Who's on Trump's shortlist for Jerome Powell's replacement at The Fed
In 12 months' time a different hand will be guiding the Federal Reserve. Chairman Jerome Powell is due to stand down in May of next year. Different—not new—because some of the candidates President Trump may be eyeing for nomination are already well-known figures in regional and central banking.
The shortlist is getting narrower as the timeline for a nomination announcement draws closer. Last month the president said he would confirm his decision 'very soon,' potentially in a bid to shift attention toward the incoming Fed chairman and away from Powell.
This week Trump has also dropped another crumb for spectators: Treasury Secretary Scott Bessent won't be moving over to the Fed.
Bessent's name had been circulating for the role courtesy of his background and close relationship to the president. But yesterday Trump told CNBC: 'I love Scott, but he wants to stay where he is. I asked him just last night, 'Is this something you want?' [Bessent said], 'Nope, I want to stay where I am. He actually said, 'I want to work with you.' It's such an honor. I said, 'That's very nice. I appreciate that.''
Bessent has been clear that he wanted to remain at the Treasury but would go where the president asked him to, saying earlier this year that he had the 'best job' in Washington and 'would like to stay in my seat through 2029.'
With Bessent removing himself from contention, Trump confirmed he now has four names in mind as potential successors to lead the Federal Open Market Committee. The Oval Office has also made at least one of the criteria clear: The next Fed chairman must be more willing to cut rates.
Option 1: Kevin Warsh
A former member of the Board of Governors at the Fed, Warsh has been seen as a frontrunner for Fed chairman since President Trump took office. Warsh served on the board between 2006 to 2011, acting as administrative governor managing and overseeing the group's operations, personnel, and financial performance.
Trump has already talked warmly of Warsh, telling reporters on Air Force One last month that Warsh is 'very highly thought of.'
Warsh, currently a visiting fellow in economics at the Hoover Institution and a lecturer at the Stanford Graduate School of Business, is bullish on the American economy and has supported calls that Trump 2.0 could usher in a golden era for the nation.
The White House might also like some of the criticism Warsh has leveled at the Fed's current thinking. Warsh told CNBC a few weeks ago that if he were the president a chief concern would be a Federal Reserve which doesn't recognize the upsides in economic data.
'What I'd be worried about is a central bank that doesn't see any of that. A central bank that is stuck with models from 1978, governance from a prior period, and [doesn't] recognize we could be at the front end of a productivity boom,' Warsh said. 'If I were the president, I'd be worried that [the Fed] might not see it and they might think economic growth is somehow going to be inflationary.'
For many years, Warsh has also called for a 'regime change' at the Fed, and argued: 'it's not just about a person, it's about an approach to economics … I'm troubled when I see them moving the goalposts. It is very puzzling to me, how you could think that we should do an emergency rate just last September and now all of a sudden you stand there like a hawk. That's not good for the institution, I don't think it's good for the economy to be changing the goalposts like that.'
Potentially a mark against Warsh's name is that he has some characteristics of a hawk—those who would keep the base rate higher in order to keep inflation low. In a conversation with the Hoover Institute earlier this month, for example, he outlined price stability is at the core of restoring Fed credibility.
To this end, wrote ING in a note to clients this morning, 'Warsh stands out as the most USD-friendly candidate at this stage … We could see the dollar gain support on his nomination.'
Option 2: Kevin Hassett
Warsh isn't even the only Kevin in contention, Trump revealed. Yesterday he said: 'Both Kevins are very good, and there are other people that are very good, too.'
Leading in the polls at present is Kevin Hassett, currently serving as Director of the National Economic Council. Per prediction market Kalshi, Hassett is being priced with a 41% chance of winning the nomination, while Warsh sits at 29%.
Hassett has been an integral figure in Trump 2.0 thus far, supporting on everything from trade deals under the new tariff regime to speaking with House members about key legislation like the 'One Big, Beautiful Bill Act'.
This very fact may prove to be the reason Trump may steer away from nominating Hassett: It may raise questions about the independence of the Fed.
Despite wanting a friendly face at the head of the FOMC, the White House will be mindful of the fact that the autonomy of the central bank is a fundamental strength of the economy. Trump already learned the hard way how markets react to perceived threats against this independence, after he was forced to walk back a threat to fire Powell and the markets revolted.
Questions of transparency and independence have been rife over the past week after President Trump dismissed the chief of the Bureau of Labor Statistics (BLS) following surprise and significant revisions to labor data reporting. Asked about how he would address such criticisms, Hassett said: 'I'm an economist, I'm not a politician. But when politicians look at numbers that make them wonder, then that suggests there needs to be more transparency.'
In a note overnight, Goldman Sachs suggested that further hints about the next chairman could come in the form of a replacement for Fed Governor Adriana Kugler, who resigned last week. Chief U.S. economist, Jan Hatzius, wrote: 'If confirmed very quickly, the new governor might be able to participate in the September 16-17 FOMC meeting. This would likely add further support for rate cuts following last week's two dissents in favor of cuts from Governor Waller and Vice Chair for Supervision Bowman.
'The choice is particularly important because the new governor could well take over leadership of the FOMC from Chair Powell.'
Option 3: Christopher Waller
Governor Waller was a nomination of President Trump's in 2020, in a term ending in 2030, already marking him as an individual who has earned the notice and respect of the current White House.
But in more recent months, Waller has raised eyebrows as potentially auditioning for the role of Fed chairman. Notably, he was one of two members who dissented against the recent FOMC decision not to cut the base rate from its current level of 4.25 to 4.5%.
As UBS's Paul Donovan wrote late last week: 'Investors are bound to suspect that the rationale amounted to little more than an excited jumping up and down and shouting 'pick me, pick me' in the general direction of the White House.'
Waller has lobbied for a rate cut for some time, and hinted that he would like to see a quicker turnaround on when that action may take place. Yet even this has led economists to question whether the governor is a true advocate of a reduction, or is seeking to publicly appeal to the president for the role.
As Jeremy Siegel, emeritus professor of finance at the Wharton School of the University of Pennsylvania, wrote for WisdomTree, where he is a senior economist, last month: 'Chris Waller argued … for a potential July rate cut. Is he auditioning to be Powell's replacement? I agree with Waller, we're too far above the neutral rate with tariffs coming.'
Option 4: Relative outliers
Elsewhere President Trump could look to FOMC member Michelle Bowman as a potential candidate, for she too dissented against the Fed's decision to hold rates.
Bowman, vice chair of supervision at the Fed, justified her stance with: 'Inflation has moved considerably closer to our target, after excluding temporary effects from tariffs, and the labor market remains near full employment. With economic growth slowing this year and signs of a less dynamic labor market, I saw it as appropriate to begin gradually moving our moderately restrictive policy stance toward a neutral setting.'
'In my view, this action would have proactively hedged against a further weakening in the economy and the risk of damage to the labor market.'
And more widely, economist Judy Shelton's name has also been floated. Shelton was, after all, a Trump nomination to the Fed during his first term but did not receive congressional backing to make it to the board.
At the time many expressed concern about how closely Shelton's economic analysis was aligned to the president's—including calls for a larger-than expected cut to rates—and questioned how highly she valued central bank independence.
Since then, Shelton has lobbied for the inflation target (currently set to 2%) to be lowered to zero in order to 'make life much less complicated for all of us who have to use the dollar and constantly express things in terms of inflation adjusted.'
This story was originally featured on Fortune.com
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
18 minutes ago
- Yahoo
Stock market today: Dow rises, S&P 500, Nasdaq slide as tech stocks slip again amid rate-cut uncertainty
US stocks mostly slid on Wednesday, continuing a bruising stretch for tech stocks as investors weighed the latest retail earnings and assessed Federal Reserve minutes for clues on interest-rate cuts. The Dow Jones Industrial Average (^DJI) closed slightly higher, while the S&P 500 (^GSPC) slipped 0.2%. The tech-heavy Nasdaq Composite (^IXIC) led the losses, declining about 0.7%. The Nasdaq had been down nearly 2% earlier in the session before recovering. After a nearly 10% drop on Tuesday, Palantir (PLTR) fell another 1% in afternoon trade after slipping as much as 9% earlier in the day. The tech-led sell-off has put markets on edge, as investors rotate out of riskier stocks into previously lagging sectors amid concerns about the AI boom's staying power. Meanwhile, Wednesday's release of minutes from the Fed's July meeting showed the two policymakers who voted against the decision to leave rates unchanged appeared largely alone in that opinion. Investors are eager for a sense of where policymakers stand on interest rate cuts after economic data this month revealed they face a tricky dilemma between a weakening labor market and stubborn inflation. Attention is also on the latest batch of big retail earnings, with Target's (TGT) results the highlight on Wednesday. Target eked out a profit beat and held to its guidance, but pressures from tariffs and a squeezed consumer added up to another downbeat quarter — and will pose challenges for newly announced CEO Michael Fiddelke. Its shares sank 6%. Next up are Walmart (WMT) earnings on Thursday, watched for further signs of how companies and consumers are handing President Trump's tariffs. Read more: The latest on Trump's tariffs The main event for Wall Street lands on Friday, when Federal Reserve Chair Jerome Powell will deliver remarks at the Jackson Hole symposium in Wyoming. Tech, chip stock sell-off continues as AI bubble fears mount Yahoo Finance's Laura Bratton reports: Tech stocks fell for a second day on Wednesday as investors sold off a slew of tech names amid concerns over the sustainability of the AI boom and a recent market rotation away from some of this year's biggest winners. Among the Magnificent Seven Big Tech stocks, Nvidia (NVDA) was down about 0.3%, and Alphabet (GOOGL, GOOG) stock fell more than 1%. Amazon (AMZN) and Apple (AAPL), shares fell over 1%. Chip stocks Advanced Micro Devices (AMD) and Broadcom (AVGO) both fell less than 1%; Micron (MU) shares plummeted nearly 4%. Read more here. Retail traders double down on Palantir despite recent stock slide Palantir (PLTR) shares dropped another 1% on Wednesday following a sharp 9% slide on Tuesday. But retail investors saw the drop as a buying opportunity. According to data provided to Yahoo Finance from Vanda Research, small investors poured over $59 million into Palantir during Tuesday's sell-off, marking the biggest single-day retail inflow in a week. That came on top of another $40 million in inflows the day before. The surge in retail demand highlights a classic 'buy the dip' mentality that has dominated markets since the April bottom. In the days leading up to the sell-off, retail flows had been steady but more modest, averaging in the $20 to $30 million range, according to Vanda. The jump in activity suggests everyday traders were not scared off by the stock's sudden slide. Instead, they leaned in. But even