Major Averages Close Mixed Amid Escalating Geopolitical Tensions
The major averages had a mixed close amid stalled peace negotiations between the U.S. and Iran as well as new escalation in the Strait of Hormuz. Investors are also balancing continued strength in corporate earnings and AI-driven optimism with rising geopolitical tension and macro uncertainty.Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.1. STOCK NEWS:Verizonprovided areport for Q1Domino's Pizzareportedand announced an additional $1B share repurchase programShellARC Resourcesfor C$32.80 per shareSun PharmaOrganonfor $14 per share in an all-cash transactionChina has blocked Meta's2. WALL STREET CALLS:Snapto Buy at Rothschild & Co RedburnRothschildPinterestto Neutral from BuyMizuhoAdobeon intensifying competition from AIMizuhoCrowdStrike, citing "numerous exciting growth avenues"Campbell'sto Market Perform at Bernstein3. AROUND THE WEB:Rogers Communicationsis offering voluntary buyouts to half of its staff, Globe and Mail reportsGoogleemployees are urging CEO Sundar Pichai to block military AI use, FT reportsSamsungplans to withdraw from China's home appliance and television market this year, Nikkei Asia reportsBig tech companies are preparing to spend hundreds of billions of dollars on AI infrastructure, with most of their plans dependent on ASML, WSJ saysBayeris hoping the U.S. Supreme Court can reduce or simplify the lawsuits over its Roundup weedkiller and potentially corral litigation that has cost the company over $10B, Bloomberg says4. MOVERS:Veradermicsgained after announcing its Phase 2/3 trial of VDPHL01RE/MAX Holdingsincreased after announcing it will befor $13.80 per shareFlowserve (FLS) rose afterthat Starboard has built a stake in the company and is pushing for changesCompass Therapeuticswas lower afterfrom its COMPANION-002 studyPoet Technologiesfell afterof Celestial AI purchase orders5. EARNINGS/GUIDANCE:Lakeland Financial, with CEO David Findlay commenting, "We started 2026 with robust, record net income for the second consecutive quarter"HBT Financial, with EPS and revenue beating consensusRepay Holdingsreportedand reaffirmed its guidance for FY26WWreaffirmed itsand FY26 financial guidanceGold RoyaltyreportedINDEXES:The Dow fell 62.92, or 0.13%, to 49,167.79, the Nasdaq gained 50.50, or 0.20%, to 24,887.10, and the S&P 500 advanced 8.83, or 0.12%, to 7,173.91.
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- Significant Subscriber Growth: In Q1, Verizon added 55,000 postpaid phone subscriptions, marking the first subscriber gain in the first quarter since 2013, demonstrating the effectiveness of the company's new customer-focused strategy.
- Revenue Continues to Rise: Verizon's overall revenue increased by 2.9% year-over-year to $34.4 billion, with service revenue rising 2.4% to $28.8 billion, indicating successful responsiveness to customer demand.
- Improved Profitability: Adjusted earnings per share (EPS) climbed 7.6% to $1.28, while EBITDA grew 6.7% to $13.4 billion, showcasing the company's dual advantages in cost control and revenue growth.
- Optimistic Future Outlook: Verizon expects to add between 750,000 to 1 million postpaid phone subscribers for the year and has slightly raised its adjusted EPS guidance to a range of $4.95 to $4.99, reflecting confidence in future growth.
- Tractor Supply Performance: Tractor Supply Company (TSCO) reported first-quarter revenue of $3.6 billion, meeting analyst expectations, but its earnings per share of $0.31 fell short of the $0.34 forecast, resulting in a 2.70% drop in stock price, reflecting market concerns about future growth.
- Same-Store Sales Struggles: TSCO's same-store sales growth was only 0.5%, significantly below the expected 1.6%, although the company anticipates a 1% to 3% increase for the year, indicating challenges in a competitive retail landscape.
- Stability of Realty Income: Realty Income (O), a real estate investment trust, owns over 15,511 retail properties with an occupancy rate exceeding 98%, and has raised its quarterly dividend for 114 consecutive quarters, currently offering a dividend yield of 5.1%, providing investors with stable cash flow.
