Dow Inc., through its subsidiaries, engages in the provision of various materials science solutions for packaging, infrastructure, mobility, and consumer applications in the United States, Canada, Europe, the Middle East, Africa, India, the Asia Pacific, and Latin America. The company operates through Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials & Coatings segments. The Packaging & Specialty Plastics segment provides ethylene, and propylene and aromatics products; and polyethylene, polyolefin elastomers, ethylene vinyl acetate, and ethylene propylene diene monomer rubbers for mobility and transportation, consumer, wire and cable, and construction end-markets. The Industrial Intermediates & Infrastructure segment offers purified ethylene, ethylene and ethanol amines, propylene glycol and polyether polyols, aromatic isocyanates and coatings, adhesives, sealants, elastomers, and composites. This segment also provides caustic soda, and ethylene dichloride and vinyl chloride monomers; and cellulose ethers, redispersible latex powders, and acrylic emulsions. The Performance Materials and Coatings segment provides architectural paints and coatings, and industrial coatings that are used in maintenance and protective industries, wood, metal packaging, traffic markings, thermal paper, and leather; and silicon metal, siloxanes, and intermediates used as key materials in manufacturing differentiated downstream silicone products. It also engages in property and casualty insurance, as well as reinsurance business. Dow Inc. was incorporated in 2018 and is headquartered in Midland, Michigan.

Dow Inc.

PPG Industries, Inc. PPG is benefiting from cost discipline, acquisitions and pricing actions amid headwinds from demand weakness, especially in Europe. Its second-quarter adjusted earnings of $2.22 per share matched the Zacks Consensus Estimate but fell from $2.35 a year earlier. Higher sales in the Performance Coatings unit were offset by declines across Global Architectural Coatings and Industrial Coatings segments, leading to a roughly 1% decline in the top line.
PPG Industries, which is among the prominent players in the chemical space along with Dow Inc. DOW, Eastman Chemical Company EMN and Air Products and Chemicals, Inc. APD, is implementing a cost-cutting and restructuring strategy and optimizing its working capital requirements. The cost savings generated by these restructuring initiatives will act as a tailwind for the company. It has undertaken extensive restructuring efforts to reduce its cost structure, primarily focusing on regions and end markets with weak business conditions. The company realized an additional $20 million in structural cost savings in second-quarter 2025. It expects around $60 million in restructuring savings (net of stranded costs) for full-year 2025.
PPG also announced a comprehensive cost reduction program, which is expected to deliver annualized pre-tax savings of around $175 million once fully implemented. The program includes the reduction of structural costs, mainly in Europe and in certain other global businesses. These efforts underscore PPG Industries' commitment to enhancing operational efficiency and ensuring sustained financial strength. PPG Industries is also raising selling prices across its business segments to offset the impact of cost inflation and drive profitability.
The company is also undertaking measures to grow its business inorganically through value-creating acquisitions. Contributions from the acquisitions are expected to be reflected in its performance. Acquisitions, including Tikkurila, Worwag, Cetelon and Arsonsisi’s powder coatings manufacturing business, are likely to contribute to its top line.
PPG Industries remains committed to boosting shareholder returns with cash deployment. It has an impressive record of returning cash to shareholders through dividends and share buybacks. In 2024, the company returned $1.4 billion to shareholders through dividends and share repurchases. It paid dividends worth $620 million in 2024. PPG also bought back $750 million of shares in 2024. The company repurchased shares worth roughly $540 million in the first half of 2025. It has also raised its quarterly dividend by 4% in July 2025. PPG's robust financial performance is reflected in the substantial operating cash flow generation, which reached around $1.4 billion in 2024. Cash flow from operations was $369 million in the first half of 2025.
However, PPG is being challenged by soft global industrial production, which is impacting demand in the Industrial Coatings segment. Lower automotive OEM build rates and softer industrial production in the United States and Europe are hurting volumes and sales in this segment. Weak consumer confidence is negatively impacting demand in Europe. Automotive industry build rates declined in Europe and the United States in the second quarter due to lower demand and are expected to be lower in the third quarter. Despite a slight improvement, global industrial production is expected to remain subdued in the third quarter with continued weakness in the United States and Europe.
Overall organic growth is expected to be limited by lower automotive OEM build rates and still subdued industrial production. Industrial coatings demand is expected to remain under pressure in the third quarter.
PPG’s Global Architectural Coatings segment is also hamstrung by weaker demand. Sales from this unit fell 5% in the most recent quarter on lower sales volumes resulting from weaker demand in the architectural coatings EMEA business and business divestiture. The company is seeing weaker sales in Europe. Demand was lower as consumer confidence remains subdued in that region.
PPG maintained its full-year 2025 adjusted earnings per share guidance of $7.75 to $8.05. This outlook is backed by continued share gains and internal improvement initiatives, while factoring in current global economic conditions, currency exchange rates and varied demand trends across its regions and business segments.
Another prominent chemical maker, Dow expects its strategic initiatives to help it navigate the evolving challenges within the industry. DOW’s near-term growth projects, along with its long-term strategic investments, are expected to enhance its presence in high-value applications and attractive markets that are less affected by such anti-competitive pressures.
Eastman Chemical, on its second-quarter call, noted that it is seeing a challenging global macroeconomic environment entering the second half. The company expects to gain from the ramp-up of cost-reduction initiatives and higher revenues from its Kingsport methanolysis facility. EMN sees third-quarter adjusted earnings to be roughly $1.25 per share.
Air Products updated its full-year adjusted earnings per share guidance for fiscal 2025 to a range of $11.90 to $12.10. For the fourth quarter of fiscal 2025, APD expects adjusted EPS to be between $3.27 and $3.47.
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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.

