| | | Market Snapshot
| Dow | 44193.12 | +81.38 | (0.18%) | | Nasdaq | 21168.04 | +252.87 | (1.21%) | | SP 500 | 6345.06 | +45.87 | (0.73%) | | 10-yr Note |
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| | NYSE | Adv 1304 | Dec 1412 | Vol 1.20 bln | | Nasdaq | Adv 2146 | Dec 2336 | Vol 8.62 bln |
Industry Watch
| Strong: Consumer Discretionary, Information Technology, Consumer Staples, Communication Services |
| | Weak: Materials, Utilities, Health Care, Energy, Real Estate |
Moving the Market
Hefty slate of earnings reports that includes blue-chip names and tech companies
Strong performance in mega-cap names underpinning gains in the major averages
Lack of macro catalyst leaving market direction uncertain
| Mega-cap gains boost major averages
06-Aug-25 16:30 ET
Dow +81.38 at 44193.12, Nasdaq +252.87 at 21168.04, S&P +45.87 at 6345.06
[BRIEFING.COM] The stock market opened with strength in its larger components following yesterday's retreat, with a lack of macro developments allowing the early momentum to persist, culminating in healthy gains across the major averages.
Shortly after the open, shares of Apple (AAPL 213.28, +10.36, +5.10%) traded higher following headlines that the company will announce a $100 billion investment increase in domestic manufacturing at the White House this afternoon, bringing the company's total investment to $600 billion.
While the White House announced that India (which is the largest manufacturer of Apple's iPhone) will face an additional 25% tariff (50% total tariff rate) due to its ongoing purchase of Russian oil, White House officials said that Apple will not be materially affected by the tariff, according to CNBC.
Trade developments were notably slim for the remainder of the session. Bloomberg reported that Swiss President Karin Keller-Sutter will leave Washington today without reaching a deal to lower the looming 39% tariff rate. Separately, President Trump stated via Truth Social that his Middle East envoy, Steve Witkoff, had a "highly productive" meeting with Russian President Vladimir Putin, though no further details have been reported, and neither one of these headlines moved the market.
Mega-cap momentum, however, would continue to push the major averages higher throughout the session.
The consumer discretionary sector (+2.4%) finished as the top-performing S&P 500 sector due to noteworthy gains in its mega-cap constituents, Amazon (AMZN 222.30, +8.56, +4.00%) and Tesla (TSLA 319.91, +11.19, +3.62%).
A strong performance from Walmart (WMT 103.36, +4.06, +4.08%) buoyed the consumer staples sector (+1.7%), and Apple's gains helped the information technology sector (+1.3%) round out the top three gainers today.
In total, six S&P 500 sectors finished in positive territory today. The market-weighted S&P 500 (+0.7%) outperformed the S&P 500 Equal Weighted Index (-0.2%), showing that while there was indeed a healthy dose of buying interest, larger stocks contributed more to today's advance.
The Vanguard Mega Cap Growth ETF finished the day with a 1.5% gain.
Today's batch of earnings reports garnered mixed reactions, with several blue-chip stocks in the fold.
McDonald's (MCD 307.58, +8.81, +2.95%) reported its best earnings since 4Q23, adding to strength in the consumer discretionary sector (+2.5%).
Meanwhile, Walt Disney (DIS 115.17, -3.15, -2.66%) traded lower despite topping earnings expectations, limiting gains within the communication services sector (+0.7%).
Amgen (AMGN 284.67, -15.41, -5.14%), which also topped earnings expectations, weighed on the health care sector (-1.5%) as investors have taken stock of some weak sales in some of its key drugs.
Additionally, Advanced Micro Devices (AMD 163.12, -11.19, -6.42%) and Cirrus Logic (CRUS 97.25, -7.72, -7.35%) moved lower following earnings, contributing to weakness among stocks that saw the PHLX Semiconductor Index close with a loss of 0.2%.
The energy sector (-0.9%) faced pressure today as crude oil recorded its lowest close since early June, with prices falling 1.2% to $64.34 per barrel.
