Avis Budget Group, Inc., together with its subsidiaries, provides car and truck rentals, car sharing, and ancillary products and services to businesses and consumers in the Americas, Europe, the Middle East and Africa, Asia, and Australasia. It operates the Avis brand, that offers vehicle rental and other mobility solutions to the premium commercial and leisure segments of the travel industry; and the Zipcar brand, a car sharing network, as well as the Budget brand, a supplier of vehicle rental and other mobility solutions focused primarily on more value-conscious customers comprising Budget car rental, and Budget Truck, a local, and one-way truck and cargo van rental businesses with a fleet of approximately 19,000 vehicles, which are rented through a network of dealer-operated and company-operated locations that serve the light commercial and consumer sectors in the continental United States. The company also operates various other car rental brands, such as Payless, Apex, Maggiore, Morini Rent, FranceCars, AmicoBlu, Turiscar, and ACL Hire and McNicoll Hire, as well as TurisPrime and RubyCa. In addition, it offers optional insurance products and coverages, such as supplemental liability, personal accident, personal effects protection, emergency sickness protection, automobile towing protection, and cargo insurance products; fuel service options, roadside assistance services, electronic toll collection services; and access to satellite radio, mobile WiFi devices, GPS navigation, and child safety seat rentals; automobile towing equipment and other moving accessories, such as hand trucks, furniture pads, and moving supplies; and Avis Budget Group Business Intelligence, an online portal complete with rental summary dashboards, visualizations, and detailed reports. The company was formerly known as Cendant Corporation and changed its name to Avis Budget Group, Inc. in September 2006. Avis Budget Group, Inc. was founded in 1946 and is based in Parsippany, New Jersey.

Avis Budget Group, Inc.

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Sphere Entertainment Co (Symbol: SPHR), where a total volume of 3,512 contracts has been traded thus far today, a contract volume which is representative of approximately 351,200 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 45% of SPHR's average daily trading volume over the past month, of 780,910 shares. Particularly high volume was seen for the $50 strike call option expiring November 21, 2025, with 2,505 contracts trading so far today, representing approximately 250,500 underlying shares of SPHR. Below is a chart showing SPHR's trailing twelve month trading history, with the $50 strike highlighted in orange:
Avis Budget Group Inc (Symbol: CAR) saw options trading volume of 5,573 contracts, representing approximately 557,300 underlying shares or approximately 43.2% of CAR's average daily trading volume over the past month, of 1.3 million shares. Especially high volume was seen for the $125 strike put option expiring January 16, 2026, with 1,505 contracts trading so far today, representing approximately 150,500 underlying shares of CAR. Below is a chart showing CAR's trailing twelve month trading history, with the $125 strike highlighted in orange:
And Sunrun Inc (Symbol: RUN) options are showing a volume of 83,125 contracts thus far today. That number of contracts represents approximately 8.3 million underlying shares, working out to a sizeable 42.7% of RUN's average daily trading volume over the past month, of 19.5 million shares. Particularly high volume was seen for the $20 strike call option expiring October 17, 2025, with 13,359 contracts trading so far today, representing approximately 1.3 million underlying shares of RUN. Below is a chart showing RUN's trailing twelve month trading history, with the $20 strike highlighted in orange:
For the various different available expirations for SPHR options, CAR options, or RUN options, visit StockOptionsChannel.com.
Also see:
Top Ten Hedge Funds Holding UNUM
Top Ten Hedge Funds Holding EH
Top Ten Hedge Funds Holding AACB
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Tuesday Option Activity: SPHR, CAR, RUN

In recent trading, shares of Avis Budget Group Inc (Symbol: CAR) have crossed above the average analyst 12-month target price of $217.00, changing hands for $231.63/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 6 different analyst targets within the Zacks coverage universe contributing to that average for Avis Budget Group Inc, but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $168.00. And then on the other side of the spectrum one analyst has a target as high as $333.00. The standard deviation is $64.268.
But the whole reason to look at the average CAR price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with CAR crossing above that average target price of $217.00/share, investors in CAR have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $217.00 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover Avis Budget Group Inc:
Recent CAR Analyst Ratings Breakdown
»
Current
1 Month Ago
2 Month Ago
3 Month Ago
Strong buy ratings:
1
1
1
1
Buy ratings:
0
0
0
0
Hold ratings:
3
3
2
2
Sell ratings:
0
0
0
0
Strong sell ratings:
2
2
3
4
Average rating:
3.22
3.22
3.55
3.76
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on CAR — FREE.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Avis Budget Group Reaches Analyst Target Price

Key Points
One auto rental company scored a sales deal with a top online retailer. That company wasn't Avis.
Investors clearly felt it had been lapped by its traditional rival.
Shares of Avis Budget Group (NASDAQ: CAR) coughed and sputtered like a stalling car on Hump Day, shedding almost 6% of their price across the trading session. That was almost entirely due to the news that its archrival had secured one of the strongest sales channels in online retail. That 5%-plus decline was notably more pronounced than the S&P 500's (SNPINDEX: ^GSPC) modest 0.2% drop.
A rival puts on the hurt
That rival was none other than Hertz Global Holdings, which reported that it has entered into a sales agreement with Amazon Autos. Since Amazon is a near-unavoidable monster in online retail, its vehicle marketplace is an obvious and handy destination for customers searching for new rides.
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Under the terms of the arrangement, Hertz will sell its used cars through Amazon Autos. Like Avis, Hertz operates a huge fleet stuffed with all major global brands; this will work well in the new sales channel, as potential buyers should be able to find almost any make or model they like on the site.
This is only the latest development in the very long-standing race between the two rental companies, which, after all, offer essentially the same services and have similar footprints in this country (and in many markets overseas). Given that similarity, gaining any competitive edge is important, and the Hertz/Amazon deal certainly qualifies.
New channels needed
With that news, I'd expect Avis to either launch an effort to find a sales outlet or several comparable to Amazon, or intensify an existing try. This is something of a tall order, given the online retailer's size, scope, and sheer presence. We'll see what, if anything, the company will come up with.
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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 Investors Slammed the Brakes on Avis Stock Today

The S&P 500 Index ($SPX) (SPY) on Wednesday closed down by -0.24%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up by +0.04%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down by -0.58%. September E-mini S&P futures (ESU25) fell -0.29%, and September E-mini Nasdaq futures (NQU25) fell -0.64%.
