Earnings live: Netflix highlights as second quarter earnings season ramps up
Investors received updates from several names before the bell, including PepsiCo (PEP), GE Aerospace (GE), and Nvidia supplier Taiwan Semiconductor Manufacturing (TSM), which reported a record quarterly profit amid strong AI demand.
But the marquee report comes after the close when Netflix is set to release earnings. Instead of focusing on subscribers, which the company stopped reporting this year, investors will be scrutinizing other metrics such as advertising and top-line growth.
Netflix's stock valuation is another top debate on Wall Street, as shares have risen 40% year to date.
The broader set of companies posting results follows a flurry of bank earnings earlier this week that marked the unofficial start of the second quarter earnings season.
The biggest Wall Street banks saw a boost in trading and dealmaking revenue during the quarter, leading to better-than-expected results for JPMorgan (JPM), Goldman Sachs (GS), Bank of America (BAC), Wells Fargo (WFC), Citigroup (C), and Morgan Stanley (MS), Bank of New York Mellon (BK), and BlackRock (BLK).
Wall Street firms also signaled that they are moving ahead with dealmaking despite risks from President Trump's tariffs.
"Boardrooms appear more accepting of ongoing uncertainty broadly," Morgan Stanley (MS) CEO Ted Pick said Wednesday.
Read more about how individual stocks and markets are moving post-earnings.
In the weeks ahead, investors will look for additional clues about the health of the US economy and any negative impacts from Trump's tariffs.
Data from FactSet published earlier this month showed analysts expect S&P 500 companies to report a 5% jump in earnings per share during the second quarter, which would mark the slowest pace of earnings growth since the fourth quarter of 2023.
Through Friday, with 4% of the index having reported results, second quarter earnings growth was tracking to 4.8%.
Additional companies reporting earnings this week include 3M (MMM), American Express (AXP), and Charles Schwab (SCHW).
Abbott beats on earnings, but its third quarter forecast falls short
Abbott's (ABT) second quarter profits beat Wall Street estimates, but its third quarter forecast came in lighter than expected, sending shares over 4% lower in premarket trading.
The healthcare and medical device company reported Q2 revenue of $11.14 billion, beating expectations of $11.07 billion, according to data compiled by LSEG.
Notably, sales of Abbott's continuous glucose monitors jumped 21.4% to $1.9 billion in the quarter.
On an adjusted basis, the company reported a profit of $1.26 per share for the second quarter, compared with estimates of $1.25.
For the third quarter, Abbott sees profit coming in between $1.28 and $1.32 per share.
Reuters also reported that Abbott announced plans to build a manufacturing facility in Georgia by 2028 to support its cardiovascular business. That facility, along with two others planned for Illinois and Texas, aim to help Abbott mitigate any impact from President Trump's tariffs.
> Listen to the earnings call live at 9 a.m. ET on the stock ticker page.
TSMC reports record quarterly profit, says AI demand is growing
Taiwan Semiconductor Manufacturing Company (TSM) posted a record quarterly profit on Thursday of 398.3 billion new Taiwan dollars ($13.5 billion), an increase of more than 60% year over year.
TSMC, which is Nvidia's (NVDA) primary chip manufacturer, said artificial intelligence demand was growing and raised its sales outlook for the third quarter and full year.
Nvidia has been allowed to resume sales of its H20 chip in China, which could help it recoup as much as $15 billion in revenue.
"China is a big market, and my customer can continue to supply the chip to the big market," TSMC CEO C.C. Wei said at a press conference. "It's very positive news for them, and in return, it's very positive news for TSMC."
While TSMC has not seen changes in customers' behavior so far, it cautioned that tariffs could affect income in the fourth quarter.
TSMC stock rose 3% in premarket trading.
Read more here.
PepsiCo expects smaller drop in annual profit on US soda demand, weaker dollar
Reuters reports:
Read more here.
GE Aerospace lifts 2025 profit view on rising demand for fixing older jets
Reuters reports:
Read more here.
United Airlines posts better-than-expected earnings, trims profit outlook
United Airlines (UAL) reported mixed results on Wednesday but said it sees a "positive inflection" through the rest of the year.
Adjusted earnings for the second quarter were $3.87 per share, above expectations for $3.84, on revenue of $15.24 billion, a slight miss versus expectations for $15.33 billion.
The air carrier now sees full-year adjusted earnings per share guidance in the range of $9 to $11. As of Wednesday, analysts were expecting an adjusted profit of $9.92 on average for the year, per Bloomberg. For the third quarter, United forecast that adjusted profits would come in between $2.25 and $2.75 a share.
Both outlooks were below United's previous guidance for the year. In the first quarter, United maintained its full-year forecast for adjusted earnings per share of $11.50 to $13.50 but offered a second forecast should the US fall into recession.
Shares fell 1.5% in after-hours trading. United stock surged 13% last Thursday on the heels of Delta's (DAL) report.
Read more here.
Stocks endured a wild ride in the second quarter. It was great news for big banks.
Markets were highly volatile in the second quarter, with President Trump's tariff announcements and geopolitical events such as the Israel-Iran war leading to major S&P 500 swings.