The utilities (-0.9%), real estate (-0.8%), and materials (-0.8%) sectors also finished the day in negative territory, though the losses did little to sway a steady climb in the major averages that saw the S&P 500 (+0.7%), Nasdaq Composite (+1.2%), and DJIA (+0.2%) finish near their session highs.
While today's advance was not as broad-based as Monday's rally, it marked a similar "buy the dip" disposition, though a lack of macro developments leaves room to question if the trend will continue to record-high levels from last week.
U.S. Treasuries had a mixed showing on Wednesday, as longer tenors retreated after outperforming on Tuesday while the short end climbed after lagging yesterday. Treasuries faced some intraday pressure that persisted through the completion of a weak $42 billion 10-year note offering, but the last 90 minutes of trade saw a push to fresh highs in the 5-year note and shorter tenors, while longer tenors finished near their starting levels.
The 2-year note yield settled down two basis points to 3.70% and the 10-year note yield settled up two basis points to 4.22%
- Russell 2000: +2.5% WTD
- Nasdaq Composite: +2.5% WTD
- S&P 500: +1.7% WTD
- DJIA: +1.4% WTD
- S&P Mid Cap 400: +0.9% WTD
Reviewing today's data:
- The weekly MBA Mortgage Index was up 3.1% after falling 3.8% a week ago. The Refinance Index rose 5.2% while the Purchase Index was up 1.5%.
Communication services sector steadily advances
06-Aug-25 15:25 ET
Dow +123.81 at 44235.55, Nasdaq +264.83 at 21180.00, S&P +50.32 at 6349.51
[BRIEFING.COM] The Nasdaq Composite (+1.3%), S&P 500 (+0.7%), and DJIA (+0.3) are hovering near their session highs as the market enters the final half hour of trading.
The major averages have compiled healthy gains today largely by way of mega-cap outperformance, as breadth figures have been relatively even, with decliners outpacing advancers by a roughly 7-to-6 margin on the NYSE and a roughly 11-to-9 margin on the Nasdaq.
The communication services sector (+0.9) has clawed its way back from early losses because of strength in its largest components. Alphabet (GOOG 197.10, +1.78, +0.91%), Meta Platforms (META 771.81, +8.35, +1.09%), and Netflix (NFLX 1178.07, +30.20, +2.63%) all sport healthy gains that have helped mask weakness in Walt Disney (DIS 115.51, -2.81, -2.37%) after the company's earnings reports.
Elsewhere in the sector, Match Group (MTCH 37.05, +3.32, +9.84%) is one of the top-performing S&P 500 stocks today after the company reported EPS in-line, beat revenue expectations, and guided Q3 expectations above consensus.
Major averages continue their advance
06-Aug-25 14:55 ET
Dow +122.56 at 44234.30, Nasdaq +248.70 at 21163.87, S&P +48.72 at 6347.91
[BRIEFING.COM] The major averages continue to chart new session highs this afternoon amid mixed sector strength and relatively even breadth figures.
The health care sector (-1.5%) is the worst-performing S&P 500 sector today following poor reactions to quarterly earnings, which is keeping the sector at the bottom of the Q3 leaderboard with a 3.4% loss for the quarter.
Biotechnology names are seeing losses despite Amgen (AMGN 282.13, -17.95, -5.98%) beating EPS expectations and raising FY25 guidance.
DaVita (DVA 128.71, -11.81, -8.40%) is the weakest performer in the sector, falling to its lowest level since April 2024. The company beat Q2 EPS expectations and reaffirmed its EPS guidance for FY25.
The energy sector (-0.9%) also faces pressure today amid a $0.94 decrease in crude oil prices to $64.22 per barrel, a change of -1.4%.
On the trade front, Bloomberg reports that the Swiss President Karin Keller-Sutter will leave Washington today without reaching a deal to lower the looming 39% tariff rate.
Separately, President Trump stated via Truth Social that his Middle East envoy, Steve Witkoff, had a "highly productive" meeting with Russian President Vladimir Putin, though no further details have been reported.
S&P 500 rises 0.8% as AIZ, GPN jump on earnings; NRG sinks 13% on guidance disappointment
06-Aug-25 14:30 ET
Dow +150.32 at 44262.06, Nasdaq +245.64 at 21160.81, S&P +48.82 at 6348.01
[BRIEFING.COM] The S&P 500 (+0.78%) is in second place on Wednesday afternoon, up just shy of 50 points.
