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Key Earnings Announcements:
Baidu, Home Depot, Nvidia, and Zoom highlight this week.
Monday (5/18): Agilysys, Baidu, Brady, Compugen, FatPipe, Gossamer Bio, ReNew Energy
Tuesday (5/19): Amer Sports, CAVA, Carlyle, Home Depot, Keysight, MakeMyTrip, Toll Brothers, Vertiv
Wednesday (5/20): Analog Devices, ELF Beauty, Intuit, Lowe’s, Nvidia, Target, TJX Companies, Urban Outfitters
Thursday (5/21): Advance Auto Parts, Deckers, Deere, Ross Stores, Snowflake, Walmart, Workday, Zoom
Friday (5/22): BJ’s Wholesale, Booz Allen Hamilton, Global Ship Lease
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What We’re Watching:
Target (TGT)
Target (+24.3% YTD) reports Q1 FY2026 earnings Wednesday before the open, with investors focused on whether the retailer’s turnaround plan is beginning to show up in traffic, comparable sales, and margins. Target has been working to regain momentum after several difficult quarters marked by softer discretionary spending, inventory pressure, and weaker store traffic.
Analysts expect roughly $24.6 billion in revenue (+3% YoY) and $1.41 in EPS, with comparable sales projected to rise around 2% – which would mark the first sales gain in five quarters. The stock has already rallied nearly 25% YTD, helped by optimism around new CEO Michael Fiddelke’s plan to refresh store layouts, improve assortment, invest in staff, and upgrade technology.
Heading into the print, I’ll be watching whether Target can show real progress in discretionary categories like apparel, home, and electronics, while maintaining strength in essentials. Margin commentary will also be key, especially around promotions, shrink, inventory discipline, and whether the turnaround strategy can support stronger profitability into the second half of the year.
“Our team is focused on getting back to profitable growth by improving the guest experience, sharpening our assortment, and executing with more consistency.”
Target Corporation (TGT) Stock Performance, 5-year chart, Seeking Alpha
Nvidia (NVDA)
Nvidia (+20.8% YTD) reports Q1 FY2027 earnings Wednesday after the close, in what will be one of the most important prints of the week for both the AI trade and the broader market. Investors will be watching whether demand for Nvidia’s GPUs, networking chips, and full-stack AI infrastructure remains strong enough to support elevated expectations after the stock’s massive multi-year run.
Analysts are looking for roughly $79 billion in revenue and $1.78 in EPS, driven by continued strength in data center demand, hyperscaler capex, and AI infrastructure spending. The key question is whether Blackwell momentum, networking growth, and early Rubin commentary can extend confidence in Nvidia’s multi-year growth runway.
Heading into the release, I’ll be watching data center revenue growth, gross margin durability, Blackwell/Rubin demand signals, and commentary around hyperscaler ordering patterns. Nvidia’s guidance will likely matter more than the headline beat, as investors look for confirmation that AI spending remains durable rather than peaking.
“The next industrial revolution has begun – companies and countries are partnering with Nvidia to shift the trillion-dollar installed base of data centers to accelerated computing.”
Nvidia Corp (NVDA) Stock Performance, 5-Year Chart, Seeking Alpha
Investor Events / Global Affairs:
Middle East tensions continue to escalate, and Meta’s layoffs may be setting a trend.
Middle East Tensions Escalate Again as U.S .– Iran Talks Stall
The U.S. and Iran remain far apart on a potential agreement to end the conflict and fully reopen the Strait of Hormuz, keeping energy markets and global investors on edge heading into the week.
The fragile ceasefire was further tested after a drone strike sparked a fire near the Barakah nuclear facility in the United Arab Emirates, highlighting the growing regional risk despite ongoing diplomatic efforts. While UAE officials said there was no impact on nuclear safety, the incident underscores how quickly tensions could escalate again.
Meanwhile, Donald Trump signaled frustration with negotiations, warning Iran that “the clock is ticking,” while reports suggest major disagreements remain over sanctions, uranium transfers, and shipping access. Brent crude climbed back above $110 per barrel after already surging nearly 50% since the start of the war, as disruptions to Gulf shipping continue pressuring global energy supply chains.
Markets will be watching closely for:
Any progress in U.S.–Iran negotiations
Further attacks on regional energy infrastructure
Developments around tanker access through Hormuz
Potential spillover into inflation expectations and central bank policy
“We should at least agree on the first phase, you know, stop the attacks and open the Strait of Hormuz. We can go from there to negotiate actually the hard topics, but it is very difficult, and eventually US has to agree with Iran.”
