Microsoft, Meta earnings take sting out of the Fed Chair's warning on inflation risks |
The S&P 500 fell into the red and never made it back to positive territory after Fed Chair Jay Powell warned of more tariff-induced pressure on inflation to come, causing traders to price in lower odds of interest rate cuts. The benchmark US stock index fell 0.1%, the Nasdaq 100 gained 0.2%, and the Russell 2000 slumped 0.5%. However, the picture brightened materially in the after-hours session, with the SPDR S&P 500 ETF climbing out of the red and above its highs from regular trading hours after robust earnings from Meta and Microsoft. Humana rose more than 12% after the health insurance topped Q2 estimates and raised its full-year outlook. Big decliners included mining giant Freeport-McMoran, which tumbled after the Trump administration announced tariffs on imports of processed copper products, but excluded ore and cathodes. Elsewhere… |
- Wingstop shares soared 26% after the chicken chain posted better-than-expected Q2 sales and profit — and opened a record 129 net new stores last quarter.
- Peloton shares climbed 18% after UBS slapped a "buy" rating on the stock, citing recent subscription price hikes and early signs that user declines may be leveling off.
- Marvell Technology rose 7% after Morgan Stanley raised its price target to $80 from $73, while keeping its "equal weight" rating.
- Electronic Arts shares jumped 5.7% after Wedbush in a note said the Madden NFL parent company was set to outpace the rest of the video game market through its fiscal year 2027.
- Shares of Nvidia and Broadcom rose 2% and 1.7% respectively after Morgan Stanley raised his price targets on the chipmakers to $200 from $170 for Nvidia and to $338 from $270 for Broadcom.
- VF shares rallied 2.7% after the parent of Vans, Timberland, and The North Face reported a smaller-than-expected Q1 loss and showed early signs of a potential turnaround.
- Avis shares tanked 15% following a disappointing second-quarter earnings report. (Fun fact: renting a car costs about 40% more than it did a decade ago).
- Adidas shares sank 11%, after the shoemaker posted lower-than-expected sales in the second quarter and warned of the impacts of US tariffs in the second half of the year.
- Mondelez fell 6.6% after the Oreo parent beat Q2 expectations, but stuck with a muted full-year outlook as it faces historically high cocoa prices and slow demand in North America.
- SoFi Technologies dropped 2.3% after it announced plans to sell $1.5 billion of stock, giving up gains after the company topped Q2 and hiked its full-year revenue guidance on Tuesday.
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— Luke Kawa, Markets Editor & Nia Warfield, Markets Writer |
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The AI spending boom is eating the US economy |
AI-linked spending has fueled more growth in the first half of 2025 on average than US consumer spending. Read more. |
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What's eating Novo Nordisk? |
The Ozempic maker's market cap has more than halved since this time last year. Read more. |
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- Ford slips as tariffs take an $800 million bite out of its earnings
Ford announced its second-quarter earnings results after the bell today. - AI startups' high-velocity valuations are shooting sky high
The race to invest in AI startups is pushing valuations to new heights. Anthropic is reportedly close to a fundraising round with a $170 billion valuation, just five months after a $61.5 billion valuation. - Meta CEO Zuckerberg posts manifesto about superintelligence
Meta: Personal devices like smart glasses will become our primary computing devices. - Carvana, still eyeing massive growth, climbs on earnings beat
The used car retailer announced its second-quarter earnings after the market close on Wednesday. - Pre-workout or pre-game? FDA recalls cans of High Noon that were mislabeled as Celsius
Celsius, the maker of the fizzy energy drinks, was flat on the news. - Biotechs rally on Vinay Prasad's exit from FDA
His departure comes after the FDA's back-and-forth on a gene therapy from Sarepta Therapeutics, which is up on the news. - Ives: Apple AI innovation "is not coming from inside the walls of Apple Park"
Ahead of Apple's earnings, the Wedbush analyst is again pushing the iPhone maker to buy Perplexity.
- White House's long-awaited digital assets report fails to boost bitcoin's price
Despite its length, it gave very few details on the bitcoin strategic reserve. - Zuckerberg to run AI team like a startup "unencumbered by the bureaucracy" of Meta
He's said he wants to run Meta more like a startup, but that the $1.8 billion company is just too big.
- Strategy acquires $2.46 billion in bitcoin, its largest buy since March
The company announced it acquired another 21,021 bitcoin. - Robinhood* reports strong Q2 numbers
The online brokerage increased net revenues and grew EPS.
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*Robinhood Markets Inc. is the parent company of Sherwood Media, an independently operated media company subject to certain legal and regulatory restrictions. |
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Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate... See more |
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