EB Daily Market Report - Wednesday, May 6, 2026

Tom Bowley - May 06, 2026

Executive Summary

Futures were strong overnight after reports that the U.S. and Iran were nearing a deal to end the war
While the news has suggested that a potential peace deal is behind recent market advances, I believe it has much more to do with excellent earnings
Walt Disney (DIS, +7.63%) and Advanced Micro Devices (AMD, +17.96%) are two of the latest giants to report earnings well ahead of estimates
Commodities are having a strong day as both silver ($SILVER, +5.98%) and gold ($GOLD, +3.08%) rally
Crude oil ($WTIC, -7.15%), however, is down on those U.S-Iran settlement reports
Industrials (XLI, +2.67%) and technology (XLK, +2.32%) are leading our sectors high
Energy (XLE, -4.33%) and utilities (XLU, -1.27%) are the only sectors moving lower
AppLovin (APP, -2.18%), DoorDash (DASH, +0.89%), and McDonalds (MCD, -0.45%) are among companies that will report later today or tomorrow morning

Market Outlook

Leadership clearly is in the other major indices, but it's nice to see the Dow Jones rallying again and participating in the advance. The Dow Jones just hit 50000 for the first time since setting its all-time high in the second week of February at 50512.79. It seems just a matter of time before the Dow sets another new all-time high. As a refresher, I suggested the Dow's initial measurement was 53000 when it cleared its all-time high and a bullish inverse head & shoulders pattern in August 2025:

While the Dow Jones' chart is bullish, in my opinion, the bottom panel highlights its relative weakness vs. the S&P 500 (and the S&P 500 has been underperforming the NASDAQ 100 and Russell 2000). Note that the correction in Q1 took the Dow Jones right back to that 45000 breakout level, before the bulls rallied the troops and sent the Dow Jones higher again.

The Dow Jones is heading to 53000. Get ready. But I also believe it will underperform the other major indices.

Sectors/Industries

Broadcasting & entertainment ($DJUSBC) is having a very strong session after Walt Disney (DIS) reported quarterly results that exceeded Wall Street expectations and promptly jumped at the opening bell. DIS is the top-performing Dow Jones component stock today, contributing to the 1.4% jump in the Dow. While it's nice to see a big jump in DIS today, its peer group still has work to do in order to turn the table on the bears:

The blue circle highlights today's gap higher and rise, but the absolute and relative downtrend lines remain in play. So while it's a "feel good" day for DIS and its entertainment peers, I see key overhead resistance in the 1210-1220 zone, which is still another 3-4% higher.

ChartLists and Trading Strategies

Clearly, semiconductors ($DJUSSC) are leading this market higher. But other areas and stocks are also doing quite well. Internet ($DJUSNS) has broken out and is showing leadership. Stocks like Alphabet (GOOGL) have been showing strength for awhile, but others are worth watching.

PINS

Pinterest, Inc. (PINS) hasn't begun to show relative strength just yet, but it did beat both quarterly revenues and earnings when it reported its latest results on Monday after the closing bell. PINS gapped higher and today retreated to test gap support, providing a solid reward-to-risk entry:

EVER

EverQuote, Inc. (EVER) surged from Monday's close at 14.61 to Tuesday's close at 23.82, after posting revenues and EPS that easily surpassed consensus estimates. There was plenty of profit taking today, with EVER dropping back to near 20 at last check. The top of gap support is where I'd look for buyers to re-emerge, which is 19.09:

There are plenty of other internet stocks showing interesting chart developments, but these are two I wanted to highlight.

Upcoming Earnings

Our Upcoming Earnings ChartLists and Upcoming Earnings Relative Strength ChartList are now on our website as earnings season is well underway.

Economic Reports

April ADP employment: 109,000 (actual) vs. 84,000 (estimate)

Happy trading!
Tom