- 5 Revealing Analyst Questions From CNA Financial’s Q1 Earnings Call
May 13, 2026
CNA Financial’s first quarter was marked by a cautious tone from management as the company contended with ongoing headwinds in its property and casualty (P&C) portfolio. CEO Douglas Worman attributed the quarter’s underperformance to “prudent actions” taken to strengthen reserves in long-tailed lines like excess casualty and professional errors and omissions (E&O), as well as pressure from catastrophe events. Management flagged that earned rate increases continue to trail loss cost trends, which has put pressure on underlying loss ratios and required targeted underwriting actions. Worman emphasized, “We believe this conservative approach is appropriate, and we remain focused on sustainable performance.”
Is now the time to buy CNA? Find out in our full research report (it’s free).
CNA Financial (CNA) Q1 CY2026 Highlights:
Revenue: $3.70 billion vs analyst estimates of $3.80 billion (1.6% year-on-year growth, 2.8% miss) Adjusted EPS: $0.83 vs analyst expectations of $1.24 (33.1% miss) Adjusted Operating Income: $285 million (7.7% margin, 20.4% year-on-year decline) Market Capitalization: $11.78 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From CNA Financial’s Q1 Earnings Call
Jeff Schmitt (William Blair): asked about the outlook for loss cost trends and reserve adequacy. CEO Douglas Worman emphasized a conservative stance and ongoing monitoring, saying further adjustments could be made if adverse signals emerge. Paul Newsome (Piper Sandler): inquired about the competitive dynamics in national accounts property. Worman explained the company’s strategy to reduce exposure in undisciplined markets to protect profitability. Elyse Greenspan (Wells Fargo): questioned the pace and impact of AI initiatives. CFO Scott Lindquist described current benefits in claims processing and underwriting, noting that broader impacts would be realized over time. Greg Peters (Raymond James): asked whether catastrophe losses are expected to be higher than historical averages going forward. Worman responded that catastrophe planning is based on long-term trends and that the company sees no immediate need to change assumptions. Meyer Shields (Keefe, Bruyette & Woods): sought clarification on premium growth outlook by segment. Worman stated growth will remain targeted, with expansion in middle market and workers’ compensation offset by reductions in more competitive areas.
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Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) the effectiveness of CNA’s underwriting actions in moderating loss ratios, (2) signs of stabilization or improvement in reserve development for long-tail lines like excess casualty and E&O, and (3) measurable cost savings or process improvements from AI and technology initiatives. Trends in catastrophe exposure and investment income volatility will remain key variables.
CNA Financial currently trades at $43.55, down from $48.04 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free for active Edge members).
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- Wells Fargo, Bank of America in losers; IREN, Hut 8, Circle Internet among gainers: week's financials wrap
May 9, 2026
[Business Signage]
Bruce Bennett/Getty Images News
Wall Street finished the week sharply higher as investors weighed a stronger-than-expected U.S. jobs report, upbeat semiconductor earnings, and escalating geopolitical tensions in the Middle East.
However, the State Street Financial Sel Sec SPDR ETF (XLF [https://seekingalpha.com/symbol/XLF]) ended the week 1.31% lower.
The week saw AI giant Anthropic introduce [https://seekingalpha.com/news/4585757-anthropic-unveils-10-agent-templates-for-financial-services] 10 ready-to-run agent templates designed to take on the most time-consuming tasks in financial services, including building pitchbooks, screening know-your-customer files, and closing books at month-end.
The launch is expected to streamline [https://seekingalpha.com/news/4588053-anthropics-finance-ai-agents-promise-gains-but-adoption-hurdles-persist] core banking tasks. However, adoption across financial institutions is expected to remain gradual.
Meanwhile, crypto stocks edged up as bitcoin (BTC-USD [https://seekingalpha.com/symbol/BTC-USD]) may be down for the year, but VanEck's head of digital assets research said [https://seekingalpha.com/news/4587377-bitcoin-to-reach-1m-within-five-years---vanecks-crypto-research-head] he sees a massive rally on the horizon.
Besides, there were media reports about the White House aiming for July 4 for Congress to pass [https://seekingalpha.com/news/4588014-white-house-aims-for-july-4-passage-of-clarity-act-crypto-adviser-says] the Digital Asset Market Clarity Act.
Furthermore, earnings continued to shape the overall picture in the financials sector.
Among megacap stocks, Wells Fargo (WFC [https://seekingalpha.com/symbol/WFC]) stood out as the biggest weekly decliner, retreating 6.40% to close at $75.64.
Banking stocks declined as Treasury Secretary Scott Bessent said [https://seekingalpha.com/news/4584479-bessent-warns-americans-should-be-concerned-about-ai-threats-to-bank-accounts] U.S. financial institutions and technology companies are strengthening defenses against emerging AI threats, including the possibility that AI tools could be used to penetrate bank accounts and other critical systems.
Bank of America (BAC [https://seekingalpha.com/symbol/BAC]) (-3.63% W/W to $51.31) and JPMorgan Chase (JPM [https://seekingalpha.com/symbol/JPM]) (-3.32% W/W to $302.10) were other major losers in the category.
JPMorgan was losing even as Meta Platforms was said to be working with [https://seekingalpha.com/news/4585298-meta-taps-morgan-stanley-jpmorgan-for-13b-el-paso-ai-data-center-deal-report] the banking giant on ~$13B financing package for a data center in El Paso, Texas.
Meanwhile, Morgan Stanley (MS [https://seekingalpha.com/symbol/MS]) topped the gainers, adding 1.54% to end at $193.09. Morgan Stanley had said [https://seekingalpha.com/news/4586871-morgan-stanley-undercuts-rivals-on-pricing-in-crypto-trading-debut---report] it was adding crypto trading to its E*Trade platform, forging into the space by challenging rivals on price.
Goldman Sachs (GS [https://seekingalpha.com/symbol/GS]) added 1.38% on a weekly basis to close at $936.48 as Anthropic was said to be finalizing a deal to create [https://seekingalpha.com/news/4584493-anthropic-joins-forces-with-blackstone-and-goldman-in-bold-15b-ai-push-report] a new joint venture with the company and a handful of other Wall Street firms that aim to sell AI tools to private-equity-backed firms.
Foreign financial stocks such as Mitsubishi UFJ Financial Group (MUFG [https://seekingalpha.com/symbol/MUFG]) (+1.47% W/W to $17.95) and Royal Bank of Canada (RY [https://seekingalpha.com/symbol/RY]) (+1.19% W/W to $181.68) were the other notable winners.
For largecap stocks, PayPal Holdings (PYPL [https://seekingalpha.com/symbol/PYPL]) led the losers, sliding 10.05% from the prior week to $45.37.
The payment company's Q1 earnings [https://seekingalpha.com/news/4585504-paypal-q1-earnings-revenue-beat-after-expectations-reset-lower-in-q4] and revenue exceeded the Wall Street consensus estimates as payment volumes didn't fall as much as feared and total active accounts stagnated sequentially. Guidance for the full year was maintained, but the earnings outlook for Q2 was soft.
CNA Financial (CNA [https://seekingalpha.com/symbol/CNA]) followed, falling 9.37% to $43.54. The insurer reported a disappointing Q1 [https://seekingalpha.com/article/4899533-cna-financial-a-difficult-quarter-but-the-thesis-remains-intact], with combined ratios exceeding 100% across specialty and commercial lines.
Meanwhile, IREN (IREN [https://seekingalpha.com/symbol/IREN]) was the top gainer in the category, advancing 34.03% week-over-week to $61.20. The company said [https://seekingalpha.com/news/4589259-iren-focuses-on-its-expansion-plans-as-q3-revenue-misses-on-weaker-bitcoin-price] its plans to expand to 480 MW in 2026 are on track, continuing its pivot to become a vertically integrated AI cloud provider, delivering large-scale data centers and GPU clusters for AI training and inference.
Meanwhile, fiscal Q3 revenue missed the average analyst estimate as the average price of bitcoin (BTC-USD [https://seekingalpha.com/symbol/BTC-USD]) declined.
Hut 8 Corp. (HUT [https://seekingalpha.com/symbol/HUT]) (+27.90% W/W to $98.46) and Circle Internet Group (CRCL [https://seekingalpha.com/symbol/CRCL]) (+14.01% W/W to $113.67) followed.
Hut 8 stock soared [https://seekingalpha.com/news/4586782-hut-8-stock-surges-on-98b-contract-at-beacon-point-ai-data-campus] after the energy infrastructure, compute, and digital infrastructure company announced a lease with a base-term contract value of $9.8B. The week also saw the company report [https://seekingalpha.com/news/4586746-hut-8-mining-reports-q1-results] its Q1 financial results.
Meanwhile, Circle Internet was gaining as bitcoin (BTC-USD [https://seekingalpha.com/symbol/BTC-USD]) surged [https://seekingalpha.com/news/4584498-bitcoin-tops-80000-to-hit-three-month-high-ether-advances] past $80K this week—its highest level in over three months—amid renewed investor risk appetite.
Inter & Co (INTR [https://seekingalpha.com/symbol/INTR]) (-13.83% W/W to $6.48), Nelnet (NNI [https://seekingalpha.com/symbol/NNI]) (-13.61% W/W to $122.38), and Upstart (UPST [https://seekingalpha.com/symbol/UPST]) (-11.55% W/W to $28.96) led the midcap losers. The three [https://seekingalpha.com/news/4589312-nelnet-non-gaap-eps-of-194] companies [https://seekingalpha.com/news/4588469-inter-co-reports-q1-results] reported [https://seekingalpha.com/news/4586157-upstart-stock-slumps-as-q1-loss-widens-earnings-fall-short-of-expectations] their quarterly reports this week. Upstart's Q1 earnings fell short of expectations, with net loss per diluted share widening to $0.07 from $0.03 in the prior-year quarter.
Riot Platforms (RIOT [https://seekingalpha.com/symbol/RIOT]) was a notable gainer in the category, advancing 30.16% from the previous week to $24.08. This week, Riot and Terrestrial Energy announced [https://seekingalpha.com/news/4586949-riot-platforms-terrestrial-energy-partner-for-nuclear-powered-ai-data-centers] an MoU to co-develop nuclear-powered data centers for AI and high-performance computing needs.
