold, silver, and copper prices. Barrick Mining (B) and Hecla Mining (HL) are up more than +7%, and Coeur Mining (CDE) is up more than +4%. Also, Freeport McMoRan (FCX) and Newmont Corp (NEM) are up more than +3%, and Anglogold Ashanti (AU) is up more than +2%.
Airline stocks and cruise line operators are under pressure today amid a +2% increase in WTI crude oil prices, which boost fuel costs and undermine the companies' profitability prospects. Alaska Air Group (ALK), Carnival (CCL), and Royal Caribbean Cruises Ltd (RCL) are down more than -4%, and American Airlines Group (AAL) and Norwegian Cruise Line Holdings (NCLH) are down more than -3%. Also, United Airlines Holdings (UAL), Southwest Airlines (LUV), and Delta Air Lines (DAL) are down more than -2%.
Beazer Homes USA Inc (BZH) is up more than +30% on a report that said Dream Finders Homes is close to announcing a $704 million offer to acquire the company.
Babcock & Wilcox (BW) is up more than +22% after reporting Q1 revenue grew 44% year-over-year, and that Q1 Ebitda nearly quadrupled.
Lumentum Holdings (LITE) is up more than +17% to lead gainers in the S&P 500 after Nasdaq announced that the stock will replace CoStar Group in the Nasdaq 100 before the market opens on Monday, May 18.
Coherent Corp (COHR) is up more than +13% on news that CEO Anderson will travel with President Trump to China this week.
Monday.com (MNDY) is up more than +6% after reporting Q1 adjusted EPS of $1.15, better than the consensus of 93 cents, and raising its full-year revenue forecast to $1.466 billion to $1.474 billion from a previous forecast of $1.45 billion to $1.46 billion, better than the consensus of $1.46 billion.
Moderna (MRNA) is up more than +5% after announcing it’s researching vaccines to protect against hantaviruses.
Trade Desk (TTD) is down more than -7% to lead losers in the S&P 500 after HSBC downgraded the stock to reduce from hold with a price target of $20.
Iren Ltd (IREN) is down more than -6% after announcing that it intends to offer $2 billion of convertible senior notes due 2033 in a private offering.
Wendy’s (WEN) is down more than -6% after JPMorgan Chase downgraded the stock to underweight from neutral with a price target of $6.
Dell Technologies (DELL) is down more than -5% after UBS downgraded the stock to neutral from buy.
Tyler Technologies (TYL) is down more than -4% after announcing that it intends to offer $1 billion of convertible senior notes due 2031 in a private offering.
Mosaic (MOS) is down more than -3% after forecasting Q2 phosphate sales of 1.4 million to 1.7 million tons, weaker than the consensus of 1.78 million tons.
Earnings Reports(5/11/2026)
AECOM (ACM), Amentum Holdings Inc (AMTM), AST SpaceMobile Inc (ASTS), Certara Inc (CERT), Circle Internet Group Inc (CRCL), Constellation Energy Corp (CEG), Figure Technology Solutions Inc (FIGR), Fox Corp (FOXA), Halozyme Therapeutics Inc (HALO), Mosaic Co/The (MOS), Ovintiv Inc (OVV), Simon Property Group Inc (SPG), STERIS PLC (STE), ZoomInfo Technologies Inc (GTM). On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
Stocks Set for Muted Open as Oil Rises After Trump Rejects Iran’s Response to Peace Proposal, U.S. Inflation Data AwaitedCPI, Trump-Xi Meeting and Other Can't Miss Items this WeekS&P Futures Climb With All Eyes on Key U.S. Jobs ReportStocks Steady Before the Open as Investors Await U.S.-Iran Updates; Earnings and Economic Data on Tap
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
- Strong Earnings and AI Optimism Push the S&P 500 and Nasdaq 100 to Record Highs
May 11, 2026
The S&P 500 Index ($SPX) (SPY) today is up +0.17%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +0.10%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.06%. June E-mini S&P futures (ESM26) are up +0.19%, and June E-mini Nasdaq futures (NQM26) are up +0.05%.
