Tech is growing problematically big for Wall Street
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Yahoo
5 minutes ago
- Yahoo
S&P Futures Gain With Focus on U.S. JOLTs Report and Corporate Earnings, FOMC Meeting on Tap
September S&P 500 E-Mini futures (ESU25) are trending up +0.24% this morning, extending yesterday's gains, while investors shift their focus from recent U.S. trade deals to economic data, a new round of corporate earnings reports, and the start of the Federal Reserve's two-day policy meeting. In yesterday's trading session, Wall Street's main stock indexes closed mixed, with the S&P 500 and Nasdaq 100 notching new all-time highs. Super Micro Computer (SMCI) surged over +10% and was the top percentage gainer on the S&P 500 amid optimism that demand for its AI servers will remain strong. Also, Advanced Micro Devices (AMD) climbed more than +4% and was the top percentage gainer on the Nasdaq 100 following reports that the chipmaker plans to raise the price of its Instinct MI350 AI accelerator from $15,000 to $25,000. In addition, Nike (NKE) rose over +3% and was the top percentage gainer on the Dow after JPMorgan upgraded the stock to Overweight from Neutral with a price target of $93. On the bearish side, Revvity (RVTY) slumped more than -8% and was among the top percentage losers on the S&P 500 after the health sciences company cut its full-year adjusted EPS guidance. More News from Barchart Tesla Just Signed a Chip Supply Deal with Samsung. What Does That Mean for TSLA Stock? Dear Microsoft Stock Fans, Mark Your Calendars for Aug. 1 Is Lucid Motors Stock a Buy, Sell, or Hold for July 2025? Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. 'This is about as busy as a week can get in the markets,' said Chris Larkin at E*Trade from Morgan Stanley. 'This week could make or break that momentum in the near term.' Meanwhile, U.S. President Donald Trump said on Monday that a blanket 15% to 20% 'world tariff' rate would apply to trading partners that fail to strike separate trade deals with the U.S. before August 1st. The Federal Reserve kicks off its two-day meeting later in the day. The central bank is widely expected to leave the Fed funds rate unchanged in a range of 4.25% to 4.50% on Wednesday. The decision comes amid intense political pressure, evolving trade policy, and economic cross-currents. Investors will closely monitor Chair Jerome Powell's post-policy meeting press conference for clues on a potential September rate cut. Second-quarter corporate earnings season is in full swing, with investors looking ahead to new reports from prominent companies today, including Visa (V), Procter & Gamble (PG), UnitedHealth (UNH), Merck & Co. (MRK), Booking (BKNG), Boeing (BA), Starbucks (SBUX), and PayPal (PYPL). According to Bloomberg Intelligence, companies in the S&P 500 are expected to post an average +4.5% increase in quarterly earnings for Q2 compared to the previous year, above the pre-season forecast of +2.8%. On the economic data front, all eyes are on the U.S. JOLTs Job Openings figures, set to be released in a couple of hours. Economists, on average, forecast that the June JOLTs Job Openings will arrive at 7.510 million, compared to the May figure of 7.769 million. Investors will also focus on the U.S. Conference Board's Consumer Confidence Index, which came in at 93.0 in June. Economists expect the July figure to be 95.9. The U.S. S&P/CS HPI Composite - 20 n.s.a. will be reported today. Economists expect the May figure to ease to +2.9% y/y from +3.4% y/y in April. U.S. Wholesale Inventories data will be released today as well. Economists forecast the preliminary June figure at -0.1% m/m, compared to -0.3% m/m in May. In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.410%, down -0.72%. The Euro Stoxx 50 Index is up +1.03% this morning as positive earnings news shifted some investors' attention away from worries over the outcome of tariff talks. Defense stocks rebounded on Tuesday after three consecutive sessions of losses. Preliminary data from the National Statistics Institute released on Tuesday showed that Spain's economy grew at a faster pace in the second quarter. Separately, a survey from the European Central Bank showed that consumers' median expectation for inflation over the next 12 months fell to 2.6% in June from 2.8% in May, supporting signs that the latest bout of surging price growth has subsided. Meanwhile, the EU avoided an immediate trade war with the U.S., but the trade deal has faced criticism from numerous voices across the Eurozone. The EU and U.S. will seek to finalize a non-legally binding joint statement by August 1st that will elaborate on certain elements agreed upon over the weekend, according to a senior EU official. Goldman Sachs raised its 2025 economic growth forecast for the Eurozone to 1.1% from 1% following the U.S.