AeroVironment, Inc. designs, develops, produces, delivers, and supports a portfolio of robotic systems and related services for government agencies and businesses in the United States and internationally. It operates through Small Unmanned Aircraft Systems (SUAS), Tactical Missile System (TMS), Medium Unmanned Aircraft Systems (MUAS), and High Altitude Pseudo-Satellite Systems (HAPS) segments. The company supplies UAS, TMS, unmanned ground vehicle, and related services primarily to organizations within the U.S. Department of Defense, other federal agencies, and to international allied governments. It also designs, engineers, tools, and manufactures unmanned aerial and aircraft systems, including airborne platforms, payloads and payload integration, ground control systems, and ground support equipment and other items and services related to unmanned aircraft systems. In addition, the company offers small UAS products, including training, spare parts, product repair, product replacement, and the customer contracted operation. Further, it develops high-altitude pseudo-satellite UAS systems. AeroVironment, Inc. was incorporated in 1971 and is headquartered in Arlington, Virginia.

AeroVironment looks like a company with a strong balance sheet, but with notable pressure on earnings quality and margins. Liquidity is very comfortable: the current ratio of 4.30 and quick ratio of 3.59 are significantly above industry medians, while cash on hand of $632 million supports financial stability. Leverage is moderate: debt/equity of 0.17 is below the median, although long-term debt has increased to $729 million, which adds some caution. On revenue, the picture is positive — $642 million in TTM revenue and growth versus prior periods indicate business expansion, and gross profit and EBITDA also remain positive. However, gross margin has declined to 24.71% from around 39% a year earlier, which points to pressure on cost of goods sold and sales mix. More importantly, ROE, ROA, ROI, operating margin, and net profit margin are currently at zero, meaning current profitability looks unstable and weaker than one would like to see for a premium valuation. At the same time, TTM EPS of 1.84 and forward EPS of 1.53 remain high relative to the industry, which partially supports the valuation. But the multiples do not provide a clear margin of safety: P/S of 4.26 is notably above the industry median, while P/B of 2.09 is only moderately lower, so the market is already pricing in a fair amount of optimism. The absence of dividends removes one source of defensive return for an investor. Asset and equity growth looks strong, but it has not yet fully translated into sustainable profitability. Overall, the fundamentals support a cautiously positive view of balance sheet quality, but weak margins and zero current profitability limit revaluation potential. For the target price, this implies a moderately negative adjustment, since the current market valuation looks less attractive against the backdrop of deteriorated operating efficiency.

AeroVironment, Inc.

Средний индекс, значительно упал. Оптимистичный взгляд на свои позиции резко сменился на неуверенность.

Medium index, significantly down. An optimistic view of his position suddenly changed to uncertainty.

Средний индекс, значительно упал. Рынок не поддерживает быков.

Medium index, significantly down. The market does not support the bulls.

Слабый индекс, незначительно упал

Strong balance sheet and revenue growth support AVAV, but declining margins and zero profitability limit the valuation and call for caution.

AeroVironment (AVAV) ended the recent trading session at $245.90, demonstrating a +1.97% change from the preceding day's closing price. This change outpaced the S&P 500's 0.41% gain on the day. On the other hand, the Dow registered a gain of 0.3%, and the technology-centric Nasdaq increased by 0.44%.
The maker of unmanned aircrafts's stock has dropped by 10.89% in the past month, falling short of the Aerospace sector's loss of 1.41% and the S&P 500's gain of 0.87%.
Investors will be eagerly watching for the performance of AeroVironment in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on September 9, 2025. The company is forecasted to report an EPS of $0.34, showcasing a 61.8% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $453.5 million, indicating a 139.34% upward movement from the same quarter last year.
AVAV's full-year Zacks Consensus Estimates are calling for earnings of $3.23 per share and revenue of $2 billion. These results would represent year-over-year changes of -1.52% and +144.32%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for AeroVironment. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. AeroVironment currently has a Zacks Rank of #1 (Strong Buy).
Digging into valuation, AeroVironment currently has a Forward P/E ratio of 74.62. This expresses a premium compared to the average Forward P/E of 37.32 of its industry.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 78, finds itself in the top 32% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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AeroVironment (AVAV) Surpasses Market Returns: Some Facts Worth Knowing

Key Points
The disposition involved 5,246 shares at an exact price of $144.58 per share, representing a total transaction value of ~$758,500 on July 10, 2026.
The transaction reduced the executive's direct equity holdings by 3%, while his overall ownership of the company remains at 0.32%.
This was a non-discretionary disposition executed to satisfy tax withholding obligations following the vesting of restricted stock awards, with no shares held indirectly.
Wahid Nawabi continues to hold ~162,000 shares worth $23.45 million as of the July 10, 2026 market close, maintaining a significant long-term interest in the company.
Wahid Nawabi, Chair, President and CEO of AeroVironment, Inc. (NASDAQ:AVAV), disposed of 5,246 shares of common stock on July 10, 2026, according to a recent SEC Form 4 filing.
Transaction summary
Transaction value
~$758,500
Shares sold
5,246
Post-transaction shares (directly held)
~162,200
Post-transaction value
$23.45 million
Transaction value based on SEC Form 4 weighted average sale price ($144.58); post-transaction value based on July 10, 2026, market close ($144.58).
Key questions
What triggered this stock disposition?
The sale was non-discretionary and was carried out solely to meet tax withholding requirements triggered by the vesting of previously granted restricted stock awards. This is a routine procedural event and does not represent a voluntary market sale or a change in the CEO's outlook on the company.
What is the executive's current equity position in the company?
Following the tax settlement, Wahid Nawabi maintains direct ownership of ~162,200 shares. This remaining stake represents approximately 0.32% of the company's total outstanding shares and reflects a concentrated personal investment in the firm.
What is the significance of the underlying vesting event?
The vesting of these restricted stock awards indicates the fulfillment of specific service or performance milestones within the company's equity incentive framework. While a portion of the vested shares was sold to cover mandatory taxes, the transaction ultimately supports the executive's long-term alignment with shareholders by increasing his total vested equity base.
Company Overview
Share Price (as of market close 2026-07-17)
$142.20
Market Capitalization
$7.3 billion
Revenue (TTM)
$2.0 billion
Net Income (TTM)
-$265.1 million
Company Snapshot
AeroVironment develops, produces, and delivers a comprehensive portfolio of robotic systems and unmanned aircraft platforms, including Unmanned Aircraft Systems (UAS), Tactical Missile Systems (TMS), Medium Unmanned Aircraft Systems (MUAS), and High Altitude Pseudo-Satellite Systems (HAPS), generating revenue through both product sales and ongoing support services.
The company operates on a defense-oriented business model, providing specialized robotic and autonomous systems to governmental agencies and commercial entities, with revenue derived from product development, manufacturing, system integration, and long-term customer support contracts.
AeroVironment's primary customer base consists of U.S. government agencies and international defense departments, supplemented by commercial clients seeking advanced unmanned systems for surveillance, reconnaissance, and tactical applications.
AeroVironment is a leading provider of unmanned systems and robotic platforms serving the aerospace and defense sector, with a market capitalization of $7.3 billion and TTM revenues of $2.0 billion. The company maintains a diversified product portfolio across multiple unmanned platform categories, positioning itself as a critical supplier to government and commercial customers requiring advanced autonomous and remote-operated systems. Despite current operational losses, AeroVironment's strategic focus on high-growth defense markets and emerging autonomous technologies underscores its competitive positioning within the industrial aerospace and defense landscape.
What this transaction means for investors
Nawabi’s sales are merely done to cover his tax withholdings from his restricted stock units, so the sale itself is nothing for investors to worry about. As for AVAV stock itself, its 50% share price plunge over the last year probably seems a bit more worrying.
However, I don’t believe we are anywhere near needing to panic over things just yet. Rather, I’d argue that AeroVironment’s valuation probably got a bit out over its skis in the last couple of years and is now potentially attractively priced, with its price-to-sales ratio of 3.5 near its 10-year lows. The company grew sales by 40% in its latest quarter, saw its funded backlog grow by 82% in 2025, and expects revenue to grow between 15% and 20% through 2030.
With the U.S. government leaning into drones and similar UAS solutions for defense, I don’t believe this growth is temporary by any means -- but anything is possible when dealing with the government. As AeroVironment transforms from simply a drone/UAS maker into a fully integrated defense platform following the acquisition of Blue Halo and its space operations and software foundation layer, AVAV will remain on my shortlist and is likely to grow from a starter position into a full holding.
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Josh Kohn-Lindquist has positions in AeroVironment. The Motley Fool has positions in and recommends AeroVironment. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

