MARKET WRAPS
STOCKS: Stocks were mixed after inflation data and rising oil prices underscored the energy shock caused by the Iran war.
TREASURYS: Treasury yields rose after inflation data.
FOREX: The U.S. dollar rose against rivals on the inflation outlook.
COMMODITIES: Oil futures rose as the Strait of Hormuz remained shut due to a stalemate between the U.S. and Iran.
HEADLINES
Inflation Soared to 3.8% in April, Driven by Gasoline Prices
Consumer prices rose 3.8% in April from a year earlier, a clear impact of higher gas prices since the start of the war with Iran.
The figures, reported Tuesday by the Labor Department, surpassed the previous month's reported increase of 3.3%. Economists polled by The Wall Street Journal had expected inflation of 3.7%. The April increase was the highest in three years.
Kevin Warsh Confirmed as Fed Gov, Chair Vote Expected This Week
Kevin Warsh is one Senate vote away from running the Federal Reserve.
The chamber confirmed him to the Fed's Board of Governors on Tuesday with a vote of 51-45, almost entirely along party lines. Pennsylvania Democrat John Fetterman was the lone crossover.
A separate confirmation vote for the chairmanship itself is expected as soon as Wednesday, just days before Jerome Powell's term as chair expires Friday.
Trump Can Keep Collecting Global 10% Tariffs After Appeals Court Stays Decision
A federal appeals court has granted the Trump administration's request to pause last week's ruling by the Court of International Trade declaring Trump's latest global tariffs unlawful.
The appeals court agreed to stay last week's trade court decision and granted the administration a temporary but immediate stay "until further notice" while it considers the administration's appeal of that ruling.
The stay means that the collection of those 10% import tariffs, which President Donald Trump imposed on Feb. 20 under Section 122 of the Trade Act of 1974, will continue.
EBay Rejects GameStop's $56 Billion Takeover Proposal
EBay said Tuesday that its board rejected GameStop's unsolicited $56 billion takeover proposal.
In a letter to GameStop Chief Executive Officer Ryan Cohen, eBay Chairman Paul Pressler wrote, "We have concluded that your proposal is neither credible nor attractive." The company cited uncertainty regarding GameStop's proposal, including financing and operational risks of a combined operation.
EBay added in the letter that it is confident its current management team is well-positioned to continue leading the business and driving growth. Its shares fell around 1% in premarket trading Tuesday, while GameStop was down around 4%.
Jack Daniel's Maker Brown-Forman Rejects $15 Billion Takeover Offer From Sazerac
Jack Daniel's maker Brown-Forman rejected a roughly $15 billion takeover offer from rival Sazerac, according to people familiar with the matter.
Advisers for Brown-Forman informed Sazerac on Monday that the company was rejecting the $32-a-share cash offer Sazerac recently made, the people said.
Brown-Forman is publicly traded, but a majority of the company's voting stock is controlled by Brown family members. Sazerac is privately held and entirely family owned.
SpaceX and Google Are in Talks to Launch Data Centers in Orbit
Google is in talks with SpaceX for a rocket-launch deal as the search giant expands its own efforts to put orbital data centers in space, according to people familiar with the discussions.
A launch deal would put the two companies in partnership as they gear up to compete on orbital data centers, an unproven technology that SpaceX Chief Executive Elon Musk has said is the next frontier for his rocket company.
Google is also in discussions about a potential deal with other rocket-launch companies, one of the people said.
FDA Commissioner Marty Makary, Under Pressure From Trump, to Leave Administration
WASHINGTON-Food and Drug Administration Commissioner Marty Makary is leaving his role, President Trump told reporters Tuesday, after Makary had battled officials in the health department and the White House on a range of policy issues.
His departure became official after Trump signed off last week on a plan to fire Makary, The Wall Street Journal previously reported. Makary was planning to resign Tuesday, according to people familiar with the matter.
"Everybody wants that job," Trump said. "Marty is a terrific guy and he's going to go on and lead a good life. He was having some difficulty."
OpenAI CEO Sam Altman Defends His Leadership, Personal Investing at Trial
OpenAI Chief Executive Sam Altman has taken the stand in the third and likely final week of Elon Musk's blockbuster trial that could shape the future of artificial intelligence.
In a suit and a dark lavender tie, Altman kicked off his testimony by addressing Musk's bold declaration at the start of the trial that Altman "stole" a charity.
"It feels difficult to even wrap my head around that framing," he said. "I'm very proud of the work that's been done...I hope as OpenAI continues to do well, the nonprofit will do even better."
