Why Jim Cramer backs Meta's AI spending — and the latest on Apple and Amazon ahead of earnings
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Stocks Rally on Positive Earnings and Hopes for an End to Russia-Ukraine War
The S&P 500 Index ($SPX) (SPY) today is up +0.59%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.33%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.70%. September E-mini S&P futures (ESU25) are up +0.54%, and September E-mini Nasdaq futures (NQU25) are up +0.67%. Stock indexes are climbing today, with the Nasdaq 100 posting a new record high. Stocks are supported by robust corporate earnings results and hopes that the Fed will soon cut interest rates to support the economy. More News from Barchart Robinhood Stock Seemingly Can't Be Stopped in 2025. Is It Too Late to Buy HOOD Here? Dear Ford Stock Fans, Mark Your Calendar for August 11 Cathie Wood Is Buying Shares of This Little-Known Ethereum Treasury Company. Should You? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Monster Beverage is up more than +7% after beating Q2 EPS estimates. Also, Expedia Group is up more than +4% after reporting better-than-expected Q2 EPS and raising its full-year forecast. On the negative side, Trade Desk is down more than -38% after giving an outlook that analysts said was underwhelming. Also, Microchip Technology is down more than -4% after pausing most factory expansions and cutting its full-year capital expenditures. Stocks are seeing support from speculation that weaker-than-expected US economic news and recent dovish Fed commentary will push the Fed to lower interest rates as soon as next month. On Thursday, President Trump nominated Stephen Miran to be a temporary replacement for Adrianna Kugler as Fed Governor until the end of the year. Miran is currently chairman of the Council of Economic Advisors and is seen as dovish and supporting President Trump's calls for lower interest rates. The chances of a Fed rate cut at the September FOMC meeting rose to 91% from 40% last Friday. Stocks extended their gains today as market sentiment improved after Bloomberg News reported that the US and Russia are aiming for a deal to end the war in Ukraine. Russia said it would halt its offensive in the Kherson and Zaporizhzhia regions of Ukraine along the current battlelines as part of the deal if Ukraine cedes its entire eastern Donbas area to Russia as well as Crimea. In recent tariff news, President Trump announced Wednesday that he will impose a 100% tariff on semiconductor imports. Still, companies would be eligible for exemptions if they demonstrate a commitment to building their products in the US. However, the US will levy a separate tax on imports of electronic products that employ semiconductors. Also, President Trump announced Wednesday that he will double tariffs on US imports from India to 50% from the current 25% tariff, due to India's purchases of Russian oil. On Tuesday, Mr. Trump said that US tariffs on pharmaceutical imports would be announced 'within the next week or so.' According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced. Federal funds futures prices are discounting the chances for a -25 bp rate cut at 91% at the September 16-17 FOMC meeting and 64% at the following meeting on October 28-29. Earnings reports released thus far suggest that S&P 500 earnings for Q2 are on track to rise +9.1% y/y, much better than the pre-season expectations of +2.8% y/y and the most in four years, according to Bloomberg Intelligence. With over 79% of S&P 500 firms having reported Q2 earnings, around 83% exceeded profit estimates. Overseas stock markets today are mixed. The Euro Stoxx 50 is up +0.33%. China's Shanghai Composite closed down -0.12%. Japan's Nikkei Stock 225 climbed to a 2-week high and closed up sharply by +1.85%. Interest Rates September 10-year T-notes (ZNU25) today are down by -7 ticks. The 10-year T-note yield is up +2.7 bp to 4.277%. T-notes are moving lower today as strength in stocks has reduced safe-haven demand for government securities. Also, rising inflation expectations are negative for T-notes as the 10-year breakeven inflation rate rose to a 1-week high today of 2.388%. Losses in T-notes are limited after President Trump late Thursday nominated Stephen Miran for Fed Governor to replace Adriana Kugler for the rest of the year. Miran views President Trump's policies as disinflationary and would support a more dovish Fed policy. European government bond yields today are moving higher. The 10-year German bund yield is up +5.5 bp to 2.685%. The 10-year UK gilt yield is up +5.0 bp to 4.507%. Swaps are discounting the chances at 9% for a -25 bp rate cut by the ECB at the September 11 policy meeting. US Stock Movers Gen Digital (GEN) is up more than +10% to lead gainers in the S&P 500 after reporting Q1 revenue of $1.26 billion, stronger than the consensus of $1.19 billion, and forecasting full-year revenue of $4.80-$4.90 billion, better than the consensus of $4.76 billion. Gilead Sciences (GILD) is up more than +8% to lead gainers in the Nasdaq 100 after reporting Q2 product sales of $7.05 billion, above the consensus of $6.94 billion, and raising its full-year product sales forecast to $28.3 billion-$28.7 billion from a previous forecast of $28.2 billion-$28.6 billion. Monster Beverage (MNST) is up more than +7% after reporting