- GE Gains From Strength in Commercial Engines Unit: A Sign for More Upside?
May 13, 2026
GE Aerospace GE is witnessing persistent strength in its Commercial Engines & Services segment. In first-quarter 2026, revenues from the segment increased 34% year over year to $8.9 billion. Also, in the quarter, the segment’s orders witnessed an increase of 93% year over year, which totaled $17.3 billion.
A growing installed base and higher utilization of engine platforms, particularly in commercial & defense sectors, have set the stage for the company’s long-term growth. GE continues to experience strong orders for LEAP, GEnx & GE9X engines and services, supported by growth in air traffic, fleet renewal and expansion activities.
In the first quarter, the company received orders for more than 650 commercial engines, including commitments from American Airlines, United Airlines and Delta Airlines. It also entered into a long-term materials agreement to support Ryanair’s fleet of about 2,000 CFM56 and LEAP engines.
During 2025, the company secured more than 500 engine wins at the Dubai Airshow, including deals from flydubai for GEnx engines and Riyadh Air for LEAP-1A engines. GE Aerospace also inked a deal with Qatar Airways to supply more than 400 GE9X and GEnx engines. It represents the largest widebody engine deal in GE’s history.
Solid demand for commercial engines and aftermarket services, with strength in air travel, will augur well for the segment in the quarters ahead. For 2026, adjusted revenues from the commercial engines and services unit are expected to experience mid-teens growth.
GE's Peers in the Aerospace Market
Among its major peers, Howmet Aerospace Inc. HWM is benefiting from solid momentum in the commercial aerospace market. Revenues from Howmet’s commercial aerospace market increased 20% year over year (exceeding $1.1 billion) in the first quarter of 2026, constituting 53% of its business. The sustained strength was attributed to increasing demand for Howmet’s engine spares and a record backlog for new, more fuel-efficient aircraft.
Its another peer, RTX Corporation RTX is benefiting from strength in the commercial aerospace market, with growth in both aftermarket and OEM verticals. RTX reported 10% organic sales growth in the first quarter, driven by solid momentum in the Collins Aerospace and Pratt & Whitney segments. Rising aircraft utilization and demand for sustainable technologies are supporting RTX Corp.’s growth.
GE's Price Performance, Valuation and Estimates
Shares of GE Aerospace have surged 33.2% in the past year compared with the industry’s growth of 7.9%.
Story Continues
Zacks Investment Research
Image Source: Zacks Investment Research
From a valuation standpoint, GE is trading at a forward price-to-earnings ratio of 37.70X, above the industry’s average of 32.27X. GE Aerospace carries a Value Score of D.Zacks Investment Research
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GE’s 2026 earnings has up 0.3% over the past 60 days.Zacks Investment Research
Image Source: Zacks Investment Research
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Howmet Aerospace Inc. (HWM) : Free Stock Analysis Report
RTX Corporation (RTX) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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- Delta Air Lines to Present at the TD Cowen Future of the Consumer Conference
May 13, 2026
ATLANTA, May 13, 2026 /PRNewswire/ -- Delta Air Lines (NYSE:DAL) will present at the TD Cowen Future of the Consumer Conference at 10:15 a.m. ET on Wednesday, June 3rd, 2026.Delta Air Lines and the Delta Connection carriers offer service to nearly 370 destinations on six continents. For more information visit news.delta.com. (PRNewsFoto/Delta Air Lines)
A live webcast of this event will be available at ir.delta.com and an online replay will be available shortly after the webcast is complete.
About Delta Air Lines
No one better connects the world
Through exceptional service and the power of innovation, Delta Air Lines (NYSE: DAL) never stops looking for ways to make every trip feel tailored to every customer.
There are 100,000 Delta people leading the way to deliver a world-class customer experience on up to 5,500 daily Delta and Delta Connection flights to more than 300 destinations on six continents, connecting people to places and to each other.
Delta served more than 200 million customers in 2025 – safely, reliably and with industry-leading customer service innovation – and was recognized by J.D. Power in 2025 year for being No. 1 in Premium Economy Passenger Satisfaction. The airline also was recognized as the top U.S. airline by the Wall Street Journal and as North America's most on-time airline in 2025 from Cirium.
