Morning Note - 05/18/26: Stocks Start Week Lower.

Overnight Summary and Early Morning Trading:

• The S&P 500 finished Friday lower by -1.24% at 7408.50 from Thursday higher by 0.77% at 7501.24.

• The S&P 500 sees support now at 7400 from 7500. Resistance is now at 7500 from 7400. In the last two months, support has moved from 6300 to 7400.

• S&P 500 hit its 17th All-Time Closing High of 2026 on Thursday.

• Futures are lower this morning by -33.50 lower by -0.45% at 7397.50 on the SP 500 at 6:15 a.m. EDT.

• Bond Market is lower today on price with the 10-Year Yield at 4.601% from 4.54%.

Executive Summary:

• Stocks had a seventh up week, with the S&P 500 gaining 16.30% in the last seven weeks. We are now up 6.17% since the peak in January on the S&P 500 as of last Friday’s close.

• U.S. moves into Week 13 of its attack on Iran. Key to this week is to see if an end to the war can be negotiated.

Key Geopolitical Events of Note:

• Economic news of note.

  • Weekly - None of note.

  • Monthly - NAHB Housing Market Index of note.

• Fed Speakers of Note today: Venable 8:30 a.m. EDT.

• President Trump’s schedule:

  • Participates in Executive Time at 8:00 a.m. EDT.

  • Participates in Healthcare Affordability Event at 4:30 p.m. EDT.

Notable Earnings Out After The Close:

• Beats: None of note.

• Misses: SHAZ -0.55 of note.

• Flat: None of note.

Capital Raises:

• IPOs For The Week: AVLN BWGC PS RIKU SBMT of note.

• New IPOs/SPACs launched/News: IPOs Ahead This Week: Cerebras Systems said to target up to $4 billion raised in IPO.

• IPOs Filed/Priced: None of note.

• Secondaries Filed Or Priced:

  • CSHR files for 10,999,993 ordinary share offering, relates to warrants.

  • AENT files for 9,970,090 share common stock offering, relates to warrants.

  • CNP relates to equity distribution agreement for up to $1 billion common stock offering.

  • IDA files prospectus supplement, relates to equity distribution agreement for up to $600 million common stock offering.

  • INSM: FormS-3ASR Common Sotck and Debt Offering.

  • LOCL: FormS-3..Up to 8,105,102 Shares of Common Stock.

  • PDFS - Full Exercise of Greenshoe Option and Closing of Upsized Public Offering of Common Stock.

  • RENX: Form S-3.. 13,022,458 Shares of Common Stock.

  • SEI - Proposed Offering of Common Shares.

  • SNYR: Form S-1..101,710,000 Shares of Common Stock.

  • VRM: FORM S-3 - $6,000,000 Common Stock.

• Notes Filed Or Priced: None of note.

• Convertible Offerings Filed or Priced: None of note.

• Private Placement: None of note.

• Direct Offering: None of note.

• Exchangeable Subordinate Voting Shares: None of note.

• Private Placements: None of note.

• Selling Shareholders:

  • CSHR files for 105,610,080 ordinary share offering by selling shareholders.

  • ONDS files prospectus supplement, relates to offering of 3,342,378 shares by the selling stockholders.

• Mixed Shelf Offerings:

  • RGA files mixed securities shelf offering.

  • SRE files mixed securities shelf offering.

  • CBUS files for $200 million mixed securities shelf offering.

  • BBGI: Form S-3.. $100,000,000 Mixed Shelf.

  • GREE: FormS-3..$200,000,000 Mixed Shelf.

  • HBM: Form F-10 Mixed Shelf.

  • VHC: FormS-3..$20,000,000 Mixed Shelf.

After The Close:

• Lots of 13-Fs are out updating Hedge Fund Managers latest positions.

• Department of Justice probing BlackRock (BLK) private credit fund’s valuations. (Bloomberg)

• NOC awarded a $325.5 million US Army contract for development of the RangeHawk universal payload architecture prototype.

