MARKET WRAPS
STOCKS: Stocks rose amid optimism about a peace deal in the Middle East.
TREASURYS: Treasury yields fell after mixed U.S. economic data.
FOREX: The U.S. dollar slipped as inflation fears moderated.
COMMODITIES: Oil futures ticked up as traders awaited confirmation of a purported cease-fire extension deal between the U.S. and Iran.
HEADLINES
Iran War Keeps Fed's Inflation Gauge Above Inflation Target
The Fed's preferred gauge of monthly price increases grew at a slower pace in April but still remained above its preferred target rate, the Commerce Department said Thursday.
The personal-consumption expenditures price index climbed by 0.4% in April from the previous month, after rising by 0.7% in March, the Commerce Department said. Excluding the volatile food and energy categories, core PCE prices rose by 0.2%.
Over the past year, the PCE price index is up by 3.8%, still above the 2% target rate for the Fed. The core 12-month PCE inflation rate is 3.3%.
U.S. GDP Growth Revised Lower for First Quarter
The U.S. economy grew more slowly during the first three months of the year, updated government data showed Thursday.
Gross domestic product, a broad measure of the goods and services produced across the U.S., rose at a 1.6% seasonally and inflation-adjusted annual rate in January through March, the Commerce Department said Thursday.
The department previously estimated first-quarter GDP rose at a 2% rate. And economists surveyed by The Wall Street Journal had expected the pace to stay at 2%.
Dell Raises Fiscal Year Outlook After Sales Soar 88%
Dell Technologies raised its outlook for the year after first-quarter sales climbed 88% on demand for artificial intelligence products.
Full-year revenue is now expected to reach $165 billion to $169 billion, up from a prior range of $138 billion to $142 billion, the Round Rock, Texas, technology company said Thursday.
It also lifted its adjusted earnings per-share guidance to $17.90 at the midpoint, from $12.90.
Anthropic Rockets to $965 Billion Valuation, Topping OpenAI in AI Showdown
AI startup Anthropic closed a funding round at a $965 billion valuation, rocketing past ChatGPT-maker OpenAI as the companies race ahead on expected public listings this year.
The company has emerged as the front-runner in the AI race and is on track next month to hit $50 billion in "annualized revenue"-a metric startups use that employs short-term sales to forecast a yearly figure. That figure grew 80-fold in the first quarter.
Anthropic, founded in 2021 by Dario Amodei and others who decamped from OpenAI, raised $65 billion from investors including Altimeter Capital, Dragoneer, Sequoia Capital and others, about half OpenAI's tally that closed earlier this year.
Clorox CEO to Step Down for Health Reasons
Clorox Chief Executive Officer Linda Rendle is stepping down for health reasons after more than 20 years at the company.
The company said it would begin a comprehensive CEO search process, during which time Rendle will remain at the helm of the company.
Rendle first joined the company in 2003 as a senior sales analyst, rising through the ranks until becoming CEO in 2020.
April Durable-Goods Orders Beats Forecasts
Orders for durable goods grew at a strong pace in April, a second consecutive monthly increase, the Commerce Department said Thursday.
New orders for long-lasting goods like televisions, appliances and cars were up by 7.9% in April to $346 billion, after a 1.3% increase in March. Analysts polled by The Wall Street Journal were expecting a 3.5% growth rate.
Trends in durables orders are often driven by big swings in categories like airplane orders, because small volumes can come with big dollar figures. Excluding transportation equipment, durable-goods orders were up by a more modest 1.1% last month.
The $71.5 Billion Merger of Two Giant Railroads Just Hit a Snag
A federal regulator is pushing pause on its review of the blockbuster merger between Union Pacific and Norfolk Southern, imperiling the timetable of their $71.5 billion railroad deal.
The Surface Transportation Board on Thursday said it needed more information to "thoroughly evaluate" the two railroads' revised application for a merger that would create a transcontinental rail giant.
"There are several aspects of the revised application that are unclear or underdeveloped and require supplementation," the board said. The board said it has accepted the application but paused the merger-review proceeding, including an environmental review, and will later establish an appropriate schedule for the remainder of the proceeding.
Tilman Fertitta Agrees to Buy Caesars for $5.7 Billion
Billionaire Tilman Fertitta has reached an agreement to buy Caesars Entertainment for about $5.7 billion.
