Bloomberg Daybreak: US and EU Reach Tariff Deal
1) The US and European Union agreed on a hard-fought deal that will see the bloc face 15% tariffs on most of its exports, including automobiles, staving off a trade war that could have delivered a hammer blow to the global economy.
2) US and Chinese officials are meeting Monday to extend their tariff detente beyond a mid-August deadline, and haggle over other ways to further defuse trade tensions.
3) Wall Street pros are staring down a pivotal week that will likely set the tone for the rest of the year in markets and the economy. First and foremost is the conclusion of the Federal Reserve's meeting on Wednesday, and although it isn't expected to cut interest rates, traders and investors will be poring over commentary for clues about the path ahead. Then there's a string of Big Tech earnings with Amazon.com Inc., Apple Inc., Meta Platforms Inc. and Microsoft Corp. all reporting. And sprinkled throughout are some key indicators on the state of the economy, from gross domestic product to nonfarm payrolls.
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Yahoo
24 minutes ago
- Yahoo
Logitech International SA (LOGI) Q1 2026 Earnings Call Highlights: Strong Sales Growth Amid ...
Net Sales Growth: 5% year over year in constant currency. Gross Margin: 42.1% for the quarter. Operating Expenses: Declined 2% year over year, representing 24.5% of net sales. Operating Cash Flow: Generated $125 million in cash from operations. Cash Balance: Ended the quarter with $1.5 billion. Shareholder Returns: $122 million returned through share repurchases. Video Collaboration Growth: 13% year over year. Personal Workspace Growth: 6% year over year, with double-digit growth in webcams and tablet accessories. Asia Pacific Growth: 15% year over year, led by China. EMEA Growth: 9% year over year. North America Performance: Declined 4% due to a pause in product shipments. Warning! GuruFocus has detected 1 Warning Sign with LOGI. Release Date: July 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Logitech International SA (NASDAQ:LOGI) reported a 5% year-over-year increase in net sales, demonstrating robust demand across both consumer and B2B segments. The company successfully launched nine new products, including the G522 wireless gaming headset and the Logitech Muse for the Apple Vision Pro, showcasing its commitment to innovation. Logitech's video collaboration segment grew by 13% year-over-year, driven by strong demand in North America. The Asia Pacific region saw a 15% year-over-year growth, with significant contributions from the Chinese market. Logitech maintained a strong balance sheet, ending the quarter with $1.5 billion in cash and generating $125 million in operating cash flow. Negative Points Logitech faced a 120 basis points decline in non-GAAP gross margin due to tariffs, higher promotional spend, and inventory reserve releases from the prior year. North American sales declined by 4%, primarily due to a pause in product shipments during price negotiations. The company anticipates continued uncertainty related to tariff policy, inflation, and consumer sentiment, which could impact future performance. Logitech expects a negative impact of 200 to 300 basis points from tariffs in the second quarter, partially offset by price increases. There is potential for temporary market share softening due to recent price increases, which could affect sales and consumer response. Q & A Highlights Q: What was the consumer reaction to Logitech's recent price increases, and do you plan to raise prices further to offset tariff impacts? A: Johanna Faber, CEO, explained that the positive impact of the price increase in Q1 was 50 basis points. The full implementation of the price increase was completed towards the end of the quarter, so it's too early to assess consumer reaction. The negotiations took 4 to 8 weeks, affecting in-stock levels temporarily, but inventories have since recovered, positioning Logitech well for upcoming sales periods. Q: Can you elaborate on the strength of the video collaboration business and its sustainability? A: Johanna Faber noted a 13% growth in video collaboration, driven by strong demand in North America. There might have been some advance buying due to tariffs, but overall, the business shows underlying strength with healthy inventory levels. Q: How did the B2B segment perform, and what are the financial implications of its growth? A: The B2B segment, including video conferencing and headsets, outpaced consumer demand despite a 10% price increase. Matteo Anversa, CFO, added that video conferencing is margin accretive, contributing positively to the company's overall financials. Q: What is the strategy for managing inventory and its impact on cash flow? A: Matteo Anversa stated that Logitech leveraged its strong balance sheet to pull in inventory ahead of tariffs, which helped achieve a higher gross margin. The strategy remains unchanged, aiming to protect the company and customers while maintaining strong cash flow and inventory management. Q: How does Logitech plan to achieve its 7-10% top-line growth target, and what is the timeline? A: Johanna Faber mentioned that while there are uncertainties, Logitech is pleased with current demand. The expansion into new verticals like education, healthcare, and government will take time, but core categories have shown potential to reach high single-digit growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
