Market Review: May 07, 2026

Closing Recap

Thursday, May 07, 2026

Index	Up/Down	%	Last
DJ Industrials	-312.88	0.63%	49,597
S&P 500	-28.05	0.38%	7,337
Nasdaq	-32.75	0.13%	25,806
Russell 2000	-47.11	1.63%	2,839

U.S. stocks gave up early gains, with the S&P 500 and Nasdaq pulling back from fresh record highs, as a late day bounce in oil prices pressured stocks ahead of a key monthly jobs report tomorrow morning. Stocks legged lower around noon after spending much of the morning in positive territory (though the Dow and Russell 2000 underperformed all day), after the WSJ reported this afternoon that Saudi Arabia and Kuwait have lifted restrictions on the U.S. military’s use of their bases and airspace imposed after the start of the American operation to reopen the Strait of Hormuz, according to U.S. and Saudi officials. The Trump administration is now looking to restart the operation to guide commercial ships with naval and air support that it had paused after 36 hours this week, U.S. officials said. With those headlines, stock prices sipped as oil prices rebounded. With the pullback, all eleven S&P sectors ended the day in negative territory with the biggest declines coming in Industrials, Materials, Utilities and Energy. It was a quiet afternoon overall with the final massive blitz of earnings coming tonight after the close for quarter, with more than 85% of SPX having reported.

Economic Data

U.S. Q1 non-farm productivity +0.8% (consensus +1.0%), vs Q4 +1.6% (prev +1.8%) while Q1 non-farm unit labor costs +2.3% (consensus +2.6%), vs Q4 +4.6% (prev +4.4%).

Weekly Jobless Claims climbed to 200,000 from 190,000 prior week and vs. consensus 205,000; the 4-week moving average fell to 203,250 from 207,750 prior week; continued claims fell to 1.766M from 1.776M the prior week and vs. consensus 1.800M.
U.S. mortgage rates rose to 6.37%, their highest level in a month, according to Freddie Mac, adding pressure to an already weak spring housing season. Rates briefly dipped below 6% earlier this year but have climbed again amid geopolitical uncertainty, including the Iran conflict, pushing some buyers to the sidelines.

Commodities

After falling notably overnight with WTI crude hitting lows of $89.85 per barrel and Brent $96.03 lows, prices rebounded after a WSJ report said Iran would not allow the U.S. to reopen the Strait of Hormuz with “an unrealistic plan” and then exit the war without paying any reparations “for all the damage inflicted on Iran.” WTI crude ended the day. Earlier in the session, both benchmarks were down over $5 a barrel.

June gold settles +$16.60/oz, or +0.35%, at $4,710.90 while July silver settles +$2.88/oz, or +3.72%, at $80.18, as precious metals got an early boost from lower oil prices and dollar, but as crude rebounded, metals prices pared gains into their settlement. Nonfarm payrolls data tomorrow could move needle again.

Currencies & Treasuries

U.S. Treasury yields fell initially with the 10-yr yield down around 4.33% before bouncing this afternoon to 4.39%, up 4 bps as stocks slipped and oil prices rallied. The United States and Iran are edging toward a limited, temporary agreement to halt their war, sources and officials said on Thursday, with a draft framework that would stop the fighting but leave the most contentious issues unresolved..

Macro	Up/Down	Last
WTI Crude	-0.27	94.81
Brent	-1.21	100.06
Gold	16.60	4,710.90
EUR/USD	0.00	1.1747
JPY/USD	0.41	156.80
10-Year Note	0.04	4.394%

Sector News Breakdown

Consumer Staples

Restaurants; MCD Q1 global comparable sales +3.8% vs est. +3.95% on better EPS $2.83 vs est. $2.74 and revs $6.52B vs est. $6.47B and Q1 US comparable sales +3.9% vs EST +4.21%; PZZA Q1 revenue fell and missed analyst expectations along with a miss for Q1 EPS as decline mainly due to refranchising and lower North America sales, partly offset by international growth; reiterates 2026 outlook for global system-wide restaurant sales flat to down low single-digits; SHAK shares tumbled after swinging to a quarterly loss and missed revenue estimates, hurt by rising commodity costs and named Michelle Hook as its new CFO, effective May 11; posted an operating loss of $2.6M vs. operating profit of $2.8M y/y and revs of $366.7M missed analysts’ estimate of $371.9M. PTLO downgraded to Neutral from Buy at Guggenheim saying after opening eight new stores planned for 2026, Portillo’s’ development will slow in 2027 to 4-6 additions as it works to get out of existing lease