We remain committed to ensuring that the future of travel is connected, personalized and enjoyable. Our people's genuine, enduring motivation is to make every customer feel welcomed and cared for across every point of their journey with us.Cision
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- Delta Air Lines to Present at the TD Cowen Future of the Consumer Conference
May 13, 2026 · gurufocus.com
Delta Air Lines to Present at the TD Cowen Future of the Consumer Conference PR Newswire ATLANTA, May 13, 2026
- Delta Air Lines to Present at the TD Cowen Future of the Consumer Conference
May 13, 2026 · prnewswire.com
ATLANTA, May 13, 2026 /PRNewswire/ -- Delta Air Lines (NYSE:DAL) will present at the TD Cowen Future of the Consumer Conference at 10:15 a.m. ET on Wednesday, June 3rd, 2026.
- DELTA AIR LINES TO PRESENT AT THE TD COWEN FUTURE OF THE CONSUMER CONFERENCE
May 13, 2026
ATLANTA, MAY 13, 2026 /PRNEWSWIRE/ -- DELTA AIR LINES (NYSE:DAL) WILL PRESENT AT THE TD COWEN FUTURE OF THE CONSUMER CONFERENCE AT 10:15 A.M. ET ON WEDNESDAY, JUNE 3RD, 2026.
- Spirit's Big Fail: Oversized Planes Are Breaking Low-Cost Airlines
May 13, 2026 · forbes.com
After Spirit Airlines vanished from the skies, its not-quite-sudden collapse raised questions about why the successful low-cost model, born in the U.S. airline industry, is failing.
- Stocks Retreat as Oil Prices Surge and Inflation Accelerates
May 12, 2026
The S&P 500 Index ($SPX) (SPY) today is down -0.74%, the Dow Jones Industrial Average ($DOWI) (DIA) is down -0.55%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -1.45%. June E-mini S&P futures (ESM26) are down -0.74%, and June E-mini Nasdaq futures (NQM26) are down -1.43%.
Stock indexes are under pressure today as weakness in technology stocks weighs on the overall market, following Monday’s rally that pushed the S&P 500 and Nasdaq 100 to new record highs. The ongoing stalemate in the Middle East between the US and Iran is keeping the Strait of Hormuz closed, weighing on market sentiment, and pushing crude oil prices and bond yields higher. The 10-year T-note yield is up +4 bp to 4.45%.Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Stock indexes added to their losses today on signs of accelerating inflation after the US Apr CPI rose 3.8% y/y, stronger than the 3.7% y/y expected and the largest increase in almost 3 years. Also, Apr core CPI rose +2.8% y/y, stronger than expectations of +2.7% y/y and the largest increase in six months.
Hawkish comments today from Chicago Fed President Austan Goolsbee were bearish for stocks and bonds, as he said the worst part of today's April CPI report is services inflation and that "the Fed has got to be thinking about how do we break the chain of escalating inflation."
In the latest developments in the Middle East, President Trump called Iran's response to his peace proposal a "piece of garbage" and said that the current ceasefire was on "life support."
WTI crude oil prices (CLM26) are up more than 3% today, as President Trump cast doubt over the ceasefire with Iran, saying the truce was on “massive life support,” prolonging the closure of the Strait of Hormuz. The strait remains essentially closed, as about a fifth of the world’s oil and liquefied natural gas transits through the strait. Goldman Sachs estimates that the current disruption has drawn down nearly 500 million bbl from global crude stockpiles, with the drawdown potentially reaching 1 billion bbl by June.
The markets are discounting a 4% chance of a -25 bp FOMC rate cut at the next FOMC meeting on June 16-17.
Earnings reports thus far in this reporting season have been supportive of stocks. As of today, 83% of the 450 S&P 500 companies that reported Q1 earnings have beaten estimates. Q1 S&P 500 earnings are projected to climb +12% y/y, according to Bloomberg Intelligence. Stripping out the technology sector, Q1 earnings are projected to increase around +3%, the weakest in two years.
Overseas stock markets are mixed today. The Euro Stoxx 50 is down -1.19%. China's Shanghai Composite fell from a 10-year high and closed down -0.25%. Japan's Nikkei Stock Average closed up +0.52%.
