Market Snapshot
| Dow | 45621.29 | +350.06 | (0.77%) | | Nasdaq | 21707.70 | +209.97 | (0.98%) | | SP 500 | 6502.08 | +53.82 | (0.83%) | | 10-yr Note |
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| | NYSE | Adv 2020 | Dec 709 | Vol 1.02 bln | | Nasdaq | Adv 2661 | Dec 1863 | Vol 7.36 bln |
Industry Watch
| Strong: Consumer Discretionary, Financials, Communication Services, Industrials |
| | Weak: Utilities |
Moving the Market
September rate cut expectations bolstered by softening labor data
Broader market participation today in comparison to yesterday's mega-cap exclusive rally
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Broad-based gains challenge record high levels
04-Sep-25 16:25 ET
Dow +350.06 at 45621.29, Nasdaq +209.97 at 21707.70, S&P +53.82 at 6502.08
[BRIEFING.COM] The stock market quickly shook off an early-session slide, with broad-based strength and firming rate cut expectations lifting the major averages through the session.
The S&P 500 (+0.8%), Nasdaq Composite (+1.0%), and DJIA (+0.8%) traded in tandem, unlike yesterday's action that saw the tech-heavy Nasdaq Composite distance itself from its counterparts. Today's gains saw the S&P 500 establish a new record closing high of 6,502.08.
Further solidification of a September rate cut saw smaller-cap indices participate in today's rally as well, with the S&P Mid Cap 400 advancing 1.5% and the Russell 2000 advancing 1.3%.
A sizable batch of economic data kept monetary policy at the forefront of the market's attention today.
The ADP Employment Change report showed below-consensus job growth in August (54,000; Briefing.com consensus 69,000) while the ISM Services report for August (52.0%; Briefing.com consensus 50.5%) showed an acceleration in activity, but the Employment Index (46.5) remained in contraction for the third month in a row, all of which combined to reflect some weakness in the labor market.
New York Fed President John Williams (FOMC voting member) stated in a speech today that he anticipates interest rates moving toward more neutral levels, citing a gradual cooling in the labor market. The comments, in conjunction with today's data, combined to bolster rate cut expectations, with the CME FedWatch tool assigning a 97.4% probability to a 25-basis point rate cut at the September FOMC meeting.
The market also benefitted from some buy-the-dip action following yesterday's mega-cap-fueled trade that saw only three S&P 500 sectors finish with gains.
Mega-caps still played a key role among several of the best-performing sectors today, and the Vanguard Mega Cap Growth ETF advanced 0.9%. However, the market-weighted S&P 500 (+0.8%) only modestly outperformed the S&P 500 Equal Weighted Index (+0.7%).
In total, ten S&P 500 sectors finished higher, with only the thinly traded utilities sector (-0.2%) finishing with a loss.
The consumer discretionary sector (+2.3%) advanced the furthest today, supported by strong leadership in its top component, Amazon (AMZN 235.68, +9.69, +4.29%).
Though not a component of the sector or the S&P 500, American Eagle (AEO 18.79, +5.17, +37.96%) traded sharply higher in response to its robust earnings beat, with the positive sentiment rippling across other names. The SPDR S&P Retail ETF advanced 2.6%
Homebuilders also displayed strength in response to the prospect of a friendlier interest rate environment, with the iShares U.S. Home Construction ETF gaining 3.0% today.
Elsewhere, the communication services sector (+1.1%) widened its week-to-date gain to 4.5% as Meta Platforms (META 748.65, +11.60, +1.57%) and Netflix (NFLX 1257.48, +31.30, +2.55%) traded higher, while Alphabet (GOOG 232.66, +1.56, +0.68%) closed with a more modest gain after yesterday's rally.
While today's gains put the S&P 500 and Nasdaq Composite on the precipice of new record highs, the action came on lighter than average volume, which suggests some caution is tempering conviction behind the advance.
U.S. Treasuries edged higher on Thursday, adding to their solid gains from yesterday's session. The 2-year note yield settled down two basis points to 3.59% and the 10-year note yield settled down four basis points to 4.18%.