Among smallcap losers, Better Home & Finance (BETR [https://seekingalpha.com/symbol/BETR]) (-32.24% W/W to $30.07), Heritage Insurance (HRTG [https://seekingalpha.com/symbol/HRTG]) (-22.00% W/W to $22.41), and Onity Group (ONIT [https://seekingalpha.com/symbol/ONIT]) (-18.50% W/W to $38.91) led the pack, having reported quarterly [https://seekingalpha.com/news/4588327-better-home-finance-holding-gives-q1-numbers] financial [https://seekingalpha.com/news/4589068-heritage-insurance-gaap-eps-of-1_19-misses-by-0_32-revenue-of-212_66m-misses-by-2_73m] results [https://seekingalpha.com/news/4585475-onity-reports-mixed-q1-results-updates-fy26-outlook].
Ethos Technologies (LIFE [https://seekingalpha.com/symbol/LIFE]) (+59.52% W/W to $29.75) led the gainers despite reporting mixed quarterly earnings [https://seekingalpha.com/news/4588464-ethos-technologies-inc-gaap-eps-of-3_57-misses-by-0_92-revenue-of-193_1m-beats-by-48_12m].
MORE ON RELATED TICKERS
* IREN jumps 7%, inks five-year $3.4B AI cloud deal with Nvidia [https://seekingalpha.com/news/4589513-iren-jumps-7-inks-five-year-34b-ai-cloud-deal-with-nvidia]
* IREN focuses on its expansion plans as Q3 revenue misses on weaker bitcoin price [https://seekingalpha.com/news/4589259-iren-focuses-on-its-expansion-plans-as-q3-revenue-misses-on-weaker-bitcoin-price]
* White House aims for July 4 passage of Clarity Act, crypto adviser says [https://seekingalpha.com/news/4588014-white-house-aims-for-july-4-passage-of-clarity-act-crypto-adviser-says]
* Anthropic’s finance AI agents promise gains, but adoption hurdles persist [https://seekingalpha.com/news/4588053-anthropics-finance-ai-agents-promise-gains-but-adoption-hurdles-persist]
- 2026 ChicagoCISO ORBIE Awards Recognize Top Security Executives
May 7, 2026
Inspire Leadership Network
Leading CISOs honored for leadership, enterprise security, and business impact2026 ChicagoCISO ORBIE Award Winners
CHICAGO, May 07, 2026 (GLOBE NEWSWIRE) -- The 2026 ChicagoCISO ORBIE Awards honored leading chief information security officers (CISOs) from CNA Financial, Paychex, Inc., Intermountain Health, Fitch Group, Hagerty Insurance & Chicago Trading Company for their exceptional leadership. Hosted by ChicagoCISO, a chapter of the Inspire Leadership Network, the prestigious awards honor CISOs who drive business transformation and industry impact.
Held at the Chicago Marriott Downtown Magnificent Mile, the ceremony brought together top executives and industry leaders to honor excellence in security leadership across six award categories.
“Behind every successful cybersecurity strategy is a CISO leading the vision,” said Angela Williams, ChicagoCISO Chair. “The ORBIE Awards are the ultimate recognition program for the leaders behind the work.”
Meet the 2026 ChicagoCISO ORBIE Award Winners:
Walter Lefmann, Director of Security, Chicago Trading Company (ret), received the Leadership ORBIE.
Mahmood Khan, SVP & CISO, CNA Financial, received the Super Global ORBIE for organizations over $9 billion annual revenue & multi-national operations.
Bradley Schaufenbuel, VP & CISO, Paychex, Inc., received the Global ORBIE for organizations over $5 billion annual revenue & multi-national operations.
Erik Decker, VP & CISO, Intermountain Health, received the Large Enterprise ORBIE for organizations over $3 billion annual revenue.
Devin Rudnicki, CISO, Fitch Group, received the Enterprise ORBIE for organizations over $2.5 billion annual revenue.
Greg Bee, CISO, Hagerty Insurance, received the Large Corporate ORBIE for organizations up to $2.5 billion annual revenue.
About the ORBIE:
The ORBIE is the preeminent executive recognition for C-suite leaders. Since 1998, the ORBIE Awards have recognized leadership excellence, building relationships between executives and trusted business partners, and inspiring the next generation of executives. Finalists and winners are selected through an independent peer-adjudicated process led by prior ORBIE recipients based on the following criteria:
Leadership and management effectiveness Business protection created by enterprise security Engagement in industry and community endeavors
ChicagoCISO ORBIE Keynote & Attendance:
The keynote address for the ChicagoCISO ORBIE Awards was delivered by Walter Lefmann, Director of Security, Chicago Trading Company (ret), & Michael Phillips, Adjunct Professor, DePaul University, Jarvis College of Computing and Digital Media (CDM). Over 300 guests attended, representing leading Chicagoland organizations and their technology partners.
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The following partners made the 2026 ChicagoCISO ORBIE Awards possible:
Underwriters: Comcast Business & MajorKey Gold Partners: Chainguard, Rubrik, Tata Consultancy Services & Tenex.AI Silver Partners: Cloudflare, DigiCert, Island, Okta, Red Canary, SentinelOne, Sublime Security, Thales Group & Wiz Bronze Partners: 7AI, American Digital, Between Pixels, ForeScout Technologies, Horizon3.ai, IDMWorks, Trace3 & Varonis Media Partner: Crain’s Chicago Business Nonprofit Partner: Year Up United
To learn more about partnership opportunities and how to connect with leading C-suite executives across North America, click here.
About ChicagoCISO:
ChicagoCISO is the preeminent peer leadership network of chief information security officers (CISOs) in Chicagoland. As one of over 40 chapters of the Inspire Leadership Network, ChicagoCISO belongs to a national membership organization exclusively comprised of C-suite leaders from public and private businesses, government, education, healthcare, and nonprofit institutions.
ChicagoCISO is led by a CISO Advisory Board, with support from an executive director and staff. Underwriter executives support the chapter and ensure the programs remain non-commercial and exclusive to qualified CISOs and members.
About Inspire Leadership Network:
Inspire Leadership Network is the preeminent peer leadership network of C-suite executives. With nearly 2,000 members across more than 40 local chapters, Inspire members serve public and private businesses, government, education, healthcare, and non-profit institutions. Inspire exists to help leaders thrive in today’s most challenging executive roles.
Media Contact Nicole Lammes
nicole.lammes@inspirecxo.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b3480735-6224-4454-b0e9-71355043ce8a
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- FTSE 100 tumbles as Iran peace deal hopes rise
May 7, 2026
James Manning/PA Wire
The FTSE 100 has tumbled after hopes of a peace deal in the Middle East hit shares in oil and defence companies.
London’s premier stock index fell 1.5pc on Thursday, more than other markets across Europe and in the US.
Defence majors BAE Systems and Babcock International sank by 5pc and 2.2pc respectively following reports that the US and Iran were close to reaching a peace deal.
Shares in BP were down by 2.6pc while Shell dropped by 2.9pc after oil prices fell below $100 a barrel on hopes that the Strait of Hormuz could be re-opened. Doing so would unlock a fifth of the world’s oil and gas supplies.
Traders also slashed their bets on the number of interest rate hikes the Bank of England would make this year, from three to two. As a result, HSBC fell by 1.6pc while Barclays was down by 1.7pc as investors reasoned the banks stood to make less from interest charges.
The biggest faller on the FTSE 100 was unconnected to the war in Iran, however. Relx fell by 6.2pc after it received an analyst downgrade from Morgan Staley, which warned that the information and analytics company could face increased competition from legal AI startups.
Centrica, the owner of British Gas, also tumbled more than 5pc after it said profit from its retail division would be towards the lower end of its forecasts as bad debts jump.
The single bright spot for London’s premier index was a rise in the price of gold, which jumped to a two-week high above $4,700 an ounce. This prompted miners Fresnillo and Endeavour Mining to rise by 5.8pc and 5.1pc respectively on the FTSE 100.
Read the latest updates below.
05:21pm
Signing off ...
Thanks for following our coverage of the impacts of the war in Iran on markets worldwide.
As ever, we will keep you up to speed with all the latest here.
05:21pm
FTSE 100 falls as Iran peace deal hopes rise
The FTSE 100 has tumbled after hopes of a peace deal in the Middle East hit shares in oil and defence companies.
London’s premier stock index fell 1.5pc on Thursday, more than other markets across Europe and in the US.
Defence majors BAE Systems and Babcock International sank by 5pc and 2.2pc respectively following reports that the US and Iran were close to reaching a peace deal.
Shares in BP were down by 2.6pc while Shell dropped by 2.9pc after oil prices fell below $100 a barrel on hopes that the Strait of Hormuz could be re-opened. Doing so would unlock a fifth of the world’s oil and gas supplies.
Traders also slashed their bets on the number of interest rate hikes the Bank of England would make this year, from three to two. As a result, HSBC fell by 1.6pc while Barclays was down by 1.7pc as investors reasoned the banks stood to make less from interest charges.
The biggest faller on the FTSE 100 was unconnected to the war in Iran, however. Relx fell by 6.2pc after it received an analyst downgrade from Morgan Staley, which warned that the information and analytics company could face increased competition from legal AI startups.
Centrica, the owner of British Gas, also tumbled more than 5pc after it said profit from its retail division would be towards the lower end of its forecasts as bad debts jump.
The single bright spot for London’s premier index was a rise in the price of gold, which jumped to a two-week high above $4,700 an ounce. This prompted miners Fresnillo and Endeavour Mining to rise by 5.8pc and 5.1pc respectively on the FTSE 100.
Story Continues
03:22pm
Borrowing costs fall in anticipation of US-Iran breakthrough
The cost of government borrowing has fallen for a second day over hopes the US and Iran will soon announce an agreement to bring an end to the Middle East conflict.
Stocks and bonds have rallied across the globe as traders bet that the Strait of Hormuz will reopen soon, which would unleash global shipping and send oil and gas prices falling.
The yield on 10-year gilts, a benchmark for the cost of UK government borrowing, has declined from 4.94pc to 4.91pc today.
Longer-term 30-year gilt yields have dropped to 5.6pc after hitting a 28-year high of 5.78pc on Tuesday.
The declines in UK debt costs come as traders wait to see the result of local elections being held today.
03:00pm
Stocks to rally if Hormuz reopens
The US stock market will surge later this year if the Strait of Hormuz fully reopens soon, economists have said.
The benchmark S&P 500 will surpass 8,000 for the first time this year, a jump of another 8pc despite its recent AI-fuelled rally, according to Capital Economics.
The consultancy raised its target for the index from 7,500 following the recent strong results from tech companies around the world, which has seen the S&P 500 rise by more than 16pc since the end of March.
