WS #13562

The dominant theme remains the Strait of Hormuz conflict, which is now ESCALATING with a new Saudi warning of imminent attacks on energy infrastructure, ports, and airports, potentially coordinated by Iranian-backed militias. This is partially offset by Trump's claim of involvement in negotiations to reopen the strait and Saudi statements that de-escalation efforts are moving in the right direction. The escalation supports oil prices (USO +4.07%) and energy names, while pressuring airlines and consumer discretionary. In earnings, Cloudflare (NET) delivered a strong double beat and raised guidance, with shares up 15% AH, but a $150M restructuring charge and margin compression are watchpoints. Microchip (MCHP) also beat and guided solidly, up 13% AH. Conversely, DraftKings (DKNG) missed on sales and profit, and The Trade Desk (TTD) fell on weak guidance. Amazon (AMZN) disclosed new stakes in Allegiant Travel (ALGT) and X-Energy, and sold its Nautilus Biotechnology holding. Nielsen announced a $2.15B all-cash acquisition of DoubleVerify (DV), sending DV shares up. Sweetgreen (SG) cut outlook on parasite-induced demand drop. Several other earnings beats/misses (Airbnb, Instacart, AIG, Atlassian, Twilio, etc.) are noted but are secondary.