PPG Gains on Cost Actions and Acquisitions Amid Demand Softness

The S&P 500 Index ($SPX) (SPY) on Thursday rose +0.09%, the Dow Jones Industrials Index ($DOWI) (DIA) fell -0.02%, and the Nasdaq 100 Index ($IUXX) (QQQ) was unchanged. September E-mini S&P futures (ESU25) fell -0.08%, and September E-mini Nasdaq futures (NQU25) fell -0.24%.
Stocks recovered from modest early losses and closed narrowly mixed. Stocks saw downward pressure from Thursday's strong US PPI report and the +5 bp rise in the 10-year T-note yield. In addition, San Francisco Fed President Mary Daly and St Louis Fed President Alberto Musalem Thursday both threw cold water on the idea of a -50 bp rate cut at the September FOMC meeting. There continued to be uncertainty ahead of Friday's Trump-Putin summit, which will begin at 3:30 pm ET followed by a joint press conference, according to Politico.
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Thursday's PPI report was much stronger than market expectations. The PPI report suggested that the markets might have been overly optimistic about Tuesday's CPI report and that companies are passing through tariffs at the wholesale level at a higher pace than earlier thought.
The July US final-demand PPI report of +0.9% m/m and +3.3% y/y was substantially stronger than market expectations of +0.2% m/m and +2.5% y/y. The July US core final-demand PPI report of +0.9% m/m and +3.7% y/y was substantially stronger than market expectations of +0.2% m/m and +3.0% y/y.
The markets dialed back expectations for Fed easing in the wake of the disappointing PPI report. The markets are no longer discounting any chance of a -50 bp rate cut at the September meeting and are now assigning a 93% chance of a -25 bp rate cut. After Treasury Secretary Bessent's dovish suggestions on Wednesday, the markets temporarily assigned an 11% chance of a -50 bp rate cut at the September meeting. Nevertheless, the current 93% chance of a -25 bp rate cut in September is still substantially more dovish than the 40% chance assigned before the news of the weak July payroll report on August 1 and the in-line CPI report this past Tuesday.
US weekly initial unemployment claims fell by -3,000 to 224,000, which was close to expectations for a slight decline to 225,000. US weekly continuing claims fell by -15,000 to 1.953 million, which showed a slightly stronger labor market than expectations of a dip to 1.967 million.
San Francisco Fed President Mary Daly told the WSJ that she does not support a -50 bp rate cut at the September meeting, saying that "would send off an urgency signal that I don't feel about the strength of the labor market." She said she still supports two rate cuts this year, but that three cuts could be warranted "if we saw more signs that the labor market was more precarious."
St Louis Fed President Alberto Musalem said that a -50 bp rate cut at the September meeting would be "unsupported by the current state of the economy and the outlook for the economy" in his view. He said it is too early for him to make a decision on a rate cut at the September meeting.
Treasury Secretary Scott Bessent on Thursday tried to backtrack a bit on his statements on Wednesday in which he said interest rates are "too constrictive" and that rates "should probably be 150, 175 basis points lower." He added, "There's a very good chance of a 50 basis point cut. We could go into a series of rate cuts here, starting with a 50 basis point rate cut in September."
In an interview with Fox Business Thursday, Mr. Bessent said he was not telling the Fed what to do and that he was not calling for a series of Fed rate cuts with his comments on Wednesday. He said he was merely trying to say that models show the neutral rate is lower, although he didn't specify which models he was referring to. Mr. Bessent said he supports transparency and the call to clean up investment conflicts among members of Congress.
In recent tariff news, President Trump early Tuesday extended the tariff truce with China for another 90 days until November. Last Wednesday, Mr. Trump announced that he will impose a 100% tariff on semiconductor imports. Still, companies would be eligible for exemptions if they demonstrate a commitment to building their products in the US. However, the US will levy a separate tax on imports of electronic products that employ semiconductors. Also, Mr. Trump announced last Wednesday 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. Last Tuesday, 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.
The market's focus during the remainder of this week is on any tariff-trade news and Friday's Trump-Putin summit. On Friday, July US retail sales are expected to climb +0.6% m/m and retail sales ex-autos are expected to rise +0.3% m/m. Also on Friday, the July industrial production and manufacturing production reports are both expected to remain unchanged m/m. Finally, the University of Michigan's Aug US consumer sentiment index is expected to climb by +0.3 to 62.0.
Federal funds futures prices are discounting the chances for a -25 bp rate cut at 93% at the September 16-17 FOMC meeting and at 53% 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 82% of S&P 500 firms having reported Q2 earnings, about 82% of companies exceeded profit estimates.
Overseas stock markets on Thursday closed mixed. The Euro Stoxx 50 closed up +0.86%. China's Shanghai Composite posted a 3.75-year high but then fell back and closed down -0.46%. Japan's Nikkei Stock 225 closed down -1.45% and fell back from Wednesday's record high.
Interest Rates
September 10-year T-notes (ZNU25) on Thursday fell by -10.5 ticks, and the 10-year T-note yield rose +5.4 bp to 4.287%. T-note prices fell back on the strong PPI report, which resulted in reduced expectations for Fed rate cuts in the coming months. T-note prices were also undercut after Treasury Secretary Bessent backtracked a bit on his comments Wednesday, in which he called for aggressive Fed interest rate cuts. In a bearish factor, the 10-year breakeven inflation expectations rate on Thursday rose by +2.1 bp to 2.396%.
European government bond yields rose. The 10-year German bund yield rose +3.2 bp to 2.712%. The 10-year UK gilt yield rose +5.1 bp to 4.641%.
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 closed mostly higher, with Amazon (AMZN) being the biggest gainer (+2.9%) and Tesla (TSLA) being the largest loser (-1.1%).
Chip stocks closed mixed, clawing back some early losses. Intel (INTL) rose by +7.4%, but Align Technologies (ALGN), Advanced Micro Devices (AMD), and GlobalFoundries (GFS) closed with losses of more than -1%.
Bitcoin (^BTCUSD) fell nearly -4%, dragging crypto stocks lower. Strategy (MSTR) fell -4.4%, while Coinbase (COIN) and MARA Holdings (MARA) both closed down about -0.7%. However, Riot Platforms (RIOT) bucked the trend and closed up +5.7%.
Cisco Systems (CSCO) closed down -1.5% due to cautious management guidance for the current fiscal year.
Deere (DE) fell -6.8% on slightly lower management guidance for full-year net income as lower grain prices and tariff uncertainty are causing some farmers to pull back on equipment purchases.
Dow Inc (DOW) rose +2% on a rating hike to neutral from underperform from BofA Global Research due to its view that the stock is oversold.
NetEase (NTES) fell nearly -4% after a miss on Q2 sales and weaker-than-expected growth in its core gaming segment.
CVS Health (CVS) rose +2.4% on an upgrade from Baird to outperform from neutral due to "growing confidence" in the company's turnaround.
Earnings Reports (8/15/2025)
Dillard's Inc (DDS), SailPoint Inc (SAIL), Flowers Foods Inc (FLO).
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 Close Mixed After Hot PPI Report