24 minutes ago
- Yahoo
Stock market today: Dow, S&P 500, Nasdaq rise as Wall Street awaits Fed decision, Big Tech results
US stocks held steady on Wednesday — a potentially pivotal day for markets that brings a Federal Reserve interest rate decision, a data deluge, and a flood of earnings highlighted by Microsoft (MSFT) and Meta (META). The Dow Jones Industrial Average (^DJI) nudged up 0.1%, while the S&P 500 (^GSPC) rose 0.2%. The tech-heavy Nasdaq Composite (^IXIC) ticked up 0.4%. The major gauges fell on Tuesday, leading the S&P 500 to snap its six-day record streak. Stocks are in a holding pattern as investors wait for the Fed's decision on interest rates, due at 2 p.m. ET at the end of its two-day meeting. With the central bank expected to hold rates steady, Wall Street will closely watch the Fed's "dot plot" given internal divisions over the path of policy. Focus is also on Chair Jerome Powell's remarks for signals on potential easing later this year, as President Trump presses for a rate cut. The Fed — and markets — received key signals on the US economy's health early Wednesday. US GDP grew at a 3% annual rate in the second quarter, rebounding from its first pullback in three years in Q1. Meanwhile, US private employers added more jobs than expected in July, with private payrolls also returning to growth after a surprise pullback in June. The rosier economic data prompted Trump to again call on the Fed to lower rates. "'Too Late' must now lower the rate," he wrote on social media hours before the central bank was set to release its policy statement. Investors also fielded a further flood of earnings from major companies, with Humana (HUM), and Kraft Heinz (KHC) getting a positive reception before the bell. Read more: Full earnings coverage in our live blog Wall Street is looking to after-hours reports from Microsoft and Meta to help rejuvenate markets. The companies are the first of the "Magnificent 7" group to report, and both are contending with growing scrutiny over whether their eye-popping AI investments are paying off. Looming ahead is Trump's Friday deadline for trade partners to strike deals with the US or face blanket tariff rates. Trump said goods from India would face a 25% tariff from Friday, as talks apparently stall between the countries. Read more: The latest on Trump's tariffs US-China trade talks wrapped up on Tuesday without an extension of the current tariff pause between the two, but Treasury Secretary Scott Bessent said Trump would make a "final call" on the matter soon. Trump says Powell must lower interest rates 'now' following GDP uptick President Trump used a return to GDP growth ahead of a widely expected Federal Reserve decision to keep monetary policy unchanged to say that Fed Chairman Jerome Powell must 'now' lower rates, Yahoo Finance's Ben Werschkul reports. Werschkul writes: Read the full story here. Marvell Technology soars 10% as Morgan Stanley analyst lifts price outlook Marvell Technology (MRVL) shares spiked Wednesday after Morgan Stanley (MS) analyst Joseph Moore lifted his price target on the stock to $80 from $73. In a note to clients on Tuesday, Moore cited the chipmaker's opportunity in the AI networking space. Networking products such as data center switches, ethernet controllers, and digital signal processors are required in data centers to receive and send data between AI chips and servers. Marvell makes both networking products and custom AI chips (also known as processors) called ASIC accelerators. "For both Broadcom (AVGO) and Marvell (MRVL), we expect AI upside this year to come from the networking side rather than processors [custom AI chips]," Moore wrote. Moore said Marvell "should be a direct beneficiary of NVIDIA's upcoming product cycle." That's because networking technology is needed to support upcoming purchases of Nvidia's latest Blackwell chips and servers. "Marvell is firmly in the AI winners camp," wrote Moore. Nvidia leads muted Mag 7 ahead of Microsoft, Meta earnings Nvidia (NVDA) shares moved up 1% early on Wednesday, leading the group of "Magnificent Seven" tech stocks ahead of earnings reports from Microsoft (MSFT) and Meta (META) after the bell. Amazon (AMZN), Tesla (TSLA), and Microsoft stock prices wavered around the flat line, while Meta and Google (GOOG) shares rose less than 1%. Apple (AAPL) slipped around 0.1% in lackluster trade for US stocks more broadly. Nvidia is up roughly 4% over the past five trading sessions, compared with the tech heavy Nasdaq Composite's (^IXIC) 0.6% gain over the same period. Stocks steady at the open US stocks held steady at the start of Wednesday's trading session ahead of the Federal Reserve's interest-rate decision and earnings from Big Tech names Microsoft (MSFT) and Meta (META). The Dow Jones Industrial Average (^DJI) wavered along the flat line, while the S&P 500 (^GSPC) nudged nearly 0.1% higher. The tech-heavy Nasdaq Composite (^IXIC) ticked up roughly 0.2%. The indices had fallen on Tuesday, with the S&P 500 ending its six-day record streak. Jobs data, GDP both top forecasts in a strong morning for the US economy Data from ADP on private payroll growth and the first look at second quarter GDP growth out Wednesday morning both topped forecasts, a sign of continued resilience in the US economy. Private payroll growth in