Stock indexes are moving higher today, with the S&P 500 and Nasdaq 10 posting new all-time highs amid strong corporate earnings results and resurgent optimism around artificial intelligence. Gains in stocks are limited today amid rising oil prices and bond yields after the US and Iran failed to reach terms to end the war in the Middle East. Global bond yields rose on concern that the continued standoff will keep energy prices elevated and could force the world’s central banks to tighten monetary policy. The 10-year T-note yield is up +3 bp to 4.39%. Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
In the latest developments in the Middle East, President Trump and Iran rejected each other's latest peace proposals to end the 10-week conflict. Iran offered to transfer some of its stockpile of highly enriched uranium to a third country but rejected the idea of dismantling its nuclear facilities. Iran also demanded a lifting of the US naval blockade and sanctions relief, while maintaining a degree of control over traffic through the Strait of Hormuz. Despite the ceasefire in place since last month, a drone strike over the weekend set a cargo vessel ablaze off Qatar in the Persian Gulf. Also, the United Arab Emirates and Kuwait both said they intercepted hostile drones.
Chinese trade news was better than expected, a positive factor for global growth. China Apr exports rose +14.1% y/y, stronger than expectations of +8.4% y/y. Apr imports rose +25.3% y/y, stronger than expectations of 20.0% y/y.
WTI crude oil prices (CLM26) are up by more than 2% today, as optimism that the US and Iran would reopen the Strait of Hormuz was dashed after President Trump said Iran's latest peace proposals were "totally unacceptable." The strait remains essentially closed, as about a fifth of the world’s oil and liquefied natural gas transits through the strait. Goldman Sachs estimates that the current disruption has drawn down nearly 500 million bbl from global crude stockpiles, with the drawdown potentially reaching 1 billion bbl by June.
The markets are discounting a 5% chance of a -25 bp FOMC rate cut at the next FOMC meeting on June 16-17.
Earnings reports thus far in this reporting season have been supportive of stocks. As of today, 83% of the 446 S&P 500 companies that reported Q1 earnings have beaten estimates. Q1 S&P 500 earnings are projected to climb +12% y/y, according to Bloomberg Intelligence. Stripping out the technology sector, Q1 earnings are projected to increase around +3%, the weakest in two years.
Overseas stock markets are mixed today. The Euro Stoxx 50 is down -0.28%. China's Shanghai Composite rallied to a 10-year high and closed up +1.08%. Japan's Nikkei Stock Average fell from a record high and closed down -0.47%.
Interest Rates
June 10-year T-notes (ZNM6) today are down -5 ticks. The 10-year T-note yield is up +2.7 bp to 4.381%. T-notes are under pressure today from a +2% jump in WTI crude oil prices, which is boosting inflation expectations. Also, supply pressures are weighing on T-notes as the Treasury will auction $125 billion of T-notes and T-bonds in this week’s quarterly refunding, beginning with today’s $58 billion auction of 3-year T-notes.
European government bond yields are moving higher today. The 10-year German Bund yield is up +2.5 bp to 3.030%. The 10-year UK gilt yield is up +7.4 bp to 4.986%.
ECB Governing Council member Martin Kocher said, "If the situation around energy prices does not improve significantly, an interest rate hike will be unavoidable in the near future."
Swaps are discounting an 84% chance of a +25 bp ECB rate hike at its next policy meeting on June 11.
US Stock Movers
Chipmakers and AI-infrastructure stocks are climbing today amid continued optimism over AI infrastructure build-outs. Qualcomm (QCOM) is up more than +6% to lead gainers in the Nasdaq 100, and Micron Technology (MU) is up more than +5%. Also, Western Digital (WDC) is up by more than +4%, and Intel (INTC) and Seagate Technology Holdings Plc (STX) are up more than +3%. In addition, Texas Instruments (TXN) is up by more than +2%, and Nvidia (NVDA), Applied Materials (AMAT), and Lam Research (LRCX) are up more than +1%.
