Markets & Futures

• Futures: All down slightly.

  • S&P 500 down ~0.3%.

  • SPY hit a pre-market low ~0.8% drop but rebounded.

• Trigger: Trump’s Truth Social post criticizing China for violating a trade agreement. He hinted at ending the "Mr. Nice Guy" approach, adding to trade tension fears.

• FXI (iShares China Large-Cap ETF) fell 1.3% in reaction.

---

Economic Data

• Inflation (PCE - April):

  • +0.1% MoM, +2.1% YoY — lowest in 4 years, aligned with Fed’s 2% goal.

  • Core PCE: +2.5% YoY.

• Personal Income: +0.8% (above 0.3% estimate).

• Spending: +0.2% (met views).

• Suggests increased savings behavior.

• Consumer Sentiment (U. of Michigan): Last read was 50.8, new estimate: 52 (awaiting updated numbers).

---

💵 Bonds & Commodities

• 10-Year Treasury: Flat at 4.41%.

• 30-Year Treasury: 4.92%, showing a steep curve.

• Crude Oil: Sideways, at $60.91/barrel, down 15% YTD.

---

Earnings Highlights

• Zscaler (ZS):

  • Beat on EPS ($0.84), revenue up 23%, billings +25%.

  • Strong AI product adoption, R&D spending +36%.

  • Stock spiked AH to $270, settled at ~$262.

  • New CFO announced.

• Dell:

  • Mixed report: EPS missed by 14 cents, but raised FY26 guidance.

  • Revenue beat, but stock fell 2% AH.

• Marvell (MRVL): Small beat, stock down 3% AH.

• Costco (COST):

  • EPS beat by 4 cents, but same-store sales missed.

  • Stock down 1% pre-market.

• Gap (GPS):

  • Sales up 2%, Old Navy up 3%.

  • Warned of possible $250–300M tariff impact from China if rates stay.

  • Has plan to mitigate half the loss.