July tallied 104,000 according to the latest data from ADP, more than the 77,000 jobs that private employers were expected to add and a rebound from the 23,000 jobs that were cut in the sector last month. "Our hiring and pay data are broadly indicative of a healthy economy," said Nela Richardson, chief economist at ADP. "Employers have grown more optimistic that consumers, the backbone of the economy, will remain resilient." Fifteen minutes after ADP's data was released, the BEA put out its first look at GDP growth in the second quarter, which showed the US economy grew at an annualized rate of 3% in the second quarter, faster than the 2.6% that had been expected by economists. In the first three months of the year, the US economy contracted at a rate of 0.5%. The BEA noted in its release the rebound in the second quarter was largely a result of decreased imports, which had weighed on growth in the first quarter as businesses increased orders ahead of expected tariffs. In response to the data, longer-term Treasury yields ticked slightly higher while futures remained little-changed ahead of the Federal Reserve's policy announcement set for 2:00 p.m. ET. In a post on Truth Social following the GDP data, President Trump again called on the Fed to cut rates. The central bank is widely expected to make no change to its interest rate policy later today. Premarket trending tickers: Novo Nordisk stock falls, Starbucks stock pops Here's a look at some of the top stocks trending in premarket trading: Novo Nordisk (NVO): The stock continued to sink on Wednesday, falling 4% premarket after a 21% wipeout on Tuesday. The drugmaker cut its full-year sales and operating profit guidance again, related to lower growth expectations for its diabetes and weight-loss drugs, Wegovy and Ozempic. Eli Lilly stock also fell Tuesday but was up 1% Wednesday morning. Starbucks (SBUX): Shares of the coffee giant popped 5% premarket after the company reported its sixth straight quarterly sales decline. But things weren't as bad as investors feared, and CEO Brian Niccol assured Wall Street that the company was "ahead of schedule" in its turnaround plan. V.F. Corp (VFC): The Vans parent's stock soared nearly 20% after the company beat first quarter revenue estimates on Wednesday, aided by an uptick in demand for its apparel and footwear products. Palo Alto Networks (PANW): The software company is in final talks to acquire Israeli cybersecurity provider CyberArk, the Wall Street Journal reported, and the deal could be finalized as early as this week. The deal could place a value north of $20 billion on CyberArk, potentially making it one of the largest tech takeovers this year. Shares of Palo Alto Networks rose 0.4% in premarket trading. Meta (META) and Microsoft (MSFT) stocks rose modestly ahead of their quarterly results, which are set to be released after the closing bell on Wednesday. Investors will be looking to the two Big Tech companies for signs of AI sales growth and monetization. Read live coverage of corporate earnings here. A divided Fed is expected to hold rates steady, defying Trump's calls for a cut The Federal Reserve is widely expected to hold interest rates steady on Wednesday, though the central bank remains internally divided over the path of monetary policy amid the Trump administration's pressure on the Fed. Yahoo Finance's Jennifer Schonberger reports: Read more here. Whirlpool is championing the tariffs that have hammered its quarter Yahoo Finance's Hamza Shaban digs into the tariffs story for Whirlpool (WHR) in today's Morning Brief: Read more here on why Whirlpool is looking past tariff setbacks. Good morning. Here's what's happening today. Economic data: Federal Reserve monetary policy decision; GDP annualized; ADP private payrolls (July); (second quarter); Pending home sales, (June); MBA Mortgage Applications (July 25); Minnesota Chicago PMI (July) Earnings: Meta (META), Microsoft (MSFT), Arm (ARM), Altria (MO), Carvana (CVNA), Ford (F), Generac (GNRC), Harley Davidson (HOG), Hershey (HSY), Humana (HUM), The Kraft Heinz Company (KHC), Qualcomm (QCOM), Robinhood (HOOD) Here are some of the biggest stories you may have missed overnight and early this morning: Fed set to hold rates steady, defying Trump's call for a cut Whirlpool is championing the tariffs that have hammered its quarter Meta to report Q2 earnings amid AI investment push Microsoft to report Q4 earnings as Wall Street looks for continued AI growth Deal-hunting Americans are putting corporates on watch Trump eyes 25% India tariff, US-China truce in the balance Wall Street's riding high on relief, not results: Strategist Tesla signs $4.3B battery deal, cuts reliance on China Meta and Microsoft are set to kick off this week's Big Tech earnings Yahoo Finance's Dan Howley has previews of both Meta (META) and Microsoft (MSFT), whose reports come Wednesday. For Meta, it's all about the AI hiring and spree: And Microsoft remains chugging along, its stock up more than 20% this year. Dan says Alphabet's (GOOG, GOOGL) well-received results last week could bode well for Microsoft, as investors focus on AI-driven sales gains: Read more on Meta and Microsoft. Trending tickers: Seagate, Avis and Sarepta Here are some top stocks trending on Yahoo Finance in premarket trading: Seagate Technology (STX) shares fell more than 6% on Wednesday before the bell after the company's first-quarter