Happy Friday! I’m CJ, stepping in for Alex today. Some of you might know me from my coverage of technology stocks over the years. A fun fact, my colleagues say I make pretty good origami cranes. Speaking of flying high, have you heard about Dell Technologies? The company has been making notable strides in its AI-driven business.
This morning, stock futures are looking up. All three major indexes are having a strong week, with positive trading sessions.
Here are five key points investors should keep in mind to kick off their trading day.
1. Want to sign a contract?
According to Iranian state media, Tehran launched missiles at unidentified targets yesterday. This military action follows confirmation from the White House that the U.S. and Iran had come to a substantial agreement on a deal to resolve the conflict, though President Trump hasn’t approved it yet.
Here’s what you need to know:
2. Inflation Data
Inflation continues to affect consumers this spring. The Department of Commerce released the Personal Consumption Expenditure Price Index yesterday, revealing a 0.4% rise last month, with the annual rate reaching 3.8%—the highest since May 2023. Core inflation, which omits food and energy, rose 0.2% in April, landing at an annual rate of 3.3%.
While the yearly data met expectations, the monthly figures fell slightly short of Wall Street’s forecasts. This suggests that the recent price hikes might be starting to ease off.
Additionally, inflation is hitting Americans’ savings hard. Recent data shows that daily living costs, alongside fuel and food prices, are outpacing income, driving personal savings rates to their lowest levels since 2022.
3. Dell’s Profits
Dell’s shares jumped by as much as 39% in after-hours trading after the company reported its fastest revenue growth since going public again in 2018. The tech firm surpassed analysts’ expectations with an impressive 88% rise in annual revenue, fueled largely by increasing AI demand. Dell now predicts AI sales to hit $60 billion this year, up from an earlier estimate of $50 billion.
Interestingly, CEO Michael Dell has shown support for President Trump’s second term, and now, with the company enjoying its best month in years, it has secured a $9.7 billion contract from the Department of Defense.
4. A Tale of Two Retailers
Retail reports released yesterday showed mixed results. For instance, despite boosting its marketing campaign with the help of actress Sidney Sweeney, American Eagle Outfitters encountered a 10% dip in sales and lower revenue for its main brand in the first quarter.
On a contrasting note, The Gap saw a 10% increase in sales for its namesake brand, exceeding analyst expectations. However, a decline in Old Navy’s sales led the company to revise its full-year outlook downward, prompting a 15% drop in the stock price during premarket trading.
Meanwhile, Best Buy’s stock rose by 15% after it reported better-than-expected first-quarter results and a slight uptick in revenue.
5. Trump’s New App
Family members can now download The Trump Accounts app, which brings the tax-deferred investment account program closer to its official launch on July 4. Any U.S. child with a Social Security number can open an account, with babies born between 2025 and 2028 eligible for an initial $1,000 deposit from the Treasury. A growing list of companies and philanthropists are also pledging to match that deposit for qualifying families.
Daily Dividend
Here are some stories you won’t want to overlook this week.
