Spirit Airlines Shuts Down, GameStop Makes $56B Bid for eBay

This episode of The Rundown covers market gains driven by strong earnings, the shutdown of Spirit Airlines amid high fuel costs from the Iran conflict, highlights from Berkshire Hathaway's annual meeting without Warren Buffett on stage, standout earnings from Atlassian and Norwegian Cruise Line, and GameStop's unsolicited $56 billion bid for eBay.

Strong Earnings Fuel Market Rally

Stocks ended last week with gains, as the S&P 500 and Nasdaq both rose about 1% to record highs—the S&P's longest winning streak since 2024. Earnings have been a key driver, with 84% of reporting S&P 500 companies beating estimates, the highest rate since 2021. On average, earnings exceeded expectations by 21%, far above the five-year average of 7.3%. This momentum continues into a busy week with 120 companies reporting and the April jobs report due. Oil prices remain elevated amid the Iran war, with Brent crude at $111 per barrel and WTI at $105, though investors are prioritizing earnings for now. President Trump's Project Freedom aims to escort stranded cargo ships through the Strait of Hormuz, but its impact is unclear.