1606 ET - The S&P 500 and Nasdaq snap five-day losing streaks and the Dow Industrials jump to a record high as deal activity returns to start the week. Comcast announces plans to spin off NBCUniversal and Sky into a separate publicly traded company, Rocket Lab agrees to buy satellite operator Iridium Communications in an $8 billion cash-and-stock deal, while Martin Marietta Materials agrees to buy Lhoist North America for $13.5 billion. Last week's technology selloff loses momentum, while the expected resumption of peace talks lifts sentiment. DJIA gains 306 points, or 0.6%, to 52182, the S&P 500 rises 1.2% to 7440 and the Nasdaq climbs 2.1% to 25820. (patrick.sullivan@wsj.com)
1552 ET - Treasury yields edge higher amid expectations of an extended period of high interest rates. Yieldsare on track for a quarterly increase, as concerns about war-driven energy inflation move markets. Such fears ease as U.S. and Iran reportedly keep alive talks to restore shipping through Hormuz, while uncertainty lingers on. Crude rises but remains near pre-war levels. The JOLTS report is due tomorrow, along with the Case-Shiller house price index, the Chicago business survey and the Conference Board consumer confidence gauge. The 10-year yield adds 0.003 percentage point to 4.375%. The two-year rises 0.021 p.p. to 4.108%. (paulo.trevisani@wsj.com; @ptrevisani)
1525 ET - Canada's economy might not be as resilient as aggregate data suggest, says Stefane Marion, chief economist at National Bank of Canada. He cites monthly figures on firm creation and closings, and says the numbers for manufacturing demonstrate acute stress for trade-exposed Canadian companies. Marion says the number of active manufacturing firms fell in 1Q to its lowest level in at least a decade, excluding the Covid-19 pandemic. Meanwhile, firm counts across all other industries remain much closer to cycle highs. "Canada may still be generating growth elsewhere in the economy, but its trade-exposed production base is telling a more fragile story," Marion warns. (paul.vieira@wsj.com, @paulvieira)
1424 ET - RBC Capital Markets bumps up its target for BlackBerry's shares but views the risk-reward as less attractive in light of the sharp rally the stock has seen. The Canadian tech company reported its largest earnings beat in the last year for 1Q, thanks to what RBC's Paul Treiber says was solid development seat license sales at its QNX unit and perpetual license revenue at its Secure Communications business. "While quarters may be lumpy due to one-time revenue, BlackBerry is moving into a period of headline growth following a period of transformation." RBC's target rises to $9 from $4.50 but it maintains a sector perform call. BlackBerry jumps 9%. (robb.stewart@wsj.com)
1414 ET - Oil futures extend gains with the market apprehensive after the U.S. and Iran exchanged strikes over the weekend, although an agreement to resume talks helps contain the rise. "The main concern is that the shipping will lose momentum as insurers pull back from green-lighting a virtual drag race to get as many barrels as possible out of the Gulf and through the Strait of Hormuz," Mizuho's Robert Yawger says in a note. "Traffic in the strait was already operating at reduced levels because of the precarious nature of the routes available to shipping." WTI is up 2.4% at $70.86 a barrel and Brent gains 1.9% to $73.99.(anthony.harrup@wsj.com)
1410 ET - The recent drop in oil prices will likely provide a boost that hasn't been accounted for in apparel and footwear companies' forecasts, according to Baird in a note. Analysts Jonathan Komp and Alexander Conway say that considering WTI crude was about $95-$110/barrel in late April/early May, they think current prices are well below the levels embedded in most guides. They believe such sizable declines typically boost consumer confidence. This should support upside for apparel and footwear stocks, especially given those companies have pointed to resilient and healthy consumer demand lately as well as solid full-price selling trends, the analysts say. "We see potential for higher consumer sentiment and group valuations ahead," they say, noting particularly good setups for Dick's Sporting Goods, Crocs and Adidas. (kelly.cloonan@wsj.com)
1330 ET - Quantum computing provider Quantinuum stands to benefit as quantum computing adoption grows, Mizuho says in a note, initiating coverage with a $90 price target and an outperform rating. Analyst Vijay Rakesh estimates the quantum computing industry to grow from about a $1.1 billion a year run-rate in 2025 to approximately $15 billion in 2030 and $205 billion in 2035. Rakesh expects Quantinuum's 2031 revenue to be about $4.7 billion, growing at a near 131% CAGR from 2025-2031. (elias.schisgall@wsj.com)
1229 ET - Quantinuum is well-positioned to capture the long-term opportunities of quantum computing, but risks and uncertainties remain around the technology, Morgan Stanley analysts write in a note, initiating coverage with an equal-weight rating and a $78 price target. "While we see substantial long-term optionality if quantum computing reaches broad commercial adoption, we believe the current valuation appropriately reflects both the opportunity and the considerable risks that remain," they write. The company's trapped-ion architecture and technical execution has been validated by third parties and suggests a "credible path to fault tolerance," they write, referring to the ability of quantum computers to avoid or correct for errors that emerge through the computing process. Quantinuum shares fall 2.6%. (elias.schisgall@wsj.com)
1222 ET - Uncertainty about the future of the U.S.-Mexico-Canada trade pact will continue to cast a pall over the Canadian economy and lead to slower-than-anticipated growth in 2026, Capital Economics says. Trade uncertainty and lower immigration intake is expected to slow growth this year to 0.5%, CapEcon says. The firm projectsgrowth to pick up steam over the next year although cautioning USMCA uncertainty remains a major wildcard. U.S. withdrawal from USMCA looks unlikely given advanced talks with Mexico. "But there is still a risk that talks drag on" for longer than a year, the firm says. That could further delay a rebound in business investment, and a boost to exports following some tariff relief, CapEcon says. (paul.vieira@wsj.com; @paulvieira)
1219 ET - Martin Marietta Materials' acquisition of limestone supplier Lhoist North America may seem like a departure from the company's aggregates business, but it makes sense given commercial and operational similarities between that and the lime business, Raymond James analysts write in a note. "The lime market requires hard- to-replicate high-calcium (geologically different) limestone reserves, is a quarry-based blasting and crushing operation, enjoys a highly consolidated market structure, and is incredibly high necessity (and low value) to the markets it serves," they write, adding that the company's estimate of $85 million in annual cost synergies could be conservative. "We believe that market will come to appreciate the quality of the assets in time." Shares in Martin Marietta fall 6.5%. (elias.schisgall@wsj.com)
1212 ET - The U.S. Supreme Court's ruling blocking President Trump from firing Fed governor Cook "offers some comfort with respect to Fed independence," Ameriprise's Russell Price says. The court rules that the president can fire officials at independent agencies at will, except for central bankers. The decision "is a win for market sentiment," Price says. He warns, however, that the issue of Fed independence is "likely to remain a simmering background concern until proven otherwise." Treasury yields are little changed since the Supreme Court announcement, with the 10-year trading at 4.378%.(paulo.trevisani@wsj.com; @ptrevisani)
1207 ET - Comcast will separate its media and connectivity businesses, dismantling an earlier bet on combined entertainment and distribution. The split comes as both the media and telecom landscapes have become increasingly competitive, says Mike Cavanagh, who is currently Comcast's co-chief executive and will lead NCBUniversal as a standalone company. "That pace of change continues to accelerate, and so, we simply don't see these conditions changing anytime soon," he says. Where we previously believed that scale and the diversification benefits warranted operating these businesses as one company, we've now simply changed our mind about that." (connor.hart@wsj.com)