-EU trade deal, while projecting that U.S. tariffs will reduce growth by 0.4% through the end of next year, down from its earlier estimate of 0.6%. In corporate news, N.V. ( climbed over +9% after the Dutch medical-technology company raised its profitability forecast, saying the impact of the trade war was less severe than it had feared. Also, EssilorLuxottica ( rose more than +6% after the company posted a rise in first-half operating profit despite being impacted by tariffs. Spain's GDP (preliminary) data was released today. The Spanish GDP has been reported at +0.7% q/q in the second quarter, stronger than expectations of +0.6% q/q. Asian stock markets today closed mixed. China's Shanghai Composite Index (SHCOMP) closed up +0.33%, and Japan's Nikkei 225 Stock Index (NIK) closed down -0.79%. China's Shanghai Composite Index closed higher today as investors awaited the outcome of trade talks between Beijing and Washington and the upcoming Politburo meeting. Healthcare stocks extended their rally on Tuesday. U.S. and Chinese officials on Monday wrapped up the first of two days of talks focused on extending their tariff truce past a mid-August deadline and exploring ways to preserve trade relations while ensuring economic security. Meanwhile, Beijing intensified efforts to tackle deflationary pressures and rein in industrial overcapacity. President Xi Jinping criticized local governments for excessively concentrating investment in sectors like artificial intelligence, computing power, and new energy vehicles, pointing to structural inefficiencies in the economy. In other news, China announced measures to boost the birthrate by offering an annual childcare subsidy of 3,600 yuan (about $500) until age three. However, Nomura Holdings said the subsidy would have only a limited effect on consumption and the birth rate, given its relatively small size. Investor focus this week is also on the country's Politburo meeting, which will likely focus on curbing excessive competition and addressing overcapacity, while many analysts view major stimulus as unlikely. In corporate news, WuXi AppTec surged over +11% in Hong Kong after the biopharmaceutical firm reported a 102% jump in first-half net profit and raised its full-year revenue guidance. Japan's Nikkei 225 Stock Index closed lower today, falling for the third straight session, as uncertainty over the corporate outlook and domestic politics weighed on sentiment. Chip and financial stocks led the declines on Tuesday. Analysts said that investors remain cautious about the corporate outlook, which could be affected by the 15% tariff set to be imposed on Japan's exports to the U.S. Investors are also concerned that Japan's weakened government could give in to opposition demands for tax cuts, straining the country's already stretched fiscal position. Meanwhile, most Japanese government bond yields fell on Tuesday after a two-year sovereign note auction attracted the strongest demand since October, as investors saw the current yield level as appealing amid lingering uncertainties over the Bank of Japan's rate hike trajectory. Investors await the BOJ's monetary policy decision on Thursday, with the central bank expected to keep its benchmark rate unchanged at 0.5%. Governor Kazuo Ueda's reaction to the U.S. trade deal will be in focus after his deputy stated that the agreement increased the chances of economic projections being met, a key condition for an additional rate hike. Japan said on Tuesday that the trade deal with the U.S. removed uncertainties surrounding U.S. trade policies, but added that risks of those policies exerting downward pressure on the Japanese economy still warrant close attention. In corporate news, Nitto Denko slid over -3% after the industrial materials maker reported a 16% drop in Q1 operating profit. At the same time, Nomura Research surged more than +8% after the consulting and IT solutions provider posted a 17% increase in Q1 net profit. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -0.61% to 22.71. Pre-Market U.S. Stock Movers Sarepta Therapeutics (SRPT) jumped over +36% in pre-market trading after receiving notification from the Food and Drug Administration that it may lift its voluntary pause on shipments of its gene therapy for ambulatory patients with Duchenne muscular dystrophy. Cadence Design Systems (CDNS) climbed more than +7% in pre-market trading after the company reported stronger-than-expected Q2 results and raised its full-year guidance. Whirlpool (WHR) plunged more than -16% in pre-market trading after the appliance maker posted downbeat Q2 results and cut its full-year adjusted EPS guidance. You can see more pre-market stock movers here Today's U.S. Earnings Spotlight: Tuesday - July 29th Visa (V), P&G (PG), UnitedHealth (UNH), Merck & Co. (MRK), Booking (BKNG), Boeing (BA), Spotify Tech (SPOT), Starbucks (SBUX), American Tower (AMT), Royal Caribbean Cruises (RCL), Mondelez (MDLZ), United Parcel Service (UPS), Ecolab (ECL), PayPal (PYPL), Republic Services (RSG), Johnson Controls (JCI), Carrier Global (CARR), Norfolk Southern (NSC), Corning (GLW), CBRE (CBRE), Sysco (SYY), Electronic Arts (EA), Arch Capital (ACGL), Seagate (STX), DTE Energy (DTE), PPG Industries (PPG), Hubbell (HUBB), SoFi Technologies (SOFI), Expand Energy (EXE), Essex Property (ESS), Ares Capital (ARCC), Teradyne (TER), W P Carey Inc (WPC), Logitech (LOGI), Unum (UNM), Banco De Chile (BCH), Incyte (INCY), Houlihan Lokey Inc (HLI), Regency Centers (REG), BXP Inc (BXP), FTAI Aviation (FTAI), Stanley Black Decker (SWK), Nextracker (NXT), Frontier Communications Parent (FYBR), Penumbra Inc (PEN), UMB Financial (UMBF), Lithia Motors (LAD), Qorvo Inc (QRVO), Axis Capital (AXS), PJT Partners Inc (PJT), CommVault (CVLT), Armstrong World Industries (AWI), Avis (CAR), Eagle Materials (EXP), Graphic Packaging (GPK), ExlServices (EXLS), Chemed (CHE), Repligen (RGEN), STAG Industrial (STAG), Zurn Water Solutions (ZWS), Caesars (CZR), Varonis Systems (VRNS), Marathon Digital (MARA), Red Rock Resorts (RRR), GATX (GATX), Landstar (LSTR), Sensata Tech (ST), Asbury Automotive (ABG), Alkermes Plc (ALKS), Franklin Electric (FELE), Herc Holdings (HRI), Freshworks (FRSH), Kadant (KAI), Artisan Partners AM (APAM), Highwoods Properties (HIW), The Cheesecake (CAKE), First Interstate BancSystem (FIBK), WesBanco (WSBC), Brightstar Lottery (BRSL), NMI Holdings (NMIH), Polaris Industries (PII), Titan America (TTAM), Four Corners Property Trust Inc (FCPT), Acadia (AKR), GeneDx Holdings (WGS), Ashland Global (ASH), O-I Glass (OI), Inventrust Properties (IVT), Constellium Nv (CSTM), Kiniksa Pharma (KNSA), Camping World Holdings (CWH), Werner (WERN), First Commonwealth Financial (FCF), JBG SMITH Properties (JBGS), Northwest Bancshares (NWBI), AtriCure (ATRC), JetBlue (JBLU), American Assets (AAT), LendingClub (LC), Teladoc Inc (TDOC), Apollo Commercial RE Finance (ARI), Pebblebrook Hotel (PEB), TriMas (TRS), Cimpress NV (CMPR), CECO Environmental (CECO), Neogen (NEOG), Global Industrial Co (GIC), Expro Holdings NV (XPRO). On the date of publication, Oleksandr Pylypenko 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 Sign in to access your portfolio
USA Today
6 minutes ago
- USA Today
US stock futures higher after EU trade deal boost
U.S. stock futures are higher after the broad S&P 500 scored its sixth straight record high close on July 28. It also was the S&P 500's 15th record high close this year. The tech-heavy Nasdaq also closed at an all-time high. Stocks got a boost after the European Union struck a trade deal with the United States over the weekend. The deal included billions of dollars worth of investments by the EU in the United States and a 15% tariff for most European goods entering the United States. Countries that haven't agreed on a trade deal with the United States have until Aug 1 to reach one. Otherwise, President Donald Trump said the baseline global tariff rate will be between 15% and 20%. At 6:10 a.m. ET, futures tied to the blue-chip Dow added 0.15%, while S&P 500 futures rose 0.28% and Nasdaq futures jumped 0.45%. Make or break week Since mid-April, the S&P 500 has surged nearly 28%, the fastest rebound in over 50 years. Now comes the real test, said Chief Investment Officer Gene Goldman at investment management firm Cetera. Stocks will face a triple threat this week that could either justify the recent rally or create headwinds, he said. The first potential threat is earnings, especially from so-called Magnificent Seven influential megacap tech companies Facebook parent Meta, Microsoft, Amazon and Apple. Investors will be looking at whether artificial intelligence spending is slowing at all. AI spending has boosted tech companies this year. The second potential threat is the Federal Reserve policy meeting. "The Fed is likely to hold rates steady in July with dissents from Governors Waller and Bowman, marking the first time two governors have dissented at a meeting since 1993," said Russell Investments' Global Chief Investment Strategist Paul Eitelman. Eitelman expects the next rate cut at the Fed's September meeting. The last potential threat is July's employment report at the end of the week. It's expected to show 102,000 new jobs, down from 147,000 in June and an uptick in the unemployment rate to 4.2% from 4.1%. Company news Cryptocurrency PayPal launched "Pay with Crypto" to allow consumers to use many types of cryptocurrencies to complete their purchases, and use wallets such as Coinbase and MetaMask. Once the transaction is completed, the payments will automatically convert to fiat or stablecoin. Pay with Crypto will allow companies to accept cross-border payments in cryptocurrencies and lower their costs for accepting such a transaction, PayPal said. Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@ and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.
