Welcome to the MarketReader Minute.

Below are AI-generated insights on today’s premarket moves, powered by MarketReader technology.

Thursday, May 28

Noteworthy macro moves today: Hang Seng 50 Index (China) -1.2%. Noteworthy US mega-cap moves today: Broadcom Inc (AVGO) -1.8%. Tesla Inc (TSLA) -1.7%. Eli Lilly and Co (LLY) +1.3%.

Global equity markets are trading lower following renewed tensions in the Middle East that have driven oil prices higher and revived inflation concerns. The U.S. conducted military strikes in Iran, prompting retaliatory actions from Tehran and raising fears of further disruptions to oil supply routes.

In the U.S., initial jobless claims rose to 215,000 for the week ending May 23, exceeding expectations of a smaller increase to about 211,000. This uptick indicates potential stress within labor markets despite ongoing perceptions of overall robustness; however, it suggests some weakening compared to prior weeks where declines were noted.

Also released this morning was the core PCE price index for April, which rose by only 0.2%, falling short of market expectations for a gain of 0.3%. This underperformance has prompted market reassessment regarding future Federal Reserve monetary policy actions amid persistent inflationary pressures and mixed economic signals from other indicators such as GDP growth being revised down to an annualized rate of just 1.6%.

iShares China Large-Cap ETF (FXI) [-1.6%]
Pre-market trading for iShares China Large-Cap ETF has shown a notable decline, reflecting broader market trends as global equity markets move lower. Significant negative contributions from major holdings include TCEHY, JD, TCOM, and LI, which collectively detracted from the ETF's performance. TCEHY fell by 1.72%, JD by 2.18%, TCOM by 2.38%, and LI by 4.56%. Additionally, persistent inflation concerns have led to heightened investor anxiety about economic stability, particularly following a rise in initial jobless claims to 215,000, exceeding expectations. As a result, FXI is trading lower since Wednesday's close, remaining significantly below its 20-day moving average and near the lower end of its one-month trading range.

abrdn Physical Palladium Shares ETF (PALL) [-2.6%]
The spot price of palladium has declined nearly 3% to $1,351.52 per ounce, contributing to the negative movement in the abrdn Physical Palladium Shares ETF. The ETF is trading lower in pre-market hours, following a notably weak overnight performance that saw it reach a session low of -3.85% earlier this morning. This decline occurs amid broader market pressures, as global equity markets are also trading lower due to concerns over persistent inflation and rising interest rates, which have heightened investor anxiety regarding economic stability.

SNOW | +36.2% | +28.9B
Snowflake Inc. | Internet Services & Infrastructure
Snowflake Inc. experienced notable upward momentum following its first-quarter fiscal 2027 results, which surpassed analyst expectations with revenue of $1.39 billion, reflecting a 33% year-over-year increase. The company reported adjusted earnings per share of $0.39, exceeding estimates of $0.32. Additionally, Snowflake announced a strategic collaboration with Amazon Web Services, committing $6 billion over five years to enhance enterprise AI adoption, which is expected to deepen integrations between their services. The firm also raised its full-year product revenue guidance to $5.84 billion, indicating a 31% increase from the previous year. Despite a recent pullback in early trading, shares are advancing overall in pre-market hours, bolstered by these developments and positive investor sentiment regarding Snowflake's growth trajectory in the AI-driven market.

DLTR | +18.5% | +4.6B
Dollar Tree Inc | Consumer Staples Merchandise Retail
Dollar Tree Inc experienced a notable increase in its stock price following the release of its first-quarter earnings, which exceeded analyst expectations. The company reported an adjusted EPS of $1.74, surpassing the anticipated $1.55, and revenue of $4.975 billion, also above estimates. Additionally, Dollar Tree raised its fiscal 2026 adjusted EPS guidance to a range of $6.70 to $7.10 from a prior estimate of $6.50 to $6.90. The retailer announced plans for 400 new store openings and 75 closures in FY26, along with a positive outlook for the second quarter, expecting adjusted EPS between $1.00 and $1.15. The announcement of a partnership with DoorDash for on-demand delivery further fueled investor enthusiasm. As a result, Dollar Tree shares are sharply higher during pre-market hours.

A | +10.7% | +4.0B
Agilent Technologies Inc | Life Sciences Tools & Services
Agilent Technologies Inc experienced a significant increase in its stock price following the release of its Q2 earnings, which exceeded analyst expectations. The company reported an adjusted EPS of $1.49, surpassing the anticipated $1.41, and revenues of $1.835 billion against an expected $1.799 billion. Additionally, Agilent raised its full-year EPS guidance to a range of $6.00 to $6.10, above the consensus estimate of $5.98. Analysts from Stifel maintained a Buy rating with a price target of $170, while Barclays raised its target to $145, reflecting positive market sentiment. In pre-market trading, shares are sharply higher since Wednesday's close, indicating strong investor confidence in the company's performance and outlook.

HEI | +8.2% | +3.8B
HEICO Corp | Aerospace & Defense
HEICO Corp's stock surged in pre-market trading following the release of its second-quarter earnings, which reported record net income of $233.8 million, or $1.66 per diluted share, significantly surpassing the consensus estimate of $1.34. Revenue reached $1.38 billion, exceeding expectations of $1.25 billion and marking a 25% year-over-year increase. The company also reported operating income of $350.4 million and an improved operating margin of 25.5%, up from 22.6% in the previous year. This strong performance was driven by 18% organic sales growth and contributions from recent acquisitions, along with a notable 43% increase in cash flow from operations to $292 million. Management expressed optimism about maintaining strong cash flow for the remainder of fiscal 2026.

BBY | +9.7% | +1.5B
Best Buy Co Inc | Computer & Electronics Retail
Best Buy Co., Inc. reported first-quarter results that exceeded expectations, driving a sharp increase in its stock price during pre-market hours. The company announced a 2% growth in comparable sales and a 38% rise in diluted earnings per share to $1.31, alongside adjusted EPS of $1.28, surpassing the consensus estimate of $1.23. Revenue reached $8.936 billion, exceeding projections of $8.828 billion. Management reiterated its fiscal year 2027 guidance for adjusted EPS between $6.30 and $6.60, maintaining a positive outlook amid strong sales performance across key product categories. This combination of better-than-expected financial results and affirmed guidance has positively influenced investor sentiment, contributing to the stock's notable rise since Wednesday's close.

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