Interest Rates
June 10-year T-notes (ZNM6) today are down -10 ticks. The 10-year T-note yield is up +3.9 bp to 4.453%. Jun T-notes fell to a 1-week low today, and the 10-year T-note yield rose to a 1-week high of 4.456%. T-notes are under pressure today amid a +3% surge in WTI crude oil prices, which is boosting inflation expectations. Also, today’s stronger-than-expected US April CPI reports signal accelerating inflation, a bearish factor for T-notes. In addition, supply pressures are weighing on T-notes as the Treasury will auction $42 billion of 10-year T-notes later today as part of this week’s $125 billion quarterly refunding. T-notes added to their losses today when Chicago Fed President Austan Goolsbee said the US has an inflation problem.
European government bond yields are moving higher today. The 10-year German Bund yield rose to a 1.5-week high of 3.105% and is up +5.7 bp to 3.097%. The 10-year UK gilt yield surged to a 17-year high of 5.135% and is up +10.0 bp to 5.098%.
The German May ZEW survey expectation of economic growth unexpectedly rose +7.0 to -10.2, stronger than expectations of a decline to -19.5.
ECB Governing Council member Christodoulos Patsalides said, "As things stand, inflation risks are worsening," which points to an ECB interest rate hike in June.
Swaps are discounting an 85% chance of a +25 bp ECB rate hike at its next policy meeting on June 11.
US Stock Movers
Chipmakers are on the defensive today, giving back some of Monday’s sharp gains as the AI infrastructure rally cools. Qualcomm (QCOM) is down more than -9% to lead losers in the S&P 500 and Nasdaq 100, and Sandisk (SNDK) and Intel (INTC) are down more than -7%. Also, Micron Technology (MU) is down more than -5%, and Western Digital (WDC), Applied Materials (AMAT), Seagate Technology Holdings Plc (STX), Marvell Technology (MRVL), and Lam Research (LRCX) are down more than -4%. In addition, Advanced Micro Devices (AMD), ASML Holding NV (ASML), KLA Corp (KLAC), and NXP Semiconductors NV (NXPI) are down more than -3%.
Airline stocks and cruise line operators are sliding today amid a +3% increase in WTI crude oil prices, which are boosting fuel costs and undermining the companies' profitability prospects. American Airlines Group (AAL), Alaska Air Group (ALK), Southwest Airlines (LUV), and Carnival (CCL) are down more than -2%. Also, Royal Caribbean Cruises Ltd (RCL), Norwegian Cruise Line Holdings (NCLH), United Airlines Holdings (UAL), and Delta Air Lines (DAL) are down more than -1%.
Power Solutions International (PSIX) is down more than -34% after reporting Q1 revenue of $128.6 million, well below the consensus of $161 million.
AST SpaceMobile (ASTS) is down more than -12% after reporting a Q1 net loss of -$191.0 million, a wider loss than expectations of -$76.3 million.
Hims & Hers Health (HIMS) is down more than -11% after reporting Q1 revenue of $608.1 million, weaker than the consensus of $617.5 million, and forecasting full-year adjusted Ebitda of $275 million to $350 million, the midpoint below the consensus of $319.3 million.
Webtoon Entertainment (WBTN) is down more than -8% after forecasting Q2 revenue of $332 million to $342 million, well below the consensus of $359.9 million.
ON Holding (ONON) is down more than -6% after forecasting full-year net sales at constant currencies of at least +23%, weaker than the consensus of +24.6%.
Gitlab (GTLB) is down by more than -5% after announcing plans to cut jobs and make operational changes, moves Raymond James said will be challenging.
West Pharmaceutical Services (WST) is down more than -3% after saying it has experienced a material cybersecurity attack that has disrupted operations globally.
PACS Group (PACS) is up more than +20% after reporting Q1 revenue of $1.42 billion, stronger than the consensus of $1.36 billion, and raising its full-year Ebitda forecast to $605 million-$625 million from a previous forecast of $555 million-$575 million, well above the consensus of $567 million.
Zebra Technologies (ZBRA) is up more than +17% to lead gainers in the S&P 500 after reporting Q1 adjusted EPS of $4.75, stronger than the consensus of $4.25, and raising its full-year adjusted EPS forecast to $18.30 to $18.70 from a previous forecast of $17.70 to $18.30.
