WS #1910

The Strait of Hormuz blockade remains the dominant market-moving signal, with diesel futures surging 57% in March, threatening to push inflation toward 8%. This is corroborated by reports of over 500 complaints of petrol price-gouging in Australia and the redirection of over 4,000 vehicles due to port disruptions. However, countervailing signals are emerging: six U.S. allies (UK, France, Germany, Italy, Netherlands, Japan) and Canada have pledged support to secure the strait, and the IEA has already released initial emergency oil reserves, which could dampen energy price pressures. Geopolitically, Trump is seeking to delay a summit with China and has demanded Chinese naval assistance, but Beijing has reacted coolly, indicating potential friction. Corporate developments show mixed earnings signals. Positive beats include Scholastic (with a $200M buyback), Eton Pharmaceuticals (Q4 EPS $0.19 vs $0.09 estimate, FY26 revenue guidance exceeding $110M), and Planet Labs (better-than-expected Q4 sales and strong guidance). Negative signals include York Space Systems (Q4 sales miss), RCI Hospitality (Q4 EPS loss vs profit YoY), and FiscalNote Holdings (weak Q1 and FY26 sales guidance). Analyst actions from JP Morgan show continued caution, with price target cuts for multiple companies including Talen Energy, SailPoint, Liberty Media, HeartFlow, General Mills, and Constellation Energy. Notable company-specific developments: FedEx announced transformation programs that may cut ~5,000 operational employees, with pre-tax costs of $225M-$325M, while beating Q3 earnings and raising FY26 EPS guidance. Unusual Machines shares are trading lower after announcing a proposed public offering. Dark pool alerts show large institutional orders for VOO ($535.89M) and MU ($532.68M), indicating significant behind-the-scenes positioning. The S&P 500 closed below its 200-day moving average for the first time since May 9th, signaling broader technical weakness.