S&P futures are up 0.5% Friday morning after U.S. equities finished mostly lower Thursday, with semis pulling back after a big run while software outperformed. Global markets are softer, with Asia mostly lower but still up sharply for the week, and Europe down 0.9%. Treasuries are firmer, with yields down 2–3 bp after Thursday’s backup, the dollar is down 0.1%, gold and silver are higher, Bitcoin futures are little changed, and WTI crude is down 0.5%.
The firmer tone reflects the market’s continued willingness to look past U.S.-Iran tensions, with the U.S. saying the ceasefire remains in effect despite the latest escalation. The equity narrative remains anchored by AI compute and capex demand, supported by recent earnings and AI infrastructure headlines. However, investors are still watching breadth, valuations, supply constraints, component shortages, input costs, free-cash-flow pressure, and AI-related job cuts. Trade is also back in focus after the U.S. Court of International Trade struck down Trump’s Section 122 10% tariff, while speculation continues around a potential Trump-Xi framework involving rare earths, chips, soybeans, and the RMB.
Economic Calendar
April payrolls and preliminary University of Michigan sentiment are the key releases this morning. Consensus expects 65K nonfarm payroll gains after March’s 178K increase, unemployment unchanged at 4.3%, and average hourly earnings up 0.3% m/m. Consumer sentiment is expected to slip to 49.4 from 49.8. Fed speakers include Waller, Bowman, Barr, Daly, and Goolsbee later today.
Information Technology
- NET: Down sharply as investors focused on a very high expectations bar despite continued AI/cloud demand.
- CRWV: Pressured despite a strong demand backdrop, with focus on the lack of an increase to FY guidance.
- MCHP: Highlighted improved demand, customer inventory normalization, and meaningful operating leverage.
- AKAM: Results were overshadowed by a $1.8B committed-capacity deal with a leading frontier model provider.
- HUBS: Lower on growth concerns tied to its AI strategy shift.
- BILL: Takeaways focused on a large EBIT beat, cost savings from workforce reductions, and a $1B buyback.
- Semis: Pulled back Thursday after a large recent run.
- Software: Outperformed as investors rotated away from semis.
Communication Services
- TTD: Guided Q2 revenue roughly 3% below consensus, with EBITDA about 11% light.
Consumer Discretionary
- ABNB: Laggard despite a beat-and-raise and positive growth-initiative commentary.
- EXPE: Bookings, revenue, and EBITDA beat, but room nights were light and investors questioned the reiterated FY guide.
- TXRH: Q1 EPS beat, helped by restaurant-level margins, with quarter-to-date comp trends ahead of consensus.
Consumer Staples
- MNST: Beat on better sales and cost control, while management noted stronger global energy-drink demand.
Financials
- XYZ: Big gainer after a beat-and-raise, with Square volume growth and Cash App MAU growth as bright spots.
- AFRM: Positive reaction to a beat-and-raise and accelerating Card adoption.
Consumer / Digital Commerce
- MELI: GMV, TPV, and sales were all ahead, but operating income missed as the company continues investing.
- TOST: Beat and raised, but shares were hit by disappointing Q2 guidance.
Healthcare
- GILD: Takeaways focused on HIV strength, higher revenue guidance, and lower EPS guidance due to an IPR&D charge.
U.S. equities finished lower Thursday, though off worst levels, with the Dow down 0.63%, S&P 500 down 0.38%, Nasdaq down 0.13%, and Russell 2000 down 1.63%. The main market story was a pullback in semis and memory after a major run, even as AI compute demand remained the dominant secular earnings theme. Software benefited from some rotation and strong earnings from names such as Fortinet and Datadog. Geopolitics stayed in focus as investors continued to wait for Iran’s response to the latest U.S. proposal; a diplomatic outcome remains the base case, but late-day headlines around Strait of Hormuz tensions and reports of renewed fire kept risk from fully fading. Economic data were mixed: initial jobless claims rose to 200K but remained below consensus, continuing claims fell to the lowest level since January 2024, Challenger layoffs rose 38% m/m but fell 21% y/y, productivity missed at +0.8% SAAR, unit labor costs were softer than expected at +2.3%, construction spending rose 0.6%, and NY Fed one-year inflation expectations increased to 3.6%. Treasuries were weaker, with yields up 2–3 bp, the dollar rose 0.1%, gold gained 0.7%, silver rose 3.7%, Bitcoin futures fell 1.7%, and WTI crude finished little changed at $95.23.
