Mid-Morning Look: May 21, 2026

Mid-Morning Look

Thursday, May 21, 2026

U.S. stocks all over the place early, pulling back this morning after Reuters reported Iran’s Supreme Leader Mojtaba Khamenei has issued a directive that the country’s highly enriched uranium should not be sent abroad. Israeli officials also said that ‌President Trump has assured Israel that any peace deal must include a clause removing Iran’s highly enriched uranium from the country. The news lifted oil prices, in turn Treasury yields after falling the day prior from year highs, which overshadowed a strong earnings and guidance report from tech/semi behemoth Nvidia (NVDA) overnight as major averages opened lower following good returns for the Russell 2000, Nasdaq, S&P 500 and Dow Wednesday. Stocks got a bounce around 10:00 am after Al Jazeera reported that Iranian Official denies reports that Iran’s Supreme Leader said that Uranium must stay in Iran but still remain lower. The headlines continue to move markets and impact markets. In stock sector news, NVDA results helping lift the AI data center/infrastructure sector along reports of price increases for NBIS; hospital stocks (THC, UHS, HCA) slide on CMS headlines overnight; luxury retail rises on RL results while WMT in-line results and soft guidance; and quantum stocks IBM, GFS, RGTI, INFQ, QBTS rising on U.S. investment/stake headlines (see below). Overall, a very busy morning of news, including IPO fever with SpaceX providing details of its upcoming planned IPO with a valuation of $2 trillion, just a few days after reports ChatGPT-maker OpenAI has been working with bankers to prepare to file for an initial public offering in the coming days or weeks. Exciting times on Wall Street in the tech/Ai world, with big moves daily for semis, data plays, power stocks, while software names continue to bleed lower. Gold eased, pressured by a stronger U.S. dollar and high Treasury yields,

• Philadelphia Fed Business fell -0.4 in May below consensus 18.0 and down vs April 26.7; prices paid index for May down to 47.9 vs April 59.3, while new orders index plunged to -1.7 in May vs April 33.0. The employment index fell to -2.8 vs April -5.1and six-month capital expenditures outlook May 30.9 vs April 35.2
• U.S. Housing starts for April declined (-2.8%) m/m to 1.465M annual rate vs. 1.410M consensus and 1.507M prior (revised from 1.502M), Single family starts -9.0% to 930,000 unit rate; multifamily +10.3% to 535,000 unit rate. April Building permits rose +5.8% m/m to an annual rate of 1.442M vs. 1.380M consensus and 1.363M prior.
• S&P Manufacturing PMI Flash Actual 55.3 (Forecast 53.8, Previous 54.5) and S&P Services PMI Flash Actual 50.9 (Forecast 51.2, Previous 51.0).

• Hospital sector (HCA, UHS, CYH, THC): The Centers for Medicare & Medicaid Services (CMS) proposed today a sweeping crackdown on state Medicaid payment practices that have driven payment rates well above Medicare levels, leading to excessive federal costs. The Medicaid Managed Care State Directed Payments (SDP) and Medicaid Fee-for-Service (FFS) Targeted Practitioner Payments Proposed Rule would set clear caps and better align Medicaid payments with Medicare standards. If finalized, the proposed rule would generate an estimated $775 billion in total savings over 10 years, including $510 billion in federal savings
• Industrials: DE reported sales and revenue in Q2 rose 5% to $13.37B, topping analysts’ estimates $11.53B, and reported a net Income of $1.77B or $6.55 per share for the quarter, down from $6.64 a year earlier but above consensus $5.70 as reaffirms FY26 net Income view $4.5B-$5B; the WSJ reported PH struck a deal to acquire the Aerospace and Defense unit of Circor from KKR for over $2.5B, according to people familiar with the matter. The sale would mark a huge return on KKR’s initial investment into Circor. The private-equity firm struck a deal in 2023 to take the entire business private for roughly $1.6B, including debt. GGG said it agreed to acquire Valco Melton, a supplier of adhesive application and quality assurance systems, in a cash transaction valued at about $447 million, including the present value of expected tax benefits.

• APLD +17%; shares jumped after the company announced its fourth major deal (300MW) with the same high-credit customer who recently took capacity in its Delta Forge Location in Louisiana; The deal is valued at about $7.5 billion in base-term contracted revenue.
• CRML +4%; announced the execution of a definitive 15-year binding offtake agreement with ALOY for rare earth element concentrate from its Tanbreez Project in Southern Greenland. This agreement follows the Government of Greenland’s April 17 approval of its ownership increase to 92.5% of the Tanbreez.
• ELF +3%; reported Q4 sales up +35.1% y/y to $449.3M and vs consensus ests of +27.2% and implied guidance of sales to range between $413-$424M in sales as beat was primarily driven by outperformance from Rhode, which saw sales around ~$112M vs implied guidance of $82-87M. The rest of the business was up around +1%.
• IBM +6%; along with gains in GFS, QBTS, RGTI, INFQ after the WSJ reported that the U.S. government will award firms $2 billion and take equity stakes in some companies. Those companies were named as the ones that will be awarded funds by U.S. government.
• NBIS +16%; shares jumped on reports the company will raise prices on certain NVIDIA GPU rental platforms, effective June 1, 2026; Roughly ~30% on on-demand (pay-as-you-go) rates across many NVIDIA GPU platforms; Various NVIDIA GPUs including H100/H200 series and newer Blackwell platforms.
• RL +10%; posted Q4 top and bottom line beat ($2.80/$2B vs. est. $2.54/$1.85B), increases quarterly dividend 10% to $1.00 per share on better guidance; sees Q1 revenues to increase in the mid- to high-single digits on a constant currency basis, above consensus of a 6.9% rise.

• DE -6%; reported sales and revenue in Q2 rose 5% to $13.37B, topping analysts’ estimates $11.53B, and reported a net Income of $1.77B or $6.55 per share for the quarter, down from $6.64 a year earlier but above consensus $5.70 as reaffirms FY26 net Income view $4.5B-$5B.
• KR -3%; after Bloomberg News reported new CEO Greg Foran is looking at big price cuts in order to win back market share and take on competitors like WMT, COST and AMZN and laying the groundwork for lower prices across product categories.
• INTU -19%; shares tumbled after Q3 results on weaker TurboTax revs, while growth rates across most of GBS decelerated Q/Q and management was unwilling to specially endorse its 15-20% long-term guidance range; the company also confirmed it would reduce its full-time workforce by 17%
• OFIX -15%; after lowering its FY26 revenue view to $838M-$848M from $850M-$860M (est. $854.43M) saying the FDA issued a final order reclassifying non-invasive bone growth stimulators from Class III to Class II devices. In connection with that reclassification, CMS recently updated certain billing requirements and Medicare fee schedule treatment applicable to non-invasive bone growth stimulators billed under certain codes.
• RKLB -5%; shares fell after announcing filing to sell up to $3B in common stock.
• STLA -6%; after revealing its new $70 billion plan to 2030 leaves investors focused on execution. The strategy update includes plans for 60 new car models by 2030, new technology investments, joint ventures with other carmakers and better use of its manufacturing capacity.
• WMT -7%; reported in-line Q1 EPS of $0.66 on better revs $177.8B vs. est. $174.84B though guidance was soft as sees Q2 adj EPS $0.72-$0.74 vs. est. $0.75 and net sales up 4%-5% while maintained its target of annual net sales growth of 3.5% to 4.5% and adjusted EPS of $2.75 to $2.85.