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Shopify (SHOP) shares fall 1.5% in Tuesday trading after Rothschild & Co Redburn downgraded the stock to neutral from buy, and adjusted the price target to $130 from $160.Trading volume stood at over 4.2 million shares compared with a daily average of nearly 10.2 million.Price: $122.66, Change: $-1.83, Percent Change: -1.47%
Shopify (SHOP) has an average rating of overweight and mean price target of $150.27, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)
Shopify (SHOP) has an average rating of overweight and mean price target of $160.15, according to analysts polled by FactSet.
Open Standard, an independent company backed by more than 140 businesses, launched Open USD, a new US dollar-backed stablecoin designed for global money movement, the company said Tuesday.Partners include Visa (V), Stripe, Mastercard, American Express, BlackRock, BNY, Google, Coinbase, Shopify, DoorDash, and Standard Chartered, among others. All plan to integrate Open USD into their systems once it goes live later this year.Open USD is designed around three principles: free minting and redemption with no volume limits, reserve earnings shared among partners minus a small management fee, and collaborative governance through a board made up of partners, the company said.Zach Abrams, co-founder of Stripe-owned Bridge, serves as founding CEO of Open Standard, according to the statement.Price: $343.74, Change: $+2.09, Percent Change: +0.61%
Cloudflare (NET) said Monday that it has partnered with Mozilla Firefox, Alphabet's (GOOG, GOOGL) Google Chrome, Microsoft (MSFT) Edge, and Shopify (SHOP) to create and standardize a privacy-preserving protocol for identifying legitimate web traffic and combating malicious activity.The initiative introduces Private Access Control Tokens, a technology designed to let browsers verify legitimate users and authorized bots without requiring captchas, intrusive tracking, or mandatory logins, the company said.Cloudflare said the protocol is designed to enhance security amid rising AI-driven traffic while protecting user privacy and reducing friction for website operators and visitors.Price: $224.21, Change: $+0.15, Percent Change: +0.07%
Shopify (SHOP.TO, SHOP) rose 1.1$ in after-hours Nasdaq trading after the company on Tuesday said its board approved an additional US$3 billion share buyback authorization, increasing the company's total repurchase program to US$5 billion.As of June 1, Shopify had already repurchased about US$1.45 billion worth of shares under its existing authorization, according to the statement."Consistent operating cash flow, a balance sheet built for the long-term, and strong results quarter after quarter - these give us the ability to prioritize building products that drive merchant success while also returning capital to shareholders, especially during periods of market volatility, Chief Financial Officer Jeff Hoffmeister said.The company said it will continue buying back shares through pre-arranged trading programs and may make purchases in the open market or through private transactions. Shopify added that the program does not require it to repurchase a specific number of shares and can be changed, suspended, or ended at any time.The company's shares were last seen up US$1.30 to US$117.01 after hours. They closed down C$9.72 to C$161.95 on the Toronto Stock Exchange.
