AI is helping companies in the Industrial sector, and those same companies are helping AI. We hear a lot of talk about the technology supporting AI (such as data centers and high-speed chips). For its part, the Industrial sector is full of names supporting AI growth by supplying the energy, infrastructure, transport, and construction needed to build out new AI-focused facilities. Meanwhile, Industrial companies are harnessing AI technology to help with processes, inventory control, and supply-chain management, and many other functions. Indeed, Industrial companies are using smart robots to manage and work production lines at manufacturing facilities, while AI also is helping to make front and back offices operate more efficiently and cost effectively. We are running a five-part webinar series on AI, looking at how different industries are incorporating AI practices. We just hosted our fourth edition, spotlighting the Industrial sector. For our list this week, we are presenting the cheat sheet from the webinar – with the BUY-rated Industrial stocks we highlighted during the webinar.

Last week featured a strong move higher for stocks, but the basis for much of that move - the reopening of the Strait of Hormuz - was thrown into doubt by geopolitical headlines over the weekend. One thing is for certain: there is no certainty about anything related to the war in Iran. And uncertainty is one of Wall Street's least favorite catalysts. Throw in the now-roaring earnings season, and volatility seems more likely than not. Last week, the Dow Jones Industrial Average gained 3%, the S&P 500 rose 5%, and the Nasdaq was higher by 7%. Year to date, all three indices have reversed and are now in positive territory, with the DJIA up 3%, the S&P higher by 4%, and the Nasdaq ahead by 5%. On the earnings calendar, about 400 companies will report this week. Highlights include General Electric, UnitedHealth Group, RTX Corp, Northrop Grumman, United Airlines, and Intuitive Surgical on Tuesday; Tesla, GE Vernova, Phillip Morris, IBM, Texas Instruments, AT&T, and Boeing on Wednesday; Intel, American Express, Lockheed Martin, and Comcast on Thursday; and Procter & Gamble on Friday. On the economic calendar, it's a fairly light week. Retail sales will be reported on Tuesday and consumer sentiment on Friday. Next week includes a Fed rate meeting. The impact of the war is starting to show up in economic forecasts. In no particular order, regular gas is at an average of $4.12 per gallon; the Atlanta Fed GDPNow forecasts 1.3% GDP growth in the first quarter (down from 3.0% about a month ago); and the Cleveland Fed Inflation Nowcast calls for CPI of 3.6% in April (up from 3.3% in March). Meanwhile, mortgage rates moved lower last week, down seven basis points last week, with the average 30-year fixed-rate mortgage now at 6.30%, according to FreddieMac. The next Federal Open Market Committee (FOMC) meeting is on April 29. Odds are at zero for any change in rats. President Trump's nominee to be the next Fed chairman, Kevin Warsh, continues to his way through the Congressional approval process. Taking a deeper dive into performance so far in 2026, a leading industrialized global stock market index, the ETF EFA, is up 8% year to date. The leading emerging market ETF (EEM) is up 16% year to date. U.S. growth stocks are flat year to date when looking at ETF IWF, while value stocks (IWD) are up 7%. As of the end of last week, crude oil had pulled back from its high of $110 back on April 7 and closed Friday at $83 per barrel, up 43% for the year to date. As discussed above, that is likely to swing wildly based on news out of the Middle East. In other asset classes for the year to date, AGG bonds are flat, gold is up 11%, and Bitcoin is down 12%. The U.S. dollar is flat, tracking DXY. The VIX Volatility Index was about 17 on Friday, below its historical average of 20. Turning to sector performance and using the State Street SPDRs, the list from first to worst so far in 2026 is Energy (+24%), Materials (+15%), Industrials (+12%), Real Estate (+9%), Utilities (+8%), Information Technology (+7%), Consumer Staples (+6%), Communication Services (+1%), Consumer Discretionary (+1%), Healthcare (-4%), and Financials (-4%). By comparison, the S&P 500 is up 4% year to date.

J.B. Hunt Transport Services, based in Arkansas, provides surface transportation, delivery and logistic services throughout the U.S. and to destinations in Canada and Mexico. The company has approximately 35,000 employees. JBHT shares are a component of the S&P 500.

J.B. Hunt Transport Services ranks among the top surface transportation companies in North America by revenue. Its primary operating segments are intermodal delivery, which uses the Class I rail carriers for the underlying line-haul movement of its owned containers (48% of sales), dedicated trucking services that provide customer-specific fleet needs (27%), for-hire truckload (6%), heavy goods final-mile delivery (7%), and asset-light truck brokerage (12%).