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Costco Seen Missing Quarterly Earnings Views, Oppenheimer Says

Costco Wholesale's (COST) fiscal third-quarter earnings are expected to fall short of consensus estimates, though the warehouse club operator is seen expanding its market share, Oppenheimer said in a Tuesday client note.The brokerage is projecting Costco's third-quarter earnings of $4.75 per share, compared with Wall Street's view that it put at $4.98. The company reported EPS of $4.28 in the year-ago period.Costco is scheduled to release its latest results on May 28.That report will likely show a "transitory earnings shortfall" amid mix headwinds related to fuel, ecommerce and pharmacy, Oppenheimer analysts including Rupesh Parikh wrote. "The wild cards for us are expense controls, along with any unexpected gross margin tailwinds that we haven't contemplated," according to the analysts.Costco shares have gained around 24% so far this year, compared with the S&P 500's 8% advance, Oppenheimer said, betting on further outperformance."We believe defensive characteristics of the model and (Costco's) superior value proposition on the omni-channel/fuel fronts should continue to drive outsized share gains," according to the research note.Earlier this month, Costco reported net sales of $23.92 billion for the four-week period ended May 3, up 13% year over year. For the five weeks to April 5, net sales grew 11% to $28.41 billion, it said last month.Oppenheimer lifted its price target on Costco shares to $1,160 from $1,100, while reiterating its outperform rating on stock, along with a "top pick" ranking."We would be positioned to take advantage of any weakness on the print (versus) playing for a positive catalyst," the analysts said. "Our longer-term thesis remains intact, but near term, we believe (Costco) could also benefit from higher levels of food at home inflation."Price: $1087.78, Change: $+11.31, Percent Change: +1.05%

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US Markets36d ago

Home Depot Fiscal First-Quarter Results Top Views; Maintains Full-Year Outlook

Home Depot (HD) on Tuesday reported fiscal first-quarter results above market expectations despite consumer uncertainty, while the home improvement retailer reiterated its full-year outlook.The company's adjusted earnings came in at $3.43 per share for the three months through May 3, down from $3.56 the year before, but ahead of the FactSet-polled consensus of $3.41. Sales improved 4.8% to $41.77 billion, ahead of the Street's view for $41.59 billion."Our first-quarter results were in line with our expectations," Chief Executive Ted Decker said in a statement. "The underlying demand in our business was relatively similar to what we saw throughout fiscal 2025, despite greater consumer uncertainty and housing affordability pressure."For fiscal 2026, the retailer continues to anticipate adjusted EPS to be flat to up 4% versus last year's result of $14.69. The Street is looking for non-GAAP EPS of $15.01.Sales are still pegged to grow by about 2.5% to 4.5% for the ongoing fiscal year. The company reaffirmed its comparable sales forecast range of flat to up 2%. The Street is looking for sales of $171.16 billion and same-store sales growth of 1.4% for the fiscal year.Oppenheimer said Monday it expected Home Depot to lower its full-year guidance amid weak consumer sentiment.For the first quarter, the retailer's comparable sales edged up 0.6% but fell short of analyst estimates for a 0.8% gain. The metric nudged 0.4% higher in the US. The number of transactions decreased 0.9% to 391.1 million, while the average ticket prices rose 2.3% to $92.76.In an emailed client note on Tuesday, Truist Securities said Home Depot incurred "notable weather headwinds" in the quarter, but the brokerage's data suggested that sales improved throughout the period following a "tough early start."Truist believes Home Depot's sales trends remain stable even though it has yet to see a "sharp positive inflection" in revenue amid high interest rates and broader macroeconomic uncertainties. "We continue to think the risk/reward is skewed significantly more to the upside," the brokerage added.

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US Markets36d ago

Indian Oil's Attributable Profit Rises 78% Despite War Impact

Indian Oil's (NSE:IOC, BOM:530965) attributable profit jumped 78% in the fiscal fourth quarter as the bottom line remained insulated from geopolitical shocks.Attributable profit rose to 144.6 billion rupees in the fiscal fourth quarter ended March 31 from 81.2 billion rupees a year ago.Earnings per share climbed to 10.50 rupees from 5.90 rupees in the prior-year period, according to a Monday filing to the Indian stock exchanges.Profitability remained guarded from the impact of the war in the Middle East, as the oil company purchased stocks at normal prices before the conflict arose.The company purchased three crude oil shipments at 54.1 billion rupees and five liquefied petroleum gas shipments at 6.19 billion rupees, which were waiting at the Persian Gulf and were covered by insurance, Indian Oil said.Revenue from operations in the fiscal fourth quarter grew to 2.369 trillion rupees from 2.214 trillion rupees a year earlier.Other income jumped 43% to 17.7 billion rupees from 12.4 billion rupees in the prior-year period.Indian Oil recognized an impairment loss of 12.2 billion rupees from its investment in IndOil Global, it said.Directors also recommended a final dividend of 1.25 rupees per share for the financial year ended March 31.