UBS Adjusts Price Target on Shopify to $130 From $145, Maintains Neutral Rating
US equity indexes rose on Tuesday as crude oil futures fell after the United Arab Emirates reported fresh Iranian attacks and Secretary of State Marco Rubio reportedly said combat against Tehran is "over."The Nasdaq Composite was 1% higher at 25,326.13, after touching a record 25,361.05 intraday. The S&P 500 climbed 0.8% to 7,259.22, and the Dow Jones Industrial Average advanced 0.7% to 49,298.25. All sectors rose, with materials and technology leading the gainers.The UAE said it was under attack from Iranian missiles and drones for a second day on Tuesday, according to a report from Reuters. However, US Secretary of State Marco Rubio said Tuesday the combat operation launched in February against Iran has ended, CNN reported. US military action during the ceasefire is a "defensive operation," he was cited as saying.At a Pentagon briefing Tuesday, Gen. Dan Caine, chairman of the Joint Chiefs of Staff, said Iran's military actions on Monday didn't rise to the level of restarting the war, according to The Wall Street Journal. Defense Secretary Pete Hegseth, speaking at the same press conference, said the Iran ceasefire deal remains in force and promised to press ahead with opening the Strait of Hormuz, the chokepoint for about a fifth of global crude oil flows.The statements follow Tehran's strikes in the Strait of Hormuz and at Fujairah in the UAE on Monday, fueling concern that the ceasefire agreement between Washington and Tehran was at risk. Earlier this month, President Donald Trump told congressional leaders that "hostilities" with Iran have "terminated," addressing a critical 60-day deadline under a decades-old law meant to limit the use of military force without authorization from Congress, CBS News reported.West Texas Intermediate crude oil futures dropped 3.9% to $102.27, and Brent crude futures slumped 3.1% to $110.83.US Treasury yields fell, with the 10-year down two basis points to 4.43%, retreating from its highest level in about a month. Two-year yield slid 1.8 basis points to 3.94%.In economic news, US job openings fell to 6.866 million in March from 6.922 million in February, according to the Bureau of Labor Statistics, versus the 6.850 million expected in a Bloomberg-compiled poll. The March level represents 4.1% of total employment, down from 4.2% in February and a year ago.Meanwhile, the Institute for Supply Management's US services index declined to 53.6 in April from 54.0 in March, versus expectations for 53.7 in a Bloomberg-compiled survey.In company news, Intel (INTC) shares soared 13%, the second-biggest gainer on the S&P 500 and the Nasdaq, after Bloomberg reported that Apple (AAPL) has held early discussions with the company and Samsung Electronics on producing key device processors in the US.Huntington Ingalls Industries (HII) reported flat Q1 earnings. Its share fell 10%, the steepest decline on the S&P 500.Shopify (SHOP) reported a Q2 revenue outlook that implied a sequential slowdown in annual growth. Its shares tumbled 16%, the worst performer on the Nasdaq.Precious metals were mixed, with gold futures up 0.8% to $4,569.6. Silver futures added 0.1% to $73.58, after trading higher earlier in the session.
The Nasdaq Composite and the S&P 500 advanced to new highs on Tuesday as oil prices pulled back, while traders digested a fresh batch of corporate earnings reports.The Nasdaq rose 1% to 25,326.1, while the S&P 500 climbed 0.8% to 7,259.2, both marking their highest finish ever. The Dow Jones Industrial Average advanced 0.7% to 49,298.3.All sectors ended in the green, led by materials followed by technology. Intel (INTC), Micron Technology (MU), Apple (AAPL), and Cisco Systems (CSCO) were among the tech names that logged gains on Tuesday.West Texas Intermediate crude fell 3.4% to $102.81 per barrel in afternoon trading, while Brent shed 3.6% to $110.31.US Defense Secretary Pete Hegseth reportedly said that the ceasefire agreement with Iran remained intact despite renewed tensions in the Gulf region.The comment came a day after Tehran fired missiles and drones at the United Arab Emirates, reigniting concerns about the fragile ceasefire between the US and Iran.The US military destroyed six Iranian boats in the Strait of Hormuz on Monday after Tehran attacked US Navy ships and commercial vessels, CNN reported, citing Admiral Brad Cooper, the head of the US Central Command. A senior Iranian military official reportedly disputed that claim.US Treasury yields were lower, with the 10-year rate down 2.1 basis points at 4.42% and the two-year rate falling 1.6 basis points to 3.95%.In company news, Pinterest (PINS) shares jumped 6.8%. The image-sharing platform company posted better-than-expected first-quarter results late Monday and forecast up to 16% revenue growth year over year for the ongoing three-month period.Shopify (SHOP) on Tuesday issued a second-quarter revenue outlook that implied a sequential slowdown in annual growth. The stock slid nearly 16%.PayPal (PYPL) shares slumped 7.8% after the payments company said it was targeting at least $1.5 billion in cost cuts over the next few years, while it maintained its full-year earnings outlook.Palantir Technologies (PLTR) shares dropped 6.9%, despite the software maker raising its 2026 revenue outlook and first-quarter results topping Wall Street's expectations.In economic news, two surveys released Tuesday painted a mixed picture of the US services sector in April, with Institute for Supply Management data showing a deceleration in growth and an S&P Global (SPGI) report indicating a return to expansion."The services sector continues to expand, but the sharp cooling in new orders alongside still-subdued employment momentum suggests growth may be becoming less durable," TD Economics Senior Economist Vikram Rai said in a note.On Friday, ISM and S&P surveys showed that the US manufacturing sector saw continued growth in April, though inflationary pressures intensified amid disruptions caused by the Middle East conflict.New-home sales in the US grew past Wall Street's estimates for March, driven by a demand surge in the Northeast region, government data showed.Gold rose 0.8% to $4,568.70 per troy ounce, while silver lost 0.3 % to $73.30 per ounce.
