Trending Market News

SpaceX is heavily dependent on its Starlink satellite internet business as it prepares for a Nasdaq listing, with the connectivity unit generating 61% of total revenue ($11.39 billion) in the most recent year and serving as the company's only profitable division. While SpaceX is known for rocket launches and AI ventures, Starlink produced $4.42 billion in profit while other units posted losses, making it the critical growth engine for the company.

• Starlink's user base more than doubled to 10.3 million in Q1 year-over-year, operating over 10,200 satellites across 160+ countries, with SpaceX seeking FCC approval to launch up to 1 million satellites
• The connectivity unit increased to 69% of revenue in Q1 2026, while rocket launches lost $657 million and AI operations had a $6.35 billion deficit; total capex reached $10.1 billion in Q1 with $7.7 billion allocated to AI
• Starlink faces regulatory challenges in multiple countries including Namibia, Taiwan, and South Africa over foreign ownership rules, plus technical concerns about satellite lifespan (3-5 years) and space debris risks from constellation expansion

Parker-Hannifin is acquiring aerospace and defense component maker Circor from private equity firm KKR for $2.55 billion. The deal, expected to close in the second half of 2026, will strengthen Parker-Hannifin's position in high-margin aerospace systems. KKR will retain ownership of Circor's naval and industrial businesses.

• Purchase price of $2.55 billion for Circor, which manufactures components for commercial and military aircraft, missile systems, and naval vessels
• Transaction expected to close in second half of 2026, with KKR maintaining ownership of naval and industrial business units
• Acquisition aims to enhance Parker-Hannifin's presence in high-margin aerospace systems market

Anthropic is in early-stage discussions to rent servers powered by Microsoft's proprietary AI chips for complex workloads, according to The Information. The potential partnership would represent a major win for Microsoft as it seeks to compete with Alphabet and Amazon in developing alternatives to Nvidia's dominant AI chips. The talks may not result in an agreement.

• Microsoft is developing its own AI chips to challenge Nvidia's dominance in the AI hardware market, following similar efforts by rivals Alphabet and Amazon
• Anthropic, maker of the Claude AI assistant, would use Microsoft's custom chips for complex computational workloads if a deal is reached
• The discussions are still in early stages and neither Microsoft nor Anthropic has confirmed the talks, which may not lead to a final agreement

Oil prices jumped more than 2% on Thursday after Iran's supreme leader directed that the country's enriched uranium must remain domestic, complicating ongoing diplomatic efforts between Tehran and Washington. WTI crude rose 2.4% to $100.57 per barrel while Brent advanced nearly 2% to $107.05 per barrel.

• Ayatollah Mojtaba Khamenei issued a directive prohibiting Iran's enriched uranium from being shipped abroad, according to two senior Iranian sources
• WTI crude reached $100.57 per barrel (up 2.4%) and Brent crude hit $107.05 per barrel (up nearly 2%) by 8:34 a.m. ET
• The directive is viewed as complicating peace talks with the U.S., coming after President Trump called off imminent airstrikes to allow more time for diplomacy

Netflix will begin streaming 'The Breakfast Club' radio show daily starting June 1, marking its first daily live show. The nearly three-hour morning program, hosted by Charlamagne tha God, DJ Envy, and Jess Hilarious, will air simultaneously on Netflix and over 100 radio stations through partner iHeartMedia. This expansion reflects Netflix's strategic push into live programming to build daily viewing habits with cost-effective, recurring content formats.

• Netflix viewers will receive an uninterrupted version with exclusive behind-the-scenes material and bonus segments aired during radio commercial breaks
• 'The Breakfast Club', launched in 2010, has featured high-profile guests including former presidents Barack Obama and Joe Biden, VP Kamala Harris, and musicians Kendrick Lamar and Alicia Keys
• The deal builds on a December partnership for exclusive video podcasts and represents Netflix's strategy to adapt established audio franchises into video content for global audiences

Ralph Lauren exceeded Wall Street's fourth-quarter revenue expectations on May 21, posting $1.98 billion versus the estimated $1.85 billion. The luxury retailer's performance was driven by strong demand for high-priced items like Polo shirts and cable-knit jumpers among affluent consumers, leading to a positive stock market reaction.

• Fourth-quarter revenue reached $1.98 billion, beating analyst estimates of $1.85 billion
• Resilient demand from wealthy shoppers for premium-priced apparel drove the outperformance
• The company forecasts constant currency revenue growth of mid-single digits (around 4% to 5%) for the coming year

QatarEnergy, ExxonMobil, and Egypt's government signed a memorandum of understanding to study developing Cyprus gas discoveries using Egypt's underutilized LNG infrastructure. The deal positions Egypt as a potential Eastern Mediterranean gas hub. QatarEnergy currently faces significant capacity constraints after Iranian attacks damaged its facilities and the Strait of Hormuz closure disrupted shipping routes.