Mining stocks are moving higher today with rallies in gold, silver, and copper prices. Barrick Mining (B) is up more than +8%, and Coeur Mining (CDE) and Hecla Mining (HL) are up more than +7%. Also, Freeport McMoRan (FCX) is up more than +4%, and Anglogold Ashanti (AU), Southern Copper (SCCO), and Newmont Corp (NEM) are up more than +3%.
Airline stocks and cruise line operators are under pressure today from a +2% increase in WTI crude oil prices, which boosts fuel costs and undercuts the companies' profitability prospects. Carnival (CCL) and Royal Caribbean Cruises Ltd (RCL) are down more than -4%, and Alaska Air Group (ALK) is down more than -3%. Also, American Airlines Group (AAL) and Norwegian Cruise Line Holdings (NCLH) are down more than -2%. In addition, United Airlines Holdings (UAL), Southwest Airlines (LUV), and Delta Air Lines (DAL) are down more than -1%.
Beazer Homes USA Inc (BZH) is up more than +29% on a report that said Dream Finders Homes is close to announcing a $704 million offer to acquire the company.
Babcock & Wilcox (BW) is up more than +18% after reporting Q1 revenue grew 44% year-over-year, and that Q1 Ebitda nearly quadrupled.
Monday.com (MNDY) is up more than +11% after reporting Q1 adjusted EP of $1.15, better than the consensus of 93 cents, and raising its full-year revenue forecast to $1.466 billion to $1.474 billion from a previous forecast of $1.45 billion to $1.46 billion, better than the consensus of $1.46 billion.
Moderna (MRNA) is up more than +7% after announcing it’s researching vaccines to protect against hantaviruses.
Lumentum Holdings (LITE) is up more than +6% after Nasdaq announced that the stock will replace CoStar Group in the Nasdaq 100 before the market opens on Monday, May 18.
Trade Desk (TTD) is down more than -9% to lead losers in the S&P 500 after HSBC downgraded the stock to reduce from hold with a price target of $20.
Iren Ltd (IREN) is down more than -7% after announcing that it intends to offer $2 billion of convertible senior notes due 2033 in a private offering.
Dell Technologies (DELL) is down more than -5% after UBS downgraded the stock to neutral from buy.
Wendy’s (WEN) is down more than -3% after JPMorgan Chase downgraded the stock to underweight from neutral with a price target of $6.
Tyler Technologies (TYL) is down more than -3% after announcing that it intends to offer $1 billion of convertible senior notes due 2031 in a private offering.
Mosaic (MOS) is down more than -2% after forecasting Q2 phosphate sales of 1.4 million to 1.7 million tons, weaker than the consensus of 1.78 million tons.
Earnings Reports(5/11/2026)
AECOM (ACM), Amentum Holdings Inc (AMTM), AST SpaceMobile Inc (ASTS), Certara Inc (CERT), Circle Internet Group Inc (CRCL), Constellation Energy Corp (CEG), Figure Technology Solutions Inc (FIGR), Fox Corp (FOXA), Halozyme Therapeutics Inc (HALO), Mosaic Co/The (MOS), Ovintiv Inc (OVV), Simon Property Group Inc (SPG), STERIS PLC (STE), ZoomInfo Technologies Inc (GTM).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
- U.S. Airline Stocks Fall as Oil Prices Jump Following Trump’s Rejection of Iran Proposal
May 11, 2026
airport planes on runway ©Pixabay
U.S. airline shares moved lower in premarket trading on Monday after oil prices surged in response to President Donald Trump dismissing Iran’s latest reply to a U.S.-backed peace proposal as “totally unacceptable,” raising fears that disruptions to global crude supplies could persist.