Stock indexes on Wednesday extended Tuesday's slide, with the S&P 500 falling to a 1.5-week low and the Nasdaq 100 dropping to a 2-week low. The weakness in the Magnificent Seven technology companies and the selloff in chip stocks weighed on the overall market. Also, disappointing corporate news was negative for stocks, as Target fell more than -6% after forecasting a bigger-than-expected decline in full-year sales. Estee Lauder fell more than -3% after forecasting weaker-than-expected 2026 EPS.
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Walmart rose more than +1% on Wednesday to keep the Dow Jones Industrials in positive territory. Walmart settled higher on expectations that its Q2 earnings report, which will be released before Thursday's open, will show comparable-store sales coming in ahead of estimates. The consensus is that total Q2 US comparable sales ex-gasoline rose +4.21%.
US MBA mortgage applications fell -1.4% in the week ended August 15, with the purchase mortgage sub-index up +0.1% and the refinancing sub-index down -3.1%. The average 30-year fixed rate mortgage rose +1 bp to 6.68% from 6.67% in the prior week.
Wednesday's minutes of the July 29-30 FOMC meeting were slightly hawkish and negative for stocks. The minutes showed that most policymakers judged the upside risk to inflation as a greater risk than weaker employment, saying the labor market was "solid" but inflation remained "somewhat elevated."
Diplomatic talks over the war in Ukraine continue to make headway. President Trump is pushing for a summit between Presidents Putin and Zelenskiy soon, and European leaders are discussing a plan to send British and French troops to Ukraine as part of a peace agreement. The outcome of the talks could have macroeconomic implications regarding tariffs and oil prices, and could, of course, have significant consequences for European security.
The focus of the markets this week will be on any new tariff news and signs of progress toward a Ukraine peace deal. On Thursday, weekly initial unemployment claims are expected to climb by +1,000 to 225,000, and the Aug Philadelphia Fed business outlook survey is expected to fall to 6.7 from 15.9 in July. Also, the Aug S&P manufacturing PMI is expected to remain unchanged at 49.8. In addition, Jul existing home sales are expected to fall -0.3% m/m to 3.92 million. On Friday, Fed Chair Powell speaks on the economic outlook at the Federal Reserve's annual symposium at Jackson Hole, Wyoming.
Regarding tariffs, President Trump widened steel and aluminum tariffs to include more than 400 consumer items that contain the metals, such as motorcycles, auto parts, furniture components, and tableware. The change went into effect on Monday and did not exclude goods already in transit. Last Friday, Mr. Trump said, "I'll be setting tariffs next week and the week after on steel and on, I would say chips – chips and semiconductors, we'll be setting sometime next week, week after." Mr. Trump last week said he planned a 100% tariff on semiconductors but would exempt companies that move chip manufacturing to the US. Mr. Trump also mentioned 200% or 300% tariffs on chips.
In other recent tariff news, Mr. Trump last Tuesday extended the tariff truce with China for another 90 days until November. On August 6, Mr. Trump announced that he will double tariffs on US imports from India to 50% from the current 25% tariff, due to India's purchases of Russian oil. On August 5, Mr. Trump said that US tariffs on pharmaceutical imports would be announced "within the next week or so." According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced.
Federal funds futures prices are discounting the chances for a -25 bp rate cut at 84% at the September 16-17 FOMC meeting, down from 93% last Thursday. The markets are discounting the chances at 55% for a second -25 bp rate cut at the following meeting on October 28-29.
Earnings reports indicate that S&P 500 earnings for Q2 are on track to rise +9.1% y/y, much better than the pre-season expectations of +2.8% y/y and the most in four years, according to Bloomberg Intelligence. With over 93% of S&P 500 firms having reported Q2 earnings, about 83% of companies exceeded profit estimates.
Overseas stock markets on Wednesday settled mixed. The Euro Stoxx 50 closed down -0.20%. China's Shanghai Composite climbed to a new 10-year high and closed up +1.04%. Japan's Nikkei Stock 225 closed down -1.51%.
Interest Rates
September 10-year T-notes (ZNU25) on Wednesday closed up +3 ticks, and the 10-year T-note yield fell -1.5 bp to 4.291%. Sep T-notes posted modest gains on Wednesday, supported by weakness in equity markets. Also, falling inflation expectations were supportive of T-notes after the 10-year breakeven inflation rate fell to a 2-week low on Wednesday of 2.350%. T-notes garnered support after the Wall Street Journal reported that President Trump is considering firing Fed Governor Lisa Cook over allegations that she committed mortgage fraud. If Cook is fired or resigns, Mr. Trump could appoint another Fed Governor who favors his lower interest rate policies.
T-notes fell back from their best levels due to weak demand for the Treasury's $16 billion auction of 20-year T-bonds, which showed the bid-to-cover ratio of 2.54, below the 10-auction average of 2.60. Also, Wednesday's hawkish minutes of the July 29-30 FOMC meeting weighed on T-note prices.
European government bond yields on Wednesday moved lower. The 10-year German bund yield fell -3.3 bp to 2.717%. The 10-year UK gilt yield fell -6.8 bp to 4.672%.
ECB President Lagarde said the Eurozone economy is likely to see slower growth this quarter, with questions over global trade remaining despite recent trade deals with the US reducing uncertainty.
UK Jul CPI rose +3.8% y/y, stronger than expectations of +3.7% y/y and the fastest pace of increase in 1.5 years. Jul core CPI also rose +3.8% y/y, stronger than expectations of +3.7% y/y.
Swaps are discounting the chances at 7% for a -25 bp rate cut by the ECB at the September 11 policy meeting.
US Stock Movers
The Magnificent Seven stocks were under pressure on Wednesday, weighing on the broader market. Apple (AAPL), Alphabet (GOOGL), Amazon (AMZN), and Tesla (TSLA) closed down more than -1%. Also, Microsoft (MSFT) closed down -0.79%, Meta Platforms (META) closed down -0.50%, and Nvidia (NVDA) closed down -0.14%.
Weakness in chip stocks is a drag on the overall market. Intel (INTC) closed down more than -6% to lead losers in the S&P 500 and Nasdaq 100, and Micron Technology (MU) closed down more than -3%. Also, ARM Holdings Plc (ARM) closed down more than -2%, and Broadcom (AVGO), Marvell Technology (MRVL), and Lam Research (LRCX) closed down more than -1%.
James Hardie Industries Plc (JHX) closed down more than -34% after reporting its Q2 operating profit sank -29% y/y and said difficult economic conditions continue to weigh on homebuyers after recording the slowest spring season in more than twelve years.
La-Z-Boy (LZB) closed down more than -12% after reporting Q1 comparable sales fell -4% y/y versus -3% y/y, and forecast Q2 sales of $510 million-$530 million, the midpoint below the consensus of $528.5 million.