• NOC awarded a $398 million US Air Force contract for a satellite communication space vehicle.

• GD awarded a $229.7 million US Army contract for procurement of 50 Stryker Double V-Hull A1 vehicles.

• Delay in 10-Q Filings: RR FJET AREC ORMP VWAV

Last Week’s Winners:

• Healthcare: MGNX (4.24 +41.17%), DERM (6.29 +24.06%), STAA (32.12 +20.34%)

• Materials: BAK (4.89 +32.38%)

• Consumer Discretionary: BZH (22.17 +18.11%), ARMK (53.18 +17.97%)

• Information Technology: SEDG (61.68 +49.35%), TSEM (274.31 +29.99%), AAOI (189.29 +27.09%), DDD (3.03 +22.47%), CSCO (118.19 +22.39%), PANW (242.74 +16.77%), FN (724.63 +16.64%)

Last Week’s Losers:

• Healthcare: RGNX (5.72 -45.78%), SLP (13.27 -20.44%),

• Consumer Discretionary: EYE (17.44 -24.04%), JACK (10.8 -21.72%), UAA (5.15 -19.98%)

• Financials: PRAA (15.22 -20.65%)

• Consumer Staples: EPC (16.01 -24.66%), BGS (4.20 -21.59%)

Executive, Corporate Changes: None of note.

Dividend Announcements:

• Top Names Ex-Dividend Monday: KLAC SO UPS PSX UI ROK BAP ES CTSH CG JBS CSL DOC GEN CNA JEF MUSA WYNN ALSN R TECH KGS IEP OGS BC of note.

• Top Names Ex-Dividend Tuesday: None of note.

• CATY declares a quarterly cash dividend of $0.38 per share for annualized dividend of $1.52 per share, up from prior annualized dividend of $1.40 per share.

Buybacks:

• MNST authorizes new $500 million share repurchase program.

What’s Happening This Morning: (as of 7:45 a.m. EDT)

• Futures S&P 500 -31, NASDAQ 100 -114, Dow Jones -333 . Europe is mixed while Asia is lower ex China. Bond yield is at 4.603% from 4.536% on the 10-Year. Crude Oil and Brent Crude are higher with Natural Gas higher. Gold, Silver and Copper are lower. The U.S. Dollar is lower versus the Euro, lower against the Pound and higher against the Yen. Bitcoin is at $76,696 lower by -2.05% down $1597 from $80,608 lower by -1.04% down $852.

Sector Action:

• Daily Positive Sectors: Energy was higher.

• Daily Negative Sectors: Materials, Utilities, Industrials and Consumer Cyclical led the way lower.

• One Month Winners: Technology, Communication Services, Consumer Defensive, Healthcare and Real Estate of note.

• Three-Month Winners: Energy, Materials, Utilities, Consumer Defensive and Industrials of note.

• Six-Month Winners: Energy, Materials, Utilities, Industrials, Healthcare and Consumer Defensive of note.

• Twelve-Month Winners: Materials, Energy, Industrials, Utilities, Communication Services and Technology of note.

• Year to Date Winners: Energy, Materials, Consumer Defensive, Utilities and Industrials of note.

Bolded means the Sector is new to the period in which it falls.

Upcoming Earnings Of Note: (Erlanger Chartroom Software – sorted by market cap, highest to lowest with most visible names)

• Today After the Close: None of note.

• Tuesday Before The Open:

Notable Earnings of Note This Morning:

• Beat : BIDU +0.52, RAMP +0.03 of note.

• Missed : None of note.

• Flat: None of note.

• Still to Report: BRC of note.

Company Earnings Guidance:

• Positive Guidance: After The Close & This Morning -None of note.

• Mixed - None of none.

• Negative or Mixed Guidance: After The Close & This Morning - None of note.