with retail piling in, the stock still fell hard. That divergence underscores a familiar market reality: while retail can be a powerful force, institutional selling pressure often sets the tone. "Retail has gotten to be such a huge percentage of the market in terms of day-to-day trading," Interactive Brokers chief strategist Steve Sosnick told Yahoo Finance on Wednesday. "But if a series of institutions decide to reallocate their portfolio holdings, you're standing in the way of a much larger piece of momentum." "Collectively, a whole lot of small traders can push back, but if [institutions] are relentless about the selling, that's going to move the market lower.' Sosnick called Palantir's 9% plunge a 'shocking move down,' but also pointed out that the stock's meteoric rise has left it trading at "about as expensive of a stock as we've seen." James Hardie stock collapses 35% as US housing slump hits building materials Yahoo Finance's Ines Ferre reports: James Hardie (JHX) stock tumbled 35% on Wednesday as the maker of high-end home siding pointed to a weak US housing market and homeowners reluctant to spend on big projects. The stock, listed in the US and Australia, saw its biggest one-day drop since 1973, according to Bloomberg data. The company's profit declined 28% year over year during its fiscal first quarter. Net sales tumbled 9% over the same period. "Uncertainty is a common thread throughout conversations with customer and contractor partners," CEO Aaron Erter said during the company's earnings call. James Hardie pointed to "softer demand," citing a slowdown in single-family construction activity, especially in the southern part of the US. Read more here. Fed minutes show majority of officials more concerned about inflation than employment Minutes from the Federal Reserve's July meeting showed the "majority" of officials were more concerned about the upside risk to inflation than downside risks to the Fed's mandate for maximum employment. "Regarding upside risks to inflation, participants pointed to the uncertain effects of tariffs and the possibility of inflation expectations becoming unanchored," the minutes read. "In addition to tariff-induced risks, potential downside risks to employment mentioned by participants included a possible tightening of financial conditions due to a rise in risk premiums, a more substantial deterioration in the housing market, and the risk that the increased use of AI in the workplace may lower employment." Read more about the Fed minutes here. Eight sectors are outperforming the S&P 500 on Wednesday Citi head of US equity trading strategy Stuart Kaiser noted on Tuesday that the recent pain the stock market has "remained localized." And that's holding true on Wednesday too despite a roughly 1% decline in the Nasdaq Composite. The pain is mostly in technology and other related areas of the market with eight of 11 sectors in the S&P 500 (^GSPC)outperforming the benchmark index. While the size of tech in the index is pulling down the overall S&P 500 there are actually still 265 stocks in positive territory with a little over two hours left in the trading session. For now the rotation in the market isn't shaking a bullish stance from Kaiser who remains positive on US equities with a "quality preference." Below is a look at the sector action thus far in Wednesday's trade. Google unveils latest Pixel phones, including foldable Pixel 10 Pro Fold Yahoo Finance's Dan Howley reports: Google (GOOG, GOOGL) announced its latest line of Pixel smartphones on Wednesday as part of its Made By Google event in New York City on Wednesday. The Pixel 10 lineup includes four phones: the Pixel 10, Pixel 10 Pro, Pixel 10 Pro XL, and Pixel 10 Pro Fold. The company also showed off its newest smartwatch, the Pixel Watch 4. The devices get Google's latest Gemini AI capabilities, including the company's new Magic Cue for its smartphones and enhanced smart replies for the watch. Starting at $799, the entry-level Pixel 10 now comes with three rear cameras, up from two. That includes a 5x telephoto camera. Inside, the 6.3-inch phone gets Google's latest Tensor G5 processor, 12GB of RAM, and upwards of 256GB of storage. The Pixel 10 Pro starts at $999 and gets a sharper 6.3-inch display and more-advanced triple-camera setup. And while the phone packs the same Tensor G5 processor as the standard Pixel 10, the Pro sports 16GB of RAM rather than 12GB and offers up to 512GB of storage. Read more here. Hertz stock jumps on deal to sell its used cars on Amazon Yahoo Finance's Pras Subramanian reports: Rental car firm Hertz (HTZ) struck a deal with Amazon Autos (AMZN) on Wednesday to sell some of its used car inventory. The company said this will make it easier for customers to purchase cars from its fleet. Starting today, customers can search Amazon Autos to browse, finance, and purchase from thousands of used Hertz fleet vehicles from brands like Ford, Toyota, Chevrolet, Nissan, and others. Hertz Car Sales, the rental car firm's used car sales arm, will be the first fleet dealer on Amazon Autos. Hertz said sales will begin in the Dallas, Houston, Los Angeles, and Seattle metro areas, with plans to expand to Hertz Car Sales' 45 locations nationwide. After customers complete their purchase online, they can pick up the vehicles at Hertz locations in those cities. Read more here. KeyBanc warns China headwinds could prompt an Nvidia earnings miss Yahoo Finance's Francisco Velasquez reports: Read more here. Big Tech is getting hammered again Tuesday's market action was all about isolated selling in some of the market's biggest winners. Wednesday's early session has brought more of the same, as Big Tech is clearly leading the selling action once more. After a nearly 10% drop on Tuesday, Palantir (PLTR) fell another 7% in early trade. Meanwhile, AI chip leaders Nvidia (NVDA) and Broadcom (AVGO) each dropped more than 3%. Trump says Fed governor Cook 'must resign' as pressure campaign on central bank continues President Trump on Wednesday called on Federal Reserve Governor Lisa Cook to resign as the public pressure on the central bank continues to build. "Cook must resign, now!!!" Trump wrote on his social media platform Truth Social Wednesday morning with a link to a Bloomberg report on a letter sent by Bill Pulte. The Federal Housing Finance Agency head has reportedly urged Attorney General Pam Bondi to investigate Cook over a pair of mortgages. Pulte wrote in a letter dated Aug. 15 that Cook 'falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraud under the criminal statute.' The President's call for Cook to resign comes as pressure on the Fed continues amid ongoing changes on the Fed's Board of Governors. Read more here. Nasdaq leads indexes lower again at the open US stocks were mixed on Wednesday after a bruising day for tech stocks, as investors weighed the latest retail earnings and waited for Federal Reserve minutes to provide clues to interest rate cuts. The Dow Jones Industrial Average (^DJI) was up about 0.1%, while the S&P 500 (^GSPC) slipped about 0.2%. The tech-heavy Nasdaq Composite (^IXIC) fell roughly 0.4%, after weakness in the likes of Palantir (PLTR) and Nvidia (NVDA) dragged on the broader market on Tuesday. Post-earnings market movers: Target and La-Z-Boy stocks dive, Lowe's rises Here's a look at how Wall Street is reacting to a burst of earnings reports ahead of the opening bell on Wednesday: Target (TGT) stock dived more than 10%, facing its worst sell-off since early April. The retailer cleared a low bar of earnings expectations, but comparable sales continued to fall during the quarter. Lowe's (LOW) stock rose 2.5%. The home improvement retailer reported a return to same-store sales growth, echoing positive results from Home Depot (HD) on Tuesday. Home Depot stock fell 1.3% before the bell. Estée Lauder (EL) shares fell 5%. The beauty company's annual profit forecast disappointed and executives said they expect a $100 million headwind from tariffs. Baidu (BIDU) shares edged 0.2% lower. The Chinese search engine company reported a drop in second quarter revenue as strong growth in cloud services was offset by weakness in its core advertising business. Toll Brothers (TOL) stock added 0.45%. The homebuilder reported an earnings and revenue beat on Tuesday afternoon, though new orders were less than analysts' expected. La-Z-Boy (LZB) stock tanked 20% after the company missed estimates amid soft demand. Sales for its Joybird furniture brand declined 14%. Read more live coverage of corporate earnings here Hertz to sell used cars on Amazon, stock jumps Hertz (HTZ) stock rose over 10% after the car rental company announced it is teaming up with Amazon (AMZN) to sell pre-owned vehicles. Customers will be able to browse Hertz used car sales on Amazon, purchase vehicles online, and then pick them up at select Hertz locations. It will initially be offered in Dallas, Houston, Los Angeles, and Seattle, with plans to expand to 45 locations nationwide. Hertz sells pre-owned cars in addition to renting them out. The company is in the midst of a turnaround, and shares have outperformed this year with a 42% year-to-date rise. Read more here. Intel's advantages from a Trump deal could be worth as much as the money What would it take for Intel (INTC) to turn its business around? Yahoo Finance's Hamza Shaban digs into that question in today's Morning Brief. Read more here. This summer's hottest trend on Wall Street: 'Private for longer' Continuation funds have become hugely popular among America's biggest private fund managers this year. Yahoo Finance's David Hollerith breaks down why, and exactly how they work: Read more here. Palantir stock on track to extend losing streak Palantir stock (PLTR) looks like it may extend its losing streak to six trading days after reaching an all-time high. Shares fell 3% in premarket trading on Wednesday after a 9% decline on Tuesday. Since hitting $186.97 per share on Aug. 12, the stock is now trading around $153, putting it 18% off its record closing high. Investors rotating out of large-cap tech names and a bearish report from short seller Citron Research have weighed on the stock. Read more here. Target stock sinks after earnings eke out a beat, but sales keep falling Target's (TGT) results on Wednesday morning weren't as shockingly bad as for the first quarter, but the retailer is still struggling to find its place in the new economic norm of more discerning shoppers. Shares in the US retail giant sank 10% in premarket trading as the announcement of a new CEO still left investors wanting more. Yahoo Finance's Brian Sozzi reports: Read more here. Good morning. Here's what's happening today. Economic data: FOMC Minutes (July 30-31 meeting); MBA weekly mortgage applications Earnings: Target (TGT), Baidu (BIDU), Lowe's (LOW), TJX Companies (TJX), Estée Lauder (EL) Here are some of the biggest stories you may have missed overnight and early this morning: Target earnings miss the mark as sales keep falling Target will have a new CEO for the first time since 2014 Intel's Trump deal perks may rival the money Buffett effect still holds as UnitedHealth soars through August This summer's hottest trend on Wall Street: 'Private for longer' US housing warning sparks worst James Hardie selloff since 1973 US treasury chief says status quo with China 'working pretty well' Sales of foreign-branded phones in China down 31.3% in June: Data China exports of key rare-earth EV magnets hit 6-month high Target will have a new CEO... and he will not have it easy Target (TGT) is tapping a homegrown talent as its next CEO at one of the most pivotal moments in its 63-year history. The discounter announced that longtime CEO Brian Cornell's heavily groomed No. 2, Michael Fiddelke, will take over as CEO on Feb. 1, 2026. Cornell, who has been CEO of Target since August 2014, will slide into the executive chair position for an undetermined period of time. Fiddelke joined Target in 2003 as an intern and rose through the ranks to CFO and then COO. "I've had this conversation with the board for a number of years, and I've been in the role for 11 years. I'm going into my 12th now. I will actually turn 67 early next year, and I think it's time for me to step back, recharge, spend a lot more time with my family, a lot fewer nights in hotels, and be a great supporter of Michael and the team for the rest of my life," Cornell told me by video call while sitting next to Fiddelke at the company's Minneapolis headquarters. Fiddelke added, "I bleed Target red after 20 years here, and there's nothing more important to me than working with the incredible team that we have