Target (TGT) closed down more than -6% after forecasting a full-year sales decline of a low single-digit percentage compared to the consensus of a -1.71% decline.
Estee Lauder (EL) closed down more than -3% after forecasting 2026 adjusted EPS of $1.90-$2.10, weaker than the consensus of $2.16.
Avis Budget Group (CAR) closed down more than -5%, CarMax (KMX) closed down more than -2%, and Carvana (CVNA) closed down more than -1% after CNBC reported that Hertz Global Holdings will start selling pre-owned cars on Amazon Autos.
Analog Devices (ADI) closed up more than +6% to lead gainers in the S&P 500 and Nasdaq 100 after reporting Q3 revenue of $2.88 billion, better than the consensus of $2.76 billion.
Hertz Global Holdings (HTZ) closed up more than +6% after CNBC reported the company will start selling pre-owned cars on Amazon Autos.
Regeneron Pharmaceuticals (REGN) closed up more than +3% after it said it expects action by the FDA on its multiple regulatory submissions for its Eylea HD product by Q4 of 2025, which is sooner than anticipated, according to BMO Capital Markets.
TJX Cos (TJX) closed up more than +2% after reporting Q3 comparable sales rose +4%, stronger than the consensus of +3.09%, and boosting its 2026 comparable sales forecast to +3% from a previous estimate of +2% to 3%, better than the consensus of +2.87%.
Dayforce (DAY) closed up more than +2% on reports that the company is in advanced talks with Thoma Bravo to be acquired for $70 a share.
Jack Henry & Associates (JKHY) closed up more than +2% after reporting Q4 processing revenue of $264.1 million, above the consensus of $255.3 million.
McCormick & Co. (MKC) closed up more than +1% after JPMorgan Chase double upgraded the stock to overweight from underweight with a price target of $83.
Earnings Reports(8/21/2025)
Intuit Inc (INTU), Louisiana-Pacific Corp (LPX), Ross Stores Inc (ROST), Walmart Inc (WMT), Workday Inc (WDAY), Zoom Communications Inc (ZM).
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 Finish Mostly Lower on Tech Stock Weakness

The S&P 500 Index ($SPX) (SPY) today is down by -1.01%, the Dow Jones Industrials Index ($DOWI) (DIA) is down by -0.27%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down by -1.75%. September E-mini S&P futures (ESU25) are down -1.06%, and September E-mini Nasdaq futures (NQU25) are down -1.80%.
Stock indexes today have extended Tuesday’s losses, with the S&P 500 falling to a 1.5-week low and the Nasdaq 100 dropping to a 2-week low. The weakness in the Magnificent Seven technology companies and a selloff in chip stocks are weighing on the overall market. Also, disappointing corporate news is negative for stocks, with Target down more than -7% after forecasting a bigger-than-expected decline in full-year sales. Estee Lauder is down more than -5% after forecasting weaker-than-expected 2026 EPS.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
US MBA mortgage applications fell -1.4% in the week ended August 15, with the purchase mortgage sub-index up +0.1% and the refinancing sub-index down -3.1%. The average 30-year fixed rate mortgage rose +1 bp to 6.68% from 6.67% in the prior week.
Diplomatic talks over the war in Ukraine continue to make headway. President Trump is pushing for a summit between Presidents Putin and Zelenskiy soon, and European leaders are discussing a plan to send British and French troops to Ukraine as part of a peace agreement. The outcome of the talks could have macroeconomic implications regarding tariffs and oil prices, and could, of course, have significant consequences for European security.
The focus of the markets this week will be on any new tariff news and signs of progress toward a Ukraine peace deal. Later today, the minutes of the July 29-30 FOMC meeting will be released. On Thursday, weekly initial unemployment claims are expected to climb by +1,000 to 225,000, and the Aug Philadelphia Fed business outlook survey is expected to fall to 6.7 from 15.9 in July. Also, the Aug S&P manufacturing PMI is expected to remain unchanged at 49.8. In addition, Jul existing home sales are expected to fall -0.3% m/m to 3.92 million. On Friday, Fed Chair Powell speaks on the economic outlook at the Federal Reserve’s annual symposium at Jackson Hole, Wyoming.
Regarding tariffs, President Trump widened steel and aluminum tariffs to include more than 400 consumer items that contain the metals, such as motorcycles, auto parts, furniture components, and tableware. The change went into effect on Monday and did not exclude goods already in transit. Last Friday, Mr. Trump said, “I’ll be setting tariffs next week and the week after on steel and on, I would say chips – chips and semiconductors, we’ll be setting sometime next week, week after.” Mr. Trump last week said he planned a 100% tariff on semiconductors but would exempt companies that move chip manufacturing to the US. Mr. Trump also mentioned 200% or 300% tariffs on chips.
In other recent tariff news, Mr. Trump last Tuesday extended the tariff truce with China for another 90 days until November. On August 6, Mr. Trump announced that he will double tariffs on US imports from India to 50% from the current 25% tariff, due to India’s purchases of Russian oil. On August 5, Mr. Trump said that US tariffs on pharmaceutical imports would be announced “within the next week or so.” According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced.
Federal funds futures prices are discounting the chances for a -25 bp rate cut at 84% at the September 16-17 FOMC meeting, down from 93% last Thursday. The markets are discounting the chances at 55% for a second -25 bp rate cut at the following meeting on October 28-29.
Earnings reports indicate that S&P 500 earnings for Q2 are on track to rise +9.1% y/y, much better than the pre-season expectations of +2.8% y/y and the most in four years, according to Bloomberg Intelligence. With over 92% of S&P 500 firms having reported Q2 earnings, about 82% of companies exceeded profit estimates.
Overseas stock markets today are mixed. The Euro Stoxx 50 is down -0.22%. China’s Shanghai Composite climbed to a new 10-year high and closed up +1.04%. Japan’s Nikkei Stock 225 closed down -1.51%.
Interest Rates
September 10-year T-notes (ZNU25) today are up +6 ticks, and the 10-year T-note yield is down -2.5 bp to 4.281%. Sep T-notes are modestly higher today, supported by weakness in equity markets. Also, strength in European government bonds is providing carryover support to T-notes. T-notes remained higher after the Wall Street Journal reported that President Trump is considering firing Fed Governor Lisa Cook over allegations that she committed mortgage fraud. If Cook is fired or resigns, Mr. Trump could appoint another Fed Governor who favors his lower interest rate policies.
Supply pressures are limiting gains in T-notes as the Treasury will auction $16 billion of 20-year T-bonds later today. Also, concerns that last week’s bearish US July CPI and PPI reports could keep the Fed from cutting interest rates at next month’s FOMC meeting are weighing on T-notes.
