Stock market today: S&P 500 notches 4th consecutive record as Google earnings fuel AI hopes
The tech-heavy Nasdaq Composite (^IXIC) rose 0.2% to also close at a fresh record, while the S&P 500 ended up just 0.1% higher. The Dow Jones Industrial Average (^DJI) dropped 0.6% amid a post-earnings slide in IBM (IBM) shares.
Alphabet beat Wall Street's second quarter earnings expectations and doubled down on its AI spending spree. The Google parent's shares rose alongside other AI-linked stocks such as Nvidia (NVDA), helping buoy the tech-focused gauges.
Read more: Full earnings coverage in our live blog
But fellow "Magnificent Seven" stalwart Tesla's (TSLA) stock sank after an earnings miss, a continued slump in European sales, and a warning from CEO Elon Musk that the EV maker faced "rough quarters" as President Trump's budget bill kills off tax credits.
Trade deal hopes continued to run high after the US-Japan pact helped fuel more records for the S&P 500 and Nasdaq Composite on Wednesday.
The EU and US are closing in on an agreement that would impose a 15% tariff for most imports from Europe, instead of the 30% threatened, media reports said.
Read more: The latest on Trump's tariffs
That rate is emerging as a potential new baseline for the "reciprocal" tariffs set to kick in on Aug. 1, going by Trump's comments late Wednesday. Previously, the president had imposed a 10% baseline rate on countries as part of his sweeping April tariffs.
Stocks closed mixed, but S&P 500 ekes out 4th consecutive record close, Nasdaq notches fresh high
Stocks closed mixed on Thursday, but the S&P 500 (^GSPC) managed to end the day just above the flat line to close at its fourth record in a row for the week over optimism that AI is paying off for Big Tech players like Alphabet (GOOG).
The Dow Jones Industrial Average (^DJI) dropped 0.6%, while the tech-heavy Nasdaq Composite (^IXIC) rose roughly 0.2% to close at a fresh record.
As Yahoo Finance's Dan Howley reports, Google parent Alphabet (GOOG, GOOGL) is finally starting to cash in on the billions of dollars it's spending on its rapid AI buildout. The company reported better-than-anticipated earnings, with CEO Sundar Pichai pointing to AI as a key growth catalyst for its various products.
Meanwhile, Tesla (TSLA) shares declined 8% after the EV maker posted an earnings and revenue miss in the second quarter and CEO Elon Musk hinted at a "few rough quarters" amid mounting challenges for the automaker.
Fed gives media tour ahead of Trump's visit to central bank headquarters
Fed officials gave a media tour ahead of President Trump's visit to the central bank's headquarters this afternoon after weeks of mounting criticisms over a $2.5 billion renovation.
Reporters posted images on social media on Thursday showcasing the renovation prior to the highly unusual presidential visit expected at the building on the National Mall, slated for 4 p.m. ET.
The construction site tour is just one of numerous political pressure points Trump is putting on policymakers after publicly insulting Fed Chair Jerome Powell and calling for him to lower interest rates.
Meanwhile, as Yahoo Finance's Jennifer Schonberger reports, the Fed just received a new legal headache Thursday when a money manager sued Powell and other central bank policymakers in a Washington, D.C., federal court. The lawsuit alleges the Fed is violating a 1976 federal law by keeping its monetary policy meetings behind closed doors.
Apple's iOS 26 brings the most significant change to your iPhone in years
Yahoo Finance's Dan Howley reports:
Read more here.
Southwest stock falls 11% after airline cuts profit forecast
Southwest (LUV) stock tanked on Thursday after the airline's earnings results missed estimates. Shares fell over 12% as the earnings call with investors began. (You can listen to the full call here.)
As Ines Ferré detailed below with American Airlines, Southwest was hit by a sluggish start to the peak summer travel season that translated to weak domestic travel demand and softer fares.
Earlier on Thursday, Southwest CFO Tom Doxey told Yahoo Finance that the company's disappointing results were primarily caused by broader economic challenges, tariff uncertainty, and weaker consumer sentiment.
Southwest lowered its full-year pre-tax profit (EBIT) guidance to $600 million-$800 million from the $1.7 billion forecast previously.
'There's an estimate of about $800 million to $1 billion in revenue degradation that has occurred as a result of the macro,' Doxey said. 'The number is large, but it is macro-driven.'
Southwest also missed Wall Street estimates for Q2 profit. The company reported operating revenue of $7.24 billion in the quarter through June, compared with $7.35 billion a year earlier. The budget carrier reported an adjusted profit per share of $0.43, compared with analysts' average expectations of $0.51, according to data compiled by LSEG.
Read more about the latest earnings updates here.
American Airlines stock tumbles as carrier cites 'tough' July for domestic travel
American Airlines (AAL) stock slumped 6% on Thursday as the carrier echoed a trend seen with its peer Southwest (LUV) — weaker-than-expected domestic travel last quarter.
"July has been tough, really hit hard by the uncertainty during the primary booking period," American CEO Robert Isom said during the company's earnings call on Thursday morning.
The airline pointed out domestic revenue declined about 6% year over year over year in the three-month period ending in June. However, the company expects that July will be the low point and that performance will improve sequentially month over month. In other words, Americans financials will recover during the second half of the year.
"Let's face it, the domestic network has been under stress because of the uncertainty in the economy and the reluctance of domestic passengers to get in the game," Isom said
Read more here.
It sounds like Trump now has a new minimum tariff rate: 15%
Yahoo Finance's Ben Werschkul reports:
Read more here.
Stock watch: TKO Group + Netflix on Hulk Hogan news
Reports have surfaced this afternoon that iconic wrestler Hulk Hogan has died at the age of 71. TMZ and The NY Post both reported the news.
I would keep a close eye on TKO Group Holdings (TKO) on this one. The company is the holding company for WWE and UFC. Hogan, of course, is the most recognizable wrestler ever, bar none. I am curious about how the company honors Hogan in the months ahead, and the details could be shared on the company's Aug. 6 earnings call.
I would also keep an eye on Netflix (NFLX) as WWE is exclusively streamed on there now. I suspect the upcoming Monday Night Raw episode may get more eyeballs than norma; following this news.
Intel to report Q2 earnings as Wall Street looks for signs of turnaround
Intel (INTC) will report its second quarter earnings on Thursday as the company's new CEO, Lip-Bu Tan, continues his attempt to turn around the ailing chip giant, Yahoo Finance's Dan Howley reports.
Howley writes:
Read more about Intel's upcoming earnings report here.
Wall Street bullish on Alphabet as Search growth stays steady amid AI disruption fears
Wall Street analysts were bullish on Alphabet stock following the Google parent's earnings, as Search revenue continued to climb despite fears of AI displacing the dominant search engine.
"Another stable qtr for Search results increases our confidence in the AI transition and should ease concerns on a potential revenue reset," Bank of America analyst Justin Post wrote in a note. Post raised his price outlook on Google shares to $217 from $210.
Post and other analysts noted that AI Overviews helped drive 10% more Search queries for the types of searches that the AI is used for. The Overviews has 2 billion monthly users, and the Gemini app has hit 450 million monthly active users.