revenue forecast fell below Wall Street estimates on Tuesday. Seagate earnings were hurt by weak demand for its storage devices amid ongoing uncertainty in the personal computer market. Avis (CAR) stock fell 5% premarket following the car rental company's earnings results on Tuesday. It was also announced that Alphabet (GOOG, GOOGL)-owned company Waymo plans to launch a robotaxi service next year in Dallas and will partner with Avis Budget Group to manage its fleet of all-electric autonomous Jaguar I-Pace vehicles. Sarepta Therapeutics (SRPT) stock rose 10% in premarket trading on Wednesday following the news that it will now start shipping its top-selling muscular dystrophy therapy, Elevidys, after the US Food and Drug Administration (FDA) reversed its request for a voluntary pause late Monday. Starbucks stock pops after US sales fall less than feared Shares of Starbucks (SBUX) rose in premarket despite a quarterly profit miss after sales in the coffee chain's US outlets proved healthier than expected. Yahoo Finance's Brooke DiPalma reports: Read more here. Major Asian gauges see slight boost from US-China trade talks Markets across Asia saw tentative gains despite uncertainty in the aftermath of US-China trade talks. The two-day talks between the two economic powerhouses to discuss tariffs did not yield hard results, but representatives from both nations expressed positivity about the dialogue. Reuters reports: Read more here. Samsung stock pops on Tesla deal Samsung Electronics ( has seen the benefits of a wave of market optimism following the unexpected announcement of a chipmaking deal with Tesla (TSLA) worth $16.5 billion. Bloomberg reports: Read more here. Oil prices hold after Trump-Russia row Oil prices held gains overnight Tuesday after jumping 3% Monday, with supply issues in focus. Trump's continued pressure on Russia over the Ukraine war has raised concerns over how economic sanctions will impact the Slavic state's ability to produce oil at the current rate. Reuters reports: Read more here. Trump says Powell must lower interest rates 'now' following GDP uptick President Trump used a return to GDP growth ahead of a widely expected Federal Reserve decision to keep monetary policy unchanged to say that Fed Chairman Jerome Powell must 'now' lower rates, Yahoo Finance's Ben Werschkul reports. Werschkul writes: Read the full story here. President Trump used a return to GDP growth ahead of a widely expected Federal Reserve decision to keep monetary policy unchanged to say that Fed Chairman Jerome Powell must 'now' lower rates, Yahoo Finance's Ben Werschkul reports. Werschkul writes: Read the full story here. Marvell Technology soars 10% as Morgan Stanley analyst lifts price outlook Marvell Technology (MRVL) shares spiked Wednesday after Morgan Stanley (MS) analyst Joseph Moore lifted his price target on the stock to $80 from $73. In a note to clients on Tuesday, Moore cited the chipmaker's opportunity in the AI networking space. Networking products such as data center switches, ethernet controllers, and digital signal processors are required in data centers to receive and send data between AI chips and servers. Marvell makes both networking products and custom AI chips (also known as processors) called ASIC accelerators. "For both Broadcom (AVGO) and Marvell (MRVL), we expect AI upside this year to come from the networking side rather than processors [custom AI chips]," Moore wrote. Moore said Marvell "should be a direct beneficiary of NVIDIA's upcoming product cycle." That's because networking technology is needed to support upcoming purchases of Nvidia's latest Blackwell chips and servers. "Marvell is firmly in the AI winners camp," wrote Moore. Marvell Technology (MRVL) shares spiked Wednesday after Morgan Stanley (MS) analyst Joseph Moore lifted his price target on the stock to $80 from $73. In a note to clients on Tuesday, Moore cited the chipmaker's opportunity in the AI networking space. Networking products such as data center switches, ethernet controllers, and digital signal processors are required in data centers to receive and send data between AI chips and servers. Marvell makes both networking products and custom AI chips (also known as processors) called ASIC accelerators. "For both Broadcom (AVGO) and Marvell (MRVL), we expect AI upside this year to come from the networking side rather than processors [custom AI chips]," Moore wrote. Moore said Marvell "should be a direct beneficiary of NVIDIA's upcoming product cycle." That's because networking technology is needed to support upcoming purchases of Nvidia's latest Blackwell chips and servers. "Marvell is firmly in the AI winners camp," wrote Moore. Nvidia leads muted Mag 7 ahead of Microsoft, Meta earnings Nvidia (NVDA) shares moved up 1% early on Wednesday, leading the group of "Magnificent Seven" tech stocks ahead of earnings reports from Microsoft (MSFT) and Meta (META) after the bell. Amazon (AMZN), Tesla (TSLA), and Microsoft stock prices wavered around the flat line, while Meta and Google (GOOG) shares rose less than 1%. Apple (AAPL) slipped around 0.1% in lackluster trade for US stocks more broadly. Nvidia is up roughly 4% over the past five trading sessions, compared with the tech heavy Nasdaq Composite's (^IXIC) 0.6% gain over the same period. Nvidia (NVDA) shares moved up 1% early on Wednesday, leading the group of "Magnificent