to chart the next chapter for Target. I mean, I've seen us in that 20 years at our best. I've seen us not at our best. When we're at our best, we are pretty darn tough to beat." To students of Target history such as myself, this decision isn't a surprise. For one, Fiddelke has been Cornell's right-hand man for several years now. It has become quite apparent over the past year that he was grooming Fiddelke to take over while also working behind the scenes to get board buy-in. I have gotten to know Fiddelke in recent years. He is a nice fella and has indeed earned the opportunity to sit in the CEO seat. If this was any other time for Target, the decision would probably be celebrated. It's not often an intern at a company becomes its CEO. The only comparable story I can think of is Walmart (WMT) CEO Doug McMillon going from truck loader at the retailer to CEO. But Fiddelke will unlikely have a honeymoon period, seeing as he has been there at Target during its past 24 months of struggles (which includes a weak second quarter). People I have talked to wanted an outsider as Target's next CEO, fresh eyes to come in and fix what is wrong (not unlike when Cornell was brought in back in 2014 — his career was mostly spent at Walmart and PepsiCo (PEP)). Fiddelke will be seen as a continuation of a strategy that hasn't been working. I asked him on the call how candid he plans to be in the early going on the strategy review, which is what all new leaders do. He sounded like he was ready to divert from Cornell's playbook and shake things up. He will have to do just that, and quickly, to win over a likely skeptical Wall Street. US tech stocks hit by concerns over future of AI boom Wall Street is digging into the factors behind this week's selloff in tech stocks, with many seeing it as a timely rotation out of riskier names. There are a few potential triggers, the Financial Times reports: Read more here (premium) Tech, chip stock sell-off continues as AI bubble fears mount Yahoo Finance's Laura Bratton reports: Tech stocks fell for a second day on Wednesday as investors sold off a slew of tech names amid concerns over the sustainability of the AI boom and a recent market rotation away from some of this year's biggest winners. Among the Magnificent Seven Big Tech stocks, Nvidia (NVDA) was down about 0.3%, and Alphabet (GOOGL, GOOG) stock fell more than 1%. Amazon (AMZN) and Apple (AAPL), shares fell over 1%. Chip stocks Advanced Micro Devices (AMD) and Broadcom (AVGO) both fell less than 1%; Micron (MU) shares plummeted nearly 4%. Read more here. Yahoo Finance's Laura Bratton reports: Tech stocks fell for a second day on Wednesday as investors sold off a slew of tech names amid concerns over the sustainability of the AI boom and a recent market rotation away from some of this year's biggest winners. Among the Magnificent Seven Big Tech stocks, Nvidia (NVDA) was down about 0.3%, and Alphabet (GOOGL, GOOG) stock fell more than 1%. Amazon (AMZN) and Apple (AAPL), shares fell over 1%. Chip stocks Advanced Micro Devices (AMD) and Broadcom (AVGO) both fell less than 1%; Micron (MU) shares plummeted nearly 4%. Read more here. Retail traders double down on Palantir despite recent stock slide Palantir (PLTR) shares dropped another 1% on Wednesday following a sharp 9% slide on Tuesday. But retail investors saw the drop as a buying opportunity. According to data provided to Yahoo Finance from Vanda Research, small investors poured over $59 million into Palantir during Tuesday's sell-off, marking the biggest single-day retail inflow in a week. That came on top of another $40 million in inflows the day before. The surge in retail demand highlights a classic 'buy the dip' mentality that has dominated markets since the April bottom. In the days leading up to the sell-off, retail flows had been steady but more modest, averaging in the $20 to $30 million range, according to Vanda. The jump in activity suggests everyday traders were not scared off by the stock's sudden slide. Instead, they leaned in. But even with retail piling in, the stock still fell hard. That divergence underscores a familiar market reality: while retail can be a powerful force, institutional selling pressure often sets the tone. "Retail has gotten to be such a huge percentage of the market in terms of day-to-day trading," Interactive Brokers chief strategist Steve Sosnick told Yahoo Finance on Wednesday. "But if a series of institutions decide to reallocate their portfolio holdings, you're standing in the way of a much larger piece of momentum." "Collectively, a whole lot of small traders can push back, but if [institutions] are relentless about the selling, that's going to move the market lower.' Sosnick called Palantir's 9% plunge a 'shocking move down,' but also pointed out that the stock's meteoric rise has left it trading at "about as expensive of a stock as we've seen." Palantir (PLTR) shares dropped another 1% on Wednesday following a sharp 9% slide on Tuesday. But retail investors saw the drop as a buying opportunity. According to data provided to Yahoo Finance from Vanda Research, small investors poured over $59 million into Palantir during Tuesday's sell-off, marking the biggest single-day retail inflow in a week. That came on top of another $40 million in inflows the day before. The surge in retail demand highlights a classic 'buy the dip' mentality that has dominated markets since the April bottom. In the days leading up to the sell-off, retail flows had been steady but more modest, averaging in the $20 to $30 million range, according to Vanda. The jump in activity suggests everyday traders were not scared off by the stock's sudden slide. Instead, they leaned in. But even with retail piling in, the stock still fell hard. That divergence underscores a familiar market reality: while retail can be a powerful force, institutional selling pressure often sets the tone. "Retail has gotten to be such a huge percentage of the market in terms of day-to-day trading," Interactive Brokers chief strategist Steve Sosnick told Yahoo Finance on Wednesday. "But if a series of institutions decide to reallocate their portfolio holdings, you're standing in the way of a much larger piece of momentum." "Collectively, a whole lot of small traders can push back, but if [institutions] are relentless about the selling, that's going to move the market lower.' Sosnick called Palantir's 9% plunge a 'shocking move down,' but also pointed out that the stock's meteoric rise has left it trading at "about as expensive of a stock as we've seen." James Hardie stock collapses 35% as US housing slump hits building materials Yahoo Finance's Ines Ferre reports: James Hardie (JHX) stock tumbled 35% on Wednesday as the maker of high-end home siding pointed to a weak US housing market and homeowners reluctant to spend on big projects. The stock, listed in the US and Australia, saw its biggest one-day drop since 1973, according to Bloomberg data. The company's profit declined 28% year over year during its fiscal first quarter. Net sales tumbled 9% over the same period. "Uncertainty is a common thread throughout conversations with customer and contractor partners," CEO Aaron Erter said during the company's earnings call. James Hardie pointed to "softer demand," citing a slowdown in single-family construction activity, especially in the southern part of the US. Read more here. Yahoo Finance's Ines Ferre reports: James Hardie (JHX) stock tumbled 35% on Wednesday as the maker of high-end home siding pointed to a weak US housing market and homeowners reluctant to spend on big projects. The stock, listed in the US and Australia, saw its biggest one-day drop since 1973, according to Bloomberg data. The company's profit declined 28% year over year during its fiscal first quarter. Net sales tumbled 9% over the same period. "Uncertainty is a common thread throughout conversations with customer and contractor partners," CEO Aaron Erter said during the company's earnings call. James Hardie pointed to "softer demand," citing a slowdown in single-family construction activity, especially in the southern part of the US. Read more here. Fed minutes show majority of officials more concerned about inflation than employment Minutes from the Federal Reserve's July meeting showed the "majority" of officials were more concerned about the upside risk to inflation than downside risks to the Fed's mandate for maximum employment. "Regarding upside risks to inflation, participants pointed to the uncertain effects of tariffs and the possibility of inflation expectations becoming unanchored," the minutes read. "In addition to tariff-induced risks, potential downside risks to employment mentioned by participants included a possible tightening of financial conditions due to a rise in risk premiums, a more substantial deterioration in the housing market, and the risk that the increased use of AI in the workplace may lower employment." Read more about the Fed minutes here. Minutes from the Federal Reserve's July meeting showed the "majority" of officials were more concerned about the upside risk to inflation than downside risks to the Fed's mandate for maximum employment. "Regarding upside risks to inflation, participants pointed to the uncertain effects of tariffs and the possibility of inflation expectations becoming unanchored," the minutes read. "In addition to tariff-induced risks, potential downside risks to employment mentioned by participants included a possible tightening of financial conditions due to a rise in risk premiums, a more substantial deterioration in the housing market, and the risk that the increased use of AI in the workplace may lower employment." Read more about the Fed minutes here. Eight sectors are outperforming the S&P 500 on Wednesday Citi head of US equity trading strategy Stuart Kaiser noted on Tuesday that the recent pain the stock market has "remained localized." And that's holding true on Wednesday too despite a roughly 1% decline in the Nasdaq Composite. The pain is mostly in technology and other related areas of the market with eight of 11 sectors in the S&P 500 (^GSPC)outperforming the benchmark index. While the size of tech in the index is pulling down the overall S&P 500 there are actually still 265 stocks in positive territory with a little over two hours left in the trading session. For now the rotation in the market isn't shaking a bullish stance from Kaiser who remains positive on US equities with a "quality preference." Below is a look at the sector action thus far in Wednesday's trade. Citi head of US equity trading strategy Stuart Kaiser noted on Tuesday that the recent pain the stock market has "remained localized." And that's holding true on Wednesday too despite a roughly 1% decline in the Nasdaq Composite. The pain is mostly in technology and other related areas of the market with eight of 11 sectors in the S&P 500 (^GSPC)outperforming the benchmark index. While the size of tech in the index is pulling down the overall S&P 500 there are actually still 265 stocks in positive territory with a little over two hours left in the trading session. For now the rotation in the market isn't shaking a bullish stance from Kaiser who remains positive on US equities with a "quality preference." Below is a look at the sector action thus far in Wednesday's trade. Google unveils latest Pixel phones, including foldable Pixel 10 Pro Fold Yahoo Finance's Dan Howley reports: Google (GOOG, GOOGL) announced its latest line of Pixel smartphones on Wednesday as part of its Made By Google event in New York City on Wednesday. The Pixel 10 lineup includes four phones: the Pixel 10, Pixel 10 Pro, Pixel 10 Pro XL, and Pixel 10 Pro Fold. The company also showed off its newest smartwatch, the Pixel Watch 4. The devices get Google's latest Gemini AI capabilities, including the company's new Magic Cue for its smartphones and enhanced smart replies for the watch. Starting at $799, the entry-level Pixel 10 now comes with three rear cameras, up from two. That includes a 5x telephoto camera. Inside, the 6.3-inch phone gets Google's latest Tensor G5 processor, 12GB of RAM, and upwards of 256GB of storage. The Pixel 10 Pro starts at $999 and gets a sharper 6.3-inch display and more-advanced triple-camera setup. And while the phone packs the same Tensor G5 processor as the standard Pixel 10, the Pro sports 16GB of RAM rather than 12GB and offers up to 512GB of storage. Read more here. Yahoo Finance's Dan Howley reports: Google (GOOG, GOOGL) announced its latest line of Pixel smartphones on Wednesday as part of its Made By Google event in New York City on Wednesday. The Pixel 10 lineup