• The agreement aims to leverage Egypt's existing but underutilized liquefaction plants and gas infrastructure to commercialize Cyprus gas discoveries
• QatarEnergy has 12.8 million tons per year of LNG capacity sidelined for 3-5 years after Iranian attacks damaged 2 of its 14 LNG trains in March
• The Strait of Hormuz, which previously carried roughly one-fifth of global oil and gas supplies, is effectively closed due to ongoing conflict, preventing QatarEnergy from shipping LNG

Stellantis unveiled a five-year turnaround plan worth 60 billion euros ($69.7 billion) under CEO Antonio Filosa, targeting positive free cash flow and 6 billion euros in annual cost savings by 2028. The investment will fund over 60 new vehicle launches and 50 major model refreshes across its 14 automotive brands, following significant losses in 2024 including a 22 billion euro charge related to its electric vehicle strategy.

• The company will allocate 36 billion euros to launch more than 60 new vehicles and refresh 50 models, covering EVs, hybrids, and traditional engines across its brand portfolio
• Stellantis targets 6 billion euros in annual cost savings by 2028 while maintaining all 14 automotive brands, though DS and Lancia operations will be folded into Citroen and Fiat respectively
• The plan follows a difficult 2024 that included a 22 billion euro charge as the automaker pivoted away from its all-electric vehicle strategy

Walmart issued a worse-than-expected financial outlook for fiscal 2027 and Q2 as high gas prices strain consumer spending power. The retailer beat revenue expectations in Q1 with $177.75 billion in sales, but warned that shoppers will face more pressure as the cushion from higher tax returns fades. CFO John David Rainey indicated consumer pressures could intensify in the current quarter.

• Walmart faced a $175 million headwind from higher fuel prices in Q1, with expectations for even larger impact in Q2 if gas prices remain elevated
• Q1 revenue rose 7% year-over-year to $177.8 billion, beating expectations of $174.98 billion, with global e-commerce up 26% and advertising business up 37%
• Finance chief warned that tax refund support is ending and consumers will feel more pressure from high fuel prices in Q2, despite the retailer maintaining its guidance

Eli Lilly announced that its experimental obesity drug retatrutide achieved 28.3% average weight loss over 80 weeks in a late-stage trial, with over 45% of participants losing 30% or more of their body weight. The drug, nicknamed 'triple G' because it activates three hormone receptors, could launch next year pending regulatory approval and represents Lilly's effort to dominate the growing obesity medication market alongside its existing drug Zepbound and competitor Novo Nordisk's Wegovy.

• Retatrutide produced weight loss comparable to bariatric surgery, with patients on extended two-year treatment losing just over 30% of their weight on average
• The drug activates three hormone receptors (GLP-1, GIP, and glucagon) and has shown superior weight loss results compared to Lilly's and Novo Nordisk's other obesity medications
• Side effects included dysesthesia (abnormal skin sensation) in 12.5% of patients on the 12mg dose versus 0.9% with placebo, though Lilly stated side effects were on par with other GLP-1 medications

The Trump administration is awarding $2 billion in grants to nine quantum computing companies, with the U.S. government taking equity stakes in the firms. IBM will receive the largest allocation at $1 billion, while GlobalFoundries gets $375 million, and several smaller companies will receive between $38 million and $100 million each. This represents a significant federal investment in quantum computing technology with direct government ownership involvement.

• IBM receives the largest grant of $1 billion, while GlobalFoundries gets $375 million from the $2 billion total package
• Six other quantum computing firms including D-Wave Quantum, Rigetti Computing, Infleqtion, and startup Diraq will receive between $38 million and $100 million each
• The grants include U.S. government equity stakes in the recipient companies, marking an unusual direct ownership approach by the federal government in private quantum computing firms

Equity Residential and AvalonBay Communities announced an all-stock merger to create a $69 billion enterprise value housing rental company. The deal, expected to close in the second half of 2026, leverages a 95% market overlap to drive operational efficiencies and cost savings. AvalonBay CEO Benjamin Schall will lead the combined entity.

• The merger is projected to generate $175 million in gross synergies within 18 months post-completion through reduced corporate overhead and property management expenses
• AvalonBay shareholders will receive 1.113 shares of Equity Residential stock for each AvalonBay share, with Equity Residential shareholders owning approximately 54% of the combined company
• The companies cite 95% geographic overlap in rental property markets, enabling neighborhood-based operations and the use of AI-powered demand forecasting with larger proprietary datasets

The Trump administration is launching a new Export-Import Bank program to provide billions in export financing for foreign purchases of U.S. artificial intelligence tools and chips. The initiative aims to strengthen American AI leadership globally and counter China's expanding influence in AI technology, particularly following the release of China's competitive DeepSeek AI model.

• The U.S. Export-Import Bank will offer insurance, loan guarantees for medium-term deals, and direct loans for long-term transactions to finance foreign purchases of American AI technologies
• Commerce Department approval is required for specific licenses involving sensitive AI technologies like advanced Nvidia chips before financing deals can be finalized
• The program follows an executive order from last July and responds to China's DeepSeek releasing a free, open-source AI model that has gained widespread global adoption

Bayer announced that the FDA has accepted its supplemental New Drug Application for finerenone (Kerendia) and granted priority review designation. The drug is used to treat chronic kidney disease associated with type 1 diabetes. The application is supported by clinical trial data showing significant efficacy improvements.