Shopify (SHOP) has an average rating of overweight and mean price target of $160.15, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)Price: $105.83, Change: $-21.72, Percent Change: -17.03%
US equity indexes rose after midday Tuesday as crude oil futures slumped after Defense Secretary Pete Hegseth said the ceasefire agreement with Iran remains in force.The Nasdaq Composite was 0.9% higher at 25,304.2, after touching a record 25,335.40 intraday. The S&P 500 climbed up 0.8% to 7,258.5, and the Dow Jones Industrial Average advanced 0.6% to 49,225.1.All sectors except financials and communication services rose. Materials, technology, and industrials led the gainers.At a Pentagon briefing Tuesday, Gen. Dan Caine, chairman of the Joint Chiefs of Staff, said Iran's military actions didn't rise to the level of restarting the war, according to The Wall Street Journal.Hegseth, speaking at the same press conference, promised to press ahead with opening the Strait of Hormuz, the chokepoint for about a fifth of global crude oil flows.The statements follow Tehran's strikes in Hormuz and the United Arab Emirates amid rising tensions on Monday, fueling concern that the ceasefire was at risk.West Texas Intermediate crude oil futures dropped 4.2% to $102.23, and Brent crude futures slumped 3.8% to $110.61.US Treasury yields fell, with the 10-year down 2.8 basis points to 4.42%, retreating from its highest level in about a month. Two-year yield slid 2.4 basis points to 3.94%.In precious metals, gold futures climbed 0.8% to $4,571.8, and silver futures rose 0.1% to $73.56.In economic news, US job openings fell to 6.866 million in March from 6.922 million in February, according to the Bureau of Labor Statistics, versus the 6.850 million expected in a Bloomberg-compiled poll. The March level represents 4.1% of total employment, down from 4.2% in February and a year ago.The Institute for Supply Management's US services index declined to 53.6 in April from 54.0 in March, versus expectations for 53.7 in a Bloomberg survey.In company news, Intel (INTC) shares soared 14%, the top performer on the S&P 500 and the Nasdaq, after Bloomberg reported that Apple (AAPL) has held early discussions with the company and Samsung Electronics on producing key device processors in the US.Huntington Ingalls Industries (HII) shares were down 11%, the steepest decline on the S&P 500, following its Q1 results.Shopify (SHOP) reported a Q2 revenue outlook that implied a sequential slowdown in annual growth. Its shares tumbled 14%, the worst performer on the Nasdaq.