includes four phones: the Pixel 10, Pixel 10 Pro, Pixel 10 Pro XL, and Pixel 10 Pro Fold. The company also showed off its newest smartwatch, the Pixel Watch 4. The devices get Google's latest Gemini AI capabilities, including the company's new Magic Cue for its smartphones and enhanced smart replies for the watch. Starting at $799, the entry-level Pixel 10 now comes with three rear cameras, up from two. That includes a 5x telephoto camera. Inside, the 6.3-inch phone gets Google's latest Tensor G5 processor, 12GB of RAM, and upwards of 256GB of storage. The Pixel 10 Pro starts at $999 and gets a sharper 6.3-inch display and more-advanced triple-camera setup. And while the phone packs the same Tensor G5 processor as the standard Pixel 10, the Pro sports 16GB of RAM rather than 12GB and offers up to 512GB of storage. Read more here. Hertz stock jumps on deal to sell its used cars on Amazon Yahoo Finance's Pras Subramanian reports: Rental car firm Hertz (HTZ) struck a deal with Amazon Autos (AMZN) on Wednesday to sell some of its used car inventory. The company said this will make it easier for customers to purchase cars from its fleet. Starting today, customers can search Amazon Autos to browse, finance, and purchase from thousands of used Hertz fleet vehicles from brands like Ford, Toyota, Chevrolet, Nissan, and others. Hertz Car Sales, the rental car firm's used car sales arm, will be the first fleet dealer on Amazon Autos. Hertz said sales will begin in the Dallas, Houston, Los Angeles, and Seattle metro areas, with plans to expand to Hertz Car Sales' 45 locations nationwide. After customers complete their purchase online, they can pick up the vehicles at Hertz locations in those cities. Read more here. Yahoo Finance's Pras Subramanian reports: Rental car firm Hertz (HTZ) struck a deal with Amazon Autos (AMZN) on Wednesday to sell some of its used car inventory. The company said this will make it easier for customers to purchase cars from its fleet. Starting today, customers can search Amazon Autos to browse, finance, and purchase from thousands of used Hertz fleet vehicles from brands like Ford, Toyota, Chevrolet, Nissan, and others. Hertz Car Sales, the rental car firm's used car sales arm, will be the first fleet dealer on Amazon Autos. Hertz said sales will begin in the Dallas, Houston, Los Angeles, and Seattle metro areas, with plans to expand to Hertz Car Sales' 45 locations nationwide. After customers complete their purchase online, they can pick up the vehicles at Hertz locations in those cities. Read more here. KeyBanc warns China headwinds could prompt an Nvidia earnings miss Yahoo Finance's Francisco Velasquez reports: Read more here. Yahoo Finance's Francisco Velasquez reports: Read more here. Big Tech is getting hammered again Tuesday's market action was all about isolated selling in some of the market's biggest winners. Wednesday's early session has brought more of the same, as Big Tech is clearly leading the selling action once more. After a nearly 10% drop on Tuesday, Palantir (PLTR) fell another 7% in early trade. Meanwhile, AI chip leaders Nvidia (NVDA) and Broadcom (AVGO) each dropped more than 3%. Tuesday's market action was all about isolated selling in some of the market's biggest winners. Wednesday's early session has brought more of the same, as Big Tech is clearly leading the selling action once more. After a nearly 10% drop on Tuesday, Palantir (PLTR) fell another 7% in early trade. Meanwhile, AI chip leaders Nvidia (NVDA) and Broadcom (AVGO) each dropped more than 3%. Trump says Fed governor Cook 'must resign' as pressure campaign on central bank continues President Trump on Wednesday called on Federal Reserve Governor Lisa Cook to resign as the public pressure on the central bank continues to build. "Cook must resign, now!!!" Trump wrote on his social media platform Truth Social Wednesday morning with a link to a Bloomberg report on a letter sent by Bill Pulte. The Federal Housing Finance Agency head has reportedly urged Attorney General Pam Bondi to investigate Cook over a pair of mortgages. Pulte wrote in a letter dated Aug. 15 that Cook 'falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraud under the criminal statute.' The President's call for Cook to resign comes as pressure on the Fed continues amid ongoing changes on the Fed's Board of Governors. Read more here. President Trump on Wednesday called on Federal Reserve Governor Lisa Cook to resign as the public pressure on the central bank continues to build. "Cook must resign, now!!!" Trump wrote on his social media platform Truth Social Wednesday morning with a link to a Bloomberg report on a letter sent by Bill Pulte. The Federal Housing Finance Agency head has reportedly urged Attorney General Pam Bondi to investigate Cook over a pair of mortgages. Pulte wrote in a letter dated Aug. 15 that Cook 'falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraud under the criminal statute.' The President's call for Cook to resign comes as pressure on the Fed continues amid ongoing changes on the Fed's Board of Governors. Read more here. Nasdaq leads indexes lower again at the open US stocks were mixed on Wednesday after a bruising day for tech stocks, as investors weighed the latest retail earnings and waited for Federal Reserve minutes to provide clues to interest rate cuts. The Dow Jones Industrial Average (^DJI) was up about 0.1%, while the S&P 500 (^GSPC) slipped about 0.2%. The tech-heavy Nasdaq Composite (^IXIC) fell roughly 0.4%, after weakness in the likes of Palantir (PLTR) and Nvidia (NVDA) dragged on the broader market on Tuesday. US stocks were mixed on Wednesday after a bruising day for tech stocks, as investors weighed the latest retail earnings and waited for Federal Reserve minutes to provide clues to interest rate cuts. The Dow Jones Industrial Average (^DJI) was up about 0.1%, while the S&P 500 (^GSPC) slipped about 0.2%. The tech-heavy Nasdaq Composite (^IXIC) fell roughly 0.4%, after weakness in the likes of Palantir (PLTR) and Nvidia (NVDA) dragged on the broader market on Tuesday. Post-earnings market movers: Target and La-Z-Boy stocks dive, Lowe's rises Here's a look at how Wall Street is reacting to a burst of earnings reports ahead of the opening bell on Wednesday: Target (TGT) stock dived more than 10%, facing its worst sell-off since early April. The retailer cleared a low bar of earnings expectations, but comparable sales continued to fall during the quarter. Lowe's (LOW) stock rose 2.5%. The home improvement retailer reported a return to same-store sales growth, echoing positive results from Home Depot (HD) on Tuesday. Home Depot stock fell 1.3% before the bell. Estée Lauder (EL) shares fell 5%. The beauty company's annual profit forecast disappointed and executives said they expect a $100 million headwind from tariffs. Baidu (BIDU) shares edged 0.2% lower. The Chinese search engine company reported a drop in second quarter revenue as strong growth in cloud services was offset by weakness in its core advertising business. Toll Brothers (TOL) stock added 0.45%. The homebuilder reported an earnings and revenue beat on Tuesday afternoon, though new orders were less than analysts' expected. La-Z-Boy (LZB) stock tanked 20% after the company missed estimates amid soft demand. Sales for its Joybird furniture brand declined 14%. Read more live coverage of corporate earnings here Here's a look at how Wall Street is reacting to a burst of earnings reports ahead of the opening bell on Wednesday: Target (TGT) stock dived more than 10%, facing its worst sell-off since early April. The retailer cleared a low bar of earnings expectations, but comparable sales continued to fall during the quarter. Lowe's (LOW) stock rose 2.5%. The home improvement retailer reported a return to same-store sales growth, echoing positive results from Home Depot (HD) on Tuesday. Home Depot stock fell 1.3% before the bell. Estée Lauder (EL) shares fell 5%. The beauty company's annual profit forecast disappointed and executives said they expect a $100 million headwind from tariffs. Baidu (BIDU) shares edged 0.2% lower. The Chinese search engine company reported a drop in second quarter revenue as strong growth in cloud services was offset by weakness in its core advertising business. Toll Brothers (TOL) stock added 0.45%. The homebuilder reported an earnings and revenue beat on Tuesday afternoon, though new orders were less than analysts' expected. La-Z-Boy (LZB) stock tanked 20% after the company missed estimates amid soft demand. Sales for its Joybird furniture brand declined 14%. Read more live coverage of corporate earnings here Hertz to sell used cars on Amazon, stock jumps Hertz (HTZ) stock rose over 10% after the car rental company announced it is teaming up with Amazon (AMZN) to sell pre-owned vehicles. Customers will be able to browse Hertz used car sales on Amazon, purchase vehicles online, and then pick them up at select Hertz locations. It will initially be offered in Dallas, Houston, Los Angeles, and Seattle, with plans to expand to 45 locations nationwide. Hertz sells pre-owned cars in addition to renting them out. The company is in the midst of a turnaround, and shares have outperformed this year with a 42% year-to-date rise. Read more here. Hertz (HTZ) stock rose over 10% after the car rental company announced it is teaming up with Amazon (AMZN) to sell pre-owned vehicles. Customers will be able to browse Hertz used car sales on Amazon, purchase vehicles online, and then pick them up at select Hertz locations. It will initially be offered in Dallas, Houston, Los Angeles, and Seattle, with plans to expand to 45 locations nationwide. Hertz sells pre-owned cars in addition to renting them out. The company is in the midst of a turnaround, and shares have outperformed this year with a 42% year-to-date rise. Read more here. Intel's advantages from a Trump deal could be worth as much as the money What would it take for Intel (INTC) to turn its business around? Yahoo Finance's Hamza Shaban digs into that question in today's Morning Brief. Read more here. What would it take for Intel (INTC) to turn its business around? Yahoo Finance's Hamza Shaban digs into that question in today's Morning Brief. Read more here. This summer's hottest trend on Wall Street: 'Private for longer' Continuation funds have become hugely popular among America's biggest private fund managers this year. Yahoo Finance's David Hollerith breaks down why, and exactly how they work: Read more here. Continuation funds have become hugely popular among America's biggest private fund managers this year. Yahoo Finance's David Hollerith breaks down why, and exactly how they work: Read more here. Palantir stock on track to extend losing streak Palantir stock (PLTR) looks like it may extend its losing streak to six trading days after reaching an all-time high. Shares fell 3% in premarket trading on Wednesday after a 9% decline on Tuesday. Since hitting $186.97 per share on Aug. 12, the stock is now trading around $153, putting it 18% off its record closing high. Investors rotating out of large-cap tech names and a bearish report from short seller Citron Research have weighed on the stock. Read more here. Palantir stock (PLTR) looks like it may extend its losing streak to six trading days after reaching an all-time high. Shares fell 3% in premarket trading on Wednesday after a 9% decline on Tuesday. Since hitting $186.97 per share on Aug. 12, the stock is now trading around $153, putting it 18% off its record closing high. Investors rotating out of large-cap tech names and a bearish report from short seller Citron Research have weighed on the stock. Read more here. Target stock sinks after earnings eke out a beat, but sales keep falling Target's (TGT) results on Wednesday morning weren't as shockingly bad as for the first quarter, but the retailer is still struggling to find its place in the new economic norm of more discerning shoppers. Shares in the US retail giant sank 10% in premarket trading as the announcement of a new CEO still left investors wanting more. Yahoo Finance's Brian Sozzi reports: Read more here. Target's (TGT) results on Wednesday morning weren't as shockingly bad as for the first quarter, but the retailer is still struggling to find its place in the new economic norm of more discerning shoppers. Shares in the US retail giant sank 10% in premarket trading as the announcement of a new CEO still left investors wanting more. Yahoo Finance's Brian Sozzi reports: Read more here. Good morning. Here's what's happening today. Economic data: FOMC Minutes (July 30-31 meeting); MBA weekly mortgage applications