- Stock Market News for May 12, 2026
May 12, 2026
Wall Street closed slightly higher on Monday, driven by energy and industrial stocks. Investors continued buying technology and AI-linked stocks even as inflation-related concerns remained regarding the U.S.-Iran diplomatic stalemate. All three benchmark indexes ended in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.2%, or 95.31 points, to close at 49,704.47. Seventeen components of the 30-stock index ended in negative territory, while 13 ended in positive.
The tech-heavy Nasdaq Composite added 27.05 points, or 0.1%, to close at 26,274.13.
The S&P 500 gained 13.91 points, or 0.2%, to close at 7,412.84. Six of the 11 broad sectors of the benchmark index closed in the green. The Energy Select Sector SPDR (XLE), the Materials Select Sector SPDR (XLB) and the Industrials Select Sector SPDR (XLI) advanced 2.6%, 1.4% and 1%, respectively, while the Communication Services Select Sector SPDR (XLC) declined 2.3%.
The fear gauge CBOE Volatility Index (VIX) increased 6.9% to 18.38. A total of 21.4 billion shares were traded on Monday, higher than the last 20-session average of 18 billion. Decliners outnumbered advancers by a 1.08-to-1 ratio on the NYSE, and by a 1.27-to-1 ratio on the Nasdaq.
Wall Street Edges Higher Despite Iran-Driven Oil Fears
U.S. stock markets posted marginal gains on Monday, even as rising geopolitical tensions kept investors cautious. Markets were rattled after President Donald Trump dismissed Iran’s response to a U.S. peace proposal, triggering a sharp rise in crude oil prices. Investors worried that a prolonged conflict in the Middle East could keep inflation elevated, especially through higher gasoline prices that continue to pressure consumers.
Despite these concerns, the three major benchmark indexes managed to finish modestly higher as investors continued pouring money into energy and artificial intelligence (AI)-related stocks. Energy companies benefited directly from the spike in oil prices, while technology and semiconductor firms attracted buying interest on expectations that AI-driven demand will remain strong throughout 2026.
The market also drew support from resilient corporate earnings and confidence that the U.S. economy can withstand temporary geopolitical shocks. However, trading remained cautious as investors balanced optimism surrounding AI growth against fears that persistent inflation could delay future interest-rate cuts by the Federal Reserve.
Oil prices climbed nearly 3% on Monday after President Donald Trump warned the Iran ceasefire was “on life support,” raising fears over prolonged disruption in the Strait of Hormuz. Brent crude settled at $104.21 per barrel, while WTI ended at $98.07 per barrel after both benchmarks touched multi-month intraday highs.
Story Continues
Consequently, shares of Exxon Mobil Corporation XOM and Phillips 66 PSX added 3.5% and 2.2%, respectively. Both currently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
AI Enthusiasm Supports Wall Street Gains
Wall Street also drew momentum from investor optimism surrounding AI that continued to boost technology and semiconductor stocks. Traders remained confident that strong demand for AI infrastructure, advanced chips and cloud computing would drive earnings growth in 2026. The upbeat sentiment helped offset concerns over rising oil prices and geopolitical tensions linked to Iran. Investors largely favored growth and AI-related shares, keeping the Nasdaq and other benchmark indexes in positive territory despite broader market uncertainty.
Economic Data
Per the National Association of Realtors, Existing Home Sales for April came in at 4.02 million units sold against a consensus of 4.11 million units. The number for March was revised up to 4.01 million units sold from the previously reported 3.98 million units.
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- U.S. to loan more crude from Strategic Petroleum Reserve as part of IEA release
May 12, 2026
[Sunset Over Pumpjack Silhouette and Oil Barrel With Copy Space]
ronniechua/iStock via Getty Images
The U.S. government will loan about 53.3M barrels of crude from the Strategic Petroleum Reserve to nine companies as part of its contribution to the International Energy Agency's coordinated action to stabilize global oil supplies.
The companies that were granted contract awards for exchange include Exxon Mobil (XOM [https://seekingalpha.com/symbol/XOM]), BP (BP [https://seekingalpha.com/symbol/BP]), Marathon Petroleum (MPC [https://seekingalpha.com/symbol/MPC]) and Phillips 66 (PSX [https://seekingalpha.com/symbol/PSX]).