Chief economic adviser John Higgins said: “We doubt the latest AI-fuelled rally in the stock market will unwind anytime soon if the demand for AI inference continues to grow, even if the re-opening of the Strait eased constraints on the supply of semiconductors by, for example, improving the availability of Gulf-sourced helium used to make them.
“Meanwhile, the re-opening of the Strait would probably create the conditions for a rally in most non-tech sectors besides energy.”
However, he warned: “Nonetheless, that wouldn’t necessarily mean abandoning our long-held view that there will be a significant correction in the S&P 500 next year as the hype around AI eventually subsides.”
02:36pm
Optimism sweeps Wall Street
US stocks jumped at the start of trading amid hopes the US and Iran were edging towards an agreement on ending the Middle East war.
The Dow Jones Industrial Average rose 0.2pc to 49,983.20 while the S&P 500 climbed 0.1pc to 7,369.82.
The tech-heavy Nasdaq Composite, which has been boosted by a strong series of company results, was up 0.2pc to 25,888.36.
02:10pm
Oil prices plunge over hopes for deal
The price of oil dropped to its lowest level in more than a fortnight as hopes grow that the US and Iran are nearing a deal to end the Middle East conflict.
Brent crude, the international benchmark, has dropped by 5pc to $96 a barrel, its lowest since April 21.
US-produced West Texas Intermediate was down as much as 5.5pc to less than $90.
Francisco Simon of Santander Asset Management said: “Even though there is not yet a final peace agreement, markets are clearly pricing in a meaningful step forward toward a resolution.”
01:51pm
Emirates shielded from jet fuel surge for three years
Emirates has hedged its exposure to higher jet fuel prices for the next three years, its boss has said, as the Iran war drivers up prices for airlines.
Sheikh Ahmed bin Saeed Al Maktoum said the carrier has secured enough supply to meet current and future needs at it revealed a record annual profit.
He said: “From a fuel perspective, Emirates is well-hedged until 2028-29; and we have worked with our suppliers to secure the volumes required to support our current operations and our scaling up to predisruption levels.”
Airlines have been hit by higher fuel prices due to Iran’s blocking of the Strait of Hormuz, through which 20pc of the world’s oil normally passes.
Some airlines including Air France KLM, SAS and Lufthansa have responded by dropping flights from their summer schedules.
01:28pm
US investigating $2.6bn of suspicious oil trades linked to Iran war
Around $2.6bn of oil trades are reportedly being investigated by the US Department of Justice after being placed shortly before major announcements linked to the Iran war.
At least four trades are being examined by American authorities, according to ABC News, which said the London Stock Exchange Group had provided data about the positions.
Earlier this month, the White House warned staff not to use insider information to trade stocks or make bets after a flurry of suspiciously timed wagers on world events.
The traders under investigation reportedly include more than $500m that was bet on a drop in oil prices just 15 minutes before Donald Trump announced that he would delay threatened attacks on Iran’s power grid on March 23.On April 7, hours ahead of a temporary ceasefire was announced by the US president, traders bet $960m that oil prices would fall.
Ten days later, traders bet $760m on a drop in oil prices just 20 minutes before Iran’s foreign minister Abbas Araghchi posted on social media saying that the Strait of Hormuz was open.
US authorities are also investigating $430m of trades made on April 21, just 15 minutes before Mr Trump announced he would extend a ceasefire with Iran.
The US Department of Justice and Commodity Futures Trading Commission, which is also understood to be investigating, have been contacted for comment.
12:51pm
Pound rises over hopes for US-Iran deal
The pound has risen amid hopes that the US-Iran war is nearing its end.
Sterling was up 0.2pc against the dollar to $1.362, as traders shifted into riskier assets than the US currency, which is considered a safe haven in times of turmoil.
However, the pound was little changed against the euro at €1.157 as voters go to the polls in local elections that could spark a leadership challenge against Sir Keir Starmer.
The Prime Minister is expected to come under pressure if Labour performs poorly, as opinion polls suggest.
Bond investors are worried Sir Keir will shift ​policy to the Left or be replaced by a more Left-wing leader who could push for more spending.
In recent years, sell-offs in British government bonds, particularly longer-dated debt, have also sent the pound lower.
Nick Rees of Monex Europe ⁠said: “No one wanted to be the leader who would wear (the local election loss). That risk is out of the way tomorrow, so regardless of what happens, Starmer’s more vulnerable.
“Markets haven’t priced that in but ​they will at some point.”
12:12pm
US stocks on track to open higher
Wall Street hovered near record highs in premarket trading as hopes of a US-Iran peace deal pushed down oil prices.
The S&P 500, Dow Jones Industrial Average and Nasdaq 100 all edged higher before the opening bell amid signs that a deal could lead to the reopening of the Strait of Hormuz.
Brent crude, the international benchmark, was last down 2.1pc at around $99 a barrel as the US and Iran edge closer to a limited agreement to halt the war.
As a result, traders have gently increased bets that the US Federal Reserve could cut interest rates after all by the end of the year.
US markets have also been pushed up by a relentless rally in technology and AI companies after a string of strong results and upbeat economic data.
Private payrolls rose by 109,000 jobs in April, their largest increase in 15 months, data on Wednesday showed.
11:48am
Maersk suffers £350m fuel blow from Iran war
Shipping giant Maersk warned the Iran ​war had pushed up its fuel costs by nearly £350m a month and that the energy crisis would persist even if a peace deal was reached.
Shares were down 6.5pc despite it beating first-quarter profit forecasts amid worries that high fuel prices could hit future earnings.
Maersk chief executive Vincent Clerc said the war had added roughly 3 billion Danish krone (£346m) to the company’s monthly costs as bunker fuel prices surged from around $600 to just under $1,000 per metric ton.
Mr Clerc said Maersk had so far managed to recover those costs in full through contract renegotiations and spot rate increases, but cautioned that the energy crisis showed no sign of fading.
He said: “The energy crisis does not go away the day peace comes.
“Oil ⁠companies I speak to expect it to last at minimum several more months, possibly many more months.”
Maersk, which is viewed as a bellwether for global trade, still projects global container volume growth of between 2pc and 4pc this year but said the situation remained volatile.
The Iran war has disrupted shipping routes after Iran closed the Strait ​of Hormuz to commercial traffic. ⁠The company has six ships trapped in the Gulf, a spokesman said.Maersk said the Iran war has driven up its fuel costs by nearly £350m a month - MARTIN BERNETTI / AFP via Getty Images
11:27am
Barclays AGM disrupted by pro-Palestine protesters
Pro-Palestinian and climate protesters have interrupted the opening minutes of Barclays’ annual general meeting in Westminster.
The disruption broke out as chairman Nigel Higgins delivered his opening remarks.
Several protesters stood up holding Palestinian flags and shouting “Free free Palestine”, “Everyone here is profiting from genocide” and “Barclays bank, you can’t hide, you’re supporting genocide”.
Mr Higgins responded that the board had “heard your point” and would take questions on the topic during a later Q&A section.
Security staff escorted, and in some cases carried, the protesters out of the meeting room as they continued shouting.
A few minutes later, climate protesters rose from their seats at the AGM and started singing: “Stop, in the name of love, before you break this Earth.”
One shouted: “This bank is financing the climate and nature crisis that we have to stop. Softly-softly, slowly-slowly is not good enough. You are endangering life on Earth.”
11:04am
Petrol prices hit two-week high
Fuel prices have ticked up again after the spike in prices last week that took oil to its highest level in four-years.
The average price of unleaded has risen by 0.1p today to 157.56p, its steepest price since April 20, according to the RAC.
It leaves the price of petrol 24.7p higher than it was before the start of the war in the Middle East.
Oil prices rose to more than $126 a barrel last week, the highest since 2022, but have since fallen back to $98 today amid hopes for a US-Iran peace agreement.
The average for a litre of diesel has edged down to 188.07p, although it is still up 45.7p compared to the end of February.
10:47am
‘Filling up is like a hostile takeover of my savings account’
Shell’s profits during the Iran war have left them open to punitive taxes from the Government, Telegraph readers have warned.
Many were also sceptical of the prospects of a US-Iran peace deal and worry whether recent rises in markets are sustainable.
Here is a selection of views from the comments section below, and you can join the debate here.
10:22am
War pushes construction activity to five-month low
Construction activity fell to its lowest level in five months as uncertainty from the conflict in the Middle East weighed on the sector.
The S&P Global Construction PMI declined to 39.7 in April, down from a reading of 45.6 a month earlier. A reading below 50 indicates a contraction in the sector.
Aside from the rapid rise in prices during the pandemic, cost inflation for builders rose at its fastest pace over 30 years as the price of raw materials and fuel rose sharply.
Input prices in April climbed to the highest level since June 2022.
Tim Moore, the economics director at S&P Global, said: “A rapid acceleration of input cost inflation was seen across the UK construction sector in April.
“Around two-thirds of the survey panel reported higher cost burdens in April, which was overwhelmingly linked to fuel surcharges and subsequent rises in raw material prices.”
Builders warned that uncertainty over the impact of the Iran war on prices and supply chains is putting pressure on the industry. The sector is also grappling with the impact of higher borrowing costs.
10:14am
Stocks fall in ‘bumpy’ path to peace deal
The FTSE 100 has fallen as the fate of the critical Strait ​of Hormuz remains unresolved.
The UK’s flagship stock index was down 0.7pc, with the pan-Europe Stoxx 600 down 0.2pc despite signs that the US and Iran are closer than ever to a peace deal.
The Cac 40 in France was flat and the Dax in Frankfurt fell 0.1pc.
Michael Brown of Pepperstone said: “To be clear, the conflict is not over, and it could well prove to be the case that no deal comes to fruition.
“Still, not only does there seem little-to-no desire on either side to re-escalate in terms of kinetic action, but one should also expect that the path to peace is going to be a bumpy one.”
UK and European stocks had leapt on Wednesday, with Japan’s shares hitting record highs earlier today, as Washington presented Iran with a one-page document setting out terms for ending the conflict.
Lombard Odier chief economist Samy Chaar said that while the Middle East situation was uncertain, “the momentum is going in a good direction”.
He said: “So the oil price is down from its highs, which is obviously relieving pressure on yield curves and bond yields, and that is great news for equity valuation and makes currencies move a bit.”
09:44am
Pictured: Protesters criticise ‘obscene’ Shell profits from war
Environmental groups have attacked Shell for profiting from the Iran war.