Earnings: Target (TGT), Baidu (BIDU), Lowe's (LOW), TJX Companies (TJX), Estée Lauder (EL) Here are some of the biggest stories you may have missed overnight and early this morning: Target earnings miss the mark as sales keep falling Target will have a new CEO for the first time since 2014 Intel's Trump deal perks may rival the money Buffett effect still holds as UnitedHealth soars through August This summer's hottest trend on Wall Street: 'Private for longer' US housing warning sparks worst James Hardie selloff since 1973 US treasury chief says status quo with China 'working pretty well' Sales of foreign-branded phones in China down 31.3% in June: Data China exports of key rare-earth EV magnets hit 6-month high Economic data: FOMC Minutes (July 30-31 meeting); MBA weekly mortgage applications Earnings: Target (TGT), Baidu (BIDU), Lowe's (LOW), TJX Companies (TJX), Estée Lauder (EL) Here are some of the biggest stories you may have missed overnight and early this morning: Target earnings miss the mark as sales keep falling Target will have a new CEO for the first time since 2014 Intel's Trump deal perks may rival the money Buffett effect still holds as UnitedHealth soars through August This summer's hottest trend on Wall Street: 'Private for longer' US housing warning sparks worst James Hardie selloff since 1973 US treasury chief says status quo with China 'working pretty well' Sales of foreign-branded phones in China down 31.3% in June: Data China exports of key rare-earth EV magnets hit 6-month high Target will have a new CEO... and he will not have it easy Target (TGT) is tapping a homegrown talent as its next CEO at one of the most pivotal moments in its 63-year history. The discounter announced that longtime CEO Brian Cornell's heavily groomed No. 2, Michael Fiddelke, will take over as CEO on Feb. 1, 2026. Cornell, who has been CEO of Target since August 2014, will slide into the executive chair position for an undetermined period of time. Fiddelke joined Target in 2003 as an intern and rose through the ranks to CFO and then COO. "I've had this conversation with the board for a number of years, and I've been in the role for 11 years. I'm going into my 12th now. I will actually turn 67 early next year, and I think it's time for me to step back, recharge, spend a lot more time with my family, a lot fewer nights in hotels, and be a great supporter of Michael and the team for the rest of my life," Cornell told me by video call while sitting next to Fiddelke at the company's Minneapolis headquarters. Fiddelke added, "I bleed Target red after 20 years here, and there's nothing more important to me than working with the incredible team that we have to chart the next chapter for Target. I mean, I've seen us in that 20 years at our best. I've seen us not at our best. When we're at our best, we are pretty darn tough to beat." To students of Target history such as myself, this decision isn't a surprise. For one, Fiddelke has been Cornell's right-hand man for several years now. It has become quite apparent over the past year that he was grooming Fiddelke to take over while also working behind the scenes to get board buy-in. I have gotten to know Fiddelke in recent years. He is a nice fella and has indeed earned the opportunity to sit in the CEO seat. If this was any other time for Target, the decision would probably be celebrated. It's not often an intern at a company becomes its CEO. The only comparable story I can think of is Walmart (WMT) CEO Doug McMillon going from truck loader at the retailer to CEO. But Fiddelke will unlikely have a honeymoon period, seeing as he has been there at Target during its past 24 months of struggles (which includes a weak second quarter). People I have talked to wanted an outsider as Target's next CEO, fresh eyes to come in and fix what is wrong (not unlike when Cornell was brought in back in 2014 — his career was mostly spent at Walmart and PepsiCo (PEP)). Fiddelke will be seen as a continuation of a strategy that hasn't been working. I asked him on the call how candid he plans to be in the early going on the strategy review, which is what all new leaders do. He sounded like he was ready to divert from Cornell's playbook and shake things up. He will have to do just that, and quickly, to win over a likely skeptical Wall Street. Target (TGT) is tapping a homegrown talent as its next CEO at one of the most pivotal moments in its 63-year history. The discounter announced that longtime CEO Brian Cornell's heavily groomed No. 2, Michael Fiddelke, will take over as CEO on Feb. 1, 2026. Cornell, who has been CEO of Target since August 2014, will slide into the executive chair position for an undetermined period of time. Fiddelke joined Target in 2003 as an intern and rose through the ranks to CFO and then COO. "I've had this conversation with the board for a number of years, and I've been in the role for 11 years. I'm going into my 12th now. I will actually turn 67 early next year, and I think it's time for me to step back, recharge, spend a lot more time with my family, a lot fewer nights in hotels, and be a great supporter of Michael and the team for the rest of my life," Cornell told me by video call while sitting next to Fiddelke at the company's Minneapolis headquarters. Fiddelke added, "I bleed Target red after 20 years here, and there's nothing more important to me than working with the incredible team that we have to chart the next chapter for Target. I mean, I've seen us in that 20 years at our best. I've seen us not at our best. When we're at our best, we are pretty darn tough to beat." To students of Target history such as myself, this decision isn't a surprise. For one, Fiddelke has been Cornell's right-hand man for several years now. It has become quite apparent over the past year that he was grooming Fiddelke to take over while also working behind the scenes to get board buy-in. I have gotten to know Fiddelke in recent years. He is a nice fella and has indeed earned the opportunity to sit in the CEO seat. If this was any other time for Target, the decision would probably be celebrated. It's not often an intern at a company becomes its CEO. The only comparable story I can think of is Walmart (WMT) CEO Doug McMillon going from truck loader at the retailer to CEO. But Fiddelke will unlikely have a honeymoon period, seeing as he has been there at Target during its past 24 months of struggles (which includes a weak second quarter). People I have talked to wanted an outsider as Target's next CEO, fresh eyes to come in and fix what is wrong (not unlike when Cornell was brought in back in 2014 — his career was mostly spent at Walmart and PepsiCo (PEP)). Fiddelke will be seen as a continuation of a strategy that hasn't been working. I asked him on the call how candid he plans to be in the early going on the strategy review, which is what all new leaders do. He sounded like he was ready to divert from Cornell's playbook and shake things up. He will have to do just that, and quickly, to win over a likely skeptical Wall Street. US tech stocks hit by concerns over future of AI boom Wall Street is digging into the factors behind this week's selloff in tech stocks, with many seeing it as a timely rotation out of riskier names. There are a few potential triggers, the Financial Times reports: Read more here (premium) Wall Street is digging into the factors behind this week's selloff in tech stocks, with many seeing it as a timely rotation out of riskier names. There are a few potential triggers, the Financial Times reports: Read more here (premium) Se produjo un error al recuperar la información Inicia sesión para acceder a tu portafolio Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información
Yahoo
18 minutes ago
- Yahoo
Analysis-US tech-stock stumble shows vulnerability in AI trade
By Lewis Krauskopf NEW YORK (Reuters) -U.S. technology shares are showing signs of vulnerability after a massive run, which has some investors pointing to overdone AI-driven gains while funds have taken steps to position away from the high-flying sector. Investors are looking to de-risk portfolios or lock in profits during a seasonally difficult period for stocks. Friday's looming speech by Federal Reserve Chair Jerome Powell at the annual Jackson Hole symposium is creating caution, investors said, with the potential for volatility if his comments fail to meet growing market expectations that the central bank is poised to cut interest rates. "When you have overcrowding and you have had such strong performance, it doesn't take much to see an unwind of that," said Keith Lerner, co-chief investment officer at Truist Advisory Services. "At the same time this week, everyone is waiting for the Fed, and there is repositioning ahead of that." The heavyweight S&P 500 tech sector fell sharply for a second consecutive session on Wednesday, putting its decline on the week at about 2.5%, while the tech-heavy Nasdaq Composite was off about 2% for the week. Shares of some highflyers, including Nvidia Corp and Palantir Technologies, were getting hit particularly hard. The pullback comes after a huge rally in which the tech sector soared over 50% through last week since the market's low for the year in April. That easily topped the 29% gain of the broader S&P 500 during that period and drove up valuations of tech stocks to lofty levels. Investors cited wariness about the artificial intelligence trade, which has been a key driver of tech stocks and the broader market as indexes have soared to record highs this year. Shares of Nvidia, the semiconductor giant that has symbolized the AI trade, have gained about 30% this year while shares of AI-focused data and analytics firm Palantir have roughly doubled year-to-date. Indeed, the tech sector's price-to-earnings ratio recently reached about 30 times expected earnings for the next 12 months, its highest level in a year, according to LSEG Datastream, while tech's share of the overall S&P 500's market value is nearly its highest since 2000. Recent cautionary signs included a study from researchers at the Massachusetts Institute of Technology that found that 95% of organizations are getting no return on AI investments, as well as comments by OpenAI CEO Sam Altman, who told tech news website the Verge last week that investors may be getting overexcited about AI. Since last week, some AI-linked shares have pulled back sharply: Nvidia has dropped about 5% while shares of Palantir have slumped some 16%. In Europe, stocks of so-called AI adopters have been under pressure over concerns over how powerful new AI models could disrupt the software sector. Still, some investors said, the caution is unlikely to be a sign that enthusiasm over AI is fizzling. 'These are price corrections," said Andrew Almeida, director of investments at financial planning network XYPN. "But if you look at the big picture, it's clear that more people will be investing more dollars in AI infrastructure. This is certainly not a 'reckoning' with the AI theme." JACKSON HOLE SEEN AS CRITICAL Investors also could be paring back their stock exposure during a traditionally rocky period for equities. August and September rank as the worst-performing months on average for the S&P 500 over the past 35 years, according to the Stock Trader's Almanac. "Valuations were stretched, these names have not taken a breather, and we're going into a tougher season for stocks," said King Lip, chief strategist at Baker Avenue Wealth Management. Other sectors such as consumer staples, healthcare and financials were up on the week, while relative strength for the equal-weight S&P 500 signaled to some investors a possible start of broadening of gains beyond the massive tech stocks that have led indexes higher. Powell's upcoming speech comes as Fed fund futures on Wednesday were indicating an 84% chance that the central bank will cut rates at its next meeting on September 16-17. Investors will be watching to see if Powell gives any indication that the central bank is on track for such a move or if he pushes back on the market's expectation for easing, which could spark volatility. Tech stocks tend to carry higher valuations which could make them sensitive to higher-than-expected interest rates going forward. "There are a lot of people who have overweighted tech, and it has worked for them," said Chuck Carlson, chief executive officer at Horizon Investment Services. "They don't want to get caught on the wrong side of that if in fact, the Fed doesn't do anything in September. So I think that is also causing (investors) to maybe not necessarily get out of tech, but to reduce the overweight a little bit."