RBC Capital analyst Brad Erickson raised his price target on Google shares to $220 from $200, saying, "We still believe that GOOGL's AI competitors along with its own AI search tools are driving traffic headwinds across the internet, and yet, it is still finding a way to distribute enough intentful volume to grow the business plenty fast."
Still, Alphabet has fallen short of giving hard dollar figures for its AI business while focusing on how the technology is driving growth in its existing businesses.
Notably, analysts didn't seem discouraged by Alphabet raising its capital expenditure guidance for the year to $85 billion from $75 billion, driven by spending in infrastructure such as data centers and server equipment to power AI.
Erickson said the company's "AI investment decisions are being made with clear ROI signals in front of it."
Fed gets new legal headache with lawsuit seeking to make FOMC rate meetings public
The Federal Reserve got a new legal headache Thursday when a money manager sued Chair Jerome Powell and other central bank policymakers in a Washington, D.C., federal court, arguing it is violating a 1976 federal law by keeping its monetary policy meetings behind closed doors, Yahoo Finance's Jennifer Schonberger reports.
Schonberger writes:
Read the full story here.
UnitedHealth stock drops after company confirms DOJ investigation into Medicare billing practices
UnitedHealth (UNH) stock fell as much as 2% early Thursday after the insurance giant disclosed in a regulatory filing Thursday morning that it is facing an investigation from the Department of Justice into its Medicare billing practices, Yahoo Finance's Jake Conley reports.
Conley writes:
Read the full story here.
Stocks trade mixed at the open
US stocks traded mixed on Thursday, as hopes lifted for a US-EU trade deal and Wall Street digested earnings results from tech giants Alphabet (GOOGL, GOOG) and Tesla (TSLA) as well as fresh labor market data.
The Dow Jones Industrial Average (^DJI) dropped 0.6%, after the blue-chip index ended Wednesday just shy of tis first record close this year.
The tech-heavy Nasdaq Composite (^IXIC) rose roughly 0.3%, while the S&P 500 (^GSPC) climbed more than 0.1%.
IBM stock slides after software sales disappoint
International Business Machines stock (IBM) slid 6% ahead of the opening bell after second quarter sales in its core software segment were lower than expected and the company did not provide a forecast for the third quarter.
IBM's software segment, which has traditionally been a bright spot, reported sales of $7.39 billion, missing analysts' average estimate of $7.41 billion, per Reuters. After a 30% run-up in the stock year to date, the company had little room to miss estimates.
Still, IBM's adjusted earnings per share of $2.80 topped the Street's expectations, and its revenue of $16.98 billion for the quarter beat estimates of $16.59 billion.
Companies' spending on artificial intelligence infrastructure spurred demand for IBM's latest AI-specialized mainframes. The infrastructure segment, which houses its mainframe, reported revenue of $4.14 billion, beating estimates of $3.81 billion.
Read more here from Reuters.
Jobless claims hit lowest level in three months
Amid a quiet week of economic data, investors were greeted with yet another sign that the US labor market isn't flashing glaring alarm signals.
Data from the Department of Labor released Thursday morning showed 217,000 initial jobless claims were filed in the week ending July 19, down 4,000 from the week prior and the lowest number of weekly filings since the week of April 12. After surging in May, weekly filings have consistently declined throughout the start of the summer.
Meanwhile, 1.955 million continuing claims were filed, up about 4,000 from the week prior and hovering near the highest level seen since November 2021. Economists see an increase in continuing claims as a sign that those out of work are taking longer to find new jobs.
Tesla stock slides as Musk warns of a 'few rough quarters'
Tesla's (TSLA) stock is sinking in premarket as a warning from CEO Elon Musk rings in investors' ears.
Shares fell over 6% after Tesla posted an earnings miss, setting the stage for a tough stretch ahead. The automaker faces the end of EV incentives brought in by President Trump, alongside potential delays to its autonomous vehicle rollout.
'We probably could have a few rough quarters,' Musk said, per Bloomberg.
Meanwhile, a report Thursday showed Tesla's sales in Europe fell in June for the sixth straight month, falling 23%.
Tesla's finance chief flagged other challenges on a conference call with analysts. Yahoo Finance's Pras Subramanian reports:
Read more here.
The AI trade hasn't changed for Big Tech — and that's working for them
Alphabet (GOOG, GOOGL) and Tesla (TSLA) kicked off Big Tech earnings on Wednesday afternoon, and Yahoo Finance's Hamza Shaban recaps what investors learned in today's Morning Brief:
Read more here.
Good morning. Here's what's happening today.
Economic data: Initial jobless claims (week ending July 19) Chicago Fed national activity index (June); S&P Global US manufacturing PMI (July preliminary); S&P Global US services PMI (July preliminary); S&P global US composite PMI (July preliminary); New home sales (June)
Earnings: American Airlines (AAL), Blackstone (BX), Deckers (DECK), Dow (DOW), Honeywell (HON), Intel (INTC), Keurig Dr Pepper (KDP), Nasdaq (NDAQ), Nokia (NOK), Southwest Airlines (LUV), Union Pacific (UNP)
Here are some of the biggest stories you may have missed overnight and early this morning:
Trump signals baseline hike in 'reciprocal' tariffs to 15%
The AI trade hasn't changed for Big Tech — and that's working for them
Trump to visit Fed HQ for refurb check as he battles with Powell
Keurig Dr Pepper beats estimates but coffee inflation lurks
Google beats on earnings, doubles down on AI spending spree
Tesla stock sinks after earnings miss, 'rough' patch warning
Chipotle plunges after company reports 2nd straight sales decline
Goldman's trading desk touts cheap hedges against S&P 500 slide
Meme stock rally has investors feeling 'invulnerable'
Meme stock rally has investors feeling 'invulnerable'
Retail investors with an appetite for risk are piling into speculative trades and creating a new roster of meme-stocks, helping power a broader rally in markets, Yahoo Finance's Jake Conley reports:
Read more here.
STMicro stock falls by most in a year after surprise loss
STMicroelectronics (STM) delivered a double whammy in its earnings on Thursday: A surprise Q2 loss from restructuring charges and a disappointing outlook for Q3.
US-listed stock in the European chipmaker slid over 10% in premarket trading, while its shares in Paris (STMPA.PA) fell to their lowest in a year at one point, down 13%.
Bloomberg reports:
Read more here.
Trending tickers: Chipotle Mexican Grill, T-mobile and Wolfspeed
Here are some top stocks trending on Yahoo Finance in premarket trading:
Chipotle Mexican Grill (CMG) stock fell 10% before the bell on Thursday after reporting another quarter of negative sales growth.
The fast-casual restaurant chain posted results on Wednesday as it navigates an uncertain consumer environment and as its new leadership deals with the most challenging backdrop in years.
T-mobile (TMUS) stock rose 5% premarket on Thursday after beating analyst estimates on Wednesday. The telecom group's CEO Mike Sievert told Yahoo Finance's executive editor Brian Sozzi that the company's steady value messaging is helping it to gain market share.
Wolfspeed (WOLF) shares rose 18% before the bell. The chipmaker's stock reacted positively this week to the new US-Japan trade deal and has been up 13% over the last five days. The US-Japan trade deal boosts optimism for Wolfspeed as it supports Renesas' EV chip production, raising hopes for more deals with automakers like Jaguar Land Rover.