But this week's bank earnings show that volatility made it a good time to be a stock trader at a major bank. Yahoo Finance's Jake Conley reports:
Read more here.
Progressive stock rises on earnings beat
Progressive (PGR) stock gained roughly 2% in midday trading on Wednesday after the insurance company reported year-over-year sales growth of 15.7%, amounting to $20.99 billion.
Earnings came in at $5.40 per share, 14.8% above analysts' estimates.
Read more here.
J.B. Hunt exec highlights 'very dynamic forecasting challenge' amid tariffs
In an earnings call on Tuesday, J.B. Hunt (JBHT) executive vice president Spencer Frazier highlighted that it continues to be challenging to forecast demand this year amid trade policy disruptions.
'Some [customers] stayed the course,' Frazier said about the clients' behavior in the second quarter. 'Some paused certain items. Some pulled inventory forward.'
'Really, all of them, longer-term, are considering their sourcing strategies,' he added, 'and that makes for a very dynamic forecasting challenge for them and for us.'
The Arkansas-based surface transport and freight company reported earnings per share of $1.31 for the second quarter that were largely in line with analysts' expectations. Its revenue of $2.93 billion was flat year over year.
Frazier said that the company started its peak season surcharge program earlier this year due to the uncertainty and volatility. In the second quarter, he noted that overall customer demand trended modestly below normal seasonality.
ASML shares slump after chipmaking linchpin warns on growth
ASML (ASML, ASML.AS) shares fell almost 8% in premarket trading after the Dutch firm warned sales may fall next year and said it may not achieve growth in 2026.
The warning came even as the world's biggest supplier of chipmaking gear's second quarter bookings topped Wall Street estimates on Wednesday.
'We continue to see increasing uncertainty driven by macro-economic and geopolitical developments,' ASML CEO Christophe Fouquet said in a statement on ASML's quarterly results Wednesday. 'Therefore, while we still prepare for growth in 2026, we cannot confirm it at this stage.'
Bloomberg reports:
Read more here.
Morgan Stanley profit rises as traders ride market turmoil
Reuters reports:
Read more here.
Bank of America profit beats estimates as traders get boost from market turmoil
Reuters reports:
Read more here.
Johnson & Johnson beats on earnings, raises outlook
Johnson & Johnson (JNJ) reported second quarter earnings that beat Wall Street estimates Wednesday due to strong demand for its cancer drug, Darzalex, and strength in its medical device business.
The company reported revenue of $23.7 billion, versus the $22.8 billion estimated by Wall Street analysts surveyed by Bloomberg. Earnings per share came in at $2.77, versus estimates of $2.66.
Johnson & Johnson raised its full-year sales outlook to a range of $93.2 billion to $93.6 billion, boosting shares by 1.7% in premarket trading.
Yahoo Finance's Anjalee Khemlani reports:
Read more here.
Trading and dealmaking boosted Goldman profits as Wall Street overcame Trump tariff chaos
Goldman Sachs (GS) joined JPMorgan Chase (JPM) and Citigroup (C) in reporting higher dealmaking and trading revenue for the second quarter.
Though dealmaking halted following President Trump's April 2 tariff announcement, bankers saw momentum pick up following the tariff pause and as Trump began to loosen some supervisory rules.
Yahoo Finance's David Hollerith reports:
Read more here.
Big banks say the US consumer 'basically seems to be fine'
Yahoo Finance's Jake Conley reports:
Read more here.
Albertsons raises annual sales forecast but leaves profit outlook unchanged
Albertsons stock (ACI) fell 4% at the market open after the grocer kept its full-year adjusted profit outlook the same, despite beating earnings estimates and raising its annual sales forecast.
Grocers like Albertsons have benefited from consumers' shift to value and continued spending on necessities despite inflationary pressures.
Per Reuters, Albertsons posted quarterly sales of $24.88 billion, just ahead of the average analyst estimate of $24.73 billion, as surveyed by LSEG. Same-store sales for the quarter ended June 14 rose 2.8%, compared to a 1.4% increase a year ago, driven by strong growth in pharmacy sales.
For the full year, the company raised its outlook for same-store sales. It now sees sales growth of 2% to 2.75%, up from its prior forecast of 1.5% to 2.5%.
Its quarterly adjusted net income per share of $0.55 beat estimates of $0.53.
Read more here.
Wells Fargo profit beats estimates, cut to interest income forecast weighs on shares
Reuters reports:
Read more here.
Jamie Dimon on the stock market
I asked JPMorgan (JPM) CEO Jamie Dimon on a media call this morning why he thinks elevated asset prices are a "significant" risk.
What he told me:
"Look at it the other way around, Brian — what if they were not elevated? I just see, you know, [asset prices] are fairly well priced in the top 10% or 15%, however you measure them. And then credit spreads are also, in my view, a little unnaturally low with all the potential exposures out there. And so the world is kind of pricing in a soft landing. And we've been in that soft landing very well."
Jamie Dimon discusses Fed independence
JPMorgan CEO Jamie Dimon weighed in on the Fed on a media call this morning:
"What I've seen the president say [is] he's not going to try to remove Jay Powell," Dimon said. "I think the independence of the Fed is absolutely critical, and not just for the current Fed chairman, who I respect, Jay Powell, but the next Fed chairman."
