{"id":62446,"date":"2026-05-28T07:38:25","date_gmt":"2026-05-28T11:38:25","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/middle-east-conflict-escalates-as-us-intercepts-iranian-drones-retailers-best-buy-and-dollar-tree-top-estimates\/62446\/"},"modified":"2026-05-28T07:38:25","modified_gmt":"2026-05-28T11:38:25","slug":"middle-east-conflict-escalates-as-us-intercepts-iranian-drones-retailers-best-buy-and-dollar-tree-top-estimates","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/middle-east-conflict-escalates-as-us-intercepts-iranian-drones-retailers-best-buy-and-dollar-tree-top-estimates\/62446\/","title":{"rendered":"Middle East Conflict Escalates as US Intercepts Iranian Drones; Retailers Best Buy and Dollar Tree Top Estimates"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Geopolitical tensions surged as US forces destroyed Iranian drones in the Strait of Hormuz and Kuwaiti defenses intercepted a ballistic missile launched by Iran.<\/strong><\/li>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> and Nasdaq 100 futures extended losses<\/strong> as investors reacted to the threat of regional instability and potential disruptions to global shipping lanes.<\/li>\n<li><strong>Best Buy (<a href=\"\/stock\/BBY\">BBY<\/a>) reported a Q1 earnings beat<\/strong> with adjusted EPS of <strong>$1.28<\/strong> on revenue of <strong>$8.94 billion<\/strong>, driven by a surprise <strong>2%<\/strong> increase in comparable sales.<\/li>\n<li><strong>Dollar Tree (<a href=\"\/stock\/DLTR\">DLTR<\/a>) raised its full-year guidance<\/strong> after posting an adjusted EPS of <strong>$1.74<\/strong>, significantly ahead of the <strong>$1.54<\/strong> analyst estimate.<\/li>\n<li><strong>CVS Health (<a href=\"\/stock\/CVS\">CVS<\/a>) reversed its previous coverage stance<\/strong>, adding Eli Lilly\u2019s (<a href=\"\/stock\/LLY\">LLY<\/a>) weight-loss drug <strong>Zepbound<\/strong> back to its preferred drug list.<\/li>\n<\/ul>\n<h2>Geopolitical Tensions Flare in the Strait of Hormuz<\/h2>\n<p>Conflict in the Middle East reached a new flashpoint early Thursday as <strong>US forces destroyed several Iranian drones<\/strong> in the <strong>Strait of Hormuz<\/strong>. The escalation followed reports from <strong>Iran&#39;s State TV<\/strong> that the <strong>IRGC<\/strong> had stopped two commercial vessels and forced others to turn back prior to US strikes on <strong>Bandar Abbas<\/strong>.<\/p>\n<p>The situation intensified as a <strong>missile launched by Iran toward Kuwait was successfully intercepted<\/strong>, prompting a sharp condemnation from the <strong>Gulf Cooperation Council (GCC)<\/strong>. The <strong>Kuwaiti Foreign Ministry<\/strong> stated it reserves the right to take &quot;necessary measures&quot; to defend its territory, while <strong>Saudi Arabia<\/strong> affirmed its categorical rejection of sovereignty violations.<\/p>\n<p><em>Market participants are closely monitoring the IRGC\u2019s claim of &quot;intelligent control&quot; over the Strait<\/em>, as any prolonged disruption to the safe corridor could lead to a significant spike in energy prices. <strong>S&amp;P 500 and Nasdaq 100 futures<\/strong> fell sharply on the news, reflecting growing fears of a broader regional war.<\/p>\n<h2>Retail Sector Shows Resilience Amid Earnings Beats<\/h2>\n<p>Despite the geopolitical backdrop, the retail sector provided a <a href=\"https:\/\/stockmarketwatch.com\/metal\/silver\" data-internallinksmanager029f6b8e52c=\"5\" title=\"silver price today\">silver<\/a> lining as major players reported stronger-than-expected first-quarter results. Best Buy (<a href=\"\/stock\/BBY\">BBY<\/a>) posted <strong>revenue of $8.94 billion<\/strong>, surpassing the <strong>$8.83 billion<\/strong> estimate, and maintained its <strong>FY27 adjusted EPS guidance of $6.30 to $6.60<\/strong>.<\/p>\n<p>Dollar Tree (<a href=\"\/stock\/DLTR\">DLTR<\/a>) delivered a &quot;beat-and-raise&quot; quarter, reporting <strong>sales of $4.97 billion<\/strong>. The discount retailer now expects <strong>full-year adjusted EPS between $6.10 and $7.10<\/strong>, up from its previous outlook, as it benefits from lower freight costs and improved margins.<\/p>\n<p>Kohl\u2019s (<a href=\"\/stock\/KSS\">KSS<\/a>) also outperformed expectations, reporting a <strong>narrower-than-expected loss of 13 cents per share<\/strong> compared to the <strong>20-cent loss<\/strong> anticipated by analysts. While <strong>comparable sales fell 1.1%<\/strong>, the figure was better than the projected <strong>1.71% decline<\/strong>, allowing the company to reaffirm its full-year guidance.<\/p>\n<h2>Banking and Healthcare Developments<\/h2>\n<p>In the financial sector, TD Bank (<a href=\"\/stock\/TD\">TD<\/a>) reported second-quarter <strong>adjusted EPS of C$2.38<\/strong>, beating the <strong>C$2.26<\/strong> consensus. The bank also announced a <strong>dividend increase to C$1.12 per share<\/strong>, citing accelerated momentum in its <strong>US banking division<\/strong> and continued progress on anti-money laundering remediation.<\/p>\n<p>CVS Health (<a href=\"\/stock\/CVS\">CVS<\/a>) made a significant policy shift by adding Eli Lilly\u2019s (<a href=\"\/stock\/LLY\">LLY<\/a>) <strong>Zepbound<\/strong> to its preferred drug list. <em>This reversal is expected to broaden access to popular GLP-1 weight-loss treatments<\/em>, marking a pivot in the pharmacy benefit manager&#39;s strategy to manage rising healthcare costs while maintaining competitive coverage.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Geopolitical tensions surged as US forces destroyed Iranian drones in the Strait of Hormuz and Kuwaiti defenses intercepted 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