Briefly, S&P 500 constituents Assurant (AIZ 210.59, 21.76, +11.52%), Global Payments (GPN 85.54, +7.13, +9.09%), and Target (TGT 106.18, +3.75, +3.66%) pepper the top of the standings. AIZ and GPN gain following earnings, while TGT is scheduled to report later in the month and boasts decent gains alongside other big box retailers.
Meanwhile, NRG Energy (NRG 149.11, -22.85, -13.29%) is one of today's worst performers as investors react to the company reaffirming full-year EPS guidance below consensus, despite strong Q2 results and upbeat commentary.
Gold holds steady near highs as Fed outlook and leadership uncertainty keep trading range tight
06-Aug-25 14:00 ET
Dow +119.29 at 44231.03, Nasdaq +208.57 at 21123.74, S&P +40.83 at 6340.02
[BRIEFING.COM] The Nasdaq Composite (+1.00%) is up north of 200 points on Wednesday afternoon, leading the major averages.
Gold futures settled $1.30 lower (flat) at $3,433.40/oz, pausing after a strong multi-day rally. The yellow metal remains supported by rising expectations for a Fed rate cut in September, following last week's soft U.S. jobs report. However, investor focus has shifted to President Trump's pending Fed appointments, including the next chair, creating policy uncertainty that has kept gold in a narrow range. Some traders also pointed to lighter demand data from the Perth Mint and renewed trade tensions with India as reasons for caution.
Meanwhile, the U.S. Dollar Index is down about -0.5% to $98.26.
Shopify surges to 3-yr high on Q2 results; tariff and consumer concerns did not materialize
Shopify (SHOP +20%) is surging today after reporting its Q2 results this morning. The global e-commerce platform reported a substantial EPS beat, which marked the company's largest EPS beat in 13 quarters. Revenue increased 31.1% yr/yr to $2.68 bln, which was quite a bit above analyst expectations. It also surpassed SHOP's guidance of a mid-20's percentage growth rate. This now marks 4 consecutive quarters where SHOP has achieved yr/yr growth of at least 26%, and encouragingly, management expects revenue for Q3 to grow at a mid-to-high 20's percentage rate. Investors are pleased to see SHOP continue its strong performance despite the current macro uncertainties.
- Revenue was driven by GMV growth across all of SHOP's geographies. What stood out to us is that total GMV had a nice acceleration from Q1, growing 31% yr/yr compared to 23%. Key growth areas, including offline GMV and B2B GMV, also had strong quarters. Offline increased 29% yr/yr relative to a 23% increase in Q1 and B2B had another quarter of triple digit yr/yr growth at 101%.
- The GMV outperformance was driven by strength in North America, with particular strength among plus merchants and continued strength in Europe. The US, its largest market, had GMV and revenue accelerate in the quarter, which tells us its US consumer is in better shape than feared. Notably, management pointed out it did not see any drop in US demand, whether inbound, outbound or local.
- Its international GMV accelerated throughout the quarter, up 42% yr/yr compared to 31% in Q1. SHOP's international regions are contributing more to growth in each quarter, with Europe continuing to be a bright spot. Europe's GMV grew 49% yr/yr, a nice acceleration from 36% last quarter.
- Another positive was that SHOP had included a potential tariff impact in its guidance, but it did not materialize throughout the quarter. Additionally, its merchants have adapted well to the changing environment and continue to perform well. Management noted that recent AI initiatives, such as Sidekick, are helping merchants address current business challenges.
Overall, SHOP's results this quarter were impressive. While investors were likely expecting another strong quarter from SHOP, its results exceeded vaulted expectations. The GMV outperformance and the acceleration of many key metrics, specifically in the US, are encouraging to investors. In addition, management's commentary surrounding US demand and tariff impacts are also positives.