Read more about the pressure on Fed Chair Powell
JPMorgan gets a dealmaking boost as Wall Street recovered from tariff tumult
JPMorgan Chase's (JPM) second quarter results came in better than expected on Tuesday, though shares in the bank were lower by less than 1% in premarket trading.
Yahoo Finance's David Hollerith reports:
Read more here.
BNY CEO to Yahoo Finance on market turnaround
I caught up with BNY (BNY) CEO Robin Vince by video call after the company's solid second quarter this morning.
I asked him why he thinks market sentiment has turned so positive so fast:
'Remember where we were in January with the sort of US exceptionalism trade and sentiment, peak pessimism on Europe, and then we probably reversed that psychology in a lot of people quickly over the course of April and into May. But the fundamentals of the performance of the US economy really never went away.'
He added, 'We have industry leading companies here in the United States… I think it is something that people are coming back to, maybe have forgotten for two or three months in the middle there.'
Abbott beats on earnings, but its third quarter forecast falls short
Abbott's (ABT) second quarter profits beat Wall Street estimates, but its third quarter forecast came in lighter than expected, sending shares over 4% lower in premarket trading.
The healthcare and medical device company reported Q2 revenue of $11.14 billion, beating expectations of $11.07 billion, according to data compiled by LSEG.
Notably, sales of Abbott's continuous glucose monitors jumped 21.4% to $1.9 billion in the quarter.
On an adjusted basis, the company reported a profit of $1.26 per share for the second quarter, compared with estimates of $1.25.
For the third quarter, Abbott sees profit coming in between $1.28 and $1.32 per share.
Reuters also reported that Abbott announced plans to build a manufacturing facility in Georgia by 2028 to support its cardiovascular business. That facility, along with two others planned for Illinois and Texas, aim to help Abbott mitigate any impact from President Trump's tariffs.
> Listen to the earnings call live at 9 a.m. ET on the stock ticker page.
Abbott's (ABT) second quarter profits beat Wall Street estimates, but its third quarter forecast came in lighter than expected, sending shares over 4% lower in premarket trading.
The healthcare and medical device company reported Q2 revenue of $11.14 billion, beating expectations of $11.07 billion, according to data compiled by LSEG.
Notably, sales of Abbott's continuous glucose monitors jumped 21.4% to $1.9 billion in the quarter.
On an adjusted basis, the company reported a profit of $1.26 per share for the second quarter, compared with estimates of $1.25.
For the third quarter, Abbott sees profit coming in between $1.28 and $1.32 per share.
Reuters also reported that Abbott announced plans to build a manufacturing facility in Georgia by 2028 to support its cardiovascular business. That facility, along with two others planned for Illinois and Texas, aim to help Abbott mitigate any impact from President Trump's tariffs.
> Listen to the earnings call live at 9 a.m. ET on the stock ticker page.
TSMC reports record quarterly profit, says AI demand is growing
Taiwan Semiconductor Manufacturing Company (TSM) posted a record quarterly profit on Thursday of 398.3 billion new Taiwan dollars ($13.5 billion), an increase of more than 60% year over year.
TSMC, which is Nvidia's (NVDA) primary chip manufacturer, said artificial intelligence demand was growing and raised its sales outlook for the third quarter and full year.
Nvidia has been allowed to resume sales of its H20 chip in China, which could help it recoup as much as $15 billion in revenue.
"China is a big market, and my customer can continue to supply the chip to the big market," TSMC CEO C.C. Wei said at a press conference. "It's very positive news for them, and in return, it's very positive news for TSMC."
While TSMC has not seen changes in customers' behavior so far, it cautioned that tariffs could affect income in the fourth quarter.
TSMC stock rose 3% in premarket trading.
Read more here.
Taiwan Semiconductor Manufacturing Company (TSM) posted a record quarterly profit on Thursday of 398.3 billion new Taiwan dollars ($13.5 billion), an increase of more than 60% year over year.
TSMC, which is Nvidia's (NVDA) primary chip manufacturer, said artificial intelligence demand was growing and raised its sales outlook for the third quarter and full year.
Nvidia has been allowed to resume sales of its H20 chip in China, which could help it recoup as much as $15 billion in revenue.
"China is a big market, and my customer can continue to supply the chip to the big market," TSMC CEO C.C. Wei said at a press conference. "It's very positive news for them, and in return, it's very positive news for TSMC."
While TSMC has not seen changes in customers' behavior so far, it cautioned that tariffs could affect income in the fourth quarter.
TSMC stock rose 3% in premarket trading.
Read more here.
PepsiCo expects smaller drop in annual profit on US soda demand, weaker dollar
Reuters reports:
Read more here.
Reuters reports:
Read more here.
GE Aerospace lifts 2025 profit view on rising demand for fixing older jets
Reuters reports:
Read more here.
Reuters reports:
Read more here.
United Airlines posts better-than-expected earnings, trims profit outlook
United Airlines (UAL) reported mixed results on Wednesday but said it sees a "positive inflection" through the rest of the year.