The S&P 500 Index ($SPX) (SPY) is down -0.03%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.20%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.05%. September E-mini S&P futures (ESU25) are down -0.09%, and September E-mini Nasdaq futures (NQU25) are down -0.01%.
Stocks recovered from modest early losses and are trading narrowly mixed. Stocks are seeing downward pressure from today's strong US PPI report and today's +5 bp rise in the 10-year T-note yield. In addition, San Francisco Fed President Mary Daly and St Louis Fed President Alberto Musalem today both threw cold water on the idea of a -50 bp rate cut at the September FOMC meeting.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Today's PPI report was much stronger than market expectations. The PPI report suggested that the markets might have been overly optimistic about Tuesday's CPI report and that companies are passing through tariffs at the wholesale level at a higher pace than earlier thought.
The July US final-demand PPI report of +0.9% m/m and +3.3% y/y was substantially stronger than market expectations of +0.2% m/m and +2.5% y/y. The July US core final-demand PPI report of +0.9% m/m and +3.7% y/y was substantially stronger than market expectations of +0.2% m/m and +3.0% y/y.
The markets dialed back expectations for Fed easing in the wake of today's disappointing PPI report. The markets are no longer discounting any chance of a -50 bp rate cut at the September meeting and are now assigning a 90% chance of a -25 bp rate cut. After Treasury Secretary Bessent's dovish comments on Wednesday, the markets temporarily assigned an 11% chance of a -50 bp rate cut at the September meeting. Nevertheless, the current 90% chance of a -25 bp rate cut in September is still substantially more dovish than the 40% chance assigned before the news of the weak July payroll report on August 1 and the in-line CPI report this past Tuesday.
US weekly initial unemployment claims fell by -3,000 to 224,000, which was close to expectations for a slight decline to 225,000. US weekly continuing claims fell by -15,000 to 1.953 million, which showed a slightly stronger labor market than expectations of a dip to 1.967 million.
San Francisco Fed President Mary Daly told the WSJ that she does not support a -50 bp rate cut at the September meeting, saying that "would send off an urgency signal that I don't feel about the strength of the labor market." Daly said she still supports two rate cuts this year, but that three cuts could be warranted "if we saw more signs that the labor market was more precarious."
St Louis Fed President Alberto Musalem said that a -50 bp rate cut at the September meeting would be "unsupported by the current state of the economy and the outlook for the economy" in his view. He said it is too early for him to make a decision on a rate cut at the September meeting.
Treasury Secretary Scott Bessent today tried to backtrack a bit on his statements on Wednesday in which he said interest rates are "too constrictive" and that rates "should probably be 150, 175 basis points lower." He added, "There's a very good chance of a 50 basis point cut. We could go into a series of rate cuts here, starting with a 50 basis point rate cut in September."
In an interview with Fox Business today, Mr. Bessent said he was not telling the Fed what to do and that he was not calling for a series of Fed rate cuts with his comments on Wednesday. He said he was merely trying to say that models show the neutral rate is lower, although he didn't specify which models he was referring to. Mr. Bessent said he supports transparency and the call to clean up investment conflicts among members of Congress.
In recent tariff news, President Trump early Tuesday extended the tariff truce with China for another 90 days until November. Last Wednesday, Mr. Trump announced that he will impose a 100% tariff on semiconductor imports. Still, companies would be eligible for exemptions if they demonstrate a commitment to building their products in the US. However, the US will levy a separate tax on imports of electronic products that employ semiconductors. Also, Mr. Trump announced last Wednesday 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. Last Tuesday, 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.
The market's focus during the remainder of this week is on any tariff-trade news and Friday's Trump-Putin summit. On Friday, July US retail sales are expected to climb +0.6% m/m and retail sales ex-autos are expected to rise +0.3% m/m. Also on Friday, the July industrial production and manufacturing production reports are both expected to remain unchanged m/m. Finally, the University of Michigan's Aug US consumer sentiment index is expected to climb by +0.3 to 62.0.
Federal funds futures prices are discounting the chances for a -25 bp rate cut at 90% at the September 16-17 FOMC meeting and at 51% 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 82% of S&P 500 firms having reported Q2 earnings, about 82% of companies exceeded profit estimates.
Overseas stock markets are mixed. The Euro Stoxx 50 is up +0.82%. China's Shanghai Composite posted a 3.75-year high but then fell back and closed down -0.46%. Japan's Nikkei Stock 225 closed down -1.45% and fell back from Wednesday's record high.
Interest Rates
September 10-year T-notes (ZNU25) are down by -9.5 ticks, and the 10-year T-note yield is up +4.6 bp at 4.279%. T-note prices fell back today on the strong PPI report, which resulted in reduced expectations for Fed rate cuts in the coming months. T-note prices were also undercut after Treasury Secretary Bessent today backtracked a bit on his comments yesterday, in which he called for aggressive Fed interest rate cuts. In a bearish factor, the 10-year breakeven inflation expectations rate today is up by +1.0 bp at 2.386%.
European government bond yields are higher. The 10-year German bund yield is up +2.6 bp at 2.706%. The 10-year UK gilt yield is up +4.3 bp at 4.633%.
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 are mixed, with Amazon (AMZN) being the biggest gainer (+1.7%) and Tesla (TSLA) being the largest loser (-2.2%).
Chip stocks are trading mostly lower today, giving back some of yesterday's gains. Microchip Technology (MCHP), ON Semiconductors (ON), Advanced Micro Devices (AMD), Marvell (MRVL), and Align Technologies (ALGN) are all down more than -2% today.
Bitcoin (^BTCUSD) is down -3.7% today, dragging crypto stocks lower. Strategy (MSTR) is down more than -5%. MARA Holdings (MARA) and Bit Digital (BTBT) are down more than -4%. Coinbase (COIN) is down more than -2%.
Cisco Systems (CSCO) is down more than -1% due to cautious management guidance for the current fiscal year.
Deere (DE) is down more than -7% on slightly lower management guidance for full-year net income as lower grain prices and tariff uncertainty are causing some farmers to pull back on equipment purchases.
Dow Inc (DOW) is up nearly +1% on a rating hike to neutral from underperform from BofA Global Research due to its view that the stock is oversold.
NetEase (NTES) is down nearly -2% after a miss on Q2 sales and weaker-than-expected growth in its core gaming segment.
CVS Health (CVS) is up nearly +1% on an upgrade from Baird to outperform from neutral due to "growing confidence" in the company's turnaround.
Earnings Reports (8/14/2025)
Deere & Co (DE), Amcor PLC (AMCR), Tapestry Inc (TPR), Applied Industrial Technologie (AIT), Birkenstock Holding Plc (BIRK), QXO Inc (QXO), Applied Materials Inc (AMAT), Sandisk Corp/DE (SNDK), Globant SA (GLOB), NU Holdings Ltd/Cayman Islands (NU).
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 Are Mixed After Hot PPI Report