European government bond yields today are moving lower. The 10-year German bund yield is down -3.4 bp to 2.716%. The 10-year UK gilt yield is down -6.0 bp to 4.680%.
ECB President Lagarde said the Eurozone economy is likely to see slower growth this quarter, with questions over global trade remaining despite recent trade deals with the US reducing uncertainty.
UK Jul CPI rose +3.8% y/y, stronger than expectations of +3.7% y/y and the fastest pace of increase in 1.5 years. Jul core CPI also rose +3.8% y/y, stronger than expectations of +3.7% y/y.
Swaps are discounting the chances at 7% for a -25 bp rate cut by the ECB at the September 11 policy meeting.
US Stock Movers
The Magnificent Seven stocks are under pressure today, weighing on the broader market. Tesla (TSLA) is down more than -4% and Nvidia (NVDA) is down more than -3%. Also, Meta Platforms (META), Alphabet (GOOGL), and Amazon (AMZN) are down more than -2%, and Apple (AAPL) is down more than -1%. Microsoft (MSFT) is down -0.33%.
Weakness in chip stocks is a drag on the overall market. Intel (INTC) is down more than -7% and Micron Technology (MU) is down more than -6%. Also, Advanced Micro Devices (AMD), ARM Holdings Plc (ARM), and Marvell Technology (MRVL) are down more than -4%. In addition, Broadcom (AVGO) is down more than -3%, and Lam Research (LRCX), Applied Materials (AMAT), ON Semiconductor (ON), and GlobalFoundries (GFS) are down more than -2%.
James Hardie Industries Plc (JHX) is down more than -36% after reporting its Q2 operating profit sank -29% y/y and said difficult economic conditions continue to weigh on homebuyers after recording the slowest spring season in more than twelve years.
La-Z-Boy (LZB) is down more than -13% after reporting Q1 comparable sales fell -4% y/y versus -3% y/y, and forecast Q2 sales of $510 million-$530 million, the midpoint below the consensus of $528.5 million.
Target (TGT) is down more than -7% after forecasting a full-year sales decline of a low single-digit percentage compared to the consensus of a -1.71% decline.
Estee Lauder (EL) is down more than -5% after forecasting 2026 adjusted EPS of $1.90-$2.10, weaker than the consensus of $2.16.
Carvana (CVNA) and Avis Budget Group (CAR) are down more than -5%, and CarMax (KMX) is down more than -1% after CNBC reported that Hertz Global Holdings will start selling pre-owned cars on Amazon Autos.
TJX Cos (TJX) is up more than +4% to lead gainers in the S&P 500 after reporting Q3 comparable sales rose +4%, stronger than the consensus of +3.09%, and boosting its 2026 comparable sales forecast to +3% from a previous estimate of +2% to 3%, better than the consensus of +2.87%.
Hertz Global Holdings (HTZ) is up more than +5% after CNBC reported the company will start selling pre-owned cars on Amazon Autos.
Dayforce (DAY) is up more than +2% on reports that the company is in advanced talks with Thoma Bravo to be acquired for $70 a share.
Analog Devices (ADI) is up more than +2% to lead gainers in the Nasdaq 100 after reporting Q3 revenue of $2.88 billion, better than the consensus of $2.76 billion.
Jack Henry & Associates (JKHY) is up more than +2% after reporting Q4 processing revenue of $264.1 million, above the consensus of $255.3 million.
McCormick & Co. (MKC) is up more than +1% after JPMorgan Chase double upgraded the stock to overweight from underweight with a price target of $83.
Lowe’s (LOW) is up more than +1% after acquiring Foundation Building Materials for about $8.8 billion as it expands beyond home improvement supplies.
Earnings Reports(8/20/2025)
Analog Devices Inc (ADI), Coty Inc (COTY), Estee Lauder Cos Inc/The (EL), Lowe’s Cos Inc (LOW), Nordson Corp (NDSN), Target Corp (TGT), TJX Cos Inc/The (TJX).
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.

Stock Losses Accelerate on a Rout in Tech Stocks

The S&P 500 Index ($SPX) (SPY) today is down by -0.30%, the Dow Jones Industrials Index ($DOWI) (DIA) is down by -0.12%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down by -0.67%. September E-mini S&P futures (ESU25) are down -0.35%, and September E-mini Nasdaq futures (NQU25) are down -0.71%.
Stock indexes today extended Tuesday’s losses, with the S&P 500 falling to a 1-week low and the Nasdaq 100 dropping to a 2-week low. The weakness in the Magnificent Seven technology companies and losses in chip makers are weighing on the overall market. Also, disappointing corporate news is negative for stocks, with Target down more than 8% after forecasting a bigger-than-expected decline in full-year sales. Estee Lauder is down more than -3% after forecasting weaker-than-expected 2026 EPS.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
US MBA mortgage applications fell -1.4% in the week ended August 15, with the purchase mortgage sub-index up +0.1% and the refinancing sub-index down -3.1%. The average 30-year fixed rate mortgage rose +1 bp to 6.68% from 6.67% in the prior week.
Diplomatic talks over the war in Ukraine continue to make headway. President Trump is pushing for a summit between Presidents Putin and Zelenskiy soon, and European leaders are discussing a plan to send British and French troops to Ukraine as part of a peace agreement. The outcome of the talks could have macroeconomic implications regarding tariffs and oil prices, and could, of course, have significant consequences for European security.
The focus of the markets this week will be on any new tariff news and signs of progress toward a Ukraine peace deal. On Wednesday, the minutes of the July 29-30 FOMC meeting will be released. On Thursday, weekly initial unemployment claims are expected to climb by +1,000 to 225,000, and the Aug Philadelphia Fed business outlook survey is expected to fall to 6.7 from 15.9 in July. Also, the Aug S&P manufacturing PMI is expected to remain unchanged at 49.8. In addition, Jul existing home sales are expected to fall -0.3% m/m to 3.92 million. On Friday, Fed Chair Powell speaks on the economic outlook at the Federal Reserve’s annual symposium at Jackson Hole, Wyoming.
Regarding tariffs, President Trump widened steel and aluminum tariffs to include more than 400 consumer items that contain the metals, such as motorcycles, auto parts, furniture components, and tableware. The change went into effect on Monday and did not exclude goods already in transit. Last Friday, Mr. Trump said, “I’ll be setting tariffs next week and the week after on steel and on, I would say chips – chips and semiconductors, we’ll be setting sometime next week, week after.” Mr. Trump last week said he planned a 100% tariff on semiconductors but would exempt companies that move chip manufacturing to the US. Mr. Trump also mentioned 200% or 300% tariffs on chips.
