Stocks ended higher again yesterday, with the big three indexes (Dow, S&P 500 and Nasdaq) closing at new record highs. The small-cap Russell 2000 joined the party as well with a new all-time high of their own.

It was announced yesterday that the U.S. and Iran have entered into a "memorandum of understanding," which extends the formal ceasefire for 60 days, and continues negotiations on Iran's nuclear program. It also would begin the process of reopening the Strait of Hormuz with Iran removing their mines within 30 days, followed by the U.S. gradually lifting their naval blockade.

The sticking point, of course, is Iran's nuclear program, their uranium stockpiles, and future enrichment. Negotiations are to continue during that 60-day period.

However, the deal is not yet official, as it's been reported that President Trump wants "a couple of days to think about it" before deciding one way or the other.

After the close yesterday, Dell reported earnings and posted a positive EPS surprise of 59.87%, and a positive sales surprise of 23.62%. That translated to a quarterly EPS growth rate of 213.5% vs. this time last year, and a sales growth of 87.5%. They reported record AI server orders and a growing AI-optimized backlog. Dell's COO said the "AI opportunity shows no signs of slowing," and that they are growing at the "fastest pace since we returned to the public markets in 2018." They raised their full-year revenue guidance to a midpoint of $167B (up 19.3% over the consensus for $140B). And they raised Q2 revs up to a midpoint of $44.5B. They also raised EPS guidance to $4.80 (+/- 10 cents), which is up 62.2% above the consensus. They were up 3.84% in the regular session before earnings, and jumped by more than 38% in after-hours trade following earnings.

NetApp also reported after the close and posted a positive EPS surprise of 7.05%, and a positive sales surprise of 4.51%. That equated to a quarterly EPS growth rate of 25.9%, and a sales growth of 12.7%. They too cited increasing AI demand for their exceptional performance. They raised full-year rev guidance to $7.45B midpoint (up 3.47% above estimates), and full-year EPS to $8.85 midpoint (up 7.27% above estimates). They were off -0.24% in the regular session, but rallied more that 14% in after-hours.

Aiding to the rally was yesterday's Personal Consumption Expenditures (PCE) index, which is the Fed's preferred inflation gauge. Headline inflation was up 0.4% m/m, easing from last month's 0.7%, and under expectations for 0.5%. The y/y rate came in at 3.8%, up from last month's 3.5%, but in line with views. The core rate (ex-food & energy) was up 0.2% m/m, also easing from last month's 0.3% pace, and under the consensus for the same. The y/y rate was at 3.3%, up from last month's 3.2% pace, but in line with expectations.

Yesterday's Q1'26 GDP estimate (second estimate of three) came in at 1.6%, off from last month's first estimate for 2.0%, but not far off of Q4'25 of 1.8%.

And the Corporate Profits report for Q1 showed y/y after tax profits up 10.4% vs. last quarter's 5.7%. With Inventory & Consumption Adjustments, it's up 12.0% vs. last quarter's 6.0%.

Today we'll get the International Trade in Goods Report, Retail Inventories, Wholesale Inventories, and the Chicago PMI.

With one more day to go, all of the majors are up for the week. And we'll see if they can extend those gains today.

Best,