Midday Fly By: McDonald’s, Arm report Q1 beats

The major averages were little changed near noon, though a sharp decline in oil prices reflects optimism around a potential U.S.-Iran framework agreement. Crude dropping back toward the low-$90s is relieving pressure on inflation expectations and taking some stress out of rates.

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Semiconductor and hyperscaler momentum has gone global. Japan, Korea, Taiwan, and the U.S. are all participating simultaneously, and trillion-dollar market caps are expanding outside the traditional mega-cap U.S. cohort. The market is effectively treating AI infrastructure spending as a multi-year capex supercycle.

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

1. STOCK NEWS:

• McDonald’s (MCD) reported better-than-expected Q1 results, with comps up 3.8%
• Arm (ARM) reported upbeat Q1 results and provided guidance for Q1 and FY26
• Whirlpool (WHR) reported downbeat Q1 results and cut its FY26 earnings outlook
• Shell (SHEL) reported year-over-year increases in Q1 earnings and revenue and commenced a $3B share buyback program
• Snap (SNAP) reported upbeat Q1 results and provided Q2 revenue guidance

2. WALL STREET CALLS:

• Arete (PLNT) downgraded to Market Perform at William Blair
• Alcoa (AA) upgraded to Overweight at Wells Fargo
• Clear Secure (YOU) downgraded to Neutral at DA Davidson
• JPMorgan (FRPT), sees sales growth outpacing peers

3. AROUND THE WEB:

• Google (GOOGL) is in talks with Blackstone (BX) and KKR (KKR) for AI model access, The Information reports
• Morgan Stanley (MS) is rolling out crypto trading on its E*Trade platform, Bloomberg reports
• Tesla’s (TSLA) China-made EV sales rose 36% in April, Rueters says
• Meta (META) has asked a judge to overturn a jury verdict that found it partially liable for a user’s depression due to alleged addictive platform design, Reuters reports
• JPMorgan (JPM) offered $1M to settle sexual assault and discrimination claims brought by a former investment banker before he refiled a lawsuit alleging misconduct within the bank, WSJ reports

4. MOVERS:

• Datadog (DDOG) jumps after providing a “beat and raise” report for Q1
• Fortinet (FTNT) rises as multiple analysts raised their price targets on the stock following quarterly results
• Shake Shack (SHAK) drops after reporting quarterly results and naming Michelle Hook CFO
• Zoetis (ZTS) lower after reporting downbeat Q1 results
• Coherent (COHR) falls after reporting quarterly results

5. EARNINGS/GUIDANCE:

• TripAdvisor (TRIP) reported lower-than-expected Q1 results
• Becton Dickinson (BDX) provided a “beat and raise” report for Q2
• Peloton (PTON) reported mixed Q1 results
• Planet Fitness (PLNT) cut its FY26 earnings outlook
• US Foods (USFD) reported downbeat Q1 results

INDEXES:

Near midday, the Dow was down 0.13%, or 63.63, to 49,846.96, the Nasdaq was up 0.39%, or 100.80, to 25,939.75, and the S&P 500 was up 0.09%, or 6.41, to 7,371.53.