The Department of Energy said it is securing ~28% return premium through this exchange, representing 15.1M barrels. It added [https://www.energy.gov/hgeo/opr/articles/energy-department-awards-contracts-strategic-petroleum-reserve-advancing] that companies may begin scheduling deliveries immediately.
The U.S. has committed to release 172M barrels from the SPR as part of the broader IEA agreement to stabilize supplies amid the Iran war. The DOE already loaned about 80M barrels.
The SPR held [https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WCSSTUS1&f=W] about 398M barrels of crude oil, according to the Energy Information Administration, equivalent to around four days of global oil consumption.
Oil companies borrowed only around 58% of the 92.5M barrels that the DOE offered to loan from the SPR last month, _Reuters _reported [https://www.reuters.com/business/energy/us-loan-533-million-barrels-oil-strategic-petroleum-reserve-2026-05-11/].
MORE ON CRUDE OIL
* Prepare For What Could Be The Biggest Oil Bull Market Of Your Life [https://seekingalpha.com/article/4902674-prepare-for-what-could-be-the-biggest-oil-bull-market-of-your-life]
* Commodities: Oil Surges As Peace Deal Hopes Fade [https://seekingalpha.com/article/4902357-commodities-oil-surges-peace-deal-hopes-fade]
* Phillips 66: Markets Underappreciate The Durability Of Refining Profitability [https://seekingalpha.com/article/4902149-phillips-66-markets-underappreciate-the-durability-of-refining-profitability]
* Aramco CEO says markets may not return to normal until 2027 [https://seekingalpha.com/news/4590933-ceo-of-worlds-largest-oil-company-says-markets-may-not-return-to-normal-until-2027]
* Shell CEO flags ~1B barrel crude shortage, 'journey back will be a long one' [https://seekingalpha.com/news/4589514-shell-ceo-crude-shortage-warning]
- Phillips 66 Commits $1 Million to Expand Hands-On STEM Learning Through Project Lead The Way in Communities Nationwide
May 11, 2026
Funding will support middle and high school STEM program implementation and expansion across 10 states
INDIANAPOLIS, May 11, 2026 /PRNewswire/ -- Project Lead The Way (PLTW), an organization dedicated to preparing PreK–12 students for careers, college and life through hands-on curriculum, is proud to announce that Phillips 66 has invested $1 million to support the continued expansion of PLTW programs in middle and high schools in communities nationwide. The funding will increase access to hands-on, career-connected learning in engineering, computer science and STEM exploration through PLTW Gateway, PLTW Engineering, and PLTW Computer Science programs.Project Lead The Way (PRNewsfoto/Project Lead The Way)
This latest investment builds on a multi-year partnership between Phillips 66 and PLTW, which focuses on preparing students for the workforce of the future, by expanding access to high-demand career pathways, strengthening the pipeline of future-ready talent in communities where Phillips 66 operates. Since 2023, the partnership has provided $4 million in total support for PLTW's School Grant Program and has made an impact on thousands of students and educators across the country.
Developing real-world problem-solving and technical skills is essential to preparing students for the careers and challenges of the future," said Amanda Robertson, Senior Vice President of Advancement at Project Lead The Way. "This continued investment from Phillips 66 helps schools bring engaging, hands-on career-driven programs to life, expanding opportunity for students and supporting teachers with the tools they need to inspire learning."
Through PLTW's School Grant Program, eligible middle and high schools in designated Phillips 66 communities will be able to apply for funding to either launch new programs or expand existing PLTW pathways. Grant opportunities include two-year implementation grants for new programs and one-year expansion grants to strengthen current offerings.
"Phillips 66 is proud to continue our partnership with Project Lead The Way to support career-connected learning in the communities where we live and work," said Courtney Meadows, Senior Manager of Social Impact at Phillips 66. "By investing in programs that bring real-world learning into classrooms, we are helping students build skills that open doors to future careers while strengthening the local talent pipeline for industries that depend on innovation and technical expertise."
The Phillips 66–PLTW partnership has become a nationally scaled initiative supporting STEM education across 10 states: California, Colorado, Illinois, Louisiana, Montana, New Jersey, New Mexico, Oklahoma, Texas and Washington.