Maja Darlington, climate campaigner for Greenpeace UK, said: “As bombs fall and bills go up, more billions roll in for Shell, one of the UK’s top war profiteers.
“Shell is making $53,241 per minute while millions of people across Britain are dreading their next energy bill. Our fossil fuelled economy is rigged in favour of oil giants like Shell – whether it’s war or wildfires, they profit, we pay.”
Patrick Galey of Global Witness said: “As lives are destroyed through war and people everywhere fear rising bills, it’s galling to see oil giants like Shell raking in obscene amounts of money.
“The combined profits of Europe’s six biggest oil firms were up by 43pc compared to the same period last year. These are clearly the spoils of war.”Greenpeace activists stage a protest at the headquarters of Shell in The Hague, Netherlands - ROBIN UTRECHT/EPA/ShutterstockOn Wednesday, Fossil Free London campaigners posed outside Shell’s London headquarters - Leon Neal/Getty Images
09:22am
Surging fertiliser prices boost exporters despite Hormuz closure
One of the world’s biggest exporters of nitrogen fertiliser said the surge in prices since the start of the Iran war has more than offset damage caused by the closure of the Strait of Hormuz.
Ahmed El-Hoshy, chief executive of Fertiglobe, said his company had begun moving its products by trucks to ports away from the waterway, which has been effectively shut by the conflict.
He said an individual truck is 2,000 times smaller than a typical vessel, adding “significant amounts of time” and logistical challenges.
Exports of urea, the world’s most widely used nitrogen fertiliser, have dropped sharply since the conflict began, along with ammonia and sulphur, as shipping has been unable to use the Strait of Hormuz.
However, he said the hit to the business from logistical problems had been “more than balanced out” by the surge in prices.
“All of that lack of exports from the Strait of Hormuz has resulted in a pretty material price effect,” he told BBC Radio 4’s Today programme.
“Urea, which is our main product, has gone from the high $400s into $850-$950 a tonne range. Quite significant.
“That price effect has more than offset the volume effect of us selling less over the last couple of months through the Strait of Hormuz.”
08:52am
JD Sports warns of cost pressures from Iran war
JD Sports Fashion has cautioned that the war in the Middle East could push up prices and weaken consumer demand if it leads to higher costs, as the retail giant reported a drop in its annual earnings.
The fashion and sportswear chain, which has 4,811 stores worldwide, said the uncertainty about the geopolitical situation could weigh on its profits in the year ahead.
JD said it had no “direct exposure” to the Middle East, and had only a handful of franchised stores in the region, and there had been no real impact on the business so far.
But the company said: “Over time, the potential future impacts of heightened uncertainty may contribute to direct cost pressures, including energy and fuel costs across our store and logistics networks, respectively, as well as potential indirect impacts on pricing and consumer demand should input cost inflation emerge.”
JD said that, as a result of the uncertainty, it was providing a wider range of profit guidance for the next financial year than it was previously planning.
It was now forecasting a pre-tax profit of between £750m and £850m, which would mark a decline from the £852m that the company made for the year to the end of January 2026, which was down 6.4pc compared with the previous year.
Still, shares rose 3pc in early trading.JD Sports Fashion warned it faces cost pressures as a result of the Iran war - REUTERS/Maja Smiejkowska
08:32am
Traders slash bets on higher interest rates over hopes for US-Iran deal
Traders have slashed bets on interest rates rising this year after the US sent Iran a proposal to end the war in the Middle East.
Money markets indicate the Bank of England will raise rates twice this year, down from three expected hikes before details of the peace plan emerged.
Any agreement on ending the war and reopening the Strait of Hormuz would lead to a sharp drop in oil and gas prices, easing inflation pressures around the world.
Shipping through the waterway has been choked off by the conflict, largely halting around a fifth of the world’s oil and gas exports.
The expected drop in price pressure has also brought down the cost of government borrowing, with the yield on two-year UK gilts down 0.17 percentage points in two days to 4.35pc.
Jim Reid, an analyst at Deutsche Bank, said: “Bonds extended their gains as investors dialled back the prospect of imminent rate hikes.”
08:18am
Shell gas production hit by attacks on Qatar hub
Shell said its gas production has been hit after the world’s largest liquefied natural gas hub suffered significant damage in the Iran war.
The Ras Laffan plant in Qatar is so large that it produces around a fifth of the global supply of liquefied natural gas (LNG).
Iran fired missiles on the site in March as its conflict with the US and Israel escalated.
In its first quarter results, it said: “The ongoing conflict in the Middle East has resulted in production shutdowns and export constraints.
“Since the start of the conflict, commodity prices and refining margins have been highly volatile.”
Shell’s total revenue was stable at around $70bn in the first quarter year-on-year but rose from $66.7bn in the fourth quarter of 2025.Iranian strikes hit the Ras Laffan has facility in March - X
08:05am
UK stocks mixed in wait for US-Iran deal
The FTSE 100 edged lower at the start of trading as investors were left on tenterhooks waiting for a US-Iran deal.
The UK’s flagship stock index was down 0.2pc to 10,421.41 while the mid-cap FTSE 250 rose by 0.5pc to 22,948.72.
07:52am
Gas prices rise as traders await US-Iran deal
Gas prices edged higher even as the US and Iran were close to a deal that would end the war and reopen the Strait of Hormuz.
Europe’s benchmark contract was up by as much as 2.3pc in early trading despite signs Washington and Tehran could be nearing a breakthrough.
It has fallen nearly 9pc over the past two days. The White House is awaiting a response from Iran to a one-page proposal that would also require Tehran to suspend its nuclear enrichment, while the US released billions in frozen Iranian assets.
In an apparent sign of goodwill, the navy of the Islamic Revolutionary Guard Corps (IRGC) said passage through the strait would be permitted following the end of “threats from aggressors”.
Dutch TTF, as the European gas contract is known, has climbed nearly 40pc since the start of the Iran war from around €30 per megawatt hour to €44.
07:43am
BAE Systems expects to hit profit targets during Iran war
BAE Systems said it was on track ​to meet profits forecasts for this year as the Iran war kept orders flowing into Britain’s biggest defence contractor.
The company, which makes Typhoon fighter jets, nuclear submarines and warships, said it had had a strong ⁠start to 2026.
It predicted it would meet its targets earnings growth of 9pc to 11pc.
It said: “Around the world, security threats continue to grow, leading governments to increase defence spending.”
BAE’s order backlog has almost doubled since Russia invaded Ukraine in 2022 and its stock has soared by almost 300pc, buoyed by the ​prospect of ⁠more spending by Nato members.
Future orders are expected across the ⁠board, BAE said, including ​in its space systems, missile and air defence ​systems and drone and counter drone technology businesses.
It comes despite a delay to Britain’s defence investment plan after Sir Keir Starmer pledged the ⁠biggest increase in defence spending since the Second World War.
Chief executive Charles Woodburn said: “We’ve delivered a strong start to 2026, underpinning our full‑year guidance.
“Our geographic breadth, proven multi‑domain capabilities, and focus on operational excellence and innovation are enabling consistent delivery of critical programmes. We’re well positioned for both current and future opportunities in defence.”BAE Systems, whose sites include a shipyard in on the Clyde in Glasgow, expects to hit profit targets - John Linton
07:27am
Oil trading boosts Shell profits
Shell said the soaring cost of crude had boosted its oil trading business.
Its wider chemicals and products business more than quadrupled underlying earnings to $1.9bn (£1.4bn) from $449m a year earlier.
Although it announced a buyback of $3bn, this was down from $3.5bn at the end of last year.
Shell chief executive Wael Sawan said: “Shell delivered strong results enabled by our relentless focus on operational performance in a quarter marked by unprecedented disruption in global energy markets.
“The safety of our people remains our priority as we work closely with governments and customers to address their energy needs.”Shell benefited from surging oil prices in the first three months of the year, which pushed up costs for motorists - Finnbarr Webster/Getty Images
07:13am
Good morning
Thanks for joining me. Shell more than doubled its profits in the first quarter of the year as the Iran war sent oil and gas prices surging.
The FTSE 100 energy giant increased its adjusted earnings to $6.9bn (£5.1bn) in the first three months of 2026, up from $3.3bn (£2.4bn) in the fourth quarter of 2025. Profits rose by 24pc compared to the same period last year.
The rise came after the conflict in the Middle East propelled oil and gas prices to four-year highs.
Shell said the period had been marked by “unprecedented disruption in global energy markets”.
The company revealed the profit jump just over a week after Ed Miliband lashed out at its rival BP over its earnings.
The Energy Secretary branded BP’s profits as “morally and economically wrong” after the war in Iran helped it more than double its earnings.
In a post on X that he later deleted, Mr Miliband wrote: “Profiting from a crisis is morally and economically wrong. That’s why we are taxing these windfall profits to help fund support with the cost of living. And why the Tories, Reform and SNP are utterly wrong to oppose the windfall tax.”
Shell also announced a new $3bn share buyback alongside the profit jump and raised its dividend by 5pc.
The FTSE 100 giant published its results as oil prices ticked slightly higher again, following a slide earlier this week.
Brent crude, the international benchmark, sank by as much as 11.9pc to a two-week low of $97 a barrel on hopes for an end to the Middle East conflict. Here is what you need to know.
5 things to start your day
1) Reeves ‘faces £8bn hit’ from Iran war | Strait of Hormuz closure risks driving UK inflation up to 6pc, warns Left-leaning think tank
2) Britain ‘sleepwalking towards jobless generation’, warn retailers | Industry chief says Labour must stop ‘upwards spiral of employment costs’ as businesses slow hiring
3) Politicians don’t understand basic economics, says Duke of Westminster’s estate | Ministers ‘interfering’ with housing demand will restrict supply, warns Grosvenor chief
4) Elon Musk to spend $120bn on world’s biggest chip plant | Tech billionaire’s SpaceX poised to begin construction of a semiconductor facility in Texas
5) Israel’s shifting society risks turning it into a ‘third-world economy’ | The country’s growing ultra‑orthodox Haredi community is under-educated and under-employed
What happened overnight
Japan’s stock market hit a record high over hopes the US and Iran will strike a deal allowing tankers to deliver crude from the Persian Gulf again.
Tokyo’s Nikkei 225 jumped more than 3,500 points to 63,086.00 as markets in Tokyo reopened following “Golden Week” holidays. Oil prices edged up to $102 a barrel.
The Nikkei has gained nearly 20pc in the past three months and more than 70pc in the past year, pushed higher by strong buying of tech shares that have benefited from the boom in artificial intelligence.
