Mid-Morning Look: May 05, 2026

Mid-Morning Look

Tuesday, May 05, 2026

U.S. stocks dipped yesterday…but just leads to another “buy the dip” moment on this turnaround Tuesday as the technology sector continues to push higher, leading major averages while developments in the Middle East remain tense but not deterring stock market investments. While the market rally remains broad based this year, the massive rally in tech on AI growth hopes continues to be the true leader for the last year and change as the semi index (SOX) rises another +3.7% to record highs (above 10,900) and INTC hits a new record after reports Apple hold talks with them and Samsung for U.S. chip making. Mag 7 names like AMZN, GOOGL making new all-time highs. Memory/HDD stock strength relentless with MU, SNDK, STX, WDC just extending all-time highs. Global oil prices slipped a day after the United States launched an operation aimed at reopening the Strait of Hormuz to shipping, although exchanges of fire between the U.S. and Iran limited the decline. Bitcoin price extending gains above $81,500, its highest since Jan 31. A very busy morning of earnings (and will only get busier the next 2 days) as over 2,000 companies overall (roughly 125 SPX names) are expected to report earnings this week. Just one massive stock market rally continues to defy the doubters. Market overlooking job openings data flat in March as layoffs ticked higher.

• ISM report on U.S. non-manufacturing sector shows PMI 53.6 in April (consensus 53.7) vs 54.0 in March; ISM non-manufacturing business activity index 55.9 in April above the 53.9 in March; new orders index 53.5 in April vs 60.6 in March, employment index 48.0 in April vs 45.2 in March and in-line prices paid inflation reading of 70.7.
• March single-family home sales rose 7.4% to 682K vs. est. 650K; March home sales Northeast +80.0%, Midwest -5.0%, south +11.1%, West -3.5%; US March new home supply 8.5 months’ worth at current pace; March median sale price $387,400, -6.2% from March 2025 ($412,900).
• March trade deficit widened to $60.3B vs. $61.0B est. & $57.8B in prior month… imports +2.3%; exports +2.0%; the US trade gap widened another 4.4% as imports surged on vehicles, consumer goods, and AI hardware while exports only managed a modest oil-driven bump.

• In FinTech: FIS shares rallied after the company and Anthropic announced a partnership to develop new artificial-intelligence tools for banks. The companies have agreed to build AI agents, programs that complete tasks without the supervision of a user, for use by financial institutions. The agents will draw on FIS’s financial data and systems and Anthropic’s AI, Claude. FISV shares declined as Q1 adjusted revenue $4.68B missed analyst expectations of $4.73B saying organic revenue fell 1% in Merchant Solutions and 6% in Financial Solutions segments though the company affirmed its 2026 organic rev growth and EPS outlook.
• E&P Energy: FANG reported strong operating results, a logical plan to increase activity, and a new common sense approach to cash returns that peers should adopt. The 1Q earnings/production beat on lower capex amid severe weather was noteworthy; VNOM posted a high-quality production and EBITDA beat, coupled with a positive reset to production guidance and a ~$526M bolt-on acquisition of Permian minerals. DVN was upgraded to Strong Buy at Raymond James confident the company will be successful in portfolio optimization.
• In Software: NOW hosted its financial analyst day on Monday; projects subscription revenue hitting $30B in 2030 with Now Assist driving 30% of ACV; DOCN shares surge after biggest top-line beat in 18Qs, raising ’26 and ’27 outlooks, w/ ’27 now > 50% from the prior 30%; PCOR Q2 revenue a touch below the Street, ’26 revenue guide raised by a bit more than the beat and Q2 revs guided to $365 at the midpoint vs. Street at $366M.