In Food: NOMD Q1 revenue fell 5.9% but beat consensus while Q1 adjusted EPS and adjusted EBITDA also both topped consensus while raised full-year adjusted EPS outlook, citing share repurchases; organic revenue fell 5.3%, driven by a 4.4% drop in volume and a 0.9% decline from unfavorable mix; In Beverages: CELH Q1 adj EPS $0.41 vs. est. $0.29; Q1 revs $783M tops consensus $760.63M; CELSIUS brand retail sales increased 6% y/y; Retail sales of the Celsius Holdings portfolio (CELSIUS, Alani Nu and Rockstar Energy) in U.S. tracked channels (MULO+ w/C) increased 29.8% for the 13-week period.

Retailers:

Luxury Retail: TPR reported better Q4 results, but warned for Q4 revenue, expect low teens growth rate at coach, high single-digit decline at Kate Spade; gave mixed guidance as revs better at about $7.95B, compared with its prior forecast of more than $7.75B (est. $7.82B) but sees adj EPS $6.40-$6.45 vs est. $6.52 per share

In Appliances: WHR shares tumbled on weak results and guidance as Q1 revs $3.27B vs. est. $3.44B; suspends common dividend to prioritize debt paydown; cuts FY26 adjusted EPS view to $3.00-$3.50 from about $7.00 (est. $4.73) and lowers FY26 revenue view to about $15B from $15.3B-$15.6B.

Autos, Leisure, Gaming & Lodging:

In Autos: TSLA China-made EV sales jumped 36% year over year in April, a sixth month of gains, with deliveries of Model 3 and Model Y vehicles built at Tesla’s Shanghai plant totaling 79,478 units. For used cars (CVNA, KMX), the Manheim Used Vehicle Value Index (MUVVI) fell to 211.9, reflecting a 1.8% increase for wholesale used-vehicle prices (adjusted for mix, mileage, and seasonality) compared to April 2025. The April index is down 1.6% month over month. The long-term average monthly move for April is an increase of 0.7%

In Ride Hail/Food Delivery: DASH posted results that came in at the higher end of expectations, underpinned by a new all-time high for MAUs and record sign-ups for DashPass & Wolt+ while the Q2 guide is higher on GOV and in line on AEBITDA (sees Q2 marketplace GOV to be in the range of $32.4B-$33.4B vs. est. $31.8B).

Energy

Oil drillers/services/equipment: NE, RIG, SDRL all upgraded to Overweight from Equal Weight in oil drillers at Barclay’s, HAL upgraded to Overweight and BKR downgraded to EW in oil services and NOV downgraded to Underweight, with PTEN, PUMP both upgraded to Overweight and NBR to EW from UW in Equipment as the firm upgraded is industry view to Positive from Neutral. Barclay’s said once the supply shock ends, oil prices will be structurally higher with Upstream spending accelerating in 2027 and 2028 and sees this driving an earnings revision Cycle and potential Re-rating of stocks. The events in the Middle East will result in structurally higher oil prices and an ensuing multi-year Upstream spending Cycle to drive outperformance of the energy services sector.