Stocks closed mixed, but S&P 500 ekes out 4th consecutive record close, Nasdaq notches fresh high
Stocks closed mixed on Thursday, but the S&P 500 (^GSPC) managed to end the day just above the flat line to close at its fourth record in a row for the week over optimism that AI is paying off for Big Tech players like Alphabet (GOOG).
The Dow Jones Industrial Average (^DJI) dropped 0.6%, while the tech-heavy Nasdaq Composite (^IXIC) rose roughly 0.2% to close at a fresh record.
As Yahoo Finance's Dan Howley reports, Google parent Alphabet (GOOG, GOOGL) is finally starting to cash in on the billions of dollars it's spending on its rapid AI buildout. The company reported better-than-anticipated earnings, with CEO Sundar Pichai pointing to AI as a key growth catalyst for its various products.
Meanwhile, Tesla (TSLA) shares declined 8% after the EV maker posted an earnings and revenue miss in the second quarter and CEO Elon Musk hinted at a "few rough quarters" amid mounting challenges for the automaker.
Stocks closed mixed on Thursday, but the S&P 500 (^GSPC) managed to end the day just above the flat line to close at its fourth record in a row for the week over optimism that AI is paying off for Big Tech players like Alphabet (GOOG).
The Dow Jones Industrial Average (^DJI) dropped 0.6%, while the tech-heavy Nasdaq Composite (^IXIC) rose roughly 0.2% to close at a fresh record.
As Yahoo Finance's Dan Howley reports, Google parent Alphabet (GOOG, GOOGL) is finally starting to cash in on the billions of dollars it's spending on its rapid AI buildout. The company reported better-than-anticipated earnings, with CEO Sundar Pichai pointing to AI as a key growth catalyst for its various products.
Meanwhile, Tesla (TSLA) shares declined 8% after the EV maker posted an earnings and revenue miss in the second quarter and CEO Elon Musk hinted at a "few rough quarters" amid mounting challenges for the automaker.
Fed gives media tour ahead of Trump's visit to central bank headquarters
Fed officials gave a media tour ahead of President Trump's visit to the central bank's headquarters this afternoon after weeks of mounting criticisms over a $2.5 billion renovation.
Reporters posted images on social media on Thursday showcasing the renovation prior to the highly unusual presidential visit expected at the building on the National Mall, slated for 4 p.m. ET.
The construction site tour is just one of numerous political pressure points Trump is putting on policymakers after publicly insulting Fed Chair Jerome Powell and calling for him to lower interest rates.
Meanwhile, as Yahoo Finance's Jennifer Schonberger reports, the Fed just received a new legal headache Thursday when a money manager sued Powell and other central bank policymakers in a Washington, D.C., federal court. The lawsuit alleges the Fed is violating a 1976 federal law by keeping its monetary policy meetings behind closed doors.
Fed officials gave a media tour ahead of President Trump's visit to the central bank's headquarters this afternoon after weeks of mounting criticisms over a $2.5 billion renovation.
Reporters posted images on social media on Thursday showcasing the renovation prior to the highly unusual presidential visit expected at the building on the National Mall, slated for 4 p.m. ET.
The construction site tour is just one of numerous political pressure points Trump is putting on policymakers after publicly insulting Fed Chair Jerome Powell and calling for him to lower interest rates.
Meanwhile, as Yahoo Finance's Jennifer Schonberger reports, the Fed just received a new legal headache Thursday when a money manager sued Powell and other central bank policymakers in a Washington, D.C., federal court. The lawsuit alleges the Fed is violating a 1976 federal law by keeping its monetary policy meetings behind closed doors.
Apple's iOS 26 brings the most significant change to your iPhone in years
Yahoo Finance's Dan Howley reports:
Read more here.
Yahoo Finance's Dan Howley reports:
Read more here.
Southwest stock falls 11% after airline cuts profit forecast
Southwest (LUV) stock tanked on Thursday after the airline's earnings results missed estimates. Shares fell over 12% as the earnings call with investors began. (You can listen to the full call here.)
As Ines Ferré detailed below with American Airlines, Southwest was hit by a sluggish start to the peak summer travel season that translated to weak domestic travel demand and softer fares.
Earlier on Thursday, Southwest CFO Tom Doxey told Yahoo Finance that the company's disappointing results were primarily caused by broader economic challenges, tariff uncertainty, and weaker consumer sentiment.
Southwest lowered its full-year pre-tax profit (EBIT) guidance to $600 million-$800 million from the $1.7 billion forecast previously.
'There's an estimate of about $800 million to $1 billion in revenue degradation that has occurred as a result of the macro,' Doxey said. 'The number is large, but it is macro-driven.'
Southwest also missed Wall Street estimates for Q2 profit. The company reported operating revenue of $7.24 billion in the quarter through June, compared with $7.35 billion a year earlier. The budget carrier reported an adjusted profit per share of $0.43, compared with analysts' average expectations of $0.51, according to data compiled by LSEG.
Read more about the latest earnings updates here.
Southwest (LUV) stock tanked on Thursday after the airline's earnings results missed estimates. Shares fell over 12% as the earnings call with investors began. (You can listen to the full call here.)
As Ines Ferré detailed below with American Airlines, Southwest was hit by a sluggish start to the peak summer travel season that translated to weak domestic travel demand and softer fares.
Earlier on Thursday, Southwest CFO Tom Doxey told Yahoo Finance that the company's disappointing results were primarily caused by broader economic challenges, tariff uncertainty, and weaker consumer sentiment.
Southwest lowered its full-year pre-tax profit (EBIT) guidance to $600 million-$800 million from the $1.7 billion forecast previously.
'There's an estimate of about $800 million to $1 billion in revenue degradation that has occurred as a result of the macro,' Doxey said. 'The number is large, but it is macro-driven.'
Southwest also missed Wall Street estimates for Q2 profit. The company reported operating revenue of $7.24 billion in the quarter through June, compared with $7.35 billion a year earlier. The budget carrier reported an adjusted profit per share of $0.43, compared with analysts' average expectations of $0.51, according to data compiled by LSEG.
Read more about the latest earnings updates here.
American Airlines stock tumbles as carrier cites 'tough' July for domestic travel
American Airlines (AAL) stock slumped 6% on Thursday as the carrier echoed a trend seen with its peer Southwest (LUV) — weaker-than-expected domestic travel last quarter.
"July has been tough, really hit hard by the uncertainty during the primary booking period," American CEO Robert Isom said during the company's earnings call on Thursday morning.
The airline pointed out domestic revenue declined about 6% year over year over year in the three-month period ending in June. However, the company expects that July will be the low point and that performance will improve sequentially month over month. In other words, Americans financials will recover during the second half of the year.
"Let's face it, the domestic network has been under stress because of the uncertainty in the economy and the reluctance of domestic passengers to get in the game," Isom said
Read more here.
American Airlines (AAL) stock slumped 6% on Thursday as the carrier echoed a trend seen with its peer Southwest (LUV) — weaker-than-expected domestic travel last quarter.
"July has been tough, really hit hard by the uncertainty during the primary booking period," American CEO Robert Isom said during the company's earnings call on Thursday morning.