BOM:530965NSE:IOC

US Markets36d ago

Eurozone Trade Surplus Shrinks in March; EU Exports Plunge Amid US Tariff Uncertainty

The euro area's trade surplus narrowed in March, weighed down by lower exports amid geopolitical tensions, trade policy uncertainty and fresh tariff threats from the White House.The surplus in trade in goods with the rest of the world stood at 7.8 billion euros, down from the revised surplus of 11.1 billion euros in February, according to Eurostat data published Tuesday. The latest figure came in higher than the consensus estimate of 5.4 billion euros."Compared with March 2025, when the surplus was EUR34.1 bn, the latest figure represents a sharp decrease of EUR26.3 bn. This decline was primarily driven by substantial reductions in the surpluses of the chemicals and related products group and the machinery and vehicles group," the statistical office said.The decline also comes as euro area exports of goods to the rest of the world dropped 5.5% year over year to 265.3 billion euros. On the other hand, imports rose 4.4% to 257.4 billion euros.For the European Union, the trade surplus amounted to 5.9 billion euros in March, lower than the 9.1 billion euros in the previous month and 34 billion euros a year before, largely impacted by a widening deficit in the energy group. EU exports fell 8.7% on an annual basis to 233.9 billion euros, while imports increased 2.7% to 228 billion euros.Among the EU's main trading partners, its exports to the US saw the largest year-over-year drop at 37.1%, resulting in the trade surplus plunging to 13.5 billion euros from 40.4 billion euros. Exports to China also fell 2.3%, leading to a trade deficit of 32.6 billion euros.Meanwhile, EU exports to Switzerland and the UK rose 10.1% and 6.9%, respectively, with higher trade surpluses.Bloomberg News reported that EU officials are set to meet Tuesday to work on the final shape of legislation on a trade deal with the US. President Donald Trump recently threatened to increase tariffs on auto imports from the EU to 25% from 15% if a deal is not in place by July 4.

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US Markets36d ago

Stocks Down Pre-Bell as Investors Assess Trump's Latest Iran Remarks

US equity futures were trending lower on Tuesday as traders weigh President Donald Trump's statements on Iran amid ongoing uncertainty in the Middle East.The S&P 500 declined 0.4%, the Dow Jones Industrial Average edged down 0.2% and the Nasdaq fell 0.7% in premarket activity. The indexes finished the previous trading session mixed.In a social media post on Monday, Trump said the US decided to postpone a planned military strike on Iran after leaders of Saudi Arabia, Qatar and the United Arab Emirates urged restraint amid "serious" ongoing negotiations to end the conflict.Trump, however, cautioned that the US will "go forward with a full, large scale assault of Iran" if a deal is not reached."I put it off for a little while, hopefully maybe forever, but possibly for a little while, because we've had very big discussions with Iran, and we'll see what they amount to," Trump reportedly said at a White House event on Monday, according to Bloomberg News.West Texas Intermediate crude oil decreased 1.1% to $107.45 a barrel before the opening bell, while Brent dropped 1.7% to $110.22.Trump's latest rhetoric follows reports that Iran had provided an updated proposal for a deal to end the war. The White House indicated it doesn't reflect a meaningful improvement from a previous offer, Axios reported Monday, citing a senior US official and a source briefed on the matter."Progress on US-Iran peace talks continues to be immaterial, with both parties expressing a willingness to resume overt hostilities if the talks fail," Tudor Pickering Holt Analyst Matt Portillo said in a Monday note.Treasury yields were tracking lower in premarket action, with the two-year rate retreating 2 basis points to 4.07% and the 10-year rate off 1.8 basis points to 4.61%.European Union officials are expected to convene on Tuesday to finalize legislation for the bloc's trade deal with the US, Bloomberg reported. Trump previously threatened to hike tariffs on the EU if it didn't implement its trade deal commitments by July 4.Tuesday's economic calendar has the housing starts and permits report for April at 8:30 am ET, followed by the pending home sales index for the same month at 10 am.Federal Reserve Governor Christopher Waller is scheduled to speak at 8 am, while Philadelphia Fed President Anna Paulson speaks at 7 pm. Atlanta interim President Cheryl Venable is slated to speak at 7:45 pm.Home Depot (HD) shares increased nearly 1% after the home-improvement retailer reported fiscal first-quarter adjusted earnings above market estimates and reiterated its full-year outlook. Keysight Technologies (KEYS) posts its earnings after the markets close.Gold nudged 0.3% down to $4,543 per troy ounce, while bitcoin inched 0.1% higher to $76,794.