Yahoo
18 minutes ago
- Yahoo
Earnings live: Target stock falls with Walmart earnings on deck
Second quarter earnings season is winding down, and with most of the reports in, the results have been mostly positive. Over 92% of S&P 500 index companies have reported results, and as of Aug. 18, analysts expected S&P 500 companies to report an 11% jump in earnings per share during the second quarter. Companies had lower expectations to clear coming into the quarter — analysts expected S&P 500 earnings to rise 5% in Q2, the slowest pace of earnings growth since Q4 2023 — amid President Trump's tariffs, stocks' lofty valuations, and uncertainty about the health of the US economy. Highly anticipated reports from Walmart (WMT), Target (TGT), Home Depot (HD), and Lowe's (LOW) are being watched for insights into consumer spending. Other major companies reporting this week include BJ's Wholesale (BJ), TJX Companies (TJX), Ross Stores (ROST), Estée Lauder (EL), Intuit (INTU), Zoom Communications (ZM), Workday (WDAY), Xpeng (XPEV), Medtronic (MDT), La-Z-Boy (LZB), Toll Brothers (TOL), Palo Alto Networks (PANW), and Blink Charging (BLNK). Last week, results came in for Applied Materials (AMAT), Circle (CRCL), Lenovo ( AMC (AMC), Cava (CAVA), Cisco (CSCO), CoreWeave (CRWV), Deere (DE), On (ONON), and Oklo (OKLO). Here are the latest updates from corporate America. Target beat low earnings expectations as sales continue to fall Target (TGT) released its second quarter results on Wednesday. The results are not as bad as the first quarter but declining sales has the retail giant in a bit of a bind. Shares in target fell 8% before the bell Yahoo Finance's executive editor Brian Sozzi looks at the latest from Target and whether it will ever find its place in this new economic environment. Read more here. Walmart earnings expected to show US sales growth continued in Q2 as consumers seek value Walmart (WMT) will report quarterly results Thursday morning before the bell, following on the heels of Target (TGT) earnings Wednesday, which sent shares of the retailer 6% lower. But Walmart is expected to highlight another robust quarter, Yahoo Finance's Brooke DiPalma writes, as consumers search for value amid tariff-related uncertainty. Brooke previews what to look for in Walmart's earnings: Read more here. TJX Companies shares rise after earnings beat and raise TJ Maxx parent TJX Companies (TJX) beat sales and profit estimates for the second quarter and raised its annual profit forecast, boosting shares in premarket trading. Reuters reports: Read more here. Lowe's stock rises after same-store sales return to growth Lowe's (LOW) stock popped in premarket trading on Wednesday after the home improvement retailer reported a return to same-store sales growth, earnings beat, and raised its guidance. Yahoo Finance's Brooke DiPalma reports: Read more here. Baidu quarterly revenue falls as weak ads offset cloud growth Reuters reports: Read more here. Estee Lauder forecasts annual profit below estimates as tariffs hit Estee Lauder (EL) stock fell 8% before the bell on Wednesday after the beauty group forecast annual profit below Wall Street estimates, as it grapples with persistent weakness in the US and China markets and tariff uncertainty. Reuters reports: Read more here. Toll Brothers beats on earnings, but new orders decline 4% Toll Brothers (TOL) reported another double beat in its fiscal third quarter, but a slowdown in new orders weighed on the stock, which drifted 1.6% lower after hours. The homebuilder posted diluted earnings per share of $3.73 on home sale revenue of $2.88 billion. Wall Street analysts were expecting earnings per share of $3.64 on revenue of $2.85 billion. After a sluggish spring season in the housing market, there have been signs of a resurgence, with housing starts jumping in July. But mortgage rates that have barely budged, ongoing economic uncertainty, and affordability challenges for buyers continue to weigh on the sector. For the quarter, Toll Brothers noted it had 2,388 units under signed contract, a 4% decline from a year ago. Analysts had expected orders growth. "The average sales price of new contracts was $1.0 million, up 4.5% year-over-year," CEO Douglas Yearley said in the earnings release. "Contract dollars were flat despite a 4% decline in units. While affordability pressures and uncertain economic conditions persist, we are pleased with the resilience of our luxury business and more affluent customer base." La-Z-Boy stock drops on soft earnings and guidance La-Z-Boy stock (LZB) dropped 16% in after-hours trading after the company missed earnings estimates and navigated "soft industry demand." Overall, comparable sales dropped 1% to $492 million from a year ago. Sales in the furniture retailer's wholesale segment increased 1%, and retail sales rose 5%, but they were offset by weakness in the Joybird brand, which saw sales decline 14%. La-Z-Boy reported diluted earnings per share of $0.44, compared to $0.61 per share a year ago. The Street was looking for earnings of $0.52 per share. La-Z-Boy's guidance also came in lighter than expected. It expects sales in the range of $510 million to $530 million in the fiscal second quarter. Wall Street was looking for $532 million, according to S&P Global Market Intelligence. Medtronic appoints 2 new board members, posts Q1 beat Irish medical device maker Medtronic (MDT) reported better-than-expected earnings for its fiscal first quarter on Monday. But the bigger story was the company's announcement that it would add two new directors to its board after activist investor Elliott Investment Management became one of its largest shareholders. Veteran med-tech executives John Groetelaars and Bill Jellison were appointed, the company said. Medtronic stock dropped over 3% in premarket trading. For the quarter, the company posted adjusted earnings of $1.26 per share, beating analysts' estimates for $1.23, according to S&P Global Market Intelligence. Revenue came in at $8.6 billion, above Wall Street's forecast of $8.4 billion. Read more here. Home Depot slightly misses Wall Street's mark in Q2 earnings, reiterates guidance Home Depot (HD) released its second-quarter earnings on Tuesday. Yahoo Finance's senior reporter Brooke DiPalma looks at the latest from the retail giant and how the US housing slump has impacted its bottom line. Read more here. China's Xpeng expects quarterly revenue to double on strong demand for its EVs Chinese electric vehicle maker Xpeng (XPEV) on Tuesday forecast third-quarter revenue would double. The company is betting on surging deliveries of its cars despite challenging economic conditions. The group's stock rose 0.6% in premarket trading on Tuesday. Reuters reports: Read more here. Xiaomi's revenue rises 31% after second EV fires up consumers Bloomberg News reports: Read more here. Palo Alto Networks stock pops on healthy earnings growth, guidance Palo Alto Networks (PANW) stock shot up 6% after hours after the company reported solid earnings and margin growth in its fiscal fourth quarter. The cybersecurity firm reported $2.54 billion in revenue in its fiscal fourth quarter (a 16% increase) and earnings per share of $0.95. Wall Street analysts expected revenue of $2.50 billion and earnings of $0.89 per share, according to S&P Global Market Intelligence. Shares of Palo Alto Networks are off by 10% over the past month due to a drawdown following the company's $25 billion acquisition of identity security solutions provider CyberArk. But guidance for full-year adjusted EPS of $3.75 to $3.85 also came in above expectations amid the deal. "Cybersecurity is a clear 2nd/3rd derivative play on the AI Revolution with PANW in the driver's seat to gain market/mind share in the cybersecurity landscape," Wedbush analyst Dan Ives wrote in a note ahead of earnings. Ives added, "the continued shift to the cloud [is] putting the company in a strong position to accelerate deal flow as more strategic enterprise AI projects take hold over the coming year." Goldman's Kostin says S&P 500 earnings surge past expectations Bloomberg reports: Read more here. Walmart, Target quarterly results on deck next week The focus turns to retailers next week as heavyweights Walmart (WMT), Target (TGT), Lowe's (LOW), and Home Depot (HD) report results. Investors will be listening for changes in consumer behavior as tariffs and inflation remain top concerns for households. Earlier this earnings season, Amazon CEO Andy Jassy noted that the company wasn't seeing diminishing demand or meaningful price increases. Similarly, Mastercard CEO Michael Miebach said consumer spending remains healthy. However, recent data showed retail sales rose by less than expected in July. And some companies, particularly fast-casual restaurants, noted their customers were pulling back. With that mixed picture in the backdrop, the earnings calendar next week should provide additional insights from some of the big brands Americans shop. Here's what's on deck: Monday Palo Alto Networks (PANW), Blink Charging (BLNK) Tuesday Home Depot, Xpeng (XPEV), Medtronic (MDT), La-Z-Boy (LZB), Toll Brothers (TOL) Wednesday Target, Lowe's, Baidu (BIDU), TJX Companies (TJX), Estée Lauder (EL) Thursday Walmart, Intuit (INTU), Zoom Communications (ZM), Workday (WDAY), Ross Stores (ROST) Friday BJ's Wholesale (BJ) With Nvidia's Q2 earnings in sight, Trump deal could boost outlook Nvidia's (NVDA) deal with President Trump to give the US government a 15% cut of H20 chip revenue in China adds an interesting wrinkle to the company's earnings. China has responded by urging companies not to use the chips. Yahoo Finance's Daniel Howley writes that the payment, which could face legal challenges, won't show up in Nvidia's Q2 report but could boost its Q3 outlook if the administration moves quickly. Howley notes: Read more here. McGraw Hill posts profitable quarter in first post-IPO earnings report McGraw Hill (MH) stock gained 2% after reporting its first quarterly results since going public. It traded around $13.61 on Thursday afternoon. In July, shares opened at $17 apiece in the company's IPO. Total revenue increased 2.4% year over year to $535.7 million. The education solutions company also swung to a $0.5 million profit, compared to its $9.4 million loss a year ago. Market share gains, enrollment, and continued demand for digital learning solutions fueled the higher education business, which saw revenue jump 14.1% year over year. Revenue for the K-12 segment, however, declined 1.4%. These two business units make up the bulk of McGraw Hill's business. The smaller international business noted weakness, with an 11.7% decrease in revenue, while sales in the global professional business held steady. For 2026, McGraw Hill sees revenue in a range of $1.98 billion to $2.04 billion. Listen to the earnings call here. Quantum Computing stock slips as losses accelerate Quantum Computing (QUBT) CEO Yuping Huang said that the company continued to make progress in growing commercial traction in the second quarter, but the industry is still focused on reaching technology milestones. Second quarter revenue totaled approximately $61,000, compared to $183,000 in the same period a year ago. The company reported a net loss of $36.5 million, or $0.26 per share. In Q2 2024, Quantum Computing posted a net loss of $5.2 million, or $0.06 per share. Quantum Computing stock fell 2.3% after hours in what's been a whipsaw year for quantum stocks. In June, the stock spiked 25% in one day after Nvidia CEO Jensen Huang said quantum computing "is reaching an inflection point." But the industry is still in its infancy. The other big quantum player, Rigetti Computing (RGTI), reported a technology breakthrough in its recent results but also big losses. "We are talking of a market that's hundreds of billions of dollars a decade or two from now," Rigetti CEO Subodh Kulkarni told Market Domination Overtime. "But right now, we are clearly in the R&D stage. We clearly need to perfect the technology to get to that big milestone in about four years, which we call quantum advantage." Read more about quantum computing here. Applied Materials stock sinks as policy uncertainty weighs on Q4 guidance Applied Materials (AMAT) recorded an earnings beat for the July quarter but said that the "dynamic" policy environment is creating uncertainty for the business. That led the chip equipment maker to issue a revenue forecast of $6.7 billion for the fourth quarter, below what the Street was expecting. 'We are expecting a decline in revenue in the fourth quarter driven by both digestion of capacity in China and nonlinear demand from leading-edge customers given market concentration and fab timing,' CFO Brice Hill said. 