AeroVironment CEO Wahid Nawabi Sells 5,246 Shares for Tax Withholding. What Investors Need to Know.

The S&P 500 Index ($SPX) (SPY) on Thursday closed down -0.51%, the Dow Jones Industrial Average ($DOWI) (DIA) closed down -0.20%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -1.62%. September E-mini S&P futures (ESU26) fell -0.50%, and September E-mini Nasdaq futures (NQU26) fell -1.58%.
Stock indexes settled lower on Thursday, with the Nasdaq 100 falling to a 1-week low. The weakness in chipmakers and AI-infrastructure stocks weighed on the overall market on Thursday amid concerns over whether massive artificial intelligence investments will justify current lofty valuations. Chipmakers had negative carryover pressure on Thursday from a -6% plunge in South Korea’s Kospi Index, which was weighed down by sharp losses in SK Hynix and Samsung Electronics.
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Also weighing on the broader market on Thursday was weakness in cloud infrastructure stocks and a selloff in mining stocks after gold, silver, and copper prices slumped. In addition, Alphabet fell by more than -4% after Google was said to be months behind schedule in delivering its most powerful AI model.
While most chipmaking-related stocks retreated on Thursday, technology laggards such as software stocks rose as investors rotated into underperforming sectors. Also, trucking companies rallied after JB Hunt Transport Services reported stronger-than-expected Q2 revenue, and Abbott Laboratories soared by more than +10% after raising its full-year adjusted EPS forecast.
Thursday’s US economic reports were generally positive for the economy but hawkish on Fed policy, pushing bond yields higher; the 10-year T-note yield is up by +2 bp to 4.57%.
US weekly initial unemployment claims unexpectedly fell -8,000 to a 10-week low of 208,000, showing a stronger labor market than expectations of an increase to 217,000.
US Jun retail sales rose +0.2% m/m, right on expectations. However, Jun retail sales ex-autos fell -0.2% m/m, weaker than expectations of -0.1% m/m.
The US Jul Philadelphia Fed business outlook survey rose +31.1 to a 4.5-year high of 41.4, stronger than expectations of 12.5.
US Jun pending home sales fell -5.4% m/m, weaker than expectations of -0.5% m/m and the steepest decline in 6 months.
The US Jul NAHB housing market index unexpectedly fell -2 to 34, weaker than expectations of no change at 35.
Fed comments on Thursday were hawkish and negative for stocks and bonds. Kansas City Fed President Jeff Schmid said, "his primary concern is inflation, which is too hot and has been above target for too long. As such, my focus remains on inflation in setting the correct course for monetary policy." Also, Dallas Fed President Lorie Logan said, "I currently believe modestly higher interest rates would better balance the outlook and risks" for the Fed's dual mandate of price stability and full employment.
Geopolitical risks remain as the US launched fresh airstrikes on Iran and struck a sanctioned Iranian oil tanker in the Persian Gulf. Iran responded by firing upon American bases in Kuwait and Jordan, with the Jordanian government saying it intercepted eight missiles. President Trump pledged to intensify the bombardment until Iran stops attacking ships in the Strait of Hormuz and agrees to open the waterway.
The Wall Street Journal reported on Thursday that President Trump is leaning toward expanding military operations and discussed the seizure of Kharg Island, Iran’s main oil export terminal. According to RBC Capital Markets LLC, a seven-day moving average of oil flows through the Strait of Hormuz has slumped to 3.9 million bpd from 8.5 million bpd before the collapse of the ceasefire.
The outlook for strong Q2 earnings, which began this week, is a bullish factor for stocks. Forecasts compiled by Bloomberg Intelligence suggest Q2 earnings may increase by +23%, close to Q1’s blowout earnings of +30%, which was more than double the +12% analysts had expected. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2.
The markets are discounting a 10% chance of a +25 bp rate hike at the next FOMC meeting on July 28-29.
Overseas stock markets settled mixed on Thursday. The Euro Stoxx 50 recovered from a 1-week low and closed up +0.29%. China's Shanghai Composite fell to a 3.5-month low and closed down -1.85%. Japan's Nikkei-225 Stock Average closed down -2.79%.
Interest Rates
September 10-year T-notes (ZNU6) on Thursday closed down -5 ticks, and the 10-year T-note yield rose +2.0 bp to 4.567%. Stronger-than-expected US economic reports on Thursday weighed on T-note prices after weekly initial unemployment claims unexpectedly fell to a 10-week low and the Jul Philadelphia Fed business outlook survey rose more than expected to a 4.5-year high. T-notes were also under pressure amid hawkish comments from Kansas City Fed President Jeff Schmid and Dallas Fed President Lorie Logan, who said they favored tighter Fed policy to bring down inflation. T-notes recovered from their worst levels after stocks retreated, which boosted safe-haven demand for T-notes.
European government bond yields moved higher on Thursday. The 10-year German bund yield rose to a 1.75-month high of 3.164% and finished up +1.2 bp to 3.134%. The 10-year UK gilt yield rose +2.8 bp to 4.966%.
UK May monthly GDP rose +0.1% m/m, stronger than expectations of no change m/m.
UK May manufacturing production unexpectedly rose +0.1% m/m, stronger than expectations of a -0.2% m/m decline.
Swaps are discounting a 7% chance of a +25 bp ECB rate hike at its next policy meeting on July 23.
US Stock Movers