Brent crude futures climbed 2.7% to $104.02 per barrel by 05:14 ET (09:14 GMT), while U.S. West Texas Intermediate crude gained 2.3% to $97.55 a barrel. The Strait of Hormuz remained largely shut, continuing to tighten global energy supplies.
Against that backdrop, airline stocks came under pressure as investors assessed the impact of higher fuel costs on the sector. Shares in Southwest Airlines (NYSE:LUV) and United Airlines (NASDAQ:UAL) each fell around 1% in premarket trading, while Delta Air Lines (NYSE:DAL) and American Airlines slipped roughly 0.8%.
The rise in crude prices erased a large portion of last week’s declines, when both oil benchmarks had dropped approximately 6% amid optimism that the 10-week conflict might soon ease and that shipping traffic through the Strait of Hormuz could resume.
Those expectations weakened after Iran unveiled its counterproposal on Sunday, which reportedly extended far beyond the limited ceasefire framework originally proposed by Washington. According to Iranian state media, Tehran called for a broader end to hostilities across the region, including in Lebanon, where Israel — a U.S. ally — remains engaged in conflict with the Iran-backed Hezbollah group.
Iran also reportedly demanded compensation for war-related damage, the removal of the U.S. naval blockade, guarantees against future military strikes, sanctions relief, and the lifting of restrictions on Iranian oil exports. Iranian officials additionally reaffirmed Tehran’s sovereignty over the Strait of Hormuz.
Trump quickly rejected the proposal, writing on Truth Social: “I don’t like it — TOTALLY UNACCEPTABLE.”
The U.S. administration had initially pushed for a temporary halt to the fighting before entering negotiations on more complex issues, particularly Iran’s nuclear programme.
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- Mark Cuban ‘lived like a student’ after making his first $2 million. Here’s what he did and how you can learn from it
May 10, 2026
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While Mark Cuban still works today as a 67-year-old and has no plans to retire — once telling CNBC, “I’ll go until I drop” — the former Shark Tank star didn’t always believe in skipping retirement (1).
In fact, when he was young, he was dedicated to the FIRE (Financial Independence, Retire Early) movement.
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“I read this book, it was called How to Retire at 35. And the whole foundation of this book was: save your money, live like a student,” he said on a podcast, “And that was my mission (2).”
Paul Terhorst's 1988 book, Cashing in on the American Dream: How to Retire at 35, changed his perspective on life.
Two years after reading it, he sold his company, MicroSolutions, walking away with $2 million, which he quickly invested and retired on at 30.
“I literally remember calling up my broker, and I said, ‘I want you to invest for me like a 60-year-old, cause I want to live off this for a long time,’” he continued.
At the time, American Airlines offered a (since discontinued) lifetime pass, which he bought, as his goal was to “live like a student, just have fun.”
“I bought this lifetime pass on American Airlines so I could go to any city anywhere, party like a rockstar,” Cuban said. “Literally, I would tell people my goal is to get drunk with as many different people as I could.”
And for five years, he did just that — but he eventually found out retiring so young didn’t suit his competitive nature. Soon enough, he was overseeing the audio streaming company Broadcast.com, which Yahoo eventually acquired in 1999 for $5.7 billion.
If you’re hoping to retire many decades ahead of schedule, you might not have the same $2 million windfall as Cuban, but the major steps he followed back in the late 80s can still work today.
How living like a student can help you retire early
The basic rules of FIRE require serious saving and investing early on, and the sooner you plan to retire, the more intense those rules can be.
While Cuban talked about living “like a student” in retirement, in that he wanted to party every day, he also mentioned that the premise of the book was “save your money” and live like a student — financially — meaning even when your career gives you enough to say goodbye to ramen noodles every night, you don’t upgrade your dinner, as that extra cash can allow for enough invested early on to accelerate retirement.
Story Continues
The more you save and invest, the faster your investments meet your FIRE number. For Mark, that was $2 million, but many advocates of FIRE do it on much less.
