Major indices are marginally lower, but have moved off their morning lows, as investors digest the latest round of earnings and a plethora of news.

Six sectors are moving higher, with Utilities (XLU) out in front. The sector is getting a boost from a favorable earnings reaction to NextEra energy (NEE). Meanwhile, Industrials (XLI) is the runner up following positive reactions to earnings reports from United Rentals (URI), United Pacific Corporation (UNP), and Dover (DOV).

At the bottom of the list is Technology (XLK), with software names leading the sector lower, partially offset by strength in hardware and semiconductor names.

AI Update

Anthropic has reportedly hit a $1 trillion valuation, surpassing OpenAI at $880 Billion on Forge Global’s secondary market.

Spotify (SPOT) announced that their users can connect their account to Claude for personalized recommendations. In addition, Claude will support Spotify Connect which lets users see where Spotify is playing and switch or control your devices without leaving the conversation.

In other AI news, insurers have won state approval to exclude AI related damages in some corporate insurance policies, with approximately 80% of requests approved.

Oklo (OKLO), Nvidia (NVDA), and Los Alamos National Laboratory partnered to advance nuclear fuel research with AI, which in turn could be used to help power AI’s insatiable appetite for electricity.

Iran Rundown

Trump made comments regarding Iran this morning on Truth Social. He noted that the Navy has order to shoot any potential Iranian minelayers and sweep any potential mines in the Strait of Hormuz. Additionally, he gave insight into the current leadership crisis in Iran, with hardliners and moderates infighting amongst each other.

Economic Data

S&P Composite PMI rose to 52 in April from 50.3 in March. The Manufacturing component rose to 54 from 52.3 and beat expectations of 52.5. Additionally, the Services component rose to 51.3 from 49.8 and beat forecasts of 50.

The Kansas Fed Manufacturing Index moved down to 10 in April from 11 in March. The move was due to a decline in durable goods, partially offset by continued increases in non-durable goods.

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