Chipmakers and AI-infrastructure stocks sold off on Thursday, weighing on the broader market. The iShares Semiconductor ETF (SOXX) fell to a 5-week low, closing down more than -4%. SanDisk (SNDK) closed down more than -12% to lead losers in the S&P 500, and Seagate Technology Holdings Plc (STX) closed down -10%. Also, Western Digital (WDC) closed down more than -9%, and Marvel Technology (MRVL) closed down more than -8%. In addition, ARM Holdings Plc (ARM), Intel (INTC), Micron Technology (MU), Advanced Micro Devices (AMD), Microchip Technology (MCHP), and Broadcom (AVGO) closed down more than -5%, and Lam Research (LRCX) and Qualcomm (QCOM) closed down more than -4%.
Cloud infrastructure stocks slumped on Thursday. Nebius Group NV (NBIS) closed down more than -13% to lead losses in the Nasdaq 100, and Applied Digital (APLD) closed down more than -8%. Also, Oracle (ORCL) closed down more than -6%, and CoreWeave (CRWV) closed down more than -5%.
Mining stocks fell on Thursday as gold, silver, and copper prices sold off. Coeur Mining (CDE) closed down more than -6%, and Hecla Mining (HL) closed down more than -5%. Also, Freeport McMoran (FCX) and Newmont Corp (NEM) closed down more than -4%, and Anglogold Ashanti (AU), Barrick Mining (B), and Southern Copper (SCCO) closed down more than -3%.
Cryptocurrency-exposed stocks slid on Thursday along with Bitcoin (^BTCUSD). Galaxy Digital Holdings (GLXY) closed down more than -9%, and MARA Holdings (MARA) and Circle Internet Group (CRCL) closed down more than -7%. Also, Riot Platforms (RIOT) closed down more than -6%, Coinbase Global (COIN) closed down more than -4%, and Strategy (MSTR) closed down more than -3%.
JB Hunt Transport Services (JBHT) is up more than +8% to lead trucking companies higher after reporting Q2 revenue of $3.50 billion, better than the consensus of $3.25 billion. Also, FedEx Freight Holding (FDXF) and XPO Inc (XPO) closed up more than +7%, and ArcBest (ARCB) closed up more than +6%. In addition, Saia Inc (SAIA), Old Dominion Freight Line (ODFL), and Knight-Swift Transportation Holdings (KNX) closed up more than +5%, and CH Robinson Worldwide (CHRW) closed up more than +4%. Finally, Marten Transport Ltd (MRTN) and United Parcel Service (UPS) closed up more than +3%.
AST SpaceMobile (ASTS) closed down more than -17% after announcing its intent to offer $1.0 billion of convertible senior notes due 2034 in a private offering.
Alphabet (GOOGL) closed down more than -4% after Google was said to be months behind schedule on delivering its most powerful AI model.
GE Aerospace (GE) closed down more than -4% despite the company raising its adjusted earnings per share guidance for the full year after TD Cowen said the raise “may not be good enough.”
United Airlines Holdings (UAL) closed down more than -1% after forecasting full-year adjusted EPS of $9 to $11, the midpoint below the consensus of $10.51.
Abbott Laboratories (ABT) closed up more than +10% to lead gainers in the S&P 500 after raising its full-year adjusted EPS forecast to $5.45 to $5.60 from a previous forecast of $5.38 to $5.58, the midpoint above the consensus of $5.48.
AeroVironment (AVAV) closed up more than +5% after Raymond James upgraded the stock to outperform from neutral with a price target of $210.
Merck & Co (MRK) closed up more than +3% after the USDA approved the company’s Lipfendra medication pill to reduce LDL cholesterol.
Rocket Cos (RKT) closed up more than +2% after Morgan Stanley upgraded the stock to overweight from equal weight with a price target of $19.
UnitedHealth Group (UNH) closed up more than +1% after reporting Q2 adjusted EPS of $6.38, well above the consensus of $4.89, and raising its full-year adjusted EPS estimate to $19.50 to $20.00 from a previous estimate of above $18.25.
Earnings Reports(7/17/2026)
Fifth Third Bancorp (FITB), Regions Financial Corp (RF), Travelers Cos Inc/The (TRV), Truist Financial Corp (TFC).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Settle Lower as Chipmakers and AI Stocks Slump

Drones have revolutionized warfare in the Middle East and Ukraine. Drone attacks are among Iran's core tactics for striking US bases and targets in Gulf states.
The US military has deployed sea drones to help clear mines in the Strait of Hormuz. This month, US forces also launched drone boat attacks in the first combat use of sea drones.
Ukraine's mass drone production has helped turn the tables in the Russia-Ukraine war, now in its fifth year. Its mid- and long-range drones have struck Russian air bases, army convoys, and oil refineries, while its sea drones have targeted Russian warships and commercial vessels.
China dominates global drone production, making the expansion of domestic drone capabilities a critical priority for the United States.
In May, The Wall Street Journal reported that the Trump administration was in talks to fund US drone companies. Drone stocks such as Unusual Machines UMAC, Kratos Defense & Security Solutions KTOS, and AeroVironment AVAV surged following the report..
The White House requested a whopping $54.6 billion for the Pentagon's Defense Autonomous Warfare Group (DAWG), which coordinates and develops unmanned systems, artificial intelligence, and autonomous drone swarms, in the FY27 budget.
In Europe, NATO has announced a Drone Edge initiative, with more than $40 billion committed across 20 member states over the next five years.
Drones are also critical to the broader push toward commercial and industrial autonomy, including applications in delivery, inspection, agriculture, and security. These companies stand to benefit from growing military spending and the increasing use of autonomous systems in modern warfare.
Many drone companies are small-cap, highly volatile, and trade on headlines. Drone ETFs provide exposure to a diversified basket of stocks positioned to benefit from the theme. In addition to pure-play drone companies, these funds also hold defense giants such as Northrop Grumman NOC and Lockheed Martin (LMT), which are developing next-generation autonomous systems.
To learn about the REX Drone ETF DRNZ and Defiance Drone and Modern Warfare ETF (JEDI), please watch the short video above
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Should You Buy the Dip in Drone Stocks and ETFs?