The airline pointed out domestic revenue declined about 6% year over year over year in the three-month period ending in June. However, the company expects that July will be the low point and that performance will improve sequentially month over month. In other words, Americans financials will recover during the second half of the year.
"Let's face it, the domestic network has been under stress because of the uncertainty in the economy and the reluctance of domestic passengers to get in the game," Isom said
Read more here.
It sounds like Trump now has a new minimum tariff rate: 15%
Yahoo Finance's Ben Werschkul reports:
Read more here.
Yahoo Finance's Ben Werschkul reports:
Read more here.
Stock watch: TKO Group + Netflix on Hulk Hogan news
Reports have surfaced this afternoon that iconic wrestler Hulk Hogan has died at the age of 71. TMZ and The NY Post both reported the news.
I would keep a close eye on TKO Group Holdings (TKO) on this one. The company is the holding company for WWE and UFC. Hogan, of course, is the most recognizable wrestler ever, bar none. I am curious about how the company honors Hogan in the months ahead, and the details could be shared on the company's Aug. 6 earnings call.
I would also keep an eye on Netflix (NFLX) as WWE is exclusively streamed on there now. I suspect the upcoming Monday Night Raw episode may get more eyeballs than norma; following this news.
Reports have surfaced this afternoon that iconic wrestler Hulk Hogan has died at the age of 71. TMZ and The NY Post both reported the news.
I would keep a close eye on TKO Group Holdings (TKO) on this one. The company is the holding company for WWE and UFC. Hogan, of course, is the most recognizable wrestler ever, bar none. I am curious about how the company honors Hogan in the months ahead, and the details could be shared on the company's Aug. 6 earnings call.
I would also keep an eye on Netflix (NFLX) as WWE is exclusively streamed on there now. I suspect the upcoming Monday Night Raw episode may get more eyeballs than norma; following this news.
Intel to report Q2 earnings as Wall Street looks for signs of turnaround
Intel (INTC) will report its second quarter earnings on Thursday as the company's new CEO, Lip-Bu Tan, continues his attempt to turn around the ailing chip giant, Yahoo Finance's Dan Howley reports.
Howley writes:
Read more about Intel's upcoming earnings report here.
Intel (INTC) will report its second quarter earnings on Thursday as the company's new CEO, Lip-Bu Tan, continues his attempt to turn around the ailing chip giant, Yahoo Finance's Dan Howley reports.
Howley writes:
Read more about Intel's upcoming earnings report here.
Wall Street bullish on Alphabet as Search growth stays steady amid AI disruption fears
Wall Street analysts were bullish on Alphabet stock following the Google parent's earnings, as Search revenue continued to climb despite fears of AI displacing the dominant search engine.
"Another stable qtr for Search results increases our confidence in the AI transition and should ease concerns on a potential revenue reset," Bank of America analyst Justin Post wrote in a note. Post raised his price outlook on Google shares to $217 from $210.
Post and other analysts noted that AI Overviews helped drive 10% more Search queries for the types of searches that the AI is used for. The Overviews has 2 billion monthly users, and the Gemini app has hit 450 million monthly active users.
RBC Capital analyst Brad Erickson raised his price target on Google shares to $220 from $200, saying, "We still believe that GOOGL's AI competitors along with its own AI search tools are driving traffic headwinds across the internet, and yet, it is still finding a way to distribute enough intentful volume to grow the business plenty fast."
Still, Alphabet has fallen short of giving hard dollar figures for its AI business while focusing on how the technology is driving growth in its existing businesses.
Notably, analysts didn't seem discouraged by Alphabet raising its capital expenditure guidance for the year to $85 billion from $75 billion, driven by spending in infrastructure such as data centers and server equipment to power AI.
Erickson said the company's "AI investment decisions are being made with clear ROI signals in front of it."
Wall Street analysts were bullish on Alphabet stock following the Google parent's earnings, as Search revenue continued to climb despite fears of AI displacing the dominant search engine.
"Another stable qtr for Search results increases our confidence in the AI transition and should ease concerns on a potential revenue reset," Bank of America analyst Justin Post wrote in a note. Post raised his price outlook on Google shares to $217 from $210.
Post and other analysts noted that AI Overviews helped drive 10% more Search queries for the types of searches that the AI is used for. The Overviews has 2 billion monthly users, and the Gemini app has hit 450 million monthly active users.
RBC Capital analyst Brad Erickson raised his price target on Google shares to $220 from $200, saying, "We still believe that GOOGL's AI competitors along with its own AI search tools are driving traffic headwinds across the internet, and yet, it is still finding a way to distribute enough intentful volume to grow the business plenty fast."
Still, Alphabet has fallen short of giving hard dollar figures for its AI business while focusing on how the technology is driving growth in its existing businesses.
Notably, analysts didn't seem discouraged by Alphabet raising its capital expenditure guidance for the year to $85 billion from $75 billion, driven by spending in infrastructure such as data centers and server equipment to power AI.
Erickson said the company's "AI investment decisions are being made with clear ROI signals in front of it."
Fed gets new legal headache with lawsuit seeking to make FOMC rate meetings public
The Federal Reserve got a new legal headache Thursday when a money manager sued Chair Jerome Powell and other central bank policymakers in a Washington, D.C., federal court, arguing it is violating a 1976 federal law by keeping its monetary policy meetings behind closed doors, Yahoo Finance's Jennifer Schonberger reports.
Schonberger writes:
Read the full story here.
The Federal Reserve got a new legal headache Thursday when a money manager sued Chair Jerome Powell and other central bank policymakers in a Washington, D.C., federal court, arguing it is violating a 1976 federal law by keeping its monetary policy meetings behind closed doors, Yahoo Finance's Jennifer Schonberger reports.
Schonberger writes:
Read the full story here.
UnitedHealth stock drops after company confirms DOJ investigation into Medicare billing practices
UnitedHealth (UNH) stock fell as much as 2% early Thursday after the insurance giant disclosed in a regulatory filing Thursday morning that it is facing an investigation from the Department of Justice into its Medicare billing practices, Yahoo Finance's Jake Conley reports.
Conley writes:
Read the full story here.
UnitedHealth (UNH) stock fell as much as 2% early Thursday after the insurance giant disclosed in a regulatory filing Thursday morning that it is facing an investigation from the Department of Justice into its Medicare billing practices, Yahoo Finance's Jake Conley reports.
Conley writes:
Read the full story here.
Stocks trade mixed at the open
US stocks traded mixed on Thursday, as hopes lifted for a US-EU trade deal and Wall Street digested earnings results from tech giants Alphabet (GOOGL, GOOG) and Tesla (TSLA) as well as fresh labor market data.
The Dow Jones Industrial Average (^DJI) dropped 0.6%, after the blue-chip index ended Wednesday just shy of tis first record close this year.
The tech-heavy Nasdaq Composite (^IXIC) rose roughly 0.3%, while the S&P 500 (^GSPC) climbed more than 0.1%.
US stocks traded mixed on Thursday, as hopes lifted for a US-EU trade deal and Wall Street digested earnings results from tech giants Alphabet (GOOGL, GOOG) and Tesla (TSLA) as well as fresh labor market data.