Computer chip equipment maker Tokyo Electron gained 8.8pc and testing equipment maker Advantest added 8pc. Shin-Etsu Chemican gained 9.7pc.
Elsewhere in Asia, the Hang Seng in Hong Kong gained 1.5pc to 26,589.46.
The S&P/ASX 200 in Australia was up 0.8pc at 8,862.40.
In South Korea, the Kospi reversed early losses, gaining 1.1pc to 7,465.01. The benchmark jumped nearly 7pc a day earlier to barrel past 7,000 for the first time.
Taiwan’s Taiex surged 1.9pc, lifted by a 3.1pc gain for big computer chipmaker TSMC.
On Wednesday, stocks climbed to records for a second day in a row, amid renewed optimism that a negotiated end to the Middle East war was within reach.
The blue-chip Dow rose by 1.24pc to 49,910.59 while the Nasdaq Composite and S&P 500 both set new records. The former rose by 2pc to 25,838.94 while the S&P 500 jumped by 1.5pc to 7,365.12.
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View Comments
- FTSE 100 tumbles as Iran peace deal hopes rise
May 7, 2026
James Manning/PA Wire
The FTSE 100 has tumbled after hopes of a peace deal in the Middle East hit shares in oil and defence companies.
London’s premier stock index fell 1.5pc on Thursday, more than other markets across Europe and in the US.
Defence majors BAE Systems and Babcock International sank by 5pc and 2.2pc respectively following reports that the US and Iran were close to reaching a peace deal.
Shares in BP were down by 2.6pc while Shell dropped by 2.9pc after oil prices fell below $100 a barrel on hopes that the Strait of Hormuz could be re-opened. Doing so would unlock a fifth of the world’s oil and gas supplies.
Traders also slashed their bets on the number of interest rate hikes the Bank of England would make this year, from three to two. As a result, HSBC fell by 1.6pc while Barclays was down by 1.7pc as investors reasoned the banks stood to make less from interest charges.
The biggest faller on the FTSE 100 was unconnected to the war in Iran, however. Relx fell by 6.2pc after it received an analyst downgrade from Morgan Staley, which warned that the information and analytics company could face increased competition from legal AI startups.
Centrica, the owner of British Gas, also tumbled more than 5pc after it said profit from its retail division would be towards the lower end of its forecasts as bad debts jump.
The single bright spot for London’s premier index was a rise in the price of gold, which jumped to a two-week high above $4,700 an ounce. This prompted miners Fresnillo and Endeavour Mining to rise by 5.8pc and 5.1pc respectively on the FTSE 100.
Read the latest updates below.
05:21pm
Signing off ...
Thanks for following our coverage of the impacts of the war in Iran on markets worldwide.
As ever, we will keep you up to speed with all the latest here.
05:21pm
FTSE 100 falls as Iran peace deal hopes rise
The FTSE 100 has tumbled after hopes of a peace deal in the Middle East hit shares in oil and defence companies.
London’s premier stock index fell 1.5pc on Thursday, more than other markets across Europe and in the US.
Defence majors BAE Systems and Babcock International sank by 5pc and 2.2pc respectively following reports that the US and Iran were close to reaching a peace deal.
Shares in BP were down by 2.6pc while Shell dropped by 2.9pc after oil prices fell below $100 a barrel on hopes that the Strait of Hormuz could be re-opened. Doing so would unlock a fifth of the world’s oil and gas supplies.
Traders also slashed their bets on the number of interest rate hikes the Bank of England would make this year, from three to two. As a result, HSBC fell by 1.6pc while Barclays was down by 1.7pc as investors reasoned the banks stood to make less from interest charges.
The biggest faller on the FTSE 100 was unconnected to the war in Iran, however. Relx fell by 6.2pc after it received an analyst downgrade from Morgan Staley, which warned that the information and analytics company could face increased competition from legal AI startups.
Centrica, the owner of British Gas, also tumbled more than 5pc after it said profit from its retail division would be towards the lower end of its forecasts as bad debts jump.
The single bright spot for London’s premier index was a rise in the price of gold, which jumped to a two-week high above $4,700 an ounce. This prompted miners Fresnillo and Endeavour Mining to rise by 5.8pc and 5.1pc respectively on the FTSE 100.
Story Continues
03:22pm
Borrowing costs fall in anticipation of US-Iran breakthrough
The cost of government borrowing has fallen for a second day over hopes the US and Iran will soon announce an agreement to bring an end to the Middle East conflict.
Stocks and bonds have rallied across the globe as traders bet that the Strait of Hormuz will reopen soon, which would unleash global shipping and send oil and gas prices falling.
The yield on 10-year gilts, a benchmark for the cost of UK government borrowing, has declined from 4.94pc to 4.91pc today.
Longer-term 30-year gilt yields have dropped to 5.6pc after hitting a 28-year high of 5.78pc on Tuesday.
The declines in UK debt costs come as traders wait to see the result of local elections being held today.
03:00pm
Stocks to rally if Hormuz reopens
The US stock market will surge later this year if the Strait of Hormuz fully reopens soon, economists have said.
The benchmark S&P 500 will surpass 8,000 for the first time this year, a jump of another 8pc despite its recent AI-fuelled rally, according to Capital Economics.
The consultancy raised its target for the index from 7,500 following the recent strong results from tech companies around the world, which has seen the S&P 500 rise by more than 16pc since the end of March.
Chief economic adviser John Higgins said: “We doubt the latest AI-fuelled rally in the stock market will unwind anytime soon if the demand for AI inference continues to grow, even if the re-opening of the Strait eased constraints on the supply of semiconductors by, for example, improving the availability of Gulf-sourced helium used to make them.
“Meanwhile, the re-opening of the Strait would probably create the conditions for a rally in most non-tech sectors besides energy.”
However, he warned: “Nonetheless, that wouldn’t necessarily mean abandoning our long-held view that there will be a significant correction in the S&P 500 next year as the hype around AI eventually subsides.”
02:36pm
Optimism sweeps Wall Street
US stocks jumped at the start of trading amid hopes the US and Iran were edging towards an agreement on ending the Middle East war.
The Dow Jones Industrial Average rose 0.2pc to 49,983.20 while the S&P 500 climbed 0.1pc to 7,369.82.
The tech-heavy Nasdaq Composite, which has been boosted by a strong series of company results, was up 0.2pc to 25,888.36.
02:10pm
Oil prices plunge over hopes for deal
The price of oil dropped to its lowest level in more than a fortnight as hopes grow that the US and Iran are nearing a deal to end the Middle East conflict.
Brent crude, the international benchmark, has dropped by 5pc to $96 a barrel, its lowest since April 21.
US-produced West Texas Intermediate was down as much as 5.5pc to less than $90.
Francisco Simon of Santander Asset Management said: “Even though there is not yet a final peace agreement, markets are clearly pricing in a meaningful step forward toward a resolution.”
01:51pm
Emirates shielded from jet fuel surge for three years
Emirates has hedged its exposure to higher jet fuel prices for the next three years, its boss has said, as the Iran war drivers up prices for airlines.
Sheikh Ahmed bin Saeed Al Maktoum said the carrier has secured enough supply to meet current and future needs at it revealed a record annual profit.
He said: “From a fuel perspective, Emirates is well-hedged until 2028-29; and we have worked with our suppliers to secure the volumes required to support our current operations and our scaling up to predisruption levels.”
Airlines have been hit by higher fuel prices due to Iran’s blocking of the Strait of Hormuz, through which 20pc of the world’s oil normally passes.
Some airlines including Air France KLM, SAS and Lufthansa have responded by dropping flights from their summer schedules.
01:28pm
US investigating $2.6bn of suspicious oil trades linked to Iran war
Around $2.6bn of oil trades are reportedly being investigated by the US Department of Justice after being placed shortly before major announcements linked to the Iran war.
At least four trades are being examined by American authorities, according to ABC News, which said the London Stock Exchange Group had provided data about the positions.
Earlier this month, the White House warned staff not to use insider information to trade stocks or make bets after a flurry of suspiciously timed wagers on world events.
The traders under investigation reportedly include more than $500m that was bet on a drop in oil prices just 15 minutes before Donald Trump announced that he would delay threatened attacks on Iran’s power grid on March 23.On April 7, hours ahead of a temporary ceasefire was announced by the US president, traders bet $960m that oil prices would fall.
Ten days later, traders bet $760m on a drop in oil prices just 20 minutes before Iran’s foreign minister Abbas Araghchi posted on social media saying that the Strait of Hormuz was open.
US authorities are also investigating $430m of trades made on April 21, just 15 minutes before Mr Trump announced he would extend a ceasefire with Iran.
The US Department of Justice and Commodity Futures Trading Commission, which is also understood to be investigating, have been contacted for comment.
12:51pm
Pound rises over hopes for US-Iran deal
The pound has risen amid hopes that the US-Iran war is nearing its end.
Sterling was up 0.2pc against the dollar to $1.362, as traders shifted into riskier assets than the US currency, which is considered a safe haven in times of turmoil.
However, the pound was little changed against the euro at €1.157 as voters go to the polls in local elections that could spark a leadership challenge against Sir Keir Starmer.
The Prime Minister is expected to come under pressure if Labour performs poorly, as opinion polls suggest.
Bond investors are worried Sir Keir will shift ​policy to the Left or be replaced by a more Left-wing leader who could push for more spending.
In recent years, sell-offs in British government bonds, particularly longer-dated debt, have also sent the pound lower.
Nick Rees of Monex Europe ⁠said: “No one wanted to be the leader who would wear (the local election loss). That risk is out of the way tomorrow, so regardless of what happens, Starmer’s more vulnerable.
“Markets haven’t priced that in but ​they will at some point.”
12:12pm
US stocks on track to open higher
Wall Street hovered near record highs in premarket trading as hopes of a US-Iran peace deal pushed down oil prices.
The S&P 500, Dow Jones Industrial Average and Nasdaq 100 all edged higher before the opening bell amid signs that a deal could lead to the reopening of the Strait of Hormuz.
Brent crude, the international benchmark, was last down 2.1pc at around $99 a barrel as the US and Iran edge closer to a limited agreement to halt the war.
As a result, traders have gently increased bets that the US Federal Reserve could cut interest rates after all by the end of the year.
US markets have also been pushed up by a relentless rally in technology and AI companies after a string of strong results and upbeat economic data.
Private payrolls rose by 109,000 jobs in April, their largest increase in 15 months, data on Wednesday showed.