In other recent tariff news, Mr. Trump last Tuesday extended the tariff truce with China for another 90 days until November. On August 6, Mr. Trump announced that he will double tariffs on US imports from India to 50% from the current 25% tariff, due to India’s purchases of Russian oil. On August 5, Mr. Trump said that US tariffs on pharmaceutical imports would be announced “within the next week or so.” According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced.
Federal funds futures prices are discounting the chances for a -25 bp rate cut at 84% at the September 16-17 FOMC meeting, down from 93% last Thursday. The markets are discounting the chances at 55% for a second -25 bp rate cut at the following meeting on October 28-29.
Earnings reports indicate that S&P 500 earnings for Q2 are on track to rise +9.1% y/y, much better than the pre-season expectations of +2.8% y/y and the most in four years, according to Bloomberg Intelligence. With over 92% of S&P 500 firms having reported Q2 earnings, about 82% of companies exceeded profit estimates.
Overseas stock markets today are mixed. The Euro Stoxx 50 is down -0.09%. China’s Shanghai Composite climbed to a new 10-year high and closed up +1.04%. Japan’s Nikkei Stock 225 closed down -1.51%.
Interest Rates
September 10-year T-notes (ZNU25) today are up +2 ticks, and the 10-year T-note yield is down -0.6 bp to 4.300%. Sep T-notes are modestly higher today, supported by weakness in equity markets. Also, strength in European government bonds is providing carryover support to T-notes.
Supply pressures are limiting gains in T-notes as the Treasury will auction $16 billion of 20-year T-bonds later today. Also, concerns that last week’s bearish US July CPI and PPI reports could keep the Fed from cutting interest rates at next month’s FOMC meeting are weighing on T-notes.
European government bond yields today are moving lower. The 10-year German bund yield is down -1.7 bp to 2.734%. The 10-year UK gilt yield is down -4.4 bp to 4.696%.
ECB President Lagarde said the Eurozone economy is likely to see slower growth this quarter, with questions over global trade remaining despite recent trade deals with the US reducing uncertainty.
UK Jul CPI rose +3.8% y/y, stronger than expectations of +3.7% y/y and the fastest pace of increase in 1.5 years. Jul core CPI also rose +3.8% y/y, stronger than expectations of +3.7% y/y.
Swaps are discounting the chances at 7% for a -25 bp rate cut by the ECB at the September 11 policy meeting.
US Stock Movers
The Magnificent Seven stocks are under pressure today, weighing on the broader market. Nvidia (NVDA), Tesla (TSLA), and Meta Platforms (META) are down more than -2%. Also, Alphabet (GOOGL), Amazon (AMZN), and Apple (AAPL) are down more than -1%. Microsoft (MSFT) is down 0.05%.
Weakness in chip stocks is a drag on the overall market. Intel (INTC) is down more than -6% to lead losers in the Nasdaq 100. Also, Micron Technology (MU) is down more than -3%, and Advanced Micro Devices (AMD) and ARM Holdings Plc (ARM) are down more than -2%. In addition, Broadcom (AVGO), Applied Materials (AMAT), and Marvell Technology (MRVL) are down more than -1%.
James Hardie Industries Plc (JHX) is down more than -33% after reporting its Q2 operating profit sank -29% y/y and said difficult economic conditions continue to weigh on homebuyers after recording the slowest spring season in more than twelve years.
La-Z-Boy (LZB) is down more than -13% after reporting Q1 comparable sales fell -4% y/y versus -3% y/y, and forecast Q2 sales of $510 million-$530 million, the midpoint below the consensus of $528.5 million.
Target (TGT) is down more than -8% to lead losers in the S&P 500 after forecasting a full-year sales decline of low-single digit percentage compared to the consensus of a -1.71% decline.
Estee Lauder (EL) is down more than -3% after forecasting 2026 adjusted EPS of $1.90-$2.10, weaker than the consensus of $2.16.
Carvana (CVNA) and Avis Budget Group (CAR) are down more than -4%, and CarMax (KMX) is down more than -1% after CNBC reported that Hertz Global Holdings will start selling pre-owned cars on Amazon Autos.
TJX Cos (TJX) is up more than +5% to lead gainers in the S&P 500 after reporting Q3 comparable sales rose +4%, stronger than the consensus of +3.09%, and boosting its 2026 comparable sales forecast to +3% from a previous estimate of +2% to 3%, better than the consensus of +2.87%.
Hertz Global Holdings (HTZ) is up more than +5% after CNBC reported the company will start selling pre-owned cars on Amazon Autos.
Dayforce (DAY) is up more than +3% on reports that the company is in advanced talks with Thoma Bravo to be acquired for $70 a share.
Analog Devices (ADI) is up more than +2% to lead gainers in the Nasdaq 100 after reporting Q3 revenue of $2.88 billion, better than the consensus of $2.76 billion.
Nubank (NU) is up more than +2% after Citigroup double upgraded the stock to buy from sell with a price target of $18.
McCormick & Co. (MKC) is up more than +2% after JPMorgan Chase double upgraded the stock to overweight from underweight with a price target of $83.
Lowe’s (LOW) is up more than +1% after acquiring Foundation Building Materials for about $8.8 billion as it expands beyond home improvement supplies.
Earnings Reports(8/20/2025)
Analog Devices Inc (ADI), Coty Inc (COTY), Estee Lauder Cos Inc/The (EL), Lowe’s Cos Inc (LOW), Nordson Corp (NDSN), Target Corp (TGT), TJX Cos Inc/The (TJX).
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.
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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.

Tech Weakness and Negative Corporate News Weigh on Stocks

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Avis Budget Group Inc (Symbol: CAR), where a total volume of 9,360 contracts has been traded thus far today, a contract volume which is representative of approximately 936,000 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 76.3% of CAR's average daily trading volume over the past month, of 1.2 million shares. Particularly high volume was seen for the $175 strike call option expiring January 16, 2026, with 4,619 contracts trading so far today, representing approximately 461,900 underlying shares of CAR. Below is a chart showing CAR's trailing twelve month trading history, with the $175 strike highlighted in orange:
Apple Inc (Symbol: AAPL) saw options trading volume of 480,216 contracts, representing approximately 48.0 million underlying shares or approximately 75.1% of AAPL's average daily trading volume over the past month, of 63.9 million shares. Especially high volume was seen for the $235 strike call option expiring August 22, 2025, with 32,576 contracts trading so far today, representing approximately 3.3 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $235 strike highlighted in orange:
And Applied Digital Corporation (Symbol: APLD) options are showing a volume of 207,060 contracts thus far today. That number of contracts represents approximately 20.7 million underlying shares, working out to a sizeable 63.3% of APLD's average daily trading volume over the past month, of 32.7 million shares. Especially high volume was seen for the $16 strike call option expiring August 22, 2025, with 16,055 contracts trading so far today, representing approximately 1.6 million underlying shares of APLD. Below is a chart showing APLD's trailing twelve month trading history, with the $16 strike highlighted in orange:
For the various different available expirations for CAR options, AAPL options, or APLD options, visit StockOptionsChannel.com.
