WS #7149

The dominant macro narrative remains the Strait of Hormuz crisis and elevated oil prices, with Brent near $107 and WTI above $102. However, several new data points have emerged that could shift sector-level positioning. US intelligence assessments indicate Iran retains substantial missile capacity and has restored access to 30 of 33 missile sites along the Strait, contradicting claims of degraded capability and keeping geopolitical risk elevated. This is corroborated by multiple sources (NYT, Bloomberg, social media). Copper prices hit an all-time high, with the Strait of Hormuz disruption cited as a factor, which is bullish for copper miners (FCX, SCCO) and bearish for copper-intensive sectors. Separately, the FDA commissioner Marty Makary resigned, with Trump naming Kyle Diamantas acting chief, creating regulatory uncertainty for biopharma. On the corporate front, eBay rejected a takeover bid from GameStop, sending EBAY up 2.1% and signaling the market prefers eBay standalone. Franco-Nevada beat Q1 estimates on strong revenue growth, positive for precious metals royalty/streaming. JBS posted a miss on Q1 EPS and revenue, negative for protein producers. The Missouri Supreme Court upheld a Republican-friendly congressional map, while South Carolina Republicans defied Trump's redistricting push, creating a split-screen political narrative with limited direct market impact. Japan's Kawasaki Heavy Industries launched a 30% hydrogen engine, part of a $13B hydrogen infrastructure build to escape Strait of Hormuz dependence, bullish for hydrogen plays. The MSCI May index review added Medline, MasTec, and TechnipFMC to the MSCI World Index, which could drive passive inflows. Brazil's Lula to sign executive order scrapping federal tax on lower value imports, which could impact e-commerce and retail. Ukraine strikes Russian gas facilities in retaliation, escalating energy infrastructure targeting. OpenAI's Sam Altman takes the stand in trial against Elon Musk, which could have implications for AI governance and OpenAI's structure.