Some late-week strength helped the major indices post a second positive week as concerns about higher energy prices receded. Crude oil (WTI) hit a high of $76/barrel on Wednesday, ran into resistance from the declining 21-day exponential average, and finished the week near $71.50. But Treasury yields remained elevated and very close to their recent highs. Now, earnings season has arrived, with a slew of financial companies reporting, including JPM, GS, BAC, C, WFC, BLK, MS, BNY, PNC, USB, and TRV. In addition, ASML, TSM, GE, JNJ, UNH, ABT, ISRG, and NFLX post results. June CPI is Tuesday, June PPI is Wednesday, June Retail Sales is Thursday, and there Fed activity all week.

Dividend income is often overlooked amid gyrations in the stock market. Consider that in 2024, market bulls were boasting about 24%-plus S&P 500 returns. No one was very focused on the broad market index's 1.2% dividend yield. But dividends are an important element of return, and 2025 for a while was bearing that out. Through May, the S&P 500 was up a thin 1.1%; without dividends, there was essentially no returns at all. Of note, dividend income accounted for 42% of the total return of the S&P 500 between 1930 and 2012, according to Hartford Funds. And that's just the average. In some of those decades, dividends accounted for more than 50% of total returns and even 100%. More recently, dividends have accounted for a smaller portion of returns, at around 15%-20%. But not all dividends are created equal, though, and it is important to understand the difference between the two main investment categories: high-yield stocks and dividend-growth stocks.

Thursday looked like a day of indecision until the early afternoon, when President Trump (again) called off strikes on Iran and said the U.S. will soon sign a deal with that country. Markets went ballistic, with crude oil tanking, Treasury bonds ripping, and stocks exploding. After about 40 headlines that a deal was close, the markets responded like the war in the Middle East is over and the Strait of Hormuz is open.

The first-quarter earnings season has been sensational. Many companies knocked it out of the park when delivering earnings and revenue numbers that well beyond expectations. With reports now in from about 96% of S&P 500 companies, earnings have climbed a staggering 29% from last quarter. Information Technology, up 56%, and Communication Services, up 51%, have led the pack. At the bottom are Healthcare, down 3%, and Energy, down 1%. With earnings season essentially over, we have had a chance to look at trends. In particular, we watch for companies that raised guidance as we view that action as a likely catalyst for market-beating returns in the quarters ahead. It's even harder for companies to raise guidance during uncertain economic times, as vision is murky. The following is a partial list of companies in Argus' Fundamental Universe of Coverage where management raised its outlook during the 1Q26 reporting season.