Markets
Nia Warfield, Luke Kawa

S&P 500 slumps into the close for first three-day losing streak since reciprocal tariff announcement

US stocks stumbled into the close, unable to hold onto solid daily gains and ending virtually unchanged.

The S&P 500 and Russell 2000 finished the session marginally in the red, while the Nasdaq 100 mustered a 0.2% advance. It’s the first three-day losing streak for the benchmark US stock index since the S&P 500 fell four days in a row following the unveiling of reciprocal tariffs on April 2.

Utilities were far and away the worst-performing S&P 500 sector ETF; consumer discretionary and tech were the only ones that advanced.

Key S&P 500 gainers included Coinbase, United Airlines, and Moderna. Renewable stocks Enphase and NextEra led the day’s losses after President Trump’s tax-and-spending bill cleared the House, putting clean energy tax benefits at risk. Elsewhere…

Advance Auto Parts surged 58%, erasing its year-to-date losses after the retailer reaffirmed its full-year guidance, despite the 25% auto parts tariff that went into effect earlier this month.

Urban Outfitters shares popped nearly 23%, hitting a fresh all-time high after the trendy retailer posted record Q1 earnings results and strong sales across all its banner brands.

Peloton shares jumped nearly 12% Thursday after the fitness tech company saw more bullish options activity than a full-day total for 90% of sessions this year.

Nike shares jumped over 2% after news broke that the sneaker and apparel retailer plans to push price hikes into effect by June 1.

Palantir also rose after its Department of Defense contract was upsized by $800 million.

Hims & Hers sank nearly 8% after rival pharmacy benefit manager Cigna said it would cap copays for its popular GLP-1 weight-loss drugs at $200.

Quantum stocks had a massive session, with IonQ, D-Wave, and Rigetti Computing all up more than 20% and Quantum Computing up double digits as the cohort fully erased losses suffered in early January when Nvidia CEO Jensen Huang said it would likely be decades before the technology would be “very useful.”

Navitas Semiconductor more than doubled on the day after announcing a collaboration with Nvidia on data center infrastructure.

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markets
Helena Cheng

Lululemon’s stretch getting tested: Stock plunges after after outlook is cut

Lululemon shares are down double digits in premarket trading after the company cut its full-year sales and profit outlook, overshadowing a Q1 beat and raising fresh concerns about the brand’s turnaround efforts.

The company now expects fiscal 2026 revenue to be flat to down 1%, compared with its prior forecast for 2% to 4% growth. Guidance for full-year diluted earnings per share was dragged down to a range of $10.95 to $11.15, below the company’s previous guidance of $12.10 to $12.30 and well below Wall Street’s estimate of $13.26.

Key numbers for Q1:

  • EPS of $1.69 vs. the $1.68 expected.

  • Revenue of $2.47 billion vs. the $2.43 billion expected.

The modest top-line beat masked a widening divergence between Lululemon’s geographic markets. While international revenue rose 22% overall with a 30% increase in Mainland China, the bigger problem remains North America, where revenue fell 5%.

Interim co-CEO and CFO Meghan Frank acknowledged during the earnings call that recent product rollouts underperformed. A highly anticipated yoga campaign failed to generate its expected “halo effect” across broader product lines.

Profitability metrics took a major hit, with gross margins contracting by 410 basis points to 54.2% due to mounting tariff costs and promotional markdowns. Operating income consequently fell 37% year over year to $276.9 million.

“We experienced spikes of negative commentary in the media and on social channels with regard to our brand, which had an impact on traffic and overall top-line performance,” Frank said during the earnings call. “And second, not all of our product launches have met our expectations. While we have had several successful launches so far this year, we have seen others as we start Q2 not generate the anticipated guest response.”

Lululemon’s valuation has already been steadily compressing for years. While it was once one of retail’s richly valued stocks, investors have been questioning whether the company can return to the double-digit growth era.

The results also arrive during a leadership transition. Lululemon announced back in April that former Nike executive Heidi O’Neill is set to take over as CEO in September, with investors looking to her to revive growth in North America and restore the brand’s growth.

As Lululemon faces both macroeconomic pressure and brand-specific challenges, its stock has dropped around 40% year to date.

markets
Paige Oamek

US job growth skyrocketed in May, blasting past expectations

The US economy added 172,000 jobs in the month of May, the Bureau of Labor Statistics reported Friday, sending 10-year Treasury yields higher.

The strong May job market surprised economists. Experts had predicted only 85,000 new jobs — just half the reported number. The unemployment rate held steady at 4.3%, as expected.

The job growth story is a hopeful spot for the economy as consumers continue to feel inflationary pressure from the Iran war.

Job gains were buoyed by the leisure and hospitality sector, which added 70,000 jobs, as well as local government, healthcare, and education.

Both the March and April jobs reports were revised upward, making them collectively 93,000 higher than previously reported.

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