Wendy’s (WEN) is up more than +14% after the Financial Times reported that Trian Fund Management is seeking investor backing for a bid to take the company private.
Venture Global (VG) is up more than +11% after reporting Q1 adjusted net income of $488.0 million, well above the consensus of $337.2 million.
Qnity Electronics (Q) is up more than +4% after reporting Q1 net sales of $1.42 billion, above the consensus of $1.27 billion.
Steris Plc (STE) is up more than +2% after forecasting 202y adjusted EPS from continuing operations of $11.10 to $11.30, above the consensus of $11.08.
Earnings Reports(5/12/2026)
Aramark (ARMK), Karman Holdings Inc (KRMN), Millicom International Cellular SA (TIGO), On Holding AG (ONON), Qnity Electronics Inc (Q), Ralliant Corp (RAL), Under Armour Inc (UAA), Zebra Technologies Corp (ZBRA). On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
- ITC Probe Puts Joby Delta Partnership And US eVTOL Plans At Risk
May 12, 2026
Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge.
Delta Air Lines has warned that a US International Trade Commission investigation into Joby Aviation could threaten their eVTOL partnership. The probe centers on Archer Aviation’s patent infringement allegations against Joby and could result in Joby’s aircraft being removed from the US market. The investigation introduces an additional layer of legal and regulatory risk for Joby Aviation’s commercialization plans.
For investors tracking Joby Aviation (NYSE:JOBY), this ITC case lands at a time when the stock price is $10.74 and recent returns have been mixed. The stock is up 21.2% over the past week and 28.8% over the past month, while the year to date performance is down 25.2%. Over longer periods, the stock is up 53.2% over the past year, 118.7% over three years and 8.3% over five years.
This ITC investigation directly targets Joby’s ability to operate its electric aircraft in its core US market, which is central to its partnership with Delta. Investors may want to pay close attention to case milestones, any responses from Joby and Delta, and whether the parties reach a settlement that could limit the risk of US market exclusion.
Stay updated on the most important news stories for Joby Aviation by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Joby Aviation.NYSE:JOBY Earnings & Revenue Growth as at May 2026
📰 Beyond the headline: 2 risks and 1 thing going right for Joby Aviation that every investor should see.
The ITC investigation hits right at the heart of Joby Aviation’s commercial plan with Delta, which focuses on premium airport and urban routes similar to its recent JFK to Manhattan trial flights. If Archer’s patent claims lead to import or sales restrictions in the US, that could affect aircraft availability for Delta-linked services and weaken one of Joby’s highest profile partnerships just as the company is moving from trial operations toward paid service. At the same time, Delta’s argument that a Joby exclusion would reduce competition and hand Archer an effective monopoly underlines how concentrated the US eVTOL market currently is, with relatively few scaled contenders compared with broader aviation where Boeing and Airbus dominate. For investors, this legal overhang now sits alongside Joby’s existing execution risks around FAA certification, manufacturing scale up and funding ongoing losses, given the first quarter net loss of US$109.95 million. Any resolution that preserves Joby’s ability to supply aircraft into the US, whether through a legal win, licensing deal or settlement, will be important for assessing how durable the Delta partnership and similar agreements can be.
Story Continues
How This Fits Into The Joby Aviation Narrative
The focus on protecting access to the US market lines up with the narrative that Joby is building an integrated air taxi network with partners like Delta and Blade, using high visibility routes to support early adoption. The risk of product exclusion from the US challenges the assumption that Joby can steadily ramp operations once certification is complete, and could delay or complicate utilization of the manufacturing footprint in Marina and Dayton. The current narrative highlights certification, autonomy and hydrogen propulsion, but it does not fully capture how patent disputes and ITC decisions could influence long term returns on R&D and capital spending.
Knowing what a company is worth starts with understanding its story. Check out one of the top narratives in the Simply Wall St Community for Joby Aviation to help decide what it's worth to you.
