Dear Reader,
Right now, the hype around the upcoming SpaceX IPO is absolutely deafening.
Every major financial network is talking about it. And millions of retail investors are eagerly waiting to throw their money at shares the second it goes public.
But by obsessing over the IPO, they are missing the forest for the trees.
Because the most important part of this story isn't the IPO itself … it's what Elon did right before he filed for it.
On Feb. 2, Elon pulled off the largest merger in history by combining SpaceX with his artificial intelligence company, xAI.
Why would he merge a rocket company with an AI company?
Because of a massive endeavor I call "Project Unlimited".
And here's the million-dollar secret Wall Street isn't talking about …
In order to make "Project Unlimited" a reality, Elon has to rely on a tiny, under-the-radar supplier that's currently just 1/60th the size of SpaceX.
If you want to position yourself for the biggest gains from the SpaceX IPO, I believe this tiny company is what you should be looking at.
But you must act before the June 30 window closes and the media finally connects the dots.
Discover how to claim your stake in this under-the-radar supplier before the IPO.
Michael Robinson
What to Expect From Q2 Earnings as Tech Strength Broadens
Submitted by Thomas Hughes. Posted: 6/14/2026.
Key Points
- S&P 500 companies posted nearly 29% earnings growth in Q1 2026, far exceeding consensus forecasts, with Q2 results potentially approaching 40% growth.
- Nine of 11 S&P 500 sectors drove Q1 outperformance, with AI spending guidance from Magnificent Seven companies and AMD expected to shape Q2 market sentiment.
- Healthcare is the lone contracting sector, as expiring Affordable Care Act subsidies reduced procedure volumes and impaired earnings, though longer-term growth is expected to resume.
- Special Report: Elon Musk: This Could Turn $100 into $100,000
The Q1 2026 earnings reporting season has wrapped up, leaving investors wondering what comes next for Q2. With the season set to heat up by mid-July, the signs point to another quarter of strength.
Q1 delivered nearly 29% earnings growth among S&P 500 companies, well above the forecast at the start of the season. The S&P 500 typically beats consensus estimates, but usually by about 300 to 500 basis points rather than 1,500.
FORGET the SpaceX IPO (Ad)
Bloomberg projects the SpaceX IPO could be valued at $1.75 trillion - potentially the biggest IPO ever. But one millionaire trader says the largest gains won't come from buying SpaceX directly.
There's an overlooked position tied to this story that most investors aren't watching. The window to get in closes before June 9th, 2026.
See the SpaceX play no one is talking about before June 9thThe forecast for the start of the Q2 season is approximately 22% EPS growth; the final tally will likely top 30% and may approach 40%, based on the strength shown in Q1.
Q1 Outperformance Reveals a Structural Defect in Market Outlook
What matters now is the magnitude of the outperformance. The index beat expectations by a wide margin, effectively doubling the consensus estimate and revealing a fundamental misunderstanding of current conditions and the impact of AI. Those conditions include headwinds, but they are being offset by Trump’s tax and deregulation agenda. The net result is growth, albeit tepid, underpinned by labor market strength. The May NFP report confirmed the signals seen in the jobless claims data, reflecting an accelerating improvement in hiring and overall labor market conditions compared to last year.
At present, forecasts for Q2, Q3, and Q4 are improving, but they do not yet reflect the strength seen in Q1. That sets the stage for another quarter of outperformance; the question is by how much. Given that quarterly strength was driven by nine of 11 S&P sectors, the odds are high that results will be comparably strong. Within that group, communications, technology, materials, consumer discretionary, and industrials stand out, each having outperformed robustly.
Margin Growth Equals Accelerated Earnings Growth
Margins are a key driver for the market. Average S&P 500 margins improved by 200 basis points year over year in Q1, and that strength is expected to continue. While rising costs, including oil, are weighing on the outlook, efficiency gains, including those tied to AI, are offsetting them. This quarter, higher oil prices will support margin gains, with energy companies forecast to grow earnings by 120% year over year. The odds that this sector will outperform consensus are also high, as estimates have jumped in recent months while oil prices hover near historic highs.