The S&P 500 Index ($SPX) (SPY) is down -0.24%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.36%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.11%. September E-mini S&P futures (ESU25) are down -0.39%, and September E-mini Nasdaq futures (NQU25) are down -0.30%.
Stocks are seeing some downward pressure today after today's strong US PPI report and today's +3 bp rise in the 10-year T-note yield. In addition, San Francisco Fed President Mary Daly threw cold water on the idea of a -50 bp rate cut at the September FOMC meeting.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Today's PPI report was much stronger than market expectations. The PPI report suggested that the markets might have been overly optimistic about Tuesday's CPI report and that companies are passing through tariffs at the wholesale level at a higher pace than earlier thought.
The July US final-demand PPI report of +0.9% m/m and +3.3% y/y was substantially stronger than market expectations of +0.2% m/m and +2.5% y/y. The July US core final-demand PPI report of +0.9% m/m and +3.7% y/y was substantially stronger than market expectations of +0.2% m/m and +3.0% y/y.
The markets dialed back expectations for Fed easing in the wake of today's disappointing PPI report. The markets are no longer discounting any chance of a -50 bp rate cut at the September meeting and are now assigning a 93% chance of that rate cut. After Treasury Secretary Bessent's dovish comments on Wednesday, the markets temporarily assigned an 11% chance of a -50 bp rate cut at the September meeting. Nevertheless, the current 93% chance of a -25 bp rate cut in September is still substantially more dovish than the 40% chance assigned before the news of the weak July payroll report on August 1 and the in-line CPI report this past Tuesday.
US weekly initial unemployment claims fell by -3,000 to 224,000, which was close to expectations for a slight decline to 225,000. US weekly continuing claims fell by -15,000 to 1.953 million, which showed a slightly stronger labor market than expectations of a dip to 1.967 million.
San Francisco Fed President Mary Daly told the WSJ that she does not support a -50 bp rate cut at the September meeting, saying that "would send off an urgency signal that I don't feel about the strength of the labor market." Daly said she still supports two rate cuts this year, but that three cuts could be warranted "if we saw more signs that the labor market was more precarious."
Treasury Secretary Scott Bessent today tried to backtrack a bit on his statements on Wednesday in which he said interest rates are "too constrictive" and that rates "should probably be 150, 175 basis points lower." He added, "There's a very good chance of a 50 basis point cut. We could go into a series of rate cuts here, starting with a 50 basis point rate cut in September."
In an interview with Fox Business today, Mr. Bessent said he was not telling the Fed what to do and that he was not calling for a series of Fed rate cuts with his comments on Wednesday. He said he was merely trying to say that models show the neutral rate is lower, although he didn't specify which models he was referring to. Mr. Bessent said he supports transparency and the call to clean up investment conflicts by members of Congress.
In recent tariff news, President Trump early Tuesday extended the tariff truce with China for another 90 days until November. Last Wednesday, Mr. Trump announced that he will impose a 100% tariff on semiconductor imports. Still, companies would be eligible for exemptions if they demonstrate a commitment to building their products in the US. However, the US will levy a separate tax on imports of electronic products that employ semiconductors. Also, Mr. Trump announced last Wednesday 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. Last Tuesday, 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.
The market's focus during the remainder of this week is on any tariff-trade news and Friday's Trump-Putin summit. On Friday, July US retail sales are expected to climb +0.6% m/m and retail sales ex-autos are expected to rise +0.3% m/m. Also on Friday, the July industrial production and manufacturing production reports are both expected to remain unchanged m/m. Finally, the University of Michigan's Aug US consumer sentiment index is expected to climb by +0.3 to 62.0.
Federal funds futures prices are discounting the chances for a -25 bp rate cut at 93% at the September 16-17 FOMC meeting and at 54% 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 82% of S&P 500 firms having reported Q2 earnings, about 82% of companies exceeded profit estimates.
Overseas stock markets are mixed. The Euro Stoxx 50 is up +0.29%. China's Shanghai Composite posted a 3.75-year high but then fell back and closed down -0.46%. Japan's Nikkei Stock 225 closed down -1.45% and fell back from Wednesday's record high.
Interest Rates
September 10-year T-notes (ZNU25) are down by -6 ticks, and the 10-year T-note yield is up +2.9 bp at 4.262%. T-note prices fell back today on the strong PPI report, which resulted in reduced expectations for Fed rate cuts in the coming months. T-note prices were also undercut after Treasury Secretary Bessent today backtracked a bit on his comments yesterday, calling for aggressive Fed interest rate cuts. In a bearish factor, the 10-year breakeven inflation expectations rate today is up by +1.0 bp at 2.386%.
European government bond yields are higher. The 10-year German bund yield is up +2.3 bp at 2.703%. The 10-year UK gilt yield is up +2.9 bp at 4.618%.
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 are all trading higher today, except for Tesla (TSLA), which is down more than -1%. The leader is Amazon (AMZN) with a gain of more than +2%.
Chip stocks are generally trading lower today on some give-back after yesterday's gains. ON Semiconductors (ON), Microchip Technology (MCHP), Align Technologies (ALGN), and NXP Semiconductors (NXPI) are all down more than -2% today.
Cisco Systems (CSCO) is down more than -1% due to cautious management guidance for the current fiscal year.
Deere (DE) is down more than -6% on slightly lower management guidance for full-year net income as lower grain prices and tariff uncertainty are causing some farmers to pull back on equipment purchases.
Dow Inc (DOW) is down more than -1% despite a rating hike to neutral from underperform from BofA Global Research due to its view that the stock is oversold.
NetEase (NTES) is down more than -2% after a miss on Q2 sales and weaker-than-expected growth in its core gaming segment.
CVS Health (CVS) is up nearly +1% on an upgrade from Baird to outperform from neutral due to "growing confidence" in the company's turnaround.
Earnings Reports (8/14/2025)
Deere & Co (DE), Amcor PLC (AMCR), Tapestry Inc (TPR), Applied Industrial Technologie (AIT), Birkenstock Holding Plc (BIRK), QXO Inc (QXO), Applied Materials Inc (AMAT), Sandisk Corp/DE (SNDK), Globant SA (GLOB), NU Holdings Ltd/Cayman Islands (NU).
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.

