Last week was looking disastrous for stocks, with two troublesome inflation reports and volatility related to the largest IPO in history. But news of a peace deal with Iran sent oil prices tumbling and stocks roaring higher. As well, the SpaceX IPO seemed to launch without a hitch.

Sustainable Impact Investing is gaining traction not only with Argus Research clients but also with the global investment community. As assets have flowed in over the past 40 years, Sustainable Investing has evolved. The discipline, originally known as Socially Responsible Investing, first focused on excluding companies that conducted business in South Africa, or participated in industries such as tobacco, alcohol, and firearms. In time, the list of industries to avoid increased to include soft drinks, fast food, and oil and gas, among numerous others. Performance of initial strategies lagged, and the approach has been modified. Now, instead of merely identifying industries to avoid, the discipline promotes "sustainable" business practices across all industries that can have an "impact" on global issues such as climate, hunger, poverty, disease, shelter, and workers' rights. Given the strategy's focus on leading management practices, we expect the growth curve for Sustainable Investing to again slope upward in the years ahead.

Analog Devices is a semiconductor manufacturer specializing in high-performance analog and digital signal processor semiconductors. In March 2017, ADI completed the acquisition of Linear Technology. In August 2021, it acquired Maxim Integrated Products in a $21 billion all-stock deal.

This week features an earnings report form discount giant Costco and some new inflation data. Last week, the Dow Jones Industrial Average rose 2%, the S&P 500 gained 1%, and the Nasdaq was flat. Year to date, the DJIA is up 5%, the S&P is higher by 9%, and the Nasdaq has popped 13%. Drilling down on the earnings calendar, AutoZone reports on Tuesday; Marvell Technology, Salesforce, Snowflake, HP, and Dick's Sporting Goods on Wednesday; and Costco Wholesale, Dell, MongoDB, Best Buy, and Dollar Tree on Thursday. Some 94% of S&P 500 companies have reported so far, and overall earnings are up 29% over last quarter. Information Technology, up 55%, and Communication Services, up 51%, are leading the pack. At the bottom are Healthcare, down 3%, and Energy, down 1%, according to LSEG I/B/E/S. On the economic calendar, the Case-Shiller Home Price Index is due out on Tuesday; Durable Goods and New Home Sales will be reported on Thursday; and the Personal Consumption Expenditures Index (an inflation indicator) will hit the tape on Friday. Gas prices remain elevated though prices dropped a penny last week and are now at an average of $4.49 per gallon for regular gas. The Atlanta Fed GDPNow forecasts 4.3% growth in GDP for 2Q. That's a big jump from 2% in 1Q. The Cleveland Fed Inflation Nowcast calls for CPI of 4.2% in May. That a step-up from the 3.8% print for April and 3.3% in March. Mortgage rates jumped 15 basis points last week, with the average 30-year fixed-rate mortgage now at 6.51%, according to FreddieMac. The next Federal Open Market Committee (FOMC) meeting is on June 17, and will be the first under the chairmanship of Kevin Warsh. Odds are at 3% for a rate hike at that meeting, a reversal from previous odds that called for a rate cut. Taking a deeper dive into performance so far in 2026, a leading industrialized global stock market index, the ETF EFA, is up 8% year to date, while the leading emerging market ETF (EEM) is up 20%. U.S. growth stocks are up 5% year to date as per the ETF IWF, while value stocks (IWD) are up 12%. Crude oil prices continue to be volatile. On Friday, oil was at $97 per barrel, up 67% for the year to date. In other asset classes for the year to date, AGG bonds are down 2%, gold is up 3%, and Bitcoin is down 13%. The U.S. dollar is up 1%, tracking DXY. The VIX Volatility Index was about 17 on Friday, below its historical average of 20. Turning to sector performance, the list from first as of May 15, is Energy (+32%), Information Technology (+17%), Communication Services (+11%), Consumer Staples (+11%), Industrials (+10%), Materials (+10%), Real Estate (+8%), Utilities (+3%), Consumer Discretionary (flat), Financials (-7%), and Healthcare (-7%).