Stocks Push Higher on Strength in Tech and a Solid US Retail Sales Report

The S&P 500 Index ($SPX) (SPY) today is up +0.44%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +0.49%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.60%.  June E-mini S&P futures (ESM26) are up +0.40%, and June E-mini Nasdaq futures (NQM26) are up +0.58%.

Stock indexes are pushing higher today, with the S&P 500 and Nasdaq 100 posting new all-time highs.  Strength in technology stocks is supporting gains in the overall market today, led by a +17% jump in Cisco Systems after it raised its full-year revenue and earnings forecast.  Stocks also benefited from the US-China summit in Beijing, where the US and China discussed various issues, including expanding market access for US businesses and purchasing US energy and agricultural products.  Reuters reported that the US and China are weighing a potential framework under which each country identifies about $30 billion in goods on which tariffs could be eased without threatening national security interests. 

Stocks maintained their gains today after US economic news showed that April retail sales rose as expected and after weekly jobless claims remained near historically low levels.

US weekly initial unemployment claims rose +12,000 to 211,000, showing a weaker labor market than expectations of 205,000. 

US Apr retail sales rose +0.5% m/m, right on expectations. Also, Apr retail sales ex-autos rose +0.7% m/m, right on expectations.

The US Apr import price index ex-petroleum rose by +0.7% m/m, stronger than expectations of +0.5% m/m.

WTI crude oil prices (CLM26) are down more than -1% today after OPEC+ said it plans a series of oil quota increases over the next few months, completing the return of halted oil production by the end of September.    The Strait of Hormuz remains essentially closed, as about a fifth of the world’s oil and liquefied natural gas transits through the strait.  On Wednesday, the International Energy Agency (IEA) said in a monthly report that global oil inventories declined at a rate of about 4 million bpd in March and April, and the market will remain “severely undersupplied” until October even if the conflict ends next month.  Goldman Sachs estimates that the current disruption has drawn down nearly 500 million bbl from global crude stockpiles, with the drawdown potentially reaching 1 billion bbl by June.

The markets are discounting a 4% chance of a -25 bp FOMC rate cut at the next FOMC meeting on June 16-17.

Earnings reports thus far in this reporting season have been supportive of stocks.  As of today, 83% of the 454 S&P 500 companies that reported Q1 earnings have beaten estimates.  Q1 S&P 500 earnings are projected to climb +12% y/y, according to Bloomberg Intelligence.  Stripping out the technology sector, Q1 earnings are projected to increase around +3%, the weakest in two years.

Overseas stock markets are mixed today.  The Euro Stoxx 50 is up +0.98%.  China's Shanghai Composite fell from a nearly 11-year high and closed down -1.52%.  Japan's Nikkei Stock Average fell from a record high and closed down -0.98%.

Interest Rates

June 10-year T-notes (ZNM6) today are up by +8 ticks.  The 10-year T-note yield is down -2.8 bp to 4.440%.  T-notes are climbing today after weekly US jobless claims rose more than expected, a dovish factor for Fed policy.  T-notes also have support from today’s decline in WTI crude oil prices, which lowers inflation expectations.  In addition, T-notes are moving higher today as bond dealers cover short positions placed in T-notes to hedge against the $125 billion of US government security sales from this week’s quarterly refunding. 

European government bond yields finished lower on Wednesday.  The 10-year German Bund yield is down by -4.4 bp to 3.056%.  The 10-year UK gilt yield is down -4.4 bp to 5.021%.

UK Mar manufacturing production unexpectedly rose +1.2% m/m, stronger than expectations of a -0.1% m/m decline and the largest increase in four months.

ECB Governing Council member Martins Kazaks said, "Oil prices are higher, we see that it's gradually starting to push inflation up, and if inflation expectations start to deteriorate, then the ECB will be forced to raise interest rates."

Swaps are discounting a 79% chance of a +25 bp ECB rate hike at its next policy meeting on June 11.

US Stock Movers

Chipmakers are climbing today on optimism that the summit between President Trump and China’s Xi Jinping could lead to a series of trade deals, especially around semiconductors. Broadcom (AVGO) and Marvell Technology (MRVL) are up more than +3%, and Nvidia (NVDA) is up more than +2%. Also, Applied Materials (AMAT), KLA Corp (KLAC), and Lam Research (LRCX) are up more than +1%. 

The weakness of software stocks today is a negative for the overall market.  Atlassian Corp (TEAM) and Datadog (DDOG) are down more than -2%.  Also, Autodesk (ADSK), Oracle (ORCL), ServiceNow (NOW), Adobe Systems (ADBE), and Cadence Design Systems (CDNS) are down more than -1%.

Stubhub Holdings (STUB) is up more than +20% after reporting Q1 revenue of $446 million, better than the consensus of $425 million.

Cisco Systems (CSCO) is up more than +14% to lead gainers in the S&P 500, Nasdaq 100, and the Dow Jones Industrials after reporting Q3 results that beat expectations and raised its full-year forecast. 

Take-Two Interactive Software (TTWO) is up more than +6% on an unconfirmed report that said the company’s highly anticipated Grand Theft Auto VI game will soon be available for pre-order.

Commercial Metals (CMC) is up more than +2% after UBS upgraded the stock to buy from neutral with a price target of $89. 

Starbucks (SBUX) is up more than +1% after TD Cowen upgraded the stock to buy from hold with a price target of $120.

Doximity (DOCS) is down more than -23% after forecasting 2027 revenue of $664 million to $676 million, well below the consensus of $698.9 million.

Oklo (OKLO) is down by more than 5% after announcing its intent to offer up to $1 billion in shares of its common stock.   

Akamai Technologies (AKAM) is down more than -4% after agreeing to buy LayerX for about $205 million, saying the acquisition will cut full-year adjusted EPS by about 12 cents.

Kodiak Gas Services (KGS) is down more than -3% after offering shares for $70 to $72 per share in an overnight share sale, below Wednesday’s closing price of $75.74. 

Camden Property Trust (CPT) is down more than -1% after Scotiabank downgraded the stock to sector underperform from sector perform with a price target of $95. 

Earnings Reports(5/14/2026)

Applied Materials Inc (AMAT), Bullish (BLSH), Fermi Inc (FRMI), Globant SA (GLOB), Liberty Live Holdings Inc (LLYVA), NIQ Global Intelligence Plc (NIQ), NU Holdings Ltd/Cayman Islands (NU), Versant Media Group Inc (VSNT), Viking Holdings Ltd (VIK), YETI Holdings Inc (YETI).