Story Continues
Since its launch in 2023, the partnership has:
Funded more than 218 PLTW programs Reached 25,000+ students with hands-on STEM learning experiences Supported training for 150 teachers Expanded access to both middle school and high school STEM pathways, including engineering and computer science programs
The partnership is designed as a long-term investment in workforce development, helping schools build sustainable instruction capacity while preparing students for in-demand careers in engineering, technology, and related fields.
Schools in the following counties will be eligible to apply for PLTW grants this cycle:
California: Contra Costa County, Solano County
Colorado: Adams County, Arapahoe County, Denver County, Weld County
Illinois: Madison County
Louisiana: Calcasieu Parish
Montana: Yellowstone County
New Jersey: Union County
New Mexico: Eddy County, Lea County
Oklahoma: Beaver, Blaine, Canadian, Carter, Dewey, Ellis, Garvin, Grady, Kay, Kingfisher, Logan, Major, McClain, Oklahoma, Osage, Stephens, Texas, Tulsa, Washington, Woodward Counties
Texas: Andrews, Brazoria, Crane, Crockett, Ector, Fayette, Gaines, Glasscock, Goliad, Hansford, Harris, Hockley, Howard, Hutchinson, Jackson, Jefferson, Jim Wells, Lavaca, Martin, Matagorda, Midland, Nueces, Ochiltree, Potter, Reagan, Reeves, San Patricio, Upton, Winkler Counties
Washington: Skagit County, Whatcom County
Eligible middle and high schools will be able to apply beginning in fall 2026, with award notifications expected in December 2026 and January 2027.
Schools and districts can learn more about eligibility and application requirements at:
https://www.pltw.org/plan-for-pltw/investment/funding-grants
About Project Lead The Way (PLTW)
For nearly 30 years, Project Lead The Way (PLTW) has prepared PreK–12 students for careers, college, and life by equipping them with the STEM knowledge, credential preparation, transferable skills, and confidence to succeed. Its hands-on, real-world learning, deep industry partnerships and clear, scaffolded curriculum guide students from early career curiosity to postsecondary readiness. With strong professional development and a national network of more than 116,000 trained teachers in 12,200+ schools across all 50 states, PLTW enables schools to design scalable, future-focused programs that inspire students, empower educators, and connect learning to life after graduation. Visit pltw.org to learn more.
About Phillips 66
Phillips 66 is a leading diversified and integrated downstream energy provider that manufactures, transports and markets products that drive the global economy. The company's portfolio includes Midstream, Chemicals, Refining, and Marketing and Specialties businesses. Headquartered in Houston, Phillips 66 has employees around the globe who are committed to safely and reliably providing energy and improving lives while pursuing a lower-carbon future. For more information, visit phillips66.com or follow @Phillips66Co on LinkedIn.
Media Contact: Alex Fairchild pltw@finnpartners.comCision
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- Phillips 66 (PSX) Just Overtook the 50-Day Moving Average
May 11, 2026
Phillips 66 (PSX) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, PSX broke through the 50-day moving average, which suggests a short-term bullish trend.
One of the three major moving averages, the 50-day simple moving average is commonly used by traders and analysts to determine support or resistance levels for different types of securities. However, the 50-day is considered to be more important since it's the first marker of an up or down trend.
Shares of PSX have been moving higher over the past four weeks, up 7.7%. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock, suggesting that PSX could be poised for a continued surge.
Looking at PSX's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 7 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
Investors should think about putting PSX on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
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- Phillips 66 (PSX) Just Overtook the 50-Day Moving Average
May 11, 2026 · zacks.com
Phillips 66 (PSX) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, PSX broke through the 50-day moving average, which suggests a short-term bullish trend.
- Phillips 66: Markets Underappreciate The Durability Of Refining Profitability
May 9, 2026 · seekingalpha.com
Phillips 66 is well-positioned for a significant windfall from elevated crack spreads driven by global supply disruptions and the Iran War. Refining margins surged to $10.11/barrel, with spreads near $60, potentially delivering $7B+ cumulative windfall through 2027, or ~$20/share. Operational improvements and cost reductions, alongside a 50% capital return policy, support robust shareholder returns and accelerated debt reduction.