The Dow Jones Industrial Average (^DJI) dropped 0.6%, after the blue-chip index ended Wednesday just shy of tis first record close this year.
The tech-heavy Nasdaq Composite (^IXIC) rose roughly 0.3%, while the S&P 500 (^GSPC) climbed more than 0.1%.
IBM stock slides after software sales disappoint
International Business Machines stock (IBM) slid 6% ahead of the opening bell after second quarter sales in its core software segment were lower than expected and the company did not provide a forecast for the third quarter.
IBM's software segment, which has traditionally been a bright spot, reported sales of $7.39 billion, missing analysts' average estimate of $7.41 billion, per Reuters. After a 30% run-up in the stock year to date, the company had little room to miss estimates.
Still, IBM's adjusted earnings per share of $2.80 topped the Street's expectations, and its revenue of $16.98 billion for the quarter beat estimates of $16.59 billion.
Companies' spending on artificial intelligence infrastructure spurred demand for IBM's latest AI-specialized mainframes. The infrastructure segment, which houses its mainframe, reported revenue of $4.14 billion, beating estimates of $3.81 billion.
Read more here from Reuters.
International Business Machines stock (IBM) slid 6% ahead of the opening bell after second quarter sales in its core software segment were lower than expected and the company did not provide a forecast for the third quarter.
IBM's software segment, which has traditionally been a bright spot, reported sales of $7.39 billion, missing analysts' average estimate of $7.41 billion, per Reuters. After a 30% run-up in the stock year to date, the company had little room to miss estimates.
Still, IBM's adjusted earnings per share of $2.80 topped the Street's expectations, and its revenue of $16.98 billion for the quarter beat estimates of $16.59 billion.
Companies' spending on artificial intelligence infrastructure spurred demand for IBM's latest AI-specialized mainframes. The infrastructure segment, which houses its mainframe, reported revenue of $4.14 billion, beating estimates of $3.81 billion.
Read more here from Reuters.
Jobless claims hit lowest level in three months
Amid a quiet week of economic data, investors were greeted with yet another sign that the US labor market isn't flashing glaring alarm signals.
Data from the Department of Labor released Thursday morning showed 217,000 initial jobless claims were filed in the week ending July 19, down 4,000 from the week prior and the lowest number of weekly filings since the week of April 12. After surging in May, weekly filings have consistently declined throughout the start of the summer.
Meanwhile, 1.955 million continuing claims were filed, up about 4,000 from the week prior and hovering near the highest level seen since November 2021. Economists see an increase in continuing claims as a sign that those out of work are taking longer to find new jobs.
Amid a quiet week of economic data, investors were greeted with yet another sign that the US labor market isn't flashing glaring alarm signals.
Data from the Department of Labor released Thursday morning showed 217,000 initial jobless claims were filed in the week ending July 19, down 4,000 from the week prior and the lowest number of weekly filings since the week of April 12. After surging in May, weekly filings have consistently declined throughout the start of the summer.
Meanwhile, 1.955 million continuing claims were filed, up about 4,000 from the week prior and hovering near the highest level seen since November 2021. Economists see an increase in continuing claims as a sign that those out of work are taking longer to find new jobs.
Tesla stock slides as Musk warns of a 'few rough quarters'
Tesla's (TSLA) stock is sinking in premarket as a warning from CEO Elon Musk rings in investors' ears.
Shares fell over 6% after Tesla posted an earnings miss, setting the stage for a tough stretch ahead. The automaker faces the end of EV incentives brought in by President Trump, alongside potential delays to its autonomous vehicle rollout.
'We probably could have a few rough quarters,' Musk said, per Bloomberg.
Meanwhile, a report Thursday showed Tesla's sales in Europe fell in June for the sixth straight month, falling 23%.
Tesla's finance chief flagged other challenges on a conference call with analysts. Yahoo Finance's Pras Subramanian reports:
Read more here.
Tesla's (TSLA) stock is sinking in premarket as a warning from CEO Elon Musk rings in investors' ears.
Shares fell over 6% after Tesla posted an earnings miss, setting the stage for a tough stretch ahead. The automaker faces the end of EV incentives brought in by President Trump, alongside potential delays to its autonomous vehicle rollout.
'We probably could have a few rough quarters,' Musk said, per Bloomberg.
Meanwhile, a report Thursday showed Tesla's sales in Europe fell in June for the sixth straight month, falling 23%.
Tesla's finance chief flagged other challenges on a conference call with analysts. Yahoo Finance's Pras Subramanian reports:
Read more here.
The AI trade hasn't changed for Big Tech — and that's working for them
Alphabet (GOOG, GOOGL) and Tesla (TSLA) kicked off Big Tech earnings on Wednesday afternoon, and Yahoo Finance's Hamza Shaban recaps what investors learned in today's Morning Brief:
Read more here.
Alphabet (GOOG, GOOGL) and Tesla (TSLA) kicked off Big Tech earnings on Wednesday afternoon, and Yahoo Finance's Hamza Shaban recaps what investors learned in today's Morning Brief:
Read more here.
Good morning. Here's what's happening today.
Economic data: Initial jobless claims (week ending July 19) Chicago Fed national activity index (June); S&P Global US manufacturing PMI (July preliminary); S&P Global US services PMI (July preliminary); S&P global US composite PMI (July preliminary); New home sales (June)
Earnings: American Airlines (AAL), Blackstone (BX), Deckers (DECK), Dow (DOW), Honeywell (HON), Intel (INTC), Keurig Dr Pepper (KDP), Nasdaq (NDAQ), Nokia (NOK), Southwest Airlines (LUV), Union Pacific (UNP)
Here are some of the biggest stories you may have missed overnight and early this morning:
Trump signals baseline hike in 'reciprocal' tariffs to 15%
The AI trade hasn't changed for Big Tech — and that's working for them
Trump to visit Fed HQ for refurb check as he battles with Powell
Keurig Dr Pepper beats estimates but coffee inflation lurks
Google beats on earnings, doubles down on AI spending spree
Tesla stock sinks after earnings miss, 'rough' patch warning
Chipotle plunges after company reports 2nd straight sales decline
Goldman's trading desk touts cheap hedges against S&P 500 slide
Meme stock rally has investors feeling 'invulnerable'
Economic data: Initial jobless claims (week ending July 19) Chicago Fed national activity index (June); S&P Global US manufacturing PMI (July preliminary); S&P Global US services PMI (July preliminary); S&P global US composite PMI (July preliminary); New home sales (June)
Earnings: American Airlines (AAL), Blackstone (BX), Deckers (DECK), Dow (DOW), Honeywell (HON), Intel (INTC), Keurig Dr Pepper (KDP), Nasdaq (NDAQ), Nokia (NOK), Southwest Airlines (LUV), Union Pacific (UNP)
Here are some of the biggest stories you may have missed overnight and early this morning:
Trump signals baseline hike in 'reciprocal' tariffs to 15%
The AI trade hasn't changed for Big Tech — and that's working for them
Trump to visit Fed HQ for refurb check as he battles with Powell
Keurig Dr Pepper beats estimates but coffee inflation lurks
Google beats on earnings, doubles down on AI spending spree
Tesla stock sinks after earnings miss, 'rough' patch warning
Chipotle plunges after company reports 2nd straight sales decline
Goldman's trading desk touts cheap hedges against S&P 500 slide
Meme stock rally has investors feeling 'invulnerable'
Meme stock rally has investors feeling 'invulnerable'
Retail investors with an appetite for risk are piling into speculative trades and creating a new roster of meme-stocks, helping power a broader rally in markets, Yahoo Finance's Jake Conley reports:
Read more here.