Adjusted earnings for the second quarter were $3.87 per share, above expectations for $3.84, on revenue of $15.24 billion, a slight miss versus expectations for $15.33 billion.
The air carrier now sees full-year adjusted earnings per share guidance in the range of $9 to $11. As of Wednesday, analysts were expecting an adjusted profit of $9.92 on average for the year, per Bloomberg. For the third quarter, United forecast that adjusted profits would come in between $2.25 and $2.75 a share.
Both outlooks were below United's previous guidance for the year. In the first quarter, United maintained its full-year forecast for adjusted earnings per share of $11.50 to $13.50 but offered a second forecast should the US fall into recession.
Shares fell 1.5% in after-hours trading. United stock surged 13% last Thursday on the heels of Delta's (DAL) report.
Read more here.
United Airlines (UAL) reported mixed results on Wednesday but said it sees a "positive inflection" through the rest of the year.
Adjusted earnings for the second quarter were $3.87 per share, above expectations for $3.84, on revenue of $15.24 billion, a slight miss versus expectations for $15.33 billion.
The air carrier now sees full-year adjusted earnings per share guidance in the range of $9 to $11. As of Wednesday, analysts were expecting an adjusted profit of $9.92 on average for the year, per Bloomberg. For the third quarter, United forecast that adjusted profits would come in between $2.25 and $2.75 a share.
Both outlooks were below United's previous guidance for the year. In the first quarter, United maintained its full-year forecast for adjusted earnings per share of $11.50 to $13.50 but offered a second forecast should the US fall into recession.
Shares fell 1.5% in after-hours trading. United stock surged 13% last Thursday on the heels of Delta's (DAL) report.
Read more here.
Stocks endured a wild ride in the second quarter. It was great news for big banks.
Markets were highly volatile in the second quarter, with President Trump's tariff announcements and geopolitical events such as the Israel-Iran war leading to major S&P 500 swings.
But this week's bank earnings show that volatility made it a good time to be a stock trader at a major bank. Yahoo Finance's Jake Conley reports:
Read more here.
Markets were highly volatile in the second quarter, with President Trump's tariff announcements and geopolitical events such as the Israel-Iran war leading to major S&P 500 swings.
But this week's bank earnings show that volatility made it a good time to be a stock trader at a major bank. Yahoo Finance's Jake Conley reports:
Read more here.
Progressive stock rises on earnings beat
Progressive (PGR) stock gained roughly 2% in midday trading on Wednesday after the insurance company reported year-over-year sales growth of 15.7%, amounting to $20.99 billion.
Earnings came in at $5.40 per share, 14.8% above analysts' estimates.
Read more here.
Progressive (PGR) stock gained roughly 2% in midday trading on Wednesday after the insurance company reported year-over-year sales growth of 15.7%, amounting to $20.99 billion.
Earnings came in at $5.40 per share, 14.8% above analysts' estimates.
Read more here.
J.B. Hunt exec highlights 'very dynamic forecasting challenge' amid tariffs
In an earnings call on Tuesday, J.B. Hunt (JBHT) executive vice president Spencer Frazier highlighted that it continues to be challenging to forecast demand this year amid trade policy disruptions.
'Some [customers] stayed the course,' Frazier said about the clients' behavior in the second quarter. 'Some paused certain items. Some pulled inventory forward.'
'Really, all of them, longer-term, are considering their sourcing strategies,' he added, 'and that makes for a very dynamic forecasting challenge for them and for us.'
The Arkansas-based surface transport and freight company reported earnings per share of $1.31 for the second quarter that were largely in line with analysts' expectations. Its revenue of $2.93 billion was flat year over year.
Frazier said that the company started its peak season surcharge program earlier this year due to the uncertainty and volatility. In the second quarter, he noted that overall customer demand trended modestly below normal seasonality.
In an earnings call on Tuesday, J.B. Hunt (JBHT) executive vice president Spencer Frazier highlighted that it continues to be challenging to forecast demand this year amid trade policy disruptions.
'Some [customers] stayed the course,' Frazier said about the clients' behavior in the second quarter. 'Some paused certain items. Some pulled inventory forward.'
'Really, all of them, longer-term, are considering their sourcing strategies,' he added, 'and that makes for a very dynamic forecasting challenge for them and for us.'
The Arkansas-based surface transport and freight company reported earnings per share of $1.31 for the second quarter that were largely in line with analysts' expectations. Its revenue of $2.93 billion was flat year over year.
Frazier said that the company started its peak season surcharge program earlier this year due to the uncertainty and volatility. In the second quarter, he noted that overall customer demand trended modestly below normal seasonality.
ASML shares slump after chipmaking linchpin warns on growth
ASML (ASML, ASML.AS) shares fell almost 8% in premarket trading after the Dutch firm warned sales may fall next year and said it may not achieve growth in 2026.
The warning came even as the world's biggest supplier of chipmaking gear's second quarter bookings topped Wall Street estimates on Wednesday.
'We continue to see increasing uncertainty driven by macro-economic and geopolitical developments,' ASML CEO Christophe Fouquet said in a statement on ASML's quarterly results Wednesday. 'Therefore, while we still prepare for growth in 2026, we cannot confirm it at this stage.'