- Phillips 66 (PSX) Is Down 6.1% After Profit Squeeze Despite Strong Margins And Insider Buying
May 9, 2026
In the first quarter of 2026, Phillips 66 reported higher sales of US$32,540 million and revenue of US$33,002 million, but net income fell to US$207 million and earnings per share roughly halved versus a year earlier. Despite this profit compression, analysts highlighted better-than-expected adjusted earnings driven by stronger refining margins and improved performance in chemicals and renewable fuels, with insider share purchases reinforcing leadership confidence. Next, we’ll explore how stronger refining margins and resilient segment performance influence Phillips 66’s pre-existing investment narrative around growth and earnings stability.
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Phillips 66 Investment Narrative Recap
To own Phillips 66, you need to believe its integrated model across refining, midstream, chemicals and renewables can support earnings through volatile conditions while funding ongoing dividends and buybacks. The latest quarter showed stronger refining margins and better-than-expected adjusted earnings, but a sharp drop in reported net income keeps near term earnings volatility as the key risk, with the main catalyst still being execution on refining and midstream efficiency and growth projects. Overall, this news does not materially change that balance.
Among recent announcements, the reaffirmed quarterly dividend of US$1.27 per share in April 2026 stands out in light of weaker reported Q1 profits. Maintaining and recently increasing the dividend suggests management is aligning capital returns with its view of underlying cash generation, even as free cash flow and leverage have been under some pressure. For investors focused on the catalyst of disciplined capital allocation, that dividend decision adds important context to the Q1 earnings story.
Yet behind the reassuring dividend and solid adjusted results, there is a risk around rising leverage and cash flow coverage that investors should be aware of...
Read the full narrative on Phillips 66 (it's free!)
Phillips 66's narrative projects $150.9 billion revenue and $7.2 billion earnings by 2029. This requires 4.5% yearly revenue growth and a roughly $2.8 billion earnings increase from $4.4 billion today.
Uncover how Phillips 66's forecasts yield a $180.95 fair value, a 8% upside to its current price.
Exploring Other PerspectivesPSX 1-Year Stock Price Chart
The more pessimistic analysts were already assuming roughly US$126.8 billion of revenue and US$6.0 billion of earnings by 2029, and this softer Q1 result may either reinforce those cautious views or prompt them to revisit assumptions about midstream EBITDA growth and capital intensity, so it is worth seeing how far your own expectations sit from that lower end of the range.
Story Continues
Explore 5 other fair value estimates on Phillips 66 - why the stock might be worth 11% less than the current price!
Form Your Own Verdict
Don't just follow the ticker - dig into the data and build a conviction that's truly your own.
A great starting point for your Phillips 66 research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision. Our free Phillips 66 research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Phillips 66's overall financial health at a glance.
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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 PSX.
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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- Is It Too Late To Consider Phillips 66 (PSX) After Its Recent Pullback?
May 9, 2026
Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide.
Investors may be wondering if Phillips 66 at around US$168 per share still offers value, or if most of the opportunity is already reflected in the price. The stock has pulled back 6.1% over the last week and 3.7% over the last month, yet it still shows returns of 28.9% year to date and 59.8% over the past year, with very large gains over 3 and 5 years. Recent headlines around Phillips 66 have focused on its position in the US energy sector and the implications of past capital allocation and efficiency initiatives. These help frame investor expectations around the stock. This context matters because it can influence how investors think about future cash flows, risk and what they are willing to pay for each dollar of earnings. Even after these moves, Phillips 66 currently records a valuation score of 3 out of 6. Next, you will see how common methods like P/E, cash flow and asset based measures line up with that score, followed by a broader way of thinking about value at the end of the article.
Phillips 66 delivered 59.8% returns over the last year. See how this stacks up to the rest of the Oil and Gas industry.
Approach 1: Phillips 66 Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow, or DCF, model estimates what a stock could be worth by projecting the cash the company may generate in the future and discounting those cash flows back to today.
For Phillips 66, the model used is a 2 Stage Free Cash Flow to Equity approach. The latest twelve month free cash flow is about $451 million. Analyst and extrapolated projections suggest annual free cash flows reaching around $7.9b in 2030, with a series of intermediate estimates between 2026 and 2035 that are discounted back to present values. All of these projections are expressed in US$.