Dow JonesNasdaq CompositeS&P 500$HD$KEYS

US Markets36d ago

Japan Industrial Production Slips in March; Still Up on Year

Japan's industrial output slipped in March from February but was still up from a year-earlier level, the Ministry of Economy, Trade and Industry (METI) reported Tuesday.Japan's industrial output fell a seasonally adjusted 0.5% in March from February, but gained 2.4% on year on year, said METI.In March, industrial shipments in Japan declined 0.9% on month, but rose 2.2% on year.Industrial inventories in March fell 1.8% in March from February, and also fell 5.3% on year, according to officials.Japan's industrial production capacity was unchanged in March from February, but declined 1.2% on year.Japan's industrial operating ratio, also called a capacity utilization rate, slipped 1.2% on month in March but was up 4.2% on year, added METI.Of interest, given the closure of the Strait of Hormuz in early March to oil-tanker traffic, is Japan's production of petroleum and coal products, which fell 7.7% in March from February, and declined 1.3% on year, reported METI.Similarly, chemical production, which relies heavily on petroleum inputs, fell 1.2% in March from February, and was flat on year, according to METI.Japan relies on the Middle East for 95% of its crude oil, much of which transits through the Strait of Hormuz.Somewhat in contrast, Japan's motor vehicle production was flat on month in March, but up 7% on year.The METI March industrial production release was more subdued than a recent manufacturing-sector report from S&P Global.The headline Japan manufacturing purchasing managers index (PMI) rose to 55.1 in April from 51.6 in March "to signal a stronger improvement in the health of the sector," reported S&P Global in early May. Reading above 50 indicate an expanding sector, while below points to contraction.Separately, Japan's index of tertiary industry activity, a gauge of the nation's services sector, fell a seasonally adjusted 0.2% in March from February, but was up 2.6% on year, reported METI on Tuesday.

Nikkei 225

US Markets36d ago

Australia's Consumer Sentiment Grows in May

Australian consumers remain largely pessimistic in May as there is little improvement in their sentiment, despite the easing of oil price hikes, Westpac said on Tuesday.The Westpac Consumer Sentiment Index grew 3.5% to 83 as fuel prices eased from increasing amid the ceasefire between the U.S. and Iran. U.S. President Donald Trump paused a scheduled attack against Tehran on Monday after the latter sent a peace proposal to the White House."Responses over the course of the survey week show a slight improvement in sentiment following the Federal budget announcement on Tuesday. This is despite few consumers expecting to benefit directly," Matthew Hassan, Westpac's head of Australian macro-forecasting, said.Last week, the Federal Government announced the budget for the 2026-2027 fiscal year. The underlying cash deficit is expected to be AU$31.5 billion, a slight improvement of AU$2.8 billion. The underlying cash balance was upgraded by AU$44.9 billion over the five years to the 2029-2030 fiscal year, Commonwealth Bank said.In another Westpac note, the bank said the deficit in the 2028-2029 is expected to widen to AU$34.4 billion due to high energy prices and interest rates, but is expected to narrow to AU$25.3 billion in the following fiscal year.However, rate hikes were a key factor to offset the positive news of the easing fuel price spike. The Reserve Bank of Australia decided to raise rates by 25 basis to 4.35% earlier in the month and inflation remains above the 2% and 3% target range.The Westpac consumer survey also showed a gap in age groups. Sentiment among the "baby boomers" and Generation X was weak, with a 70 index, while millennials are modestly pessimistic, with an average index of 94.6. Generation Z has been outright positive with a 104 index."Sentiment generally declines with age, moving 1 percentage point lower every two years," Hassan said. "However, the generational gap has widened materially in 2026."

ASX 200

US Markets36d ago

StanChart Lays Out New Medium-term Goals, Job Cuts Amid AI Boom

Standard Chartered (STAN.L) unveiled new medium-term financial targets and plans to cut more than 15% of roles in its corporate functions by 2030 as the British lender accelerates the use of artificial intelligence across its business.In a Monday statement, the bank said it is "scaling practical uses of automation, advanced analytics and artificial intelligence to streamline processes, improve decision-making and enhance both client service and internal efficiency."Having achieved its 2026 medium-term financial targets a year ahead of schedule, the lender outlined new targets for the period from 2025 to 2028, including a high-teens EPS compound annual growth rate and annual income growth of 5% to 7%. StanChart is also targeting a return on tangible equity of more than 15% by 2028, before rising to 18% in 2030.StanChart also plans to raise income per employee by 20% by 2028, helped by the announced job cuts. The bank also pledged to support a dividend payout ratio of at least 30%, with a "progressive" dividend per share.Highlighting the strength of its international business, StanChart said it will raise investment in its Asian wealth management business, where it ranks as the third-largest player. Its wealth and retail banking business has brought forward key targets to 2028 from 2029, including a goal of attracting $200 billion in net new money and increasing affluent income to 75% of total segment income."We will invest disproportionately in this business, while continuing to concentrate on markets and portfolios where we have scale and the most distinctive client proposition," the bank said.StanChart shares were little changed in early morning trading in London and up over 2% in afternoon trading in Hong Kong.