'We are navigating and adapting to the near-term uncertainties by leveraging our robust supply chain, global manufacturing footprint and deep customer relationships.' The company, whose clients include Taiwan Semiconductor and Intel, posted record revenue of $7.30 billion in Q3, up 8% year over year, surpassing estimates for $7.2 billion. Earnings per share of $2.48 also beat estimates by $0.12. Applied Materials stock fell 11% in after-hours trading. Read more here. Earnings and revenue beats lift Dillard's stock Dillard's (DDS) stock rose 7% on Thursday after the department store chain reported revenue and profit beats for the quarter. Net income fell to $72.8 million compared to $74.5 million a year ago, but earnings per share rose $0.07 year over year after the Arkansas-based company bought back stock. Revenue of $1.53 billion beat Wall Street estimates of $1.52 billion, according to S&P Global Market Intelligence. Earnings per share of $4.66 also topped estimates of $4.00 per share. Total retail sales were flat, with strength in juniors' and children's apparel as well as ladies' accessories and lingerie. The weakest performing category was home and furniture. Other major retailers, including Walmart (WMT), Target (TGT), and Macy's (M), will report second quarter results in the coming weeks, providing a more in-depth look into consumer spending habits. Dillard's stock is up 23% year to date. It has climbed 78% since its April 8 low. Target (TGT) released its second quarter results on Wednesday. The results are not as bad as the first quarter but declining sales has the retail giant in a bit of a bind. Shares in target fell 8% before the bell Yahoo Finance's executive editor Brian Sozzi looks at the latest from Target and whether it will ever find its place in this new economic environment. Read more here. Walmart earnings expected to show US sales growth continued in Q2 as consumers seek value Walmart (WMT) will report quarterly results Thursday morning before the bell, following on the heels of Target (TGT) earnings Wednesday, which sent shares of the retailer 6% lower. But Walmart is expected to highlight another robust quarter, Yahoo Finance's Brooke DiPalma writes, as consumers search for value amid tariff-related uncertainty. Brooke previews what to look for in Walmart's earnings: Read more here. Walmart (WMT) will report quarterly results Thursday morning before the bell, following on the heels of Target (TGT) earnings Wednesday, which sent shares of the retailer 6% lower. But Walmart is expected to highlight another robust quarter, Yahoo Finance's Brooke DiPalma writes, as consumers search for value amid tariff-related uncertainty. Brooke previews what to look for in Walmart's earnings: Read more here. TJX Companies shares rise after earnings beat and raise TJ Maxx parent TJX Companies (TJX) beat sales and profit estimates for the second quarter and raised its annual profit forecast, boosting shares in premarket trading. Reuters reports: Read more here. TJ Maxx parent TJX Companies (TJX) beat sales and profit estimates for the second quarter and raised its annual profit forecast, boosting shares in premarket trading. Reuters reports: Read more here. Lowe's stock rises after same-store sales return to growth Lowe's (LOW) stock popped in premarket trading on Wednesday after the home improvement retailer reported a return to same-store sales growth, earnings beat, and raised its guidance. Yahoo Finance's Brooke DiPalma reports: Read more here. Lowe's (LOW) stock popped in premarket trading on Wednesday after the home improvement retailer reported a return to same-store sales growth, earnings beat, and raised its guidance. Yahoo Finance's Brooke DiPalma reports: Read more here. Baidu quarterly revenue falls as weak ads offset cloud growth Reuters reports: Read more here. Reuters reports: Read more here. Estee Lauder forecasts annual profit below estimates as tariffs hit Estee Lauder (EL) stock fell 8% before the bell on Wednesday after the beauty group forecast annual profit below Wall Street estimates, as it grapples with persistent weakness in the US and China markets and tariff uncertainty. Reuters reports: Read more here. Estee Lauder (EL) stock fell 8% before the bell on Wednesday after the beauty group forecast annual profit below Wall Street estimates, as it grapples with persistent weakness in the US and China markets and tariff uncertainty. Reuters reports: Read more here. Toll Brothers beats on earnings, but new orders decline 4% Toll Brothers (TOL) reported another double beat in its fiscal third quarter, but a slowdown in new orders weighed on the stock, which drifted 1.6% lower after hours. The homebuilder posted diluted earnings per share of $3.73 on home sale revenue of $2.88 billion. Wall Street analysts were expecting earnings per share of $3.64 on revenue of $2.85 billion. After a sluggish spring season in the housing market, there have been signs of a resurgence, with housing starts jumping in July. But mortgage rates that have barely budged, ongoing economic uncertainty, and affordability challenges for buyers continue to weigh on the sector. For the quarter, Toll Brothers noted it had 2,388 units under signed contract, a 4% decline from a year ago. Analysts had expected orders growth. "The average sales price of new contracts was $1.0 million, up 4.5% year-over-year," CEO Douglas Yearley said in the earnings release. "Contract dollars were flat despite a 4% decline in units. While affordability pressures and uncertain economic conditions persist, we are pleased with the resilience of our luxury business and more affluent customer base." Toll Brothers (TOL) reported another double beat in its fiscal third quarter, but a slowdown in new orders weighed on the stock, which drifted 1.6% lower after hours. The homebuilder posted diluted earnings per share of $3.73 on home sale revenue of $2.88 billion. Wall Street analysts were expecting earnings per share of $3.64 on revenue of $2.85 billion. After a sluggish spring season in the housing market, there have been signs of a resurgence, with housing starts jumping in July. But mortgage rates that have barely budged, ongoing economic uncertainty, and affordability challenges for buyers continue to weigh on the sector. For the quarter, Toll Brothers noted it had 2,388 units under signed contract, a 4% decline from a year ago. Analysts had expected orders growth. "The average sales price of new contracts was $1.0 million, up 4.5% year-over-year," CEO Douglas Yearley said in the earnings release. "Contract dollars were flat despite a 4% decline in units. While affordability pressures and uncertain economic conditions persist, we are pleased with the resilience of our luxury business and more affluent customer base." La-Z-Boy stock drops on soft earnings and guidance La-Z-Boy stock (LZB) dropped 16% in after-hours trading after the company missed earnings estimates and navigated "soft industry demand." Overall, comparable sales dropped 1% to $492 million from a year ago. Sales in the furniture retailer's wholesale segment increased 1%, and retail sales rose 5%, but they were offset by weakness in the Joybird brand, which saw sales decline 14%. La-Z-Boy reported diluted earnings per share of $0.44, compared to $0.61 per share a year ago. The Street was looking for earnings of $0.52 per share. La-Z-Boy's guidance also came in lighter than expected. It expects sales in the range of $510 million to $530 million in the fiscal second quarter. Wall Street was looking for $532 million, according to S&P Global Market Intelligence. La-Z-Boy stock (LZB) dropped 16% in after-hours trading after the company missed earnings estimates and navigated "soft industry demand." Overall, comparable sales dropped 1% to $492 million from a year ago. Sales in the furniture retailer's wholesale segment increased 1%, and retail sales rose 5%, but they were offset by weakness in the Joybird brand, which saw sales decline 14%. La-Z-Boy reported diluted earnings per share of $0.44, compared to $0.61 per share a year ago. The Street was looking for earnings of $0.52 per share. La-Z-Boy's guidance also came in lighter than expected. It expects sales in the range of $510 million to $530 million in the fiscal second quarter. Wall Street was looking for $532 million, according to S&P Global Market Intelligence. Medtronic appoints 2 new board members, posts Q1 beat Irish medical device maker Medtronic (MDT) reported better-than-expected earnings for its fiscal first quarter on Monday. But the bigger story was the company's announcement that it would add two new directors to its board after activist investor Elliott Investment Management became one of its largest shareholders. Veteran med-tech executives John Groetelaars and Bill Jellison were appointed, the company said. Medtronic stock dropped over 3% in premarket trading. For the quarter, the company posted adjusted earnings of $1.26 per share, beating analysts' estimates for $1.23, according to S&P Global Market Intelligence. Revenue came in at $8.6 billion, above Wall Street's forecast of $8.4 billion. Read more here. Irish medical device maker Medtronic (MDT) reported better-than-expected earnings for its fiscal first quarter on Monday. But the bigger story was the company's announcement that it would add two new directors to its board after activist investor Elliott Investment Management became one of its largest shareholders. Veteran med-tech executives John Groetelaars and Bill Jellison were appointed, the company said. Medtronic stock dropped over 3% in premarket trading. For the quarter, the company posted adjusted earnings of $1.26 per share, beating analysts' estimates for $1.23, according to S&P Global Market Intelligence. Revenue came in at $8.6 billion, above Wall Street's forecast of $8.4 billion. Read more here. Home Depot slightly misses Wall Street's mark in Q2 earnings, reiterates guidance Home Depot (HD) released its second-quarter earnings on Tuesday. Yahoo Finance's senior reporter Brooke DiPalma looks at the latest from the retail giant and how the US housing slump has impacted its bottom line. Read more here. Home Depot (HD) released its second-quarter earnings on Tuesday. Yahoo Finance's senior reporter Brooke DiPalma looks at the latest from the retail giant and how the US housing slump has impacted its bottom line. Read more here. China's Xpeng expects quarterly revenue to double on strong demand for its EVs Chinese electric vehicle maker Xpeng (XPEV) on Tuesday forecast third-quarter revenue would double. The company is betting on surging deliveries of its cars despite challenging economic conditions. The group's stock rose 0.6% in premarket trading on Tuesday. Reuters reports: Read more here. Chinese electric vehicle maker Xpeng (XPEV) on Tuesday forecast third-quarter revenue would double. The company is betting on surging deliveries of its cars despite challenging economic conditions. The group's stock rose 0.6% in premarket trading on Tuesday. Reuters reports: Read more here. Xiaomi's revenue rises 31% after second EV fires up consumers Bloomberg News reports: Read more here. Bloomberg News reports: Read more here. Palo Alto Networks stock pops on healthy earnings growth, guidance Palo Alto Networks (PANW) stock shot up 6% after hours after the company reported solid earnings and margin growth in its fiscal fourth quarter. The cybersecurity firm reported $2.54 billion in revenue in its fiscal fourth quarter (a 16% increase) and earnings per share of $0.95. Wall Street analysts expected revenue of $2.50 billion and earnings of $0.89 per share, according to S&P Global Market Intelligence. Shares of Palo Alto Networks are off by 10% over the past month due to a drawdown following the company's $25 billion acquisition of identity security solutions provider CyberArk. But guidance for full-year adjusted EPS of $3.75 to $3.85 also came in above expectations amid the deal. "Cybersecurity is a clear 2nd/3rd derivative play on the AI Revolution with PANW in the driver's seat to gain market/mind share in the cybersecurity landscape," Wedbush analyst Dan Ives wrote in a note ahead of earnings. Ives added, "the continued shift to the cloud [is] putting the company in a strong position to accelerate deal flow as more strategic enterprise AI projects take hold over the coming year." Palo Alto Networks (PANW) stock shot up 6% after hours after the company reported solid earnings and margin growth in its fiscal fourth quarter. The cybersecurity firm reported $2.54 billion in revenue in its fiscal fourth quarter (a 16% increase) and earnings per share of $0.95. Wall Street analysts expected