The S&P 500 Index ($SPX) (SPY) today is down -0.14%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +0.21%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.96%. September E-mini S&P futures (ESU26) are down -0.18%, and September E-mini Nasdaq futures (NQU26) are down -1.02%.
Stock indexes are mixed today, with the Dow Jones Industrials posting a 1-week high and the Nasdaq 100 falling to a 1-week low. The weakness in chipmakers and AI-infrastructure stocks is dragging the overall market lower today. Chipmakers are sliding today on negative carryover from a -6% plunge in South Korea’s Kospi Index, which was weighed down by sharp losses in SK Hynix and Samsung Electronics.
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While most chipmaking-related stocks are trading lower, technology laggards such as software stocks are climbing as investors rotate into underperforming sectors. Also, today’s +4% jump in UnitedHealth Group and +2% rally in Merck & Co are keeping the Dow Jones Industrial Average in positive territory.
Today’s US economic reports were generally positive for the economy but hawkish on Fed policy, pushing bond yields higher; the 10-year T-note yield is up by +3 bp to 4.58%.
US weekly initial unemployment claims unexpectedly fell -8,000 to a 10-week low of 208,000, showing a stronger labor market than expectations of an increase to 217,000.
US Jun retail sales rose +0.2% m/m, right on expectations. However, Jun retail sales ex-autos fell -0.2% m/m, weaker than expectations of -0.1% m/m.
The US Jul Philadelphia Fed business outlook survey rose +31.1 to a 4.5-year high of 41.4, stronger than expectations of 12.5.
US Jun pending home sales fell -5.4% m/m, weaker than expectations of -0.5% m/m and the steepest decline in 6 months.
The US Jul NAHB housing market index unexpectedly fell -2 to 34, weaker than expectations of no change at 35.
WTI crude oil prices (CLQ26) are up nearly +1% today after the US launched fresh airstrikes on Iran and struck a sanctioned Iranian oil tanker in the Persian Gulf. Iran responded by firing upon American bases in Kuwait and Jordan, with the Jordanian government saying it intercepted eight missiles. President Trump pledged to intensify the bombardment until Iran stops attacking ships in the Strait of Hormuz and agrees to open the waterway.
The Wall Street Journal reported today that President Trump is leaning toward expanding military operations and discussed the seizure of Kharg Island, Iran’s main oil export terminal. According to RBC Capital Markets LLC, a seven-day moving average of oil flows through the Strait of Hormuz has slumped to 3.9 million bpd from 8.5 million bpd before the collapse of the ceasefire.
The outlook for strong Q2 earnings, which began this week, is a bullish factor for stocks. Forecasts compiled by Bloomberg Intelligence suggest Q2 earnings may increase by +23%, close to Q1’s blowout earnings of +30%, which was more than double the +12% analysts had expected. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2.
The markets are discounting a 12% chance of a +25 bp rate hike at the next FOMC meeting on July 28-29.
Overseas stock markets are lower today. The Euro Stoxx 50 fell to a 1-week low and is down -0.29%. China's Shanghai Composite fell to a 3.5-month low and closed down -1.85%. Japan's Nikkei-225 Stock Average closed down -2.79%.
Interest Rates
September 10-year T-notes (ZNU6) today are down -9 ticks, and the 10-year T-note yield is up +3.8 bp to 4.586%. Stronger-than-expected US economic reports today are weighing on T-note prices after weekly initial unemployment claims unexpectedly fell to a 10-week low and the Jul Philadelphia Fed business outlook survey rose more than expected to a 4.5-year high. T-notes are also under pressure from higher crude oil prices, which have raised inflation expectations.
European government bond yields are moving higher today. The 10-year German bund yield rose to a 1.75-month high of 3.164% and is up +2.3 bp to 3.145%. The 10-year UK gilt yield is up +4.2 bp to 4.980%.
UK May monthly GDP rose +0.1% m/m, stronger than expectations of no change m/m.
UK May manufacturing production unexpectedly rose +0.1% m/m, stronger than expectations of a -0.2% m/m decline.
Swaps are discounting a 7% chance of a +25 bp ECB rate hike at its next policy meeting on July 23.
US Stock Movers
Chipmakers and AI-infrastructure stocks are sliding today, weighing on the broader market. The iShares Semiconductor ETF (SOXX) is down more than -2%. Sandisk (SNDK) is down more than -8% to lead losers in the S&P 500, and ARM Holdings Plc (ARM) is down more than -7%. Also, Marvel Technology (MRVL) is down more than -6%, and Western Digital (WDC) is down more than -5%. In addition, Seagate Technology Holdings Plc (STX) is down more than -4%, and Advanced Micro Devices (AMD), Microchip Technology (MCHP), Intel (INTC), Micron Technology (MU), Qualcomm (QCOM), and Texas Instruments (TXN) are down more than -3%.
Mining stocks are falling today, along with gold, silver, and copper prices, which are sharply lower. Coeur Mining (CDE) and Hecla Mining (HL) are down more than -5%, and Freeport McMoran (FCX), Newmont Corp (NEM),Anglogold Ashanti (AU), and Barrick Mining (B) are down more than -3%. Also, Southern Copper (SCCO) is down more than 1%.
Cryptocurrency-exposed stocks are sliding today with Bitcoin (^BTCUSD) moving lower. Riot Platforms (RIOT) and Galaxy Digital Holdings (GLXY) are down more than -6%, and MARA Holdings (MARA) is down more than -5%. Also, Circle Internet Group (CRCL) is down more than -4%, Strategy (MSTR) is down more than -2%, and Coinbase Global (COIN) is down more than -1%.
JB Hunt Transport Services (JBHT) is up more than +5% to lead trucking companies higher after reporting Q2 revenue of $3.50 billion, better than the consensus of $3.25 billion. Also, ArcBest (ARCB) is up more than +5%, and Saia Inc (SAIA), XPO Inc (XPO), FedEx Freight Holding (FDXF), Old Dominion Freight Line (ODFL), and Marten Transport Ltd (MRTN) are up more than +4%. In addition, Knight-Swift Transportation Holdings (KNX) and CH Robinson Worldwide (CHRW) are up more than +3%, and United Parcel Service (UPS) is up more than +2%.
AST SpaceMobile (ASTS) is down more than -14% after announcing its intent to offer $1.0 billion of convertible senior notes due 2034 in a private offering.
GE Aerospace (GE) is down more than -4% despite the company raising its adjusted earnings per share guidance for the full year after TD Cowen said the raise “may not be good enough.”
United Airlines Holdings (UAL) is down more than -1% after forecasting full-year adjusted EPS of $9 to $11, the midpoint below the consensus of $10.51.
Abbott Laboratories (ABT) is up more than +11% to lead gainers in the S&P 500 after raising its full-year adjusted EPS forecast to $5.45 to $5.60 from a previous forecast of $5.38 to $5.58, the midpoint above the consensus of $5.48.
UnitedHealth Group (UNH) is up more than +4% to lead gainers in the Dow Jones Industrials after reporting Q2 adjusted EPS of $6.38, well above the consensus of $4.89, and raising its full-year adjusted EPS estimate to $19.50 to $20.00 from a previous estimate of above $18.25.
Merck & Co (MRK) is up more than +3% after the USDA approved the company’s Lipfendra medication pill to reduce LDL cholesterol.
AeroVironment (AVAV) is up more than +3% after Raymond James upgraded the stock to outperform from neutral with a price target of $210.
Rocket Cos (RKT) is up more than +1% after Morgan Stanley upgraded the stock to overweight from equal weight with a price target of $19.
Earnings Reports(7/16/2026)
Abbott Laboratories (ABT), Alcoa Corp (AA), Citizens Financial Group Inc (CFG), Commerce Bancshares Inc/MO (CBSH), FNB Corp/PA (FNB), General Electric Co (GE), Intuitive Surgical Inc (ISRG), Netflix Inc (NFLX), Prologis Inc (PLD), State Street Corp (STT), UnitedHealth Group Inc (UNH), US Bancorp (USB).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Mixed as Weakness in Chipmakers Weighs