Retail investors with an appetite for risk are piling into speculative trades and creating a new roster of meme-stocks, helping power a broader rally in markets, Yahoo Finance's Jake Conley reports:
Read more here.
STMicro stock falls by most in a year after surprise loss
STMicroelectronics (STM) delivered a double whammy in its earnings on Thursday: A surprise Q2 loss from restructuring charges and a disappointing outlook for Q3.
US-listed stock in the European chipmaker slid over 10% in premarket trading, while its shares in Paris (STMPA.PA) fell to their lowest in a year at one point, down 13%.
Bloomberg reports:
Read more here.
STMicroelectronics (STM) delivered a double whammy in its earnings on Thursday: A surprise Q2 loss from restructuring charges and a disappointing outlook for Q3.
US-listed stock in the European chipmaker slid over 10% in premarket trading, while its shares in Paris (STMPA.PA) fell to their lowest in a year at one point, down 13%.
Bloomberg reports:
Read more here.
Trending tickers: Chipotle Mexican Grill, T-mobile and Wolfspeed
Here are some top stocks trending on Yahoo Finance in premarket trading:
Chipotle Mexican Grill (CMG) stock fell 10% before the bell on Thursday after reporting another quarter of negative sales growth.
The fast-casual restaurant chain posted results on Wednesday as it navigates an uncertain consumer environment and as its new leadership deals with the most challenging backdrop in years.
T-mobile (TMUS) stock rose 5% premarket on Thursday after beating analyst estimates on Wednesday. The telecom group's CEO Mike Sievert told Yahoo Finance's executive editor Brian Sozzi that the company's steady value messaging is helping it to gain market share.
Wolfspeed (WOLF) shares rose 18% before the bell. The chipmaker's stock reacted positively this week to the new US-Japan trade deal and has been up 13% over the last five days. The US-Japan trade deal boosts optimism for Wolfspeed as it supports Renesas' EV chip production, raising hopes for more deals with automakers like Jaguar Land Rover.
Here are some top stocks trending on Yahoo Finance in premarket trading:
Chipotle Mexican Grill (CMG) stock fell 10% before the bell on Thursday after reporting another quarter of negative sales growth.
The fast-casual restaurant chain posted results on Wednesday as it navigates an uncertain consumer environment and as its new leadership deals with the most challenging backdrop in years.
T-mobile (TMUS) stock rose 5% premarket on Thursday after beating analyst estimates on Wednesday. The telecom group's CEO Mike Sievert told Yahoo Finance's executive editor Brian Sozzi that the company's steady value messaging is helping it to gain market share.
Wolfspeed (WOLF) shares rose 18% before the bell. The chipmaker's stock reacted positively this week to the new US-Japan trade deal and has been up 13% over the last five days. The US-Japan trade deal boosts optimism for Wolfspeed as it supports Renesas' EV chip production, raising hopes for more deals with automakers like Jaguar Land Rover.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
14 minutes ago
- Yahoo
The winners and losers in US-EU trade deal
The US and EU have struck what is being billed as the largest trade deal in history, after talks in Scotland. It actually resembles the framework for an agreement rather than a full trade deal, with details still unclear. But the headline figures announced by President Donald Trump and EU chief Ursula von der Leyen do offer clues about which sectors and groups could be hit hardest or have most to gain. Follow reaction live Trump - winner After promising new trade deals with dozens of countries, Trump has just landed the biggest of them all. It looks to most commentators that the EU has given up more, with instant analysis by Capital Economics suggesting a 0.5% knock to GDP. There will also be tens of billions of dollars pouring into US coffers in import taxes. But the glowing headlines for Trump may not last long if a slew of economic data due later this week show that his radical reshaping of the US economy is backfiring. Figures on inflation, jobs, growth and consumer confidence will give a clearer picture on whether Trump's tariffs are delivering pain or gain. US consumers - loser Ordinary Americans are already aggrieved at the increased cost of living and this deal could add to the burden by hiking prices on EU goods. While not as steep as it could have been, the hurdle represented by a 15% tariff rate is still significant, and it is far more pronounced than the obstacles that existed before Trump returned to office. Tariffs are taxes charged on goods bought from other countries. Typically, they are a percentage of a product's value. So, a 15% tariff means that a $100 product imported to the US from the EU will have a $15 dollar tax added on top - taking the total cost to the importer to $115. Companies who bring foreign goods into the US have to pay the tax to the government, and they often pass some or all of the extra cost on to customers. Markets - winner Stock markets in Asia and Europe rose on Monday after news emerged of the deal framework. Under the framework, the US will levy a 15% tariff on goods imported from the EU. While this rate is significant, it is less than what it could have been and at least offers certainty for investors. The agreement is "clearly market-friendly, and should put further upside potential into the euro", Chris Weston at Pepperstone, an Australian broker, told AFP. European solidarity - loser The deal will need to be signed off by all 27 members of the EU, each of which have differing interests and levels of reliance on the export of goods to the US. While some members have given the agreement a cautious welcome, others have been critical - hinting at divisions within the bloc, which is also trying to respond to other crises such as the ongoing war in Ukraine. A big Trump win but not total defeat for Brussels French Prime Minister Francois Bayrou commented: "It is a dark day when an alliance of free peoples, brought together to affirm their common values and to defend their common interests, resigns itself to submission." He was joined by at least two other French government ministers as well as Viktor Orban, the Hungarian leader, who said that Trump "ate von der Leyen for breakfast". Carmakers in Germany - loser The tariff faced by importers bringing EU cars to the US has been nearly halved, from the rate of 27.5% that was imposed by Trump in April to a new rate of 15%. Cars are one of the EU's top exports to the US. And as the largest manufacturer of cars in the EU - thanks to VW, Mercedes and BMW - Germany will have been watching closely. Its leader, Friedrich Merz, has welcomed the new pact, while admitting that he would have welcomed a "further easing of transatlantic trade". That downbeat sentiment was echoed by the German carmaking trade body, the VDA, which warned that even a rate of 15% would "cost the German automotive industry billions annually". Carmakers in the US - winner Trump is trying to boost US vehicle production. American carmakers received a boost when they learned that the EU was dropping its own tariff on US-made cars from 10% to 2.5%. Theoretically that could result in more American cars being bought in Europe. That could be good for US sales overseas, but the pact is not all good news when it comes to domestic sales. That is down to the complex way that American cars are put together. Many of them are actually assembled abroad - in Canada and Mexico - and Trump subjects them to a tariff of 25% when they are brought into the US. That compares with a lower tariff rate of 15% on EU vehicles. So US car makers may now fear being undercut by European manufacturers. EU pharmaceuticals - loser There is confusion around the tariff rate that will be levied on European-made drugs being bought in the US. The EU wants drugs to be subject to the lowest rate possible, to benefit sales. Trump said pharmaceuticals were not covered by the deal announced on Sunday, under which the rate on a number of products was lowered to 15%. But von der Leyen said they were included, and a White House source confirmed the same to the BBC. Either scenario will represent disappointment