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US Markets36d ago

UK Unemployment Unexpectedly Rises as Wage Growth Weakens

The British job market unexpectedly softened in the three months to March while wages grew at the slowest pace since the pandemic, data from the Office for National Statistics showed Tuesday.The unemployment rate edged up to 5% in the three months to March, against market expectations that the jobless rate would align with 4.9% in the quarter to February. The UK employment rate was 75% during the quarter to March."Early estimates of the number of people on payroll in April point to further weakness," said Liz McKeown, director of economic statistics at the ONS. "However, at the start of the new tax year, these figures carry greater uncertainty and have often seen larger than average upward revisions."Meanwhile, regular pay in the UK, which excludes bonuses, gained 3.4% year over year in the quarter to March 2026 to 693 pounds sterling per week, representing the smallest pickup since the three months to October 2020. The reading matched consensus expectations and marked a step down from the 3.6% increase for the three months to February 2026.Across the public sector, growth in regular pay moderated to 4.8%, the softest since the quarter to December 2024, from 5.2% earlier. Meanwhile, private sector wage growth eased from 3.2% to 3%, the lowest since the three months to October 2020, with wholesaling, retailing, hotels, and restaurants showing the strongest regular annual growth of 3.6%.Including bonuses, annual average weekly earnings grew 4.1% to 749 pounds, higher than the revised 3.9% jump in the prior three-month period and the consensus forecast for a 3.8% gain."The latest UK jobs report, which features rising unemployment, sharply lower payrolls and tumbling wage growth, is a reminder that the economy is much less susceptible to 'second round' effects from the incoming energy shock. We're still forecasting a rate hike in June, but that is far from guaranteed," economic and financial analysis publication ING said, adding that a lot will also depend on the inflation report due Wednesday.

FTSE 100

US Markets36d ago

Malaysia's April Inflation Picks Up to 1.9% as Consumer Prices Accelerate

Malaysia's inflation accelerated to 1.9% in April, according to data released Tuesday by the Department of Statistics Malaysia.Higher communications, tobacco, and food costs drove the slight increase in inflation, while softer price growth in personal care and housing-related categories helped ease broader cost pressures.Restaurant and accommodation services, as well as healthcare costs, remained broadly stable from the previous month.The data follows Bank Negara Malaysia's decision earlier this month to keep its benchmark overnight policy rate unchanged at 2.75% for a fifth consecutive meeting, even as policymakers flagged rising risks to growth from the prolonged conflict in the Middle East.The decision matched expectations from all 28 economists polled by Reuters."Uncertainties surrounding the duration and severity of the Middle East conflict will affect the outlook of domestic growth and inflation," the central bank said in a statement."Nevertheless, Malaysia's strong fundamentals will continue to underpin the economy's resilience," it added.On a monthly basis, headline inflation rose 0.4% in April, compared with 0.3% in March, driven mainly by transport and information and communication costs.Regionally, eight Malaysian states recorded inflation above the national level, led by Pahang at 2.8%, followed by Labuan at 2.7% and Negeri Sembilan and Kuala Lumpur at 2.5%.Among regional peers, Malaysia's April inflation rate remained below the Philippines, Vietnam, Thailand, South Korea, and Indonesia, but above China's inflation rate, the data showed.

FTSE Bursa Malaysia KLCI

US Markets36d ago

Japan's Economy Expands Better Than Expected in Q1

Japan's economic growth outperformed expectations in the first quarter, but analysts said gross domestic product could slow in the coming months as the impact of the Middle East conflict is felt later.The first-quarter GDP rose 2.1% year on year. On a quarterly basis, it increased 0.5% from the revised 0.8% growth in the fourth quarter of 2025, according to official data on Tuesday.The current GDP surpassed market expectations of a 1.7% year-on-year increase and a 0.5% quarter-on-quarter lift, as well as ING's prediction of a 0.3% quarterly rise.Net exports have been a major factor in the GDP increase, as they added 0.3 percentage points to overall growth, indicating the initial impact of the war between the U.S. and Iran did not slow down demand.Private consumption and capital expenditure both climbed 0.3% quarter on quarter, suggesting enterprise profits managed to sustain the economy, aside from demand remaining robust during this period.Analysts believe the effects of the Middle East war, especially the oil price shocks, will eventually weigh on Japan's economy, slowing down the growth of its GDP in the coming months.Oxford Economics analysts said the first-quarter GDP is "already in the rear-view mirror" of the disruption caused by the conflict. Meanwhile, Dai-ichi Life Research Institute senior executive economist Yoshiki Shinke expects the GDP to contract in the second quarter, Reuters reported."We expect slower growth this quarter and next, mostly due to prolonged energy shocks," Min Joo Kang, ING's senior economist for South Korea and Japan, said. "Domestic demand is likely to grow, but at a slower pace, while inventory and net exports may drag down overall growth."In a statement, Economic Minister Kiuchi Minoru said the government is implementing emergency fuel oil price stabilization measures while monitoring the situation over the Middle East crisis."The Prime Minister requested that the ruling parties' policy affairs chiefs urgently compile a concrete plan for electricity and gas price support for the July-September period, aiming to keep prices below last summer's levels," Minoru said. "The Prime Minister instructed the Minister of Finance to consider financial measures, including the formulation of a supplementary budget, from the perspective of minimizing risks and ensuring adequate preparedness."The U.S. and Iran are currently in a ceasefire as they try to strike a deal to end the war, which brings a sense of uncertainty over the global markets.

