Major Averages Decline as Employment Data Surprises

The major averages were broadly lower near noon as investors digest stronger-than-expected employment data and wait for Friday's official nonfarm payrolls report. According to ADP, private-sector employers added 122,000 jobs in May, above the consensus forecast of 118,000 and up from the prior month's reading.Enthusiasm surrounding data-center spending, cloud infrastructure, semiconductors, and power-demand beneficiaries continues to support the broader indexes. However, investors have become increasingly selective, rewarding companies that can demonstrate tangible AI-related revenue growth while showing less patience for firms that are merely associated with the theme. Meanwhile, oil prices are higher once again amid continued tensions in the Middle East.Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.1. STOCK NEWS:Elon Musk's SpaceXis targeting a $75B IPO with a $135 per share price,Alphabetisto $84.75B and reported that its Gemini app has 900M monthly users as of MayPalo Alto Networksprovided areport for Q3GameStopreported a year-over-year increase in earnings and revenue andMacy'sprovided areport for Q12. WALL STREET CALLS:Yum! Brandsto Overweight at Morgan StanleyConcurrently, Morgan StanleyChipotleto Equal WeightOppenheimerAT&Tto Perform, sees broadband subscribers at riskBernsteinCampbell's, Conagra Brands, General Mills, and Kraft Heinzto UnderperformRaymond Jamesof FedEx Freightwith an Outperform rating3. AROUND THE WEB:Metalost its appeal against the EU's designation of Messenger as a "gatekeeper" under the Digital Markets Act, meaning it will remain subject to stricter regulatory obligations, Reuters saysStripe, Visa, and MasterCardare nearing the launch of a stablecoin platform, with Coinbasealso exploring participation, CoinDesk reportsNestleis buying out the founders of yfood Labs for an undisclosed sum, Bloomberg saysThe antitrust division of the New York Attorney General's office is investigating Compass'footprint in the New York market, The Real Deal reportsDeutsche Bankmay set aside more for loan losses, Bloomberg says4. MOVERS:Navitasgains after reporting its 800 V-to-6 V DC-DCis being shown at Nvidia'sshowcaseMaxLinearincreases afterwith Los Alamos National LaboratoryCognytefalls in New York afterand providing guidance for FY27Mineralyslower after announcing it willdue to Tanabe Pharma Corporation related to lorundrostatIntuitive Machinesdeclines afterof common stock5. EARNINGS/GUIDANCE:Thor Industriesand cut its guidance for FY26Medtronic, with EPS in-line with consensusOllie's Bargain Outlet, with CEO Eric van der Valk "very pleased" with the first quarter resultsSprinklrand provided its outlook for Q2 and FY27Scotts Miracle-Grofor FY26INDEXES:Near midday, the Dow was down 0.88%, or 451.06, to 50,856.73, the Nasdaq was down 0.77%, or 209.30, to 26,884.60, and the S&P 500 was down 0.55%, or 42.14, to 7,567.64.