Dow Jones - 40,140.53 (-0.64%)

Nasdaq - 19,010.08 (+1.61%)

S&P 500 - 5,886.55 (+0.72%)

• A mixed bag. Most U.S. stocks went higher on Tuesday with tech stocks leading the rally. The latest consumer inflation report revealed easing prices last month. The S&P 500 was up about 0.7% and is now in the green on the year despite plunging most of the year over tariff woes. The NASDAQ soared higher about 1.8% on Tuesday while the Dow slipped 0.6%.
• S&P stages remarkable turnaround. The S&P 500 did something it hasn't done in over 40 years. It erased its 15% year-to-date loss in less than six weeks.
• CPI inflation data. Early Tuesday, the Labor Department's consumer price index, or CPI, rose 0.2% on the month, with an annual increase of 2.3%. That was cooler than the expected 0.3% monthly rise and 2.4% annual increase. Core CPI, excluding food and energy, climbed 0.2% in April, with a year-over-year increase of 2.8%. It was expected to rise 0.3% on the month with a year-over-year increase of 2.8%, according to Econoday.
• UnitedHealth plunged on the stock market today after suspending its outlook. The stock dropped 14% after suspending its 2025 outlook due to higher-than-expected medical expenditures. The company also announced a new chief executive.
• Nvidia's CEO saw his net worth climb. Nvidia's chief Jensen Huang's personal net worth exploded to around $120B on Tuesday, from $80B last year. The company agreed to sell hundreds of thousands of AI chips in Saudi Arabia. The company once again crossed a $3 trillion market cap during Tuesday's trading session.
• Palantir went higher. Shares jumped about 9% on Tuesday afternoon after the White House announced a $142 billion deal to supply weapons to Saudi Arabia from US defense firms.
• Coinbase bounced. Coinbase shares surged more than 18% on Tuesday as Wall Street cheered the inclusion of the first and only crypto exchange in the S&P 500.
• Boeing hit a 52-week high. Boeing shares hit a 52-week high on Tuesday as the plane maker is poised to benefit from President Trump's tariff negotiations.
• The benchmark 10-year Treasury yield went higher. It jumped on Tuesday, hitting its highest levels in over a month around 4.5%.
• Oil extended gains. West Texas Intermediate futures traded near $62.70 per barrel.
• Honda issued a dire warning. The automaker put out a warning, saying it expects a $3 billion hit to full-year profit from Trump's new auto duties.
• Hertz dropped. The rental car company's stock dropped nearly 7% in the wake of a deeper-than-expected first quarter loss. Hertz also flagged weaker demand amid a broader downbeat forecasts for US tourism.
• Chinese stocks faltered. Investors showed concerns that Beijing will pull back on measures to stimulate the economy.
• Travel stocks saw gains. Travel names like Carnival, Wynn Resorts, and Norwegian Cruise Line were among the biggest winners in Monday's rally, all climbing 8% or more on relief over lower tariffs. 
• Under Armour jumped 2.25% after reporting results. The company's results surpassed analysts' expectations for revenue and providing slightly higher-than-expected guidance for this quarter's earnings per share. 
• JD.com climbed 2.8% after earnings. Quarterly revenue grew more than expected at 16%, with Chinese stimulus measures sparking spending on electronics and other high-cost products, Bloomberg reported.
• FedEx rose on Amazon news. Amazon said FedEx will join other third-party providers on its "last mile delivery network."

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"Coinbase has gone from being in an intense litigation with the SEC just a few months back (later dropped by the SEC under the Trump regime) to being the latest addition to S&P 500." 

- Bernstein managing director Gautam Chhugani 

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Most Active Stocks

• Apple (AAPL)
• Nvidia (NVDA)
• Tesla (TSLA)
• Meta (Meta)
• Coinbase Global (COIN)
• Life360 (LIF)
• First Solar (FSLR)
• Archer Aviation (ACHR)
• Palantir Technologies (PLTR)
• Lucid Group (LCID)

Weekly Notables

Starbucks Barista Workers are Striking Over Dress Code

After implementing a new dress code on Monday, Starbucks found many of its employees staging a walk out. The walkouts have occurred at more than 50 US stores, Starbucks Workers United said. The union represents baristas at about 570 of the chain’s more than 10,000 company-operated locations in the US. The new dress code requires baristas to wear solid black tops, a change from prior practice that allowed any color. There are also new rules on the bottoms baristas can wear, among other changes.

Chime Reports Revenue Rise as Company Files for US IPO

Digital banking fintech firm Chime disclosed a rise in 2024 revenue in its IPO filing on Tuesday. The company has been one of the most anticipated IPOs of the year. Chime's revenue rose to $1.67 billion in the fiscal year ended 2024, up from $1.28 billion, a year earlier. "We led the 2017 Series B when few Silicon Valley investors believed, driven by our conviction that Chime could become a category-defining company," said Simon Wu from Cathay Innovation.

Global sales of electric and plug-in hybrid vehicles rose 29% YOY in April, with stable growth in China and Europe despite trade tensions, while North America recorded the first fall since last September. European EV sales of legacy auto groups outperformed those of Tesla.

Networking giant and cybersecurity solutions provider Cisco Systems is scheduled to announce its results for the third quarter of Fiscal 2025 after the market closes on Wednesday, May 14. The company is expected to gain from the demand for its artificial intelligence (AI)-enhanced infrastructure solutions and cybersecurity offerings. Analysts expect Cisco to report Q3 FY25 earnings per share (EPS) of $0.92, reflecting a 4.5% year-over-year growth. Revenue is estimated to rise about 11% to $14.05 billion.