Mid-Morning Look: May 11, 2026

Mid-Morning Look

Monday, May 11, 2026

New day, same result as stock markets firmly higher, continuing to make new highs on a daily basis as the appetite for technology, AI, semiconductors, memory, opticals, and data centers grows by the day, despite hitting new astronomical record highs each time. The chase continues as comparisons to the 1999 internet bubble grow, with mass surges in the same growth driven names daily, pushing major averages higher. @GlobalMktObserv noted on X, “Tech stocks are now THE MARKET: The AI Big 10 now accounts for a RECORD ~40% of the S&P 500’s market cap. This covers the Magnificent 7 stocks plus Broadcom, Micron, and AMD, according to Bofa. This concentration matches the peak of the Nifty Fifty in 1965 and is also as high as Japan’s peak in 1989. It also matches the Tech and Telecom peak at the 2000 Dotcom Bubble.” U.S. stocks enjoyed yet another tech-driven rally on Friday as jobs data offered reassurances regarding labor market health, and solid corporate earnings helped investors look beyond uncertainties arising from attempts to resolve the war with Iran and reopen the Strait of Hormuz. Markets still have no concern about rising commodity prices (copper hits record high, oil up again, etc.) and a longer outlook for any rate cuts given recent rising inflation data points as the sentiment remains positive on AI growth leading all. The Nasdaq and S&P 500 both clocked record gains last week and both enjoying their sixth straight Friday-to-Friday gains – the longest weekly winning streak for both since Oct ‘24. Overall, the narrative remains the same: Middle East deadlock, high energy prices weighing on the global economy, but the AI/tech steamroller rolls on and taking many subsectors with it (data center, cooling, industrials). Overnight, President Trump flatly rejected Iran’s counterproposal/peace offer calling Tehran’s latest proposal “totally unacceptable”, while Iran dismissed the criticism as carrying “no weight”, keeping the conflict unresolved. This week sees the big summit between President’s Trump and Xi in Beijing, but many will consider a resumption of US military strikes against Iran unlikely before the Sino-US summit is done. CPI and PPI data also on tap this week.

• In Discount retail: Keybanc previewed the sector saying ahead of Q1 earnings for Mass/Dollar Stores, they expect strong results from WMT, TGT, FIVE, and DLTR, and see potentially softer trends for DG and OLLI Overall, believes the consumer was resilient, benefitting from higher tax refunds partially offset by higher gas prices. Keybanc also expects WMT and AMZN to continue to gain share, which remains a competitive threat.
• Oil stocks: BP was upgraded to Outperform at RBC Capital and Buy at Argus in two positive analyst comments saying they see the combination of strong commodity prices, recent exploration success and new management providing an opportunity to restore investor confidence. Overall, energy stocks saw early gains as oil prices rose after President Donald Trump said Iran’s response to a U.S. peace proposal was “unacceptable”, raising supply fears as the Strait of Hormuz stayed largely closed, which kept the global market tight.
• In Industrials: BW shares jump as Q1 2026 revenue rises 44% to $214.4 mln, ahead of expectations and reiterates FY2026 adj ebitda target range of $80M-$100M; TEX was upgraded to Strong Buy at Raymond James with price target of $85 saying they left the company’s Q1 report with greater conviction that its materials processing earnings are likely to accelerate through 2026. segment profits in 2026. CNH was downgraded from Buy at Goldman Sachs as believes is fairly valued as the market contends with persistently low North American Agricultural demand amidst macro volatility and higher fertilizer prices, higher-than-expected tariff headwinds post the new metals section 232 methodology changes and stalled recovery in European construction.

• BZH +31%; following a $704 million takeover bid from rival DFH which announced an all-cash bid of $25.75 a share. It represents a more than 40% premium to Beazer’s closing price on May 5, when DFH submitted its offer.
• LITE +11%; is set to join the Nasdaq-100 (NDX) Index, replacing the real estate services provider CSGP later this month, Nasdaq Global Indexes said late Friday.
• MNDY +8%; reported Q1 non-GAAP EPS $1.15, above consensus $0.93 on better revs rising 24% y/y to $351.3M vs. consensus $339.07M saying its launch of AI Work Platform with native agents contributed to Q1 results; guided Q2 revs $354M-$356M, up 18%-19% Y/y.
• MRNA +4%; add to last Friday’s gains on news last week it is developing a hantavirus vaccine in collaboration with VIC-K following an outbreak on a Dutch cruise ship that left at least three people dead and several seriously ill
• QCOM +9%; hitting record high as semi momentum remains unbelievable – stock extends gains from late April after saying the company would start Shipping data center chips to a “large hyperscaler” over the next year.

• DELL -5%; was downgraded to Neutral from Buy but raise PT to $243 from $167 at UBS saying the risk/reward going forward is more balanced following strong execution over the past 12 months as the shares are up ~170% vs the S&P 500 up ~30%.
• IREN -7%; as announces proposed $2B convertible Senior notes offering due 2033 maturing December 2033; says initial purchasers may buy up to $300M additional notes
• MOS -2%; posts Q1 adjusted profit of $0.05 missing the $0.24 consensus and posted a Q1 loss of $258M vs/ year ago profit $238M while withdraws its phosphate production guidance for 2026 as it reviews its operating plan for the rest of the year; adjusts its 2026 capex forecast to $1.25 billion from about $1.5 billion previously.
• TTD -7%; adds to last week losses post earnings and guidance results.
• WEN -4%; downgraded to Underweight from Neutral at JP Morgan saying the co’s U.S. same-store sales continue to decline sharply while there is low visibility on management’s targeted 2H26 recovery amid intense value competition.
• YSS -6%; after Wolfpack Research said they were short on shares in blog post on X.