MARKET WRAPS
STOCKS: Stocks finished mixed as strength in the semiconductor sector offset concerns about peace negotiations in the Middle East.
TREASURYS: Treasury yields fell as inflation concerns subsided somewhat.
FOREX: The U.S. dollar ticked down after weak U.S. economic readings.
COMMODITIES: Globally traded Brent crude futures rose 3.6% to $99.58 a barrel amid concerns about clashes between the U.S. and Iran near the Strait of Hormuz. West Texas Intermediate futures fell 2.8% to $93.89 a barrel.
HEADLINES
U.S. Consumer Sentiment Worsened in May
Consumer confidence edged downward in May as the inflationary effects of the war in the Middle East intensified, a monthly survey from The Conference Board said.
The research group said Tuesday its consumer confidence index fell to 93.1 in May from an upwardly revised 93.8 in April. Economists polled by The Wall Street Journal had expected a reading of 92.0.
Among age groups, confidence ticked up for consumers aged 35-54, but trended downward for older and younger consumers.
U.S. Home Price Growth Slowed in March
U.S. home-price growth slowed slightly in March as higher mortgage rates intensified the affordability squeeze among home buyers.
The S&P Cotality Case-Shiller National Home Price Index, which measures home prices across the country, rose 0.7% in the 12 months through March, compared with a 0.8% increase in February.
For the 10th consecutive month, inflation outpaced national home price appreciation, the survey said.
Lilly Agrees to Buy Trio of Vaccine Developers
Eli Lilly agreed to acquire three vaccine developers in deals valued at up to nearly $4 billion combined, the company said Tuesday.
The deals mark a new push by the weight-loss drug market leader into infectious-disease prevention.
BP Removes Chairman After Concerns About Bullying Behavior
BP has removed its chairman, Albert Manifold, after the oil major's board was told that he was verbally abusive and bullying toward employees, and had mishandled company information, according to people familiar with the matter.
The London-based company said Tuesday that its board had unanimously decided that Manifold should no longer serve as chair, and that he would depart immediately.
"The board has been surprised and disappointed to learn of governance oversight and conduct issues it deems unacceptable and has taken decisive action," said Amanda Blanc, the company's senior independent director.
Dropbox Co-founder Houston to Step Down as CEO After 19 Years
Dropbox Chief Executive Andrew Houston will step down from his role after 19 years at the head of the company and become executive chairman.
Ashraf Alkarmi, general manager of the company's "core" business, will become the new CEO. Houston and Alkarmi will serve as co-CEOs for a period to facilitate the transition.
Houston co-founded Dropbox in 2007 with Arash Ferdowsi, whom he met when both were students at MIT. The pair aimed to build a virtual file cabinet for users to access their documents, photos, music and videos. They successfully attracted new users partially by providing at least two gigabytes of space free, and by waiving fees for additional space for those referring new customers.
AutoZone Says Cool Weather Led to Slowing Sales Growth
AutoZone reported higher fiscal third-quarter sales boosted by domestic growth, but it said weather slowed momentum as the quarter progressed.
"This slowdown in sales was caused by unseasonably cool weather impacting our heat-related categories, which normally begin to ramp this time of year as summer heat begins to take hold," said Chief Executive Phil Daniele, citing lower volumes in categories including air conditioning, starting and charging.
Shares fell 12% to $3,008.19. The stocks of AutoZone competitors O'Reilly Automotive and Advance Auto Parts also fell modestly following AutoZone's earnings.
American Airlines to Offer Starlink Internet on Flights
American Airlines is the latest airline to tap Starlink to provide speedy internet service in the skies.
The Fort Worth, Texas-based carrier said Tuesday it plans to install the service on more than 500 single-aisle Airbus planes starting early next year-a significant portion of its fleet.
Fast, free Wi-Fi has become a must-have in-flight amenity for passengers in recent years. Starlink, the service operated by Elon Musk's SpaceX, has become a dominant provider for airlines. It has signed up customers including United Airlines, Southwest Airlines and Alaska Air Group.
TALKING POINT For Wall Street's Private Investments, In-House Insurers Are the Go-To Buyer
Insurance companies are increasingly investing policyholders' money in private credit sold by parent firms or affiliated parties, an approach critics say sets up potential conflicts of interest.
Wall Street's biggest private asset managers have flocked to life insurance over the past decade, viewing insurers' huge portfolios as a perfect match for their investment products. Now insurer portfolios are filling up with products created by related private-equity firms such as Apollo Asset Management and Brookfield Asset Management. So-called affiliated assets grew 22% to a combined $127 billion over the past year for six private-equity linked life insurers tracked by The Wall Street Journal.