The S&P 500 Index ($SPX) (SPY) today is down -0.46%, the Dow Jones Industrial Average ($DOWI) (DIA) is down -0.04%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -1.28%. September E-mini S&P futures (ESU26) are down -0.40%, and September E-mini Nasdaq futures (NQU26) are down -1.30%.
Stock indexes are under pressure today, with the Nasdaq 100 falling to a 1-week low. The weakness in chipmakers and AI-infrastructure stocks is dragging the overall market lower today. Chipmakers are sliding today on negative carryover from a -6% plunge in South Korea’s Kospi Index, which was weighed down by sharp losses in SK Hynix and Samsung Electronics. While most chipmaking-related stocks are trading lower, technology laggards such as software stocks are climbing as investors rotate into underperforming sectors.
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Today’s US economic reports were generally positive for the economy but were hawkish for Fed policy, pushing bond yields higher, with the 10-year T-note yield up +3 bp to 4.58%.
US weekly initial unemployment claims unexpectedly fell -8,000 to a 10-week low of 208,000, showing a stronger labor market than expectations of an increase to 217,000.
US Jun retail sales rose +0.2% m/m, right on expectations. However, Jun retail sales ex-autos fell -0.2% m/m, weaker than expectations of -0.1% m/m.
The US Jul Philadelphia Fed business outlook survey rose +31.1 to a 4.5-year high of 41.4, stronger than expectations of 12.5.
WTI crude oil prices (CLQ26) are up more than +1% today after the US launched fresh airstrikes on Iran and struck a sanctioned Iranian oil tanker in the Persian Gulf. Iran responded by firing upon American bases in Kuwait and Jordan, with the Jordanian government saying it intercepted eight missiles. President Trump pledged to intensify the bombardment until Iran stops attacking ships in the Strait of Hormuz and agrees to open the waterway.
The Wall Street Journal reported today that President Trump is leaning toward expanding military operations and discussed the seizure of Kharg Island, Iran’s main oil export terminal. According to RBC Capital Markets LLC, a seven-day moving average of oil flows through the Strait of Hormuz has slumped to 3.9 million bpd from 8.5 million bpd before the collapse of the ceasefire.
The outlook for strong Q2 earnings, which began this week, is a bullish factor for stocks. Forecasts compiled by Bloomberg Intelligence suggest Q2 earnings may increase by +23%, close to Q1’s blowout earnings of +30%, which was more than double the +12% analysts had expected. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2.
The markets are discounting a 12% chance of a +25 bp rate hike at the next FOMC meeting on July 28-29.
Overseas stock markets are lower today. The Euro Stoxx 50 fell to a 1-week low and is down -0.56%. China's Shanghai Composite fell to a 3.5-month low and closed down -1.85%. Japan's Nikkei-225 Stock Average closed down -2.79%.
Interest Rates
September 10-year T-notes (ZNU6) today are down -9 ticks, and the 10-year T-note yield is up +3.4 bp to 4.582%. Stronger-than-expected US economic reports today are weighing on T-note prices after weekly initial unemployment claims unexpectedly fell to a 10-week low and the Jul Philadelphia Fed business outlook survey rose more than expected to a 4.5-year high. T-notes are also under pressure from higher crude oil prices, which have raised inflation expectations.
European government bond yields are moving higher today. The 10-year German bund yield rose to a 1.75-month high of 3.164% and is up +3.9 bp to 3.161%. The 10-year UK gilt yield is up +6.2 bp to 5.000%.
UK May monthly GDP rose +0.1% m/m, stronger than expectations of no change m/m.
UK May manufacturing production unexpectedly rose +0.1% m/m, stronger than expectations of a -0.2% m/m decline.
Swaps are discounting a 6% chance of a +25 bp ECB rate hike at its next policy meeting on July 23.
US Stock Movers
Chipmakers and AI-infrastructure stocks are sliding today, weighing on the broader market. The iShares Semiconductor ETF (SOXX) is down more than -2%. Sandisk (SNDK) is down more than -7% to lead losers in the S&P 500 and Nasdaq 100, and Seagate Technology Holdings Plc (STX) is down more than -6%. Also, ARM Holdings Plc (ARM) and Western Digital (WDC) are down more than -6%, and Marvel Technology (MRVL) is down more than -5%. In addition, Broadcom (AVGO), Intel (INTC), Advanced Micro Devices (AMD), Lam Research (LRCX), Micron Technology (MU), Qualcomm (QCOM), and Texas Instruments (TXN) are down more than -3%.
Cryptocurrency-exposed stocks are sliding today with Bitcoin (^BTCUSD) down more than -1%. Riot Platforms (RIOT), Galaxy Digital Holdings (GLXY), and Circle Internet Group (CRCL) are down more than -5%, and Coinbase Global (COIN), Strategy (MSTR), and MARA Holdings (MARA) are down more than -3%.
JB Hunt Transport Services (JBHT) is up more than +6% to lead trucking companies higher after reporting Q2 revenue of $3.50 billion, better than the consensus of $3.25 billion. Also, ArcBest (ARCB) is up more than +5%, and Saia Inc (SAIA) and XPO Inc (XPO) are up more than +4%. In addition, FedEx Freight Holding (FDXF), Old Dominion Freight Line (ODFL), Knight-Swift Transportation Holdings (KNX), Marten Transport Ltd (MRTN), and CH Robinson Worldwide (CHRW) are up more than +3%, and United Parcel Service (UPS) is up more than +2%.
AST SpaceMobile (ASTS) is down more than -12% after announcing its intent to offer $1.0 billion of convertible senior notes due 2034 in a private offering.
GE Aerospace (GE) is down more than -4% despite the company raising its adjusted earnings per share guidance for the full year after TD Cowen said the raise “may not be good enough.”
United Airlines Holdings (UAL) is down more than -2% after forecasting full-year adjusted EPS of $9 to $11, the midpoint below the consensus of $10.51.
Abbott Laboratories (ABT) is up more than +13% to lead gainers in the S&P 500 after raising its full-year adjusted EPS forecast to $5.45 to $5.60 from a previous forecast of $5.38 to $5.58, the midpoint above the consensus of $5.48.
UnitedHealth Group (UNH) is up more than +7% to lead gainers in the Dow Jones Industrials after reporting Q2 adjusted EPS of $6.38, well above the consensus of $4.89, and raising its full-year adjusted EPS estimate to $19.50 to $20.00 from a previous estimate of above $18.25.
AeroVironment (AVAV) is up more than +2% after Raymond James upgraded the stock to outperform from neutral with a price target of $210.
Merck & Co (MRK) is up more than +2% after the USDA approved the company’s Lipfendra medication pill to reduce LDL cholesterol.
Rocket Cos (RKT) is up more than +2% after Morgan Stanley upgraded the stock to overweight from equal weight with a price target of $19.
Earnings Reports(7/16/2026)
Abbott Laboratories (ABT), Alcoa Corp (AA), Citizens Financial Group Inc (CFG), Commerce Bancshares Inc/MO (CBSH), FNB Corp/PA (FNB), General Electric Co (GE), Intuitive Surgical Inc (ISRG), Netflix Inc (NFLX), Prologis Inc (PLD), State Street Corp (STT), UnitedHealth Group Inc (UNH), US Bancorp (USB).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Pressured by a Renewed Selloff in Chipmakers

