Ten Stories Moving the Market

Ten Stories Moving the Market:

U.S. President Donald Trump said he was unconcerned about the political fallout of an extended ​conflict with Iran, and that Iranian leaders had miscalculated if they thought ‌the November midterm elections would force him into a deal – Reuters. (Why you should care – the White House is likely trying to encourage the government in Tehran it shouldn’t drag its feet on striking a deal)

U.S. forces conducted new military strikes against Iran after its military launched drones at commercial ships in the Strait of Hormuz, according to U.S. officials, even as Washington and Tehran continue their efforts to forge a diplomatic settlement to the conflict and keep a fragile cease-fire intact – WSJ. (Why you should care – the clash between drone strikes and diplomacy underscores how hard it is for Iran’s leadership to deliver a single, coherent message)

Marvell delivered a quarterly forecast that exceeded analysts’ estimates and boosted its outlook for the year, citing demand for AI data center chips; revenue will be roughly $2.7 billion in the second quarter compared to the consensus estimate for $2.6 billion – Bloomberg. (Why you should care – management said it’s raising the fiscal year 2027 and 2028 outlook based on significant AI demand)

HP beat analysts' estimates for second-quarter revenue and profit, helped by strong ​demand for AI-optimized personal computers; however, the company warned that rising memory costs could pressure margins before a rebound in 2027 – Reuters. (Why you should care - CFO Karen Parkhill said the company has taken actions to mitigate rising costs including a prioritization for higher-margin units)

Snowflake shares jumped almost 30% in late trading after the software maker gave a stronger-than-expected annual outlook and signed a $6 billion multi-year agreement to use Amazon’s cloud services and chips – Bloomberg. (Why you should care – the company said customers are increasingly using AI-assisted tools, potentially easing concerns around declining software demand)

The Pentagon announced a five-year, $9.7 billion ​agreement to consolidate Microsoft and ‌other enterprise software licenses scattered across the military services, the intelligence community, and ​the U.S. Coast Guard into ​a single contract vehicle, according to officials – Reuters. (Why you should care – the announcement ends duplicative spending and guarantees Microsoft an enterprise-wide foothold across the U.S. armed forces)

The White House is pursuing funding deals with a group of drone companies as part of its effort to increase domestic production and lower the costs of the increasingly vital weapons, according to officials – WSJ. (Why you should care – the deals are expected to be comprised of both debt and equity, giving the U.S. government potential stakes)

Meta Platforms has started the rollout of subscription plans for Facebook, Instagram and WhatsApp, and is testing new subscriptions for users of its AI chatbot as the company seeks to recoup some of the costs from its expensive AI buildout – WSJ. (Why you should care – the subscription plans for the company’s flagship products could help offset investor concerns about rising capital expenditures)

Federal Reserve Vice Chair Philip Jefferson said ‌the current setting of monetary policy is in the right place amid ongoing upside risks to the inflation outlook; he said the central bank is prepares to respond to economic developments ​based on the incoming data, the evolving outlook, and the balance ⁠of risks – Reuters. (Why you should care – Jefferson, a policy voter, said he still anticipates inflation risks will ease later this year)

Federal Reserve Governor Lisa Cook said inflation is headed in the wrong direction and she would be prepared to raise interest rates if that persists; Cook said five years of inflation above the Fed’s 2% target poses the risk that price pressures will become embedded into price- and wage-setting behavior – Bloomberg. (Why you should care – Cook, a monetary policy voter, said she still favors leaving interest rates unchanged for now)

Economic Calendar:

Earnings: ADSK, BBY, COST, DELL, MDB, NTAP, OKTA

Bank of Korea Monetary Policy Announcement for May

ECB’s Lane (Chief Economist) Speaks (3:15 a.m.)

ECB’s Lagarde (President) Speaks (3:20 a.m.)

BoE’s Breeden (Deputy Governor) Speaks (4:05 a.m.)

Eurozone – Consumer Confidence for May (5 a.m.)

Eurozone – Consumer Inflation Expectations for May (5 a.m.)

SNB’s Schlegel (Chairman) Speaks (7 a.m.)

ECB Meeting Minutes (7:30 a.m.)

U.S. – Building Permits for April (8:30 a.m.)

U.S. – GDP (Second Take) for Q1 (8:30 a.m.)

U.S. - Initial Jobless Claims (8:30 a.m.)

U.S. - Continuing Claims (8:30 a.m.)

U.S. – PCE for April (8:30 a.m.)

U.S. – Personal Income and Spending for April (8:30 a.m.)

Fed’s Williams (New York, Voter) Speaks (8:55 a.m.)

U.S. – New Home Sales for April (10 a.m.)

Bank of Canada Financial System Review (10 a.m.)

Bank of Canada Press Conference (11 a.m.)

ECB’s Schnabel (Board Member) Speaks (11:45 a.m.)

U.S. - Energy Information Administration Crude Oil Inventory Data (12 p.m.)

Treasury Auctions $44 Billion in 7-Year Notes (1 p.m.)

Fed's Balance Sheet Update (4:30 p.m.)