Markets
Nia Warfield, Luke Kawa

S&P 500 extends winning streak to six on tariff relief and solid earnings

The S&P 500 gained for its sixth consecutive day, the longest such streak since September, as investors cheered a slate of mostly positive corporate earnings (even as companies were skittish to provide details on their outlooks) and welcomed fresh tariff relief on autos. The Nasdaq 100 even briefly erased all of its losses since the April 2 close, just before reciprocal tariffs were announced in the Rose Garden.

The S&P 500, Nasdaq 100, and Russell 2000 all gained 0.6%.

Energy was the lone S&P 500 sector ETF to finish in the red, while financials led the way higher.

The White House said that vehicles made with at least 85% domestic and USMCA-compliant content would be exempt from tariffs for the next year (a big boon for Tesla, in particular).

Hims & Hers shares soared after the telehealth company announced a partnership with Ozempic maker Novo Nordisk, boosting optimism around the company’s weight-loss push.

Meanwhile, a busy stretch of earnings continued to steer stock action on the day.

Coca-Cola shares ticked higher after the beverage and snacks giant topped earnings expectations by a penny and moved more volumes than analysts anticipated.

UPS reversed early gains after its Q2 revenue guidance missed estimates by about $100 million, with tariffs expected to squeeze margins by more than analysts had feared.

Royal Caribbean jumped as much as 5% after strong Q1 results and a surprisingly upbeat profit outlook, but the stock gave back most of those gains by the close as enthusiasm waned.

CoreWeave surged as much as 10% on a flurry of options demand for the recently IPO’d cloud computing company. The number of call options traded on the day was the highest in the company’s short history as a publicly traded firm.

SoFi snapped its losing streak, moving slightly higher after posting a Q1 beat and raise. The fintech stock had lagged before the report, after posting a blockbuster 2024.

JetBlue shares popped despite the airline pulling its full-year forecast and posting another Q1 loss — its sixth straight — though the $0.59 per-share loss still came in better than expected.

Brinker shares sank nearly 14%, even after the Chili’s and Maggiano’s Little Italy parent topped Q3 estimates and raised guidance, as enthusiasm waned on Wall Street.

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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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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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