Nikkei 225

US Markets36d ago

RBA Weighs Inflation Risks Against Demand Slowdown Ahead of May Rate Rise, Minutes Show

The Reserve Bank of Australia said that inflation was well above target even before the Middle East conflict, reflecting capacity pressures and temporary factors, and that the labor market was still assessed as slightly tight, according to the minutes of the May meeting released Tuesday.Before deciding to raise interest rates by 25 basis points to 4.35% on May 5, the RBA noted that the conflict showed its impact through a material rise in March headline inflation due to higher fuel costs and expectations of a further rise in June, causing a sharp decline in consumer confidence.The RBA's baseline forecast projected underlying inflation to remain above 3% until late 2027 and return to 2.5% only in mid-2028, higher than previously expected.The case for a 25-basis-point rate increase centered on the inflation outlook, with staff assessing that capacity pressures remain tight and that financial conditions may not be sufficiently restrictive to return inflation sustainably to target if the cash rate were held unchanged.The case for holding the cash rate unchanged focused on differing views over capacity pressures, the impact of a prolonged conflict on the board's objectives, whether long-term inflation expectations stayed anchored, and whether weaker demand would outweigh inflationary pressures.Looking ahead to the RBA's June meeting, the board will assess recent data, with ANZ expecting headline inflation to have likely risen 0.5% month over month in April."But this shock has come against a backdrop of elevated capacity constraints and domestic cost pressures... our research suggests ⁠pass-through will be faster and more extensive, and the risk of inflation expectations drifting higher is elevated," said Assistant Governor Sarah Hunter in a Tuesday speech, discussing the impacts of the oil shock in Australia's economy.ANZ anticipates interest rates to remain unchanged for a prolonged period.

ASX 200

US Markets37d ago

Equity Markets Mixed as Trump Aborts Plan to Attack Iran

US equity markets closed mixed Monday as President Donald Trump said the US was postponing a plan to attack Iran on Tuesday.The Nasdaq Composite declined 0.5% to 26,090.7, while the Dow Jones Industrial Average rose 0.3% to 49,686.1. The S&P 500 closed 0.1% lower at 7,403.1. Most sectors were in the green, led by energy, while technology saw the steepest decline.Trump said the US will hold off on its planned military attack against Iran that was previously scheduled for Tuesday, according to his social media post on Monday.Trump said Middle Eastern leaders, including Saudi Arabia Crown Prince Mohammed bin Salman, asked the US president to call off the attack amid "serious" ongoing negotiations to end the Washington-Tehran conflict.Trump, however, cautioned that the US will "go forward with a full, large scale assault of Iran" if a deal is not reached.Brent crude fell 0.4% to $108.85 per barrel in Monday late-afternoon trade, while West Texas Intermediate crude was last up 0.9% at $106.34 per barrel.Trump's latest rhetoric follows reports that Iran had provided an updated proposal for a deal to end the war. The White House indicated it doesn't reflect a meaningful improvement from a previous offer, Axios reported Monday, citing a senior US official and a source briefed on the matter.The Strait of Hormuz -- the world's most important chokepoint for crude flows -- remains largely shut as tensions between the US and Iran continue, with no end in sight."Progress on US-Iran peace talks continues to be immaterial, with both parties expressing a willingness to resume overt hostilities if the talks fail," Tudor Pickering Holt Analyst Matt Portillo said in a note sent earlier in the day.US Treasury yields were little changed in Monday late-afternoon trade, with the 10-year rate at 4.59% and the two-year rate at 4.07%.Nvidia (NVDA) shares fell 1.3%, the second-worst performer on the Dow. The chipmaking giant is expected to exceed Wall Street's first-quarter estimates and guide above consensus amid positive data points, Wedbush Securities said.Nvidia is scheduled to release its latest quarterly results after the markets close Wednesday.Retail giants Walmart (WMT), Home Depot (HD), TJX (TJX), Lowe's (LOW) and Target (TGT) are also expected to report this week. Home Depot and Lowe's are likely to lower their full-year guidance as the home improvement retailers face pressure from weak consumer sentiment, Oppenheimer said in a note.NextEra Energy (NEE) and Dominion Energy (D) agreed to merge in all-stock deal to create the largest regulated electric utility in the world. Dominion shares jumped 9.4%, the second-biggest gainer on the S&P 500, while NextEra fell 4.6%.In economic news, US homebuilder confidence unexpectedly rose this month despite elevated mortgage rates, macro uncertainty and continued affordability challenges, data from the National Association of Home Builders and Wells Fargo showed."Soft homebuilder sentiment is consistent with our view that housing starts will mostly move sideways for the next couple of quarters before starting to edge up slightly around year-end, when we expect mortgage rates to be lower as the (Federal Reserve) implements the first of two rate cuts we expect," Oxford Economics said in a note.Gold was up up 0.1% at $4,564.40 per troy ounce in Monday late-afternoon trade, while silver rose 0.3% to $77.80 per ounce.