- Verizon's Ongoing Appeal: Verizon Communications (VZ) added 340,000 net postpaid wireless customers in Q1 and expects to gain one million customers by 2026; despite a 1.80% stock decline, its dividend has increased for 19 years, with a yield over 6%, highlighting its attractiveness to income-focused investors.
- Buffett's Investment Impact: Following Warren Buffett's purchase of Sirius XM shares through Berkshire Hathaway, the stock initially surged but has since plummeted approximately 46%, indicating market concerns about its future performance.
- 2026 Performance Outlook: Despite a 35% increase in Sirius XM's stock price to $27 at the start of 2026, the company forecasts flat revenue and a slight decline in adjusted EBITDA, reflecting ongoing pressure on profitability.
- Verizon Earnings Highlights: Verizon reported a 3% year-over-year revenue increase in Q1 2026, with adjusted earnings growing nearly 8%, and raised its 2026 adjusted earnings guidance to $4.95 to $4.99 per share, showcasing robust profitability.
- Dividend Appeal: Verizon increased its dividend from $0.69 to $0.71 per share, achieving a 6.1% yield, which provides stable returns amid market volatility, attracting investor interest.
- Investment Strategy Shift: Chris Grisanti, chief market strategist at MAI Capital Management, purchased Microsoft and Nvidia in Q1 2026 despite Microsoft’s over 12% decline year-to-date, viewing this as a unique opportunity for value investors to acquire these high-quality stocks at below-market P/E ratios.
- Microsoft's Potential: With a current P/E ratio of 19.6, nearly two standard deviations below its six-year average, Grisanti anticipates a 30% upside if it returns to normal valuation levels, with potential total returns nearing 50% in the coming years, highlighting its competitive edge in the AI race.
- Nvidia's Buying Opportunity: Nvidia's stock dropped over 6% in Q1, creating a buying opportunity for Grisanti, who notes its current P/E of 18 times is attractive; if it reverts to its historical norm of 30 times, shares could see a 60% upside, indicating strong growth potential.
- Market Response and Outlook: Despite market volatility affecting both Microsoft and Nvidia, Grisanti plans to buy on dips, reflecting his long-term optimism for these stocks, particularly against the backdrop of ongoing investments in AI and growing market demand.
- Dividend Yield Comparison: Verizon offers a dividend yield of 6%, significantly higher than the S&P 500's average of 1.1%, while AT&T's yield stands at 4.3%, making both stocks appealing for stable dividend investments.
- Dividend Safety Analysis: AT&T's payout ratio is approximately 37%, indicating a safer dividend, whereas Verizon's payout ratio is around 67%, which, while higher, still suggests that both dividends are considered secure by investors.
- Dividend Growth Trends: Verizon increased its dividend by 2.5% in Q1 2026 and has seen a nearly 13% rise over the past five years, while AT&T has not raised its dividend since 2020, leading to erosion of dividend income due to inflation.
- Company Performance Insights: Verizon reported positive net adds for postpaid phones in Q1 2026, with adjusted earnings expected to rise by 5% to 6%; AT&T's revenue grew by 2.9% but free cash flow fell to $2.5 billion, reflecting investment pressures in its fiber business.
- Dividend Yield Comparison: Verizon offers a 6% dividend yield, significantly higher than the S&P 500's average of 1.1%, while AT&T's yield is 4.3%, with a payout ratio of only 37%, providing a greater safety buffer for investors.
- Stock Performance Divergence: Over the past five years, Verizon's stock has declined by 16%, contributing to its high yield, whereas AT&T's stock has increased by 11%, highlighting a notable difference in market performance between the two.
- Financial Health Assessment: Verizon's Q1 2026 results indicate positive net adds in postpaid phone users, with expected adjusted earnings per share growth of 5% to 6%, while AT&T's revenue rose by 2.9% but free cash flow fell to $2.5 billion, reflecting increased investments in its fiber business.
- Investment Recommendation: While both companies are performing well, Verizon stands out as a more attractive investment option due to its higher dividend yield and consistent dividend growth, particularly in the current market environment.











