Market Monitor News May 16 ( Foot Locker, Boot Barn UP - United Health, Dick's Sporting Goods DOWN)

Wall Street Ends Mixed Amid Economic Caution and Earnings Volatility

U.S. markets closed with mixed results on Thursday as investors absorbed a wave of earnings reports and economic indicators suggesting a cooling economy.

The Dow Jones rose 0.7%, the S&P 500 added 0.4%, while the Nasdaq slipped 0.2%. Beneath the surface, corporate news and geopolitical developments caused sharp moves in individual stocks.

Soft Inflation Data Boosts Hopes for Rate Cuts

Economic reports showed signs of softening inflation.

The Producer Price Index (PPI) rose 2.4% year-over-year in April, slightly below the 2.5% expected. Core producer prices unexpectedly declined 0.1% month-over-month, suggesting companies may be absorbing higher input costs rather than passing them on to consumers.

Retail sales in April increased just 0.1%, a steep drop from March's 1.7%, when consumers rushed to buy ahead of expected price hikes due to U.S. tariffs.

These softer numbers pushed long-term bond yields lower, as traders priced in a greater chance of Federal Reserve rate cuts later this year. Fed Chair Jerome Powell remained cautious, warning of possible recurring supply chain shocks and reaffirming the Fed's focus on inflation control.

Walmart Warns on Prices, Deere Surges, UnitedHealth Hit Hard

Corporate earnings added to the market's mixed tone.

Walmart (WMT | -0.50%) exceeded expectations with a $0.61 EPS and 4.5% revenue growth, but its shares dipped after the company declined to issue Q2 guidance, citing tariff-related uncertainties.

CFO John David Rainey warned of higher prices arriving in May, further clouding the consumer outlook.

John Deere (DE | +3.78%) climbed to a record $516.32 as quarterly earnings beat forecasts despite an 18% drop in revenue to $11.17 billion. Earnings per share came in at $6.64, well above the $5.58 estimate.

Analysts called the results encouraging, supporting the view that 2025 may mark a bottom for Deere’s agricultural business.

In stark contrast, UnitedHealth (UNH | -10.93%) plunged after news broke of a federal investigation into alleged fraud in its Medicare Advantage operations. Combined with the sudden resignation of CEO Andrew Witty, the stock has lost nearly 30% in just one week.

Coinbase (COIN | -7.20%), set to join the S&P 500 next week, fell after disclosing a significant data breach. Hackers demanded $20 million in ransom for customer data. Coinbase refused to pay and estimated the potential cost at $180–400 million, pledging to reimburse affected customers.

Other notable movers included Foot Locker (FL | +85.70%), which soared on news of a $2.4 billion acquisition by Dick’s Sporting Goods (DKS | -14.58%), and Boot Barn (BOOT | +16.66%), which reported strong sales growth.

Cisco Systems (CSCO | +4.85%) rose after raising its revenue outlook, with quarterly revenue up 11% to $14.15 billion.

Oil Falls on Hopes of Iran Nuclear Deal

Oil prices dropped sharply as President Donald Trump suggested from Doha that talks with Iran may soon result in a new nuclear agreement. WTI crude fell 2.4% to $61.62, while Brent crude slipped to $64.57.

A deal could lift sanctions and increase global oil supply, pressuring prices further. The International Energy Agency responded by raising its 2025–2026 oil demand forecasts, citing more stable growth and improved sentiment following recent trade developments.

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