Uber posts record Q2 results, unveils huge buyback, yet shares slide on profit-taking (UBER)
Uber (UBER) reported robust 2Q25 earnings, with adjusted EBITDA surging 35% yr/yr to a record $2.1 bln, hitting the high end of its guidance range, while Gross Bookings rose 18% in constant currency to $46.8 bln, aligning with prior expectations. The company also announced an ambitious $20 bln share repurchase program, signaling strong confidence in its ride-hailing and delivery businesses, underpinned by a record trailing 12-month free cash flow of $8.5 bln. Despite these bullish developments, UBER is selling off sharply, driven by profit-taking after a strong run (shares are up 48% year-to-date) and investor concerns about the potential earnings impact of its aggressive autonomous vehicle strategy, which could disrupt driver-based revenue models in the long term.
- Trip growth remained a key strength, with 3.3 bln trips completed in Q2, up 18% yr/yr, reflecting robust consumer engagement across UBER’s platform. CEO Dara Khosrowshahi emphasized sustained consumer strength, stating no visible demand weakness, and projected even stronger trip growth in Q3. This optimism is reflected in UBER’s Q3 Gross Bookings guidance of $48.25-$49.75 bln, implying 17-21% yr/yr growth in constant currency, signaling continued momentum in both Mobility and Delivery segments despite macroeconomic uncertainties.
- The Mobility segment delivered $20.55 bln in Gross Bookings, up 18% in constant currency, driven by market share gains against competitors like Lyft (LYFT) and increased demand for high-margin trips, such as airport transfers. Strength in premium offerings, including Uber Black and Uber Comfort, along with growing adoption of Uber One memberships (36 mln members contributing over 40% of combined Mobility and Delivery Bookings), bolstered profitability. Enhanced driver supply and platform improvements, like Rider Verification, further supported trip frequency and service reliability.
- The Delivery segment posted $18.13 bln in Gross Bookings, up 20% in constant currency, fueled by UBER’s expansion into new verticals like grocery and retail, which now account for a growing share of Delivery revenue. Despite intense competition from DoorDash (DASH) and macroeconomic pressures, the segment’s resilience was evident, with Adjusted EBITDA margins improving to 2.8% from 1.7% a year ago, driven by higher advertising revenue and better cost leverage from increased order volumes. UBER’s platform integration, including cross-promotion via Uber One and a unified app experience, has deepened consumer engagement.
- Adjusted EBITDA growth of 35% to $2.1 bln was propelled by improved operating leverage, with the Adjusted EBITDA margin expanding to 4.5% of Gross Bookings from 3.9% a year ago, reflecting disciplined cost management and higher-margin trip growth. For Q3, UBER guided to Adjusted EBITDA of $2.19-$2.29 bln, implying 30-36% yr/yr growth, driven by continued scale in Mobility and Delivery, enhanced by Uber One’s cross-platform engagement and advertising revenue growth. Investments in technology and platform integration, alongside a focus on premium services, are key to sustaining profitability, though AV development costs remain a potential headwind.
UBER’s strong Q2 performance and confident Q3 outlook underscore its ability to drive profitable growth at scale, bolstered by both its Mobility and Delivery segments and a massive $20 bln share repurchase program. However, the stock’s post-earnings selloff reflects a sell-the-news reaction as investors lock in gains and weigh the long-term implications of Uber’s robotaxi ambitions.
McDonald's higher on rebound in US comps, but pressure on low income consumers persists (MCD)
McDonald's (MCD +3%) is trading nicely higher after reporting Q2 results this morning that were noticeably better than recent quarters. It reported its largest EPS beat and strongest yr/yr revenue growth since 4Q23. And perhaps most importantly, MCD bounced back from a -3.6% US comp decline in Q1, which was its worst comp number of any quarter since the pandemic, to post a +2.5% US comp in Q2.
- Global comps were also strong at +3.8%, it was a noticeable improvement from recent quarters: -1.0% in Q1, +0.4% in Q4, -1.5% in Q3 and -1.0% in Q2. MCD was lapping a pretty easy year ago comp of -1.0%, but it was still a good number, and likely was helped by favorable F/X. What's more, MCD saw comp sales and guest count accelerate in each segment.
- US comps were quite good at +2.5%, a nice turnaround from -3.6% in Q1. MCD outperformed fast food competitors on both comp sales and comp guest counts. Overall QSR traffic in the US remains challenging as visits across the industry by low income consumers once again declined by double digits yr/yr. Reengaging the low income consumer is critical, as they typically visit MCD restaurants more frequently.