Seven" tech stocks ahead of earnings reports from Microsoft (MSFT) and Meta (META) after the bell. Amazon (AMZN), Tesla (TSLA), and Microsoft stock prices wavered around the flat line, while Meta and Google (GOOG) shares rose less than 1%. Apple (AAPL) slipped around 0.1% in lackluster trade for US stocks more broadly. Nvidia is up roughly 4% over the past five trading sessions, compared with the tech heavy Nasdaq Composite's (^IXIC) 0.6% gain over the same period. Stocks steady at the open US stocks held steady at the start of Wednesday's trading session ahead of the Federal Reserve's interest-rate decision and earnings from Big Tech names Microsoft (MSFT) and Meta (META). The Dow Jones Industrial Average (^DJI) wavered along the flat line, while the S&P 500 (^GSPC) nudged nearly 0.1% higher. The tech-heavy Nasdaq Composite (^IXIC) ticked up roughly 0.2%. The indices had fallen on Tuesday, with the S&P 500 ending its six-day record streak. US stocks held steady at the start of Wednesday's trading session ahead of the Federal Reserve's interest-rate decision and earnings from Big Tech names Microsoft (MSFT) and Meta (META). The Dow Jones Industrial Average (^DJI) wavered along the flat line, while the S&P 500 (^GSPC) nudged nearly 0.1% higher. The tech-heavy Nasdaq Composite (^IXIC) ticked up roughly 0.2%. The indices had fallen on Tuesday, with the S&P 500 ending its six-day record streak. Jobs data, GDP both top forecasts in a strong morning for the US economy Data from ADP on private payroll growth and the first look at second quarter GDP growth out Wednesday morning both topped forecasts, a sign of continued resilience in the US economy. Private payroll growth in July tallied 104,000 according to the latest data from ADP, more than the 77,000 jobs that private employers were expected to add and a rebound from the 23,000 jobs that were cut in the sector last month. "Our hiring and pay data are broadly indicative of a healthy economy," said Nela Richardson, chief economist at ADP. "Employers have grown more optimistic that consumers, the backbone of the economy, will remain resilient." Fifteen minutes after ADP's data was released, the BEA put out its first look at GDP growth in the second quarter, which showed the US economy grew at an annualized rate of 3% in the second quarter, faster than the 2.6% that had been expected by economists. In the first three months of the year, the US economy contracted at a rate of 0.5%. The BEA noted in its release the rebound in the second quarter was largely a result of decreased imports, which had weighed on growth in the first quarter as businesses increased orders ahead of expected tariffs. In response to the data, longer-term Treasury yields ticked slightly higher while futures remained little-changed ahead of the Federal Reserve's policy announcement set for 2:00 p.m. ET. In a post on Truth Social following the GDP data, President Trump again called on the Fed to cut rates. The central bank is widely expected to make no change to its interest rate policy later today. Data from ADP on private payroll growth and the first look at second quarter GDP growth out Wednesday morning both topped forecasts, a sign of continued resilience in the US economy. Private payroll growth in July tallied 104,000 according to the latest data from ADP, more than the 77,000 jobs that private employers were expected to add and a rebound from the 23,000 jobs that were cut in the sector last month. "Our hiring and pay data are broadly indicative of a healthy economy," said Nela Richardson, chief economist at ADP. "Employers have grown more optimistic that consumers, the backbone of the economy, will remain resilient." Fifteen minutes after ADP's data was released, the BEA put out its first look at GDP growth in the second quarter, which showed the US economy grew at an annualized rate of 3% in the second quarter, faster than the 2.6% that had been expected by economists. In the first three months of the year, the US economy contracted at a rate of 0.5%. The BEA noted in its release the rebound in the second quarter was largely a result of decreased imports, which had weighed on growth in the first quarter as businesses increased orders ahead of expected tariffs. In response to the data, longer-term Treasury yields ticked slightly higher while futures remained little-changed ahead of the Federal Reserve's policy announcement set for 2:00 p.m. ET. In a post on Truth Social following the GDP data, President Trump again called on the Fed to cut rates. The central bank is widely expected to make no change to its interest rate policy later today. Premarket trending tickers: Novo Nordisk stock falls, Starbucks stock pops Here's a look at some of the top stocks trending in premarket trading: Novo Nordisk (NVO): The stock continued to sink on Wednesday, falling 4% premarket after a 21% wipeout on Tuesday. The drugmaker cut its full-year sales and operating profit guidance again, related to lower growth expectations for its diabetes and weight-loss drugs, Wegovy and Ozempic. Eli Lilly stock also fell Tuesday but was up 1% Wednesday morning. Starbucks (SBUX): Shares of the coffee giant popped 5% premarket after the company reported its sixth straight quarterly sales decline. But things weren't as bad as investors feared, and CEO Brian Niccol assured Wall Street that the company was "ahead of schedule" in its turnaround