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The Dow Jones Industrial Average turned its frown upside down after the minutes from the Federal Reserve's May 2 meeting were released. In today's After the Bell, we... 
•...give thanks to the Fed for taking the focus off of trade;
•...explain why Tiffany (TIF) soared nearly 25%;
•...and pity Hewlett Packard Enterprise (HPE) for its 11% tumble.

A Little Help From the Fed

A plague of worries had stocks trading lower this morning. And then along came the Fed.

As we noted earlier today, there was enough bad news out overnight to qualify as a minor nightmare. European and Japanese PMIs disappointed, another sign that the rate of global growth is slowing. Italy's bond yields were rising. Turkey's lira was tumbling, until that nation's central bank suddenly hiked rates, causing it to rally. And earnings from Target (TGT) seemed to suggest that yesterday's retail rout might not be a one-off.

And then the minutes from the Fed's May 2 meeting were released. We're not big believers in any single event dragging stocks up or down—too often it's the case of us forcing the market into a narrative. But a look at the chart does suggest that the Dow, which had been range-bound for much of the day, found it's fighting spirit right at 2:00 p.m., when the minutes became available. And it wasn't just stocks that started moving: The 10-year Treasury yield chose that moment to reverse course and head lower.

Why did equities rally? Rafiki Capital's Steven Englander notes that the Fed suggested it doesn't want to tighten monetary policy so much that it ends the economic recovery, and it doesn't mind being behind the curve as inflation rises. "[They] are making a friendly comment on equities," he explains. "Strong expansion, not too much inflation, Fed not standing in the way."

And that's about as bullish as you can hope for from a tightening Fed. S&P 500: +0.3% to 2733.29
Dow 30: +52.40 points, or 0.2%, to 24,886.81
Nasdaq: +0.6% to 7425.96
Vix: -4% to 12.69
10-year Treasury Yield: -0.06 percentage point to 3%

The Hot Stock: Tiffany Shines

Tiffany (TIF) shot to the top of the S&P 500 thanks to its beat-and-raise  first-quarter earnings.

The luxury retailer gained $23.81, or 23.3%, to $126.05.

Tiffany reported a strong quarter, with analysts welcoming strong sales and ongoing product innovation.

Keybanc Capital Markets’ Edward Yruma reiterated an Overweight rating and $120 price target on the shares. (The stock moved so sharply today that bulls will have to up their targets if they want to stay ahead of the stock.) He writes that “Overall sales increased (+15%) on a +10% comparable sales. The first-quarter reported comp was driven by increases across regions, including a sequential improvement in the Americas (+9%), a +14% increase in both Asia-Pacific and Japan and a +2% increase in Europe. Trends in the Americas were driven by higher spending by both local customers and foreign tourists.”

The shares are up 21.3% this year, and have risen 34.6% in the past 12 months. —Teresa Rivas The S&P 500's Top 5

Tiffany (TIF): 23%
Ralph Lauren (RL): 14%
Lowe’s (LOW): 10%
Advance Auto Parts (AAP):  6.9%
Nordstrom (JWN): 4%

The Biggest Loser: Hewlett Packard Enterprise Tumbles

Hewlett Packard Enterprise (HPE) slid to the bottom of the index, following its second-quarter earnings.

Hewlett Packard lost $1.83, or 10.5%, to $15.58.

Although the tech giant delivered a modest quarterly beat, investors were more concerned about the cash flow, which was weaker than some would have liked.

Still, some analysts are still keeping the faith. Oppenheimer’s George Iwanyc reiterated an Outperform rating and a $20 price target on the shares. “Overall, we believe that the quarter validated our view that HPE's strategy is delivering improved fundamentals. We believe sustained improvement in FY2H18 could help convince investors that the FY1H18 improvement was not purely due to easy comparisons/favorable FX, which we believe could lead to upside in shares as sentiment improves.” Sure.

The stock is up 8.5% year to date, and has risen 6.9% in the past 12 months. —T.R. The S&P 500's Bottom 5

Hewlett Packard Enterprise (HPE): -11%
General Electric (GE): -7.3%
Target (TGT): -5.7%
Xilinx (XLNX): -4.2%
Omnicom Group (OMN): -4% After the Bell: Dow Gains 52 Points as Fed Frightens No One


