IBM Signs Letter of Intent with Commerce Department, Shares Surge
Major indices were higher for the second straight day as investors shrugged off the mixed earnings report from Nvidia, disallowing the market's biggest stock from souring sentiment. Utilities, Basic Materials, and Technology were the best performing sectors on the S&P 500, with the rally in the latter dominated once again by memory names. Major 2026 winners such as SanDisk, Western Digital, and Micronsaw outsized gains, though it was IBMthat stole the spotlight with a double-digit spike after the company announced the Letter of Intent signed jointly with the Department of Commerce to build an American quantum chip foundry. IBM share gains also helped Dow Industrials rejoin S&P 500 and Nasdaq Composite with record high closing levels as the index topped 50,200 for the first time since February. On the downside, Consumer Staples was the worst performing sector in the benchmark as inline earnings and disappointing guidance slammed Walmartby over 7%.In the opening hour of the evening session, S&P E-minis are up 0.2% and the Nasdaq 100 contract is up 0.3%, while WTI Crude Oil remains below $98, amid renewed hopes that U.S.-Iran negotiations will yield an outcome acceptable to both sides. Volumes will likely be compressed on Friday as investors head into an extended Memorial Day holiday weekend.Check out this evening's top movers from around Wall Street, compiled by The Fly.HIGHER AFTER EARNINGS -Workdayup 11.2%Zoom Communicationsup 7.7%Take-Twoup 6.4%Lionsgate Studios Corp.up 5.6%Ross Storesup 5.4%Flowers Foodsup 1.8%Webull Corporationup 1.5%ALSO HIGHER -Peloton Interactiveup 6.4% after S&P SmallCap 600 index inclusionUniversal Technical Instituteup 5.2% after S&P SmallCap 600 index inclusionDOWN AFTER EARNINGS -Deckers Outdoordown 1.6%ALSO LOWER -Summit Therapeuticsdown 8.5% after being started at Bernstein at Underperform