Top 10 Hedge Funds Holding CCI
Funds Holding INPH
XLS Insider Buying
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Monday Option Activity: CAR, AAPL, APLD

Below is Validea's guru fundamental report for AVIS BUDGET GROUP INC (CAR). Of the 22 guru strategies we follow, CAR rates highest using our Shareholder Yield Investor model based on the published strategy of Meb Faber. This strategy looks for companies returning cash to shareholders via dividends, buybacks and debt paydown.
AVIS BUDGET GROUP INC (CAR) is a mid-cap value stock in the Rental & Leasing industry. The rating using this strategy is 85% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of AVIS BUDGET GROUP INC
More Information on Meb Faber
About Meb Faber: Meb Faber is the founder of Cambria Investments. His research has covered a wide spectrum of the investment world, including topics like shareholder yield, trend following, global asset allocation and home country bias. His shareholder yield strategy, which is based on his book "Shareholder Yield" and forms the basis for an ETF of the same name, looks for companies that are focused on creating value for shareholders by returning cash to them in the form of dividends, share buybacks and debt paydown. Meb is also the author of 4 other books and numerous white papers on investing related topics.
Additional Research Links
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

CAR Quantitative Stock Analysis

The S&P 500 Index ($SPX) (SPY) Friday closed down -1.60%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down -1.23%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -1.96%. September E-mini S&P futures (ESU25) fell -1.67%, and September E-mini Nasdaq futures (NQU25) fell -2.03%.
Stock indexes plunged on Friday, with the S&P 500 and Nasdaq 100 sliding to 2-week lows and the Dow Jones Industrials falling to a 5-week low. Stocks retreated on Friday due to concerns that tariffs will curb economic growth, and the decline accelerated after weaker-than-expected US reports on monthly payrolls and manufacturing activity heightened economic concerns and sparked risk-off sentiment in asset markets.
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Late Thursday, Mr. Trump announced a slew of new tariffs, including a 10% global minimum and 15% or higher tariffs for countries with trade surpluses with the US. Also, Amazon.com dropped more than -8% to weigh on technology stocks after it projected weaker-than-expected Q3 operating income.
Signs of weakness in the US economy also weighed on stocks after the monthly July payroll report showed US job growth slowed more than expected, and the Jul ISM manufacturing index showed manufacturing activity unexpectedly contracted the most in 9 months.
Stocks fell to their lows Friday on heightened geopolitical tension between the US and Russia after President Trump said the US was moving two nuclear submarines to "appropriate regions" in response to what he called "highly provocative statements" from former Russian President Medvedev.
However, on the positive side, bond yields sank on the weaker-than-expected US economic reports. The 10-year T-note yield fell to a 1-month low of 4.20% as the weaker-than-expected economic reports boosted the chances of a Fed rate cut at the September FOMC meeting to 93% from 40% before the reports were released.
Jul nonfarm payrolls rose by +73,000, weaker than expectations of +104,000, and Jun nonfarm payrolls were revised sharply downward to +14,000 from the previously reported +147,000. The US Jul unemployment rate rose +0.1 to 4.2%, right on expectations.
Jul average hourly earnings rose +3.9% y/y, stronger than expectations of +3.8% y/y.
The US Jul ISM manufacturing index unexpectedly fell -1.0 to 48.0, weaker than expectations of an increase to 49.5 and the steepest pace of contraction in 9 months.
US Jun construction spending unexpectedly fell -0.4% m/m, weaker than expectations of no change.
The University of Michigan US Jul consumer sentiment index was revised lower to 61.7 from 61.8, weaker than expectations of an upward revision to 62.0.
Atlanta Fed President Raphael Bostic said inflation is still further from target than employment, and he's not ready to increase projections for 2025 interest rate cuts.
Cleveland Fed President Beth Hammack said the US labor market still appears healthy, though today's fresh job numbers constituted a "disappointing report to be sure."
In the latest tariff news, President Trump late Thursday raised tariffs on some Canadian goods to 35% from 25% and announced a 10% global minimum and 15% or higher tariffs for countries with trade surpluses with the US, effective after midnight on August 7. According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced.
Federal funds futures prices are discounting the chances for a -25 bp rate cut at 93% at the September 16-17 FOMC meeting and 73% at the following meeting on October 28-29.
This week was the earnings season's busiest week, with 38% of the stocks in the S&P 500 reporting quarterly earnings, double the amount reported last week. Early results show that S&P 500 earnings are on track to rise +4.5% for the second quarter, better than the pre-season expectations of +2.8% y/y, according to Bloomberg Intelligence. With over 55% of S&P 500 firms having reported, around 82% exceeded profit estimates.
Overseas stock markets on Friday settled lower. The Euro Stoxx 50 plunged to a 3-month low and closed down sharply by -2.90%. China's Shanghai Composite slid to a 1.50-week low and closed down -0.37%. Japan's Nikkei Stock 225 closed down -0.66%.
Interest Rates
September 10-year T-notes (ZNU25) Friday closed up sharply by 1-4/32 points. The 10-year T-note yield fell -15.8 bp to 4.216%. Sep T-notes recovered from overnight losses and rallied to a 1-month high Friday, and the 10-year T-note yield fell to a 1-month low of 4.200%. T-notes rallied sharply Friday on signs of weakness in the US labor market after Jul nonfarm payrolls rose less than expected and Jun was revised sharply lower. Also, the weakness in US manufacturing activity was bullish for T-notes after the Jul ISM manufacturing index unexpectedly contracted by the most in 9 months. Falling inflation expectations also gave T-note prices a lift after the 10-year breakeven inflation rate fell to a 4-week low on Friday of 2.316%. The weak payrolls and ISM manufacturing reports boosted the chance of a Fed rate cut at next month's FOMC meeting to 93% from 40% before the reports.
T-notes initially moved lower early Friday on inflation risks following President Trump's announcement of new tariffs on all countries with trade surpluses against the US. Also, Friday's payroll report, which showed US Jul average hourly earnings rose more than expected, is hawkish for Fed policy.