Advance/Decline Daily Update:

Gap Ups & Down In Early Pre-Market: (+2% or down more than -2%):

• Gap Up: RAMP +26.7%, CMPS +20.6%, SHAZ +13.1%, D +11.9%, DXYZ +11.4%, DSGN +11.3%, MAKO +9.1%, MTUS +9.1%, ANL +9.0%, ACVA +7.3%, EDN +7.2%, SATS +5.5%, M +5.3%, KRUS +4.9%, EMA +4.6%, BIDU +3.9%, TALO +3.7%, FR +3.6%, DOLE +3.5%, ARLP +3.2%, SD +2.9%, NHI +2.7%, SKE +2.6%, FLR +2.6%, TME +2.5%, SPB +2.5%, DAL +2.3%, AAMI +2.3%, SLM +2.3%, VSEC +2.2%, HPP +2.1% of note.

• Gap Down: REGN -10.9%, LI -9.4%, IEP -5.0%, UNH -5.0%, BILL -4.9%, SWX -4.8%, ENLT -4.6%, ENPH -4.3%, KWR -4.3%, HESM -4.0%, SGI -3.9%, AAUC -3.9%, ASST -3.8%, BRUN -3.8%, GTY -3.4%, MICC -3.4%, SEDG -3.3%, XHR -3.1%, BKU -2.7%, ITT -2.3%, HUT -2.3%, CRM -2.0%,of note.

• of note.

Insider Action: KBR NMM sees Insider Buying with dumb short selling. BROS see Insider Buying with smart short sellers. Above $100,000 in purchases with high shorts but no history: MERC of note.

Other Trading Action: None of note.

Rags & Mags: Repeated stories from prior days never listed, i.e. “rehashed news”. Sorted by Global, U.S. and stock specific.

• WSJ Lead Story: Apple is Making Hit Products and High Profits From Imperfect Chips. (WSJ)

• NY Times Lead Story: Iran War is Crippling Qatar. (NYT)

• USA Today: Car ownership is now a luxury. (USA Today)

• Bloomberg: US Tells Iran Clock is Ticking After UAE Nuclear Facility Targeted. (Bloomberg)

• Market Wrap: Stocks fall as Brent hits $110. (Bloomberg)

• Thoughtful Money: Markets at Risk as Bond Yields Expplode Higher. (Podcast)

Economic & Geopolitical:

• Federal Reserve Speakers of note today: Federal Reserve Atlanta President Venable speaks at 8:30 a.m. EDT.

• President Trump’s schedule for today:

  • Participates in Executive Time at 8:00 a.m. EDT.

  • Participates in Healthcare Affordability Event at 4:30 p.m. EDT.

• Economic Data Out -

  • Weekly -

    • NAHB Housing Index is due out at 10:00 a.m. EDT and are expected to remain at 34.

M&A Activity & Daily: None of note.

Moving Average Table: 93% from 90% of Equities are Positive, and 0% from 4% Bonds are Positive.

Meeting & Conferences of Note:

• Sellside Conferences:

  • B. Riley Oncology Best Ideas Summit

  • Citi Pan Asia Conference

  • Evercore Biotech Summit

  • JPM Global Technology, Media and Communications Conference

  • UBS Private Biotech Summit

  • Wolfe Global Transportation & Industrials Conference

  • Wolfe May Consumer Growth Conference

• Top Analyst, Investor: ECL ESI KFS of note.

• Shareholder Meetings: ED MSI NMAX VIA of note.

• Fireside Chat: None of note.

• FDA Presentation: None of note.

• R&D Day: None of note.

• Meetings:

  • LD Micro Conference

  • National Restaurant Association Show

Upgrades & Downgrades:

The recommendations listed below in this “Upgrade/Downgrade” section are compiled from what we believe are Tier I, II and III firms. Recommendations posted are taken from a variety of sources each day and we only post upgrades or significant initiations as well as downgrades to underweight or sell. The purpose of this posting is to make the reader aware of market-moving recommendations.

Upgrades: CRCL VFC ZS of note.
Downgrades: AARD of note.