for European pharma, which initially hoped for a total tariffs exemption. The industry currently enjoys high exposure to the US marketplace thanks to products like Ozempic, a star type-2 diabetes drug made in Denmark. This has been highlighted in Ireland, where opposition parties have pointed out the importance of the industry and criticised the damaging effect of uncertainty. Ireland 'not celebrating' Trump's EU deal US energy - winner Trump said the EU will purchase $750bn (£558bn, €638bn) in US energy, in addition to increasing overall investment in the US by $600bn. "We will replace Russian gas and oil with significant purchases of US LNG [liquified natural gas], oil and nuclear fuels," said Von der Leyen. This will deepen links between European energy security and the US at a time when it has been pivoting away from importing Russian gas since its full-scale invasion of Ukraine. Aviation industry in EU and US - winner Von der Leyen said that some "strategic products" will not attract any tariffs, including aircraft and plane parts, certain chemicals and some agricultural products. That means firms making components for aeroplanes will have friction-free trade between the huge trading blocs. She added that the EU still hoped to get more "zero-for-zero" agreements, notably for wines and spirits, in the coming days. 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
Yahoo
14 minutes ago
- Yahoo
Stock market today: Dow, S&P 500, Nasdaq futures rise as Trump-EU trade deal kicks off huge week in markets
US stock futures rose on Monday after the US and European Union struck a trade pact to lead off a packed week of Big Tech earnings, a Federal Reserve meeting, inflation data, the July jobs report, and President Trump's Aug. 1 deadline to lock in key trade deals. Dow Jones Industrial Average futures (YM=F) were up about 0.1%, while S&P 500 futures (ES=F) gained 0.2%. Nasdaq 100 futures (NQ=F) put on roughly 0.4%, after the three major indexes closed Friday with gains. The US and EU have agreed on a framework deal to set Trump's tariffs on Europe's goods at a baseline 15%, compared with the 30% threatened. Trump called the pact 'the biggest of them all,' while von der Leyen said that "15% is not to be underestimated, but it is the best we could get." The news eased fears of a harmful trade war and boosted market sentiment, putting stocks on track to resume a rally that saw the S&P 500 (^GSPC) notch its fifth all-time high in a row on Friday. Read more: The latest on Trump's tariffs At the same time, hopes are rising for a US-China deal. Officials are meeting for talks in Stockholm on Monday to tackle roadblocks and to extend the existing tariff truce by three months, media reports said. Beijing currently faces an Aug, 12 due date for higher US levies, while other countries race to beat Friday's deadline. Investor eyes are now turning to a jam-packed week on Wall Street. Heavyweight earnings highlight the most intense stretch of the season, with more than 150 S&P 500 companies set to report. Meta Platforms (META) and Microsoft (MSFT) lead off Wednesday, followed by Amazon (AMZN) and Apple (AAPL) on Thursday. Read more: Full earnings coverage in our live blog Beyond earnings, the Fed begins its two-day policy meeting on Tuesday, with an interest-rate decision expected Wednesday afternoon. While the central bank is expected to keep rates at 4.25%-4.50%, the watch is on for signs that policymakers are warming to a rate cut in September. It all comes alongside legal battles to open up the Fed's meetings to investor eyes, as well as Trump's general pressure on the central bank and Chair Jerome Powell. On the data front, inflation and labor will be in the spotlight. The July reading of the personal consumption expenditures (PCE) index, the Fed's preferred inflation gauge, is forecast to show a modest monthly and annual uptick on its release on Thursday. Also on deck: a flurry of jobs data. Tuesday's JOLTS update and Wednesday's ADP private payrolls print will set the stage for the crucial July jobs report on Friday. Fed meeting, jobs report, Big Tech earnings — and Trump's deadline: What to watch this week The impact of President Trump's policies on the economy is about to get a lot clearer. Yahoo Finance's Josh Schafer takes a look at what to expect this week and why it matters: Read more here. Trending tickers: Nike, Samsung Electronics and US liquefied natural gas stocks Here are some top stocks trending on Yahoo Finance in premarket trading: Nike (NKE) shares were up over 3% before the bell on Monday after receiving an upgrade from JPMorgan (JPM), moving its rating from neutral to overweight and setting a new price target of $93, up from the previous $64. Samsung Electronics ( stock rose 6% after announcing that it had secured a 16.5 billion deal to make Tesla's next-generation AI chip. Shares in US liquefied natural gas developers surged in premarket trading on Monday, after the European Union pledged to purchase $750 billion worth of the super-cooled fuel over the next three years as part of a sweeping trade pact. NextDecade (NEXT), Venture Global (VG), and Cheniere Energy (LNG)jumped between 7% and 8.8%. Samsung to make AI chips for Tesla under $16.5 billion deal Samsung Electronics ( SSNLF) has landed a $16.5 billion deal to make Tesla's (TSLA) next-generation AI chip. The agreement, which runs through the end of 2033, will see the South Korean company produce the AI6 semiconductor at an upcoming plant in Texas. Shares of Tesla stepped up 1.5% in premarket trading, after its CEO Elon Musk confirmed on X that the EV maker had struck the multibillion-dollar deal. Meanwhile, Samsung's Seoul-traded stock rose almost 7% to its highest level since September. 'The strategic importance of this is hard to overstate,' Musk wrote. "The $16.5B number is just the bare minimum. Actual output is likely to be several times higher." Bloomberg reports: Read more here. Oil rises with EU-US trade deal locked in Oil prices eked out gains as the US and the EU finalized details of a trade deal ahead of Trump's Aug. 1 deadline. Bloomberg reports: Read more here. European stock futures rise on US-EU trade deal announcement Futures in European stock indexes saw positive bumps early morning Monday as the markets reacted to the announcement of a tariff deal between the US and the EU Interest in individual stocks in carmakers, luxury goods makers, and alcohol conglomerates is rising ahead of the market open Monday with those industries the most impacted by the deal. Bloomberg reports: Read more here. Fed meeting, jobs report, Big Tech earnings — and Trump's deadline: What to watch this week The impact of President Trump's policies on the economy is about to get a lot clearer. Yahoo Finance's Josh Schafer takes a look at what to expect this week and why it matters: Read more here. The impact of President Trump's policies on the economy is about to get a lot clearer. Yahoo Finance's Josh Schafer takes a look at what to expect this week and why it matters: Read more here. Trending tickers: Nike, Samsung Electronics and US liquefied natural gas stocks Here are some top stocks trending on Yahoo Finance in premarket trading: Nike (NKE) shares were up over 3% before the bell on Monday after receiving an upgrade from JPMorgan (JPM), moving its rating from neutral to overweight and setting a new price target of $93, up from the previous $64. Samsung Electronics ( stock rose 6% after announcing that it had secured a 16.5 billion deal to make Tesla's next-generation AI chip. Shares in US liquefied natural gas developers surged in premarket trading on Monday, after the European Union pledged to purchase $750 billion worth of the super-cooled fuel over the next three years as part of a sweeping trade pact. NextDecade (NEXT), Venture Global (VG), and Cheniere Energy (LNG)jumped between 7% and 8.8%. Here are some top stocks trending on Yahoo Finance in premarket trading: Nike (NKE) shares were up over 3% before the bell on Monday after receiving an upgrade from JPMorgan (JPM), moving its rating from neutral to overweight and setting a new price target of $93, up from the previous $64. Samsung Electronics ( stock rose 6% after announcing that it had secured a 16.5 billion deal to make Tesla's next-generation AI chip. Shares in US liquefied natural gas developers surged in premarket trading on Monday, after the European Union pledged to purchase $750 billion worth of the super-cooled fuel over the next three years as part of a sweeping trade pact. NextDecade (NEXT), Venture Global (VG), and Cheniere Energy (LNG)jumped between 7% and 8.8%. Samsung to make AI chips for Tesla under $16.5 billion deal Samsung Electronics ( SSNLF) has landed a $16.5 billion deal to make Tesla's (TSLA) next-generation AI chip. The agreement, which runs through the end of 2033, will see the South Korean company produce the AI6 semiconductor at an upcoming plant in Texas. Shares of Tesla stepped up 1.5% in premarket trading, after its CEO Elon Musk confirmed on X that the EV maker had struck the multibillion-dollar deal. Meanwhile, Samsung's Seoul-traded stock rose almost 7% to its highest level since September. 