European government bond yields on Friday moved lower. The 10-year German bund yield fell to a 1-week low of 2.639% and finished down -1.6 bp to 2.679%. The 10-year UK gilt yield fell to a 4-week low of 4.509% and finished down -4.1 bp to 4.528%.
Eurozone Jul CPI rose +2.0% y/y, stronger than expectations of +1.9% y/y. Jul core CPI rose +2.3% y/y, right on expectations.
The German Jul S&P manufacturing PMI was revised downward by 0.1 to 49.1 from the previously reported 49.2.
The UK Jul S&P manufacturing PMI was revised downward by -0.2 to 48.0 from the previously reported 48.2.
Swaps are discounting the chances at 14% for a -25 bp rate cut by the ECB at the September 11 policy meeting.
US Stock Movers
Amazon.com (AMZN) closed down more than -8% to lead losers in the Dow Jones Industrials and Nasdaq 100 after forecasting Q3 operating income of $15.5 billion-$20.5 billion, the midpoint below the consensus of $19.42 billion.
Chip stocks are under pressure today, weighing on the overall market. Marvell Technology (MRVL) closed down more than -6% and Micron Technology (MU) closed down more than -4%. Also, Nvidia (NVDA), Advanced Micro Devices (AMD), GlobalFoundries (GFS), Intel (INTC), and ARM Holdings Plc (ARM) closed down more than -2%. In addition, Broadcom (AVGO), Microchip Technology (MCHP), and NXP Semiconductors NV (NXPI) closed down more than -1%.
Fluor (FLR) closed down more than -27% after reporting Q2 adjusted EPS of 43 cents, weaker than the consensus of 56 cents, and cutting its full-year adjusted EPS forecast to $1.95-$2.15 from a previous estimate of $2.25-$2.75, well below the consensus of $2.53.
Eastman Chemical (EMN) closed down more than -19% to lead losers in the S&P 500 after reporting Q2 adjusted EPS of $1.60, weaker than the consensus of $1.74.
Coinbase Global (COIN) closed down more than -16% after reporting Q2 total revenue of $1.50 billion, below the consensus of $1.59 billion.
WW Grainger (GWW) closed down more than -10% after reporting Q2 adjusted EPS of $9.97, below the consensus of $10.06, and cutting its full-year adjusted EPS forecast to $38.50-$40.25 from a previous forecast of $39.00-$41.50.
Moderna (MRNA) closed down more than -6% after narrowing its full-year revenue forecast to $1.5 billion to $2.2 billion from a previous forecast of $1.5 billion to $2.5 billion, weaker than the consensus of $2.07 billion.
Avis Budget Group (CAR) closed down more than -3% after Goldman Sachs downgraded the stock to sell from neutral with a price target of $105.
Reddit (RDDT) closed up more than +17% after reporting Q2 revenue of $499.6 million, stronger than the consensus of $425.3 million, and forecasting Q3 revenue of $535 million-$545 million, well above the consensus of $472.7 million.
Homebuilding stocks rallied Friday after the 10-year T-note yield fell to a 1-month low, a supportive factor for housing demand. DR Horton (DHI) closed up more than +5%, Lennar (LEN) and PulteGroup (PHM) closed up more than +3%, and Toll Brothers (TOL) closed up more than +2%.
Monolithic Power Systems (MPWR) closed up more than +10% to lead gainers in the S&P 500 after reporting Q2 adjusted EPS of $4.21, stronger than the consensus of $4.12.
Kimberly-Clark (KMB) closed up more than +4% after reporting Q2 adjusted EPS of $1.92, above the consensus of $1.68.
ResMed (RMD) closed up more than 2% after reporting Q4 adjusted EPS of $2.55, better than the consensus of $2.49.
Eli Lilly (LLY) closed up more than +2% after the Washington Post reported that the US government plans to experiment with covering weight-loss drugs for federal health programs.
Earnings Reports (8/4/2025)
Axon Enterprise Inc (AXON), Coterra Energy Inc (CTRA), Diamondback Energy Inc (FANG), Equity Residential (EQR), IDEXX Laboratories Inc (IDXX), Loews Corp (L), ON Semiconductor Corp (ON), ONEOK Inc (OKE), Palantir Technologies Inc (PLTR), SBA Communications Corp (SBAC), Simon Property Group Inc (SPG), Tyson Foods Inc (TSN), Vertex Pharmaceuticals Inc (VRTX), Waters Corp (WAT), Williams Cos Inc/The (WMB).
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 Sharply Lower on Economic Risks

The S&P 500 Index ($SPX) (SPY) today is down -1.60%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -1.35%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -1.77%. September E-mini S&P futures (ESU25) are down -1.67%, and September E-mini Nasdaq futures (NQU25) are down -1.87%.
Stock indexes are sharply lower today, with the S&P 500 and Nasdaq 100 falling to 2-week lows and the Dow Jones Industrials falling to a 5-week low. Stocks are slumping today after President Trump's sweeping import tariffs raised concern about the outlook for global economic growth. Late Thursday, Mr. Trump announced a slew of new tariffs, including a 10% global minimum and 15% or higher tariffs for countries with trade surpluses with the US. Also, Amazon.com is down more than -7% to weigh on technology stocks after it projected weaker-than-expected Q3 operating income.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Stocks also tumbled today on signs of weakness in the US economy after the monthly July payroll report showed US job growth slowed more than expected, and the Jul ISM manufacturing index showed manufacturing activity unexpectedly contracted the most in 9 months.
However, on the positive side, bond yields sank on the weaker-than-expected US economic reports. The 10-year T-note yield fell to a 1-month low of 4.224% as the weaker-than-expected economic reports boosted the chances of a Fed rate cut at the September FOMC meeting to 84% from 40% before the reports were released.
Jul nonfarm payrolls rose by +73,000, weaker than expectations of +104,000, and Jun nonfarm payrolls were revised sharply downward to +14,000 from the previously reported +147,000. The US Jul unemployment rate rose +0.1 to 4.2%, right on expectations.
Jul average hourly earnings rose +3.9% y/y, stronger than expectations of +3.8% y/y.
The US Jul ISM manufacturing index unexpectedly fell -1.0 to 48.0, weaker than expectations of an increase to 49.5 and the steepest pace of contraction in 9 months.
US Jun construction spending unexpectedly fell -0.4% m/m, weaker than expectations of no change.
The University of Michigan US Jul consumer sentiment index was revised lower to 61.7 from 61.8, weaker than expectations of an upward revision to 62.0.
Atlanta Fed President Raphael Bostic said inflation is still further from target than employment, and he's not ready to increase projections for 2025 interest rate cuts.
