Stock futures moved in a mixed pattern as investors weighed a slate of earnings results against a high-profile report on AI spending. Oracle shares fell more than 5% after The Wall Street Journal cited people familiar with the matter that OpenAI recently missed targets for new users and revenue, intensifying concerns about the pace of AI investments. The development contributed to weakness in tech names, with Nvidia and Advanced Micro Devices sliding more than 1% and 3%, respectively.
Industrial and consumer names showed more mixed results. General Motors rose more than 5% after lifting its 2026 guidance and topping first-quarter expectations, with adjusted earnings of $3.70 per share, well above the $2.62 consensus from LSEG. Coca-Cola advanced about 2% after reporting quarterly results that topped expectations, with adjusted earnings of 86 cents per share on revenue of $12.47 billion, surpassing the anticipated 81 cents on $12.24 billion. United Parcel Service declined modestly despite beating top and bottom lines, posting adjusted earnings of $1.07 per share on revenue of $21.2 billion versus expectations of $1.02 and $20.99 billion, respectively.
In the consumer tech space, Spotify Technology’s stock slumped after guiding weaker operating income for the current quarter, even as first-quarter revenue came in line with forecasts. JetBlue Airways slipped about 1% after reporting a larger-than-expected first-quarter loss of 87 cents per share, excluding items, with revenue in line at $2.24 billion. Dow component Sherwin-Williams rose roughly 3% after posting first-quarter earnings of $2.35 per share on revenue of $5.67 billion, beating consensus expectations of $2.26 on $5.56 billion.
On the travel and hospitality front, Hilton Worldwide Holdings edged lower after revenue miss on $2.94 billion versus a $2.96 billion estimate, though earnings per share excluding items of $2.01 topped forecasts of $1.97.
In other earnings news, Bed Bath & Beyond surged about 25% after reporting first-quarter revenue of $247.8 million, above the $240.1 million anticipated by FactSet. The retailer posted an adjusted loss of 25 cents per share, narrower than the 28-cent loss expected by analysts.
Rambus shares tumbled about 18% after the company reported a first-quarter operating margin of 42% on an adjusted basis, below the year-ago period’s 46%. Adjusted earnings came in at 63 cents per share, ahead of the 59-cent consensus. LendingClub rose nearly 10% as results exceeded expectations, with a net interest margin of 6.28% in the quarter versus the 6.06% call, and earnings of 44 cents on revenue of $252.3 million, beating estimates of 36 cents and $249 million, respectively.
Sanmina surged more than 6% after the electronics manufacturing solutions provider issued a third-quarter adjusted earnings outlook of $2.55 to $2.85 per share, above the FactSet consensus of $2.53. The company’s board authorized a buyback program of up to $600 million. Cadence Design Systems slipped about 1% after lowering its full-year adjusted earnings guidance to a range of $7.85 to $7.95 per share, versus prior guidance of $8.05 to $8.15. Still, first-quarter adjusted earnings of $1.96 per share on revenue of $1.47 billion topped the LSEG expectations of $1.90 and $1.45 billion.
Nucor finished the session higher by about 1% after posting first-quarter earnings of $3.23 per share, above the $2.82 consensus from LSEG, with revenue of $9.50 billion also surpassing the expected $8.88 billion.
Key takeaways
- Price moves: Oracle down more than 5%; GM up more than 5%; Coca-Cola up about 2%; UPS down modestly; Spotify down about 12%; Bed Bath & Beyond up roughly 25%; Rambus down about 18%; LendingClub up near 10%; Sanmina up >6%; Cadence down ~1%; Nucor up ~1%.
- Catalysts: The Wall Street Journal report on OpenAI’s user and revenue targets weighing on Oracle’s AI spending narrative; diverse quarterly results shaping sector sentiment (tech, industrials, consumer staples, and travel).
- Implications: Early signs that AI investment narratives remain a focal point for risk assets, even as selective earnings beat show strength in certain sectors. Market breadth appears uneven, with outsized moves in a handful of names.
What drove the move
The day’s trading backdrop was dominated by a mix of earnings outcomes and a high-profile report about AI spending dynamics. The Wall Street Journal’s report that OpenAI recently missed its targets for new users and revenue has amplified concerns that the industry may not be able to sustain aggressive AI-related outlays. The piece triggered an immediate wobble in Oracle, a key provider of AI-enabled software, and contributed to downward pressure on other chipmakers, including Nvidia and AMD.
Against that backdrop, corporate results provided a mixed signal. GM’s stronger-than-expected first quarter and raised 2026 guidance underscored resilience in the broader industrial complex and consumer demand in key markets. Coca-Cola’s beat reinforced the resilience of consumer staples in a period of uneven macro momentum. UPS’s results suggested ongoing strength in global logistics, even as markets weighed broader cost and efficiency considerations.
Within the profitability backdrop, several companies highlighted the tension between top-line momentum and earnings quality. Spotify’s weaker operating income guidance contrasted with in-line revenue, underscoring the pressures in digital media profitability. Bed Bath & Beyond’s revenue beat and narrower loss pointed to a potential revival in the home goods space, while Rambus’s margin miss signaled that even technology peers are not immune to margin volatility.
Market reaction
Trading across sectors reflected a bifurcated market. The tech and AI-intensive names remained under pressure in the wake of the OpenAI spending debate, while select industrials and consumer staples names found support after solid earnings and guidance. The broader reaction suggested investors are discerning about earnings quality and the durability of earnings gains in a climate of elevated investment in AI and automation.
Bigger picture
Investors continue to balance the potential long-term growth from AI-enabled platforms with the near-term costs and uncertainties of scaling such capabilities. The breadth of earnings results—ranging from outsized gains to notable margin pressures—highlights the uneven path for companies navigating AI investments, operational efficiency, and consumer demand.
As markets position for the next wave of reports, attention will focus on corporate commentary about AI-related capex, ongoing supply-chain resilience, and the trajectory of consumer spending. The macro backdrop—rates, inflation, and policy signals—will further color how investors interpret both earnings signals and AI spending narratives in the weeks ahead.
What to watch next: upcoming earnings from major peers, updates on AI-related investments and partnerships, and any new guidance that sheds light on the pace and profitability of AI adoption. Market participants will likely pay close attention to how companies articulate the balance between growth investments and earnings discipline as the year progresses.