The Risks and Rewards Investors Should Consider
⚠️ Legal and regulatory risk from Archer’s patent claims and the ITC process, which could restrict Joby’s ability to sell or operate aircraft in the US market. ⚠️ Execution risk around certification and commercialization, with Joby still reporting losses and analysts flagging dilution and the lack of near term profitability forecasts as key concerns. 🎁 Progress toward commercial operations, including the first FAA conforming flight, point to point JFK to Manhattan flights and a growing partnership base with Delta and Air Space Intelligence. 🎁 Strong liquidity and ongoing partnerships may give Joby time to work through certification, manufacturing scale up and legal challenges while continuing to build route networks and government related work.
What To Watch Going Forward
From here, keep an eye on two tracks at once. On the legal side, watch for ITC milestones, any preliminary findings on Archer’s patent claims and signals around potential settlements or licensing arrangements that could keep Joby’s aircraft in the US market. On the commercial side, track whether Joby and Delta reaffirm or adjust the scope or timing of their partnership, and whether Joby continues to report progress on FAA certification, manufacturing capacity and early route build out in markets like New York. How these threads evolve together will shape how central the Delta relationship remains in Joby’s plan and how much weight investors place on US versus international routes.
To ensure you're always in the loop on how the latest news impacts the investment narrative for Joby Aviation, head to the community page for Joby Aviation to never miss an update on the top community narratives.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include JOBY.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- U.S.-Saudi Business Council Unveils Powerhouse Board of Directors to Accelerate Bilateral Economic Growth
May 12, 2026
WASHINGTON, May 12, 2026 /PRNewswire/ -- The U.S.–Saudi Business Council (USSBC) today announced the appointment of its significantly expanded and reconstituted Board of Directors, featuring an unprecedented lineup of global industry leaders. This strategic move underscores the Council's revitalized mission to deepen and diversify economic ties between the United States and Saudi Arabia by leveraging expertise from critical sectors shaping the global economy.
Co-Chaired by Lubna Olayan, Chair of the Corporate Board of the Olayan Group and Jane Fraser, Chair and CEO of Citi, the new Board brings together influential figures across finance, energy, technology, travel, defense, infrastructure, consumables and advanced industry. Their collective leadership will uniquely position the Council to drive innovation, investment and strategic partnerships aligned with U.S. economic priorities, Saudi Arabia's Vision 2030 and the evolving global landscape.
The newly appointed U.S. members include:
Ruth Porat, President and Chief Investment Officer of Alphabet and Google Brian Moynihan, Chair and CEO of Bank of America Brendan Bechtel, Chairman and CEO of Bechtel Corporation Larry Fink, Chairman and CEO of BlackRock Mike Wirth, Chair and CEO of Chevron Chuck Robbins, Chair and CEO of Cisco James Quincey, Executive Chair of The Coca-Cola Company Noel Wallace, Chair, President and CEO of Colgate-Palmolive Ed Bastian, CEO of Delta Air Lines Jim Fitterling, Chair and CEO of Dow Darren Woods, Chair and CEO of ExxonMobil Jenny Johnson, CEO of Franklin Templeton Chris Nassetta, President and CEO of Hilton Vimal Kapur, Chair and CEO of Honeywell James Taiclet, Chair, President and CEO of Lockheed Martin
They are joined by leaders from key sectors driving Saudi Arabia's economic transformation, including:
Tareq Amin, CEO of Humain John Pagano, CEO of Red Sea Global and Managing Director of AlUla Development Company Kamal Bahamdan, CEO of Safanad Tareq AlSadhan, CEO of Saudi National Bank Abdullah Al Zamil, Chair of SENAAT (formerly Zamil Industries)
The Board also retains long-serving members Amin Nasser, President and CEO of Aramco, Robert Wilt, CEO of Ma'aden, Rami Al Turki, President and CEO of Alturki Holding, and Charles Hallab, President and CEO of the U.S.-Saudi Business Council.
"This Board represents an extraordinary alignment of global leadership at a pivotal moment in the bilateral relationship, one that is consistent with a reinvigorated and reimagined role for the Council in the U.S.-Saudi partnership," said Charles Hallab, President & CEO of the U.S.–Saudi Business Council. "Their collective expertise across areas critical to both economies positions the Council to advance bilateral trade, investment, and business collaboration like never before. We are very excited for the next chapter, and we are also deeply grateful to our long-serving Board members for their commitment and contribution to the Council's mission over the years."