Key Points
Rather, it admitted errors had been baked into its reporting for previous periods.
Although the company corrected this fast, the mistakes affected investor sentiment.
In an age where drones are reshaping the modes and methods of aerial warfare, among other fields, AeroVironment (NASDAQ: AVAV) has been a red-hot stock recently.
In June, however, sentiment toward the next-generation defense company's stock cooled considerably, mainly due to accounting errors affecting two sets of financial statements. This had a lingering, deleterious effect on the stock, which ultimately lost more than 20% of its value over the month.
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A fumble with the financials
That bad news hit the headlines on June 22; AeroVironment disclosed it in a regulatory filing with the Securities and Exchange Commission (SEC). It said the audit committee of its board of directors found that its 10-Q quarterly earnings statement covering the three-month and nine-month periods ending Jan. 31, 2026, contained errors and was in need of restatement.
Getting into the weeds somewhat, the company said the fault lay in the carrying value used in its goodwill impairment calculation.
In turn, this affected the company's loss from operations, which was understated by $89.4 million for both periods. Ditto for net loss, understated by slightly less (nearly $87.3 million), plus associated basic and diluted net loss per share (by $1.75 per share for the three-month period, and $1.79 per share for the longer stretch).
Finally, total assets were overstated by that $89.4 million, and liabilities by over $2.1 million. Total stockholders' equity was overstated by the same near-$87.3 million in the net loss calculation.
The same day that the announcement was made, AeroVironment published an update to its 10-Q with the requisite corrections. Although that mitigated deeper price erosion, it was an embarrassment and a setback for a business that generally had a positive reputation.
It's fortunate, then, that its earnings report for the following quarter was made public one week later. AeroVironment's stock soared yet again, which was understandable because the company managed to more than double revenue on a year-over-year basis (to almost $642 million). Net income under generally accepted accounting principles (GAAP) also blasted higher, to $63 million from $17 million.
That revenue line, and the company's non-GAAP net income of $1.84 per share, easily topped the average analyst estimates.
The fourth quarter was the fix
Without the saving grace that was that fiscal fourth-quarter earnings release, AeroVironment surely would have seen a steeper price decline. It continues to do very well as an effective operator in the drone and defense systems space, but I'd be more bullish on its future if its financial reporting efforts were similarly top-class.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why AeroVironment Stock Dived by More Than 20% Last Month