Bloomberg reports:
Read more here.
ASML (ASML, ASML.AS) shares fell almost 8% in premarket trading after the Dutch firm warned sales may fall next year and said it may not achieve growth in 2026.
The warning came even as the world's biggest supplier of chipmaking gear's second quarter bookings topped Wall Street estimates on Wednesday.
'We continue to see increasing uncertainty driven by macro-economic and geopolitical developments,' ASML CEO Christophe Fouquet said in a statement on ASML's quarterly results Wednesday. 'Therefore, while we still prepare for growth in 2026, we cannot confirm it at this stage.'
Bloomberg reports:
Read more here.
Morgan Stanley profit rises as traders ride market turmoil
Reuters reports:
Read more here.
Reuters reports:
Read more here.
Bank of America profit beats estimates as traders get boost from market turmoil
Reuters reports:
Read more here.
Reuters reports:
Read more here.
Johnson & Johnson beats on earnings, raises outlook
Johnson & Johnson (JNJ) reported second quarter earnings that beat Wall Street estimates Wednesday due to strong demand for its cancer drug, Darzalex, and strength in its medical device business.
The company reported revenue of $23.7 billion, versus the $22.8 billion estimated by Wall Street analysts surveyed by Bloomberg. Earnings per share came in at $2.77, versus estimates of $2.66.
Johnson & Johnson raised its full-year sales outlook to a range of $93.2 billion to $93.6 billion, boosting shares by 1.7% in premarket trading.
Yahoo Finance's Anjalee Khemlani reports:
Read more here.
Johnson & Johnson (JNJ) reported second quarter earnings that beat Wall Street estimates Wednesday due to strong demand for its cancer drug, Darzalex, and strength in its medical device business.
The company reported revenue of $23.7 billion, versus the $22.8 billion estimated by Wall Street analysts surveyed by Bloomberg. Earnings per share came in at $2.77, versus estimates of $2.66.
Johnson & Johnson raised its full-year sales outlook to a range of $93.2 billion to $93.6 billion, boosting shares by 1.7% in premarket trading.
Yahoo Finance's Anjalee Khemlani reports:
Read more here.
Trading and dealmaking boosted Goldman profits as Wall Street overcame Trump tariff chaos
Goldman Sachs (GS) joined JPMorgan Chase (JPM) and Citigroup (C) in reporting higher dealmaking and trading revenue for the second quarter.
Though dealmaking halted following President Trump's April 2 tariff announcement, bankers saw momentum pick up following the tariff pause and as Trump began to loosen some supervisory rules.
Yahoo Finance's David Hollerith reports:
Read more here.
Goldman Sachs (GS) joined JPMorgan Chase (JPM) and Citigroup (C) in reporting higher dealmaking and trading revenue for the second quarter.
Though dealmaking halted following President Trump's April 2 tariff announcement, bankers saw momentum pick up following the tariff pause and as Trump began to loosen some supervisory rules.
Yahoo Finance's David Hollerith reports:
Read more here.
Big banks say the US consumer 'basically seems to be fine'
Yahoo Finance's Jake Conley reports:
Read more here.
Yahoo Finance's Jake Conley reports:
Read more here.
Albertsons raises annual sales forecast but leaves profit outlook unchanged
Albertsons stock (ACI) fell 4% at the market open after the grocer kept its full-year adjusted profit outlook the same, despite beating earnings estimates and raising its annual sales forecast.
Grocers like Albertsons have benefited from consumers' shift to value and continued spending on necessities despite inflationary pressures.
Per Reuters, Albertsons posted quarterly sales of $24.88 billion, just ahead of the average analyst estimate of $24.73 billion, as surveyed by LSEG. Same-store sales for the quarter ended June 14 rose 2.8%, compared to a 1.4% increase a year ago, driven by strong growth in pharmacy sales.
For the full year, the company raised its outlook for same-store sales. It now sees sales growth of 2% to 2.75%, up from its prior forecast of 1.5% to 2.5%.
Its quarterly adjusted net income per share of $0.55 beat estimates of $0.53.
Read more here.
Albertsons stock (ACI) fell 4% at the market open after the grocer kept its full-year adjusted profit outlook the same, despite beating earnings estimates and raising its annual sales forecast.
Grocers like Albertsons have benefited from consumers' shift to value and continued spending on necessities despite inflationary pressures.
Per Reuters, Albertsons posted quarterly sales of $24.88 billion, just ahead of the average analyst estimate of $24.73 billion, as surveyed by LSEG. Same-store sales for the quarter ended June 14 rose 2.8%, compared to a 1.4% increase a year ago, driven by strong growth in pharmacy sales.
For the full year, the company raised its outlook for same-store sales. It now sees sales growth of 2% to 2.75%, up from its prior forecast of 1.5% to 2.5%.
Its quarterly adjusted net income per share of $0.55 beat estimates of $0.53.
Read more here.
Wells Fargo profit beats estimates, cut to interest income forecast weighs on shares
Reuters reports:
Read more here.
Reuters reports:
Read more here.