Under Armour Posts Loss on Lower Revenue
Under Armour reported lower fiscal fourth-quarter revenue and said it expects cost pressures from the conflict in the Middle East and additional marketing investments to weigh on profit for fiscal 2027.
Shares were down 11% to $5.21 in premarket trading.
The company posted a quarterly loss of $43.4 million, or 10 cents a share, compared with a loss of $67.5 million, or 16 cents a share, the year prior.
Bristol-Myers Squibb and China's Hengrui Pharma Forge Tie-Up
U.S. pharmaceutical giant Bristol-Myers Squibb has struck a strategic partnership and licensing deal with major Chinese drugmaker Hengrui Pharmaceuticals, in a deal that could worth more than $15 billion.
The two companies said Tuesday they would collaborate to advance 13 early stage drug programs.
As part of the partnership, BMS will get exclusive rights-outside mainland China, Hong Kong and Macau-to four oncology and hematology treatments developed by Hengrui. In return, Hengrui will receive rights in those Chinese markets to four immunology drugs developed by BMS.
TALKING POINT Despite the War, Energy Stocks Are Cheap
The world is in the middle of a historic oil crisis, yet the biggest bargains on Wall Street can be found in U.S. energy stocks.
After the latest round of oil-producer earnings, analysts have raised their profit expectations for the sector. They now expect the energy stocks in the S&P 500 to generate 58% more earnings per share in 2026 than they did before the Iran war began, according to FactSet.
Yet energy stocks, just like the rest of the market, have been reacting to every headline suggesting a potential breakthrough in negotiations between the U.S. and Iran. The price of the energy basket in the S&P 500 is just 2% higher than where it was before the war, when oil futures were close to $70 a barrel and the world had a supply glut. Today, oil prices are closer to $100 a barrel and the world has lost roughly a billion barrels of oil supply.
As a result, the sector that most directly benefits from the Strait of Hormuz closure has undergone the biggest earnings-multiple contraction since the start of the war. For investors lacking exposure to energy, this may be a good time to buy the dip.
True, the sector was trading at high multiples before the conflict began. Even so, the selloff in energy equities puts the group at less than 14 times forward earnings, making it 36% cheaper than the overall index. That is steeper than its 29% discount on average over the past decade.
Energy companies' latest earnings commentary should have been a bullish sign for the stocks. Despite the surge in oil prices, oil majors and U.S. shale producers aren't deviating much from their existing spending plans. This means there isn't going to be a flood of oil supply to damp prices.
Market uncertainty is one reason why companies aren't committing more capital. But there is also a structural reason: U.S. shale is a maturing resource with its best days of growth behind it. "If your company has 10 to 12 years of inventory and you add 10% to your activity now, you all of a sudden have maybe 10 years or less [of inventory]. That becomes an issue," said Scott Hanold, equity analyst at RBC Capital Markets.
--Jinjoo Lee
Expected Major Events for Wednesday
04:30/JPN: Apr Corporate Insolvencies
05:00/JPN: Apr Economy Watchers Survey
05:30/FRA: 1Q ILO Unemployment and Labour Market-related indicators
06:00/GER: Apr WPI
06:45/FRA: Apr CPI
08:00/FRA: May IEA Oil Market Report
11:00/US: 05/08 MBA Weekly Mortgage Applications Survey
12:30/US: Apr PPI
14:00/US: Apr Online Help Wanted Index
14:30/US: 05/08 EIA Weekly Petroleum Status Report
16:59/GER: Mar Balance of Payments
23:01/UK: Apr RICS Residential Market Survey
23:50/JPN: Apr Money Stock, Broadly-defined Liquidity
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Wednesday
AIM ImmunoTech Inc $(AIM)$ is expected to report for 1Q.
Abeona Therapeutics Inc (ABEO) is expected to report $-0.34 for 1Q.
Aimia Inc (AIM.T) is expected to report for 1Q.
Altimmune $(ALT)$ is expected to report $-0.25 for 1Q.
Aprea Therapeutics Inc $(APRE)$ is expected to report $-0.21 for 1Q.
Arbutus Biopharma Corp (ABUS) is expected to report $-0.03 for 1Q.
Beasley Broadcast Group Inc $(BBGI)$ is expected to report for 1Q.
Big Rock Brewery Inc (BR.T) is expected to report for 1Q.
Boyd Group Services Inc (BYD.T) is expected to report for 1Q.
Cabaletta Bio Inc (CABA) is expected to report $-0.43 for 1Q.
Clene Inc (CLNN) is expected to report for 1Q.
DarioHealth Corp (DRIO) is expected to report for 1Q.
(MORE TO FOLLOW) Dow Jones Newswires
May 12, 2026 16:39 ET (20:39 GMT)
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