- Nasdaq Composite: +12.4% YTD
- S&P 500: +10.6% YTD
- DJIA: +7.2% YTD
- Russell 2000: +6.7% YTD
- S&P Mid Cap 400: +5.1% YTD
Reviewing today's data:
- August ADP Employment Change 54K (Briefing.com consensus 69K); Prior was revised to 106K from 104K
- July Trade Balance -$78.3 bln (Briefing.com consensus -$64.2 bln); Prior was revised to -$59.1 bln from -$60.2 bln
- The key takeaway from the report is that the surge in imports reflects an easing of some of the tariff pressures that had been applied by the announcement of higher reciprocal rates. The downside, however, is that the net export component will be a negative component in the calculation of Q3 GDP.
- Q2 Productivity-Rev. 3.3% (Briefing.com consensus 2.4%); Prior 2.4%, Q2 Unit Labor Costs - Rev 1.0% (Briefing.com consensus 1.6%); Prior 1.6%
- The key takeaway from the report is that it hit a sweet spot of signalling stronger productivity growth and a modest increase in unit labor costs.
- Weekly Initial Claims 237K (Briefing.com consensus 232K); Prior 229K, Weekly Continuing Claims 1.940 mln; Prior was revised to 1.944 mln from 1.954 mln
- The key takeaway from the report is that there still isn't a strong weakening message being delivered by initial jobless claims, which were up from the prior week but still remain relatively low on a historical basis.
- August S&P Global U.S. Services PMI - Final 54.5; Prior 55.4
- August ISM Services 52.0% (Briefing.com consensus 50.5%); Prior 50.1%
- The key takeaway from the report is that it is a mixed bag for policymakers, featuring faster growth overall but an ongoing contraction in employment and a continuation of price pressures for services organizations.
Semiconductor names higher ahead of Broadcom's earnings
04-Sep-25 15:25 ET
Dow +340.86 at 45612.09, Nasdaq +164.03 at 21661.76, S&P +44.04 at 6492.30
[BRIEFING.COM] The S&P 500 (+0.6%), Nasdaq Composite (+0.8%), and DJIA (+0.8%) trade at session highs near the end of today's action.
Though not among the top-performing S&P 500 sectors, the information technology sector's (+0.3%) climb into positive territory was pivotal in reversing the major average's downward course this morning.
While NVIDIA (NVDA 170.94, +0.32, +0.19%) continues to trade below its 50-day moving average (172.05), chipmakers have put together a solid performance, pushing the PHLX Semiconductor Index to a 1.3% gain.
Market focus now turns to Broadcom's (AVGO 306.28, +3.90, +1.29%) earnings report after the close today. While the company hasn't missed EPS in five years, last quarter's modest beat marked a deceleration. Tonight's report needs to deliver upside and confident Q4 guidance to sustain momentum, as the stock is up 35% since April lows.
Consumer discretionary sector paces healthy gains
04-Sep-25 14:55 ET
Dow +307.95 at 45579.18, Nasdaq +146.97 at 21644.70, S&P +39.11 at 6487.37
[BRIEFING.COM] The major averages continue to plot new session highs as the market enters the final half hour of trading.
Sector performance continues to be strong, as only the defensive utilities (-0.5%) and consumer staples (-0.1%) sectors trade below their opening levels.
Meanwhile, the consumer discretionary sector (2.0%) broadens its gain for the day as Amazon (AMZN 235.12, +9.13, +4.04%) moves further past its 50-day moving average (225.10).
Williams-Sonoma (WSM 201.96, +9.83, +5.12%) is the top performer in the sector, taking back losses it incurred after its earnings report on August 27, which featured an EPS beat, in-line revenues, and upside guidance for FY26 EPS and comparable sales.
The financials sector (+0.9%) holds the next widest gain among the nine S&P 500 sectors trading above their baseline.
Homebuilder names are also putting together solid performances in response to reinforced rate cut expectations, with the iShares U.S. Home Construction ETF advancing 2.6%.
S&P 500 lags peers Thursday as T. Rowe, Williams-Sonoma, Western Digital pace gains; NiSource sinks
04-Sep-25 14:30 ET
Dow +299.13 at 45570.36, Nasdaq +127.61 at 21625.34, S&P +35.38 at 6483.64
[BRIEFING.COM] The S&P 500 (+0.55%) is now in last place on Thursday afternoon, up about 35 points.