plan. V.F. Corp (VFC): The Vans parent's stock soared nearly 20% after the company beat first quarter revenue estimates on Wednesday, aided by an uptick in demand for its apparel and footwear products. Palo Alto Networks (PANW): The software company is in final talks to acquire Israeli cybersecurity provider CyberArk, the Wall Street Journal reported, and the deal could be finalized as early as this week. The deal could place a value north of $20 billion on CyberArk, potentially making it one of the largest tech takeovers this year. Shares of Palo Alto Networks rose 0.4% in premarket trading. Meta (META) and Microsoft (MSFT) stocks rose modestly ahead of their quarterly results, which are set to be released after the closing bell on Wednesday. Investors will be looking to the two Big Tech companies for signs of AI sales growth and monetization. Read live coverage of corporate earnings here. Here's a look at some of the top stocks trending in premarket trading: Novo Nordisk (NVO): The stock continued to sink on Wednesday, falling 4% premarket after a 21% wipeout on Tuesday. The drugmaker cut its full-year sales and operating profit guidance again, related to lower growth expectations for its diabetes and weight-loss drugs, Wegovy and Ozempic. Eli Lilly stock also fell Tuesday but was up 1% Wednesday morning. Starbucks (SBUX): Shares of the coffee giant popped 5% premarket after the company reported its sixth straight quarterly sales decline. But things weren't as bad as investors feared, and CEO Brian Niccol assured Wall Street that the company was "ahead of schedule" in its turnaround plan. V.F. Corp (VFC): The Vans parent's stock soared nearly 20% after the company beat first quarter revenue estimates on Wednesday, aided by an uptick in demand for its apparel and footwear products. Palo Alto Networks (PANW): The software company is in final talks to acquire Israeli cybersecurity provider CyberArk, the Wall Street Journal reported, and the deal could be finalized as early as this week. The deal could place a value north of $20 billion on CyberArk, potentially making it one of the largest tech takeovers this year. Shares of Palo Alto Networks rose 0.4% in premarket trading. Meta (META) and Microsoft (MSFT) stocks rose modestly ahead of their quarterly results, which are set to be released after the closing bell on Wednesday. Investors will be looking to the two Big Tech companies for signs of AI sales growth and monetization. Read live coverage of corporate earnings here. A divided Fed is expected to hold rates steady, defying Trump's calls for a cut The Federal Reserve is widely expected to hold interest rates steady on Wednesday, though the central bank remains internally divided over the path of monetary policy amid the Trump administration's pressure on the Fed. Yahoo Finance's Jennifer Schonberger reports: Read more here. The Federal Reserve is widely expected to hold interest rates steady on Wednesday, though the central bank remains internally divided over the path of monetary policy amid the Trump administration's pressure on the Fed. Yahoo Finance's Jennifer Schonberger reports: Read more here. Whirlpool is championing the tariffs that have hammered its quarter Yahoo Finance's Hamza Shaban digs into the tariffs story for Whirlpool (WHR) in today's Morning Brief: Read more here on why Whirlpool is looking past tariff setbacks. Yahoo Finance's Hamza Shaban digs into the tariffs story for Whirlpool (WHR) in today's Morning Brief: Read more here on why Whirlpool is looking past tariff setbacks. Good morning. Here's what's happening today. Economic data: Federal Reserve monetary policy decision; GDP annualized; ADP private payrolls (July); (second quarter); Pending home sales, (June); MBA Mortgage Applications (July 25); Minnesota Chicago PMI (July) Earnings: Meta (META), Microsoft (MSFT), Arm (ARM), Altria (MO), Carvana (CVNA), Ford (F), Generac (GNRC), Harley Davidson (HOG), Hershey (HSY), Humana (HUM), The Kraft Heinz Company (KHC), Qualcomm (QCOM), Robinhood (HOOD) Here are some of the biggest stories you may have missed overnight and early this morning: Fed set to hold rates steady, defying Trump's call for a cut Whirlpool is championing the tariffs that have hammered its quarter Meta to report Q2 earnings amid AI investment push Microsoft to report Q4 earnings as Wall Street looks for continued AI growth Deal-hunting Americans are putting corporates on watch Trump eyes 25% India tariff, US-China truce in the balance Wall Street's riding high on relief, not results: Strategist Tesla signs $4.3B battery deal, cuts reliance on China Economic data: Federal Reserve monetary policy decision; GDP annualized; ADP private payrolls (July); (second quarter); Pending home sales, (June); MBA Mortgage Applications (July 25); Minnesota Chicago PMI (July) Earnings: Meta (META), Microsoft (MSFT), Arm (ARM), Altria (MO), Carvana (CVNA), Ford (F), Generac (GNRC), Harley Davidson (HOG), Hershey (HSY), Humana (HUM), The Kraft Heinz Company (KHC), Qualcomm (QCOM), Robinhood (HOOD) Here are some of the biggest stories you may have missed overnight and early this morning: Fed set to hold rates steady, defying Trump's call for a cut Whirlpool is championing the tariffs that have hammered its quarter Meta to report Q2 earnings amid AI investment push Microsoft to report Q4 earnings as Wall Street looks for continued AI growth