Jamie Dimon on the stock market
I asked JPMorgan (JPM) CEO Jamie Dimon on a media call this morning why he thinks elevated asset prices are a "significant" risk.
What he told me:
"Look at it the other way around, Brian — what if they were not elevated? I just see, you know, [asset prices] are fairly well priced in the top 10% or 15%, however you measure them. And then credit spreads are also, in my view, a little unnaturally low with all the potential exposures out there. And so the world is kind of pricing in a soft landing. And we've been in that soft landing very well."
I asked JPMorgan (JPM) CEO Jamie Dimon on a media call this morning why he thinks elevated asset prices are a "significant" risk.
What he told me:
"Look at it the other way around, Brian — what if they were not elevated? I just see, you know, [asset prices] are fairly well priced in the top 10% or 15%, however you measure them. And then credit spreads are also, in my view, a little unnaturally low with all the potential exposures out there. And so the world is kind of pricing in a soft landing. And we've been in that soft landing very well."
Jamie Dimon discusses Fed independence
JPMorgan CEO Jamie Dimon weighed in on the Fed on a media call this morning:
"What I've seen the president say [is] he's not going to try to remove Jay Powell," Dimon said. "I think the independence of the Fed is absolutely critical, and not just for the current Fed chairman, who I respect, Jay Powell, but the next Fed chairman."
Read more about the pressure on Fed Chair Powell
JPMorgan CEO Jamie Dimon weighed in on the Fed on a media call this morning:
"What I've seen the president say [is] he's not going to try to remove Jay Powell," Dimon said. "I think the independence of the Fed is absolutely critical, and not just for the current Fed chairman, who I respect, Jay Powell, but the next Fed chairman."
Read more about the pressure on Fed Chair Powell
JPMorgan gets a dealmaking boost as Wall Street recovered from tariff tumult
JPMorgan Chase's (JPM) second quarter results came in better than expected on Tuesday, though shares in the bank were lower by less than 1% in premarket trading.
Yahoo Finance's David Hollerith reports:
Read more here.
JPMorgan Chase's (JPM) second quarter results came in better than expected on Tuesday, though shares in the bank were lower by less than 1% in premarket trading.
Yahoo Finance's David Hollerith reports:
Read more here.
BNY CEO to Yahoo Finance on market turnaround
I caught up with BNY (BNY) CEO Robin Vince by video call after the company's solid second quarter this morning.
I asked him why he thinks market sentiment has turned so positive so fast:
'Remember where we were in January with the sort of US exceptionalism trade and sentiment, peak pessimism on Europe, and then we probably reversed that psychology in a lot of people quickly over the course of April and into May. But the fundamentals of the performance of the US economy really never went away.'
He added, 'We have industry leading companies here in the United States… I think it is something that people are coming back to, maybe have forgotten for two or three months in the middle there.'
I caught up with BNY (BNY) CEO Robin Vince by video call after the company's solid second quarter this morning.
I asked him why he thinks market sentiment has turned so positive so fast:
'Remember where we were in January with the sort of US exceptionalism trade and sentiment, peak pessimism on Europe, and then we probably reversed that psychology in a lot of people quickly over the course of April and into May. But the fundamentals of the performance of the US economy really never went away.'
He added, 'We have industry leading companies here in the United States… I think it is something that people are coming back to, maybe have forgotten for two or three months in the middle there.'
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ASML Just Quietly Booked Billions for Its EUV Machines. Is It Time to Buy the Stock?
Key Points ASML's management doesn't know for sure whether it's going to grow next year, and this unsettles investors. The company is still confident with its long-term outlook, which is what long-term investors will want to focus on. 10 stocks we like better than ASML › Many people have never heard of ASML (NASDAQ: ASML), and fewer could explain what the company does. But chances are that you're within reach of a product that ASML helped create. Modern computers, mobile devices, and even cars wouldn't be possible without one very important thing -- lithography -- and ASML dominates that market. The company's dominance in lithography -- which I'll explain momentarily -- has led to good returns for shareholders over the last decade. ASML stock is up more than 600% during this time, compared to a 200% return for the S&P 500. However, while long-term returns have been stellar, the company's recent returns haven't been so hot. On July 16, ASML reported financial results for its second quarter of 2025, and the stock dropped about 8% in a day. In short, investors didn't like something they heard. Referring to its potential growth in 2026, CEO Christophe Fouquet said, "We cannot confirm it at this stage," due to all of the macro-economic uncertainty. That's all it took to spook investors. However, there's something that ASML investors appear to be overlooking: The company quietly just booked billions for its extreme ultraviolet (EUV) lithography machines. And that's hugely important context when thinking about ASML's future. ASML is still booking billions In the semiconductor space, everything is getting smaller and more complex, which leads to the need for more complex machines. That's where ASML comes in. It makes advanced lithography machines that have a near monopoly in the market. Companies making microchips need ASML's machines. There are a variety of ASML machines that use different processes, but the best-selling line is its EUV machines, which accounted for 48% of Q2 net system sales. The extreme ultraviolet light's wavelength is short enough to work on the world's smallest chips. ASML's Q2 numbers looked good. Q2 net sales of 7.7 billion euros were above expectations. And earnings per share (EPS) of 5.9 euros were also higher than expected. Both of these outperformances were relatively modest. By contrast, analysts only expected ASML's net bookings to be around 4.2 billion euros, whereas it reported Q2 net bookings of 5.5 billion euros -- a roughly a 30% beat. (Bookings are when the company receives