Dow JonesNasdaq CompositeS&P 500$D$HD$LOW$NEE$NVDA$TGT$TJX$WMT

US Markets37d ago

Nvidia Likely to Top Estimates, Offer Strong Guide, Wedbush Says

Nvidia (NVDA) is expected to exceed Wall Street's first-quarter estimates and guide above consensus amid positive data points, Wedbush Securities said in a client note on Monday.The brokerage expects the technology bellwether to report earnings of more than $1.80 per share, ahead of its $1.74 estimate. Revenue is seen beating Wedbush's $78.01 billion first-quarter revenue estimate by at least $2 billion, according to the brokerage.Wedbush expects second-quarter EPS of $1.84 on sales of $82.12 billion. The company is scheduled to release its latest quarterly results Wednesday."We fully expect the leading supplier of (artificial intelligence) silicon will again exceed estimates and guide above Street given continued positive data points through (the calendar first quarter)," Wedbush analysts Matt Bryson and Antoine Legault said.The brokerage expects healthy AI infrastructure spending to likely continue through 2027."While there remain some potential industry-wide speed bumps (Middle East plans amidst the war, uncertainty around future opportunities in China), if anything, we see the potential/eventual resolution of these issues as catalysts for increased future spend," Bryson and Legault added.RBC Capital Markets last week projected Nvidia would deliver another strong quarter amid robust compute demand and issue an upbeat revenue guidance for the ongoing three-month period.Wedbush pointed out Nvidia's supply chain resilience amid industry-wide bottlenecks in areas like advanced logic, memory, optical transceivers and hard disk drives."During our conversations with a variety of supply chain participants, we have encountered numerous bottlenecks that are throttling (or threatening to throttle) builds and deployments for a variety of specific participants in the AI ecosystem," Bryson wrote. "(Nvidia), however, to date has not been among those struggling with supply chain."Wedbush reiterated its outperform rating on Nvidia's stock and maintained the $300 price target.Price: $222.05, Change: $-3.27, Percent Change: -1.45%

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US Markets37d ago

Oil Rises as US-Iran Deadlock Continues

Crude oil prices rose Monday amid lack of progress on US-Iran peace talks.Brent advanced 1.4% to $110.80 per barrel, while West Texas Intermediate futures were last up 1.6% at $107.06. Brent rose 7.9% last week, while WTI climbed about 10%.Iran has submitted its new proposal to end the war, but the White House believes it fails to offer meaningful improvements on the last offer, Axios reported Monday, citing a senior US official and a source briefed on the issue.The standoff has renewed fears of a military combat, with President Donald Trump set to convene a meeting of his top national security officials on Tuesday, according to the report.Iranian state media previously claimed that Washington had agreed to waive some oil sanctions. However, the US official denied such reports, according to Axios.A fragile ceasefire between Washington and Tehran appears to be holding, though the two sides are yet to finalize a framework to end the conflict despite a series of talks.Over the weekend, a drone strike caused a fire near the United Arab Emirates' Barakah nuclear energy plant. The facility can meet a quarter of the Gulf country's electricity needs, Al Jazeera reported Monday."Progress on US-Iran peace talks continues to be immaterial, with both parties expressing a willingness to resume overt hostilities if the talks fail," Tudor Pickering Holt Analyst Matt Portillo said in a note.Last week's talks between Trump and Chinese President Xi Jinping also failed to improve the prospects of a US-Iran deal."There had been hope (possibly misplaced) that China could use its influence over Tehran to break the deadlock between the US and Iran," ING Head of Commodities Strategy Warren Patterson said in a report on Monday. "If anything, re-escalation risks are increasing."

US Markets37d ago

Homebuilder Confidence Logs Surprise Gain Despite Continued Macro, Affordability Concerns