Deal-hunting Americans are putting corporates on watch Trump eyes 25% India tariff, US-China truce in the balance Wall Street's riding high on relief, not results: Strategist Tesla signs $4.3B battery deal, cuts reliance on China Meta and Microsoft are set to kick off this week's Big Tech earnings Yahoo Finance's Dan Howley has previews of both Meta (META) and Microsoft (MSFT), whose reports come Wednesday. For Meta, it's all about the AI hiring and spree: And Microsoft remains chugging along, its stock up more than 20% this year. Dan says Alphabet's (GOOG, GOOGL) well-received results last week could bode well for Microsoft, as investors focus on AI-driven sales gains: Read more on Meta and Microsoft. Yahoo Finance's Dan Howley has previews of both Meta (META) and Microsoft (MSFT), whose reports come Wednesday. For Meta, it's all about the AI hiring and spree: And Microsoft remains chugging along, its stock up more than 20% this year. Dan says Alphabet's (GOOG, GOOGL) well-received results last week could bode well for Microsoft, as investors focus on AI-driven sales gains: Read more on Meta and Microsoft. Trending tickers: Seagate, Avis and Sarepta Here are some top stocks trending on Yahoo Finance in premarket trading: Seagate Technology (STX) shares fell more than 6% on Wednesday before the bell after the company's first-quarter revenue forecast fell below Wall Street estimates on Tuesday. Seagate earnings were hurt by weak demand for its storage devices amid ongoing uncertainty in the personal computer market. Avis (CAR) stock fell 5% premarket following the car rental company's earnings results on Tuesday. It was also announced that Alphabet (GOOG, GOOGL)-owned company Waymo plans to launch a robotaxi service next year in Dallas and will partner with Avis Budget Group to manage its fleet of all-electric autonomous Jaguar I-Pace vehicles. Sarepta Therapeutics (SRPT) stock rose 10% in premarket trading on Wednesday following the news that it will now start shipping its top-selling muscular dystrophy therapy, Elevidys, after the US Food and Drug Administration (FDA) reversed its request for a voluntary pause late Monday. Here are some top stocks trending on Yahoo Finance in premarket trading: Seagate Technology (STX) shares fell more than 6% on Wednesday before the bell after the company's first-quarter revenue forecast fell below Wall Street estimates on Tuesday. Seagate earnings were hurt by weak demand for its storage devices amid ongoing uncertainty in the personal computer market. Avis (CAR) stock fell 5% premarket following the car rental company's earnings results on Tuesday. It was also announced that Alphabet (GOOG, GOOGL)-owned company Waymo plans to launch a robotaxi service next year in Dallas and will partner with Avis Budget Group to manage its fleet of all-electric autonomous Jaguar I-Pace vehicles. Sarepta Therapeutics (SRPT) stock rose 10% in premarket trading on Wednesday following the news that it will now start shipping its top-selling muscular dystrophy therapy, Elevidys, after the US Food and Drug Administration (FDA) reversed its request for a voluntary pause late Monday. Starbucks stock pops after US sales fall less than feared Shares of Starbucks (SBUX) rose in premarket despite a quarterly profit miss after sales in the coffee chain's US outlets proved healthier than expected. Yahoo Finance's Brooke DiPalma reports: Read more here. Shares of Starbucks (SBUX) rose in premarket despite a quarterly profit miss after sales in the coffee chain's US outlets proved healthier than expected. Yahoo Finance's Brooke DiPalma reports: Read more here. Major Asian gauges see slight boost from US-China trade talks Markets across Asia saw tentative gains despite uncertainty in the aftermath of US-China trade talks. The two-day talks between the two economic powerhouses to discuss tariffs did not yield hard results, but representatives from both nations expressed positivity about the dialogue. Reuters reports: Read more here. Markets across Asia saw tentative gains despite uncertainty in the aftermath of US-China trade talks. The two-day talks between the two economic powerhouses to discuss tariffs did not yield hard results, but representatives from both nations expressed positivity about the dialogue. Reuters reports: Read more here. Samsung stock pops on Tesla deal Samsung Electronics ( has seen the benefits of a wave of market optimism following the unexpected announcement of a chipmaking deal with Tesla (TSLA) worth $16.5 billion. Bloomberg reports: Read more here. Samsung Electronics ( has seen the benefits of a wave of market optimism following the unexpected announcement of a chipmaking deal with Tesla (TSLA) worth $16.5 billion. Bloomberg reports: Read more here. Oil prices hold after Trump-Russia row Oil prices held gains overnight Tuesday after jumping 3% Monday, with supply issues in focus. Trump's continued pressure on Russia over the Ukraine war has raised concerns over how economic sanctions will impact the Slavic state's ability to produce oil at the current rate. Reuters reports: Read more here. Oil prices held gains overnight Tuesday after jumping 3% Monday, with supply issues in focus. Trump's continued pressure on Russia over the Ukraine war has raised concerns over how economic sanctions will impact the Slavic state's ability to produce oil at the current rate. Reuters reports: Read more here.
