- 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.
- 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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- Hawaiian Tie Up And California Growth Reshape Alaska Air Group Story
May 9, 2026
Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge.
Hawaiian Airlines is joining the oneworld alliance, with its loyalty program set to be integrated into Alaska Air Group's Atmos Rewards. Frequent flyers of both airlines are expected to gain broader earning and redemption options across the combined network. Alaska Airlines is adding and expanding routes in California, increasing connectivity within the state and to its wider network.
For investors watching Alaska Air Group (NYSE:ALK), these moves come as the stock trades around $40.59, with a return of 3.8% over the past week and 9.9% over the past month. Longer term returns have been weaker, including a 21.2% decline year to date and a 39.6% decline over five years. This context gives recent developments added importance for anyone tracking the company.
The oneworld and Atmos Rewards integration, combined with expanded California flying, reshapes how Alaska Air Group competes for high value, loyalty driven travelers. Readers may want to watch how passenger mix, loyalty engagement, and route performance trends evolve around these changes, as they could influence how the market views NYSE:ALK over time.
Stay updated on the most important news stories for Alaska Air Group by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Alaska Air Group.NYSE:ALK Earnings & Revenue Growth as at May 2026
2 things going right for Alaska Air Group that this headline doesn't cover.
For Alaska Air Group, Hawaiian Airlines joining oneworld and folding into Atmos Rewards tightens the focus on loyalty economics just as the company raises fresh capital. The new $500 million 6.5% senior notes due 2031 and the incremental $500 million term loan secured by Atmos Rewards assets point to meaningful investment behind the combined network and customer program. That sits alongside new California routes from Santa Rosa and Long Beach, which expand feeder traffic into the broader system and can help fill both Alaska and Hawaiian flights. Together, these moves signal an effort to deepen recurring loyalty revenue, broaden international reach versus carriers like Delta, United, and American, and improve asset use across the West Coast and Hawaii. At the same time, Alaska is coming off a $193 million quarterly loss with higher fuel and wage costs, so the extra leverage and integration work raise execution and balance sheet questions that investors may want to factor into their view.
How This Fits Into The Alaska Air Group Narrative
The integration of Hawaiian Airlines into oneworld and Atmos Rewards aligns with the narrative that loyalty and network connectivity can support margin expansion and more resilient earnings. Financing the deal and route growth with $1 billion of additional debt could challenge the narrative if higher interest costs and integration complexity pressure margins rather than supporting them. The use of Atmos Rewards assets as collateral and the focus on California routes are specific actions that the narrative does not fully spell out, and may change how investors think about the value and risk profile of the loyalty program.
Story Continues
Knowing what a company is worth starts with understanding its story. Check out one of the top narratives in the Simply Wall St Community for Alaska Air Group to help decide what it's worth to you.
The Risks and Rewards Investors Should Consider
⚠️ Interest payments are not well covered by earnings today, and adding $1 billion of new debt increases sensitivity to any earnings shortfall or integration delay. ⚠️ Alaska Air Group recently reported a $193 million quarterly loss with higher fuel and wage costs, so additional capacity and integration work could weigh on margins if unit revenues do not keep pace. 🎁 Earnings are forecast to grow 80.98% per year, which suggests that, if execution goes to plan, the larger network and loyalty platform could support a much stronger profit base. 🎁 The stock is described as trading at 81.3% below one estimate of fair value, so investors who are comfortable with the risks may see the integration of Hawaiian and the new routes as potential upside drivers if the thesis plays out.
What To Watch Going Forward
From here, focus on a few practical markers. First, watch updates on Hawaiian integration, including any commentary on oneworld and Atmos Rewards uptake, since that will indicate whether the combined program is resonating with higher value travelers. Second, track how the new California routes ramp, especially load factors and yields on Santa Rosa and Long Beach services into the wider network. Third, keep an eye on leverage, interest coverage, and cash flow after the $1 billion in new debt, given analysts already flag interest cover as a key risk. Finally, compare Alaska Air Group’s progress with peers like Delta, United, and American, which also lean heavily on alliances and loyalty for profit, to gauge whether this partnership-driven approach is helping the company close any competitive gaps.
To ensure you're always in the loop on how the latest news impacts the investment narrative for Alaska Air Group, head to the community page for Alaska Air Group to never miss an update on the top community narratives.
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 ALK.
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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- Yahoo Raises $1.6 Billion As 11% Bond Yield Grabs Investor Attention
May 8, 2026
This article first appeared on GuruFocus.
