Retail Focus Turns to Home Depot Earnings 19/05/2026

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Market wrap:

• U.S. stocks slipped Monday, with the S&P 500 and Nasdaq Composite extending losses for a second straight session as weakness in AI-linked names weighed on sentiment. The S&P 500 edged down 0.1%, while the tech-heavy Nasdaq fell 0.5%. The Dow Jones Industrial Average bucked the trend, rising 159.95 points, or 0.3%. Memory-chip stocks led the pullback after Seagate CEO Dave Mosley warned at a JPMorgan conference that adding new factory capacity to meet AI-driven demand “would just take too long.” Seagate fell nearly 7%, while Micron Technology dropped almost 6% in sympathy.
• Other AI-adjacent stocks also traded lower. The losses follow a record-setting rally in recent weeks, with the S&P 500 and Nasdaq reaching fresh highs and the Dow briefly reclaiming the 50,000 level. Some strategists are now questioning whether the strongest phase of the rally has already passed. Geopolitics remained in focus after President Donald Trump said he had called off a planned Tuesday strike on Iran following requests from three Middle Eastern leaders to “hold off.” Home Depot, Eagle Materials, and Amer Sports are set to report before Tuesday’s open, while traders will also watch April pending home sales data.

Chip Supply Chains Face Iran War Strain

• The AI rally is still lifting semiconductor stocks, but the companies powering the boom are warning that the Iran war is starting to pressure supply chains, costs and margins. TSMC, Foxconn and Infineon all flagged Middle East-related challenges during earnings season, pointing to higher prices for energy, freight, chemicals, gases and precious metals. TSMC, which manufactures chips for Nvidia, said the conflict could weigh on profitability if key input costs continue rising. Helium is one of the biggest concerns. The gas is critical for semiconductor manufacturing, and Qatar, one of the world’s largest suppliers, has seen export capacity disrupted by Iranian strikes. Other materials used in chip production, including bromine and aluminum, have also faced supply stress.
• Analysts say the immediate pressure is coming from higher energy and logistics costs, but a prolonged conflict could create deeper problems for AI data-center economics, chipmaker margins, and hardware supply chains. Some companies are already responding by building inventory buffers, diversifying suppliers and rerouting shipments. But analysts warn that even a ceasefire would not quickly repair the supply-side damage. For now, AI demand remains strong enough to support the sector. But if the U.S.-Iran standoff drags through the summer, chip supply risks may become a bigger issue in future earnings reports.

Stocks on the move:

• Agilysys (AGYS): Shares jumped 16% after the hospitality software company beat fourth-quarter revenue expectations and issued stronger-than-expected full-year revenue guidance.
• Akamai Technologies (AKAM): Shares slipped 3% after the cloud and cybersecurity company announced a proposed $2.6 billion convertible senior notes offering.
• Mobileye (MBLY): Shares fell nearly 8% after Jefferies initiated coverage with an underperform rating, citing rising competitive pressure and limited upside.
• Delta Air Lines (DAL): Shares rose more than 1% after a filing showed Berkshire Hathaway took a $2.6 billion stake in the airline.
• ServiceNow (NOW): Shares gained 6% after Bank of America reinitiated coverage with a buy rating, saying the company is more likely to benefit from AI than be replaced by it.

Watchlist: MSFT, AMAT, MU, NVDA, HD, BEKE, NOW, RBLX

Key Economic Events Today:

EST time

08:15 am: USD ADP Weekly Employment Change
10:00 am: USD Pending Home Sales
07:00 pm: USD FOMC Member Paulson Speaks



Earnings

BMC (Before Market Open): Home Depot (HD), KE Holdings (BEKE), Amer Sport (AS)

AMC (After Market Close): Keysight Technologies (KEYS), ZTO Express (ZTO), Toll Brothers (TOL)



The TEFS Analyst team wishes you a successful day!