Putting those discounted cash flows together, the DCF model arrives at an estimated intrinsic value of about $468.51 per share for Phillips 66. Compared with the current share price of roughly $168, this implies the stock is about 64.1% undervalued under these assumptions.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Phillips 66 is undervalued by 64.1%. Track this in your watchlist or portfolio, or discover 51 more high quality undervalued stocks.PSX Discounted Cash Flow as at May 2026
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Phillips 66.
Approach 2: Phillips 66 Price vs Earnings
For a profitable company like Phillips 66, the P/E ratio is a useful way to relate what you pay for the stock to the earnings it generates today. Investors usually accept a higher or lower P/E depending on what they expect for future growth and how much risk they see in those earnings.
Story Continues
Phillips 66 currently trades on a P/E of 16.4x. That sits above the Oil and Gas industry average of about 14.2x and also above the peer group average of 14.7x, so on simple comparisons the stock carries a higher earnings multiple than many competitors.
Simply Wall St’s Fair Ratio for Phillips 66 is 24.1x. This is a proprietary estimate of what the P/E might be given factors such as the company’s earnings growth profile, industry, profit margins, market value and risk characteristics. Because it blends these elements together, the Fair Ratio can give a more tailored view than a basic check against industry or peer averages alone.
Comparing the Fair Ratio of 24.1x with the current P/E of 16.4x suggests the stock is trading below that Fair Ratio estimate.
Result: UNDERVALUEDNYSE:PSX P/E Ratio as at May 2026
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Upgrade Your Decision Making: Choose your Phillips 66 Narrative
Earlier it was mentioned that there is an even better way to understand valuation, so Narratives on Simply Wall St let you attach your own story about Phillips 66 to the numbers by linking a view on its business, revenue, earnings and margins to a financial forecast, a Fair Value, and a clear comparison with the current price that updates automatically when fresh news or earnings arrive, whether that story is closer to a higher fair value near US$468 per share with stronger Midstream growth and higher future earnings like the US$213 analyst target, or a more cautious view nearer US$138 that leans on slower revenue, different margin expectations and a lower future P/E, all of which you can explore and refine on the Community page to help decide if the stock looks closer to buy, hold or sell territory for your own approach.
For Phillips 66 however we'll make it really easy for you with previews of two leading Phillips 66 Narratives:
These sit on opposite sides of the debate, so you can quickly see which set of assumptions lines up more closely with how you view the stock today, then fine tune the details on the Community page.
🐂 Phillips 66 Bull Case
Fair Value: US$268.71 per share
Implied discount vs last close: about 37.4% undervalued
Revenue growth used in the narrative: 3%
Views Phillips 66 as undervalued relative to its size in refining, marketing and transportation, with an integrated business model that can support profitability. Emphasizes efficiency, cost control and targeted investments in areas such as chemicals, midstream and renewables as levers for profit margins. Highlights balance sheet strength, cash generation and the use of dividends and buybacks as key parts of the equity story.
🐻 Phillips 66 Bear Case
Fair Value: US$138.00 per share
Implied premium vs last close: about 21.9% overvalued
Revenue growth used in the narrative: 1.41% decline
Frames Phillips 66 through a more cautious lens, tying value to execution risks around refining cost targets, heavy crude exposure and large capital projects. Builds in assumptions for slightly higher profit margins but slower revenue, with a future P/E of 10.8x that sits below the current industry average. Argues that the current share price already reflects optimistic expectations, so the bearish Fair Value of US$138.00 requires a lower multiple on 2029 earnings.
These are starting points, not conclusions. The real benefit comes from adjusting the forecasts, margins and P/E you think are reasonable, then seeing how that changes the gap between Fair Value and the current price in real time through the full Narratives on Simply Wall St.
See what the community is saying about Phillips 66
Do you think there's more to the story for Phillips 66? Head over to our Community to see what others are saying!NYSE:PSX 1-Year Stock Price Chart
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include PSX.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- S&P 500 Reverses After Hitting Record High as Oil Prices Bounce Back
May 7, 2026
The S&P 500 Index ($SPX) (SPY) today is down -0.40%, the Dow Jones Industrial Average ($DOWI) (DIA) is down -0.51%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.28%.