Oil Majors: SHEL reported stronger-than-expected Q1 earnings as the Iran war boosted trading profits and energy prices, outweighing declines in oil and gas production from the conflict; BP said the U.S. extended a license allowing them to continue to operate its Shah Deniz natural gas field in Azerbaijan.
In Solar: RUN beat 1Q expectations on revenue and value (higher advance rates ~98% and strong product sales) while volumes declined (-25% y/y). Margins expanded (Upfront NSV +~$4K y/y, 73% storage attach) and monetization shifted toward non/partially retained (~23%) with improved proceeds; ARRY delivered a strong 1Q26 beat, with solid execution driving margin outperformance and reinforcing confidence in FY26 targets. Guidance was reaffirmed despite softer 2Q timing and higher logistics costs

Financials

In FinTech: SEZL reported Q1 earnings ahead of expectations, driven by lower credit loss provisioning, while provision expense as a percentage of GMV was only 1.2%, well-below management’s target of 2.5-3.0% and the co raised its 2026 EPS guide to $5.10 from $4.70 provided prior.

Private Credit: BX cut the value of its private credit fund Blackstone Secured Lending Fund (BXSL) in Q1. Blackstone Secured Lending Fund’s NAV per share dropped 2.4% to $26.26 in the first quarter at fair value, according to its earnings disclosure. Blackstone Secured Lending Fund had the majority of its investments in software, about 20% of its portfolio in software names at fair value, at the end of March. The fund also declared a 77 cent dividend. It declared a dividend of 80 cents in the fourth quarter. OBDC shares fell after cutting its dividend to 31 cents per share from 36 cents per share.

REITs:

AMH reported a 1Q CFFO beat, which we suspect benefitted from a y/y expense decrease. Despite incremental share repurchases in April, AMH affirmed 2026 CFFO guidance. While 1Q lease rate growth decelerated vs. 4Q and occupancy improved modestly, April new lease rate growth reaccelerated 200 bps to 1.2% vs. 1Q and occupancy increased 50 bps to 95.6%

LTC 1Q26 CFFO beat consensus, but management affirmed 2026 NFFO guidance. The Company closed on a small SHOP investment in April but appears to have delayed ~$150M of previously disclosed deals. However, the Company added $100M of new deals to its pipeline and expects to close $250M in 2Q.
MAC reported 1Q26 FFO of $0.34 (+$0.03 vs. consensus), though results were modestly below expectations after excluding a ~$10M land sale gain. Core fundamentals were largely in line, and PFP execution remains strong with the goal line in sight. Importantly, MAC announced the $260M acquisition of Annapolis Mall.
SMA reported a $0.01 1Q26 beat vs. consensus. Mgmt reaffirmed the FY26 FFO midpoint by tightening both ends of the range $0.01. The SSREV growth outlook was unchanged, but stronger expense control supported a +12.5 bps increase to the SSNOI growth midpoint. Occupancy was stable and remains in the low- to mid-92% range.
TRNO reported 1Q26 FFO of $0.68, a $0.01 beat vs. consensus (and KBCM). SSNOI growth accelerated an unexpected 440 bps vs. 4Q25, though we estimate a ~325 bps contribution from changes to the same-store pool.

Biotech & Pharma:

Rare Diseases: STAT news reported the FDA to reconsider treatment for rare cancer after its surprise rejection. Shares of ATRA surged as the company and Pierre Fabre said they reached an agreement to address agency’s concerns over Ebvallo, a therapy for a rare blood cancer. Both companies said that a meeting held in late April with FDA officials ended with the agency agreeing that their already completed, single-arm clinical trial was sufficient to support a review and potential approval.