Sector Highlights
Sector performance was mostly negative and reflected rotation away from recent AI/momentum leaders. Communication Services and Technology were the best relative performers, each up 0.08%, while Consumer Staples fell 0.14% and Consumer Discretionary slipped 0.20%. The weakest groups were Materials, down 1.82%, Energy down 1.78%, Industrials down 1.62%, Utilities down 1.34%, Real Estate down 0.96%, Financials down 0.57%, and Healthcare down 0.48%. Payments, financial data, insurance, MedTech, casinos, athletic apparel, media, waste, and precious-metals miners outperformed, while energy, banks, investment banks, E&Cs, building materials, machinery, steel, chemicals, pharma, small caps, and cosmetics lagged.
Information Technology
- DDOG +31.3%: Q1 revenue, billings, free cash flow, EPS, and operating income all beat, marking the strongest beat since the Covid era. Customers with more than $100K ARR rose 21% y/y, FY26 revenue guidance was raised, and Q2 guidance topped consensus.
- FTNT +20.0%: Q1 earnings, revenue, and operating margin beat, helped by strong Product revenue and multiple AI-related deployments. Q2 guidance was ahead and FY guidance was raised.
- APP +6.4%: Q1 adjusted EBITDA and revenue beat, with better margins and acceleration in the consumer segment. Q2 guidance was ahead of the Street.
- SITM +27.9%: Q1 EPS and revenue beat, and management raised FY26 revenue and long-term growth targets. Barclays upgraded the stock, citing potential for more than 80% revenue growth.
- ARM -10.1%: Fiscal Q4 revenue and EPS beat, with Licensing strong but Royalty weaker on smartphone headwinds. Investors focused on the high bar after recent CPU/AI enthusiasm, though demand for its AGI CPU remains a positive.
- COHR -7.8%: FQ3 revenue was slightly ahead on Data Center/Communications strength, and FQ4 guidance topped consensus, but shares fell after a nearly 80% YTD rally.
- FSLY -38.2%: Q1 EPS, revenue, and operating income beat, and FY26 guidance was above Street at the midpoint, but investors focused on a Network Services growth miss and a very high bar after the stock’s 210% YTD rally.
- AVGO -3.0%: Fell after reports that its joint chip-development agreement with OpenAI hit a snag over funding for the first phase of production, estimated at roughly 1.3 GW of data-center compute and $18B of cost.
Communication Services
- ZG -1.8%: Q1 adjusted EBITDA and revenue beat, but Q2 guidance came in below expectations due to roughly $20M of incremental FTC-related legal expenses. Elevated rates and weather disruptions pressured top-of-funnel activity.
- Media: Outperformed within the broader tape as investors rotated into select communication services names.
Consumer Discretionary
- FUN +15.6%: Q1 revenue and adjusted EBITDA beat, with attendance up 4% y/y and admissions and food/merchandise revenue outperforming. The company also said no further park sales or closures are planned in 2026.
- PTON +8.9%: Fiscal Q3 revenue beat on stronger Connected Fitness equipment sales. The company raised FY26 revenue midpoint and free-cash-flow guidance, though adjusted EBITDA guidance was maintained and gross margin missed due to promotional activity.
- KTB +4.2%: Q1 EPS missed but revenue beat, gross margin expanded 470 bp y/y, FY26 EPS and revenue guidance were raised, and the company announced a new $750M repurchase authorization.
- PLNT -31.2%: Q1 revenue and EPS beat, but comps were at the low end of expectations and driven mostly by pricing rather than member growth. Management paused a planned Black Card price increase and materially lowered FY26 guidance.
- SHAK -28.3%: Q1 revenue and EPS missed on softer Shack sales and weather headwinds. The low end of FY26 adjusted EBITDA guidance was lowered.