• BLZE +67%; shares jumped after he company reported solid F1Q26 results and a raised FY26 outlook; guided to Q2 revenue of $39.8M-$40.2M (vs. consensus $38.0M).
• BUD +9%; Q1 EPS and revs beat ($0.97/$15.27B vs. consensus $0.91/$14.69B) as volumes increased by 0.8%, with beer volumes up by 1.2% and non-beer volumes down by 1.9%; backs FY26 EBITDA view up 4%-8% and also backs FY26 capital expenditures view $3.5B-$4B.
• CYTK +17%; after saying its heart disease drug, aficamten (branded Myqorzo), met the dual goals of a late-stage trial in patients with symptomatic non-obstructive hypertrophic cardiomyopathy.
• INTC +10%; after Bloomberg reported AAPL has held exploratory discussions about using Intel and Samsung to produce the main processors for its devices in the US, a move that would offer a secondary option beyond longtime partner TSM
• PINS +13%; Q1 revenue rising 17% Y/Y to $1B and adjusted EPS of $0.27, beating estimates. Global monthly active users grew 11% Y/Y to 631M, marking the tenth consecutive quarter of double-digit user growth; guides Q2 revs of $1.13B to $1.15B, above the $1.12B consensus.
• STRL +38%; as Q1 beat was way bigger than expected as revs beat by 38% and EBITDA beat by 41% while guidance raise incorporates a stronger outlook for the remainder of 2026 with revenue guide +20% and EBITDA guide +34%, far exceeding the Q1 beat and signed backlog was $3.8B, +26% sequentially and 78% Y/y
• VRDN +27%; after reported positive topline results from its REVEAL-2 Phase 3 clinical trial of elegrobart in patients with chronic thyroid eye disease, with both dosing regimens showing statistically significant improvements in proptosis compared to placebo.

• DUOL -7%; shares fell as reported Q1 bookings (subscription bookings grew 9% Y/Y ex-FX) and EBITDA that were respectively $7M and $6.5M above guidance and Q1 DAU growth of 21% was slightly above soft guidance of 20% Y/Y, but Q2 bookings guidance came in $11M below consensus.
• ETN -5%; as Q1 results topped views (revs $7.45B vs. est. $7.08B) but guided Q2 results below consensus at $3.00-$3.10 EPS (est. $3.13) though expects 2026 adjusted profit per share in the range of $13.05-$13.50, the midpoint of which is slightly above analysts’ estimate of $13.21 per share.
• FISV -8%; shares declined as Q1 adjusted revenue $4.68B missed analyst expectations of $4.73B saying organic revenue fell 1% in Merchant Solutions and 6% in Financial Solutions segments though the company affirmed its 2026 organic rev growth and EPS outlook.
• INSP -17%; shares tumbled as Q1 revs beat but guidance disappoints as sees 2026 revenue between $825M-$875M, down 4%-10% vs 2025 and down from prior view $950M-$1B and expects 2026 adjusted operating margin of 2%-4% and adjusted diluted EPS of $0.75-$1.25 (below prior $1.85-$2.35).
• IPGP -24%; shares tumble after guided Q2 sales $260M-$290M, with the midpoint slightly below the $275.75M estimate and adj gross margins forecast 37%-40%, while adjusted operating expenses are expected to be between $92M and $95M and Q2 adj EPS $0.25-$0.55 as mid-point misses $0.43 estimate.
• PYPL -9%; Q1 revenue rose 7% to $8.4B, beating analyst expectations of $8.05B as adj EPS $1.34 topped the $1.27 estimate while reiterates FY26 guidance; share fell after saying expect Q2 to reflect more pressure on a yoy basis, driven by non-recurrence of certain prior year items and timing of anticipated cost savings and investment
• SHOP -7%; Q1 operating profit rose 88% to $382M but was below consensus of $420M while revenue climbed 34% to $3.17B, above the $3.11B consensus; Q1 gross merchandise volume (GMV) from merchant transactions rose 35% to $100.74B, topping est. $99.5B; sees Q2 revs up at high 20s percentage rate on y/y basis.
• WGS -44%; after the health care services firm missed first-quarter revenue estimates and cut full-year guidance.