The communications sector is also expected to be strong. However, the strength in Q1 was centered on Alphabet (NASDAQ: GOOGL) and Meta Platforms (NASDAQ: META), and that trend is likely to continue in Q2. The takeaway is that these companies are supported by consumer and communications-like businesses, but at their core they are tech companies and AI-critical hyperscalers.
Earnings From Mag 7 and AMD to Drive Summer Sentiment
While Alphabet and Meta Platforms' results will be catalysts for their respective stocks, guidance and CapEx plans will move the broader market. The trend is toward increasing spending, as seen in Oracle’s (NYSE: ORCL) mid-cycle report, and that is what investors will want to see. Any signs that AI spending is slowing or nearing its peak will likely be reflected in the S&P 500 index price, most likely as a reset to lower levels.
The tech sector has several catalysts ahead, including results from Advanced Micro Devices (NASDAQ: AMD), the Magnificent Seven, and NVIDIA (NASDAQ: NVDA). Advanced Micro Devices is on track to accelerate revenue growth across segments, but its market impact will be seen in guidance and MI450 updates. With MI450 deliveries expected to begin in Q3, AMD’s guidance needs to show strength. The likely outcome is that AMD’s revenue ramps in a similar fashion to NVIDIA’s and other mission-critical AI infrastructure plays. NVIDIA’s results will show another acceleration in systemic AI demand.
Healthcare Stocks Suffering From Legislative Woe
The healthcare sector remains the stand-alone weakness, contracting in Q1 and expected to contract again in Q2. Expiring Affordable Care Act subsidies triggered a wave of insurance cancellations and coverage losses, followed by a drop in procedure volume and health services demand, while costs are rising. The combination has impaired both top- and bottom-line results for companies across the board.
The healthcare sector performed better than expected in Q1, but earnings still contracted despite revenue growth, and guidance was reduced, prompting analysts to lower their Q2 forecasts. Average earnings are expected to contract by a high-single-digit percentage despite modest top-line growth and may underperform expectations.
The caveat is that price weakness may present a buying opportunity in this sector. While near-term headwinds exist, catalysts, including AI, are also in play. Longer term, earnings growth is expected to resume for most stocks as soon as next year, underpinning a healthy outlook for capital returns. S&P 500 Health Care Sector stocks tend to pay dividends, grow distributions annually, and/or buy back shares.
3 Stocks to Watch If the Strait of Hormuz Reopens
Submitted by Chris Markoch. Posted: 6/17/2026.
Key Points
- A reopening of the Strait of Hormuz could ease global oil supply concerns and push crude prices lower.
- Delta Air Lines and FedEx may benefit from lower fuel costs and stronger operating margins.
- Chevron's integrated business model provides exposure to energy markets while helping reduce commodity price volatility.
- Special Report: Elon Musk: This Could Turn $100 into $100,000
Crude oil prices have fallen sharply following the June 14-15 announcement that the United States and Iran had reached a framework agreement to end their conflict. The deal, which takes the form of a Memorandum of Understanding (MOU), is expected to be formally signed on June 19 in Switzerland.
The MOU extends the existing ceasefire for 60 days and sets the stage for broader nuclear negotiations. But for oil markets, the immediate catalyst is clear: the reopening of the Strait of Hormuz.
Why the Strait of Hormuz Matters to Global Markets
FORGET the SpaceX IPO (Ad)
Bloomberg projects the SpaceX IPO could be valued at $1.75 trillion - potentially the biggest IPO ever. But one millionaire trader says the largest gains won't come from buying SpaceX directly.
There's an overlooked position tied to this story that most investors aren't watching. The window to get in closes before June 9th, 2026.
See the SpaceX play no one is talking about before June 9thThe strait has been effectively closed since shortly after the war began on February 28, choking off roughly 20% of the world's oil supply. President Trump has authorized its reopening, but the strait won't officially reopen until after Friday's signing.