11:48am
Maersk suffers £350m fuel blow from Iran war
Shipping giant Maersk warned the Iran ​war had pushed up its fuel costs by nearly £350m a month and that the energy crisis would persist even if a peace deal was reached.
Shares were down 6.5pc despite it beating first-quarter profit forecasts amid worries that high fuel prices could hit future earnings.
Maersk chief executive Vincent Clerc said the war had added roughly 3 billion Danish krone (£346m) to the company’s monthly costs as bunker fuel prices surged from around $600 to just under $1,000 per metric ton.
Mr Clerc said Maersk had so far managed to recover those costs in full through contract renegotiations and spot rate increases, but cautioned that the energy crisis showed no sign of fading.
He said: “The energy crisis does not go away the day peace comes.
“Oil ⁠companies I speak to expect it to last at minimum several more months, possibly many more months.”
Maersk, which is viewed as a bellwether for global trade, still projects global container volume growth of between 2pc and 4pc this year but said the situation remained volatile.
The Iran war has disrupted shipping routes after Iran closed the Strait ​of Hormuz to commercial traffic. ⁠The company has six ships trapped in the Gulf, a spokesman said.Maersk said the Iran war has driven up its fuel costs by nearly £350m a month - MARTIN BERNETTI / AFP via Getty Images
11:27am
Barclays AGM disrupted by pro-Palestine protesters
Pro-Palestinian and climate protesters have interrupted the opening minutes of Barclays’ annual general meeting in Westminster.
The disruption broke out as chairman Nigel Higgins delivered his opening remarks.
Several protesters stood up holding Palestinian flags and shouting “Free free Palestine”, “Everyone here is profiting from genocide” and “Barclays bank, you can’t hide, you’re supporting genocide”.
Mr Higgins responded that the board had “heard your point” and would take questions on the topic during a later Q&A section.
Security staff escorted, and in some cases carried, the protesters out of the meeting room as they continued shouting.
A few minutes later, climate protesters rose from their seats at the AGM and started singing: “Stop, in the name of love, before you break this Earth.”
One shouted: “This bank is financing the climate and nature crisis that we have to stop. Softly-softly, slowly-slowly is not good enough. You are endangering life on Earth.”
11:04am
Petrol prices hit two-week high
Fuel prices have ticked up again after the spike in prices last week that took oil to its highest level in four-years.
The average price of unleaded has risen by 0.1p today to 157.56p, its steepest price since April 20, according to the RAC.
It leaves the price of petrol 24.7p higher than it was before the start of the war in the Middle East.
Oil prices rose to more than $126 a barrel last week, the highest since 2022, but have since fallen back to $98 today amid hopes for a US-Iran peace agreement.
The average for a litre of diesel has edged down to 188.07p, although it is still up 45.7p compared to the end of February.
10:47am
‘Filling up is like a hostile takeover of my savings account’
Shell’s profits during the Iran war have left them open to punitive taxes from the Government, Telegraph readers have warned.
Many were also sceptical of the prospects of a US-Iran peace deal and worry whether recent rises in markets are sustainable.
Here is a selection of views from the comments section below, and you can join the debate here.
10:22am
War pushes construction activity to five-month low
Construction activity fell to its lowest level in five months as uncertainty from the conflict in the Middle East weighed on the sector.
The S&P Global Construction PMI declined to 39.7 in April, down from a reading of 45.6 a month earlier. A reading below 50 indicates a contraction in the sector.
Aside from the rapid rise in prices during the pandemic, cost inflation for builders rose at its fastest pace over 30 years as the price of raw materials and fuel rose sharply.
Input prices in April climbed to the highest level since June 2022.
Tim Moore, the economics director at S&P Global, said: “A rapid acceleration of input cost inflation was seen across the UK construction sector in April.
“Around two-thirds of the survey panel reported higher cost burdens in April, which was overwhelmingly linked to fuel surcharges and subsequent rises in raw material prices.”
Builders warned that uncertainty over the impact of the Iran war on prices and supply chains is putting pressure on the industry. The sector is also grappling with the impact of higher borrowing costs.
10:14am
Stocks fall in ‘bumpy’ path to peace deal
The FTSE 100 has fallen as the fate of the critical Strait ​of Hormuz remains unresolved.
The UK’s flagship stock index was down 0.7pc, with the pan-Europe Stoxx 600 down 0.2pc despite signs that the US and Iran are closer than ever to a peace deal.
The Cac 40 in France was flat and the Dax in Frankfurt fell 0.1pc.
Michael Brown of Pepperstone said: “To be clear, the conflict is not over, and it could well prove to be the case that no deal comes to fruition.
“Still, not only does there seem little-to-no desire on either side to re-escalate in terms of kinetic action, but one should also expect that the path to peace is going to be a bumpy one.”
UK and European stocks had leapt on Wednesday, with Japan’s shares hitting record highs earlier today, as Washington presented Iran with a one-page document setting out terms for ending the conflict.
Lombard Odier chief economist Samy Chaar said that while the Middle East situation was uncertain, “the momentum is going in a good direction”.
He said: “So the oil price is down from its highs, which is obviously relieving pressure on yield curves and bond yields, and that is great news for equity valuation and makes currencies move a bit.”
09:44am
Pictured: Protesters criticise ‘obscene’ Shell profits from war
Environmental groups have attacked Shell for profiting from the Iran war.
Maja Darlington, climate campaigner for Greenpeace UK, said: “As bombs fall and bills go up, more billions roll in for Shell, one of the UK’s top war profiteers.
“Shell is making $53,241 per minute while millions of people across Britain are dreading their next energy bill. Our fossil fuelled economy is rigged in favour of oil giants like Shell – whether it’s war or wildfires, they profit, we pay.”
Patrick Galey of Global Witness said: “As lives are destroyed through war and people everywhere fear rising bills, it’s galling to see oil giants like Shell raking in obscene amounts of money.
“The combined profits of Europe’s six biggest oil firms were up by 43pc compared to the same period last year. These are clearly the spoils of war.”Greenpeace activists stage a protest at the headquarters of Shell in The Hague, Netherlands - ROBIN UTRECHT/EPA/ShutterstockOn Wednesday, Fossil Free London campaigners posed outside Shell’s London headquarters - Leon Neal/Getty Images
09:22am
Surging fertiliser prices boost exporters despite Hormuz closure
One of the world’s biggest exporters of nitrogen fertiliser said the surge in prices since the start of the Iran war has more than offset damage caused by the closure of the Strait of Hormuz.
Ahmed El-Hoshy, chief executive of Fertiglobe, said his company had begun moving its products by trucks to ports away from the waterway, which has been effectively shut by the conflict.
He said an individual truck is 2,000 times smaller than a typical vessel, adding “significant amounts of time” and logistical challenges.
Exports of urea, the world’s most widely used nitrogen fertiliser, have dropped sharply since the conflict began, along with ammonia and sulphur, as shipping has been unable to use the Strait of Hormuz.
However, he said the hit to the business from logistical problems had been “more than balanced out” by the surge in prices.
“All of that lack of exports from the Strait of Hormuz has resulted in a pretty material price effect,” he told BBC Radio 4’s Today programme.
“Urea, which is our main product, has gone from the high $400s into $850-$950 a tonne range. Quite significant.
“That price effect has more than offset the volume effect of us selling less over the last couple of months through the Strait of Hormuz.”
08:52am
JD Sports warns of cost pressures from Iran war
JD Sports Fashion has cautioned that the war in the Middle East could push up prices and weaken consumer demand if it leads to higher costs, as the retail giant reported a drop in its annual earnings.
The fashion and sportswear chain, which has 4,811 stores worldwide, said the uncertainty about the geopolitical situation could weigh on its profits in the year ahead.
JD said it had no “direct exposure” to the Middle East, and had only a handful of franchised stores in the region, and there had been no real impact on the business so far.
But the company said: “Over time, the potential future impacts of heightened uncertainty may contribute to direct cost pressures, including energy and fuel costs across our store and logistics networks, respectively, as well as potential indirect impacts on pricing and consumer demand should input cost inflation emerge.”
JD said that, as a result of the uncertainty, it was providing a wider range of profit guidance for the next financial year than it was previously planning.
It was now forecasting a pre-tax profit of between £750m and £850m, which would mark a decline from the £852m that the company made for the year to the end of January 2026, which was down 6.4pc compared with the previous year.
Still, shares rose 3pc in early trading.JD Sports Fashion warned it faces cost pressures as a result of the Iran war - REUTERS/Maja Smiejkowska
08:32am
Traders slash bets on higher interest rates over hopes for US-Iran deal
Traders have slashed bets on interest rates rising this year after the US sent Iran a proposal to end the war in the Middle East.
Money markets indicate the Bank of England will raise rates twice this year, down from three expected hikes before details of the peace plan emerged.
Any agreement on ending the war and reopening the Strait of Hormuz would lead to a sharp drop in oil and gas prices, easing inflation pressures around the world.
Shipping through the waterway has been choked off by the conflict, largely halting around a fifth of the world’s oil and gas exports.
The expected drop in price pressure has also brought down the cost of government borrowing, with the yield on two-year UK gilts down 0.17 percentage points in two days to 4.35pc.
Jim Reid, an analyst at Deutsche Bank, said: “Bonds extended their gains as investors dialled back the prospect of imminent rate hikes.”
08:18am
Shell gas production hit by attacks on Qatar hub
Shell said its gas production has been hit after the world’s largest liquefied natural gas hub suffered significant damage in the Iran war.
The Ras Laffan plant in Qatar is so large that it produces around a fifth of the global supply of liquefied natural gas (LNG).
Iran fired missiles on the site in March as its conflict with the US and Israel escalated.
In its first quarter results, it said: “The ongoing conflict in the Middle East has resulted in production shutdowns and export constraints.
“Since the start of the conflict, commodity prices and refining margins have been highly volatile.”
Shell’s total revenue was stable at around $70bn in the first quarter year-on-year but rose from $66.7bn in the fourth quarter of 2025.Iranian strikes hit the Ras Laffan has facility in March - X
08:05am
UK stocks mixed in wait for US-Iran deal
The FTSE 100 edged lower at the start of trading as investors were left on tenterhooks waiting for a US-Iran deal.
The UK’s flagship stock index was down 0.2pc to 10,421.41 while the mid-cap FTSE 250 rose by 0.5pc to 22,948.72.
07:52am
Gas prices rise as traders await US-Iran deal
Gas prices edged higher even as the US and Iran were close to a deal that would end the war and reopen the Strait of Hormuz.
