MSM News & Events

Stock futures are higher after yesterday's strong session. Markets are staging a sharp relief rally to kick off April as the dominant narrative is de-escalation. Comments suggesting a potential wind-down of U.S. military activity in Iran have triggered a broad risk-on move across equities, bonds and currencies.Global markets are following suit with Europe up solidly and Asia posting its biggest gains in years. Oil has dropped sharply from recent highs, easing inflation fears and effectively loosening financial conditions at the margin.Treasury yields are falling as markets begin to price in a slightly more accommodative Federal Reserve path if energy-driven inflation pressures fade. At the same time, cyclical sectors and travel names are outperforming globally, reflecting a reversal of the war-risk trade that dominated March.However, the geopolitical situation remains unresolved, with no confirmed ceasefire and lingering risks around the Strait of Hormuz and broader regional escalation. Markets may be pricing in a best-case scenario before it is fully realized, which would create asymmetry if headlines reverse.In pre-market trading, S&P 500 futures rose 0.60%, Nasdaq futures rose 0.83% and Dow futures rose 0.51%.Check out this morning's top movers from around Wall Street, compiled by The Fly.HIGHER -Target Hospitalityup 36% after announcing a $550M multi-year lease and services agreement to construct and provide a facility and hospitality services to a hyperscaler and their development of a data center campus in North TexasDisneyup 1% after Raymond James upgraded the stock to Outperform with a $115 price targetUP AFTER EARNINGS -nCinoup 21%Dave & Buster'sup 7%SES AIup 5%Cal-Maine Foodsup 4%DOWN AFTER EARNINGS -Nikedown 11%RHdown 22%MSC Industrialdown 8%Conagra Brandsdown 1%

Sees Q3 adjusted operating margin 9.7%-10.3%. Sees FY26 capital expenditures $100M-$110M. Sees FY26 tax rate 24.5%-25.5%. McIsaac concluded, "Looking ahead, I remain confident in MSC's ability to execute on our strategic priorities. As we exit the first half of the fiscal year, we expect sales growth and profitability to further strengthen as we leverage our work in sales optimization and productivity. This is reflected in the average daily sales growth of 6% and 10% adjusted operating margin at the midpoint of our outlook for the fiscal third quarter."

Reports Q2 revenue $917.77M, consensus $931.83M. Martina McIsaac, president and CEO, said, "I am encouraged by our performance which resulted in year-over-year operating margin expansion for the second consecutive quarter. While we have not yet seen volumes return to a positive trend, our Core Customer daily sales outperformed total company for the third consecutive quarter, and we expect our volume performance to improve throughout the remainder of the fiscal year."