Briefly, S&P 500 constituents T. Rowe Price (TROW 111.52, +6.15, +5.84%), Williams-Sonoma (WSM 201.98, +9.85, +5.13%), and Western Digital (WDC 90.27, +4.37, +5.09%) pepper the top of the standings. TROW tops the average after news that Goldman Sachs (GS 746.66, +16.10, +2.20%) announced a $1 bln equity investment and strategic partnership to expand public-private investment solutions, signaling strong confidence in the asset manager's growth outlook, WSM appears to be garnering modest strength in sympathy to apparel peer American Eagle's (AEO 18.31, +4.69, +34.43%) strong print, while WDC is poised to extend its recent winning streak to seven of the last eight sessions.
Meanwhile, NiSource (NI 39.25, -2.55, -6.10%) is today's worst laggard despite a dearth of corporate news.
Gold slips from records on profit-taking, but Fed cut bets keep bullish momentum intact
04-Sep-25 14:00 ET
Dow +292.56 at 45563.79, Nasdaq +114.33 at 21612.06, S&P +34.38 at 6482.64
[BRIEFING.COM] With about two hours to go on Thursday the tech-heavy Nasdaq Composite (+0.53%) is tied with the S&P 500 for second place.
Gold futures settled $28.80 lower (-0.8%) at $3,606.70/oz, reflecting a typical pullback after a string of record-high gains. The modest retreat appears largely driven by short-term profit-taking, rather than a shift in broader market fundamentals. Underlying bullish momentum remains intact, supported by mounting speculation of an imminent Federal Reserve rate cut, with futures markets assigning nearly a 97% chance of a 25-basis-point cut later this month. All eyes now turn to Friday's non-farm payrolls report, which may either reinforce or challenge the dovish outlook. Meanwhile, safe-haven demand persists amid ongoing political uncertainty and concerns over central-bank independence.
Meanwhile, the U.S. Dollar Index is now +0.2% to $98.39.
Ciena soars to multi-decade highs as AI-driven optical boom fuels beat-and-raise Q3 report (CIEN)
Ciena (CIEN) delivered a resounding beat-and-raise 3Q25 earnings report that has propelled shares to multi-decade highs. As a premier fiber optics equipment maker, the company is reaping substantial benefits from the relentless buildout of data centers and underlying infrastructure to accommodate the explosive expansion of AI technologies, where hyperscalers and emerging AI players are pouring billions into high-bandwidth, low-latency connectivity to support generative AI and machine learning workloads.
This tailwind is evident in the quarter's revenue of $1.22 bln, up 29.4% yr/yr -- CIEN's strongest revenue growth in over five years -- and adjusted EPS of $0.67 that handily beat analysts' estimates. Bolstering the bottom line, CIEN repurchased approximately 1.0 mln shares for $81.8 mln during the quarter under its $1 bln three-year authorization, accretively shrinking the share count and enhancing EPS.
- The sharp acceleration in revenue growth was fueled by surging demand for high-speed optical solutions amid the AI boom, with direct cloud provider revenues nearly doubling yr/yr to 40% of total sales and non-telco customers comprising 53% of the mix. This improved trajectory is primarily a function of CIEN's Optical Networking segment, which rocketed 64% to $815.5 mln (66.9% of total revenue), up from $606.8 mln a year ago, as hyperscalers ramped deployments of packet-optical platforms like the 6500 series and Waveserver interconnects critical for AI data center backbones.
- Key drivers include landmark wins such as a major hyperscaler order for 400ZR+ pluggable optics, establishing CEIN as the primary supplier, alongside innovations like the WaveLogic 6 Extreme (WL6e) platform that enabled world-record trials, including 1.6 Tb/s over a single wavelength in South Africa and 1.3 Tb/s across the transatlantic Marea subsea cable.
- While less spectacular than its optical counterpart, the Routing and Switching segment still posted healthy revenue growth of nearly 10% to $125.9 mln (10.3% of total), reflecting steady adoption of coherent IP routing solutions like the 8192 platform and WaveRouter, which integrate high-capacity optics for efficient metro and edge connectivity in AI-driven networks.
