Wall Street pushes to more records as profits keep piling up for US companies

NEW YORK (AP) — The U.S. stock market is pushing to more records Thursday as companies like Dollar Tree, Snowflake and Hormel Foods keep piling up profits. That's even as oil prices continue to swing and more data shows pressure building on the economy because of the war with Iran.

The S&P 500 added 0.5% to its all-time high set the day before after drifting between small gains and losses earlier in the morning. The Dow Jones Industrial Average was down 10 points, or less than 0.1%, as of 1:26 p.m. Eastern time, and the Nasdaq composite was 0.8% higher after both indexes also set records the day before.

Even with worries about expensive oil and high inflation, the U.S. stock market has run to records largely because U.S. companies keep making more money. Stock prices tend to follow the path of corporate profits over the long term, and companies have been routinely topping analysts' expectations for the first three months of 2026.

Dollar Tree’s stock soared 19% after it became the latest to report fatter profit than analysts expected. CEO Mike Creedon said improved store conditions helped the retailer make more profit off each $1 in sales during the latest quarter despite tariffs adding to its costs. The company also gave a forecast for profit over the full year that topped analysts’ expectations.

Kohl’s rallied 18.9% after the retailer reported better results for the latest quarter than analysts had feared, while Best Buy climbed 18% following its own better-than-expected profit report. Hormel Foods climbed 13.1% after a strong performance for its Jennie-O ground turkey and exports of its Spam luncheon meat helped it report a better profit than analysts expected.

Snowflake rose 38.8% after saying artificial intelligence continues to be a strong driver of its business, and profit and revenue for the latest quarter exceeded expectations.

They helped offset a dip for Marvell Technology, which fell 3.1% after its profit for the latest quarter only matched analysts' expectations. It also said AI is driving big revenue growth for it, particularly its data center business.

In the oil market, prices ticked higher following their latest U-turns. The price for a barrel of benchmark U.S. crude oil rose 0.4% to $89.04, but only after bouncing between $87 and $92. It's been swinging as hopes rise and fall that the United States and Iran may reach a deal to reopen the Strait of Hormuz and get oil flowing again from the Persian Gulf to customers worldwide.

The latest threat to the ceasefire in the war came after U.S. Central Command said Kuwait had intercepted missiles launched by Iran late Wednesday night. That followed earlier “defensive” strikes by the U.S. military on missile launch sites and minelaying boats in southern Iran.

In the bond market, Treasury yields eased after a report said the measure of inflation that the Federal Reserve likes to use accelerated last month but was roughly within economists’ expectations.

The yield on the 10-year Treasury fell to 4.46% from 4.48% late Wednesday after giving up an earlier gain.

Data also showed how U.S. households are less able to save money, with the personal savings rate down to a four-year low of 2.6%, “pointing up the financial pressure on lower- and middle-income families,” according to Gary Schlossberg, global strategist at Wells Fargo Investment Institute.

U.S. households have been saying they’re feeling discouraged about the economy and inflation, even as the stock market keeps chugging along.

High yields in bond markets worldwide recently have threatened to slow economies and undercut prices for stocks and all kinds of other investments. High yields have already forced the average long-term U.S. mortgage rate to its most expensive level since last summer, and they could curtail companies’ borrowing to build the AI data centers that have supported the U.S. economy’s growth recently.

A report on Thursday said the pace of sales of new U.S. homes unexpectedly slowed last month, as the weight of higher mortgage rates hurts the market.

In stock markets abroad, indexes dipped across much of Europe and Asia. Hong Kong’s Hang Seng fell 1.3% for one of the world’s larger losses.

AP Business Writer Elaine Kurtenbach contributed to this report.

Trader Robert Arciero works on the floor of the New York Stock Exchange, Friday, May 22, 2026. (AP Photo/Richard Drew)

A person looks at an electronic stock board showing Japan's Nikkei index at a securities firm Monday, May 25, 2026, in Tokyo. (AP Photo/Eugene Hoshiko)

FILE - A person stands in front of an electronic stock board showing Japan's Nikkei index, seen through the glass wall of an office building in Tokyo, May 7, 2026. (AP Photo/Eugene Hoshiko, File)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI), top center, and the foreign exchange rate between U.S. dollar and South Korean won, top left, at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Thursday, May 28, 2026. (AP Photo/Ahn Young-joon)

A currency trader watches monitors near a screen showing the Korea Composite Stock Price Index (KOSPI), top center, and the foreign exchange rate between U.S. dollar and South Korean won, top left, at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Thursday, May 28, 2026. (AP Photo/Ahn Young-joon)

Asia markets index of Japan, South Korea and Australia is seen on a screen at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Thursday, May 28, 2026. (AP Photo/Ahn Young-joon)

MINNEAPOLIS (AP) — In a city that often seems to be staggering from one crisis to the next, the sudden resignation of police Chief Brian O’Hara after a finding he likely interfered in a misconduct investigation has left Minneapolis searching again for a way forward.

