Warsh Dodges Questions, Peace Talks Stall, and the Market Runs Out of Patience

Tuesday had two stories running at once. The geopolitical track: JD Vance's Iran trip paused, Trump saying bomb or deal. The earnings track: UnitedHealth up, Amazon up, and Kevin Warsh spending two and a half hours in the Senate without saying or promising much of anything.

Today's edition covers both tracks completely.

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Stocks retreated Tuesday as investors grew nervous about Wednesday's ceasefire expiration: JD Vance's planned trip to join Iran negotiations was paused after Tehran showed a lack of commitment, oil jumped 4% to above $93 per barrel, and Trump told CNBC he expects a deal, but the military is ready to act if the deadline passes.

Earnings provided offsetting momentum: UnitedHealth beat by 66 cents and raised full-year guidance, driving an 8% surge, while Amazon jumped 3% after announcing it will invest up to $25 billion in Anthropic as part of an expanded AI infrastructure agreement.

Honeywell International (NASDAQ: HON) has struck a deal with Dangote to expand petrochemical production in Nigeria, and this is a lot bigger than a routine industrial contract. The company is embedding its technology within a large complex that is expanding beyond fuels into products tied to everyday manufacturing demand.

One Foot in the Door, Then the Whole Building

This is the kind of deal that grows legs over time. Once Honeywell’s systems are built into a project this large, it becomes much easier for the company to stay involved through upgrades, expansion phases, and long-term support work.

The first contract matters, but the follow-on business is usually where the real advantage starts to build.

More Than a Refinery Story Now

This move pushes Honeywell beyond the fuel side of the site and into materials used for plastics and detergents. That gives the company a wider role in the industrial chain and makes the relationship more valuable over time.

That should change your view of the company. Honeywell is not just selling tools here; it is embedding itself deeper into a manufacturing ecosystem.

Honeywell does not need flashy headlines to strengthen its position. It keeps attaching itself to large, sticky projects in markets where demand is still being built, and you can see how that creates staying power that compounds over time.

PepsiCo (NASDAQ: PEP) just lost a long-standing bottling and distribution partner in Northern Europe, and the ripple effects could stretch further than expected. Royal Unibrew confirmed it will not renew its licensing agreement when it expires in 2028, ending a relationship that helped Pepsi products reach multiple regional markets.

The timing matters because this comes during a period when global beverage competition is intensifying. PepsiCo is not just dealing with rivals on shelves; it is also dealing with partners reassessing their own long-term strategies.

The Distribution Model Just Took a Hit

PepsiCo relies heavily on regional partners to produce, market, and distribute its drinks efficiently. Losing Royal Unibrew means one less established operator handling that workload, which creates a gap that needs to be filled or rebuilt internally.

Replacing that capacity is not instant. PepsiCo will either need to find new partners or invest more directly, both of which take time and resources to execute properly.

What Happens Next Matters More Than the Breakup

The real story is how PepsiCo responds. It can rebuild distribution through new alliances, double down on existing partners, or gradually increase its direct presence in key markets. Each path comes with trade-offs between speed, cost, and control.

What is clear is that this is not just a local change. You could see PepsiCo quietly adjust its European strategy as a result, because when one major partner walks away, it forces a reassessment of how durable the entire system really is.

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Hims & Hers Health (NYSE: HIMS) just ran into the kind of competition that can reshape an entire business model. Amazon is rolling out a weight management program through One Medical that includes GLP-1 drugs, doctor access, and pharmacy delivery, with pricing starting around $149 a month for some options.

Amazon Is Playing a Completely Different Game

Hims & Hers built its rise by making weight loss simple, fast, and easily accessible online. Amazon is now bundling medical care, prescriptions, and delivery into a single system, raising the bar for what customers expect.

You are no longer comparing similar telehealth apps; you are comparing convenience against a full healthcare experience that handles everything in one place.

The GLP-1 Shortcut Is Not Enough Anymore

Hims & Hers leaned heavily on compounded GLP-1 treatments to drive early growth. That strategy worked until regulators and drugmakers started pushing back, forcing the company to pivot toward branded, FDA-approved drugs.

The problem is that those drugs are widely available, which removes the edge that once made Hims stand out. That makes differentiation much harder in a space that is quickly getting crowded.

Hims & Hers has to prove it can build a lasting healthcare platform while bigger players enter the space. You can already see the shift: this is no longer a growth story; it is a durability test.

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Velo3D [VELO] $15.21 (+31.25%)

Velo3D announced a partnership with Andretti Performance as the official additive manufacturing technology provider for two 2026 IMSA Michelin Pilot Challenge events.

For a company that also holds a $9.8M defense contract from the Department of War and guides for $60-70M in 2026 revenue with EBITDA breakeven in the second half, the motorsport partnership adds commercial visibility in exactly the aerospace-grade applications that define its market.

Mobilicom [MOB] $6.10 (+18.59%)

Mobilicom provides cybersecurity and communication solutions for unmanned systems, including drones, robotics, and autonomous vehicles, with customers in defense and commercial markets across the U.S., Israel, and Europe.

The drone sector continues running on the combination of defense spending momentum and the sustained chip sector rally, and Mobilicom's NDAA-compliant positioning makes it a natural beneficiary as U.S. defense contractors accelerate domestic drone infrastructure procurement. Volume ran at 2.53x average.

Armata Pharmaceuticals [ARMP] $14.75 (+18.32%)

Armata is the first and only bacteriophage company to advance a clinical candidate to Phase 3, with AP-SA02 heading into a pivotal trial for Staphylococcus aureus bacteremia.

The FDA granted AP-SA02 both Breakthrough Therapy designation and QIDP status in February 2026, adding five years of market exclusivity to the approval pathway. The stock ran on continued biotech sector momentum and growing institutional attention to phage therapy as antibiotic resistance becomes a global crisis.

Allbirds [BIRD] $8.50 (-22.87%)

Allbirds is retracing its 655% AI rebrand surge from April 15, when the company announced it would pivot from sneakers to AI compute infrastructure as NewBird AI. The shareholder vote to formally approve the transformation is not until May 18, and no anchor tenants or revenue have been announced.

The stock is giving back the speculative premium that built up ahead of formal approval, settling toward a level that reflects actual business reality rather than pivot enthusiasm.

WeShop Holdings [WSHP] $10.26 (-21.87%)

WeShop is a social commerce platform for consumer brands that had run on momentum earlier in April, with no analyst coverage and no fundamental anchor.

Tuesday's 17% reversal on volume at just 0.10x average confirms the move is a liquidity exit: there are more sellers than buyers and no institutional bid to absorb the supply. With no rating, no earnings catalyst, and no new news, this is pure momentum retracement from an overcrowded trade.

Washington Trust [WASH] $30.00 (-16.90%)

Washington Trust reported Q1 2026 EPS of $0.66, missing the $0.83 from Q4 2025, with nonaccrual loans tripling quarter-over-quarter from $12.9 million to $40.4 million, driven by two commercial real estate office loans placed on nonaccrual status.

The $4 million credit loss provision, up from $600K the prior quarter, confirms the deterioration is real and not seasonal. For a regional bank dependent on CRE lending, the office loan problem is the story, and investors repriced it immediately.

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That's it for today! Please, write us back, and let us know what you think of the Closing Bell Roundup. We're always eager to hear feedback!

Thanks for reading. I'll see you at the next open! 

Best Regards,
— Adam G.
Elite Trade Club

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