US homebuilder confidence unexpectedly rose this month despite elevated mortgage rates, macro uncertainty and continued affordability challenges, data from the National Association of Home Builders and Wells Fargo showed Monday.The housing market index, which covers new single-family homes, increased three points sequentially to 37 in May. The consensus was an unchanged 34 reading in a survey compiled by Bloomberg."The housing market remains soft as higher mortgage rates, rising gas prices and economic uncertainty related to the war in Iran continue to dampen buyer demand," NAHB Chairman Bill Owens said.Over the weekend, US President Donald Trump said "the clock is ticking" for Iran to make a deal. "They better get moving, fast, or there won't be anything left of them," Trump said in a social media post, underscoring the fragile nature of a recent ceasefire between the US and Iran.The index gauging sales expectations increased three points sequentially to 45 in May, the NAHB survey showed Monday. The measure charting prospective buyers gained three points to 25, while current sales conditions moved up three points to 40, according to the report.About 32% of homebuilders cut prices this month, compared with 36% in April. The average price reduction was 6% in May, up from 5% last month, while the use of sales incentives was 61% versus 60%."Recent increases for long-term interest rates will continue to hold back home buyer demand," NAHB Chief Economist Robert Dietz said. "Although some regional markets, including parts of the Midwest, are showing relative strength, the housing market continues to face significant affordability challenges."Last week, the Mortgage Bankers Association said mortgage applications in the US increased in the week prior as potential homebuyers returned to the market despite rising interest rates."Soft homebuilder sentiment is consistent with our view that housing starts will mostly move sideways for the next couple of quarters before starting to edge up slightly around year-end, when we expect mortgage rates to be lower as the (Federal Reserve) implements the first of two rate cuts we expect," Oxford Economics Lead US Economist Nancy Vanden Houten said in a report e-mailed toMonday.

US Markets37d ago

Investors Remain Cautious Amid 'Still-Sluggish' Restaurant Industry Demand, UBS Says

The US restaurant industry largely continues to face a "still-sluggish" demand, with the macro backdrop posing risks and offering limited visibility into the outlook, UBS Securities said Monday.Industry growth improved last month sequentially amid stronger fast casual trends, though restaurants' share of wallet and "share of stomach" both dropped "modestly," UBS analysts, including Dennis Geiger, said in a note to clients."Our meetings and investor discussions last week continued to highlight more cautious sector sentiment, reflecting broadly still-sluggish industry demand and macro conditions creating risk and limited visibility into outlook," Geiger wrote.Investor concerns are even greater toward quick-service restaurants, or QSRs, which generate a substantial portion of their revenue from low-income consumers and face more significant macro risks, according to the note."While many investors highlighted potential opportunities from valuation pressures across much of the sector and a potentially oversold group, conviction appears limited," Geiger said.In the QSR segment, sales and traffic improved in April compared to the month prior, UBS said, citing industry data."Our latest QSR franchisee discussions continue to highlight performance bifurcation among brands, with gas prices and broader macro challenges negatively impacting visits/spend for many brands," Geiger said. However, certain brands such as Taco Bell of Yum Brands (YUM) and Burger King of Restaurant Brands International (QSR) "appear to maintain significant momentum."Consumer confidence improved across all income groups this month, UBS said, citing its latest survey. "Encouragingly, consumers reported a greater willingness to spend overall, including on dining out," Geiger said."We anticipate underlying restaurant demand and share of wallet trends should be largely consistent through (2026) driven by fiscal stimulus benefits, value efforts, menu innovation, and other initiatives, with potential risks from elevated gas prices and other factors that could pressure consumer sentiment," Geiger said.Price: $152.22, Change: $+2.25, Percent Change: +1.50%

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US Markets37d ago

Williams-Sonoma Seen Reporting Strong Comparable Sales Amid Cost Headwinds, RBC Says

Williams-Sonoma (WSM) is expected to report stronger-than-expected comparable sales growth for the fiscal first quarter, though cost headwinds likely dampened the home goods retailer's earnings, RBC Capital Markets said in a note.RBC upgraded Williams-Sonoma's comparable sales outlook to a 3.3% rise from its prior forecast that called for a gain of 2.8%, according to a Monday client note. The consensus is for same-store sales growth of 3.1%, the brokerage said.The company is scheduled to release its latest quarterly results next week.The brokerage said tax refunds and generally favorable spring weather likely drove "meaningful" quarter-over-quarter acceleration in transaction and site traffic data for Williams-Sonoma. This implies widening market share gains versus category declines in the quarter, RBC analyst Steven Shemesh wrote in the note.However, RBC now projects Williams-Sonoma's adjusted earnings of $1.82 for the first quarter, down from its previous estimate of $1.89 and compared with the Street's $1.81 view. Factors including higher fuel and transportation costs likely hurt gross margins, Shemesh said.The brokerage expects the retailer to reiterate its full-year outlook, but cautioned that it may not be able to achieve the high end of the guidance. In March, Williams-Sonoma said it expected annual net revenue to rise by 2.7% to 6.7% and comparable revenue to grow by 2% to 6%.For fiscal 2026, RBC now anticipates the company reporting comparable sales growth of 2%, down from its previous estimate of 3.2%. Adjusted EPS is pegged at $8.95, versus the brokerage's prior forecast of $9.07. The Street is looking for same-store sales growth of 4.4% and non-GAAP EPS of $9.28."With our channel work pointing to deteriorating category demand beginning in April and fuel/transportation costs ticking higher, we're lowering our (second- to fourth-quarter) estimates," according to Shemesh.RBC lowered its price target on Williams-Sonoma's stock to $191 from $213, with an outperform rating.Price: $167.43, Change: $-1.21, Percent Change: -0.72%