'The strategic importance of this is hard to overstate,' Musk wrote. "The $16.5B number is just the bare minimum. Actual output is likely to be several times higher." Bloomberg reports: Read more here. Samsung Electronics ( SSNLF) has landed a $16.5 billion deal to make Tesla's (TSLA) next-generation AI chip. The agreement, which runs through the end of 2033, will see the South Korean company produce the AI6 semiconductor at an upcoming plant in Texas. Shares of Tesla stepped up 1.5% in premarket trading, after its CEO Elon Musk confirmed on X that the EV maker had struck the multibillion-dollar deal. Meanwhile, Samsung's Seoul-traded stock rose almost 7% to its highest level since September. 'The strategic importance of this is hard to overstate,' Musk wrote. "The $16.5B number is just the bare minimum. Actual output is likely to be several times higher." Bloomberg reports: Read more here. Oil rises with EU-US trade deal locked in Oil prices eked out gains as the US and the EU finalized details of a trade deal ahead of Trump's Aug. 1 deadline. Bloomberg reports: Read more here. Oil prices eked out gains as the US and the EU finalized details of a trade deal ahead of Trump's Aug. 1 deadline. Bloomberg reports: Read more here. European stock futures rise on US-EU trade deal announcement Futures in European stock indexes saw positive bumps early morning Monday as the markets reacted to the announcement of a tariff deal between the US and the EU Interest in individual stocks in carmakers, luxury goods makers, and alcohol conglomerates is rising ahead of the market open Monday with those industries the most impacted by the deal. Bloomberg reports: Read more here. Futures in European stock indexes saw positive bumps early morning Monday as the markets reacted to the announcement of a tariff deal between the US and the EU Interest in individual stocks in carmakers, luxury goods makers, and alcohol conglomerates is rising ahead of the market open Monday with those industries the most impacted by the deal. Bloomberg reports: Read more here.
Newsweek
14 minutes ago
- Newsweek
Yes, Chrome Really Can Survive Without Google
An estimated 4 billion people around the world use Chrome. But what if Google didn't control the world's most-used web browser? There's a chance this question might no longer be hypothetical. In the U.S. government's landmark antitrust case against Google for illegally monopolizing the online search market, one of the most consequential and hotly debated remedies on the table is the proposed spin-off of Chrome—a browser that drives more than a third of Google's search traffic and acts as a powerful gatekeeper to the internet. In court, Google cast doubt on the idea that any other company could successfully run Chrome. But it's simply not true that Google alone is capable of running Chrome. A new report from the Knight-Georgetown Institute (KGI)—co-authored by the two of us, KGI's executive director and Firefox web browser's former chief technology officer—shows that it is technically feasible for Chrome to be divested. Our report concludes that an independent Chrome browser could stand on its own without Google, and could still compete with rivals like Microsoft Edge, Apple Safari, and Mozilla Firefox. Google Chrome logos are displayed on a cell phone. Google Chrome logos are displayed on a cell start with the basics about Chrome. Chrome is built on Chromium, an open-source software project with 35 million lines of code that are publicly accessible. Any company or developer can build a functional browser from Chromium today—and many already do, including Microsoft, Brave, and Perplexity. The new owner of Chrome would build on the underlying Chromium code base. If Chrome were spun off, the new owner would need to replace certain Google-owned components and services. Consider Safe Browsing, a feature that alerts users when they visit a suspicious website or encounter harmful downloads. It's run by Google, but it's also already used by competing browsers. Chrome's new owner could continue using it—and Google may well have reasons to continue running it—or adopt alternative approaches, like partnering with another company. Similarly, technical blueprints exist for how to run services like bookmark syncing and software updates. However, we shouldn't expect the new owner to replicate or recreate everything Google does—nor should it. Any buyer willing to front the resources to buy Chrome is not likely to be interested in perfectly copying everything Google has done, and would rather compete on its own terms according to its own business interests. It will be key for Chrome's new owner to recruit and retain the engineering talent needed to build and maintain Chrome. A well-resourced new owner—one committed to the future of an independent Chrome—could build a top-tier team with the right mission and incentives, drawing from a talent pool that exists both inside and outside of Google. A successful divestiture would also require court-ordered guardrails and transitional support from Google. With the above in place, Chrome's 4 billion users should continue to enjoy the same high-quality browser experience they've come to expect from a major browser, and perhaps even benefit from new browser innovations that are no longer tied to Google's corporate priorities. Some features would surely change as the new owner crafts the product according to its own goals, but the key components of a fast, secure browsing experience are all within reach for an independently operated Chrome. Concerns about the potential Chrome spin-off sometimes exhibit a sort of Stockholm syndrome: fear of a world without the monopolist's resources. We often get asked how an independent Chrome could possibly make money—as if a product with 4 billion global users would not be an attractive asset with many monetization options. Possible business models could draw on search, advertising, artificial intelligence (AI), enterprise use, and other services. If the court adopts some of the government's other proposed remedies as well—for example, requiring Google to syndicate its search results or search ads—many new potential business opportunities could open up. Breaking Chrome away from Google wouldn't break the browser. An independent Chrome browser can successfully compete should Google be forced to sell off Chrome. Alissa Cooper is executive director of the Knight-Georgetown Institute. She is a recognized leader in the development of global internet standards, policy, and governance. Prior to joining KGI, Alissa spent a decade at Cisco Systems in senior engineering and executive roles, including vice president of technology standards and vice president and chief technology officer for technology policy. Eric Rescorla is a senior research fellow at the Knight-Georgetown Institute. He is the former chief technology officer, Firefox, at Mozilla, where he was responsible for setting the overall technical strategy for the Firefox browser. Eric has contributed extensively to many of the core security protocols used in the internet, including TLS, DTLS, WebRTC, ACME, and QUIC. Most recently, he served as chief technologist for the Center for Forecasting and Outbreak Analytics at the Centers for Disease Control and Prevention. The views expressed in this article are the writers' own.