Equity markets retreated this afternoon, erasing earlier gains as a resurgence in crude oil prices weighed on sentiment. While the international Brent benchmark saw a slight dip yet remained above $100, U.S. West Texas Intermediate futures surged past the $95-per-barrel mark.Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
US weekly initial unemployment claims rose +10,000 to 200,00, showing a stronger labor market than expectations of 205,000. Weekly continuing claims unexpectedly fell -10,000 to a 2.25-year low of 1.766 million, showing a stronger labor market than expectations of an increase to 1.800 million.
US Q1 nonfarm productivity rose +0.8%, stronger than expectations of +0.6%. Q1 unit labor costs rose +2.3%, weaker than expectations of +2.5%
Fed comments today were slightly hawkish and negative for stocks and bonds. Boston Fed President Susan Collins said interest rates should stay at current "mildly restrictive" levels, but “if the inflation trajectory looked like it was significantly moving in the wrong direction," policymakers would "need to reassess what the appropriate policy would be." Also, Cleveland Fed President Beth Hammack said the FOMC's signal that the next rate move will be a cut is misleading, and her baseline is that interest rates will be on hold for a long period.
The markets are awaiting further updates after the US presented a proposal to Iran that would gradually reopen the Strait of Hormuz and lift the US blockade on Iranian ports. Negotiations over Iran's nuclear program would come later in the process. Iran is expected to respond via Pakistan in the next few days.
The markets are discounting a 6% chance of a -25 bp FOMC rate cut at the next FOMC meeting on June 16-17.
Earnings results thus far in this reporting season have been supportive of stocks. As of today, 84% of the 411 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 fell from a 2.5-week high and is down -0.57%. China's Shanghai Composite rallied to a 2-month high and closed up +0.08%. Japan's Nikkei Stock Average soared to a record high, finishing sharply higher by +5.58%.
Interest Rates
June 10-year T-notes (ZNM6) today are up by +4 ticks. The 10-year T-note yield is down -1.1 bp to 4.338%. Jun T-notes climbed to a 1-week high today, and the 10-year T-note yield fell to a 1.5-week low of 4.319%. T-notes have support today from weaker crude prices, which ease inflation expectations. The 10-year breakeven inflation rate fell to a 2-week low of 2.415% today. Also, today’s reports showing Q1 nonfarm productivity was better than expected, and Q1 labor costs were weaker than expected, were supportive of T-notes.
Gains in T-notes are limited due to today’s weekly jobless claims report, which showed strength in the US labor market, a hawkish factor for Fed policy. Also, hawkish Fed comments today weighed on T-note prices after Boston Fed President Susan Collins and Cleveland Fed President Beth Hammack said they favored keeping interest rates on hold.
European government bond yields are moving lower today. The 10-year German Bund yield fell to a 2-week low of 2.957% and is down -1.5 bp to 2.985%. The 10-year UK gilt yield fell to a 2-week low of 4.886% and is down -2.8 bp to 4.912%.
Eurozone Mar retail sales fell -0.1% m/m, a smaller decline than expectations of -0.3% m/m.
German Mar factory orders rose +5.0% m/m, stronger than expectations of +1.0% m/m.
Swaps are discounting a 79% chance of a +25 bp ECB rate hike at its next policy meeting on June 11.
US Stock Movers
Datadog (DDOG) is up more than +30% to lead software stocks higher and gainers in the S&P 500 and Nasdaq 100 after reporting Q1 revenue of $1.01 billion, better than the consensus of $957.8 million, and raising its full-year revenue estimate to $4.30 billion to $4.34 billion from a previous estimate of $4.06 billion to $4.10 billion, well above the consensus of $4.09 billion. Also, ServiceNow (NOW) and Workday (WDAY) are up more than +6%, and Atlassian (TEAM) and Intuit (INTU) are up more than +5%. In addition, Autodesk (ADSK) is up by more than +4%, and Salesforce (CRM) is up more than +3% to lead gainers in the Dow Jones industrials. Finally, Microsoft (MSFT), Oracle (ORCL), and Adobe (ADBE) are up more than +2%.