Stocks Fall Back on Hot PPI Report

Investors in Dow Inc (Symbol: DOW) saw new options become available today, for the November 21st expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 101 days until expiration the newly available contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DOW options chain for the new November 21st contracts and identified one put and one call contract of particular interest.
The put contract at the $20.00 strike price has a current bid of $1.62. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $20.00, but will also collect the premium, putting the cost basis of the shares at $18.38 (before broker commissions). To an investor already interested in purchasing shares of DOW, that could represent an attractive alternative to paying $21.77/share today.
Because the $20.00 strike represents an approximate 8% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 63%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 8.10% return on the cash commitment, or 29.26% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Dow Inc, and highlighting in green where the $20.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $22.50 strike price has a current bid of $1.84. If an investor was to purchase shares of DOW stock at the current price level of $21.77/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $22.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 11.81% if the stock gets called away at the November 21st expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if DOW shares really soar, which is why looking at the trailing twelve month trading history for Dow Inc, as well as studying the business fundamentals becomes important. Below is a chart showing DOW's trailing twelve month trading history, with the $22.50 strike highlighted in red:
Considering the fact that the $22.50 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 53%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 8.45% boost of extra return to the investor, or 30.53% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 50%, while the implied volatility in the call contract example is 57%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 250 trading day closing values as well as today's price of $21.77) to be 44%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Institutional Holders of AVNW
OCTO YTD Return
IBB Split History
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Interesting DOW Put And Call Options For November 21st

Key Points
A multiyear downturn has brought the commodity chemical industry to its knees.
Dow's cost-savings plan, lower capital expenditures, and dividend cut will make the company far better positioned to endure a prolonged downturn.
Lower global supply could help the industry recover.
On Aug. 1, commodity chemical giant Dow Inc. (NYSE: DOW) fell 6.4% -- reaching its lowest level since spinning off from DowDuPont in 2019. Dow has now surpassed its intraday low from the worst of the COVID-19 sell-off in March 2020.
It's hard to imagine that present-day conditions are worse than the global economy falling to a standstill. But that's what the market is telling us with a steep sell-off across major chemical companies.
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Dow isn't alone, as Eastman Chemical fell 19% on Aug. 1 and LyondellBasell (NYSE: LYB) nose-dived after reporting earnings last week. Like Dow, Eastman and LyondellBasel are at their lowest levels in over five years.
Here's why the chemical industry is under so much pressure, why the sell-off in Dow has gone from bad to worse to blood in the streets, and why, despite all the headwinds, Dow stands out as a top deep-value dividend stock to buy in August.
The downturn drags on
Dow makes a variety of materials that are used across the economy. Its main products include polyethylene (packaging, industrial applications, consumer goods, etc.), polyurethane (insulation, foam, coating, adhesives, sealants, etc.), silicones, (fluids, lubricants, gels, etc.), and more. Since these are commodity chemicals, Dow doesn't have much of a brand premium compared to its competitors. Like buying gasoline, the purchase decision mainly depends on price. This makes Dow sensitive to changes in supply and demand, input costs to produce its products (like feedstocks, fuel, materials, labor, etc.), and global competition.
The chemical industry has been in a prolonged downturn that is getting worse because of global supply chain disruptions and trade tensions. Demand is soft, especially in Europe and China. Higher interest rates have elevated borrowing costs, which reduces demand because it lowers the return on investment for Dow's customers. Competition is intensifying from China as the country looks to control a larger share of its supply chain.
Dow had been hoping that it could maintain its high dividend and hold out until the cycle turned. But its latest earnings report marked a noticeable step change in management's tone. Now, Dow is calling the operating conditions a "lower-for-longer earnings environment," as Dow goes on the defensive by focusing on capital preservation and protecting the balance sheet rather than appeasing shareholders with a high payout. So cutting the dividend by 50% was a necessary step in taking decisive action to ride out the downturn.
Dow CEO Jim Fitterling said the following on the second-quarterearnings callabout the extent of the slowdown:
I don't think the mid-cycle earnings of the company has changed. I think the timeline is what's changed. We're in the third year of this downturn. And with the trade negotiations and kind of a new world order and the trade rebalancing that's happening, it's hard to predict how long it's going to take us to recover. But it feels like we are reaching a conclusion of these negotiations, which I think is the first step.
Dow doesn't see a reasonable timeline for a recovery, so it believes it is in the best interest of its shareholders and the well-being of the company to cut the dividend, endure this challenging time, and then chart a path toward growth.
A boom in 2021 caused an oversupply in the chemical industry. That overcapacity, paired with competition and lower demand from key markets, has eroded pricing power for chemical giants like Dow. Profitability has gone out the window, as companies are left scrambling just to manage costs. Part of the cost management strategy includes reducing operating expenses -- which means taking supply offline.
Taking a glass-half-full approach
Last month, Dow announced the shutdown of upstream European assets -- including an ethylene cracker, an industrial intermediates and infrastructure asset in Germany, and a basic siloxanes plant in the U.K. The moves will result in noncash write-downs of $630 million to $790 million, but they will boost Dow's cash flow by saving on operating expenses.
In addition to operating cost reductions, Dow's 2025 capital expenditures (capex) are now expected to be $2.5 billion, which is $1 billion less than the original plan.
In its second-quarter 2025 report from Aug. 1, LyondellBasell announced the planned sale of select European assets, delayed construction on its propylene plant expansion at its Channelview Complex in Texas, and an update on its cash improvement plan, which will reach $600 million in savings in 2025 and another $500 million in 2026.
The widespread implementation of cost-saving measures and pullbacks in capex by multiple industry heavyweights will take supply off the market. As Dow, LyondellBasell, and others become less capital-intensive and leaner, they should be able to capitalize on margin improvement when demand in key industries recovers.
Cyclical downturns can always get worse before they get better. But the factors that contribute to a recovery usually have to do with market dynamics shifting in favor of producers rather than buyers. Drastic spending cuts and plant closures will improve the supply side of the equation, but it's worth noting that the demand side isn't showing signs of turning the corner. On its second-quarterearnings call Dow noted that sales and volumes declined across key business segments -- which is saying something considering how poor second-quarter 2024 volumes were already.
Buy Dow for deep value
Drastic cost cuts and a bleak outlook through at least 2026 illustrate the extent of the cyclical downturn. However, there are reasons to believe that the bottom could be in, given cuts in operating expenses and capex.
If we estimate cost savings by the end of 2026 of about $1 billion, close to $1 billion in savings from the 50% dividend cut, and $1 billion in lower capex this year compared to earlier forecasts (and likely lower capex next year), Dow should be on track to exit 2026 as a much leaner company. It will take Dow time to ramp up when the cycle recovers, but that's better than being overextended and amplifying losses in the near term.
With the stock price crushed and the dividend still yielding a whopping 6.4% even after the cut, Dow stands out as an intriguing deep value stock for patient investors.
Should you invest $1,000 in Dow right now?
Before you buy stock in Dow, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Dow wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,064,820!*
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Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.

