Morning Reads

1. Alphabet & Amazon Hit Record Highs on AI Growth
   • Shares of Alphabet (GOOGL) surged 7% to a fresh record high following strong Q1 earnings that demonstrated successful AI monetization. Amazon (AMZN) also climbed 3% to a record high after its AWS cloud division comfortably beat analyst estimates.
   • Article: Mag 7 Ride Again as Four Report After Fed Decision
2. Meta and Microsoft Slide as AI Spending Concerns Rise
   • In contrast to their peers, Meta (META) and Microsoft (MSFT) have fallen more than 20% from their November peaks. Investors are increasingly worried about high capital expenditures and the potential for AI to disrupt legacy software businesses.
   • Article: Stagflation Risks Stacking Up as Iran War Enters Third Month
3. Apple Earnings & AI Strategy Under New CEO John Ternus
   • With Tim Cook set to step down, all eyes are on Apple's earnings today and newly appointed CEO John Ternus. Analysts are looking for a clear blueprint on how Apple intends to integrate AI into its hardware ecosystem to accelerate growth through 2026.
   • Article: Mag 7 Ride Again as Four Report After Fed Decision
4. U.S. GDP and PCE Inflation Data Released
   • The government released the first estimate for Q1 GDP today (forecasted at 2.1%–2.5%) along with March PCE price data. These figures will be pivotal in determining if the Fed can maintain its current rate pause or if stagflation risks are mounting.
   • Article: Mag 7 Ride Again as Four Report After Fed Decision
5. Federal Reserve Intrigue: Powell’s Future on the Board
   • While the Fed is expected to pause interest rates for a third straight time, market attention has shifted to Chairman Jerome Powell. With his term as chairman expiring next month, there is growing debate over whether he will remain on the Fed board.
   • Article: Mag 7 Ride Again as Four Report After Fed Decision
6. Energy Crisis: Iran War and the Strait of Hormuz Closure
   • As the Iran war enters its third month, the continued closure of the Strait of Hormuz is driving massive disruptions to global energy supplies. Brent crude is trading near $112–$126 a barrel, significantly raising recession risks for energy-importing regions like Europe.
   • Article: Stagflation Risks Stacking Up as Iran War Enters Third Month
7. Gold Prices Surge to Record $4,646.60
   • Safe-haven demand triggered by Middle East volatility has pushed Gold up 1.9% today to a staggering $4,646.60. Analysts suggest investors are pivoting toward "hardcore commodities" as technical market signals indicate a new supercycle.
   • Article: BNN Bloomberg - TSX Today, Oil and Energy Prices
8. Berkshire Hathaway Prepares for First Meeting Post-Buffett
   • The annual shareholder meeting in Omaha is the first since Warren Buffett ended his 60-year tenure as CEO. New CEO Greg Abel is set to lead the discussion on Berkshire’s diverse business portfolio, including BNSF and Geico.
   • Article: Factbox-Berkshire Hathaway at a glance
9. ConocoPhillips Reports Strong Q1 Earnings
   • ConocoPhillips (COP) reported first-quarter earnings of $2.2 billion, with adjusted EPS beating expectations. The company reaffirmed its plan to return 45% of its cash from operations to shareholders this year despite ongoing macro volatility.
   • Article: ConocoPhillips announces first-quarter 2026 results
10. NXP Semiconductors (NXPI) Soars on Industrial Demand
    • NXP Semiconductors shares jumped 15% following quarterly results that bypassed analyst estimates. The strength in automotive and industrial chip demand is providing a "day after" boost to the broader semiconductor sector.
    • Article: Mag 7 Ride Again as Four Report After Fed Decision
11. Ford Beats Estimates Despite Losses in EV Segment
    • Ford (F) surpassed Q1 earnings expectations, but its EV segment recorded significant losses. The company continues to navigate the difficult transition to electric vehicles amidst high interest rates and fluctuating consumer demand.
    • Article: BNN Bloomberg - Canada Business News
12. PayPal Announces Reorganization of Venmo
    • In a major structural shift, PayPal (PYPL) is making Venmo a standalone business unit. The move is designed to unlock value from the social payment platform as it faces increased competition in the fintech space.
    • Article: BNN Bloomberg - Canada Business News
13. Asian Markets Fall on Stagflation and War Fears
    • Global markets are under pressure, with Japan’s Nikkei down 1.1% and Hong Kong's Hang Seng down 1.3%. Investors in Asia are particularly concerned about the rising economic cost of the prolonged Hormuz blockade.
    • Article: BNN Bloomberg - TSX Today, Oil and Energy Prices
14. Jamie Dimon Warns of a Potential Bond Crisis
    • JPMorgan CEO Jamie Dimon warned that rising government debt and widening deficits could trigger a "bond crisis" if policymakers do not take proactive measures. He cited geopolitics and oil prices as the primary catalysts for potential market stress.
    • Article: The MarketWatch Update - StoneX Insights
15. Avis (CAR) Short Squeeze Drama Intensifies
    • The short squeeze at Avis Budget Group (CAR) is escalating as CEO Brian Choi takes a public stand against shareholders allegedly violating trading rules. The stock remains highly volatile as the company battles technical market pressures.
    • Article: Mag 7 Ride Again as Four Report After Fed Decision