At the time of this writing, the formal signing has not yet taken place, and the details of the final agreement are not fully clear. There's also a chance there won't be any signing on Friday. That could quickly reverse the oil trade. In that case, investors may want to buy energy stocks that have performed well over the last three months.
If the deal is signed and oil prices continue to fall, investors may want to look beyond traditional energy producers. Airlines and logistics companies could benefit from lower fuel costs, while integrated oil majors may offer a more balanced way to stay exposed to long-term energy demand.
Lower Fuel Costs Could Lift Delta Back to All-Time Highs
Delta Air Lines (NYSE: DAL) is an obvious winner from lower oil prices. Airline stocks can be tough buys in good economies, and they can be a nightmare when jet fuel costs rise.
To be fair, Delta is better positioned than many airlines to weather higher fuel costs. Specifically, Delta owns the Trainer oil refinery outside Philadelphia. When jet fuel prices spike, the refinery generates offsetting profit. It's an unconventional hedge, but it has proven effective.
Also, higher-income seniors continue to travel, which was reflected in Delta’s Q1 2026 earnings report. The company reported strong demand momentum both in that quarter and in its forward guidance.
Interestingly, DAL is up more than 20% in 2026, including nearly 38% in the three months ending June 15. That means Delta’s stock has continued to move higher even as oil stocks have charged higher.
As of this writing, DAL is trading above its consensus price target of $80.85. However, markets are forward-looking, and Morgan Stanley raised its price target on DAL to $105 from $90 on June 1.
FedEx Has Multiple Catalysts Beyond Falling Oil Prices
FedEx Corp. (NYSE: FDX) isn't an airline, but fuel costs are the company's second-largest operating expense. Lower diesel and jet fuel prices drop directly to the bottom line.
High oil prices hurt FedEx in two ways. They inflate operating costs, and they slow the consumer spending that drives package volume. A peace deal that brings oil prices down addresses both problems at once.
FedEx is also in the middle of a significant internal transformation. Its Network 2.0 initiative is merging its Express and Ground delivery networks. The goal is more than $1 billion in annual cost savings. Lower fuel costs layered on top of that cost-cutting could make for a compelling setup heading into the company's next earnings report.
Skeptics will note that Barclays lowered its price target on FDX to $425 from $450. However, the revised target remains well above the recent share price and the broader analyst consensus, suggesting the firm still sees meaningful upside despite a more cautious outlook.
Chevron Offers a Balanced Energy Market Play
Even oil stocks weren’t exempt from the impact of higher oil prices. That’s the case with Chevron Corp. (NYSE: CVX). The company’s stock is down over 8% in the last three months, primarily due to a weaker-than-expected earnings report in which it cited a headwind from the March spike in oil prices.
That might seem counterintuitive. But Chevron is an integrated energy company. Its upstream business produces oil, while its downstream business refines it. When crude spikes suddenly, refining margins often compress. That's what hit earnings in Q1.
A moderate decline in oil prices could actually improve Chevron's overall profitability. Lower input costs tend to widen refining margins. Meanwhile, the company's upstream production keeps generating revenue at still-elevated price levels.
But CVX is still up approximately 18% in 2026 and is trading about 14% below its consensus price target of $205.70. For investors who want energy exposure with a built-in buffer against price volatility, Chevron's integrated structure makes it a more balanced bet than a pure-play producer.
This email is a sponsored message provided by Weiss Ratings, a third-party advertiser of DividendStocks.com and MarketBeat.
11780 US Highway 1,
Palm Beach Gardens, FL 33408-3080
Would you like to edit your e-mail notification preferences or unsubscribe from our mailing list?
Copyright © 2026 Weiss Ratings. All rights reserved.
If you need assistance with your subscription, please feel free to email MarketBeat's South Dakota based support team at contact@marketbeat.com.
If you no longer wish to receive email from DividendStocks.com, you can unsubscribe.
© 2006-2026 MarketBeat Media, LLC.
345 N Reid Place, Suite 620, Sioux Falls, South Dakota 57103. United States of America..
No comments:
Post a Comment