Midday Fly By: Defense stocks surge on Trump budget request

The major averages were mixed near noon as investors reassess early 2026 optimism. After major indexes hit record highs in recent sessions, profit-taking and risk aversion have taken hold ahead of the forthcoming jobs report.

Broader sentiment reflects a shift to a more measured and selective market, with investors digesting geopolitical developments, mixed earnings cues and fresh macro indicators.

Looking to commodities, gold was mostly unchanged near noon, while oil was sharply higher, climbing nearly 2%.

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.

1. STOCK NEWS:

• Shares of defense companies surged after President Trump said on social media yesterday that he wants the 2027 military budget to be $1.5T, not $1T
• JPMorgan Chase (JPM) will become the new issuer of the Apple Card (AAPL), taking over from Goldman Sachs (GS)
• Constellation Brands (STZ) reported better-than-expected Q3 results and reiterated its FY26 EPS guidance
• Applied Digital (APLD) reported upbeat Q2 earnings and revenue
• Franklin Covey (FC) reported downbeat Q1 results

2. WALL STREET CALLS:

• Alphabet (GOOGL) upgraded to Overweight at Cantor Fitzgerald
• Needham downgraded Nike (NKE) on its slower than expected turnaround while Deutsche Bank resumed coverage with a Hold rating
• Piper Sandler upgraded the “Big 3” U.S. automakers General Motors (M), Ford (F) and Stellantis (STLA) to Overweight
• UBS upgraded Gap (GAP) to Buy ahead of an expected positive earnings inflection
• Alcoa (AA) downgraded to Underweight at JPMorgan

3. AROUND THE WEB:

• HSBC (HSBC) has agreed to pay EUR 300M to settle a criminal and civil case in France over its alleged role in a dividend-tax scandal, Bloomberg reports
• Nvidia (NVDA) requires full upfront payment from Chinese customers looking to buy H200 AI chips, Reuters reports
• Ford (F) intends to introduce eyes-off technology on an upcoming $30,000 all-electric car in 2028, CNBC says
• China on Wednesday unveiled rules banning major platforms like Alibaba (BABA) and JD.com (JD) from coercing merchants into discounts or practices seen as disrupting market order, Bloomberg reports
• Chevron (CVX) is in discussions with the U.S government to expand a key license to operate in Venezuela so it can increase crude exports to its own refineries and sell to other buyers, Reuters says

4. MOVERS:

• flyExclusive (FLYX) increases after signing an authorized dealership agreement with Starlink
• Enliven (ELVN) gains after reporting “positive” initial Phase 1b data for ELVN-001 in CML
• China SXT Pharmaceuticals (SXTC) higher in New York after announcing the launch of Strategic AI Insights Initiative
• Immuneering (IMRX) lower after reporting survival and safety data from its Phase 2a trial of atebimetinib
• CorMedix (CRMD) falls after providing guidance for Q4 and FY26

5. EARNINGS/GUIDANCE

• Commercial Metals (CMC) reported Q1 results and provided guidance for Q2, with CEO Peter Matt commenting, “The first quarter market an exceptional start to 2026”
• RPM (RPM) reported Q2 results, with EPS and revenue missing consensus
• Helen of Troy (HELE) reported Q3 results and cut its guidance for FY26
• Simply Foods (SMPL) reported Q1 results and provided guidance for FY26, with CEO Geoff Tanner commenting, “Our first quarter financial performance came in modestly ahead of our expectations”
• Neogen (NEOG) reported Q2 results and raised its guidance for FY26

INDEXES:

Near midday, the Dow was up 0.52%, or 254.22, to 49,250.30, the Nasdaq was down 0.63%, or 147.42, to 23,436.85, and the S&P 500 was down 0.05%, or 3.14, to 6,917.79.