Europe’s benchmark contract was up by as much as 2.3pc in early trading despite signs Washington and Tehran could be nearing a breakthrough.
It has fallen nearly 9pc over the past two days. The White House is awaiting a response from Iran to a one-page proposal that would also require Tehran to suspend its nuclear enrichment, while the US released billions in frozen Iranian assets.
In an apparent sign of goodwill, the navy of the Islamic Revolutionary Guard Corps (IRGC) said passage through the strait would be permitted following the end of “threats from aggressors”.
Dutch TTF, as the European gas contract is known, has climbed nearly 40pc since the start of the Iran war from around €30 per megawatt hour to €44.
07:43am
BAE Systems expects to hit profit targets during Iran war
BAE Systems said it was on track ​to meet profits forecasts for this year as the Iran war kept orders flowing into Britain’s biggest defence contractor.
The company, which makes Typhoon fighter jets, nuclear submarines and warships, said it had had a strong ⁠start to 2026.
It predicted it would meet its targets earnings growth of 9pc to 11pc.
It said: “Around the world, security threats continue to grow, leading governments to increase defence spending.”
BAE’s order backlog has almost doubled since Russia invaded Ukraine in 2022 and its stock has soared by almost 300pc, buoyed by the ​prospect of ⁠more spending by Nato members.
Future orders are expected across the ⁠board, BAE said, including ​in its space systems, missile and air defence ​systems and drone and counter drone technology businesses.
It comes despite a delay to Britain’s defence investment plan after Sir Keir Starmer pledged the ⁠biggest increase in defence spending since the Second World War.
Chief executive Charles Woodburn said: “We’ve delivered a strong start to 2026, underpinning our full‑year guidance.
“Our geographic breadth, proven multi‑domain capabilities, and focus on operational excellence and innovation are enabling consistent delivery of critical programmes. We’re well positioned for both current and future opportunities in defence.”BAE Systems, whose sites include a shipyard in on the Clyde in Glasgow, expects to hit profit targets - John Linton
07:27am
Oil trading boosts Shell profits
Shell said the soaring cost of crude had boosted its oil trading business.
Its wider chemicals and products business more than quadrupled underlying earnings to $1.9bn (£1.4bn) from $449m a year earlier.
Although it announced a buyback of $3bn, this was down from $3.5bn at the end of last year.
Shell chief executive Wael Sawan said: “Shell delivered strong results enabled by our relentless focus on operational performance in a quarter marked by unprecedented disruption in global energy markets.
“The safety of our people remains our priority as we work closely with governments and customers to address their energy needs.”Shell benefited from surging oil prices in the first three months of the year, which pushed up costs for motorists - Finnbarr Webster/Getty Images
07:13am
Good morning
Thanks for joining me. Shell more than doubled its profits in the first quarter of the year as the Iran war sent oil and gas prices surging.
The FTSE 100 energy giant increased its adjusted earnings to $6.9bn (£5.1bn) in the first three months of 2026, up from $3.3bn (£2.4bn) in the fourth quarter of 2025. Profits rose by 24pc compared to the same period last year.
The rise came after the conflict in the Middle East propelled oil and gas prices to four-year highs.
Shell said the period had been marked by “unprecedented disruption in global energy markets”.
The company revealed the profit jump just over a week after Ed Miliband lashed out at its rival BP over its earnings.
The Energy Secretary branded BP’s profits as “morally and economically wrong” after the war in Iran helped it more than double its earnings.
In a post on X that he later deleted, Mr Miliband wrote: “Profiting from a crisis is morally and economically wrong. That’s why we are taxing these windfall profits to help fund support with the cost of living. And why the Tories, Reform and SNP are utterly wrong to oppose the windfall tax.”
Shell also announced a new $3bn share buyback alongside the profit jump and raised its dividend by 5pc.
The FTSE 100 giant published its results as oil prices ticked slightly higher again, following a slide earlier this week.
Brent crude, the international benchmark, sank by as much as 11.9pc to a two-week low of $97 a barrel on hopes for an end to the Middle East conflict. Here is what you need to know.
5 things to start your day
1) Reeves ‘faces £8bn hit’ from Iran war | Strait of Hormuz closure risks driving UK inflation up to 6pc, warns Left-leaning think tank
2) Britain ‘sleepwalking towards jobless generation’, warn retailers | Industry chief says Labour must stop ‘upwards spiral of employment costs’ as businesses slow hiring
3) Politicians don’t understand basic economics, says Duke of Westminster’s estate | Ministers ‘interfering’ with housing demand will restrict supply, warns Grosvenor chief
4) Elon Musk to spend $120bn on world’s biggest chip plant | Tech billionaire’s SpaceX poised to begin construction of a semiconductor facility in Texas
5) Israel’s shifting society risks turning it into a ‘third-world economy’ | The country’s growing ultra‑orthodox Haredi community is under-educated and under-employed
What happened overnight
Japan’s stock market hit a record high over hopes the US and Iran will strike a deal allowing tankers to deliver crude from the Persian Gulf again.
Tokyo’s Nikkei 225 jumped more than 3,500 points to 63,086.00 as markets in Tokyo reopened following “Golden Week” holidays. Oil prices edged up to $102 a barrel.
The Nikkei has gained nearly 20pc in the past three months and more than 70pc in the past year, pushed higher by strong buying of tech shares that have benefited from the boom in artificial intelligence.
Computer chip equipment maker Tokyo Electron gained 8.8pc and testing equipment maker Advantest added 8pc. Shin-Etsu Chemican gained 9.7pc.
Elsewhere in Asia, the Hang Seng in Hong Kong gained 1.5pc to 26,589.46.
The S&P/ASX 200 in Australia was up 0.8pc at 8,862.40.
In South Korea, the Kospi reversed early losses, gaining 1.1pc to 7,465.01. The benchmark jumped nearly 7pc a day earlier to barrel past 7,000 for the first time.
Taiwan’s Taiex surged 1.9pc, lifted by a 3.1pc gain for big computer chipmaker TSMC.
On Wednesday, stocks climbed to records for a second day in a row, amid renewed optimism that a negotiated end to the Middle East war was within reach.
The blue-chip Dow rose by 1.24pc to 49,910.59 while the Nasdaq Composite and S&P 500 both set new records. The former rose by 2pc to 25,838.94 while the S&P 500 jumped by 1.5pc to 7,365.12.
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- Top Research Reports for Eli Lilly, Western Digital & Vertiv
May 6, 2026
Wednesday, May 6, 2026
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Eli Lilly and Co. (LLY), Western Digital Corp. (WDC) and Vertiv Holdings Co (VRT), as well as a micro-cap stock AgEagle Aerial Systems, Inc. (UAVS). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> ADP +109K: Job Growth on Lower-Paying Work
Today's Featured Research Reports
Eli Lilly’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+28.2% vs. +21.5%). The company’s Q1 earnings and sales beat estimates. Demand for its popular GLP-1 drugs Mounjaro and Zepbound remains strong, making them the company’s key top-line drivers.
Lilly’s other new drugs like Kisunla, Omvoh and Jaypirca are also contributing to top-line growth. It is also making rapid pipeline progress in obesity and diabetes with its new oral GLP-1 obesity pill, Foundayo, expected to be a commercial game-changer for Lilly.
Over the past couple of years, Lilly has announced several M&A deals aimed at diversifying beyond GLP-1 drugs and expanding its presence in cardiovascular, oncology, and neuroscience. Declining sales of Trulicity, rising pricing pressure on some drugs and potential competition in the GLP-1 market are some top-line headwinds.
(You can read the full research report on Eli Lilly here >>>)
Shares of Western Digital have outperformed the Zacks Computer- Storage Devices industry over the past year (+952.5% vs. +568.9%). The company’s fiscal third-quarter results were led by strength across end markets riding on AI-led storage needs and multi-year customer agreements extending through 2028-29. Cloud end market (89% of total) rose 48% to $3B, fueled by strong demand for high-capacity nearline drives and favorable pricing.
Margins were driven by higher-capacity drives and higher UltraSMR uptake that improved customer TCO, while strong operating leverage, lower interest costs and tax efficiency led to double EPS. WD is advancing areal density and enhancing performance with high-bandwidth drives.
Western Digital strengthened balance sheet by selling 5.8 million SanDisk shares, cutting debt by $3.1 billion, leaving $1.6 billion in convertible debt and ending with a $450 million net cash position. WD expects fiscal fourth-quarter revenue of $3.65B, up 40% year-over-year at the midpoint.
(You can read the full research report on Western Digital here >>>)
Vertiv’s shares have outperformed the Zacks Computers - IT Services industry over the past year (+265.6% vs. -26.4%). The company remains leveraged to rising data center power and thermal needs as AI deployments drive higher infrastructure density and faster build cycles. Q1’26 results showed continued demand and execution, with organic sales growth led by the Americas and higher profitability supported by productivity and price-cost.
Management raised 2026 guidance and is investing in capacity, services, and engineering, while acquisitions extend capabilities in liquid cooling and heat rejection. A strengthened balance sheet following investment-grade ratings and refinancing supports this investment cycle.
Against these positives, regional volatility persists, with EMEA still working through prior order softness and APAC exposed to uneven China demand. Tariffs and supply chain complexity also require ongoing mitigation to protect margins.
(You can read the full research report on Vertiv here >>>)
Shares of AgEagle Aerial Systems have gained +21.3% over the past year against the Zacks Agriculture - Operations industry’s gain of +30.7%. This microcap company with a market capitalization of $61.69 million is positioned to benefit from regulatory approvals, defense adoption, and a broad global distribution network that support growth in commercial and government drone markets.
AgEagle Aerial Systems’ integrated drone-and-sensor ecosystem, expanding multispectral imaging portfolio, and manufacturing expansion strengthen its ability to serve higher-value applications and benefit from increasing demand for compliant, domestically sourced systems. The company also benefits from an established operating history and large installed base, supporting credibility in mission-critical use cases.
However, key risks remain tied to inconsistent revenue growth, ongoing operating losses, and dependence on external financing. Revenue visibility is limited by customer concentration and uneven procurement cycles, while the lack of meaningful recurring revenue keeps results tied to hardware sales.