American Equity Investment Life Insurance's affiliated asset portfolio grew to $6.5 billion last year from $450 million in 2023 after it was purchased by Brookfield Corporation's Brookfield Wealth Solutions arm. Athene, owned by Apollo Global Management, last year reported the most affiliated assets of any insurer at $52 billion-$12 billion more than in 2024. More than a third of assets were deemed affiliated at Security Benefit Life, which is owned by billionaire sports investor Todd Boehly alongside private asset manager, Eldridge.
"Where we've seen most of the increase in affiliated investments in recent years is from insurers partnering with affiliated asset managers that have more direct credit origination capabilities," said Kevin Clark, chief accounting specialist at the Iowa Insurance Division.
There are risks to policyholders: Asset managers could impose excessive fees on affiliated insurers or stash underperforming, hard-to-sell assets on insurance company balance sheets.
Athene and other insurers with large affiliated asset portfolios say they maintain strict controls to ensure they purchase only investments aligned with policyholders' interests. Security Benefit said all transactions with affiliates are conducted on "arm's-length, market consistent terms."
--Heather Gillers
Expected Major Events for Wednesday
06:45/FRA: May Consumer confidence survey
08:00/ITA: Mar Industrial turnover
11:00/US: 05/22 MBA Weekly Mortgage Applications Survey
12:55/US: 05/23 Johnson Redbook Retail Sales Index
14:00/US: May Richmond Fed Business Activity Survey
20:30/US: API Weekly Statistical Bulletin
23:01/UK: Apr Zoopla House Price Index
23:01/UK: Apr UK monthly automotive manufacturing figures
23:01/UK: CBI Service Sector Survey
23:50/JPN: May Provisional Trade Statistics for 1st 10 days of Month
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Wednesday
Abercrombie & Fitch Co - Class A $(ANF)$ is expected to report $1.26 for 1Q.
Agilent Technologies Inc $(A)$ is expected to report $1.23 for 2Q.
American Superconductor Corp $(AMSC)$ is expected to report $0.10 for 4Q.
Arxis Inc $(ARXS)$ is expected to report for 1Q.
BQE Water Inc (BQE.V) is expected to report for 1Q.
Bank of Montreal (BMO,BMO.T) is expected to report $3.33 for 2Q.
Bank of Nova Scotia (BNS,BNS.T) is expected to report $1.39 for 2Q.
Bath & Body Works Inc $(BBWI)$ is expected to report $0.29 for 1Q.
Braze Inc $(BRZE)$ is expected to report $-0.26 for 1Q.
Capri Holdings Ltd (CPRI) is expected to report $0.13 for 4Q.
Dick's Sporting Goods Inc $(DKS)$ is expected to report $2.98 for 1Q.
Dycom Industries Inc $(DY)$ is expected to report $1.40 for 1Q.
EQB Inc (EQB.T) is expected to report for 2Q.
Everpure Inc (P) is expected to report $0.05 for 1Q.
Excellon Resources Inc (EXN.T) is expected to report for 1Q.
HOOKIPA Pharma Inc (HOOK) is expected to report for 1Q.
HP Inc $(HPQ)$ is expected to report $0.65 for 2Q.
Heico Corp - Class A (HEI,HEIA) is expected to report $1.33 for 2Q.
Mesa Laboratories Inc (MLAB) is expected to report $0.40 for 4Q.
Monro Inc $(MNRO)$ is expected to report $-0.02 for 4Q.
Movado Group Inc $(MOV)$ is expected to report $0.04 for 1Q.
National Bank of Canada (NA.T,NTIOF) is expected to report $3.05 for 2Q.
Nutanix Inc $(NTNX)$ is expected to report $0.08 for 3Q.
Phreesia Inc $(PHR)$ is expected to report $0.01 for 1Q.
Richtech Robotics Inc (RR) is expected to report $-0.06 for 2Q.
Salesforce Inc (CRM) is expected to report $1.79 for 1Q.
Snowflake Inc (SNOW) is expected to report $-0.82 for 1Q.
Strata Skin Sciences Inc (SSKN) is expected to report for 1Q.
Synopsys Inc $(SNPS)$ is expected to report $0.29 for 2Q.
U-Haul Holding Co (UHAL) is expected to report $-0.60 for 4Q.
nCino Inc $(NCNO)$ is expected to report $0.05 for 1Q.
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This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
May 26, 2026 16:38 ET (20:38 GMT)
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