Cleveland Fed President Beth Hammack said the US labor market still appears healthy, though today's fresh job numbers constituted a "disappointing report to be sure."
In the latest tariff news, President Trump late Thursday raised tariffs on some Canadian goods to 35% from 25% and announced a 10% global minimum and 15% or higher tariffs for countries with trade surpluses with the US, effective after midnight on August 7. According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced.
Federal funds futures prices are discounting the chances for a -25 bp rate cut at 85% at the September 16-17 FOMC meeting and 68% at the following meeting on October 28-29.
This week was the earnings season's busiest week, with 38% of the stocks in the S&P 500 reporting quarterly earnings, double the amount reported last week. The earnings results of Magnificent Seven members will be front and center, with Apple and Amazon.com reporting after today's closing. Early results show that S&P 500 earnings are on track to rise +4.5% for the second quarter, better than the pre-season expectations of +2.8% y/y, according to Bloomberg Intelligence. With over 55% of S&P 500 firms having reported, around 82% exceeded profit estimates.
Overseas stock markets today are lower. The Euro Stoxx 50 plunged to a 3-month low and is down sharply by -2.80%. China's Shanghai Composite slid to a 1.50-week low and closed down -0.37%. Japan's Nikkei Stock 225 closed down -0.66%.
Interest Rates
September 10-year T-notes (ZNU25) today are up +29 ticks. The 10-year T-note yield is down -12.9 bp to 4.245%. Sep T-notes recovered from overnight losses and rallied to a 1-month high today, and the 10-year T-note yield fell to a 1-month low of 4.224%. T-notes rallied sharply today on signs of weakness in the US labor market after Jul nonfarm payrolls rose less than expected and Jun was revised sharply lower. T-notes raced to their highs after the Jul ISM manufacturing index unexpectedly contracted by the most in 9 months. The weak payrolls and ISM manufacturing reports boosted the chance of a Fed rate cut at next month's FOMC meeting to 85% from 40% before the report.
T-notes initially moved lower today on inflation risks following President Trump's announcement of new tariffs on all countries with trade surpluses against the US. Also, today's payroll report, which showed US Jul average hourly earnings rose more than expected, is hawkish for Fed policy.
European government bond yields today are moving lower. The 10-year German bund yield fell to a 1-week low of 2.639% and is down -2.5 bp to 2.670%. The 10-year UK gilt yield fell to a 4-week low of 4.509% and is down -3.4 bp to 4.534%.
Eurozone Jul CPI rose +2.0% y/y, stronger than expectations of +1.9% y/y. Jul core CPI rose +2.3% y/y, right on expectations.
The German Jul S&P manufacturing PMI was revised downward by 0.1 to 49.1 from the previously reported 49.2.
The UK Jul S&P manufacturing PMI was revised downward by -0.2 to 48.0 from the previously reported 48.2.
Swaps are discounting the chances at 16% for a -25 bp rate cut by the ECB at the September 11 policy meeting.
US Stock Movers
Amazon.com (AMZN) is down more than -7% to lead losers in the Dow Jones Industrials and Nasdaq 100 after forecasting Q3 operating income of $15.5 billion-$20.5 billion, the midpoint below the consensus of $19.42 billion.
Chip stocks are under pressure today, weighing on the overall market. Marvell Technology (MRVL) is down more than -7%. Also, Micron Technology (MU), Microchip Technology (MCHP), Advanced Micro Devices (AMD), GlobalFoundries (GFS), and ARM Holdings Plc (ARM) are down more than -3%. In addition, Broadcom (AVGO), Intel (INTC), and NXP Semiconductors NV (NXPI) are down more than -2%.
Fluor (FLR) is down more than -32% after reporting Q2 adjusted EPS of 43 cents, weaker than the consensus of 56 cents, and cutting its full-year adjusted EPS forecast to $1.95-$2.15 from a previous estimate of $2.25-$2.75, well below the consensus of $2.53.
Eastman Chemical (EMN) is down more than -21% to lead losers in the S&P 500 after reporting Q2 adjusted EPS of $1.60, weaker than the consensus of $1.74.
Coinbase Global (COIN) is down more than -14% after reporting Q2 total revenue of $1.50 billion, below the consensus of $1.59 billion.
WW Grainger (GWW) is down more than -7% after reporting Q2 adjusted EPS of $9.97, below the consensus of $10.06, and cutting its full-year adjusted EPS forecast to $38.50-$40.25 from a previous forecast of $39.00-$41.50.
Moderna (MRNA) is down more than -7% after narrowing its full-year revenue forecast to $1.5 billion to $2.2 billion from a previous forecast of $1.5 billion to $2.5 billion, weaker than the consensus of $2.07 billion.
Avis Budget Group (CAR) is down more than -4% after Goldman Sachs downgraded the stock to sell from neutral with a price target of $105.
Reddit (RDDT) is up more than +20% after reporting Q2 revenue of $499.6 million, stronger than the consensus of $425.3 million, and forecasting Q3 revenue of $535 million-$545 million, well above the consensus of $472.7 million.
Homebuilding stocks are climbing today after the 10-year T-note yield fell to a 1-month low, a supportive factor for housing demand. DR Horton (DHI) is up more than +4%, Lennar (LEN) and PulteGroup (PHM) are up more than +3%, and Toll Brothers (TOL) is up more than +2%.
Monolithic Power Systems (MPWR) is up more than +7% to lead gainers in the S&P 500 after reporting Q2 adjusted EPS of $4.21, stronger than the consensus of $4.12.
Kimberly-Clark (KMB) is up more than +4% to lead gainers in the S&P 500 after reporting Q2 adjusted EPS of $1.92, above the consensus of $1.68.
AES Corp (AES) is up more than 3% after forecasting full-year adjusted EPS of $2.10 to $2.26, the midpoint above the consensus of $2.14.
Eli Lilly (LLY) is up more than +2% after the Washington Post reported that the US government plans to experiment with covering weight-loss drugs for federal health programs.
Earnings Reports (8/1/2025)
Cboe Global Markets Inc (CBOE), Chevron Corp (CVX), Church & Dwight Co Inc (CHD), Colgate-Palmolive Co (CL), Dominion Energy Inc (D), Exxon Mobil Corp (XOM), Franklin Resources Inc (BEN), Kimberly-Clark Corp (KMB), Linde PLC (LIN), LyondellBasell Industries NV (LYB), Moderna Inc (MRNA), Regeneron Pharmaceuticals Inc (REGN), T Rowe Price Group Inc (TROW), WW Grainger Inc (GWW).
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.