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It’s a big morning for data ahead of the stock market open today. Employment, housing and manufacturing data join key earnings reports as investors sort through the importance of higher bond yields and whether a peace agreement is really forthcoming from the Iran War. Early trading is in the red by -0.30% (Dow) to -0.66% (Russell 2000).
Jobless Claims Steadily Lower: 209K, 1.78M
Like any normal Thursday morning, Weekly Jobless Claims are hitting the tape today. Initial Jobless Claims ticked down to +209K from a slightly upwardly revised +212K the prior week. These remain on the low side of the range going back to Labor Day of last year — +259K — and late April’s multi-decade low of +190K.
Continuing Claims bumped up a tad, but to the exact headline numbers we saw last week: +1.782 million. The previous week was adjusted downward to 1.776 million, and is now the fourth-straight sub-1.8 million print. This is the first such stretch at these low levels in two years.
Housing Starts/Building Permits Improve in April
New Housing Starts for April came in nicely ahead of expectations: +1.465 million seasonally adjusted, annualized units versus +1.42 million anticipated. That said, it’s still the softest month since February; the March revision improved slightly to +1.507 million. Building Permits, conversely, posted its best headline since February: +1.442 million, versus +1.39 million analysts were looking for.
However, the breakdown among different styles of homebuilding is key: all of the gains last month came on the Multi-family side; Single-family homes slid -9% on new starts, -5.5% on permits. Multi-family, on the other hand, rose +14.3% on new starts and +11.5% on permits. High mortgage rates are keeping demand lower for single-family homes; multi-family is ratcheting up production from its lowest levels since 2011.
Philly Fed Slips to Negative in May
The May Philly Fed Manufacturing Index is also out this morning. It’s the first negative print of 2026, -0.4%, and below expectations for +19.0. This follows the strongest month since January of 2025 at an unrevised +26.7. Prices paid came down for the month as well, which is something of a deflationary point, while business owners in the country’s 6th biggest city (Philadelphia) see business conditions improving six months from now.
Q1 Earnings at a Glance: WMT, AAP
Walmart WMT posted Q1 results this morning, slightly outpacing earnings results by a penny to $0.66 per share, on $177.75 billion in revenues which improved on the Zacks consensus by +1.83% and the year-ago tally of $165.6 billion. Shares are down -3.5% ahead of the opening bell, dialing back some of the biggest-of-the-Big-Box-retailer’s gains of +17.5% year to date. Guidance was a tad shaky, taking higher fuel costs into account. For more on WMT’s earnings, click here.
Advance Auto PartsAAP posted a big earnings surprise in its Q1 report this morning: +97% to $0.77 per share (the Zacks consensus had been $0.39). The company also posted its best sales growth in five years to $2.61 billion, a +2.08% positive surprise above expectations. AAP’s margin recovery turnaround plan appears on-point from this vista. For more on AAP’s earnings, click here.
Williams-SonomaWSM shares are up +3% on its Q1 earnings release ahead of the open: earnings of $1.93 per share easily surpassed the $1.80 analysts were expecting, while revenues of $1.81 billion narrowly bettered the $1.80 billion in the Zacks consensus. Comps rose +4.8%, with revenue growth leading at its West Elm stores: +8.5%. Shares are up modestly year to date, but off its all-time highs back in February of this year.
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Brigit subscription growth, Acima digital partnerships, and steadier Rent-A-Center execution support diversified earnings and cash generation through 2026 for shareholders.
AI adoption, enterprise wins, strategic partnerships, and expanding usage model support growth, while improving financial profile enhances long-term operating leverage potential.
Strength in the Connected Devices and Software & Services units and accretive acquisitions bode well for Axon. Strategic partnerships also hold promise.
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.
Robust repair and remodeling activity, strength in commercial construction market, manufacturing expansion and shareholder returns support Griffon’s growth outlook.
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.
AI infrastructure spending shifts toward Applied Materials’ core markets, while services, new products and partner programs support durable value capture growth.
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Persistently mounting expenses due to higher commission fees are likely to limit KKR & Co.’s bottom-line growth. Its unfavorable ROE compared with the industry’s average is a concern.
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.
Large operating losses and higher investment spending, complex deals, roadmap deadlines, and acquisition execution can keep volatility elevated near-term valuation.
Soft housing turnover, energy-driven inflation and intense competition restrain volumes and pricing, while currency and restructuring costs add risk ahead.
General Mills faces weak demand, margin pressure, inventory disruptions and elevated promotions, weighing on performance and limiting near-term recovery visibility.
Apple Intelligence integration, record Services, expanding enterprise tools, and payments reach support Apple’s recurring revenue, backed by ongoing shareholder capital returns.
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.
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