- CEO Gary Smith emphasized during the earnings call that CIEN now has visibility well into 2026, providing the confidence to continue expanding operating leverage as the company scales. On that front, CEIN guided for Q4 adjusted gross margin of 42-43%, an improvement from Q3's 41.9% (which dipped due to product mix favoring lower-margin pluggables and reconfigurable line systems), on revenue of $1.24-$1.32 bln -- comfortably exceeding the consensus and implying 25% yr/yr growth at the midpoint.
CIEN's impressive beat-and-raise Q3 performance was propelled by explosive 29% revenue acceleration, led by the Optical Networking segment's 64% surge on AI-fueled hyperscaler demand and WL6e innovations, complemented by healthy Routing and Switching growth amid converged networking tailwinds. The company's diversification to 53% non-telco revenue, robust cash generation, and extended 2026 visibility underscore its entrenched moat in coherent optics, justifying the stock's rally to multi-decade highs.
Hewlett Packard Enterprise higher on Q3 beat, supported by record revenue and Juniper boost (HPE)
Hewlett Packard Enterprise (HPE) is trading nicely higher after reporting its Q3 (Jul) results last night that featured record revenue and the first contribution from its newly closed Juniper Networks acquisition. The IT solutions company beat expectations on both EPS and revenue.
- Revenue rose 18% yr/yr to $9.1 bln, with broad based demand across AI, Networking, and Hybrid Cloud. Excluding Juniper, revenue was still a record, up 11% yr/yr, surpassing the high end of HPE's outlook. ARR increased 75% yr/yr (40% excluding Juniper).
- Networking revenue of $1.7 bln jumped 54% yr/yr, supported by Juniper's July contribution. The networking market continues to recover, while the company is seeing strong demand in campus and branch driven by wired and wireless refresh, SASE, and data center switching. Segment operating profit of $360 mln increased 43% yr/yr, with the new combined networking business (Intelligent Edge and Juniper Networks) accounting for nearly half of consolidated operating profit.
- Server revenue hit an all-time high $4.9 bln, up 16% yr/yr and 21% sequentially, boosted by a large AI system shipment. AI systems revenue of $1.6 bln was also a record, while net new AI system orders totaled $2.1 bln, leaving HPE with a record $3.7 bln AI backlog exiting the quarter.
- Hybrid Cloud revenue grew 11% yr/yr to $1.5 bln, marking a fourth straight quarter of double-digit growth, supported by triple-digit gains for Alletra MP storage.
Briefing.com Analyst Insight
This was a strong quarter for HPE. The company is firing on all cylinders, with Networking now its largest profit contributor, Servers benefiting from AI demand, and Hybrid Cloud extending its growth streak. A key takeaway is HPE's ability to both convert AI backlog into revenue and add new large-scale AI orders, resulting in a record backlog that underscores sustained demand. Also, the Juniper acquisition is already proving accretive, driving scale in networking and boosting profitability despite initial integration costs.
Salesforce Drops Despite Q2 Beat and $20B BuybackâAI Revenue Concerns Linger (CRM)
Salesforce is moving sharply lower today despite delivering a solid Q2 (Jul) beat and increasing its share buyback authorization by $20 bln, bringing the total to $50 bln. The issue lies in the Q3 (Oct) revenue guidance, with the mid-point falling short of analyst expectations, which is reigniting concerns that Salesforce's AI investments are not translating into revenue fast enough.
- Current Remaining Performance Obligation (cRPO) rose 11% yr/yr (10% CC) to $29.4 bln, above prior guidance of 10% (9% CC), driven by strong execution in SMB and large deals. However, it declined sequentially from Q1's $29.6 bln and slowed from 12% yr/yr growth in Q1.
- AI/Data Cloud Annual Recurring Revenue (ARR) exceeded $1.2 bln in Q2, up 120% yr/yr.
- Agentforce, Salesforce's AI platform launched in Oct. 2024. Salesforce has closed over 12,500 deals since launching Agentforce, including 6,000+ paid. Over 40% of Q2 bookings for Data Cloud and Agentforce came from existing customer expansion.
- Strength was seen in the US and parts of EMEA (notably Netherlands and Switzerland), while UK and Japan were weak. Technology and communications/media verticals performed well; retail, consumer goods, and public sector remained cautious.
- Q2 benefited from one-time license and professional services revenue.