revenue of $2.50 billion and earnings of $0.89 per share, according to S&P Global Market Intelligence. Shares of Palo Alto Networks are off by 10% over the past month due to a drawdown following the company's $25 billion acquisition of identity security solutions provider CyberArk. But guidance for full-year adjusted EPS of $3.75 to $3.85 also came in above expectations amid the deal. "Cybersecurity is a clear 2nd/3rd derivative play on the AI Revolution with PANW in the driver's seat to gain market/mind share in the cybersecurity landscape," Wedbush analyst Dan Ives wrote in a note ahead of earnings. Ives added, "the continued shift to the cloud [is] putting the company in a strong position to accelerate deal flow as more strategic enterprise AI projects take hold over the coming year." Goldman's Kostin says S&P 500 earnings surge past expectations Bloomberg reports: Read more here. Bloomberg reports: Read more here. Walmart, Target quarterly results on deck next week The focus turns to retailers next week as heavyweights Walmart (WMT), Target (TGT), Lowe's (LOW), and Home Depot (HD) report results. Investors will be listening for changes in consumer behavior as tariffs and inflation remain top concerns for households. Earlier this earnings season, Amazon CEO Andy Jassy noted that the company wasn't seeing diminishing demand or meaningful price increases. Similarly, Mastercard CEO Michael Miebach said consumer spending remains healthy. However, recent data showed retail sales rose by less than expected in July. And some companies, particularly fast-casual restaurants, noted their customers were pulling back. With that mixed picture in the backdrop, the earnings calendar next week should provide additional insights from some of the big brands Americans shop. Here's what's on deck: Monday Palo Alto Networks (PANW), Blink Charging (BLNK) Tuesday Home Depot, Xpeng (XPEV), Medtronic (MDT), La-Z-Boy (LZB), Toll Brothers (TOL) Wednesday Target, Lowe's, Baidu (BIDU), TJX Companies (TJX), Estée Lauder (EL) Thursday Walmart, Intuit (INTU), Zoom Communications (ZM), Workday (WDAY), Ross Stores (ROST) Friday BJ's Wholesale (BJ) The focus turns to retailers next week as heavyweights Walmart (WMT), Target (TGT), Lowe's (LOW), and Home Depot (HD) report results. Investors will be listening for changes in consumer behavior as tariffs and inflation remain top concerns for households. Earlier this earnings season, Amazon CEO Andy Jassy noted that the company wasn't seeing diminishing demand or meaningful price increases. Similarly, Mastercard CEO Michael Miebach said consumer spending remains healthy. However, recent data showed retail sales rose by less than expected in July. And some companies, particularly fast-casual restaurants, noted their customers were pulling back. With that mixed picture in the backdrop, the earnings calendar next week should provide additional insights from some of the big brands Americans shop. Here's what's on deck: Monday Palo Alto Networks (PANW), Blink Charging (BLNK) Tuesday Home Depot, Xpeng (XPEV), Medtronic (MDT), La-Z-Boy (LZB), Toll Brothers (TOL) Wednesday Target, Lowe's, Baidu (BIDU), TJX Companies (TJX), Estée Lauder (EL) Thursday Walmart, Intuit (INTU), Zoom Communications (ZM), Workday (WDAY), Ross Stores (ROST) Friday BJ's Wholesale (BJ) With Nvidia's Q2 earnings in sight, Trump deal could boost outlook Nvidia's (NVDA) deal with President Trump to give the US government a 15% cut of H20 chip revenue in China adds an interesting wrinkle to the company's earnings. China has responded by urging companies not to use the chips. Yahoo Finance's Daniel Howley writes that the payment, which could face legal challenges, won't show up in Nvidia's Q2 report but could boost its Q3 outlook if the administration moves quickly. Howley notes: Read more here. Nvidia's (NVDA) deal with President Trump to give the US government a 15% cut of H20 chip revenue in China adds an interesting wrinkle to the company's earnings. China has responded by urging companies not to use the chips. Yahoo Finance's Daniel Howley writes that the payment, which could face legal challenges, won't show up in Nvidia's Q2 report but could boost its Q3 outlook if the administration moves quickly. Howley notes: Read more here. McGraw Hill posts profitable quarter in first post-IPO earnings report McGraw Hill (MH) stock gained 2% after reporting its first quarterly results since going public. It traded around $13.61 on Thursday afternoon. In July, shares opened at $17 apiece in the company's IPO. Total revenue increased 2.4% year over year to $535.7 million. The education solutions company also swung to a $0.5 million profit, compared to its $9.4 million loss a year ago. Market share gains, enrollment, and continued demand for digital learning solutions fueled the higher education business, which saw revenue jump 14.1% year over year. Revenue for the K-12 segment, however, declined 1.4%. These two business units make up the bulk of McGraw Hill's business. The smaller international business noted weakness, with an 11.7% decrease in revenue, while sales in the global professional business held steady. For 2026, McGraw Hill sees revenue in a range of $1.98 billion to $2.04 billion. Listen to the earnings call here. McGraw Hill (MH) stock gained 2% after reporting its first quarterly results since going public. It traded around $13.61 on Thursday afternoon. In July, shares opened at $17 apiece in the company's IPO. Total revenue increased 2.4% year over year to $535.7 million. The education solutions company also swung to a $0.5 million profit, compared to its $9.4 million loss a year ago. Market share gains, enrollment, and continued demand for digital learning solutions fueled the higher education business, which saw revenue jump 14.1% year over year. Revenue for the K-12 segment, however, declined 1.4%. These two business units make up the bulk of McGraw Hill's business. The smaller international business noted weakness, with an 11.7% decrease in revenue, while sales in the global professional business held steady. For 2026, McGraw Hill sees revenue in a range of $1.98 billion to $2.04 billion. Listen to the earnings call here. Quantum Computing stock slips as losses accelerate Quantum Computing (QUBT) CEO Yuping Huang said that the company continued to make progress in growing commercial traction in the second quarter, but the industry is still focused on reaching technology milestones. Second quarter revenue totaled approximately $61,000, compared to $183,000 in the same period a year ago. The company reported a net loss of $36.5 million, or $0.26 per share. In Q2 2024, Quantum Computing posted a net loss of $5.2 million, or $0.06 per share. Quantum Computing stock fell 2.3% after hours in what's been a whipsaw year for quantum stocks. In June, the stock spiked 25% in one day after Nvidia CEO Jensen Huang said quantum computing "is reaching an inflection point." But the industry is still in its infancy. The other big quantum player, Rigetti Computing (RGTI), reported a technology breakthrough in its recent results but also big losses. "We are talking of a market that's hundreds of billions of dollars a decade or two from now," Rigetti CEO Subodh Kulkarni told Market Domination Overtime. "But right now, we are clearly in the R&D stage. We clearly need to perfect the technology to get to that big milestone in about four years, which we call quantum advantage." Read more about quantum computing here. Quantum Computing (QUBT) CEO Yuping Huang said that the company continued to make progress in growing commercial traction in the second quarter, but the industry is still focused on reaching technology milestones. Second quarter revenue totaled approximately $61,000, compared to $183,000 in the same period a year ago. The company reported a net loss of $36.5 million, or $0.26 per share. In Q2 2024, Quantum Computing posted a net loss of $5.2 million, or $0.06 per share. Quantum Computing stock fell 2.3% after hours in what's been a whipsaw year for quantum stocks. In June, the stock spiked 25% in one day after Nvidia CEO Jensen Huang said quantum computing "is reaching an inflection point." But the industry is still in its infancy. The other big quantum player, Rigetti Computing (RGTI), reported a technology breakthrough in its recent results but also big losses. "We are talking of a market that's hundreds of billions of dollars a decade or two from now," Rigetti CEO Subodh Kulkarni told Market Domination Overtime. "But right now, we are clearly in the R&D stage. We clearly need to perfect the technology to get to that big milestone in about four years, which we call quantum advantage." Read more about quantum computing here. Applied Materials stock sinks as policy uncertainty weighs on Q4 guidance Applied Materials (AMAT) recorded an earnings beat for the July quarter but said that the "dynamic" policy environment is creating uncertainty for the business. That led the chip equipment maker to issue a revenue forecast of $6.7 billion for the fourth quarter, below what the Street was expecting. 'We are expecting a decline in revenue in the fourth quarter driven by both digestion of capacity in China and nonlinear demand from leading-edge customers given market concentration and fab timing,' CFO Brice Hill said. 'We are navigating and adapting to the near-term uncertainties by leveraging our robust supply chain, global manufacturing footprint and deep customer relationships.' The company, whose clients include Taiwan Semiconductor and Intel, posted record revenue of $7.30 billion in Q3, up 8% year over year, surpassing estimates for $7.2 billion. Earnings per share of $2.48 also beat estimates by $0.12. Applied Materials stock fell 11% in after-hours trading. Read more here. Applied Materials (AMAT) recorded an earnings beat for the July quarter but said that the "dynamic" policy environment is creating uncertainty for the business. That led the chip equipment maker to issue a revenue forecast of $6.7 billion for the fourth quarter, below what the Street was expecting. 'We are expecting a decline in revenue in the fourth quarter driven by both digestion of capacity in China and nonlinear demand from leading-edge customers given market concentration and fab timing,' CFO Brice Hill said. 'We are navigating and adapting to the near-term uncertainties by leveraging our robust supply chain, global manufacturing footprint and deep customer relationships.' The company, whose clients include Taiwan Semiconductor and Intel, posted record revenue of $7.30 billion in Q3, up 8% year over year, surpassing estimates for $7.2 billion. Earnings per share of $2.48 also beat estimates by $0.12. Applied Materials stock fell 11% in after-hours trading. Read more here. Earnings and revenue beats lift Dillard's stock Dillard's (DDS) stock rose 7% on Thursday after the department store chain reported revenue and profit beats for the quarter. Net income fell to $72.8 million compared to $74.5 million a year ago, but earnings per share rose $0.07 year over year after the Arkansas-based company bought back stock. Revenue of $1.53 billion beat Wall Street estimates of $1.52 billion, according to S&P Global Market Intelligence. Earnings per share of $4.66 also topped estimates of $4.00 per share. Total retail sales were flat, with strength in juniors' and children's apparel as well as ladies' accessories and lingerie. The weakest performing category was home and furniture. Other major retailers, including Walmart (WMT), Target (TGT), and Macy's (M), will report second quarter results in the coming weeks, providing a more in-depth look into consumer spending habits. Dillard's stock is up 23% year to date. It has climbed 78% since its April 8 low. Dillard's (DDS) stock rose 7% on Thursday after the department store chain reported revenue and profit beats for the quarter. Net income fell to $72.8 million compared to $74.5 million a year ago, but earnings per share rose $0.07 year over year after the Arkansas-based company bought back stock. Revenue of $1.53 billion beat Wall Street estimates of $1.52 billion, according to S&P Global Market Intelligence. Earnings per share of $4.66 also topped estimates of $4.00 per share. Total retail sales were flat, with strength in juniors' and children's apparel as well as ladies' accessories and lingerie. The weakest performing category was home and furniture. Other major retailers, including Walmart (WMT), Target (TGT), and Macy's (M), will report second quarter results in the coming weeks, providing a more in-depth look into consumer spending habits. Dillard's stock is up 23% year to date. It has climbed 78% since its April 8 low.