Meta’s Latest Layoffs Highlight AI’s Growing Impact on White-Collar Jobs
Source: Carlos Barria | Reuters
Meta is beginning another major round of layoffs this week, cutting roughly 8,000 employees while simultaneously ramping up AI spending to as much as $145 billion in capital expenditures for 2026. The company is also reportedly planning additional rounds of cuts later this year as executives continue restructuring the workforce around AI-driven productivity gains.
The tone inside Meta has shifted dramatically compared to the post-Covid layoffs of 2022 and 2023. Back then, Mark Zuckerberg framed cuts as a correction for overhiring. Today, the message is much more direct: AI is allowing companies to operate with fewer people while demanding significantly more spending on compute, chips, and infrastructure.
The broader tech industry is moving in the same direction. Nearly 110,000 tech layoffs have already been announced in 2026 as companies like Meta, Microsoft, Amazon, Cisco, and Coinbase aggressively reallocate resources toward AI development and automation.
At the same time, employee anxiety across Silicon Valley is clearly rising. Internal concerns at Meta reportedly include fears around surveillance tools, workplace monitoring, and uncertainty about which roles AI may eventually replace — reinforcing that the AI boom is increasingly becoming both an infrastructure story and a labor disruption story.
Meta Platforms (META) Stock Performance, 5-Year Chart, Seeking Alpha
“We recently shared internally that we plan to reduce the size of our employee base in May… We believe a leaner operating model will allow us to move more quickly while also helping to offset the substantial investments we are making.”
Major Economic Events:
Initial jobless claims and pending home sales take center stage.
Monday (5/18): Atlanta Fed First Vice President Cheryl Venable remarks
Tuesday (5/19): Pending home sales, Philadelphia Fed President Anna Paulson speaks, Atlanta Fed First Vice President Cheryl Venable remarks
Wednesday (5/20): Minutes from the Fed’s May FOMC meeting
Thursday (5/21): Initial jobless claims, Housing starts, Building permits, Philadelphia Fed manufacturing survey, S&P flash U.S. services PMI, S&P flash U.S. manufacturing PMI
Friday (5/22): Consumer sentiment (final), U.S. leading economic indicators
What We’re Watching:
Initial Jobless Claims
Initial jobless claims rose by 12,000 to 211,000 in the first week of May, slightly above expectations of 205,000. Continuing claims also edged higher by 24,000 to 1.78 million, coming in just below forecasts.
Despite the weekly increase, claims remain well below last year’s average, reinforcing the view that layoffs are still limited and the labor market remains relatively stable. Federal employee claims, which have been closely watched following shutdown-related filing delays, fell by 46 to 392.
Economists expect the following this week:
Initial Jobless Claims: 211K vs. 199K prior
Continuing Claims: 1.78M vs. 1.76M prior
“Weekly filings for unemployment benefits are considered a proxy for U.S. layoffs and are close to a real-time indicator of the health of the job market. Despite relatively few layoffs, the labor market appears to be stuck in what economists call a “low-hire, low-fire” state. That has kept the unemployment rate low at 4.3%, but left many of those out of work struggling to find new employment.”
Pending Home Sales
U.S. pending home sales rose 1.5% MoM in March, building on February’s upwardly revised 2.5% gain and easily beating expectations for just a 0.1% increase. The report suggests housing demand remains resilient despite elevated mortgage rates, with buyers still active where inventory and affordability allow.
Regional performance was mixed. The Northeast (+4.4%) and South (+3.8%) drove the headline gain, while pending sales declined in the West (-2.6%) and Midwest (-1.3%). The divergence highlights how affordability, supply, and local market conditions continue to shape housing activity.
The data points to pent-up demand in the housing market, but the path to stronger existing-home sales still depends on inventory growth and more affordable supply.
Economists expect the following this week:
Pending Home Sales (MoM): +1.5% vs. +2.5% prior
Pending Home Sales Forecast: +1.5% vs. +0.1% expected
"Many homes on the market are lingering due to lack of buyer interest… This speaks to the deep affordability issues for potential buyers which have been exacerbated by the recent spike in mortgage rates. Until mortgage rates ease, most first-time buyers will continue to view home ownership as cost prohibitive compared to renting."
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