Read More: Robert Kiyosaki warned of a 'Greater Depression' — with millions of Americans going poor. Was he right?
Start Investing now
If you’re new to investing and still working within the limited confines of a student budget — but want to begin saving for retirement — platforms like Acorns can help.
Acorns makes investing early easy for even the novice investor by turning extra change from your purchases into investments.
For example, if you buy a coffee for $5.30, Acorns will round up the price to $6.00 and invest the 70-cent difference. Throughout the year, these coins can snowball into a sizable investment, with zero work on your end.
Sign up today, and you can get a $20 bonus investment when you set up a recurring monthly deposit.
Build a better budget
And if you really want to understand your spending so you can see where cuts can be made, you need a budget. But for many, budgeting in a spreadsheet can feel like a tediously boring task that never ends, making it hard to stick with it.
A quick daily check-in of your accounts can show you exactly where your money is going.
An app like Rocket Money can easily flag recurring subscriptions, upcoming bills and unusual charges by pulling in transactions from all your linked accounts.
This can help you cut unnecessary costs, and then you can manually redirect savings straight into your retirement fund. No spreadsheets, no guesswork, no stress. Small habits like this can make a big difference over time.
Rocket Money’s intuitive app offers a variety of free and premium tools. Free features include subscription tracking, bill reminders and budgeting basics, while premium features — like automated savings, net worth tracking, customizable dashboards and more — make it easier to stay on top of your retirement contributions and overall financial goals.
Since every penny counts, it’s vital to ensure you’re not overpaying for things like car insurance, as unfortunately, many companies raise rates regularly and without warning. Shopping around can help.
By using OfficialCarInsurance.com, you can avoid overpaying by comparing quotes from multiple insurers like Progressive, Allstate and GEICO. You could even find rates as low as $29 per month, depending on your location and needs.
Keep in mind that, typically, you don’t need to wait until your term is up to change insurance providers. Just keep an eye out for any early-cancellation fees and weigh them against your potential savings.
Develop an emergency fund
Of course, if you’re considering pursuing FIRE, you’ll also want a high-yield savings account working for you. While you’ll want to invest as much as possible as soon as possible, you also need an emergency fund that remains separate from your investments.
But leaving any significant amount of cash sitting around in a no-interest checking account means it is losing money to inflation.
A high-yield account like a Wealthfront Cash Account can be a great place to grow your uninvested cash, offering both competitive interest rates and easy access to your money when you need it.
A Wealthfront Cash Account currently offers a base APY of 3.30% through program banks, and new clients can get an extra 0.75% boost during their first three months on up to $150,000 for a total variable APY of 4.05%.
That’s ten times the national deposit savings rate, according to the FDIC’s March report.
Additionally, Wealthfront is offering new clients who enable direct deposit ($1,000/mo minimum) to their Cash Account and open and fund a new investment account an additional 0.25% APY increase with no expiration date or balance limit, meaning your APY could be as high as 4.30%.
With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, you get access to up to $8M FDIC Insurance eligibility through program banks.
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- Farewell, Ultra-Cheap Flights. What Spirit’s Demise Means for You—and Airline Stocks.
May 10, 2026
Picture an excessively mobile middle-class family that does almost nothing but drive, traveling from New York City to Los Angeles and back again each week. Spirit Airlines recently succumbed. At the same time, the strongest airlines—including Delta Air Lines United Airlines Holdings and some of the rest now doing their best impressions of these two—could benefit from present turmoil and generate healthy stock returns for years.
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- With Spirit gone, what could this mean for passenger throughput numbers?
May 10, 2026
Investing.com -- Transportation Security Administration (TSA) screening data for U.S. airlines showed a marginal improvement last week, although year-over-year growth remains in negative territory.
According to a report from the Bernstein Societe Generale Group released recently, the aviation sector continues to navigate a challenging demand environment characterized by elevated ticket prices and strategic capacity cuts.