US benchmark equity indexes were higher intraday as oil prices fell after Defense Secretary Pete Hegseth said the ceasefire agreement with Iran remains intact.The Nasdaq Composite was up 1% at 25,307.8 after midday Tuesday, while the S&P 500 rose 0.9% to 7,262.2. The Dow Jones Industrial Average advanced 0.7% to 49,283. Barring financials and communication services, all sectors were in the green, led by materials.West Texas Intermediate crude was down 4.4% at $101.73 per barrel in afternoon trading, while Brent fell 4% to $109.91."The ceasefire is not over," Hegseth said in a press briefing at the Pentagon, according to a CNBC report.The comment came a day after Tehran fired missiles and drones at the United Arab Emirates, reigniting concerns about an already fragile ceasefire between the US and Iran.The US military destroyed six Iranian boats in the Strait of Hormuz on Monday after Tehran attacked US Navy ships and commercial vessels, CNN reported, citing Admiral Brad Cooper, the head of the US Central Command. A senior Iranian military official reportedly disputed that claim.US Treasury yields were lower intraday, with the 10-year rate down 2.9 basis points at 4.41% and the two-year rate falling 2.6 basis points to 3.94%.In company news, Pinterest (PINS) shares were advancing by 9.1% in Tuesday afternoon trading. The image-sharing platform company posted better-than-expected first-quarter results late Monday and forecast up to 16% revenue growth year over year for the ongoing three-month period.Shopify (SHOP) on Tuesday issued a second-quarter revenue outlook that implied a sequential slowdown in annual growth. The stock was down 15%.PayPal (PYPL) shares were down 9.1% intraday, the third-worst performer on the S&P 500. The payments company said it was targeting at least $1.5 billion in cost cuts over the next few years, while it maintained its full-year earnings outlook.Palantir Technologies (PLTR) shares were down 6.6% intraday, among the worst performers on the S&P 500, despite the software maker raising its 2026 revenue outlook and first-quarter results topping Wall Street's expectations.Advanced Micro Devices (AMD) and Arista Networks (ANET) are expected to announce their earnings after the markets close.In economic news, two surveys released Tuesday painted a mixed picture of the US services sector in April, with Institute for Supply Management data showing a deceleration in growth and an S&P Global (SPGI) report indicating a return to expansion."The services sector continues to expand, but the sharp cooling in new orders alongside still-subdued employment momentum suggests growth may be becoming less durable," TD Economics Senior Economist Vikram Rai said in a note.On Friday, ISM and S&P surveys showed that the US manufacturing sector saw continued growth in April, though inflationary pressures intensified amid disruptions caused by the Middle East conflict.New-home sales in the US grew past Wall Street's estimates for March, driven by a demand surge in the Northeast region, government data showed.Gold rose 0.7% to $4,566.70 per troy ounce, while silver advanced 0.4 % to $73.82 per ounce.
Tech stocks were higher Tuesday afternoon, with the State Street Technology Select Sector SPDR ETF (XLK) rising 2.4% and the State Street SPDR S&P Semiconductor ETF (XSD) climbing past 4%.The Philadelphia Semiconductor index climbed 4.7%.In corporate news, Pinterest (PINS) shares jumped nearly 10% after it posted better-than-expected Q1 results late Monday and forecast up to 16% revenue growth year over year for the ongoing three-month period.Blackstone (BX) and KKR (KKR) are in talks with Alphabet (GOOGL) to allow their portfolio companies access to Google's AI models, Bloomberg reported. Alphabet shares added 0.5%.Amazon-backed (AMZN) Anthropic introduced new AI agents built for a broader mix of financial services tasks, Bloomberg reported. Amazon shares rose 0.5%.Shopify (SHOP) shares slumped past 16% after the company on Tuesday issued a Q2 revenue outlook that implied a sequential slowdown in annual growth.