Fed drama: Powell says he's not leaving the Fed until this happens, while Bessent bashes him for staying on the board.

Volatility: The short squeeze at Avis (CAR) is getting interesting, with CEO Brian Choi going after shareholder for violating trading rules.

Maritime Freedom Construct: A new global coalition might help open Hormuz, and the UAE's OPEC exit may lower energy prices.

The quartet

Four of the biggest companies in America—that represent more than 15% of the S&P 500 (SP500)—reported earnings after the bell on Wednesday, providing a snapshot into the tech sector at a time of economic uncertainty. Spending on artificial intelligence computing infrastructure has gone into overdrive, with investors closely watching capital expenditures and growth from these burgeoning industries. At the same time, the legacy businesses of these giants have been resilient, like enterprise software, digital advertising, social media and e-commerce.

Who's up? Despite mega spending on the AI dream, massive cloud growth and profits sustained Alphabet (GOOGL) and Amazon (AMZN) following earnings. Shares of the former zoomed ahead 7% to a fresh record high on strong financial numbers, while the latter climbed 3% to a record as well, after blowing past AWS estimates. "Despite R&D increasing from $13.6B-$17B, Alphabet's operating margin still expanded," said SA Investing Group Leader Dhierin Bechai. "It is a signal that Alphabet is monetizing AI at scale and throughout its entire ecosystem. AI is not just an additional revenue stream from AI products/compute, but also enhancing other parts of the business, such as search, YouTube and subscriptions."

Who's down? Microsoft (MSFT) and Meta Platforms (META) are already off more than 20% from their all-time highs notched last November. Concerns have centered around pressure on the software industry due to the disruption of AI, and Microsoft didn't do much on its earnings call to assuage those worries. For Meta, there have been serious fears about just how much the company is shelling out since it has been one of the most aggressive AI spenders. The stock slid 7% AH on Wednesday as the firm outlined it would increase capex yet again, while lackluster guidance spooked investors and Reality Labs lost a whopping $4B last quarter.

Up next: With Apple's (AAPL) Tim Cook set to step down as chief executive, eyes today will be on the tech giant's earnings after the bell. Last week, Apple appointed longtime hardware chief Ternus as CEO, signaling the company's stronger emphasis on hardware innovation and a push to integrate AI capabilities into existing devices to maintain growth and compete with emerging AI technologies. “We expect Cook and Co. to expand on the company’s AI strategy on the call as the Street looks for more insights into AAPL's plans to revamp Siri to drive its AI strategy,” noted Wedbush analyst Dan Ives, adding that it's time for Apple to lay down the blueprint to accelerate its AI strategy in 2026. (2 comments)

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What else is happening...

Is the Pentagon’s $25B estimate for cost of Iran war too low?

Ford (F) beats Q1 estimates, but records loss for EV segment.

Musk was a 'fool' to fund OpenAI; big news on Tesla's (TSLA) Semi.

Everything app: Uber (UBER) adds hotel bookings to platform.

KKR mulls potential $10B deal for ex-Unilever (UL) spread business.

Carvana (CVNA) achieves record revenue, beats expectations.

Trump says the U.S. is reviewing a troop reduction in Germany.

Bill Ackman's Pershing Square USA (PSUS) .

NXP Semiconductors' (NXPI) surges amid bullish views from analysts.

Reorganization: PayPal (PYPL) makes Venmo a standalone business.

Today's Markets

In Asia, Japan -1.1%. Hong Kong -1.3%. China +0.1%. India -0.8%.
In Europe, at midday, London +1%. Paris -0.6%. Frankfurt +0.4%.
Futures at 6:30, Dow -0.1%. S&P +0.2%. Nasdaq +0.3%. Crude flat at $106.90. Gold +1.9% to $4,646.60. Bitcoin -2.3% to $76,034.
Ten-year Treasury Yield -3 bps to 4.40%.

On The Calendar

Companies reporting today include Altria (MO) and Eli Lilly (LLY).