Story Continues
"This Board speaks to the depth and maturity of the U.S.–Saudi economic relationship," said Lubna Olayan, Chair of The Olayan Group. "We look forward to translating this partnership into a meaningful collaboration, and long-term value for both economies."
"The caliber of leaders joining our board signals the significant momentum of the U.S.–Saudi business partnership," said Jane Fraser, Chair and CEO of Citi. "This is an important inflection point in the Council's work to strengthen economic ties between the U.S. and Saudi Arabia and advance our shared long-term growth."
The formation of this Board comes at a time of accelerating economic engagement between the United States and Saudi Arabia. With a refined and revitalized mission, the U.S.–Saudi Business Council is reinforcing its role as a leading platform for private-sector leadership and engagement—strengthening connectivity between U.S. and Saudi businesses, enabling strategic partnerships, and supporting the expansion of bilateral trade and investment.
About the U.S.-Saudi Business Council: The U.S.-Saudi Business Council serves as the principal forum for U.S.–Saudi commercial engagement, facilitating access and dialogue for its member companies with key American and Saudi institutions and policymakers to advance bilateral business, trade and investment.
Media Contact:
Ali Alwazir
aalwazir@ussaudi.orgCision
View original content:https://www.prnewswire.com/news-releases/ussaudi-business-council-unveils-powerhouse-board-of-directors-to-accelerate-bilateral-economic-growth-302769908.html
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- Stocks Pressured by Rising Oil Prices and Accelerating Inflation
May 12, 2026
The S&P 500 Index ($SPX) (SPY) today is down -0.44%, the Dow Jones Industrial Average ($DOWI) (DIA) is down -0.74%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.72%. June E-mini S&P futures (ESM26) are down -0.38%, and June E-mini Nasdaq futures (NQM26) are down -0.62%.
Stock indexes are under pressure today as weakness in technology stocks weighs on the overall market, following Monday’s rally that pushed the S&P 500 and Nasdaq 100 to new record highs. The ongoing stalemate in the Middle East between the US and Iran is keeping the Strait of Hormuz closed, weighing on market sentiment, and pushing crude oil prices and bond yields higher. The 10-year T-note yield is up +4 bp to 4.45%.Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Stock indexes added to their losses today on signs of accelerating inflation after the US Apr CPI rose 3.8% y/y, stronger than the 3.7% y/y expected and the largest increase in almost 3 years. Also, Apr core CPI rose +2.8% y/y, stronger than expectations of +2.7% y/y and the largest increase in six months.
In the latest developments in the Middle East, President Trump called Iran's response to his peace proposal a "piece of garbage" and said that the current ceasefire was on "life support."
WTI crude oil prices (CLM26) are up more than 3% today, as President Trump cast doubt over the ceasefire with Iran, saying the truce was on “massive life support,” prolonging the closure of the Strait of Hormuz. The strait remains essentially closed, as about a fifth of the world’s oil and liquefied natural gas transits through the strait. Goldman Sachs estimates that the current disruption has drawn down nearly 500 million bbl from global crude stockpiles, with the drawdown potentially reaching 1 billion bbl by June.
The markets are discounting a 4% chance of a -25 bp FOMC rate cut at the next FOMC meeting on June 16-17.
Earnings reports thus far in this reporting season have been supportive of stocks. As of today, 83% of the 450 S&P 500 companies that reported Q1 earnings have beaten estimates. Q1 S&P 500 earnings are projected to climb +12% y/y, according to Bloomberg Intelligence. Stripping out the technology sector, Q1 earnings are projected to increase around +3%, the weakest in two years.
Overseas stock markets are mixed today. The Euro Stoxx 50 is down -0.97%. China's Shanghai Composite fell from a 10-year high and closed down -0.25%. Japan's Nikkei Stock Average closed up +0.52%.
Interest Rates
June 10-year T-notes (ZNM6) today are down -8 ticks. The 10-year T-note yield is up +3.5 bp to 4.449%. T-notes are under pressure today amid a +3% surge in WTI crude oil prices, which is boosting inflation expectations. Also, today’s stronger-than-expected US April CPI reports signal accelerating inflation, a bearish factor for T-notes. In addition, supply pressures are weighing on T-notes as the Treasury will auction $42 billion of 10-year T-notes later today as part of this week’s $125 billion quarterly refunding.
