{"id":62660,"date":"2026-06-03T07:38:28","date_gmt":"2026-06-03T11:38:28","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/macys-and-medtronic-report-earnings-as-geopolitical-shifts-drive-market-volatility\/62660\/"},"modified":"2026-06-03T07:38:28","modified_gmt":"2026-06-03T11:38:28","slug":"macys-and-medtronic-report-earnings-as-geopolitical-shifts-drive-market-volatility","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/macys-and-medtronic-report-earnings-as-geopolitical-shifts-drive-market-volatility\/62660\/","title":{"rendered":"Macy\u2019s and Medtronic Report Earnings as Geopolitical Shifts Drive Market Volatility"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Macy\u2019s (<a href=\"\/stock\/M\">M<\/a>) surpassed Q1 expectations<\/strong> with an adjusted EPS of <strong>$0.23<\/strong> (vs. $0.13 est.) and raised its full-year sales and earnings guidance.<\/li>\n<li><strong>Donald Trump claimed Iran has agreed to forgo nuclear weapons<\/strong>, a statement that has immediately impacted market sentiment and geopolitical risk premiums.<\/li>\n<li><strong>Medtronic (<a href=\"\/stock\/MDT\">MDT<\/a>) reported a revenue beat of $9.81 billion<\/strong> but issued FY2027 earnings guidance slightly below analyst consensus.<\/li>\n<li><strong>Citigroup significantly raised its price target for IBM (<a href=\"\/stock\/IBM\">IBM<\/a>) to $375<\/strong>, citing the company\u2019s massive <strong>$10 billion investment<\/strong> in quantum computing.<\/li>\n<li><strong>Geopolitical tensions remain high<\/strong> as Germany reports a shift in military momentum toward Ukraine, while Russia claims to have downed over <strong>750 drones<\/strong> in 24 hours.<\/li>\n<\/ul>\n<h2>Retail Resilience: Macy\u2019s Beats and Raises<\/h2>\n<p>Macy\u2019s (<a href=\"\/stock\/M\">M<\/a>) delivered a strong start to 2026, reporting <strong>Q1 adjusted net income of $35 million<\/strong>, nearly triple the analyst estimate of $13.4 million. The retailer saw <strong>total revenue of $4.89 billion<\/strong>, driven by a <strong>3.0% increase in comparable sales<\/strong>, marking its strongest first quarter in four years.<\/p>\n<p>Management expressed confidence in its &quot;Bold New Chapter&quot; strategy, raising the <strong>full-year adjusted EPS outlook to $2.00\u2013$2.20<\/strong> from the previous $1.90\u2013$2.10. <em>Investors responded positively to the gross margin of 38.9%<\/em>, which slightly beat expectations despite ongoing tariff pressures and supply chain shifts.<\/p>\n<h2>Mixed Outlook for Medtronic<\/h2>\n<p>Medtronic (<a href=\"\/stock\/MDT\">MDT<\/a>) reported <strong>Q4 revenue of $9.81 billion<\/strong>, exceeding the $9.64 billion estimate, supported by <strong>6.6% organic revenue growth<\/strong>. While the company met adjusted EPS estimates of <strong>$1.55<\/strong> and raised its quarterly dividend to <strong>$0.72 per share<\/strong>, its forward-looking guidance dampened some enthusiasm.<\/p>\n<p>The medical device giant expects <strong>FY2027 adjusted EPS of $5.90 to $6.00<\/strong>, which falls short of the <strong>$6.06 analyst consensus<\/strong>. <em>The lower-than-expected guidance suggests potential margin compression<\/em> as the company navigates a shifting healthcare landscape.<\/p>\n<h2>Geopolitical Headlines Flip Market Sentiment<\/h2>\n<p>Global markets are reacting to a flurry of geopolitical developments, most notably a claim by Donald Trump that <strong>Iran has agreed to forgo nuclear weapons<\/strong>. This headline has introduced fresh volatility, as traders weigh the potential for a &quot;big, beautiful peace deal&quot; against the risk of sudden escalations.<\/p>\n<p>In Europe, the <strong>German Defence Ministry<\/strong> noted a &quot;sense of military momentum&quot; on the Ukrainian side against Russia. Simultaneously, the <strong>Russian Defence Ministry<\/strong> claimed to have downed <strong>754 drones<\/strong> over the last 24 hours. In the energy sector, President Putin has reportedly authorized TotalEnergies (<a href=\"\/stock\/TTE\">TTE<\/a>) to sell its <strong>10% stake in the Arctic LNG 2 project<\/strong>, signaling a further decoupling of Western firms from Russian energy assets.<\/p>\n<h2>IBM\u2019s Quantum Leap and Economic Data<\/h2>\n<p>Citigroup issued a major upgrade for IBM (<a href=\"\/stock\/IBM\">IBM<\/a>), raising its price target to <strong>$375 from $285<\/strong>. The bank highlighted IBM\u2019s <strong>$10 billion five-year investment plan<\/strong> for quantum computing, suggesting the company is &quot;underappreciated&quot; and well-positioned to lead a market estimated to be worth <strong>$850 billion<\/strong>.<\/p>\n<p>On the domestic front, <strong>US MBA Mortgage Applications<\/strong> fell <strong>2.5%<\/strong> for the week ending May 29, even as the 30-year mortgage rate ticked down to <strong>6.57%<\/strong>. Meanwhile, the <strong>IATA fuel leader<\/strong> warned of temporary fuel shortages at certain airports, noting that recent flight cancellations have led to a complex shift in global jet fuel demand.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Macy\u2019s (M) surpassed Q1 expectations with an adjusted EPS of $0.23 (vs. $0.13 est.) and raised its full-year 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