O’Hara was an outsider brought in with a mandate to reform the police department after the 2020 killing of George Floyd, which led to federal and state investigative findings of excessive force and racist policing practices. O’Hara had spent most of his career in Newark, New Jersey, where he instituted changes after that department was put under a federal consent decree for patterns of excessive force and unconstitutional stops and searches.

The challenges in Minneapolis were clear before O'Hara arrived in late 2022. For a time, it had seemed the department itself might not survive. In 2021, more than 43% of voters supported disbanding the department as the city reeled from Floyd’s killing and the massive protests and widespread rioting that followed.

Policing experts had noted the monumental task that faced the city’s next police chief, who would have to rebuild community trust and a department whose morale had dipped so low that it was hemorrhaging officers.

“I don’t think there was a bigger challenge to any American city than what Minneapolis faced when he arrived,” said Chuck Wexler, executive director of a Washington think tank, the Police Executive Research Forum. “They had gone from 850 to 500 officers, violent crime was significantly up, trust with the community was broken, a police station had burned down and a federal consent decree would face the next chief. Then you had the politics of Minneapolis.”

Coming in as an outsider to lead a large department is daunting, even without being asked to reform and rebuild, said Renée Hall, president of the National Organization of Black Law Enforcement Executives who moved from Detroit to lead the Dallas Police Department from 2017 to 2020.

“It’s extremely challenging to walk into an organization, where you don’t even know where the light switches are, where the bathrooms are. And that’s just the basics,” Hall said. “You have to learn the officers, the community, the politics of that particular city, and try to learn and navigate the existing relationships, like unions or officer associations and who is tied to whom and who is fighting for whom.”

Hall said outside hires can face resentment from those within an organization who supported internal candidates. They also have to earn the trust of the community, which she said takes time.

After the police disbandment measure failed, O'Hara joined the bureaucracy of a deeply progressive city that is regularly buffeted by political battles between the mayor and the City Council, and among council members.

Those battles were on full display Wednesday, when a City Council news conference about O'Hara's resignation quickly turned into an opportunity for the council's resolute progressives to attack Mayor Jacob Frey, who has long portrayed himself as a “pragmatic progressive.”

The resignation “is a symptom of a much larger problem, which is simply that Mayor Frey continues to be unable to effectively manage the Minneapolis Police Department,” said Council member Robin Wonsley, a cornerstone of the council's progressive bloc.

Frey, who just weeks ago pushed to have O'Hara reappointed as chief, fired back at criticism that he didn’t move aggressively enough when allegations of the chief's potential misconduct emerged.

“I don’t make decisions based on rumors and anonymous complaints,” he said in a statement, adding that he would work with the council to find a replacement. “I took action promptly after receiving the investigative report. … Decisions this serious have to be grounded in facts, evidence and completed investigations. Anything less would be irresponsible.”

O'Hara did not return a message seeking comment Wednesday. His attorney, Doug Kelley, released a statement touting successes during O'Hara's tenure, including diversifying and increasing the department's ranks, the decreasing violent crime rate and mitigating violent clashes during the immigration crackdown.

“The circumstances of Chief O’Hara’s departure should not define his service," Kelley wrote. "He was proud to serve Minneapolis, remains grateful to the officers and community partners who did difficult work under extraordinary pressure, and hopes the city continues moving forward. He understandably looks forward to returning to his young family in New Jersey.”

The resignation came just months after Minneapolis was plunged into the national spotlight amid a federal immigration surge that left three civilians shot, two fatally. O'Hara faced criticism he hadn't done enough to stop the crackdown.

Violence plagued the city in 2025, including deadly attacks on state politicians in the Minneapolis suburbs; gunfire that erupted at a popular city picnic spot; and a shooting during Mass at the Church of the Annunciation that left two children dead and more than a dozen people injured. O’Hara called the church attack a “ truly unthinkable tragedy. ”

Critics say dozens of complaints were filed against O'Hara, from accusations that he was rude to the public to the recent investigation into an ultimately unproven allegation he had a sexual relationship with a city employee. Most of the complaints have not been made public, and 17 complaints are still being investigated. Investigators closed 17 more without any disciplinary actions.

An independent investigator did not find evidence to substantiate the alleged sexual relationship with a city employee, but a second report released this week said O'Hara likely deleted the employee's contact from his phone during the investigation and that he talked to another employee about the probe despite being told it was not to be discussed.

That recent report led to a written reprimand; Frey told O'Hara he would be disciplined and that he could be terminated. Frey said O'Hara chose to resign instead.

Lauer reported from Philadelphia.

Minneapolis City Council Members, from left, Jason Chavez, Robin Wonsley and Council President Elliot Payne speak to reporters about the resignation of Police Chief Brian O'Hara on Wednesday, May 27, 2026 at City Hall in Minneapolis. (AP Photo/Mark Vancleave)

FILE - Minneapolis Police Chief Brian O'Hara speaks during a news conference, Jan. 10, 2026, in Minneapolis. (AP Photo/Jen Golbeck, File)