To further strengthen its footprint in the future of naval warfare, the globe’s largest defense contractor, Lockheed Martin LMT has recently announced a definitive agreement to acquire Ultra Maritime, a specialist in anti-submarine warfare (ASW), for $3.45 billion. This acquisition marks LMT’s strategic effort to integrate Ultra Maritime's advanced sonar, torpedo defense, and autonomous sensing technologies into its Rotary and Mission Systems division, thereby enhancing its capability to deliver next-generation undersea solutions to allied forces.
Lockheed is far from an outlier in pursuing this strategy. Across the globe, defense primes are aggressively expanding their maritime and undersea capabilities through consolidation, signaling a significant shift in the industry.
For investors looking to gain exposure to this wave of naval consolidation, a diversified approach through Defense Exchange-Traded Funds (ETFs) may offer a more prudent path than betting on individual stocks. While the strategic rationale for these buyouts is clear, the integration risks and regulatory complexities inherent in defense M&A make a broader sector vehicle highly attractive.
To understand the full macro scope of this maritime shift, it is essential to look beyond Lockheed and examine the other recent power moves reshaping the naval defense landscape. It is precisely this industry-wide wave of consolidation that highlights the necessity of opting for a diversified ETF approach.
The New Arms Race Beneath the Waves
Lockheed's latest announcement to purchase Ultra Maritime comes as part of a much larger pattern of consolidation seen lately across the defense sector, with other major contractors also making significant moves to bolster their maritime portfolios. These include:
• German arms manufacturer, Rheinmetall RNMBY, which completed the takeover of Naval Vessels Lürssen (NVL) in March 2026. This consolidation establishes a dedicated German systems house for the development and manufacturing of state-of-the-art navy and coastguard vessels, as well as maritime autonomous surface systems.
• French defense contractor, Thales THLLY, has recently reached an agreement to acquire the Gorgé family’s stake in Exail Technologies, a maker of autonomous underwater drones, valuing the firm at roughly $4.5 billion. This buyout should bolster Thales' expertise in quantum sensors and underwater warfare.
• German-based RENK Group, a manufacturer of propulsion, gearboxes, transmissions, and suspension systems used in military battle tanks, acquired David Brown Defence in July 2026. This deal provides RENK with access to major "Five Eyes" naval programs, which involve 34 warships, including the Type 26 frigates and River Class destroyers.
• U.S.-based combat drone leader, AeroVironment AVAV completed a massive $4.1 billion all-stock acquisition of defense tech firm BlueHalo in May, last year. This buyout directly expanded AeroVironment's uncrewed and autonomous operations by bringing in advanced underwater robotic and subsea systems, including the Mission Specialist Defender ROV used by the U.S. Navy.
• Teledyne Technologies TDY, an American defense electronics provider, acquired the TransponderTech business from Saab AB in October 2025. TDY’s rationale behind this takeover was to strengthen its maritime technology solutions, with TransponderTech's communications and navigation solutions highly complementary and capable of expanding TDY’s marine portfolio.
This surge in M&A activity over the past year has been directly driven by escalating maritime threats in critical regions, particularly across Middle Eastern shipping lanes. The resulting vulnerability of global trade routes has forced commercial vessels to reroute along longer, costlier paths. In response, major global powers are aggressively deploying and upgrading their naval forces to secure these vital sea lanes — a macro demand shock perfectly reflected in the recent string of high-profile defense buyouts.
A New Horizon for Naval Defense: The Case for ETFs
Against the current backdrop, the outlook for the naval defense sector is exceptionally strong, with these acquisitions creating more integrated, powerful, and innovative players capable of delivering comprehensive solutions. For defense primes like Lockheed, the immediate benefit is clear — acquiring specialized technology and international market access.
However, investing directly in a company like Lockheed carries inherent risks. Execution risk is paramount; integrating a $3.45 billion acquisition is a complex process. Furthermore, defense stocks often face political and budgetary headwinds, as spending can be impacted by shifting government priorities.
Considering such single-stock oriented risks, investors seeking a safer, diversified route to capitalize on this industry-wide trend may instead go for defense ETFs that offer broad exposure to the sector, including Lockheed.
These ETFs minimize the risk associated with any single acquisition or stock, allowing investors to benefit from the overall growth of the defense industry, including the ongoing naval consolidation wave.
Defense ETFs to Consider
Considering the aforementioned discussion, a prudent investor may want to gain exposure to the following defense ETFs:
Global X Defense Tech ETF SHLD
This fund, with net assets worth $7.36 billion, offers exposure to 50 companies that build and manage cybersecurity systems, utilize artificial intelligence and big data, and build advanced military systems and hardware, such as robotics, fuel systems, and aircrafts for defense applications. RTX Corp. RTX holds the first spot in this fund, with 9.12% weightage, while LMT holds the third spot with 8.08% weightage. RNMBY holds the eighth position in this fund, with 4.09% weightage, while THLLY holds the 10th spot with 3.66% weightage.
SHLD has gained 8.6% over the past year. The fund charges 50 basis points (bps) as fees.
U.S. Defense ETF DUTY
This fund, with net assets worth $2.95 million, offers exposure to publicly traded U.S. companies that have significant exposure to defense-related industries. General Dynamics holds the first spot in this fund, with 7.63% weightage, while LMT holds the second spot with 7.38% weightage.
DUTY has rallied 8.2% over the past year. The fund charges 45 bps as fees.
iShares Defense Industrials Active ETF IDEF
This fund, with net assets worth $4.31 billion, offers exposure to 117 aerospace, cybersecurity, defense and infrastructure firms. RTX holds the first spot in this fund, with 8.48% weightage, while LMT holds the second spot with 7.08% weightage.
IDEF has surged 19.5% over the past year. The fund charges 55 bps as fees.
First Trust Indxx Aerospace & Defense ETF MISL
This fund, with net assets worth $811.8 million, offers exposure to 39 U.S. companies engaged in business activities associated with certain aerospace and defense sub-themes. GE Aerospace holds the first spot in this fund, with 8.80% weightage, while LMT holds the sixth spot with 6.39% weightage.
MISL has soared 25.9% over the past year. The fund charges 60 bps as fees.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Beyond Lockheed's $3.5B Buyout: Naval Consolidation Reshaping Defense ETFs

Netflix Inc.’s (NFLX) shares advanced 4.7% following reports that the company is not going to offer a bid for acquiring NBCUniversal anytime soon.
Shares of Alphabet Inc. (GOOGL) fell 0.4% after Google lost a 4.1 billion euros ($4.67 billion) European antitrust case.
AeroVironment Inc.’s (AVAV) shares jumped 10.7% after the defense technology company won a $500 million contract from the U.S. Army.
Shares of Apple Inc. (AAPL) surged 4.8% following a report that the global technology behemoth plans to introduce five new models of iPhone.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Company News for July 6, 2026

