Stocks are slightly down today in premarket trading, a day after the Nasdaq and S&P 500 notched record closes, as investors digested earnings season while monitoring U.S.-Iran tensions. Diplomatic hopes remain alive with a second round of talks potentially as soon as Friday, but conditions on the water tell a more volatile story. The U.S. military confirmed it intercepted two Iranian supertankers after attempting to breach an American blockade, while a third tanker remains under Navy escort in the Indian Ocean. Tehran struck back yesterday, attacking at least three vessels in the Strait of Hormuz and diverting two into Iranian waters.
Tesla Lays Groundwork for Multi-Year Investment Cycle
Tesla (TSLA) is up slightly in premarket trading after CEO Elon Musk used the earnings call to discuss an expansive vision rather than defend a difficult quarter. The company is committing roughly $25B in CapEx this year to fund Cybercab, Semi, and Optimus production ramps, with the payoff expected to arrive in 2027 and beyond. Musk confirmed robotaxi expansion into additional states, Optimus production starting mid-year, and plans for a new Roadster debut, framing 2026 as the setup year before a much bigger story.
New Lululemon CEO Fails to Impress
Lululemon Athletica (LULU) is down -6% in premarket trading after naming Heidi O'Neill as CEO, a choice analysts received with skepticism. O'Neill, a longtime Nike (NKE) executive, won't join until September due to a non-compete, delaying any strategic reset until at least 2027 while interim co-CEOs hold the line on North America comps and margins. Analysts also noted that her NKE background raises questions about fit, and that the leadership transition does nothing to defuse an ongoing proxy fight led by founder Chip Wilson, who is pushing to reshape the board.
IBM Holds Guidance, Investors Want More
IBM (IBM) is down -8% in premarket trading, not because the quarter was bad, but because it wasn't good enough to justify raising the bar. Revenue and earnings both came in ahead of estimates, yet management kept its full-year outlook unchanged, citing macro caution and consulting softness tied partly to Middle East uncertainty. Supporters state that IBM's growing AI pipeline and software momentum make the conservative posture a feature, not a flaw.
ServiceNow Slides on Margin Outlook
ServiceNow (NOW) is down -13% in premarket trading after a quarter that beat on revenue but left investors focused on what comes next. The concern isn't demand, it's margin; the company guided to a subscription gross margin below expectations, citing acquisition integration, with a return to historical levels not expected until 2027. Bulls pushed back on the severity of the selloff, noting that large deal delays are timing-related and that the underlying business remains healthy.