Fertitta's company, Fertitta Entertainment, will pay Caesars shareholders $31 a share and assume about $11.9 billion of the casino company's outstanding debt, the companies said Thursday.
Shares of Caesars were up roughly 1.4% in early trading Thursday.
Tyson Foods Turns to Board Member for Next CEO
Tyson Foods said Jeff Schomburger, a member of the company's board and former Procter & Gamble executive, will take over as the meatpacking giant's next leader.
Schomburger will succeed Donnie King, a veteran of the chicken business who has served as Tyson's CEO since 2021 and spent over four decades with the company. After a transition period beginning in July, Schomburger's first day as CEO will be Oct. 4, Tyson said Thursday.
The CEO change at the Springdale, Ark.-based company follows years of efforts to improve its chicken-processing business, which has helped boost its profit in recent months. Tyson has also been looking for ways to grow its prepared-foods division, which includes brands such as Hillshire Farm deli meats, Jimmy Dean sausage and Ball Park hot dogs.
TALKING POINT Gen Z Can't Get Enough of Roth IRAs
Gen Z is the Roth generation.
The youngest savers are flocking to Roth individual retirement accounts, taking advice from their parents and social-media influencers touting the tax-free growth the accounts offer.
Among Gen Z investors, total IRA contributions grew 65% year-to-year in the first quarter of 2026, compared with a 31% increase for millennials. Three-quarters of people age 35 and under chose Roths, compared with less than half in that age group a decade ago, according to Fidelity Investments.
Overall, IRA contributions for people of all ages hit record highs in the first quarter of this year, with nearly 30% more dollars flowing into these accounts than in the same period last year. The number of IRA owners making contributions also rose nearly 30%, according to data published Thursday by Fidelity, based on an analysis of 19.6 million IRA accounts.
Nearly seven out of every 10 dollars that went into a Fidelity IRA in the first three months of this year ended up in a Roth account. With these, owners contribute after-tax dollars that grow and can be withdrawn tax-free. In contrast, traditional retirement accounts often allow tax-deductible contributions, but withdrawals are taxed as ordinary income.
"There is definitely a Roth effect happening," with the youngest investors leading the charge, said Rita Assaf, vice president of retirement offerings at Fidelity.
--Anne Tergesen
Expected Major Events for Friday
01:00/JPN: Apr Steel Imports & Exports Statistics
04:30/JPN: Apr Preliminary Report on Petroleum Statistics
05:00/JPN: May Consumer Confidence Survey
05:00/JPN: Apr Housing Starts
05:00/JPN: Apr Construction Orders
06:00/GER: Apr Foreign trade price indices
06:45/FRA: May Provisional CPI
06:45/FRA: Apr Household consumption expenditure in manufactured goods
06:45/FRA: 1Q GDP - detailed figures
06:45/FRA: 1Q Job creation
07:55/GER: May Labour market statistics (incl unemployment)
08:00/GER: May Bavaria CPI
08:00/GER: May North Rhine Westphalia CPI
08:00/GER: May Saxony CPI
08:00/GER: May Hesse CPI
08:00/GER: May Brandenburg CPI
08:00/GER: May Baden-Wuerttemberg CPI
08:00/ITA: Apr Unemployment
08:30/UK: Apr Capital issuance statistics
09:00/ITA: May Provisional CPI
09:00/ITA: May Cities CPI
10:00/ITA: 1Q GDP
12:00/GER: May Provisional CPI
12:30/US: Apr Advance Economic Indicators Report
12:30/CAN: Mar GDP
12:30/CAN: 1Q Quarterly GDP
12:30/US: U.S. Weekly Export Sales
13:45/US: May Chicago Business Barometer - ISM-Chicago Business Survey - Chicago PMI
17:59/UK: REC JobsOutlook survey
19:00/US: Apr Agricultural Prices
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Friday
Bridgford Foods Corp $(BRID)$ is expected to report for 2Q.
Buckle Inc $(BKE)$ is expected to report $0.74 for 1Q.
Genesco Inc $(GCO)$ is expected to report for 1Q.
Laurentian Bank of Canada (LB.T,LRCDF) is expected to report $-0.30 for 2Q.
Smith-Midland Corp $(SMID)$ is expected to report for 1Q.
TAG Oil Ltd (TAO.V,TAOIF) is expected to report 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 28, 2026 16:32 ET (20:32 GMT)
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