All three major US stock indexes were up in late-morning trading Tuesday, as oil prices slid despite new attacks in the Strait of Hormuz.In company news, PayPal (PYPL) reported Q1 non-GAAP earnings Tuesday of $1.34 per diluted share, up from $1.33 a year earlier and above the FactSet consensus estimate of $1.27. Net Q1 revenue was $8.35 billion, up from $7.79 billion a year ago and above the FactSet consensus of $8.05 billion. For Q2, the company said it expects to post a roughly 9% decline in non-GAAP EPS from $1.40 a year earlier to about $1.27. Analysts polled by FactSet expect $1.34. Additionally, PayPal is planning to cut around 20% of its workforce over the next two to three years, Bloomberg reported Tuesday, citing a person familiar with the matter. PayPal shares were down 8.1% around midday.Palantir Technologies (PLTR) reported Q1 adjusted earnings late Monday of $0.33 per diluted share, up from $0.13 a year earlier and above the FactSet consensus of $0.28. First-quarter revenue was $1.63 billion, up from $883.9 million a year ago and above the FactSet consensus of $1.54 billion. For Q2, Palantir said it expects revenue of $1.797 billion to $1.801 billion, above the FactSet consensus of $1.68 billion. For full-year 2026, the company said it expects revenue of $7.65 billion to $7.66 billion, above the FactSet consensus of $7.24 billion. Palantir shares were down 6.3%.Alphabet (GOOG, GOOGL) will raise at least 9 billion euros ($10.5 billion) from its biggest ever euro-denominated bond sale, Bloomberg reported Tuesday, citing a person familiar with the matter. Separately, Alphabet's Google DeepMind, Microsoft (MSFT) and xAI signed new agreements with the Center for AI Standards and Innovation to assess AI security issues before they are released, CAISI said Tuesday. Alphabet's Class C shares were up 1.4%, while its Class A shares were up 1.5%. Microsoft shares were down 0.8%.Apple (AAPL) has held early talks with Intel (INTC) and Samsung Electronics on producing key device processors in the US, Bloomberg reported Tuesday, citing people familiar with the matter. Apple shares were up 1.1%, and Intel shares were up 13.8%.Shopify (SHOP) reported a Q1 loss Tuesday of $0.45 per diluted share, narrowing from a loss of $0.53 a year earlier. Analysts surveyed by FactSet expected earnings of $0.24. First-quarter revenue was $3.17 billion, up from $2.36 billion a year ago and above the FactSet consensus of $3.11 billion. Shopify shares were down 11%.Pfizer (PFE) reported Q1 adjusted earnings Tuesday of $0.75 per diluted share, down from $0.92 a year earlier but above the FactSet consensus of $0.72. First-quarter revenue was $14.45 billion, up from $13.72 billion a year ago and above the FactSet consensus of $13.84 billion. The company reaffirmed its full-year 2026 EPS and revenue guidance ranges of $2.80 to $3.00 and $59.5 billion to $62.5 billion, respectively. Analysts polled by FactSet expect $2.96 and $61.38 billion, respectively. Pfizer shares were down 0.7%.Price: $46.33, Change: $-4.06, Percent Change: -8.06%
Shopify (SHOP) on Tuesday issued a second-quarter revenue outlook that implied a sequential slowdown in annual growth.The Canada-based e-commerce platform anticipates revenue to grow at a high-twenties percentage rate on a yearly basis in the ongoing quarter. The current consensus on FactSet is for $3.42 billion. In the first quarter, revenue jumped 34% to $3.17 billion, topping the Street's view for $3.11 billion.The second-quarter guidance assumes about a half point of foreign-exchange tailwinds, compared with a forex benefit of more than two points in the first quarter, Chief Financial Officer Jeff Hoffmeister said during an earnings call, according to a FactSet transcript.Shares of the company fell 8.1% in Tuesday trade, taking its year-to-date loss to 27%.Gross profit dollars are pegged to increase by a mid-twenties percentage rate for the current quarter."The differential in the revenue versus gross profit growth rates is driven by the continued mix shift between the growth rates of merchant solutions and subscription solutions, which is expected to narrow compared to 2025 and the continued strength of payments," Hoffmeister said.For the March quarter, Shopify's adjusted earnings rose to $0.36 a share from $0.25 the year before. It posted a $0.45 loss on a GAAP basis. Gross profit improved 32% to $1.55 billion.Subscription solutions revenue added 21% to $750 million in the first quarter, while merchant solutions climbed 39% to $2.42 billion. Gross merchandise volume, which represents the total dollar value of orders facilitated through the Shopify platform, advanced 35% to $100.74 billion."(The first quarter) continued the momentum of an outstanding 2025," Hoffmeister said on the call. "Strength was broad across merchant sizes, channels and geographies."Price: $118.78, Change: $-8.77, Percent Change: -6.88%