The current market conditions are largely attributed to airline efforts to offset significant increases in fuel costs stemming from the ongoing conflict in Iran.
The data reveals that all major domestic carriers saw available seat mile (ASM)-weighted TSA screenings decline over the last seven days compared to the same period last year.
Southwest Airlines (LUV) and Alaska Air Group (ALK) recorded the most significant drops, with screenings falling 4.6% and 6.3%, respectively.
Other major players, including Delta Air Lines (DAL) and United Airlines (UAL), saw declines hovering around the 2% mark.
American Airlines (AAL) outperformed its peers slightly with a more modest 1.5% year-over-year decrease, a trend Bernstein notes is likely supported by easier comparisons following specific operational challenges the airline faced in 2025.
Current scheduling data indicates that airlines are responding to the softer demand trends by adjusting their forward-looking capacity.
While domestic capacity for the second quarter of 2026 is currently scheduled to grow by 3.6%, recent revisions show that carriers have begun trimming seats for the upcoming months.
Total industry capacity for May was reduced by 0.3% over the last week, while June schedules saw a 0.5% reduction.
The adjustments come as the industry monitors the potential impact of Spirit Airlines’ planned exit from several markets, which is expected to redistribute passenger volumes across the remaining low-cost and legacy carriers.
Despite the slight weekly uptick in passenger volume, the broader trend suggests that consumer sensitivity to high fares, driven by the war-related fuel price spike, remains a primary headwind for the industry as it enters the peak summer travel season.
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- ALPA Moves To Cut Dues As American Pilots Mull Vote On Joining ALPA
May 8, 2026 · forbes.com
The Air Line Pilots Association board on Friday approved a resolution to reduce dues, even as the board of the union representing American Airlines pilots seemed to move towards a vote on whether American pilots should join ALPA.
- Is American Airlines Group (AAL) Price Recovery Creating An Opportunity For Investors?
May 8, 2026
Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE.
If you are wondering whether American Airlines Group is priced fairly right now, or if the stock might be offering value that the market is overlooking, this breakdown will help you frame that question clearly. The stock last closed at US$13.18, with returns of 12.6% over 7 days, 21.9% over 30 days, 19.5% over 1 year, but a 14.9% decline year to date that longer term holders will be very aware of. Recent coverage around American Airlines Group has focused on its position in the US airline sector and how investors are weighing cyclical sensitivity against balance sheet considerations. Along with shifting sentiment toward travel stocks more broadly, this context helps explain why the share price has been moving sharply over shorter periods. American Airlines Group currently has a valuation score of 2 out of 6. The sections that follow will examine what different valuation methods indicate about that score, and then conclude with a broader way of thinking about what valuation really means for this stock.
American Airlines Group scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.
Approach 1: American Airlines Group Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow model takes projected future cash flows, discounts them back to today using a required return, and sums them to estimate what the stock might be worth right now.
For American Airlines Group, the model uses a 2 Stage Free Cash Flow to Equity approach based on cash flow projections. The latest twelve month free cash flow is about $1.66b. Analyst estimates run out in the second half of this decade, so Simply Wall St extends those forecasts, with projected free cash flow for 2029 of $1.41b and a series of projected figures through to 2035, all expressed in dollars and discounted back to today.
Putting these discounted cash flows together gives an estimated intrinsic value of about $20.68 per share using the DCF model. Compared with the recent share price of $13.18, this implies the stock is 36.3% undervalued on these assumptions.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests American Airlines Group is undervalued by 36.3%. Track this in your watchlist or portfolio, or discover 51 more high quality undervalued stocks.AAL Discounted Cash Flow as at May 2026
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for American Airlines Group.
Story Continues
Approach 2: American Airlines Group Price vs Earnings
For a profitable company, the P/E ratio is a useful way to see how much you are paying for each dollar of earnings. It reflects what the market is willing to pay, given expectations about future earnings and the risks around those earnings.
