Sector Snapshot
Sector Synopsis: Markets traded mixed to start the week, with defensive sectors gaining ground amid signs of energy grid strain and ongoing consumer recalibration. Tech remained in focus as Apple reportedly eyes Perplexity and OpenAI draws fresh legal fire—while hardware saw bifurcation, with MSFT layoffs offset by AI expansion announcements from HPE and Ambarella M&A chatter. Consumer names were active, with Amazon’s rural push and McDonald’s–Krispy Kreme breakup drawing attention. Meanwhile, FedEx’s cost-cutting plan failed to impress, homebuilders reshuffled assets, and Boeing came under renewed regulatory heat. Uranium stocks gained as Trump-era deregulatory tailwinds returned to the conversation. The broader tone was one of positioning, not chasing.
Autos: Uber and Waymo launched driverless ride-hailing service in Atlanta. Tesla faced regulatory scrutiny in France over alleged misleading practices. Ford issued a recall of 133,000 Lincoln Aviators due to a risk of parts detaching.
Retail, Consumer Staples & Restaurants: Keurig Dr Pepper reaffirmed FY25 guidance, projecting mid-single-digit sales growth and high-single-digit EPS gains. Amazon announced a $54B UK investment and plans to expand Prime same-day delivery to rural America. Krispy Kreme and McDonald’s ended their partnership over cost concerns. Target is reportedly exploring a low-cost e-commerce platform to rival Shein and Temu.
Homebuilders, Building Products & Furnishings: AZEK sold its Scranton Products business to Sky Island Capital, refocusing on core offerings.
Leisure, Gaming & Lodging: Carnival (CCL) beat earnings estimates and said Middle East conflict hasn’t impacted bookings. MSG Sports faced activist pressure to split the Knicks and Rangers into separate public entities.
Energy: SLB reaffirmed shareholder return plans despite market uncertainty. PSX aims to boost refining margins, and DUK prepped plants for maximum output amid Southeast heatwave. EOG expects to close its Encino deal in Q3; CTRA reversed its Permian rig count reduction plan.
Banks & Brokers: Momentum Financial renewed a ~$658M credit facility with Ares to support expansion.
Bitcoin, FinTech & Payments: Mastercard expanded its stablecoin integration with FI. Cleanspark hit its mid-year target for Bitcoin mining capacity.
Insurance: Cigna sued Bristol Myers over alleged monopolistic practices. Wall Street firms, including TPG, placed bids to acquire Brighthouse Financial (BHF).
REITs: Macerich bought Raleigh’s Crabtree Mall for $290M, signaling confidence in brick-and-mortar retail.
Biotech & Pharma: Novo Nordisk announced a full Wegovy launch in India. Revolution Medicines secured $2B in flexible funding from Royalty Pharma. Amarin surged on a European licensing deal. NKTR soared after its atopic dermatitis drug hit key endpoints. AstraZeneca received FDA approval for daresay in lung cancer, while KalVista plunged amid regulatory setbacks.
Healthcare Services & MedTech: GE HealthCare’s Alzheimer’s imaging agent Vizamyl won expanded FDA approval, aiding earlier diagnosis.
Transports: Airlines gained on falling oil prices tied to ceasefire reports. Spirit pushed back on a proposed JetBlue-United joint venture, calling it anti-competitive.
Aerospace & Defense: Boeing faced further delivery delays, while Parsons and IBM unveiled a new air traffic control system. NATO added Airbus A330 MRTT aircraft and welcomed new member states to its fleet. EU may impose retaliatory tariffs on U.S. aircraft.
Metals & Mining: Rio Tinto and Hancock announced a $1.61B investment in the Hope Downs 2 iron ore project in Western Australia.
Internet, Media & Telecom: CyberArk’s identity platform was adopted by Panasonic. ISS recommended Para shareholders vote out four directors, including Shari Redstone. Nielsen noted Warner Bros Discovery (WBD) posted the biggest May TV viewing gains.
Hardware & Software: Logitech expanded its gaming gear partnership with McLaren. Microsoft plans more Xbox layoffs. OpenAI is reportedly working on an enterprise suite to rival Microsoft and Google. HPE unveiled new AI factories built on Nvidia tech.
Semiconductors: Microcap Nano Labs jumped 50% on a $500M private placement. TSMC saw foundry revenue rise 13% in Q1 on AI demand. Ambarella surged on reports it's exploring a sale.
Featured Articles
Investigators Fault Boeing and FAA Over Safety Lapses — WSJ U.S. investigators blamed both Boeing and the FAA for lapses that led to a midair door-plug blowout earlier this year, intensifying scrutiny on aviation safety and regulatory oversight.
Buffett’s RV Bet in the Spotlight — WSJ Warren Buffett’s Forest River RV unit faces fresh attention as demand for recreational vehicles cools. Analysts are split on whether the pandemic boom created a lasting shift in American travel habits.
FedEx Cuts Forecast Despite Cost-Saving Push — MarketWatch FedEx plans to slash $1B in costs this year but issued a weaker-than-expected outlook, sending shares lower. The company cited soft macro conditions and e-commerce deceleration.
Apple’s Possible Perplexity Acquisition Draws Buzz — MarketWatch Reports suggest Apple may acquire AI search startup Perplexity, potentially signaling a major strategic shift toward generative AI tools and search integration.
Trump’s Deregulation Push Fuels Uranium Stocks — MarketWatch A new Trump deregulation plan could boost uranium miners and related ETFs, with policy momentum expected to favor domestic energy independence and nuclear power.
Altman Defends OpenAI Amid Criticism — CNBC OpenAI CEO Sam Altman fired back at criticism from ex-partner Iyo, calling their lawsuit "meritless" and defending the company’s recent corporate moves.
Polymarket Nears Unicorn Status — Bloomberg Blockchain prediction market Polymarket is reportedly raising a new round at a $1B valuation, signaling growing interest in decentralized wagering and event-driven speculation.
Inside the Earnings Call - FedEx (FDX)
Q4 FY2025 Earnings Call Summary
Theme | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 |
|---|---|---|---|---|
Revenue & Profit | Missed estimates; weak guidance | Beat; cost cuts show traction | In line; cautious macro tone | Missed top line; margin pressure |
Efficiency & Margins | $1B cost-cut target reaffirmed | Express segment margin improved | Freight weakness remains | Ground margin erosion noted |
Demand Trends | E-commerce softness, volume down | Stabilization signs noted | B2B strength offset B2C weakness | Mixed demand by segment |
Management Commentary | Cautious on global macro outlook | Focused on structural improvements | Slower growth expected | Emphasized long-term plan |
Takeaway for Investors
FedEx’s fiscal Q4 results disappointed, with weaker guidance and persistent demand softness despite ambitious cost-saving initiatives. Management reaffirmed its $1B expense reduction goal, but macro headwinds and slowing e-commerce remain formidable challenges. The outlook suggests investors should remain cautious unless volume trends rebound meaningfully.