$WSM

US Markets37d ago

IMAX on Track to Reach $1.4 Billion in Box Office Proceeds Despite Headwinds, B. Riley Says

IMAX (IMAX) seems on track to hit $1.4 billion in global box office collections this year despite a series of headwinds, including certain film delays, B. Riley Securities said in a note emailed Monday.IMAX's shares lost 9% year to date through Friday, and have lost 22% from a late-February high, B. Riley Managing Director Drew Crum wrote.The release schedule of local-language films "Peng Hu" and "Once Upon a Time in the Middle East" shifted from Chinese New Year to the summer, according to the research note. The delay is expected to reduce the two movies' contribution to $20 million from $30 million previously projected, Crum said.Meanwhile, Netflix's (NFLX) "Narnia: The Magician's Nephew" got pushed to February next year, and will now no longer be an IMAX exclusive, according to B. Riley. Additional setbacks include CEO Richard Gelfond's medical leave that ended in May.Late last month, IMAX affirmed its 2026 guidance, including $1.4 billion in global box office proceeds."While the margin for error has narrowed, we still see a path to a ($1.4 billion) global box office, a key piece to the company's 2026 guidance," Crum said. "We believe progress towards achieving this financial goal should be evident in the current quarter and (second half), thereby helping to improve investor sentiment and supporting higher share prices going forward."The brokerage pointed to outperformance of second-quarter films "Project Hail Mary" and "Michael" and a potential upside for local-language content among factors driving optimism for 2026.B. Riley estimates annual revenue growth at 8% and 9% in 2026 and 2027, to $444.5 million and $485 million, respectively. Analysts in a FactSet poll expect $442.6 million this year and $472.7 million in 2027.The brokerage maintained its buy rating on IMAX's stock, with a $46 price target.Price: $34.47, Change: $+0.88, Percent Change: +2.60%

$IMAX$NFLX

US Markets37d ago

Home Depot, Lowe's Seen Trimming Full-Year Outlook as Macro Pressures Build, Oppenheimer Says

Home Depot (HD) and Lowe's (LOW) are likely to lower their full-year guidance as the home improvement retailers face pressure from weak consumer sentiment, Oppenheimer said Monday in a report.The brokerage cut its estimates for fiscal first-quarter earnings and expects management at the companies to temper hopes for a second-half recovery. Home Depot is scheduled to release results on Tuesday, followed by Lowe's on Wednesday.The companies are expected to report "soft" results mostly in line with Wall Street forecasts, the report said. Citing recent data, Oppenheimer said the companies are unlikely to see notable and sustained sales growth recovery yet."While we remain upbeat upon underlying health of home improvement retail, we are becoming incrementally concerned that shorter-term macro headwinds may be turning more challenging, as rates shift higher, and confidence wanes," the report said.US consumer sentiment in May fell to an all-time low amid mounting inflation concerns, according to the University of Michigan, with cost pressures seen spreading beyond energy commodities as the Middle East conflict drags on. Annual inflation accelerated in April to the fastest pace in almost three years."While early in (fiscal 2026), we expect (Home Depot) and (Lowe's) to highlight an even more challenged macro, rising rates and moderating confidence, as reason to trim modestly financial expectations," the report said.In February, Home Depot guided for full-year adjusted per-share earnings to be flat to up 4% versus last year's result of $14.69, while sales are forecast to rise 2.5% to 4.5% and comparable sales flat to up 2%.Analysts in a FactSet poll expect non-GAAP EPS of $15.01, sales of $171.16 billion and same-store sales growth of 1.4%. In fiscal 2025, sales increased 3.2% to $164.68 billion, while comparable sales advanced 0.3%.Lowe's projects fiscal 2026 adjusted EPS of $12.25 to $12.75 on sales of $92 billion to $94 billion, up 7% to 9% from a year earlier. Comparable sales are expected to be flat to up 2%.The consensus on FactSet is for EPS of $12.58 on sales of $93.24 billion and same-store sales growth of 1.3%.Oppenheimer cut its first-quarter EPS estimate for Home Depot to $3.38 from $3.58, while analysts surveyed by FactSet expect $3.41.For Lowe's, Oppenheimer reduced its first-quarter EPS forecast to $2.96 from $3, versus the FactSet consensus of $2.97."Valuations for (the two stocks) have moderated meaningfully, suggesting more subdued near-term sentiment, likely lending support to shares, as fundamentals stay soft," the report said.Home Depot shares rose 1.7% in Monday trading, and Lowe's gained 1.6%.Price: $302.66, Change: $+5.15, Percent Change: +1.73%

$HD$LOW

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US Markets37d ago

Equity Markets Mixed as Trump Aborts Plan to Attack Iran

Dow JonesNasdaq CompositeS&P 500$D$HD$LOW$NEE$NVDA$TGT$TJX$WMT