Markets
Nia Warfield

Stocks push higher as inflation eases

Stocks continued to come back Thursday as Wall Street digested upbeat economic data and a few strong earnings results. May’s Producer Price Index rose just 0.1% for the month, softer than the 0.2% economists expected. Markets also brushed off recent unilateral tariff threats from President Trump.

The S&P 500 was up 0.38% and the tech-heavy Nasdaq 100 rose 0.24%, while the Russell 2000 sank 0.38%.

Healthcare and utilities led sector gains while communication services lagged.

Oracle topped S&P 500 performers, rising 13% after topping Q4 estimates as the company’s cloud infrastructure revenue soared. On the flip side, Boeing shares sank nearly 5% following the tragic crash of a Boeing 787 Dreamliner.

Elsewhere…

Electric vehicle makers Rivian, Lucid, and Tesla dipped after Trump signed congressional resolutions to revoke California’s ability to set its own emissions standard.

Shares of air taxi maker Joby Aviation fell 8% after Cantor Fitzgerald downgraded the stock to neutral, warning that the company has the highest cash burn rate in the sector.

GameStop shares sank 17% after the company announced yesterday after market close that it plans to raise more debt with a $1.3 billion private offering of convertible senior notes.

Mattel shares jumped as much as 2% before closing flat after the toymaker struck a deal with OpenAI to bring AI-powered toys and games to market.

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Tasha Matsumoto
6/5/26
Stocks tumble amid AI sell-off as a blowout jobs report dampens hope of a rate cut this year

The S&P 500 broke its streak of nine consecutive weekly gains, while the Nasdaq 100 had its worst day since April 2025.

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Tech tumbles as momentum stocks run into a blowout jobs report and a wave of profit-taking

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David Crowther6/5/26
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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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