My Top Dividend-Paying Deep Value Stock to Buy in August

Shares of C3.ai (NYSE: AI) have underperformed the broader market in 2024, gaining 3% so far compared to the 6% gains delivered by the Nasdaq-100 Technology Sector index, but it looks like the company's fortunes could change following its latest quarterly report.
C3.ai provides artificial intelligence (AI) software for enterprise applications, and the stock popped substantially after the company released fourth-quarter fiscal 2024 results (for the three months ended April 30, 2024) on May 29. Let's see why investors cheered C3.ai's results and check if the stock can sustain its newly found momentum.
C3.ai's growth is accelerating
C3.ai's revenue increased 20% year over year in the previous quarter to $86.6 million, which was well ahead of the $84.4 million consensus estimate. It is worth noting that the AI software specialist reported flat revenue growth in the same quarter last year. The company's non-GAAP net loss shrunk to $0.11 per share in the latest quarter from $0.13 per share last year. Analysts were projecting a bigger loss of $0.30 per share.
However, the company benefited from the "intensifying" demand for enterprise AI software, according to CEO Thomas Siebel. This was the fifth consecutive quarter during which C3.ai's growth has accelerated. What's more, the company's outlook suggests that a better year is in the cards.
C3.ai is expecting fiscal 2025 revenue to land between $370 million and $395 million, the midpoint of which would translate into a jump of 23% from the same period last year. For comparison, C3.ai's revenue increased 16% in fiscal 2024 to $310.6 million. However, don't be surprised to see the company finishing the year with stronger growth thanks to the solid demand for its AI software offerings.
The company struck 191 agreements with customers in the previous fiscal year, an increase of 52% over the prior year. Additionally, the company has 34 pilot projects in progress across customers of various sizes, which indicates that its revenue pipeline could continue improving. Even better, C3.ai's business model of partnering with major cloud service providers and offering its enterprise AI applications on their cloud performs is bearing fruit.
The company closed 115 client agreements in fiscal 2024 through its network of partners, which includes the likes of Alphabet's Google Cloud, Microsoft Azure, and Amazon Web Services. That represents a jump of 62% from the previous fiscal year. C3.ai management also pointed out that its pipeline of qualified leads within the partner network increased 63% year over year.
C3.ai's enterprise software applications are finding traction with federal agencies as well. The company's federal revenue more than doubled in fiscal 2024, and this niche presents a solid growth opportunity for the company in the long run as governments across the globe are set to pour huge amounts of money into this technology.
The overall market for AI software is expected to clock annual growth of a whopping 69% through 2032, according to Bloomberg Intelligence, generating $280 billion in annual revenue at the end of the forecast period. So, it is not surprising to see why analysts are expecting the company's growth to pick up.
Should investors buy the stock right now?
C3.ai is currently trading at 11 times sales. Though that's higher than the U.S. technology sector's price-to-sales ratio of 7.3, C3.ai stock is cheaper than fellow AI software company Palantir Technologies, which trades at 22 times sales.
Palantir is expecting its 2024 revenue to increase by 21% to $2.68 billion. So, C3.ai looks like a better bet considering that it is expected to deliver faster growth and is much cheaper than its AI software counterpart. That's why investors looking to add an AI stock to their portfolios can consider buying C3.ai, as it could start soaring thanks to the AI-fueled acceleration in its growth.
Should you invest $1,000 in C3.ai right now?
Before you buy stock in C3.ai, consider this:
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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.

Is C3.ai Stock a Buy?

