The Profit Margin: May 11, 2026
Statistic of the Week
Last week, the SEC proposed amendments that would allow publicly traded companies the option to file semiannual reports in place of the current quarterly requirement. Under existing rules, companies must report results within 45 days of each fiscal quarter-end. The proposal will be open for public comment for 60 days. The quarterly reporting requirement has been in place since 1970; prior to that, from 1955 to 1970, companies reported on a semiannual basis.
Global Perspective
Hong Kong’s economy grew at an annualized rate of 5.9% in the first quarter, marking its strongest expansion since the second quarter of 2021. Exports rose approximately 24% during the period, supported in part by increased demand for AI-related electronics and components.
Market Moving Events
Tuesday: CPI, Federal Budget
Wednesday: PPI
Thursday: Jobless Claims, Retail Sales, Import Prices
Friday: Empire State Manufacturing, Industrial Production, Capacity Utilization
Commentary
It was another positive week on Wall Street as oil prices moved lower, bond yields eased slightly, and domestic equity markets advanced. All three major U.S. indices finished the week higher. The Nasdaq continued its strong momentum, posting its sixth consecutive weekly gain with a 4.51% rally.1 The S&P 500 rose 2.33%,2 while the DJIA gained 0.22%.3 Fixed income markets were relatively stable, with the 10-year Treasury yield slipping 0.02% to close the week at 4.36%.4
Strong corporate earnings have been a key driver behind the market’s resilience despite ongoing geopolitical uncertainty. As of Thursday, roughly 90% of S&P 500 companies had reported earnings, with 87% exceeding earnings-per-share estimates.5 The rebound from recent lows has been significant, leading some investors to question how long the rally can continue. The S&P 500 has already recorded 15 all-time closing highs in 2026.6 Historically, markets have often continued to perform well following new highs. Since 1960, the S&P 500 has gone on to generate an average 12-month return of approximately 12% following a record close.7
A “no hire, no fire” labor market and accelerating inflation remain two key challenges investors are grappling with. Last week’s employment report showed unemployment holding steady at 4.3%, alongside stronger-than-expected job gains.8 However, the report also included a downward revision to the combined February and March payrolls and softer-than-expected wage growth.9 This week, markets will turn their attention to the CPI and PPI inflation reports. Expectations are for CPI to have risen 0.3% in April and 3.8% on a year-over-year basis.10
Chart of the Week
The Bureau of Labor Statistics reported that the U.S. economy added 115,000 jobs in April, exceeding analyst expectations.
Source Materials
Market Moving Events:
MarketWatch.com
Chart of the Week:
Clearnomics,
Bureau of Labor Statistics, Morningstar.com
Statistic of the Week:
Yahoo! Finance
Global Perspective:
The Economist
Commentary:
1. Bloomberg, Investor’s Business Daily
2. Bloomberg
3. Bloomberg
4. MarketWatch.com
5. Barron’s
6. Investor’s Business Daily
7. Barron’s
8. Morningstar.com, Bureau of Labor Statistics
9. Bureau of Labor Statistics
10. MarketWatch.com