Morning Brew May 5 2026

Good morning

While the situation in the Strait of Hormuz remains volatile, the longer-term inflation outlook is becoming an increasingly important topic. The rift between the U.S. and Europe seems to be widening, and Palantir has beaten expectations.

The U.S. is attempting to force ships through the Strait, while missiles from Iran have hit the UAE and a Korean vessel. Oil is trading higher at 104.40 in the U.S. and 113 in London.

Stocks ended the day lower: the S&P 500 fell 0.4%, the Nasdaq declined 0.2%, and the Dow dropped 1.15%. This morning, indexes look friendly again.

GameStop is once again in the spotlight as the video game retailer [unveiled a proposal to buy](reuters://REALTIME/verb='NewsStory/ric=nL6N41G0AM') eBay for about $56 billion in a cash-and-stock deal. GameStop's stock market value is about $11 billion.

Amazon announced “Supply Chain Services,” which is weighing on other transport companies. FedEx and UPS fell approximately 10%.

Palantir’s stock swung wildly after announcing results, closing 1.2% higher. The data analytics and artificial intelligence company reported an 85% year-on-year revenue jump to $1.6 billion. Net income rose to $870.5 million, compared with $214 million a year earlier, according to Reuters.

Norwegian Cruise Line lost nearly 9% on a disappointing outlook. HSBC reported an unexpected $400 million loss linked to a fraud case in Britain.

China is slowing its efforts to repatriate Chinese nationals who are in the U.S. illegally, a senior Trump administration official told Reuters.

Inflation expectations are rising, with quarterly PCE and CPI estimates north of 5%, according to the Inflation Forecast.

Yields and the USD rose again, with the U.S. 10-year at 4.43%, the EU at 3.07%, and the UK near 5%. EUR/USD is at 1.1680, GBP/USD at 1.3515, and USD/JPY at 157.30.

Gold and silver are lower at 4,545 and 73.20, respectively.

Markets remain gripped by the Middle East war and its widespread fallout. Expect radical, if not desperate, moves by the U.S. as the approval ratings of the Trump administration fall and prices rise with no clear scapegoat. This makes trading rather difficult, so it might be a good idea to consider options to take non-linear risks.

Today, Autoinvest will take the next positions, so do not be surprised…

Tuesday, May 5, 2026

U.S. International Trade, Global PMI

Earnings: Shopify, PayPal, Pfizer, KKR, AMD, Supermicro, Strategy

Wednesday, May 6, 2026

Global PMI

Earnings: Disney, Novo Nordisk, Uber, Arm, Applovin, Snap

Thursday, May 7, 2026

Germany Industrial Orders, Initial Jobless Claims

Earnings: Blackstone, McDonald's, Coinbase

Friday, May 8, 2026

Germany Industrial Output, Nonfarm Payrolls, University of Michigan Sentiment Final