- WHR -11.9%: Posted a large Q1 miss, slashed FY guidance, suspended its dividend, and cited a weak demand backdrop, inventory reduction, pricing shifts, and Iran-related consumer-confidence pressure.
- BROS -9.4%: Q1 beat, with comps up 8.3%, and FY26 guidance was raised, but investors focused on implied Q2 comp deceleration and competition concerns.
- TPR -12.4%: FQ3 earnings, revenue, and margins beat, but shares fell on weaker Kate Spade trends and higher marketing-spend guidance.
- PZZA -2.8%: Q1 revenue and EPS missed, North America and International comps decelerated, and analysts flagged a difficult consumer backdrop.
Consumer Staples
- CELH +4.5%: Q1 revenue and EPS beat, though gross margin was slightly below expectations. Organic Celsius brand sales rose 5.1%, while international growth was much stronger at +55% y/y.
- VITL -20.7%: Q1 revenue beat, but EPS and adjusted EBITDA missed. FY26 guidance was lowered, particularly for adjusted EBITDA, and the company plans to wind down its butter business by year-end 2026.
- USFD -5.6%: Q1 case growth, revenue, and EBITDA were light. Management reaffirmed FY guidance but cited deteriorating macro and weather headwinds.
Energy
- APA -5.4%: Q1 revenue, production, and EPS beat, with cost controls and Permian efficiency improvements highlighted. However, Lower 48 production guidance was reduced due to natural gas curtailments.
- Energy sector -1.78%: Lagged as crude remained volatile and investors continued to weigh Iran-related supply risks against recent de-escalation hopes.
Financials
- CG: Notable earnings decliner within Financials.
- Payments / financial data / insurance: Relative outperformers, even as the broader Financials sector declined.
- Banks / investment banks: Underperformed as yields moved higher and risk appetite narrowed.
Healthcare
- BDX +5.9%: Fiscal Q2 earnings, revenue, and margins beat, with all segments ahead of consensus and stronger contributions from higher-margin businesses. FY EPS guidance was raised.
- INSM -23.6%: Q1 earnings and revenue beat, but Arikayce missed and analysts raised concerns around the Brinspuri ramp trajectory despite reaffirmed FY guidance.
- ZTS -21.5%: Q1 earnings and revenue missed, U.S. Companion Animal results were weaker, and management cut FY guidance, citing price sensitivity among pet owners, fewer vet visits, softer premium-product demand, and rising competition.
- MedTech: Outperformed within Healthcare, while pharma lagged.
Industrials
- FLNC +39.9%: Q2 adjusted EBITDA beat on margin improvement, while revenue missed. Management described the revenue shortfall as timing-related, with order intake and backlog still strong; FY26 guidance was reaffirmed.
- AAON +31.5%: Q1 revenue and EPS beat on strong demand and production throughput. Backlog rose 107.4%, driven by data-center demand, and FY26 revenue-growth guidance was raised to 40–45% from 18–20%.
- HWM +6.3%: Q1 earnings and revenue beat, driven by Engine strength across defense, commercial, and gas turbines. Q2 guidance was ahead and FY guidance was raised.
- GWW +5.5%: Q1 results beat, with operating income more than 14% above consensus. FY revenue, operating-margin, and EPS guidance were raised.
- WTS: Among the better industrial performers after stronger sales and margins.
- E&Cs / building materials / machinery: Underperformed as investors rotated away from cyclical industrial laggards.
Materials
- ALB +3.0%: Q1 earnings and revenue beat, helped by Energy Storage strength from higher volumes and pricing, as well as better Specialty earnings. FY net sales guidance for Specialties was raised.
- CF: Notable laggard after earnings despite recent support from global nitrogen disruption.
- Chemicals / steel: Among the weakest groups as Materials was the worst-performing sector.
Real Estate
- Real Estate sector -0.96%: Underperformed as yields moved higher and risk appetite narrowed away from rate-sensitive groups.
Utilities
- Utilities sector -1.34%: Lagged as defensive yield proxies came under pressure from higher Treasury yields and a more selective risk backdrop.
Eco Data Releases | Friday May 8th, 2026
S&P 500 Constituent Earnings Announcements | Friday May 8th, 2026
Data sourced from FactSet Research Systems Inc.