an order in writing. By comparison, net sales refers to when a machine is delivered or installed.) Keep in mind that a single EUV machine from ASML can cost around $280 million, so it doesn't take too many surprise orders to swing bookings in a big way. Still, the 30% outperformance does suggest ongoing health in the semiconductor manufacturing space. So what's the problem? Semiconductor manufacturers are almost guaranteed to spend significant money in the coming years as trends such as artificial intelligence (AI), driverless cars, and renewable energy will drive demand more than ever. Manufacturers will need to spend on equipment to increase supply. It's not so much a question of "if" as "when." However, capital expenditures could be delayed because executives are waiting until uncertainty dies down. With ever-changing tariffs, companies can't predict what expenses will be. It's better to wait for the dust to settle, if possible. This is what Fouquet was referring to with his prediction for ASML's business in 2026. Its products still dominate the market, and its customers will still need them. But will they buy in 2026 or later? That's what management is unsure of and why the stock dipped. This could be an opportunity for investors who take a longer-term view on ASML stock. As the chart below shows, the stock's price-to-earnings ratio (P/E) of 31 is well below its 10-year average valuation. Looking ahead to 2030, ASML's outlook hasn't changed. By 2030, it believes it will generate revenue of 44 billion euros to 60 billion euros. For perspective, the company expects to generate revenue of about 32.5 billion euros this year. Assuming it hits the midpoint of its 2030 guidance, ASML will generate revenue of 52 billion euros in five years. That's growth of 60%, which is pretty good. Factoring in the company's dividend and stock buyback program, ASML stock could be a market-beating investment. The good thing for investors considering ASML stock today is its safety. Granted, it's possible for another company to develop a machine that makes ASML's own obsolete -- anything is possible. But ASML is considered to be well ahead of the competition in an important market, which gives its business strong profits margins. This has helped to create a strong balance sheet. In conclusion, I think ASML stock is unlikely to lose money for investors over the next five years. The business is too strong, and its products are too important. But the timing of orders could cause the stock to drop at times, like it has now. For long-term investors who believe in the company's 2030 outlook, these drops in stock price could be opportunistic entry points. Should you invest $1,000 in ASML right now? Before you buy stock in ASML, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and ASML wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Jon Quast has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML. The Motley Fool has a disclosure policy. ASML Just Quietly Booked Billions for Its EUV Machines. Is It Time to Buy the Stock? was originally published by The Motley Fool 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
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This Trillion-Dollar Artificial Intelligence (AI) Stock Could Double Your Money in 5 Years
Key Points Meta Platforms is going all-in on AI. This strategy should provide the company with significant growth opportunities. Meta Platforms' revenue, earnings, and stock price could double in the next five years. These 10 stocks could mint the next wave of millionaires › In 2021, social media company Facebook changed its name to Meta Platforms (NASDAQ: META), partly to reflect its new focus on its metaverse ambitions. Although it is still working on that project, over the past two years, Meta's work in artificial intelligence (AI) has become the company's primary focus. The tech leader is making moves, and if enough things go right, these initiatives could lead to superior returns in the next five years and beyond. Here's why Meta Platforms could potentially double investors' money by the end of 2030. Meta Platforms is sparing no expense Meta Platforms has been investing a significant amount of money in its AI ambitions. The company announced it would build AI data centers, a project it expects will cost hundreds of billions of dollars. Meta Platforms has made other strategic moves. It recently acquired Play AI, a company that generates human-like voices through AI. The financial details of the transactions were not disclosed. Elsewhere, Meta Platforms deepened its partnership with EssilorLuxottica, the company that owns RayBan and Oakley, both of which sell glasses and eyewear accessories. Meta Platforms and EssilorLuxottica have been working together for years, but the recent investment, estimated at roughly $3.5 billion, brings their partnership to a new level. Meta Platforms has also been trying to poach top AI talent from competitors, including OpenAI. How will Meta Platforms' AI investments pay off? Consider the company's AI hardware vision. CEO Mark Zuckerberg predicted that AI glasses will likely dominate the industry within the next five to 10 years. Perhaps he is being too optimistic, but it's worth pointing out that Meta's AI glasses, developed in collaboration with EssilorLuxottica, have impressive features. They can be controlled through voice command, take pictures and videos, and users can even share what they see on video calls on WhatsApp. Meta Platforms' revenue from these glasses currently makes up a tiny percentage of its total sales. However, provided Zuckerberg's vision for the future is even close to the truth, that segment could see incredible sales growth in the next five years and perhaps contribute more meaningfully to the tech leader's financial results. And that's just one example. Here's another: Meta Platforms' large language model (LLM), Llama, is available for free. That may seem counterintuitive. It certainly wasn't free for Meta Platforms to create Llama. However, the company aims to attract talented developers to work on and refine its LLM, ultimately (hopefully) making it the leading one on the market. Since Llama powers some of the company's AI-related initiatives, including its virtual assistant, Meta AI, this strategy could, eventually, have positive spillover effects across all these other initiatives. Revenue and earnings could double by 2030 Meta Platforms' work in AI will also help improve its advertising business, from which it currently generates the