Key Points
The chemical industry downturn isn't getting a reprieve, and companies have to adjust.
Dow's dividend cut preserves capital and makes the underlying business more stable.
With the stock now at multi-year lows, Dow has become a compelling opportunity.
Chemical giant Dow (NYSE: DOW) fell 17.5% on July 24 after reporting disappointing earnings and slashing its dividend by 50%. Before the cut, Dow was the highest-yielding stock in the S&P 500.
It's been a rough few years for Dow, including a stock price at multi-year lows, falling earnings and operating margins, and being removed from the Dow Jones Industrial Average (and replaced by Sherwin-Williams in November 2024).
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Here's why the dividend cut could work to the benefit of long-term investors and why Dow is worth a closer look in August.
An unsustainable payout
As shown in the following chart, Dow's earnings per share (EPS) and free cash flow (FCF) increased significantly during 2021 and 2022, as demand recovered from the pandemic and a supply-demand imbalance emerged in the commodity chemical industry.
However, EPS and FCF have been tumbling for years now. The situation has deteriorated further as Dow's EPS and FCF have turned negative.
When a company's dividend expense is higher than its FCF, that means the money coming into the business is less than the money needed to pay investors a cash dividend. So, a company may tap into cash on its balance sheet, raise debt, dilute its stock, or sell assets. But those solutions are unsustainable over the long term.
If a company believes that its dividend shortfall may continue, even into the medium-term, it may decide to cut the dividend to avoid jeopardizing the health of its balance sheet or credit rating or having to sell assets (likely on the cheap) just to cover the cost.
Dow's dividend cut will save the company about $990 million in expenses per year -- which is a big deal relative to Dow's operating expenses of $2.55 billion over the trailing 12 months.
Referring back to the chart, you can see that Dow has been cutting its operating expenses in recent years (by shutting down plants and reducing inefficiencies). In January, it identified $1 billion in potential cost savings, and it expects to hit $400 million by the end of this year.
Taking a page out of the 3M playbook
Dividend stocks offer investors two types of return: the passive income from dividends and the potential gains from an appreciating stock price. Together, they are referred to as total return. The dividend is great when the stock price is steadily climbing or at least not going down. But if the stock price is plummeting (like in the case of Dow), even a high dividend yield won't be enough to offset those losses, resulting in a negative total return.
Industrial giant 3M was in a similar situation. Growth was slowing, costs were mounting, and 3M's dividend had become unaffordable. 3M completed the spin-off of its healthcare business in April 2024, and then cut its quarterly dividend from $1.51 per share to $0.70. It broke a 64-year streak of increases, removing 3M's Dividend King status. But the decision was worth it.
Between the time 3M made its last full payment as a Dividend King in February 2024 to July 25, 2025, the stock price is up 95.9%, while its dividend is still 42.2% lower. The lower payout freed up precious dry powder that improved 3M's flexibility and allowed it to accelerate its turnaround. Now, 3M is delivering its best results in years, and the investment thesis is much improved.
Dow is worth scooping out of the bargain bin
A dividend is only as good as the company paying it. And right now, it's better for Dow to improve its quality as a business than pay an ultra-high yield. Yet, even after the dividend cut, Dow still yields a whopping 5.5% because the stock price is so beaten down.
Some investors may prefer to take a wait-and-see approach to Dow. However, those who believe Dow can weather this downturn may want to take a closer look at buying the stock now. Results are so terrible and sentiment so negative that even mediocre results would likely be celebrated by Wall Street.
All told, the sell-off in Dow is a buying opportunity because cutting the dividend was the right move and better positions the company to recover.
Should you invest $1,000 in Dow right now?
Before you buy stock in Dow, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Dow wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $638,629!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,098,838!*
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*Stock Advisor returns as of July 29, 2025
Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends 3M. The Motley Fool recommends Sherwin-Williams. 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.

The Highest-Yielding Stock in the S&P 500 Just Slashed Its Dividend by 50%. The Surprising Reason Why It Could Be a Buy Now.

