5 Things to Watch on
May 19, 2026

Gulf leaders from Saudi Arabia, Qatar and the UAE successfully persuaded President Trump to postpone a planned military strike on Iran, with stocks down more than -0.3% in premarket trading as Nasdaq leads losses amid continued pressure from elevated oil prices and high interest rates. Oil pulled back modestly after Trump confirmed he had called off the attack as negotiations progressed.

A nine-person jury unanimously ruled against Elon Musk in his lawsuit against OpenAI, finding he had missed the statute of limitations deadline, with the judge accepting the verdict minutes later. The ruling removes what analysts called a "$134B overhang" on OpenAI's operations and clears the way for an IPO, while also freeing Microsoft (MSFT) from Musk's aiding-and-abetting claims. Musk has said he will appeal to the Ninth Circuit, though analysts view the practical impact on OpenAI's path to going public as minimal.

Home Depot (HD) reported Q1 revenue of $41.8B, up +5% YoY, with comparable sales rising +0.6%, edging past the +0.5% consensus, and EPS of $3.43 narrowly beating estimates. CEO Ted Decker noted demand trends were largely unchanged from fiscal 2025 despite consumer uncertainty and housing affordability pressure, while CFO Richard McPhail added that homeowners remain relatively insulated financially compared to other customer cohorts. HD guided full-year revenue to a $170.5B midpoint above consensus, with EPS guidance of $14.99 roughly in line with expectations.

The SEC is preparing to release an innovation exemption as soon as this week that would allow trading of tokenized securities, including tokens created without the consent of the underlying companies. Under the plan, third-party tokens would be tradeable on decentralized crypto platforms, though those failing to carry shareholder benefits like voting rights and dividends would lose listing privileges. Critics warn the framework could fragment equity markets by allowing unlimited parallel wrappers of the same issuer to trade simultaneously.

Barnes & Noble CEO James Daunt said the bookstore chain is open to stocking AI-written titles, breaking from the publishing industry's broadly resistant stance. Daunt's position hinges on transparency, stating he has "no problem" selling AI-authored books provided they are clearly labeled and don't misrepresent their origins or infringe on existing works. He stopped short of predicting a commercial breakthrough, saying AI titles aren't likely to gain much traction in the near term.