Yahoo
14 minutes ago
- Yahoo
2 Top Stocks That Could Dominate the Rest of 2025
Key Points Nvidia's long-term growth opportunity might be bigger than anyone can imagine. Wall Street continues to underestimate Google's AI technology and competitive position in search. 10 stocks we like better than Nvidia › The markets are still reaching new highs in the middle of the year. The Nasdaq Composite is currently up 9.1% year to date at the time of writing. In the aftermath of the market sell-off earlier this year, two top tech stocks asserted their dominance in the second quarter. Since April 1, Nvidia (NASDAQ: NVDA) shares are up 57%, while shares of Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) are up 22%. Here's why these stocks could outperform for the rest of 2025 and remain rewarding investments for the long term. 1. Nvidia Nvidia is providing mission-critical technology to power the revolution in artificial intelligence (AI). It focuses on developing graphics processing units (GPUs), which were originally designed for graphics-intensive software like video games, and are now being used by the most powerful supercomputers. The company's market cap is now over $4 trillion, making it the most valuable company in the world. Nvidia controls around 90% of the data center GPU market. Its hardware is found in all the leading data centers and used by leading AI researchers like OpenAI, and these customers continue to pour billions into new chips. Last year, revenue doubled to $131 billion, and the current Wall Street consensus forecast has that reaching $200 billion this year. All signs point to Nvidia's revenue continuing to grow into the hundreds of billions of dollars over the next several years, as the company's addressable market continues to expand. For example, nations around the world are building their own sovereign AI infrastructure to be less dependent on foreign AI models that weren't trained on their own languages and cultures. Nvidia CEO Jensen Huang says this is a $1.5 trillion opportunity. Because there's no substitute for Nvidia's ultrapowerful GPUs, the company stands to generate substantial wealth for long-term investors. On top of the sovereign AI opportunity, Nvidia also should benefit from growth in robotics and autonomous vehicles. Huang sees the potential for robots to be the next multitrillion-dollar industry. If you didn't buy shares during the stock's recent dip, you shouldn't feel you missed out. It's still trading at a reasonable forward earnings multiple of 40; this is within its trading range over the last three years. Long-term, the stock still offers substantial upside as it capitalizes on the global investment pouring into AI from every industry. 2. Alphabet (Google) Alphabet has a strong competitive moat based on billions of people who use Gmail, YouTube, Search, and its other services every day. The company reported another stellar earnings report for the second quarter, beating expectations, and showing why it's a leading AI company to bet on for the long term. The large number of people who use Google services continued to fuel strong growth in advertising revenue in the second quarter. Alphabet said total revenue grew 14% year over year, with net income surging 19%, and earnings per share up 22%. Solid growth in Google Search revenue eased fears that competing AI models from xAI and OpenAI are hurting Google's core business. Search revenue hit a record $54 billion, up 12% year over year. This growth indicates healthy advertising demand, as users engage with Google's AI Overviews feature, which puts a convenient summary at the top of a search query. Another key indicator of Google's competitive position is strong growth in the cloud business. Google Cloud has been gaining share in a $348 billion cloud market, according to Synergy Research. Revenue hit $13.6 billion in Q2, up 32% year over year. Google Cloud continues to show impressive margin improvements, with operating income increasing from $1.2 billion in Q2 2024 to $2.8 billion in the recent quarter. These results indicate that Alphabet stock is undervalued. Despite prospects for double-digit earnings growth in the coming years, you can buy the stock at a forward P/E of just 20, which looks like a steal for this Magnificent Seven company. The stock seems in the process of being revalued by the market and might be trading at a higher P/E entering 2026, so it may outperform market averages. Do the experts think Nvidia is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Nvidia make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,041% vs. just 183% for the S&P — that is beating the market by 858.71%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* The 10 stocks that made the cut could produce monster returns in the coming years. 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 28, 2025 John Ballard has positions in Nvidia. The Motley Fool has positions in and recommends Alphabet and Nvidia. The Motley Fool has a disclosure policy. 2 Top Stocks That Could Dominate the Rest of 2025 was originally published by The Motley Fool Sign in to access your portfolio