US equity futures were higher pre-bell Tuesday as traders kept a close watch on the potential re-escalation of hostilities in the Middle East.Dow Jones Industrial Average futures were 0.4% higher, S&P 500 futures were up 0.5%, and Nasdaq futures were 0.8% higher.The UAE said that it was attacked by Iranian drones and missiles, while the US said it sank Iranian boats in the Strait of Hormuz.President Donald Trump had said that the US would help guide vessels stranded in the Persian Gulf. In a post Monday on Truth Social, he said that a South Korean cargo ship had been damaged by Iran, but the US had shot down seven Iranian small boats."Other than the South Korean Ship, there has been, at this moment, no damage going through the Strait," Trump said.Traders digested the latest round of earnings, with Palantir Technologies (PLTR) and Vertex Pharmaceuticals (VRTX) reporting higher Q1 adjusted earnings and revenue. HSBC (HSBC) also posted an increase in Q1 earnings and revenue.Oil prices were lower, with front-month global benchmark North Sea Brent crude down 2.2% at $111.91 per barrel and US West Texas Intermediate crude 3.2% lower at $103.04 per barrel.The US international trade deficit widened to $60.31 billion in March from a $57.78 billion gap in February, compared with a $61.0 billion gap expected in a survey compiled by Bloomberg as of 7:40 am ET.The S&P Global purchasing managers' index composite final report for April, due at 9:45 am ET, is seen reporting 52.1 versus 52.0 previously.March new home sales report, due at 10 am ET, is expected to post a 652,000 annual rate. The April Institute for Supply Management's services index is projected at 53.7 versus 54.0 previously. March job openings from the US Department of Labor's Job Openings and Labor Turnover Survey are expected to come in at 6.850 million compared with 6.882 million in the prior month.Federal Reserve Vice Chair for Supervision Michelle Bowman and Fed Governor Michael Barr are due to speak today.In other world markets, Japan's Nikkei and China's Shanghai Composite were closed due to public holidays. Hong Kong's Hang Seng ended 0.8% lower. The UK's FTSE 100 was down 1.4%, and Germany's DAX index was 1.6% higher in Europe's early afternoon session.In equities, Intel (INTC) shares were up 3.8% after Bloomberg reported the Apple (AAPL) has held early discussions with the company and Samsung Electronics on producing key device processors in the US. Anheuser-Busch InBev (BUD) stock was up 6.6% after the company reported fiscal Q1 underlying earnings and revenue that beat analysts' estimates. Pinterest (PINS) shares were up 18% after the company posted higher Q1 non-GAAP earnings and revenue that beat analysts' consensus.On the losing side, Palantir and HSBC shares were down 1.3% and 3.9%, respectively, after they reported Q1 financial results. Shopify (SHOP) stock was 5.9% lower after the company reported a Q1 loss while analysts expected earnings.
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:SHOP posted Q1 revenue growth of 34% to $3.17B, beating our 31% forecast and exceeding the company's guided low-30% growth rate, as merchant solutions revenue surged 39% to $2.42B. GMV surpassed $100B for the first time, reaching $100.7B (+35%), marking a significant milestone that underscores ongoing platform adoption and merchant engagement. SHOP demonstrated strong operational leverage with operating income growing 88% to $382M despite continued investments in AI and platform expansion, reflecting disciplined expense management. For Q2, SHOP guided revenue growth to a high-twenties percentage rate, representing a deceleration from Q1's 34% pace but near consensus expectations of 27%. FCF margins are expected to remain in the mid-teens as the company continues investing in platform capabilities and AI infrastructure. SHOP ended Q1 with $5.7B in cash and no debt, providing flexibility for growth initiatives. We note that tougher comparisons make the decelerating growth unsurprising.