European government bond yields are moving higher today. The 10-year German Bund yield rose to a 1.5-week high of 3.098% and is up +4.6 bp to 3.086%. The 10-year UK gilt yield surged to a 17-year high of 5.135% and is up +10.9 bp to 5.107%.
The German May ZEW survey expectation of economic growth unexpectedly rose +7.0 to -10.2, stronger than expectations of a decline to -19.5.
ECB Governing Council member Christodoulos Patsalides said, "As things stand, inflation risks are worsening," which points to an ECB interest rate hike in June.
Swaps are discounting an 84% chance of a +25 bp ECB rate hike at its next policy meeting on June 11.
US Stock Movers
Chipmakers are on the defensive today, giving back some of Monday’s sharp gains as the AI infrastructure rally cools. Qualcomm (QCOM) is down more than -6% to lead losers in the Nasdaq 100, and Sandisk (SNDK) and Micron Technology (MU) are down more than -3%. Also, Western Digital (WDC), Marvell Technology (MRVL), Lam Research (LRCX), KLA Corp (KLAC), and NXP Semiconductors NV (NXPI) are down more than -2%.
Airline stocks and cruise line operators are sliding today amid a +3% increase in WTI crude oil prices, which are boosting fuel costs and undermining the companies' profitability prospects. Alaska Air Group (ALK) is down more than -2%. Also, American Airlines Group (AAL), Royal Caribbean Cruises Ltd (RCL), Carnival (CCL), Norwegian Cruise Line Holdings (NCLH), United Airlines Holdings (UAL), Southwest Airlines (LUV), and Delta Air Lines (DAL) are down more than -1%.
Power Solutions International (PSIX) is down more than -36% after reporting Q1 revenue of $128.6 million, well below the consensus of $161 million.
Hims & Hers Health (HIMS) is down more than -12% after reporting Q1 revenue of $608.1 million, weaker than the consensus of $617.5 million, and forecasting full-year adjusted Ebitda of $275 million to $350 million, the midpoint below the consensus of $319.3 million.
AST SpaceMobile (ASTS) is down more than -9% after reporting a Q1 net loss of -$191.0 million, a wider loss than expectations of -$76.3 million.
Webtoon Entertainment (WBTN) is down more than -8% after forecasting Q2 revenue of $332 million to $342 million, well below the consensus of $359.9 million.
Gitlab (GTLB) is down by more than -8% after announcing plans to cut jobs and make operational changes, moves Raymond James said will be challenging.
West Pharmaceutical Services (WST) is down more than -6% to lead losers in the S&P and said it has experienced a material cybersecurity attack that has disrupted operations globally.
ON Holding (ONON) is down more than -4% after forecasting full-year net sales at constant currencies of at least +23%, weaker than the consensus of +24.6%.
PACS Group (PACS) is up more than +27% after reporting Q1 revenue of $1.42 billion, stronger than the consensus of $1.36 billion, and raising its full-year Ebitda forecast to $605 million-$625 million from a previous forecast of $555 million-$575 million, well above the consensus of $567 million.
Zebra Technologies (ZBRA) is up more than +15% to lead gainers in the S&P 500 after reporting Q1 adjusted EPS of $4.75, stronger than the consensus of $4.25, and raising its full-year adjusted EPS forecast to $18.30 to $18.70 from a previous forecast of $17.70 to $18.30.
Wendy’s (WEN) is up more than +11% after the Financial Times reported that Trian Fund Management is seeking investor backing for a bid to take the company private.
Venture Global (VG) is up more than +7% after reporting Q1 adjusted net income of $488.0 million, well above the consensus of $337.2 million.
Steris Plc (STE) is up more than +2% after forecasting 202y adjusted EPS from continuing operations of $11.10 to $11.30, above the consensus of $11.08.
Qnity Electronics (Q) is up more than +1% after reporting Q1 net sales of $1.42 billion, above the consensus of $1.27 billion.
Earnings Reports(5/12/2026)
Aramark (ARMK), Karman Holdings Inc (KRMN), Millicom International Cellular SA (TIGO), On Holding AG (ONON), Qnity Electronics Inc (Q), Ralliant Corp (RAL), Under Armour Inc (UAA), Zebra Technologies Corp (ZBRA). On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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