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Market indexes advanced strongly off a slightly higher open this morning, with news that a deal to end the war in Iran may be within reach. A “letter of intent” to end the war following 30 days of negotiations has sent a surge of positive sentiment through the stock market. The Dow gained +645 points, +1.31%, the S&P 500 grew by +79 points, +1.08%, the Nasdaq +399, +1.54%, and the small-cap Russell 2000 +70 points, a gaudy +2.56%.
Time will tell how this all transpires, and last we heard there are some real disagreements regarding uranium enrichment, the Strait of Hormuz, etc. that may well be sticking points somewhere within the 30 days. But this war, which dates back to late February, would be happily ended by both the U.S. and Iran at this stage.
NVIDIA Reports Another Record Revenue Quarter
The world’s largest company by market cap ($5.38 Trillion and counting), NVIDIANVDA once again outperformed its lofty expectations for Q1 after today’s close. Earnings of $1.87 per share surpassed estimates by a solid dime, and up +140% year over year from $0.81 in the year-ago quarter. Revenues surged to a new record: $81.6 billion in the first three months of the year, +85% from Q1 last year.
The AI infrastructure business, one might say, was booming last quarter. Data Center grew by +92% year over year to $75.2 billion, with Compute revenue +77% to $60.4 billion, +18% quarter over quarter. Data Center Networking rose +199% from a year ago to $14.8 billion, +35% quarter over quarter. The company also announced an $80 billion share repurchase program, and upped their dividend a penny to $0.25 per share.
CEO Jensen Huang called this “the largest infrastructure expansion in human history,” and by dollar amount he’s probably right. Next-quarter revenues are expected to jump to $91.0 billion (the Zacks consensus had been for $84.1 billion), and this doesn’t include whatever data center compute revenues they may obtain from China in the quarter. To quote Mel Brooks, “It’s good to be da king!”
Other Earnings Reports After the Close: URBN, ELF, INTU
Urban Outfitters URBN reported a solid Q1 this afternoon, with earnings of $1.30 per share nicely above the $1.12 projected, and swinging to growth year over year. Revenues of $1.48 billion up +11.4% from the prior year quarter. Free People grew +9.8%, Urban Outfitters flagship brand was +9.3%, and Anthropologie gained +1.9%. Shares are not up on this news, however, as the specter of tariffs remain.
e.l.f. BeautyELF posted an impressive fiscal Q4 after today’s close, beating on earnings by 3 cents to $0.32 per share on $449.3 million, up +35% from the prior-year quarter. The rhode acquisition assisted the company’s revenue gains, and the company came out ahead on its yearly numbers. It also expects improved growth in the new fiscal year.
IntuitINTU also performed better than expected in its fiscal Q3 after the close, with earnings of $12.80 up +10% year over year and ahead of the $12.48 per share in the Zacks consensus. Revenues also grew +10% from the prior year quarter to $8.6 billion, ahead of the $8.52 billion projected. Consumer revenues grew +8%, including +7% for Turbo Tax and +15% for Credit Karma.
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The proximity of Murphy USA’s fuel stations to Walmart supercenters helps the company to leverage the strong and consistent traffic that these stores attract.
West Pharmaceutical Services (WST)Upgraded: 05/19/26
High-value mix, GLP-one momentum, and global quality upgrades support growth, while capital returns and capacity execution improve durability over time.
Strength in the Connected Devices and Software & Services units and accretive acquisitions bode well for Axon. Strategic partnerships also hold promise.
Urban Outfitters is poised for growth on the back of its decent Retail segment, merchandising improvements and store-rationalization efforts. Its FP Movement initiative also bodes well.
Columbia Sportswear gains momentum with its ACCELERATE strategy, strong brand innovation, cost-efficiency programs and solid financial health, positioning it for sustained growth ahead.
Automation-led product design, expanding global capability, disciplined sales execution and capital returns support PAYC’s sticky client relationships and durable longer-term growth.
Five Below’s strategic refocus on its core demographic pre-teens and teens form a strong foundation for growth. Its ambitious store expansion strategy stands out as a significant growth driver.
Lower yield outlook, softer close-in demand, execution gaps, fuel volatility, heavy capex and high leverage reduce near-term visibility for shareholders.
High labor costs, Boeing and Airbus-related delivery delays, apart from share price volatility and high fuel costs represent the main headwinds at UAL.
Main Street’s expansion strategies will likely raise operating expenses in the near term, which is expected to hamper the bottom line. Regulatory constraints pose another headwind.
American Eagle Outfitters (AEO)Downgraded: 05/16/26
American Eagle has been struggling with headwinds related to the consumer and macroeconomic operating landscape. In addition, stiff competition in the industry remains a concern.
Regulatory outcomes, customer concentration and project execution, and large financing needs could materially limit returns if growth or recovery lags.
Large operating losses and higher investment spending, complex deals, roadmap deadlines, and acquisition execution can keep volatility elevated near-term valuation.
Labor and supply-chain issues are likely to hurt Apogee’s margins. Elevated interest and healthcare costs are also likley to impact the company's performance in the ongoing quarters.
General Mills faces weak demand, margin pressure, inventory disruptions and elevated promotions, weighing on performance and limiting near-term recovery visibility.
American Eagle is well placed on cost-reduction efforts and brand progress. In the second half, the company expects to cycle tariffs and advertising investments.
Innovative Medicine unit is showing a growth trend, driven by existing products like Darzalex, Tremfya and Erleada and continued uptake of new launches, including Spravato, Carvykti and Tecvayli.
Advertising scale, broader entertainment formats, and technology-led product upgrades support revenue growth while disciplined margins and buybacks add cash durability.
Kroger drives growth with digital expansion, private label success, fresh offerings and strategic partnerships, while investments in AI and value creation fuel long-term scalability.
Align Technology’s robust product line, balanced growth across all channels and consistent focus on international markets to drive growth bolster our confidence in the stock.
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