Good morning investors! Tech gave us a nice rally yesterday with stocks closing higher.
Today we cover:
Inflation doesn’t come as a shocker
Dell impresses
More earnings
📊 Economy and News
Core Inflation Hits 3.3% in April as Fed Faces Persistent Price Pressures
Core inflation rose to an annual rate of 3.3% in April, matching expectations, according to the Federal Reserve's preferred measure . The Commerce Department reported core PCE prices increased 0.2% for the month, below the 0.3% forecast, offering hope that recent price surges may be easing .
Metric | April Reading | Forecast | Year-over-Year |
|---|---|---|---|
Core PCE (monthly) | 0.2% | 0.3% | 3.3% |
Headline PCE (monthly) | 0.4% | 0.5% | 3.8% |
Q1 GDP (revised) | 1.6% annualized | 2.0% | — |
Jobless claims | 215,000 | 213,000 | — |
Durable goods orders | 7.9% | 3.5% | — |
The 3.8% headline inflation rate is the highest since May 2023, while core inflation peaked at its highest level since November 2023 . Goods prices jumped 0.7%, driven by a 5.5% gasoline surge, while housing prices rose 0.5%—the biggest monthly gain since January 2025 .
Despite soft Q1 GDP growth of 1.6%, consumer spending increased 0.5% in April, funded largely by a savings rate drop to 2.6%, its lowest since June 2022 . Markets expect the Fed to hold rates through late 2026, with traders now pricing in a possible rate increase in early 2027 . The Iran conflict and tariff impacts have disrupted the Fed's path toward its 2% inflation goal
Global hits:
New York state budget includes New York City tax on high-end second homes.
South Africa raises interest rates to 7% amid Iran war inflation risks.
Brazil economic growth expected to have picked up in Q1 on stronger manufacturing.
Check here: Silver could fall further after latest slump, analysts say as they warn of demand destruction.
Exxon warns oil inventories will hit dangerously low levels in weeks, forcing prices to shoot higher.
US-Iran deal: The US and Iran reached a tentative agreement to open the Strait of Hormuz and start nuclear talks, according to US officials — though President Donald Trump has not signed off on the 60-day memorandum of understanding. At the same time, both countries are involved in attacks as Iran fired missiles at a US airbase in Kuwait in retaliation to US attacks on its military sites this week.
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📈 Stocks
S&P 500 7,563.63 (+0.58%)
DJIA 50,668.97 (+0.049%)
NASDAQ 26,917.47 (+0.91%)
BRENT CRUDE 93.71 (-0.53%)
* Prices as of Mar 28th, 12:20 AM UTC
Dell Stock Surges 31% After Blowing Past Expectations with Fastest Revenue Growth Since IPO
Dell reported its fastest revenue growth since returning to public markets in 2018, with Q1 fiscal 2027 revenue soaring 88% year-over-year to $43.84 billion, far exceeding the $35.43 billion expected . Adjusted earnings per share hit $4.86 vs. $2.94 forecast, driving shares up 31% in after-hours trading .
Key Results vs. Estimates:
Metric | Actual | Expected |
|---|---|---|
EPS (adjusted) | $4.86 | $2.94 |
Revenue | $43.84B | $35.43B |
YoY Revenue Growth | 88% | — |
Dell now serves over 5,000 AI server customers across neoclouds, sovereign clients, and enterprises . The company secured a $9.7 billion, five-year Pentagon contract for Microsoft 365 services just days before the earnings report .
Forward Guidance:
Q2 FY2027: $4.80 EPS, $44–45B revenue (vs. $2.98 EPS, $34.97B expected)
Full FY2027: $17.90 EPS, $165–169B revenue (47% growth at midpoint)
More earnings:
Costco reported record-breaking gas volumes in its fiscal third quarter amid rising fuel prices, attracting first-time members to its gas stations . Net sales jumped 11.6% year-over-year to $69.15 billion, beating Wall Street expectations
Comparable sales: +6.6%
Digital sales: +21%
Paid memberships: +4.1%
Website/app traffic: +37%
Top categories: Pharmacy, home furnishings, gold & jewelry
Gap's largest brand Old Navy underperformed in fiscal Q1, prompting the retailer to lower its full-year sales guidance to 1%–2% growth (from 2%–3%) . Shares dropped more than 14% in after-hours trading .
Despite the sales miss, Gap boosted its profitability outlook, now expecting adjusted EPS of $2.30–$2.40 for the year (up from $2.20–$2.35).
Okta beat Wall Street’s fiscal first-quarter estimates as demand for identity security tools spikes with the onslaught of agentic artificial intelligence. The identity security provider said revenue grew 11% from a year ago. Net income rose to $74 million, or 42 cents per share, from $62 million, or 35 cents per share, a year ago.
Surprising: CVS Health said it will restore coverage of Eli Lilly’s blockbuster weight loss injection Zepbound and start covering its new obesity pill on its standard drug plans. In other news, Waymo opens Ojai robotaxis to select riders as company aims to lower cost of fleet expansion.
💵 Personal Finance
Americans' Savings Rate Plummets to 2.6%, Lowest Since 2022, as Inflation Outpaces Wages
Americans' personal savings rate dropped to 2.6% in April, the lowest level since June 2022, as rising costs for essentials outpace wage growth .
The rate fell from 3.2% in March and 5.8% a year earlier, with economist Heather Long calling the reading "so low" it initially seemed like a typo
Elevated prices across groceries, utilities, healthcare, and gasoline—now averaging $4.43 per gallon amid the Iran war—are forcing households to dip into savings, tap retirement accounts, or rely on credit to cover expenses.
A NerdWallet survey found 37% of Americans will use credit cards or loans to cover monthly expenses, including 35% of households earning over $100,000, while Fidelity data shows 19.2% of workers now have outstanding 401(k) loans, up from 18.8% last year .
💰 Be a Better Investor
It’s good to have money and the things that money can buy, but it’s good, too, to check up once in a while and make sure that you haven’t lost the things that money can’t buy.
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