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:SHOP posted Q1 revenue growth of 34% to $3.17B, beating our 31% forecast and exceeding the company's guided low-30% growth rate, as merchant solutions revenue surged 39% to $2.42B. GMV surpassed $100B for the first time, reaching $100.7B (+35%), marking a significant milestone that underscores ongoing platform adoption and merchant engagement. SHOP demonstrated strong operational leverage with operating income growing 88% to $382M despite continued investments in AI and platform expansion, reflecting disciplined expense management. For Q2, SHOP guided revenue growth to a high-twenties percentage rate, representing a deceleration from Q1's 34% pace but near consensus expectations of 27%. FCF margins are expected to remain in the mid-teens as the company continues investing in platform capabilities and AI infrastructure. SHOP ended Q1 with $5.7B in cash and no debt, providing flexibility for growth initiatives. We note that tougher comparisons make the decelerating growth unsurprising.
US equity futures were trending higher on Tuesday as traders await a fresh batch of corporate earnings and monitor developments in the Middle East.The S&P 500 and the Dow Jones Industrial Average rose 0.3% each in premarket activity, while the Nasdaq added 0.6%. The indexes finished the previous trading session lower.Shopify (SHOP), Pfizer (PFE), Duke Energy (DUK), KKR (KKR), Ferrari (RACE), American Electric Power (AEP), Transdigm (TDG), PayPal (PYPL) and Rockwell Automation (ROK) report their latest financial results before the bell, among others.Advanced Micro Devices (AMD), Arista Networks (ANET) and Strategy (MSTR) are expected to announce their earnings after the markets close.Shares of Palantir Technologies (PLTR) fell 3.3% pre-bell even though the software maker raised its full-year revenue outlook and reported first-quarter results above Wall Street's expectations. Pinterest (PINS) jumped 17% as the image-sharing platform company recorded better-than-expected first-quarter results.Investors were watching developments in the Middle East closely after a day of heightened tensions in the Strait of Hormuz. The US military destroyed six Iranian boats on Monday in the strait after Tehran attacked US Navy ships and commercial vessels, CNN reported, citing Admiral Brad Cooper, the head of the US Central Command. A senior Iranian military official reportedly disputed that claim.Iran fired missiles and drones at the United Arab Emirates, the UAE's Defense Ministry said in a post on X.President Donald Trump told Fox News on Monday that Iran will be "blown off the face of the Earth" if they attack US vessels that support his initiative to escort commercial ships through the Strait of Hormuz.West Texas Intermediate crude oil declined 2.2% to $104.09 a barrel before the opening bell, while Brent decreased 1.4% to $112.79."Absent a reopening of the strait within the next several weeks, the global oil market, in our view, is likely to enter a period of explicit demand rationing within the current quarter," Wells Fargo Investment Institute Chief Investment Officer Darrell Cronk said Monday.Tuesday's economic calendar has the international trade in goods and services report for March at 8:30 am ET, followed by the purchasing managers' index composite final report from S&P Global (SPGI) for April at 9:45 am.New home sales reports for February and March are expected to be out at 10 am, along with the Institute for Supply Management's services index for the previous month. The Job Openings and Labor Turnover Survey for March also posts at 10 am.Federal Reserve Vice Chair for Supervision Michelle Bowman is slated to speak at 10 am, while Fed Governor Michael Barr speaks at 12:30 pm.New York Fed President John Williams said Monday that the Middle East conflict could keep inflation elevated for some time.Treasury yields were down in premarket action, with the two-year rate retreating 2.8 basis points to 3.93% and the 10-year rate off 2.2 basis points to 4.42%.Gold inclined 0.7% to $4,563 per troy ounce, while bitcoin advanced 1% to $80,756.