Yahoo Inc. raised $1.6 billion in fresh high-yield financing as the online media company moved to refinance debt connected to Apollo Global Management's (NYSE:APO) acquisition of the business. The deal included a $700 million term loan B priced at 6.5 percentage points over the US benchmark and 97 cents on the dollar, according to a person with direct knowledge of the matter. Yahoo also sold $900 million of junk bonds due in 2031 at an 11% yield, giving investors one of the highest-yielding corporate debt offerings of the year at a time when demand for risky credit has been picking up.
Warning! GuruFocus has detected 4 Warning Signs with APO. Is APO fairly valued? Test your thesis with our free DCF calculator.
The numbers show why the deal could draw attention from yield-hungry investors. US leveraged loans have priced this year at roughly 3 percentage points above the benchmark on average, while existing B rated bonds have hovered near 7.2%, according to data compiled by Bloomberg. Yahoo's new financing will repay loans raised in 2021 to help fund Apollo's $5 billion buyout of the business from Verizon Communications (NYSE:VZ), with that debt due next year. The refinancing also comes at a higher cost than the original debt package, which was priced at 5.5 percentage points over the benchmark and 98.5 cents on the dollar.
The bigger investor question is not just the coupon, but the credit story behind it. Moody's Ratings said in a May 5 note that artificial intelligence will lead significant changes in the digital media landscape, while also pointing to Yahoo's dependence on desktop traffic and competition from larger players in search advertising and email services. Yahoo shifted $200 million from loans to bonds during syndication as it worked to complete the financing. The transaction landed during a broader rush of high-yield issuance, with Alaska Air Group (NYSE:ALK), Venetian Resort Las Vegas and Harvest Midstream also raising debt as companies moved to capitalize on investor optimism that the US and Iran could reach an agreement to end the conflict in the Middle East.
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- Alaska Air Group, Inc. (ALK) is Attracting Investor Attention: Here is What You Should Know
May 7, 2026
Alaska Air Group (ALK) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this airline have returned +1.5%, compared to the Zacks S&P 500 composite's +11.4% change. During this period, the Zacks Transportation - Airline industry, which Alaska Air falls in, has gained 7.3%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate Revisions
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Alaska Air is expected to post a loss of $0.90 per share, indicating a change of -150.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -208% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of -$0.95 points to a change of -138.9% from the prior year. Over the last 30 days, this estimate has changed -159.6%.
For the next fiscal year, the consensus earnings estimate of $7.19 indicates a change of +856.1% from what Alaska Air is expected to report a year ago. Over the past month, the estimate has changed -7.7%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Alaska Air is rated Zacks Rank #3 (Hold).
Story Continues
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS12-month consensus EPS estimate for ALK
Projected Revenue Growth
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Alaska Air, the consensus sales estimate for the current quarter of $4.1 billion indicates a year-over-year change of +10.6%. For the current and next fiscal years, $15.84 billion and $16.84 billion estimates indicate +11.2% and +6.3% changes, respectively.
Last Reported Results and Surprise History
Alaska Air reported revenues of $3.3 billion in the last reported quarter, representing a year-over-year change of +5.2%. EPS of -$1.68 for the same period compares with -$0.77 a year ago.
Compared to the Zacks Consensus Estimate of $3.27 billion, the reported revenues represent a surprise of +0.99%. The EPS surprise was -4.35%.
Over the last four quarters, Alaska Air surpassed consensus EPS estimates two times. The company topped consensus revenue estimates three times over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Alaska Air is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Alaska Air. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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- California dreaming - Alaska Airlines expands route network from Santa Rosa and returns to Long Beach with connection to Seattle
May 7, 2026
Three new routes from Santa Rosa to Phoenix, Salt Lake City and Boise, Idaho will start service in November Service between Long Beach, CA and Seattle will return after a decade-long hiatus with two daily flights
SEATTLE, May 7, 2026 /PRNewswire/ -- Alaska Airlines continues to expand destination options for guests across California with the addition of four new nonstop routes from Santa Rosa and Long Beach. Tickets for each new route are available for purchase now at alaskaair.com.Alaska Airlines' newest routes
"Alaska is committed to California, and we're proud to offer guests across the state even more options for their next vacation or work trip," said Kirsten Amrine, vice president of revenue management and network planning at Alaska. "Whether you're in Santa Rosa looking for a winter escape to the snow or sun, or a SoCal traveler looking for a convenient alternative to the region's busiest airports, this expansion has you covered."
