Weekly Market Update

Disney and Palantir delivered strong earnings reports, exceeding analyst expectations with revenue growth driven by their streaming and theme park units, as well as in the case of Palantir, a surge in 85% revenue growth. Meanwhile, investors are searching for winners in an ongoing deal spree, leading to nearly a billion dollars being raised by artificial intelligence startup Sierra.

MARKET SNAPSHOT:

• Stocks: Disney and Palantir shares surged after their earnings reports beat analyst expectations.
• Oil: The Iran war has triggered big swings in the stock market since the conflict started more than two months ago. Higher gasoline prices and mounting geopolitical tensions are doing little to slow the American consumer, at least judging by the latest results from Uber Technologies and The Walt Disney Co.
• Mortgage Rates: Mortgage rates climbed again this week as escalating Iran war tensions and an uncertain economic outlook continue to weigh on borrowing costs.

WHAT HAPPENED AND WHY IT MATTERS:

Disney's quarterly revenue exceeded analyst expectations once again, driven by its streaming and theme park units. This is the third consecutive quarter where Disney has beaten earnings estimates. The company's experiences segment, which includes its streaming service, saw a significant increase in revenue. This growth can be attributed to the success of Disney+'s content offerings and the expansion of the platform into new markets.

Palantir reported first-quarter results on Monday that sailed past analysts' expectations, with revenue growing 85%. The company also issued guidance that topped estimates. Palantir's revenue grew from $1.05 billion in the same quarter last year to $1.93 billion this year. This growth can be attributed to an increase in demand for its software solutions.

The Iran war is creating cost pressures for businesses that manufacture everything from cars to beer cans, due to aluminum prices surging to multiyear highs. Jet fuel shortages threaten to disrupt summer travel as the loss of supplies from the Middle East ripples across Asia and Europe.

WHAT TO WATCH NEXT WEEK:

• The Federal Reserve's upcoming meeting on interest rates.
• The release of the April jobs report.

The Iran war has led to a shift in consumer spending habits, with used car prices falling for the first time this year as gas prices spike.