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Dissent rises at the Federal Reserve among Trump appointees, but interest rate cut is unlikely
WASHINGTON (AP) — Two top Federal Reserve officials could dissent from the central bank's likely decision Wednesday to hold its key interest rate steady, a sign of division at the Fed that reflects the economy's muddy outlook and possibly the jockeying to replace Chair Jerome Powell when his term ends in May 2026. Based on their public comments in the past two months, it's possible that governors Christopher Waller and Michelle Bowman could vote against leaving the short-term rate at about 4.3%. If so, it would be the first time two of the seven governors at the Fed have dissented in over three decades. The division could be a preview of what might happen after Powell steps down, if President Donald Trump appoints a replacement who pushes for the much lower interest rates the White House desires. Other Fed officials could push back if a future chair sought to cut rates by more than economic conditions would otherwise support. On Wednesday, Trump seized on a report showing the economy expanded at a 3% annual rate in the second quarter as evidence that growth is accelerating and called on Powell to cut rates. Yet the Fed typically reduces borrowing costs when the economy is faltering and threatening to send unemployment higher. The economy isn't necessarily doing as well as the 3% figure suggests. It follows a negative reading in the first three months of the year, when the economy shrank at a 0.5% annual rate. Most economists are averaging the two figures to get a growth rate of about 1.25% for the first half of the year. If that sluggishness continues, the Fed could cut rates as early as September. For now, any dissent also would likely reflect that there are at least two different ways to see the U.S. economy, which is clearly in flux. The first is the way that most Fed officials have described it: Unemployment is at a low 4.1%, while the economy is growing, albeit modestly, and inflation did tick up in June, largely because of tariffs. So, the thinking goes, why not stand pat on rates and see what happens next? If inflation continues to heat up, a rate cut could make things worse — the Fed typically raises borrowing costs to combat inflation. And as long as the economy is doing well, there is no need to cut to support growth. The other view is more worrisome: There are signs the economy is weakening, such as sluggish hiring, slower consumer spending, and pretty modest overall growth. The economy, in the first six months of the year, probably expanded at an annual rate of about 1.5%. At the same time, tariffs have lifted inflation by less than many economists had feared, so far. This is the view of the economy that Waller sketched out in a speech earlier this month. 'Private-sector payroll growth is near stall speed,' Waller said. 'We should not wait until the labor market deteriorates before we cut the policy rate.' When the Fed cuts its rate, it often — but not always — results in lower borrowing costs for mortgages, auto loans and credit cards. Some economists agree with Waller's concerns about the job market. Excluding government hiring, the economy added just 74,000 jobs in June, with most of those gains occurring in health care. 'We are in a much slower job hiring backdrop than most people appreciate,' said Tom Porcelli, chief U.S. economist at PGIM Fixed Income. Waller was appointed to the Fed's seven-member governing board by Trump during the president's first term. He has often been mentioned as a potential replacement for Powell. Waller has underscored in several speeches that he does not think Trump's tariffs will lead to persistently higher inflation. Bowman, the vice chair for regulation, was also appointed during Trump's first term. She suggested in June that the Fed should soon reduce borrowing costs. Bowman is also a possible Powell replacement, though more of a long shot. Michael Feroli, an economist at JPMorgan Chase, said in a note to clients this week if the pair were to dissent, 'it would say more about auditioning for the Fed chair appointment than about economic conditions.' The Fed's two-day meeting comes after a week of extraordinary interactions with the Trump White House, which has accused Powell of mismanaging an extensive, $2.5 billion renovation of two office buildings. Trump suggested two weeks ago that the rising cost for the project could be a 'firing offense' but has since backed off that characterization. Notably, Trump argues that the Fed should cut because the economy is doing very well, which is a different viewpoint than nearly all economists, who say that a healthy, growing economy doesn't need rate cuts. 'If your economy is hot, you're supposed to have higher short-term rates,' Porcelli said. Christopher Rugaber, The Associated Press Sign in to access your portfolio