Q2 net sales of $2.11 billion, stronger than the consensus of $2.08 billion. Expedia Group (EXPE) is up more than +4% after reporting Q2 revenue of $3.79 billion, better than the consensus of $3.71 billion, and raising its full-year gross bookings forecast to +3% to +5% from a previous estimate of +2% to +4%, the midpoint above the consensus of +3.3%. Live Nation Entertainment (LYV) is up more than +4% after reporting Q2 revenue of $7.01 billion, above the consensus of $6.89 billion. Tesla (TSLA) is up more than +3% after it was granted a rideshare permit in Texas for operating its robotaxi service. Tempus AI (TEM) is up more than +3% after reporting Q2 net revenue of $314.6 million, stronger than the consensus of $297.7 million. Maplebear (CART) is up more than +2% after reporting Q2 gross transaction value of $9.08 billion, above the consensus of $8.94 billion, and forecasting Q3 gross transaction value of $9.00 billion-$9.15 billion, better than the consensus of $8.96 billion. Trade Desk (TTD) is down more than -38% to lead losers in the S&P 500 and Nasdaq 100 after reporting Q2 adjusted EPS of 41 cents, above the consensus of 40 cents but considered underwhelming by several analysts. Sweetgreen (SG) is down more than -27% after reporting a Q2 EPS loss of -20 cents, wider than the consensus of -13 cents, and cut its full-year same-store sales forecast to down -4% to -6% from a previous forecast of no change. Twilio (TWLO) is down more than -17% after forecasting Q3 adjusted EPS of $1.01-$1.06, weaker than the consensus of $1.14. Goodyear Tire & Rubber (GT) is down more than -16% after reporting an unexpected Q2 loss per share of -17 cents versus expectations of a +19 cent profit. Pinterest (PINS) is down more than -8% after reporting Q2 adjusted EPS of 33 cents, below the consensus of 36 cents. GoDaddy (GDDY) is down more than -6% after it reported Q2 revenue of $1.20 billion, below the consensus of $1.21 billion. Microchip Technology (MCHP) is down more than -3% after forecasting Q2 net sales of $1.11 billion-$1.15 billion, the midpoint right on the consensus of $1.13 billion, considered disappointing by analysts. Earnings Reports (8/8/2025) Freedom Holding Corp/NV (FRHC), Lamar Advertising Co (LAMR), Liberty Media Corp-Liberty Live (LLYVA), Skechers USA Inc (SKX), Sotera Health Co (SHC), Tempus AI Inc (TEM), Under Armour Inc (UAA), Wendy's Co/The (WEN). On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
8 minutes ago
- Yahoo
Airbnb Stock Just Went on Sale. Here's How to (Safely) Trade the Post-Earnings Dive with Options.
We all likely remember the classic hit 'Who Let the Dogs Out?' When I saw the slide in Airbnb's (ABNB) stock price a day after its quarterly earnings release on Aug. 6, my first reaction was 'who let the air out?' This is the latest example of what today's stock market does during earnings season. It is unlike anything I've seen in my decades of investing. I'm a chartist, strategist, and above all, a risk manager, so the circus that is quarterly reporting from public companies is something I monitor, but go nowhere near. More News from Barchart Lyft Stock Isn't a Smooth Ride After Earnings, But This Low-Risk, High-Reward Trade Gives It Gas Strategic Arbitrage: Post-Earnings Drama Causes Dynatrace's (DT) Call Spreads to be Favorably Mispriced The Nasdaq-100 Is Showing Signs of Weakness. Here's How You Can Limit Your Losses If It Crashes. Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! If I'm trading a stock with earnings approaching, I'm either hedged or I've reduced my position. The best analogy I can use is that once I've been hit on the head dozens of times, I finally realize that creating distance between myself and whatever is hitting me is a good idea. As for ABNB, it has risen through the ranks to knock on the door of a $100 billion market capitalization. But the market had other ideas, sending shares down more than 8% on Aug. 7. Now, near 30x forward earnings and selling at well under 3x its earnings growth rate, this stock might be worth a look. Because after the market punishes a stock for missing earnings or issuing a lackluster forecast, it moves on to something else. And when that happens, there could be opportunity in what gets left behind. Charting ABNB: Some Home Repairs Needed I readily admit that some of my best collared positions in 2025 were stocks I truly did not care for. And that's the beauty of collars. Because with a stock like ABNB, you can see in the daily chart just below that it is capable of making investors giddy, and then stealing their candy just days later. Earlier this year, the stock popped 20% on earnings, then crashed 40% in a matter of weeks, along with the market. That tells me if I own ABNB at all, I better collar it. That daily chart above looks like a sick puppy to me. The percent price oscillator (PPO) is dropping fast, along with the price trend structure itself (top section of chart). The 20-day moving average did not immediately break after earnings, but it soon will. The weekly chart below is poised to go lower as well, if the PPO proves accurate. Remember that while technical analysis is in my opinion the best way to manage risk, risk can happen anywhere. How to Collar Airbnb Stock Ultimately, every investor is their own boss. So while ABNB is not a stock I'd put high on my buy list, that