The S&P 500 and the Nasdaq retreated from record highs as oil prices jumped amid signs that the Middle East conflict could intensify again.The S&P 500 lost 0.4% to close at 7,200.8, while the Nasdaq fell 0.2% to 25,067.8. The Dow Jones Industrial Average ended 1.1% lower at 48,941.9. Barring energy, all sectors were in the red, led by materials.Brent crude jumped 5.3% to $113.87 per barrel, while West Texas Intermediate crude rose 3.1% to $105.12.The US military destroyed six Iranian boats in the Strait of Hormuz on Monday after Tehran attacked US Navy ships and commercial vessels, CNN reported, citing Admiral Brad Cooper, the head of the US Central Command.A senior Iranian military official disputed that claim, Fox News reported, citing Iranian media. US President Donald Trump told news agency that Iran will be "blown off the face of the Earth" if they attack US vessels that support Trump's initiative to escort commercial ships through the Strait of HormuzTehran fired missiles and drones at the United Arab Emirates, the UAE's Defense Ministry said in a post on X earlier in the day.Two US-flagged vessels passed through the strait, the Central Command said Monday, denying claims from Iran that a US ship had been hit. Iran's Islamic Revolutionary Guard Corps said no commercial vessels or oil tankers had transited the narrow waterway, CNN reported.Meanwhile, the Israeli military reportedly issued an evacuation order for 10 villages in southern Lebanon.The broader conflict paused following two separate ceasefires; one between Washington and Tehran and the other involving Israel and Lebanon. However, a framework for a permanent truce is yet to be reached.The cumulative supply disruption due to the conflict has now reached an estimated 600 million barrels by early May, Wells Fargo Investment Institute said in a note."Absent a reopening of the strait within the next several weeks, the global oil market, in our view, is likely to enter a period of explicit demand rationing within the current quarter," Wells Fargo Investment Institute Chief Investment Officer Darrell Cronk said. "Rationing on the order of four million to five million barrels per day would be required within weeks to rebalance the system, with a typical 30-day lag before flow disruptions fully translate into end-market shortages."US Treasury yields were higher, with the 10-year rate up 6.3 basis points at 4.44% and the two-year rate rising 6.6 basis points to 3.96%."Notwithstanding the recent powerful rallies in stocks, challenges remain to finding resolution for the conflict and in our view persist as a potential negative overhang to market performance with news flow from the Middle East, the price of oil, and supply chain disruptions adding to inflation risks near term," Oppenheimer Asset Management Chief Investment Strategist John Stoltzfus said in a report. "That said, stock prices in the US continue to reflect in our view an appreciation for the fundamentals that matter most for revenue and profit growth."On the monetary policy front, New York Fed President John Williams said Monday that the Middle East conflict could keep inflation elevated for some time.Switching to quarterly results, S&P 500 companies' earnings and revenue growth accelerated compared with figures from a week ago, Oppenheimer Asset Management said Monday.Advanced Micro Devices (AMD), Disney (DIS), Uber Technologies (UBER), Shopify (SHOP), Pfizer (PFE) and McDonald's (MCD) are among major companies that are scheduled to release quarterly financials this week.Traders will be looking ahead to fresh labor market data later this week, beginning with the Job Openings and Labor Turnover Survey for March on Tuesday, followed by the ADP employment report for April on Wednesday. The Challenger Job Cut report and the government's nonfarm payrolls data, both for last month, are scheduled to be released on Thursday and Friday, respectively."Focus shifts from Big Tech to consumer-facing earnings and macro validation," Saxo Bank said in a report. "US earnings from Disney, Airbnb (ABNB), and McDonald's will test demand resilience, while the US jobs report will determine whether strong growth can sustain current equity levels."In company-specific news, Tyson Foods' (TSN) shares jumped 8%, the best performer on the S&P 500. The meat producer's fiscal second-quarter results surpassed Wall Street's expectations, lifted by price and volume gains in the chicken and prepared foods segments.Norwegian Cruise Line (NCLH) lowered its full-year earnings outlook on Monday amid higher fuel costs and weak consumer demand due to the Middle East conflict, while the cruise operator's first-quarter revenue fell short of market estimates. The stock fell 8.6%, among the worst performers on the S&P 500.EBay (EBAY) shares advanced 5.1%, among the best performers on the S&P 500, after video game retailer GameStop (GME) proposed to acquire the e-commerce company in a cash-and-stock deal worth about $55.5 billion. Shares of GME slumped 10%.Gold fell 2.6% to $4,524.40 per troy ounce, while silver declined 4% to $73.42 per ounce.
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