Midday Fly By: Seagate reports Q3 beat, Visa reports mixed Q2

The major averages were lower near noon, adding to yesterday’s losses as oil prices surge once again amid a U.S. blockade of Iranian ports. Markets are trading with a cautious tone as investors position ahead of a high-stakes Federal Reserve decision and a dense slate of mega-cap earnings. The Federal Reserve is widely expected to hold rates steady, but forward guidance is in focus. Policymakers are expected to address the recent rebound in energy prices and whether that complicates the path toward rate cuts later this year.

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

1. STOCK NEWS:

• Seagate (STX) reported better-than-expected Q3 results and provided an upbeat outlook for Q4
• Starbucks (SBUX) provided a “beat and raise” report for Q2
• Booking (BKNG) reported mixed Q1 results and provided guidance for Q2 and FY26
• Visa (V) reported better-than-expected Q2 earnings and revenue and provided its outlook for Q3 and FY26
• Robinhood (HOOD) reported downbeat Q1 results

2. WALL STREET CALLS:

• T-Mobile (TMUS) upgraded to Outperform at Oppenheimer
• Spotify (SPOT) upgraded to Buy at Rosenblatt
• BofA double (MOH) and Centene (CNC) to Buy from Underperform to Buy from Underperform and raised Elevance Health (ELV) to Buy from Neutral on the view that Medicaid margins are likely bottoming in 2026
• William Blair (QLYS), Tenable (TENB) and Rapid7 (RPD), citing a “sobering view” of the current investor mindset on software companies
• JPMorgan (BF.B) to Underweight after the company terminated its merger talks with Pernod Ricard

3. AROUND THE WEB:

• Tencent (TCEHY) employees used Claude Code to assist them with evaluating and fine-tuning the company’s new Hy3 model to improve its performance, The Information says
• Berkshire Hathaway (BRK.A) and Chubb (CB) have received approval to exclude AI-related damages from standard liability policies, with regulators approving most requests, The Information reports
• The leadership transition at Disney (DIS) has quickly been marked by a series of operational setbacks and escalating political risk, NY Times says
• Following Q1 results, Eli Lilly (LLY) investors will be searching for insight into the launch of weight-loss pill Foundayo, Reuters reports
• Uber (UBER) has added hotel booking functionality within its app through a partnership with Expedia (EXPE) expanding its push toward becoming a broader “super app” beyond transportation, NY Times says

4. MOVERS:

• KalVista (KALV) gains after entering an agreement to be acquired by Chiesi for $27 per share in cash
• Silicon Motion (SIMO) increases in New York after reporting Q1 results and providing guidance for Q2
• NXP Semiconductors (NXPI) and Bloom Energy (BE) higher in New York after reporting quarterly results
• Teradyne (TER) and O-I Glass (OI) lower after reporting Q1 results and providing guidance for Q2
• GE Healthcare (GEHC) falls after reporting Q1 results and announcing updates to its executive leadership

5. EARNINGS/GUIDANCE:

• AbbVie (ABBV) reported Q1 results, raised its guidance for FY26, and provided its outlook for Q2
• CTS Corporation (CTS) reported Q1 results and raised its guidance for FY26
• Federal Signal (FSS) reported Q1 results, with EPS and revenue beating consensus
• Amphenol (APH) reported Q1 results, with CEO Adam Norwitt commenting, “We are pleased to have closed the first quarter of 2026 with record sales and Adjusted Diluted EPS, both exceeding the high end of our guidance”
• Emcor (EME) reported Q1 results and raised its guidance for FY26, with CEO Tony Guzzi commenting, “We started the year well, with record quarterly revenues and strong operating performance”

INDEXES:

Near midday, the Dow was down 0.65%, or 321.35, to 48,820.58, the Nasdaq was down 0.11%, or 27.58, to 24,636.22, and the S&P 500 was down 0.15%, or 10.80, to 7,128.00.