CPRX bought out as Angelini Pharma S.P.A. announced it will acquire the company for $31.50 per share in cash, totaling approximately $4.1B.
INSM reports Q1 sales of $98.1M for lung disease treatment Arikayce, missing analysts’ average expectation of $105.4M and said they continue to evaluate the potential effect of evolving U.S. policies, which will then impact international launch timing for its other lung disease treatment Brinsupri.
PCVX shares fell early as Q1 net loss widened and missed analyst expectations and operating expenses rose, driven by higher R&D and manufacturing costs for vaccine programs.
SRPT shares fall after Q1 revs $730.8M was down -$14.1M y/y as revs of $102M for its muscle disorder gene therapy Elevidys, compared to $375M y/y which reflects a lower volume of Elevidys sales due to an updated label that only includes patients who can walk for treatment.
TRDA shares tumbled after reported Cohort 1 data from its Phase 1/2 ELEVATE-44-201 study in DMD, with focus centering around significantly lower AUC ~50% below internal expectations and low single-digit increases in dystrophin below expectations for double-digits.
In Animal Health: ZTS shares fell after missing both Q1 EPS and rev estimates driven by US weakness. Mgmt lowers FY EPS guide to $6.85 to $7.00, saw $7 to $7.10. Sees FY revenue $9.68 billion to $9.96 billion, saw $9.83 billion to $10.03 billion. Q1 EPS $1.53 vs $1.61 est. Q1 revs $2.26B vs $2.3B est. Q1 US revs $1.09B vs $1.19B est. Q1 companion animal $1.52B vs $1.59B est. Q1 livestock revs $720M vs $685M est.
Healthcare Services: CCRN agreed to a buyout from investment firm Knox Lane for $437M in cash, or $13.25 a share. The companies expect the deal to close in Q3, subject to shareholder approval and regulatory conditions
Healthcare Facilities: AGL Q1 EPS $2.94 crushed ests $0.94 on revs $1.42B vs. est. $1.38B and raised annual revenue forecast to $5.68-$5.81B from $5.60-$5.70B prior; Q1 beat was mainly attributed to favorable Medical margin and ACO REACH outperformance (was upgraded at Deutsche Bank and Jefferies).

Industrials & Materials

Industrials & Machinery: GWW shares jumped after Q1 revs rose 10% to $4.74B beating estimates and raised 2026 adjusted profit between $44.25-$46.25 per share, above prior forecast of $42.25-$44.75 and said its high-touch solutions unit posted a 10.5% rise in sales in Q1 from a year ago; sees FY sales $19.2B-$19.6B vs. $18.96B

Defense sector; AXON reported Q1 revenue of $807.3M, up 34% y/y vs. consensus of $778.6M, while adj EBITDA of $201.6M, up 30% y/y topped consensus of $184.9M, and with international revenue growing more than 100% y/y and raised FY26 revenue guidance to an implied range of $3.61B-$3.67B (previously $3.53B- $3.61B), up 30-32% y/y. BWXT announced award of U.S. Naval Nuclear Propulsion Program contracts totaling more than $1.4B.
Aerospace: HWM shares rise on results as the aircraft parts maker Q1 profit rose 42% to $1.22 topping ests $1.11 and revs +19% y/y to $2.31B above consensus $2.24B and raised its year rev range to $9.58B-$9.73B from prior $9B-$9.2B view and midpoint of year EPS now $4.94 s. prior $4.45 estimate on the back of growth in its commercial aerospace and industrial gas turbine businesses. BA shares popped late morning after CNBC reported Boeing CEO set to join Trump on China visit next week. HawkEye (HAWK) 360 priced 16M share IPO at $26.00. BKSY shares tumbled following Q1 revenue miss of $21M vs. et. $28M.
In Chemicals: CF reported a beat from top to bottom, with strong results across the board (excluding AN from Yazoo City impacts) as adj EPS reached $3.98, above consensus of $2.69. Price was the primary driver of EBITDA growth, while volume was modestly lower as strong operating rates were offset by Yazoo City shutdown. NTR delivered a solid start to the year, beating sales and EBITDA estimates, reflecting the dynamic upstream markets, and a strong start to the North American planting season.
In Materials: Lithium producer ALB shares advanced after delivered substantial upside to Street margin expectations as cost savings and lithium prices drove operating upside to expectations along with a gain from the Ketjen divestitures; EBITDA ex-1x gains still beat the Street expectations by ~40% for the quarter.

Hardware & Software movers:

Security Software: FTNT shares jumped after Q1 results as reported a strong 1Q26 with revenue and EPS beats driven by product and margin outperformance and the updated FY26 outlook was materially better than expected as billings came in at $2,085MM / +30.6% Y/y vs Street $1,821MM.