The S&P 500 Index ($SPX) (SPY) on Thursday closed unchanged, the Dow Jones Industrial Average ($DOWI) (DIA) closed up +1.14%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -1.61%. September E-mini S&P futures (ESU26) fell -0.25%, and September E-mini Nasdaq futures (NQU26) fell -1.82%.
Stock indexes erased early gains on Thursday and settled mixed, with the S&P 500 posting a 2-week high and the Dow Jones Industrial Average hitting a new all-time high. Chipmakers sold off for a second day on Thursday, weighing on the broader market and dragging the Nasdaq 100 sharply lower. Chipmakers opened lower on Thursday after South Korea’s Kospi Index fell more than -7% to a 3-week low, led by a plunge in SK Hynix and Samsung Electronics on renewed doubts over the sustainability of the AI buildout boom. Chipmakers also had some negative carryover from Wednesday, when Meta Platforms said it plans to sell computing power, raising questions about excess AI capacity.
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Stocks initially opened higher on Thursday and found support after a smaller-than-expected increase in US nonfarm payrolls, which bolstered speculation that the Fed will be unable to raise interest rates anytime soon. US hiring slowed sharply in June and was revised lower in May even as the unemployment rate fell to a 1-year low. Also, the smaller-than-expected decline in the May factory orders report was supportive of stocks.
US Jun nonfarm payrolls rose +57,000, weaker than expectations of +113,000, and May nonfarm payrolls were revised lower to +129,000 from the originally reported +172,000. The Jun unemployment rate unexpectedly fell -0.1 to a 1-year low of 4.2%, signaling a stronger labor market than expectations of no change at 4.3%.
US Jan average hourly earnings rose +0.3% m/m and +3.5% y/y, right on expectations.
US weekly initial unemployment claims unexpectedly fell -1,000 to 215,000, showing a stronger labor market than expectations of an increase to 218,000.
US May factory orders fell -1.3% m/m, a smaller decline than expectations of -2.0% m/m. Also, May factory orders ex-transportation rose +1.9% m/m, stronger than expectations of +1.0% m/m and the biggest increase in more than 4 years.
The outlook for strong Q2 earnings is a bullish factor for stocks. Forecasts compiled by Bloomberg Intelligence suggest Q2 earnings may increase by 23%, close to Q1’s blowout earnings of 30%, which was more than double the 12% analysts had expected. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2.
WTI crude oil (CLQ26) fell to a fresh 4.25-month low on Thursday as global supplies increase. The United Arab Emirates ramped up shipments of crude oil and condensates by 30% in June to more than 3.9 million bpd, restoring its oil exports to pre-war levels. Also, a US official said commercial shipping through the Strait of Hormuz has surged over the past few weeks, with American military support helping boost oil flows to more than 10 million bpd.
The markets are discounting an 18% chance of a +25 bp rate hike at the next FOMC meeting on July 28-29.
Overseas stock markets settled higher on Thursday. The Euro Stoxx 50 rallied to a new record high and closed up +1.24%. China's Shanghai Composite climbed to a 1-week high and closed up +0.4%. Japan's Nikkei-225 Stock Average closed up +0.59%.
Interest Rates
September 10-year T-notes (ZNU6) on Thursday settled unchanged, and the 10-year T-note yield fell -0.2 bp to 4.477%. Sep T-notes rebounded from a 1-week low on Thursday, and the 10-year T-note yield fell from a 1-week high of 4.501%. T-notes recovered from early losses on Thursday amid signs of a slowdown in the US labor market after Jun nonfarm payrolls rose less than expected and May nonfarm payrolls were revised lower. T-notes also found support on Thursday’s decline in WTI crude oil to a 4.25-month low, which lowers inflation expectations.
European government bond yields moved higher on Thursday. The 10-year German bund yield rose to a 1-week high of 2.929% and finished up +2.6 bp to 2.904%. The 10-year UK gilt yield rose +1.9 bp to 4.776%.
Italy's May unemployment rate unexpectedly fell -0.1 to a record low of 5.0% (data from 2004), showing a stronger labor market than expectations of no change at 5.1%.
BOE Governor Andrew Bailey said interest rate cuts are "off the table at the moment," as households have yet to feel the full effect of the Iran war.
Swaps are discounting a 4% chance of a +25 bp ECB rate hike at its next policy meeting on July 23.
US Stock Movers
Chipmakers and AI infrastructure stocks retreated for a second session on Thursday, weighing on the broader market. The iShares Semiconductor ETF (SOXX) fell more than -5%. SanDisk (SNDK) closed down more than -14% to lead losers in the S&P 500 and Nasdaq 100, and KLA Corp (KLAC) closed down more than -12%. Also, Marvell Technology (MRVL) closed down more than- 11%, and Lam Research (LRCX) and Seagate Technology Holdings Plc (STX) closed down more than -10%. In addition, Western Digital (WDC) closed down by more than -9%, Applied Materials (AMAT) closed down by more than -8%, and ARM Holdings Plc (ARM) closed down more than -6%. Finally, Micron Technology (MU) and Intel (INTC) closed down more than -5%, and Advanced Micro Devices (AMD), Microchip Technology (MCHP), and ASML Holding NV (ASML) closed down more than -4%.
Software stocks rose for a second day on Thursday, a positive for the overall market. Adobe (ADBE) closed up more than +4% after HSBC upgraded the stock to buy from hold with a price target of $308. Also, Autodesk (ADSK), Intuit (INTU), and Workday (WDAY) closed up more than +3%, and Palantir Technologies (PLTR) closed up more than +2% after DA Davidson upgraded the stock to buy from neutral with a price target of $175. In addition, Microsoft (MSFT) and Salesforce (CRM) closed up more than +1%.
Mining stocks rallied on Thursday amid a surge in gold and silver prices. Coeur Mining (CDE), Hecla Mining (HL), Anglogold Ashanti (AU), Barrick Mining (B), and Newmont Corp (NEM) closed up more than +4%, and Freeport McMoran (FCX) closed up +0.71%.
Jabil Inc (JBL) closed down by more than -9% after announcing plans to offer a mixed shelf of debt securities, though the size of the offering was not disclosed.
Tesla (TSLA) closed down more than -7% after the company’s Q2 deliveries beat expectations but failed to impress investors.
Genuine Parts (GPC) closed up more than +12% to lead gainers in the S&P 500 on reports that O’Reilly Automotive has put in a bid for the company.
AeroVironment (AVAV) closed up more than +10% after being awarded a US Army contract valued at up to $500 million for the procurement of commercial-unmanned aerial systems and counter small-unmanned aerial systems capabilities.
Apple (AAPL) closed up more than +4% to lead gainers in the Dow Jones Industrials after Nikkei reported the company told its suppliers it plans to produce 10 million foldable iPhones this year, up from an earlier forecast of 7 million to 8 million.
Robinhood Markets (HOOD) closed up more than +3% after Mizuho Securities raised its price target on the stock to $130 from $115.
Earnings Reports(7/6/2026)
None.
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.