• Finerenone reduced the primary endpoint (urine albumin-to-creatinine ratio) by approximately 25% from baseline over six months compared to placebo
• The drug, marketed as Kerendia, is currently used for treating chronic kidney disease associated with type 1 diabetes
• Priority review designation from the FDA typically accelerates the review timeline for drugs addressing serious conditions with potential significant therapeutic advances

Advanced Micro Devices (AMD) announced plans to invest over $10 billion in Taiwan's AI ecosystem to expand its manufacturing capabilities. The investment will focus on strategic partnerships with Taiwanese firms to develop more power-efficient AI technology and processors.

• AMD will collaborate with Taiwanese companies ASE and SPIL to advance power-efficient technology for AI systems and processors
• The multi-billion dollar investment represents a significant commitment to Taiwan's semiconductor and AI manufacturing infrastructure
• The move positions AMD to strengthen its AI chip production capacity amid growing global demand for AI computing solutions

AT&T filed a lawsuit against California officials on May 20 seeking permission to discontinue traditional copper wire phone service to new customers, arguing the state forces it to spend $1 billion annually maintaining a century-old network serving just 3% of households. The company pledged to invest $19 billion in modern IP-based telecom services to connect over 4 million additional California households and businesses by 2030.

• AT&T sued the California Public Utilities Commission and state attorney general, also filing petitions with the FCC to declare California's maintenance requirements preempted by federal standards
• The company claims transitioning from copper will save 300 million kilowatt-hours annually by 2030 and address ongoing issues including 2,000 outages from copper thefts this year
• AT&T states that virtually all other states where it offered copper-wire service have eliminated regulatory obstacles allowing the phase-out of old networks

West Pharmaceutical Services announced on May 20 that it has fully restored operations following a cyberattack detected on May 4, which involved data theft and system lockdowns. The company confirmed there has been no further unauthorized access and expects no material impact on its 2026 financial outlook. This incident adds to a series of cyberattacks affecting major medical equipment manufacturers in recent months.

• West Pharma detected the intrusion on May 4 and confirmed a material cybersecurity attack on May 7 involving stolen data and locked systems, prompting the company to take systems offline globally and engage external cyber experts
• The company has restored core systems and restarted manufacturing, receiving, and shipping at all locations, with analysts at Evercore ISI noting the company will leverage flex capacity and 24/7 operations to offset any disruption
• West Pharma joins other major medical device companies hit by recent cyberattacks, including Stryker and Intuitive Surgical in March and Medtronic in April, highlighting ongoing cybersecurity risks in the healthcare equipment sector

BioMarin Pharmaceutical announced that its drug Voxzogo successfully met the primary endpoint in a late-stage trial for hypochondroplasia, a rare genetic disorder causing short stature in children. The treatment significantly increased growth rates compared to placebo, with no current FDA or EMA approved treatments existing for this condition. BioMarin plans to submit regulatory applications starting in Q3 2025.

• Voxzogo increased annualized growth rate by 2.33 cm more than placebo after 52 weeks in the 80-patient study of children aged 3 to 17 years
• No treatments are currently approved by the FDA or European Medicines Agency for hypochondroplasia, a rare genetic skeletal disorder causing short-limbed dwarfism
• The drug was already approved in 2021 for achondroplasia (another form of dwarfism), and BioMarin will submit a supplemental U.S. application in Q3 followed by European filings

Nvidia forecast second-quarter revenue of $91 billion (plus or minus 2%), exceeding Wall Street estimates of $86.84 billion, and announced an $80 billion share buyback program. The company's results serve as a key indicator of AI market health, as its chips power virtually every major data center globally. The announcement comes amid growing competition from tech giants developing custom chips and rival chipmakers targeting the inference market.

• U.S. tech giants are expected to significantly increase AI infrastructure spending in 2026, up sharply from around $400 billion in 2025
• Nvidia faces growing competition as companies like Alphabet, Amazon, and Microsoft develop custom chips for AI inferencing, which represents a larger market than training
• The company increased its quarterly cash dividend from 1 cent per share and unveiled new AI systems built on Groq technology in March to defend its market position

e.l.f. Beauty forecast fiscal 2027 sales and profit below Wall Street expectations, warning that surging oil prices tied to the Iran war could impact results by $15-20 million. The cosmetics company, which relies on China for 75% of production, paid $58.5 million in tariffs under Trump-era policies and is seeking refunds. Despite the weak outlook, e.l.f. beat fourth-quarter estimates with 35% sales growth to $449.3 million.

• Full-year sales guidance of $1.84-$1.87 billion falls short of the $1.87 billion analyst consensus, with adjusted profit forecast at $3.27-$3.32 per share versus $3.36 estimate
• CFO cited cost-savings programs and potential tariff refunds as offsets to the $15-20 million oil price impact, though this impact is not included in official guidance
• Company maintains pricing advantage with 75% of products at $10 or less and reports consumers are not trading down despite macroeconomic uncertainty