Fortinet (FTNT) is up more than +23% to lead cybersecurity stocks higher after reporting Q1 billings of $2.09 billion, well above the consensus of $1.82 billion, and raising its full-year billings forecast to $8.80 billion to $9.10 billion from a previous forecast of $8.40 billion to $8.60 billion, stronger than the consensus of $8.49 billion. Also, Zscaler (ZS) is up more than +9%, and Palo Alto Networks (PANW) and CrowdStrike Holdings (CRWD) are up more than +7%. In addition, and Okta (OKTA) is up more than +5%, and Cloudflare (NET) is up more than +3%.
Energy producers and service providers are moving lower today with WTI crude oil prices down more than -4%. APA Corp (APA) is down more than -6%, and Baker Hughes (BKR) is down more than -5%. Also, Devon Energy (DVN), Marathon Petroleum (MPC), and Diamondback Energy (FANG) are down more than -4%. In addition, SLB Ltd (SLB), Phillips 66 (PSX), ConocoPhillips (COP), Occidental Petroleum (OXY), Halliburton (HAL), and Valero Energy (VLO) are down more than -3%. Finally, Chevron (CVX) is down more than -2% to lead losers in the Dow Jones industrials, and Exxon Mobil (XOM) is also down more than -2%.
Axon Enterprises (AXON) is up more than +13% after reporting Q1 net sales of $807 million, above the consensus of $779.2 million.
Albemarle (ALB) is up more than +9% after reporting Q1 net sales of $1.43 billion, above the consensus of $1.34 billion.
Ormat Technologies (ORA) is up more than +9% after reporting Q1 adjusted EPS of $1.30, stronger than the consensus of 92 cents.
Howmet Aerospace (HWM) is up more than +8% after reporting Q1 adjusted EPS of $1.22, above the consensus of $1.11, and raising its full-year adjusted EPS forecast to $4.88-$5.00 from a previous forecast of $4.35-$4.55, stronger than the consensus of $4.63.
AppLovin (APP) is up more than +6% after reporting Q1 revenue of $1.84 billion, better than the consensus of $1.77 billion, and forecasting Q2 revenue of $1.92 billion to $1.95 billion, stronger than the consensus of $1.89 billion.
MKS Inc. (MKSI) is up more than +3% after reporting Q1 net revenue of $1.08 billion, better than the consensus of $1.04 billion.
Zoetis (ZTS) is down more than -21% to lead losers in the S&P 500 after reporting Q1 revenue of $2.26 billion, weaker than the consensus of $2.30 billion.
Insmed (INSM) is down more than -17% to lead losers in the Nasdaq 100 after forecasting full-year product revenue of $1.0 billion, below the consensus of $1.3 billion.
Whirlpool (WHR) is down more than -13% after reporting Q1 net sales of $3.27 billion, weaker than the consensus of $3.42 billion, and cutting its full-year revenue forecast to $15.0 billion from a previous forecast of $15.3-$15.6 billion, below the consensus of $15.21 billion.
ARM Holdings Plc (ARM) is down more than -7% after reporting Q4 royalty revenue of $671 million, below the consensus of $693.3 million.
Coherent Corp (COHR) is down more than -5% after reporting a Q3 adjusted EPS of $1.41, right on expectations.
US Foods Holding (USFD) is down more than -4% after reporting Q1 net sales of $9.61 billion, below the consensus of $9.66 billion.
Earnings Reports(5/7/2026)
Airbnb Inc (ABNB), Akamai Technologies Inc (AKAM), Becton Dickinson & Co (BDX), Block Inc (XYZ), Charles River Laboratories Int (CRL), Coinbase Global Inc (COIN), Consolidated Edison Inc (ED), Corpay Inc (CPAY), Datadog Inc (DDOG), EPAM Systems Inc (EPAM), Evergy Inc (EVRG), Expedia Group Inc (EXPE), Gen Digital Inc (GEN), Gilead Sciences Inc (GILD), Howmet Aerospace Inc (HWM), Kenvue Inc (KVUE), McDonald's Corp (MCD), McKesson Corp (MCK), Mettler-Toledo International Inc (MTD), Microchip Technology Inc (MCHP), Monster Beverage Corp (MNST), Motorola Solutions Inc (MSI), News Corp (NWSA), Republic Services Inc (RSG), Sempra (SRE), Tapestry Inc (TPR), Targa Resources Corp (TRGP), Trade Desk Inc/The (TTD), Viatris Inc (VTRS), Vistra Corp (VST), WW Grainger Inc (GWW), Wynn Resorts Ltd (WYNN), Zoetis Inc (ZTS).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
- Is the Vanguard Energy ETF a No-Brainer Buy Right Now Due to Rising Energy Costs?
