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Financial Markets 05/28 16:01
NEW YORK (AP) -- The U.S. stock market pushed to more records Thursday as
profits keep piling up for companies like Dollar Tree, Snowflake and Hormel
Foods. A tentative deal to extend the ceasefire in the war with Iran by 60 days
also helped lift the market and rein in oil prices.
The S&P 500 added 0.6% to its all-time high set the day before after
drifting between small gains and losses in the morning. The Dow Jones
Industrial Average rose 24 points, or less than 0.1%, and the Nasdaq composite
climbed 0.9% as both indexes also set records.
Stocks turned higher after oil prices gave back most of their own morning
gains following reports of the tentative U.S.-Iran agreement, which still needs
President Donald Trump's approval. The price for a barrel of benchmark U.S.
crude oil settled at $88.90 after regressing from an overnight high above
$92.50.
Oil prices have been swinging as hopes rise and fall that the United States
and Iran may reach a deal to reopen the Strait of Hormuz and get crude flowing
again from the Persian Gulf to customers worldwide. They have climbed enough
that a report on Thursday showed a measure of U.S. inflation accelerated last
month to its worst level in three years, roughly matching economists'
expectations.
Even with worries about expensive oil and high inflation, the U.S. stock
market has run to records largely because U.S. companies keep making more
money. Stock prices tend to follow the path of corporate profits over the long
term, and companies have been routinely topping analysts' expectations for the
first three months of 2026.
Dollar Tree's stock soared 17.9% after it became the latest to report fatter
profit than analysts expected. CEO Mike Creedon said improved store conditions
helped the retailer make more profit off each $1 in sales during the latest
quarter despite tariffs adding to its costs. The company also gave a forecast
for profit over the full year that topped analysts' expectations.
Kohl's rallied 20.6% after the retailer reported better results for the
latest quarter than analysts had feared, while Best Buy climbed 15.8% following
its own better-than-expected profit report. Hormel Foods climbed 12.5% after a
strong performance for its Jennie-O ground turkey and exports of Spam luncheon
meat helped it report a better profit than analysts expected.
Snowflake rose 36.5% after saying artificial intelligence continues to be a
strong driver for its business, and profit and revenue for the latest quarter
exceeded expectations.
They helped offset a dip for Salesforce, which fell 0.8% even though it also
reported a better profit for the latest quarter than analysts expected. Its
stock has been under pressure because of worries that AI-powered rivals could
steal away its business, even as Salesforce touts its own AI offerings.
All told, the S&P 500 rose 43.27 points to 7,563.63. The Dow Jones
Industrial Average added 24.69 to 50,668.97, and the Nasdaq composite climbed
242.74 to 26,917.47.
In the bond market, Treasury yields eased after oil prices gave up much of
their gains and reduced the upward pressure on inflation.
The yield on the 10-year Treasury fell to 4.45% from 4.48% late Wednesday.
High yields in bond markets worldwide recently have threatened to slow
economies and undercut prices for stocks and all kinds of other investments.
High yields have already forced the average long-term U.S. mortgage rate to its
most expensive level in nine months, and they could curtail companies'
borrowing to build the AI data centers that have supported the U.S. economy's
growth recently.
A report on Thursday said the pace of sales of new U.S. homes unexpectedly
slowed last month, as higher mortgage rates weighed on the housing market.
In stock markets abroad, indexes dipped across much of Europe and Asia. Hong
Kong's Hang Seng fell 1.3% for one of the world's larger losses.
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AP Business Writer Elaine Kurtenbach contributed to this report.
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