Software movers: big bounce for space today as DDOG results/guide beats with Q1 adj EPS $0.60 vs. est. $0.51 and revs rose 32% Y/y to $1.00B vs. est. $961.3M; guides Q2 revs $1.07B-$1.08B and FY revs $4.3B-$4.4B (above prior view of $4.06B-$4.1B) and vs. est. $4.12B and EPS $2.36-$2.44 vs. prior view $2.08-$2.16; reported Robust growth of larger customers, with about 4,550 $100k+ ARR customers, up from about 3,770 a year ago (shares of other software names MDB, TEAM, SNOW advanced in sympathy).
Gaming Software: Unity (U) Q1 revs rose 17% y/y to $508.25M vs. est. $500M but posted a wider Q1 loss (-$0.80) per share citing impairment charges and guided Q2 revs $505M-$515M vs. est. $507.2M; APP delivered a strong start to the year beating consensus revenue by 3.8%, or growth of 59% y/y, combined with adj-EBITDA margin of 85% and noted momentum building in its consumer segment
In Optical sector: COHR delivered modestly better than expected Q3 results with revenue of $1.80B (+27% y/y), adj- EPS of $1.41 (+55% y/y) vs consensus estimates of $1.78B and $1.40 as adj. gross margin expanded to 39.6% (+60bps q/q and 105bps y/y); Q4 revenue and adj.-EPS guidance of $1.98B and $1.62 (midpoints) are above consensus estimates of $1.91B and $1.55. AXTI shares declined COHR accelerated its 6-inch InP capacity ramp a full quarter ahead of schedule, gutting the merchant market and turning AXTI into low-priority overflow. Biggest buyers now self-supply, stripping AXTI of its premium pricing according to some reports.
In Quantum: IONQ reported a smaller-than-expected Q1 loss while revenue surged 755% y/y to $64.7M, , boosted by acquisitions vs. consensus $49.8M on a smaller-than-expected loss; raised its revenue outlook to a range of $260M-$270M from prior vie $235M.
In Social Media: SNAP Q1 revs rose 12% Y/y to reported in-line at $1.53B while guides Q2 revs $1.52B-$1.55B vs. est. $1.53B; Q1 adj EBITDA $233.3M vs. est. $204M; reported 483M daily active users in Q1, adding 9M q/q, but daily active users in North America declined.
Content Delivery: FSLY shares tumbled after a massive run post earnings; beat on results as Revenue (+20% YoY), Security Revenue (+47% YoY), and Non-GAAP Operating Margin (11.1%) all nicely above consensus and Q2, FY26 guide better as well, while Network Services revenue of $126.2M missed consensus by ~$3.7M.

Semiconductors:

ARM posted mixed results despite FQ4/FQ1 REV/EPS exceeding, as licensing beat, while royalties missed due to contraction in smartphone TAM due to memory shortages and higher pricing, as Arm guides 20% Y/y Royalty growth in FQ1; ARM said it sees 2B in demand for its AGI CPU in FY28, vs its $1B outlook, but is supply constrained currently and unable to meet demand, which weighed on shares.

AVGO shares fell late day after a report in The Information noted OpenAI’s AI Chip Deal with Broadcom Hits $18 Billion Financing Snag.
CRUS posted strong F4Q (Mar) results and F1Q (Jun) guidance, which exceeded expectations. Upside was driven by strong iPhone demand, as AAPL represented 91% of revs and grew 9% y/y. Notably, CRUS provided additional color on its Face ID power IC design win at AAPL indicating it represents a new incremental socket and is expected to ramp in a couple years (iPhone 20).
MKSI reported 1Q EPS of $2.30 vs. consensus $2.04 on sales of $1.08B vs. consensus $1.04B while 2Q guide came in handily above consensus.
ON announced private offering of $1.3B of convertible Senior notes.
SITM shares surged after quarterly beat, with revenue of $113.3M (+0.2% q/q, +88.3% Y/y) coming in +10.8% higher than consensus driven by better than expected demand for Ai data center applications; raised Jun Q revs to $145.0M at the midpoint, or +27.7% q/q, driven again by exceptionally strong CED momentum

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Market commentary provided by Hammerstone Markets, Inc, a firm separate from and not affiliated with Regal Securities. Regal Securities has not participated in the creation of the content, and does not explicitly or implicitly endorse the content.