doesn't mean a collar approach doesn't fit. In fact, it fits well here. That's a fairly straightforward 2:1 shot above. The prices of the options will shift a lot with the stock, so be sure to 'mark to market' any time you do this type of analysis. Especially when a stock is being tossed around by traders. In this snapshot example, with the stock around $120, I could have set a $140-$115 range out to January 16, and it would have cost 3% of the stock price. That's $7.60 a share paid for the $115 strike puts and the $4.00 received in cash for those $140 calls. That produces a nice, albeit pedestrian 14% upside to 7% downside over that period. Sometimes the best figure to look at with a collar is the stock price itself. So getting the options aspect out of our heads for a moment, here's a stock that traded as high as $143 a share on July 28. Getting to $140 within 5 months or so is certainly within range. That's why sometimes, we just need to keep it simple: buy what you like, protect against the worst-case scenarios with options, and give it some time. Even when the market doesn't. On the date of publication, Rob Isbitts did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
8 minutes ago
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Warner Bros. Stock Slides After Analysts Flag Second-Half Challenges
Wall Street analysts rerated Warner Bros. Discovery (NASDAQ:WBD) after the company reported its quarterly results on Thursday. The stock traded lower on Friday. It reported fiscal second-quarter results on Thursday. The company reported a quarterly revenue of $9.81 billion, flat year-on-year (Y/Y) ex-FX growth, missing the analyst consensus estimate of $9.72 billion. The earnings per share (EPS) of 63 cents topped the analyst consensus estimate of 22-cent analyst Laura Martin maintained a Hold on Warner Bros. Bank of America Securities analyst Jessica Reif Ehrlich maintained a Buy on Warner Bros with a price forecast of $16. Needham Martin said WBD delivered second-quarter 2025 results ahead of expectations, driven by strong Studio performance. Revenue rose 1% year-over-year to $9.8 billion, beating her forecast by 3%, while adjusted EBITDA climbed 9% to $1.9 billion, 8% above her estimate. EPS came in at $0.63 versus her projected loss of $0.21, aided by a $3 billion pretax gain from debt extinguishment. Studios' revenue surged 55% to $3.8 billion, with adjusted EBITDA of $863 million, fueled by successful theatrical releases. Global Linear Networks revenue fell 9% to $4.8 billion, while Streaming revenue grew 9% to $2.8 billion, generating $293 million in adjusted EBITDA compared with a loss a year ago. Streaming subscribers climbed 22% year-over-year to 125.7 million, split between 57.8 million U.S. and 67.9 million international customers, with an ARPU of $7.14. WBD reaffirmed its 2025 streaming adjusted EBITDA guidance of at least $1.3 billion. Martin highlighted the company's focus on leveraging iconic IP franchises, targeting two to three major films annually, and improving theme park monetization through licensing deals. She also noted significant deleveraging, with net leverage falling to 3.3x from over 5x at the merger's close, and confirmed the planned 2026 split into two public companies remains on track. Following the results, Martin projected 2025 revenue of $38.1 billion, adjusted EBITDA of $8.9 billion, and EPS of $0.36. For 2026, she forecast $38.2 billion in revenue, $9 billion in adjusted EBITDA, and a $0.35 loss per share. Bank of America Securities Ehrlich said WBD's second-quarter results exceeded expectations, driven by strong Studio performance. Revenue of $9.8 billion and adjusted EBITDA of $1.95 billion topped her estimates of $9.6 billion and $1.79 billion, respectively. Free cash flow of $702 million came in slightly below her $762 million estimate due to $250 million in separation costs. Ehrlich attributed the adverse share reaction to management's outlook for weaker second-half linear performance, likely driving downward Street revisions. She said the announced corporate split and expected capital structures should reduce the impact of linear weakness on WBD's equity value. She cut her 2025 linear networks EBITDA forecast by $350 million, citing tougher year-over-year comparisons from unusually high content sales in 2024's second half, higher sports rights costs following NBA-related acquisitions, and slowing streaming distribution revenue growth under a restructured HBO Max deal. Still, she noted WBD maintained its streaming adjusted EBITDA outlook of at least $1.3 billion. Following the update, Ehrlich lowered her 2025 revenue estimate to $37.7 billion from $38.2 billion and adjusted EBITDA to $8.63 billion from $8.9 billion. She also reduced her 2026 adjusted EBITDA forecast to $9.0 billion from $9.2 billion, reflecting lower linear contributions partly offset by stronger Studios performance. Ehrlich pointed to potential catalysts, including easing Studio comps, advertising recovery, direct-to-consumer growth, and strategic moves to unlock shareholder value. Price Action: WBD stock is trading lower by 4.72% to $11.30 at last check on Friday. Photo via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Warner Bros. Stock Slides After Analysts Flag Second-Half Challenges originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
