📊 Market Overview
On Thursday, the S&P 500 rose 0.2%, the Dow climbed 0.6% to a new all-time high, and the Nasdaq added 0.1% — all boosted by reports of progress in negotiations toward a deal with Iran. The biggest driver was renewed optimism around geopolitical diplomacy, though Secretary of State Marco Rubio cautioned against excessive optimism. Today, watch for after-hours earnings reactions from Zoom, Workday, and Take-Two Interactive — all three beat expectations last night.
📊 Market Snapshot
The Dow hit a record high on Iran deal hopes, but rising fuel costs are quietly squeezing small businesses and big retailers like Walmart — keep an eye on what consumers are actually spending.
📈 The Big Picture
Markets rallied on hopes that the U.S. and Iran are moving closer to a deal, which could eventually ease oil prices. But underneath the optimism, cracks are showing: Walmart surprised the market by cutting its forecast, sending its stock down 7%. The reason? Rising fuel prices are hitting consumer spending. Analysts at Bank of America report that fuel costs for small businesses have surged over 30%. While large companies can absorb higher costs, smaller businesses are struggling.
Meanwhile, earnings season delivered strong results after the bell. Zoom beat revenue and profit estimates, with AI Companion users up 184% year-over-year. Workday also topped forecasts, doubling the number of customers using its AI agents. If you hold tech or growth stocks, these AI-driven beats suggest the trend of companies monetizing artificial intelligence is accelerating.
📖 Term of the Day
EPS (Earnings Per Share) — a company’s profit divided by the number of its shares, telling you how much money a company earned for each share you own.
Why you care today: Zoom reported adjusted EPS of $1.55 versus the $1.42 Wall Street expected — a sign the company is earning more per share than anyone predicted.
💼 Watchlist: 3 Stocks to Know Today
Zoom Video Communications (ZM) — “The Comeback Kid”
Zoom beat expectations on both revenue ($1.239B vs. $1.22B expected) and EPS ($1.55 vs. $1.42 expected), with AI usage surging 184%. KeyBanc upgraded its rating from Underweight to Sector Weight, and the stock was up 7.55% in pre-market trading.
Futu Holdings (FUTU) — “The Caution Sign”
Morgan Stanley warned that FUTU shares could drop significantly after China’s securities regulator imposed new restrictions. Mainland China customers — while under 20% of assets — may contribute roughly 20% of revenue and 20-30% of profits, and existing mainland accounts must close within two years.
Workday (WDAY) — “The AI Accelerator”
Workday posted Q1 revenue of $2.542B, beating the $2.52B estimate, and adjusted EPS of $2.66 versus $2.52 expected. The number of customers using AI agents built by Workday doubled in the quarter — and the stock jumped 7.51% in pre-market.
💬 Esther’s Take