Wine country goes west
Alaska was the first carrier to bring commercial service to Charles M. Schulz-Sonoma County Airport (STS) nearly two decades ago and has remained the largest airline serving Santa Rosa. Salt Lake City and Boise, both currently unserved markets from the North Bay, will connect guests to the slopes just in time for ski season to kick off. Phoenix rounds out the route map with a popular destination that brings the current nonstop total from Santa Rosa to 12.
City Pair Start Date Season/End
Date Frequency Aircraft Santa Rosa-
Sonoma, CA –
Boise, ID Nov. 1, 2026 April 19, 2027 Up to daily E175 Santa Rosa-
Sonoma, CA –
Phoenix, AZ Nov. 1, 2026 April 21, 2027 Daily E175 Santa Rosa-
Sonoma, CA – Salt
Lake City, UT Nov. 1, 2026 April 21, 2027 Up to daily E175
For guests looking to explore all that northern California's wine country has to offer, Alaska's Wine Flies Free program is an essential travel companion. The program, which debuted in 2007, makes it easier for travelers to bring home their favorite bottles of wine from Santa Rosa. Atmos™ Rewards members can check an entire case – up to 12 bottles of wine – for free.
A long-awaited return to Long Beach
After a decade-long hiatus from serving Long Beach, Alaska will be back with twice daily flights to Seattle beginning in September. This year-round flight provides convenient access to all that southern California has to offer, whether guests are in search of beach time or a theme park. Hawaiian Airlines already connects Long Beach Municipal Airport (LGB) to Honolulu and Kahului, Maui.
City Pair Start Date Season/End Date Frequency Aircraft Seattle – Long
Beach, CA Sept. 8, 2026 Year-round 2x Daily 737
With the addition of the Long Beach-Seattle route, Alaska will be the only airline to fly between Seattle and all five of the major LA Basin airports and will continue to serve more California airports year-round than any other airline.
Story Continues
Staying connected
Alaska continues to lead the industry as the only airline in the world with its entire regional fleet equipped with Starlink Wi-Fi. That means each of the new routes out of Santa Rosa will offer seamless, gate-to-gate connectivity for streaming and browsing when guests sign into a new onboard Wi-Fi portal thanks to T-Mobile. Atmos Rewards membership is free and allows guests to enjoy complimentary onboard Wi-Fi while earning points toward future travel. Starlink Wi-Fi is coming to Alaska's mainline fleet, which will serve Long Beach, throughout 2026.
About Alaska, Hawaiian and Horizon Alaska Airlines, Hawaiian Airlines and Horizon Air are subsidiaries of Alaska Air Group, and McGee Air Services is a subsidiary of Alaska Airlines. We are a global airline with hubs in Seattle, Honolulu, Portland, Anchorage, Los Angeles, San Diego and San Francisco. We deliver remarkable care as we fly our guests to more than 140 destinations throughout North America, Latin America, Asia, the Pacific and Europe. Guests can book travel at alaskaair.com and hawaiianairlines.com. Alaska and Hawaiian are members of the oneworld alliance. Members of our Atmos Rewards loyalty program can earn and redeem points with oneworld airlines and our additional global partners that serve over 1,000 worldwide destinations. Learn more about what's happening at Alaska and Hawaiian at news.alaskaair.com. Alaska Air Group is traded on the New York Stock Exchange (NYSE) as "ALK."(PRNewsfoto/Alaska Airlines)Cision
View original content to download multimedia:https://www.prnewswire.com/news-releases/california-dreaming--alaska-airlines-expands-route-network-from-santa-rosa-and-returns-to-long-beach-with-connection-to-seattle-302764958.html
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- Alaska Air Group, Inc. (ALK) is Attracting Investor Attention: Here is What You Should Know
May 7, 2026 · zacks.com
Alaska Air (ALK) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
- California dreaming - Alaska Airlines expands route network from Santa Rosa and returns to Long Beach with connection to Seattle
May 7, 2026 · prnewswire.com
Three new routes from Santa Rosa to Phoenix, Salt Lake City and Boise, Idaho will start service in November Service between Long Beach, CA and Seattle will return after a decade-long hiatus with two daily flights SEATTLE, May 7, 2026 /PRNewswire/ -- Alaska Airlines continues to expand destination options for guests across California with the addition of four new nonstop routes from Santa Rosa and Long Beach. Tickets for each new route are available for purchase now at alaskaair.com.