overwhelming majority of its sales. The company is looking to automate the ad creation and launch process, something that will almost certainly increase ad demand and related revenue for Meta Platforms. With an ecosystem of 3.43 billion daily active users as of the end of the first quarter, Meta Platforms' websites and apps will remain favorite targets for businesses looking to advertise to a large audience. Further, Meta Platforms has also improved engagement on its apps thanks to AI-powered recommendation algorithms. The company's business is being transformed thanks to AI, with improved productivity and more lucrative opportunities across its business. In the next five years, we could see Meta Platforms' revenue and earnings double. It almost accomplished this feat in the past half-decade. But with a laser focus on AI and multiple avenues for growth, the Facebook parent can pull it off, even with some potential headwinds, such as President Donald Trump's trade policies that have already decreased ad demand from some Asia-based companies -- not that this prevented Meta Platforms from delivering strong results in the first quarter. It's also worth mentioning that Meta Platforms now pays a dividend. Investing in the stock today while setting up automatic dividend reinvestment could lead to the kinds of returns that will more than double your initial capital by the end of 2030. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $447,134!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $40,090!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $652,133!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of July 21, 2025 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Prosper Junior Bakiny has positions in Meta Platforms. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy. This Trillion-Dollar Artificial Intelligence (AI) Stock Could Double Your Money in 5 Years was originally published by The Motley Fool 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
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OpenAI and Google outdo the mathletes, but not each other
AI models from OpenAI and Google DeepMind achieved gold medal scores in the 2025 International Math Olympiad (IMO), one of the world's oldest and most challenging high school level math competitions, the companies independently announced in recent days. The result underscores just how fast AI systems are advancing, and yet, how evenly matched Google and OpenAI seem to be in the AI race. AI companies are competing fiercely for the public perception of being ahead in the AI race: an intangible battle of 'vibes' that can have big implications for securing top AI talent. A lot of AI researchers come from backgrounds in competitive math, so benchmarks like IMO mean more than others. Last year, Google scored a silver medal at IMO using a 'formal' system, meaning it required humans to translate problems into a machine‑readable format. This year, both OpenAI and Google entered 'informal' systems into the competition, which were able to ingest questions and generate proof‑based answers in natural language. Both companies claim their AI models correctly answered five out of six questions on IMO's test, scoring higher than most high school students and Google's AI model from last year, without requiring any human-machine translation. In interviews with TechCrunch, researchers behind OpenAI and Google's IMO efforts claimed that these gold medal performances represent breakthroughs around AI reasoning models in non-verifiable domains. While AI reasoning models tend to do well on questions with straightforward answers, such as simple math or coding tasks, these systems struggle on tasks with more ambiguous solutions, such as buying a great chair or helping with complex research. However, Google is raising questions around how OpenAI conducted and announced its gold medal IMO performance. After all, if you're going to enter AI models into a math contest for high schoolers, you might as well argue like teenagers. Shortly after OpenAI announced its feat on Saturday morning, Google DeepMind's CEO and researchers took to social media to slam OpenAI for announcing its gold‑medal prematurely — shortly after IMO announced which high schoolers had won the competition on Friday night — and for not having their model's test officially evaluated by IMO. Thang Luong, a Google DeepMind senior researcher and lead for the IMO project, told TechCrunch that Google waited to announce its IMO results to respect the students participating in the competition. Luong said that Google has been working with IMO's organizers since last year in preparation for the test and wanted to have the IMO president's blessing and official grading before announcing its official results, which it did on Monday morning. 'The IMO organizers have their grading guideline,' Luong said. 'So any evaluation that's not based on that guideline could not make any claim about gold-medal level [performance].' Noam Brown, a senior OpenAI researcher who worked on the IMO model, told TechCrunch that IMO reached out to OpenAI a few months ago about participating in a formal math competition, but the ChatGPT-maker declined because it was working on natural language systems that it thought were more worth pursuing. Brown says OpenAI didn't know IMO was conducting an informal test with Google. OpenAI says it hired third-party evaluators — three former IMO medalists who understood the grading system — to grade its AI model's performance. After OpenAI learned of its gold medal score, Brown said the company reached out to IMO, which then told the company to wait to announce until after IMO's Friday night award ceremony. IMO did not respond to TechCrunch's request for comment. Google isn't necessarily wrong here — it did go through a more official, rigorous process to achieve its gold medal score — but the debate may miss the bigger picture: AI models from several leading AI labs are improving quickly. Countries from around the world sent their brightest students to compete at IMO this year, and just a few percent of them scored as well as OpenAI and Google's AI models did. While OpenAI used to have a significant lead over the industry, it certainly feels as though the race is more closely matched than any company would like to admit. OpenAI is expected to release GPT-5 in the coming months, and the company certainly hopes to give off the impression that it still leads the AI industry. 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