May 7, 2026
Ever since the war in Iran began on Feb. 28, a chain of events has showcased a tale of two outcomes. Iran closed the Strait of Hormuz, the crude oil supply dropped, and energy prices surged.
On one end, there's the pain that people have been feeling at the gas pump. On the other, there are energy companies positioned for record profits.
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In true Wall Street fashion, the allure of profits caused investors to pour money into energy stocks, making it the best-performing sector through early May this year. The S&P 500's energy sector is up 31%, well ahead of second- and third-place materials and industrials (up around 11% each).
Considering the sector's momentum (and no end to the war in Iran in sight), is it a no-brainer to invest in the Vanguard Energy ETF(NYSEMKT: VDE) to capitalize on it?Image source: Getty Images.
What you're getting when you invest in VDE
VDE is intended to give you broad exposure to the energy sector, covering everything from production and transportation to services, equipment, coal, and more. It holds 106 stocks, but it's very top-heavy. Its top three holdings -- ExxonMobil (22.68%), Chevron (14.97%), and ConocoPhillips (6.09%) -- account for over 43%.
As those three stocks perform, so does VDE. So far this year, that has worked out in its favor, with the ETF up 34% as of May 5.VDE data by YCharts
If you're investing in the energy sector, owning a lot of ExxonMobil and Chevron isn't a bad option. They're both fully integrated, owning the whole pipeline from extraction from the ground to filling up your gas tank. That allows them to benefit from rising prices and have a bit of a crutch if (or when, rather) prices cool off.
ConocoPhillips isn't fully integrated; it only focuses on exploration and production. Its business is more sensitive to oil prices because its profits are directly tied to how much oil barrels cost, so its stock usually swings in that direction.
Those three companies have a significant influence on VDE, but the ETF also includes other notable companies such as Marathon Petroleum, Phillips 66, SLB (formerly Schlumberger), Kinder Morgan, and EOG Resources.
Don't base your investment on the high end of the cycle
It can be easy to see a flourishing sector and want to chase the rally, but it's important to remember how cyclical the energy sector (and, by extension, VDE) is.
Story Continues
When there's a supply shock and prices rise, investors pour in to chase the higher profits, sending energy stocks up. At some point, high prices cause demand to slow (people drive less, airlines operate fewer routes, etc.), and profits aren't coming in as quickly. The slowdown leads investors to seek value elsewhere, driving energy stocks lower.
The cycles vary in time, and over time, the energy sector's trajectory has been upward. However, there's no denying there will be pullbacks along the way.
Reasons you should invest in VDE
VDE is a good way to diversify your portfolio and complement the tech-heavy S&P 500 and Nasdaq Composite. The tech sector accounts for nearly a third of the S&P 500, while the energy sector accounts for only 4%. In the popular Nasdaq-100 index, tech accounts for over 64%, and energy is only 0.6%.
Needless to say, neither one of those is exactly the best way to get exposure to the energy sector. Investing in VDE gives you a chance to take advantage of cyclical highs in energy (like now), while also helping to hedge a bit against the tech sector.
Energy stocks also pay some of the more attractive dividends, so that usually translates to VDE. Its current yield (2.3%) is relatively low given its stock price growth this year, but it has averaged a 3.3% yield over the past five years.
If you invest in VDE, do so for diversification and the dividend, not because you're anticipating prices and profits to continue rising. Even if you're right, there's no knowing when the party ends, so be around for the long haul.
Should you buy stock in Vanguard World Fund - Vanguard Energy ETF right now?
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Stefon Walters has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron and Kinder Morgan. The Motley Fool recommends ConocoPhillips, EOG Resources, and Phillips 66. The Motley Fool has a disclosure policy.
Is the Vanguard Energy ETF a No-Brainer Buy Right Now Due to Rising Energy Costs? was originally published by The Motley Fool
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