Briefing.com Analyst Insight:
Salesforce's Q2 was solid on paper, but the underwhelming Q3 outlook and slowing cRPO growth suggest that enthusiasm around AI is not yet translating into sustained top-line performance. While Agentforce is gaining traction, investors are questioning whether CRM can compete effectively with AI-native apps and custom-built solutions. The stock has been trending lower since Dec. 2024, and without clearer signs of durable AI-driven growth, it's tough to justify chasing it here.
Figma's growth slowdown spooks investors, while lock-up expiration adds to selling pressure (FIG)
The first earnings report as a public company is always a landmark event, but that's especially the case for a highly touted IPO such as Figma (FIG), a leading collaborative design software company. After the close yesterday, FIG reported Q2 results that landed at the upper end of the guidance range outlined in the IPO prospectus -- revenue of $249.6 mln, up 41% yr/yr, against the $247-$250 mln range, and adjusted operating margin of 5% versus the 4-5% outlook. However, the market's reaction has been punishing with shares cratering to post-IPO lows and now trading 35% below the $85 IPO opening price from July 31.
The core of the disappointment appears rooted in FIG's forward-looking guidance, which, while technically ahead of consensus estimates, signals a deceleration that high-growth investors find unpalatable.
- For Q3, management projected revenue of $263-$265 mln, modestly surpassing the street expectation but implying a midpoint growth rate of just 33% yr/yr -- down from the 41% delivered in Q2. This softening trajectory raises questions about sustained momentum in a competitive landscape where Adobe (ADBE) and emerging AI-native tools are nipping at the heels of FIG's UI/UX dominance.
- Compounding this, the FY25 revenue outlook of $1.021-$1.025 bln merely aligns with analyst forecasts, offering no upside surprise for a stock that commands a forward P/S multiple north of 25x. In the SaaS realm, where multiples can compress for anything short of 50%+ growth, this in-line guidance feels like a red flag, especially post-IPO when the bar for outperformance is sky-high.
- A key factor dragging on Q3 growth is the lingering impact of FIG's 2024 decision to aggressively sell access to Dev Mode, its developer handoff tool that bridges design and code implementation. Last year, this initiative provided a meaningful revenue tailwind as teams upgraded seats to integrate developers into the workflow, boosting adoption and monetization in a way that juiced 2Q24 results. However, with much of that low-hanging fruit now harvested -- many enterprise customers have already provisioned Dev Mode seats -- the yr/yr comp becomes tougher, as 3Q24 benefited from that surge while the current quarter lacks a comparable catalyst.
- Today's share lockup expiration adds another layer of selling pressure, as approximately 25% of eligible employee-held stock becomes tradable after market close, injecting fresh supply into an already volatile float. This early release, triggered by the stock's post-IPO performance exceeding the 25% threshold over a qualifying period, aligns with the standard 180-day lockup but accelerates liquidity for rank-and-file holders eager to realize gains after a turbulent debut.
- That said, the lockup structure provides some guardrails: investors controlling over 50% of outstanding shares, including major VCs like Index Ventures and Sequoia, have committed to an extended lockup, with the final 35% tranche not unlocking until August 2026. This staggered approach mitigates a full flood of supply, offering a buffer for long-term holders.
- On a brighter note, FIG's Q2 execution was solid, underpinned by the rollout of four innovative products -- Figma Make for AI-powered prototyping from prompts, Figma Draw for advanced vector illustration, Figma Sites for seamless design-to-live-website publishing, and Figma Buzz for scalable brand asset creation -- which have broadened the platform's appeal beyond core UI/UX into full-spectrum product development.
- These launches not only drove the quarter's revenue beat but also contributed to a robust 129% net dollar retention rate, evidencing deepening adoption as customers expand seat counts and workflows across teams. This metric, while slightly off Q1's 132%, remains elite for SaaS, reflecting FIG's sticky ecosystem where 80% of users engage with multiple products.
- Notably, the company isn't yet fully monetizing its AI suite -- features like Make and Buzz are in beta with usage-based credits included in seats -- but management signaled plans to introduce purchasable AI credits later in 2025, which could unlock a new high-margin revenue stream as adoption scales.
FIG's Q2 beat at the high end of guidance underscores a resilient business with proven product-market fit and AI tailwinds, yet the tepid Q3/FY25 outlook and impending lockup dynamics are tempering enthusiasm, propelling shares to post-IPO troughs.
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