(You can read the full research report on AgEagle Aerial Systems here >>>)
Other noteworthy reports we are featuring today include Chipotle Mexican Grill, Inc. (CMG), Reddit, Inc. (RDDT) and First Solar, Inc. (FSLR).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
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Today's Must Read
Lilly (LLY) New Drugs to Drive Sales Growth Amid Rising Competition
Western Digital (WDC) Poised for Growth on AI Storage and HDD Demand
AI-Driven Data Center Demand Aids Vertiv (VRT) Prospects
Featured Reports
Chipotle (CMG) Banks On Strategic Initiatives, High Costs Ail
Per the Zacks analyst, Chipotle's focus on Recipe for Growth strategy, unit expansion, and Zipline pilot bode well. However, the uncertain macro environment and high costs pose concerns.
Strong Solar Demand Aids First Solar (FSLR) Amid Tariff Risks
Per the Zacks analyst, First Solar is benefiting from strong solar demand, though rising tariffs and trade uncertainties across key manufacturing regions may pressure near-term operations and costs.
Murphy USA (MUSA) Benefits from a High-Volume, Low-Cost Model
The Zacks analyst believes that Murphy USA's high-volume, low-cost model, along with its proximity to Walmart, positions the company to maintain above-average fuel sales and strong profitability.
Encompass Health (EHC) Strengthens Growth Through Expansion Efforts
Per the Zacks analyst, Encompass Health's expansion through de novo hospitals will drive patient volumes and profit levels. However, escalating expenses remain a concern for the company.
Healthcare Demand Aids AptarGroup (ATR) Amid Soft Closures Volumes
Per the Zacks analyst, AptarGroup will gain from demand in consumer healthcare. However, weaker volumes and pricing dynamics in Closures remain a woe.
Leisure Demand and Strategic Initiatives Aid Marriott Vacations (VAC)
Per the Zacks analyst, Marriott Vacations benefits from resilient leisure demand and improving rental and financing trends. Also, focus on operational initiatives and asset monetization bode well.
Cost Management Approach, Stable Solvency Boost Omnicell (OMCL)
The Zacks analyst is impressed with Omnicell's expense containment measures that aggravates non-GAAP EBITDA expansion. Also, a strong solvency looks encouraging.
New Upgrades
Reddit (RDDT) Rides on Growing User Engagement, AI Features
Per the Zacks analyst, Reddit is benefiting from strong growth in user engagement driven by AI-powered features.
Silicon Motion (SIMO) Rides on Strength in Multiple Verticals
Per the Zacks analyst, growing demand across embedded storage, automotive, and emerging AI-driven enterprise applications will likely drive Silicon Motion's top line.
Helen of Troy (HELE) Gains on Strength in Leadership Brands
Per the Zacks analyst, Helen of Troy is benefiting from strong performance in its Leadership Brands, with growth in key categories, improved pricing and continued innovation supporting its outlook.
New Downgrades
Grab is Hurt By Labor Issue Stiff Competition and Economic Uncertainty
Per the Zacks Analyst, stiff competition from regional players, economic uncertainty in Southeast Asian markets like Singapore and the Philippines, and labor crisis hurt Grab's prospects.
Cat Loss Exposure, Rising Expenses Hurt CNA Financial (CNA)
Per the Zacks analyst, CNA Financial's exposure to catastrophe loss induces underwriting volatility thus profitability while rising expenses affecting net operating income concerns.
Rising Expenses, Geopolitical Woes to Hurt Moelis and Company (MC)
Per the Zacks analyst, higher costs due to Moelis and Company's hiring spree and investments in technology will hurt profits. Geopolitical and macroeconomic woes add to ambiguity in operating backdrop
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First Solar, Inc. (FSLR) : Free Stock Analysis Report
Eli Lilly and Company (LLY) : Free Stock Analysis Report
Western Digital Corporation (WDC) : Free Stock Analysis Report
Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report
AGEAGLE AERIAL SYSTEMS, INC. (UAVS): Free Stock Analysis Report
Vertiv Holdings Co. (VRT) : Free Stock Analysis Report
Reddit Inc. (RDDT) : Free Stock Analysis Report
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- CNA Financial: A Difficult Quarter, But The Thesis Remains Intact
May 6, 2026 · seekingalpha.com
CNA Financial reported a disappointing Q1 2026, with combined ratios exceeding 100% across specialty and commercial lines. Specialty lines, historically profitable, suffered from reserve strengthening and higher claims in professional liability, raising concerns about underwriting discipline. Investment income offset underwriting losses, but reliance on portfolio returns underscores the need for remediation in core insurance operations.
- CNA Financial Q1 Earnings Miss Estimates on Weak Underwriting Income
May 5, 2026
CNA Financial Corporation CNA reported first-quarter 2026 core earnings of 83 cents per share, which missed the Zacks Consensus Estimate by 44.3%. The bottom line decreased 19.4% year over year.
The quarterly results of CNA reflected higher claims and expenses, a sharp deterioration in the combined ratio, which pressured underwriting income. These factors were partially offset by modest premium growth, improved investment income and decreased catastrophe losses.
Behind Q1 Headlines
Total operating revenues of CNA Financial were $3.3 billion, up 2.2% year over year, driven by higher premiums and net investment income. The top line missed the Zacks Consensus Estimate by 0.3%.
CNA Financial Corporation Price, Consensus and EPS SurpriseCNA Financial Corporation Price, Consensus and EPS Surprise
CNA Financial Corporation price-consensus-eps-surprise-chart | CNA Financial Corporation Quote
Net written premiums of Property & Casualty Operations increased 1% year over year to $2.7 billion. The new business grew 3% to $581 million.
Net investment income rose 1% year over year to $610 million. The increase was supported by higher fixed income returns, partly offset by weaker performance in limited partnerships and equities. Our estimate for net investment income was $640 million. The Zacks Consensus Estimate was pegged at $640.5 million.
Total claims, benefits and expenses increased 4% to $3.4 billion, primarily due to higher insurance claims and policyholders’ benefits, amortization of deferred acquisition costs, other operating expenses and interest expenses. Our estimate was $3.2 billion.
Catastrophe losses were $88 million, narrower than the loss of $96 million in the year-ago quarter. Underlying underwriting income declined 28% year over year to $144 million.
The combined ratio deteriorated 380 basis points (bps) year over year to 102.2. The Zacks Consensus Estimate was pegged at 92.5, while our estimate was 92.5.
Q1 Segment Results
Specialty’s net written premiums decreased 1% year over year to $834 million. Our estimate was $875.5 million. The combined ratio deteriorated 760 bps to 102.7. The Zacks Consensus Estimate was pegged at 90.3.
Commercial’s net written premiums decreased 1% year over year to $1.5 billion. Our estimate was $1.5 billion. The combined ratio deteriorated 240 bps to 103.5. The Zacks Consensus Estimate was pegged at 94.2.
International’s net written premiums increased 16% year over year to $308 million. Our estimate was $254.4 million. The combined ratio deteriorated 50 bps to 95.9. The Zacks Consensus Estimate was pegged at 91.4.
Life & Group’s net earned premiums were $103 million, down 2.8% year over year. Our estimate was $101.8 million. The core loss was $9 million versus income of $6 million earned in the year-ago quarter. Core loss increased primarily due to unfavorable persistency experience.
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Corporate & Others’ core loss of $17 million was narrower than the loss of $36 million incurred in the year-earlier quarter.
CNA’s Financial Update
The core return on equity contracted 200 bps year over year to 7.2%. Book value per share was $40.13, down 6.5% from the year-end 2025 level.
Statutory capital and surplus for the Combined Continental Casualty Companies were $11.1 billion, down 6.5% from the 2025-end level.
Net cash flow provided by operating activities decreased 38.4% to $393 million year over year.
CNA’s Dividend Update
CNA Financial’s board of directors approved a quarterly dividend of 48 cents per share. The dividend will be paid out on June 4 to its shareholders of record as of May 18, 2026.
CNA’s Zacks Rank
CNA currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Some Other P&C Insurers
The Travelers Companies, Inc. TRV reported first-quarter 2026 core income of $7.71 per share, which beat the Zacks Consensus Estimate by 10.5%. The bottom line surged fourfold year over year. Travelers’ total revenues remained flat from the year-ago quarter to $11.9 billion. The top-line figure, however, missed the Zacks Consensus Estimate by 3.7%.
Net written premiums increased 2% year over year to a record $10.3 billion, driven by strong growth across Business Insurance and Bond & Specialty Insurance segments. Net investment income increased 8.4% year over year to $1 billion. The figure matched the Zacks Consensus Estimate.
W.R. Berkley Corporation WRB reported first-quarter 2026 operating income of $1.30 per share, which beat the Zacks Consensus Estimate by 15%. The bottom line increased 28.7% year over year.
Total revenues were $ 3.7 billion, up 5% year over year, driven by higher net premiums earned, improved net investment income, higher revenues from non-insurance businesses and increased other income. The top-line figure, however, missed the Zacks consensus Estimate by 0.28%. W.R. Berkley’s net premiums written were about $3.2 billion, up 1.3% year over year. The figure beat our estimate as well as the Zacks Consensus Estimate of $3.18 billion.
RLI Corp. RLI reported first-quarter 2026 operating earnings of 83 cents per share, which missed the Zacks Consensus Estimate by 2.3%. The bottom line decreased 13.2% from the prior-year quarter.
Operating revenues for the reported quarter were $454 million, up 4.4% year over year, driven by higher net premiums earned and net investment income. The top-line figure beat the Zacks Consensus Estimate by 1%. Gross premiums written increased 3% year over year to $503.9 million, driven by strong growth in the casualty segment (up 10%). Our estimate was $523.9 million.
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- CNA Financial Q1 Earnings Miss Estimates on Weak Underwriting Income
May 5, 2026 · zacks.com
CNA's Q1 earnings miss estimates as higher claims and a weaker combined ratio pressure underwriting, offsetting modest premium and investment income gains.
- Atos and CNA strengthen long-term strategic partnership through new multi-year infrastructure services agreement
May 5, 2026 · globenewswire.com
Press Release Atos and CNA strengthen long-term strategic partnership through new multi-year infrastructure services agreement Irving, Texas, USA – May 5, 2026 – Atos, a global leader in AI-powered digital transformation, today announced the extension and expansion of its long-standing strategic partnership with CNA, one of the largest U.S. commercial property and casualty insurance companies, through a new multi-year infrastructure and cybersecurity services agreement with an expected total value of up to approximately $500 million over the duration of the core agreement, inclusive of potential future extensions and additional services. The agreement marks a significant milestone in the relationship between CNA and Atos, reinforcing nearly a decade of collaboration built on trust, service excellence, and a shared commitment to operational resilience and innovation.