Higher expected growth and lower perceived risk tend to support a higher P/E ratio, while slower expected growth or higher risk usually lead to a lower, more conservative multiple. With American Airlines Group, the current P/E is 43.15x. This sits well above the Airlines industry average P/E of 8.74x and also above the peer average of 25.58x.
Simply Wall St’s Fair Ratio for American Airlines Group is 38.20x. This is a proprietary estimate of what the P/E might be given factors such as earnings growth, profit margins, industry, market cap and company specific risks. That makes it more tailored than a simple comparison with industry averages or peers, which may not share the same risk and growth profile. Comparing the Fair Ratio of 38.20x with the actual P/E of 43.15x suggests that, on this metric alone, the stock is trading at a richer level than the model implies.
Result: OVERVALUEDNasdaqGS:AAL P/E Ratio as at May 2026
P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 19 top founder-led companies.
Upgrade Your Decision Making: Choose your American Airlines Group Narrative
Earlier it was mentioned that there is an even better way to understand valuation. Narratives take the story you believe about American Airlines Group, link it to explicit forecasts for revenue, earnings and margins, turn that into a fair value, and then compare it with the current price in an easy to use tool on Simply Wall St's Community page. Different investors currently range from a cautious view with a fair value around US$10.00, through a more neutral stance near US$14.94, up to a far more optimistic outlook at about US$75.83. All of these update automatically as new news or earnings are added, so you can see in one place how your own view lines up before deciding whether the gap between price and fair value looks attractive or not to you.
For American Airlines Group, it may be useful to consider previews of two leading American Airlines Group narratives side by side.
On one side is a more optimistic, analyst-led view that leans on demand resilience, loyalty economics and aircraft efficiency. On the other is a far more cautious stance that focuses on the balance sheet and sensitivity to any hit to demand. Reviewing them together may help you consider which story is closer to your own view.
🐂 American Airlines Group Bull Case
Fair value in this narrative: US$14.94
Gap between fair value and current price: about 11.8% below this fair value based on the last close of US$13.18
Assumed annual revenue growth: 6.94%
Sees domestic demand, premium seating and loyalty upgrades as supporting revenue, margins and cash generation over time. Emphasizes AAdvantage growth, the long term Citi card deal and more efficient aircraft as supports for earnings stability and unit cost improvement. Acknowledges heavy debt, higher labor costs and operational risks, but judges them as manageable within the analyst fair value of US$14.94.
🐻 American Airlines Group Bear Case
Fair value in this narrative: US$10.61
Gap between current price and this fair value: about 24.2% above this fair value based on the last close of US$13.18
Assumed annual revenue growth: 2.5%
Focuses on the weak balance sheet, including high debt and negative equity, as the core concern for long term investors. Highlights sensitivity to any demand shock, with competition and pressure on margins seen as key ongoing risks. Views American Airlines Group as less attractive than other legacy carriers unless economic conditions are very favorable.
Across the Community, three narratives sit on the undervalued side of the ledger and two on the overvalued side, with five in total. That split reflects the debate seen in recent research and in the share price itself. The Community tools can be a way to line up your own assumptions on growth, risk and fair value before making any decision about the stock.
To see how these narratives evolve as new data comes through, and to track how your own view compares, See what the community is saying about American Airlines Group.
Do you think there's more to the story for American Airlines Group? Head over to our Community to see what others are saying!NasdaqGS:AAL 1-Year Stock Price Chart
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include AAL.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- You’re Going to Miss Spirit Airlines. Why Cheap Flights Are Going Extinct.
May 8, 2026
Picture an excessively mobile middle-class family that does almost nothing but drive, traveling from New York City to Los Angeles and back again each week. Spirit Airlines recently succumbed. At the same time, the strongest airlines—including Delta Air Lines United Airlines Holdings and some of the rest now doing their best impressions of these two—could benefit from present turmoil and generate healthy stock returns for years.
Continue Reading