- In response, MCD has re-energized its focus on value. The $5 meal deal continues to resonate with consumers as MCD recently celebrated the one year anniversary of the program. MCD has also added to its value offering with its buy one, add one for $1 deal, which launched at the beginning of this year. MCD also brought back Snack Wraps to the menu after a nine year hiatus at an attractive $2.99 price point. Early results are encouraging. MCD also is providing value deals on its app.
- In terms of the menu, MCD has an upcoming test in about 500 restaurants in the US with a beverage lineup that includes a variety of options from cold coffee and fruity refreshers to crafted soda and energy. Also, chicken remains a significant opportunity as it's a larger global category than beef and continues to grow at a faster rate.
- Looking ahead and despite the good Q2 results, MCD says headwinds facing its business and consumers in the US and top international markets remain largely the same. US restaurant traffic, especially for the QSR industry, remains challenging. However, MCD says it will leave no stone unturned when exploring ways to drive guest count. MCD is working closely with its US franchisees to evaluate ways to improve upon its core menu offerings.
Overall, this was a very good quarter for MCD. We were a bit nervous heading into this report given the weak results we saw from Chipotle (CMG) in late July. Also, MCD has higher exposure to the lower income consumer than most fast food chains. Nevertheless, we were surprised to see the strong comps numbers. And it's not all F/X tailwinds as US comps grew nicely as well. Also, MCD saw improvement in guest counts, which is very important. Looking ahead, MCD will be lapping fairly easy comps in 2H25, but we would not expect big comp numbers given the macro pressures on lower income consumers.
Advanced Micro meets EPS, beats revenue, but China export uncertainty steals the spotlight (AMD)
Advanced Micro Devices (AMD) delivered a mixed Q2 earnings report, meeting analysts' EPS expectations -- a departure from its usual modest beats -- while surpassing revenue forecasts at $7.69 bln, up 32% yr/yr. The company also issued upbeat Q3 revenue guidance of approximately $8.7 bln, implying 28% yr/yr growth and 13% sequential growth. However, elevated investor expectations, fueled by AMD’s AI and data center momentum, were tempered by cautious commentary surrounding U.S. export restrictions on MI308 AI processors, contributing to a post-earnings stock selloff as the in-line EPS and regulatory uncertainty disappointed the market.
- The export restrictions significantly impacted Q2, with AMD incurring approximately $800 mln in inventory and related charges due to halted MI308 shipments to China, a market previously contributing substantial revenue. These charges drove GAAP gross margin down to 43%, a sharp decline, though adjusted non-GAAP gross margin, excluding the charges, was 54%, slightly up from 53% in the year-earlier period, reflecting underlying operational strength.
- The Data Center segment, a cornerstone of AMD’s growth strategy, generated $3.2 bln in revenue, aligning closely with analysts’ estimates and growing 14% yr/yr. Strong demand for AMD’s EPYC processors, which continue to gain traction in cloud and enterprise markets, was the primary driver, effectively offsetting headwinds from restricted MI308 shipments to China. This resilience underscores AMD’s competitive positioning against Intel (INTC) in server CPUs, though the segment’s AI growth remains constrained by regulatory challenges.
- The Client and Gaming segment was the standout, surging 69% yr/yr to $3.6 bln, driving the quarter’s revenue upside. Robust demand for “Zen 5” AMD Ryzen desktop processors fueled a record $2.5 bln in Client revenue, up 67%, while Gaming revenue rose 73% to $1.1 bln, propelled by increased semi-custom revenue and strong Radeon GPU demand. This segment’s performance highlights AMD’s ability to capitalize on PC and gaming market recovery, bolstered by new product launches like the Radeon RX 9060 XT.
The uncertainty surrounding MI308 export restrictions, costing AMD $800 mln in Q2 and excluding China-related revenue from Q3 guidance, is the primary driver of today’s stock selloff. Despite this, AMD delivered solid results, with strong Client and Gaming growth and a bullish Q3 outlook, positioning it well for continued momentum in AI and high-performance computing markets.
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