For Immediate Release
Chicago, IL – July 28, 2025 – Zacks Equity Research shares The Charles Schwab Corp. SCHW as the Bull of the Day and Dow Inc. DOW as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Coinbase Global Inc. COIN or Circle Internet Group CRCL.
Here is a synopsis of all four stocks:
The Charles Schwab Corp. just posted record revenue and earnings per share in the second quarter of 2025. This Zacks Rank #1 (Strong Buy) grew revenue by 25% in the quarter.
The Charles Schwab Corp. provides financial services including wealth management, securities brokerage, banking, asset management, custody and financial advisory services to individuals and independent investment advisors.
It operates a broker-dealer subsidiary, Charles Schwab & Co., Inc., which provides investment services including mutual funds, retirement planning, and financial planning.
The Charles Schwab Corp. has 37.5 million active brokerage accounts, 5.6 million workplace plan participant accounts, 2.1 million banking accounts and $10.8 trillion in client assets.
Schwab Beat Again in the Second Quarter of 2025
On July 18, 2025, Schwab reported its second quarter 2025 results and beat the Zacks Consensus for the 10th consecutive quarter.
Earnings were a record $1.14 versus the Zacks Consensus of $1.09.
Net revenue rose by 25% to a record $5.9 billion.
Continuing with the records, total client assets rose 14% year-over-year to a record $10.76 trillion.
Core net new assets rose 31% to $80.3 billion which brought year-to-date asset gathering to $218 billion. That's up 39% year-over-year.
New brokerage account openings increased 11% year-over-year to 1.1 million, with active brokerage accounts totaling 37.5 million and total client accounts of 45.2 million.
Daily average trading volume remained robust, up 38% year-over-year, at 7.6 million.
Analysts Are Bullish on Schwab for 2025 and 2026
What wasn't to like in the quarter? The business is operating at a high level. The analysts are bullish.
9 earnings estimates were revised higher for 2025 since the earnings report, with none being cut. That has pushed up the Zacks Consensus Estimate to $4.56 from $4.43.
That's another 40.3% earnings growth as Schwab only made $3.25 last year.
The analysts are also bullish on 2026. 9 earnings estimates were revised higher for next year in the last week as well, pushing up the Consensus. The Zacks Consensus is now calling for $5.35, or another 17.4% in earnings growth.
Schwab Authorizes a New $20 Billion Stock Buyback Plan
Schwab is shareholder friendly. On July 24, 2025, Schwab's Board of Directors replaced its previous share repurchase authorization, which had $6.9 billion remaining, with a new authorization approving repurchases totaling $20 billion.
Shares may be purchased through the open market or privately negotiated transactions based on prevailing market conditions.
Schwab also pays a dividend which is currently yielding 1.1%.
Schwab Shares Break Out to New All-Time Highs
2025 has been a good year for Schwab shareholders, with the stock outperforming the S&P 500 year-to-date.
It also posted new all-time highs in the last week.
Yet Schwab is still attractively valued. It trades with a forward price-to-earnings (P/E) ratio of 21.2. A P/E ratio under 15 is considered a value, but 21x is in line with the S&P 500.
But given the big earnings growth expected this year, it has a PEG ratio, which combines the P/E ratio with growth, of just 0.94. A PEG ratio under 1.0 usually indicates a company has both growth and value. That's a rare combination.
For those investors looking for a large cap financial services company with double digit earnings growth and attractive valuations, Schwab should be on your list.
Dow Inc. is struggling with uncertainty around tariffs and challenging industry conditions. This Zacks Rank #5 (Strong Sell) recently cut its quarterly dividend by 50%.
Dow is a materials science company, and has customers in areas such as packaging, infrastructure, mobility and consumer applications. It operates manufacturing facilities in 30 countries.
Dow Missed on Q2 Earnings By 282%
On July 24, 2025, Dow reported its second quarter results and missed the Zacks Consensus by $0.31. Earnings were a loss of $0.42 compared to the Zacks Consensus of a loss of $0.11. That's a miss of 282%.
It has missed 2 out of the last 4 quarters.
Net sales fell 7% to $10.1 billion with declines in all operating segments. Sequentially, net sales were down 3%.
Volumes were also down 1%, as gains in the US and Canada were more than offset by declines in India, the Middle East, Africa and Europe.
Local price was down 7% year-over-year with declines in all regions and operating segments.
Cash from operating activities was negative $470 million, and down $1.3 billion year-over-year, led by lower earnings from margin compression.
Dow Cuts the Dividend by 50%
On July 24, 2025, on the same day as it reported Q2 earnings, Dow also announced its Board of Directors had declared a quarterly dividend of $0.35 per share.
That was a dividend cut of 50% in response to the prolonged industry downturn.
Dow said the cut would enhance financial flexibility amidst the continuing challenging macroeconomic environment.
If that holds annually, it would be $1.40 a share and would still be yielding 5.5%.
It is still the 456th consecutive dividend it has paid since 1912. That's an impressive record, through 2 world wars, a Great Depression and Great Recession and other economic and geopolitical challenges.
Analysts Are Bearish on 2025 and 2026
It should not be a surprise, with the big earnings miss and the dividend cut, that the analysts are bearish on Dow. Estimates had already been cut earlier this year, but they've been cut again.
1 earnings estimate was cut in the last 7 days, and 3 in the last 30 days, for 2025. That has pushed down the 2025 Zacks Consensus to $0.24 from $0.38 just a month ago.
That's an earnings decline in 2025 of 86% as the company made $1.71 last year.
Shares of Dow Sink Over the Last Year
The shares have been weak for some time. Dow has sunk to 1-year, and also, 5-year, lows.
With earnings sinking, the stock is not cheap on either a price-to-earnings (P/E) basis or on a PEG ratio basis.
It trades with a forward P/E of 107 and has a PEG ratio, which measures the P/E divided by growth, of 11.3. A P/E under 15 and a PEG ratio under 1.0 indicate value.
This has been a tough year for Dow. Investors might want to wait on the sidelines for a sign of a turnaround in the earnings before jumping in.
Additional content:
Coinbase vs. Circle: Which Stablecoin Powerhouse Is the Safer Bet?
Retail access to cryptocurrencies is progressing steadily as platforms improve onboarding, enhance user experiences, and align more closely with regulatory expectations. Fintechs and exchanges are increasingly integrating crypto wallets and trading capabilities into their apps, making it easier for everyday users to manage digital assets. In this evolving landscape, the question arises: which company is better positioned for long-term growth — Coinbase Global Inc. or Circle Internet Group?
Stablecoins are emerging as a crucial link between traditional finance and the crypto world, playing a key role in the development of next-generation digital financial infrastructure. Major banks are even beginning to explore their own stablecoin initiatives. As tokenization, stablecoins and decentralized finance (DeFi) continue to evolve, retail users will gain access to a growing suite of user-friendly and functional crypto services that extend far beyond basic asset trading.
Yet, cyber threats remain a challenge.
But as an investment option, which stock is more attractive? Let's closely look at the fundamentals of these stocks.
Factors to Consider for COIN
Coinbase, the largest regulated cryptocurrency exchange in the United States, is well-positioned to capitalize on increased market volatility and rising digital asset valuations. The platform is likely to benefit from President Trump's supportive stance on crypto and his push for regulatory clarity. With 83% of its revenues generated domestically, Coinbase is tightly aligned with a U.S. market that is increasingly viewed as a global leader in crypto innovation.
The company is actively advancing real-world crypto adoption through infrastructure initiatives like Base — its cost-effective Layer 2 scaling solution — and a heightened focus on stablecoins. These efforts support Coinbase's broader strategy to become the go-to platform for businesses adopting digital assets. The recent launch of the Base App, which replaces Coinbase Wallet, expands Coinbase's role beyond trading by reaching a wider consumer base. The app aims to drive deeper engagement in the on-chain ecosystem while unlocking new monetization opportunities.
Coinbase is also pushing stablecoins into the mainstream with Coinbase Payments, an alternative to traditional card processing fees that enables stablecoin-based online transactions. The company has further incentivized adoption by waiving fees on PayPal's stablecoin transactions. These moves bolster Coinbase's growing subscription and services segment, with stablecoin income emerging as a key revenue driver.
From a financial standpoint, Coinbase ended 2024 with $9.3 billion in U.S. dollar resources — including cash, cash equivalents, and USDC — reflecting a $3.8 billion increase year over year. The company also strengthened its balance sheet by lowering its debt load, resulting in healthier leverage and interest coverage ratios.
Nonetheless, elevated transaction and operating expenses continue to weigh on margins. Coinbase remains heavily exposed to volatility in major cryptocurrencies such as Bitcoin and Ethereum. A sharp decline in asset prices could hurt earnings, reduce crypto holdings' value, and strain liquidity and future cash flows.
Factors to Consider for CRCL
Circle Internet Group will play a pivotal role in the global evolution of digital finance, offering investors direct exposure to the fast-growing world of stablecoins and blockchain-enabled payments. Circle completed its IPO last month and started trading on June 5, 2025 on NYSE.
With more than $25 billion USDC, the U.S. dollar-backed stablecoins, in circulation and widespread adoption across major blockchains, wallets and exchanges, Circle benefits from strong network effects and growing institutional interest in tokenized dollars.
Circle facilitates secure, low-cost, and real-time value transfers across both decentralized and traditional financial systems and has thus carved out significant competitive advantages. Its commitment to regulatory clarity—through partnerships with banks and compliance with U.S. and global standards—sets it apart from less regulated crypto-native competitors. Collaborations with leading institutions such as BlackRock, Visa and Fiserv underscore Circle's vision of USDC becoming a core component of digital payments, cross-border remittances and embedded finance applications.
Circle's business model is primarily driven by interest income on USDC reserves, which are predominantly invested in U.S. Treasuries. This reliable income stream is bolstered by an expanding portfolio of products, including Circle Mint, programmable wallets and blockchain-based treasury management tools. With demand for digital dollars accelerating, Circle's financial model has become increasingly robust and scalable. Moreover, the company's initiatives in real-world asset tokenization and programmable finance are opening up new growth opportunities, particularly in B2B payments and institutional-grade digital asset solutions.
CRCL stock has experienced significant volatility since its IPO.
Estimates for COIN and CRCL
The Zacks Consensus Estimate for COIN's 2026 revenues and EPS implies an 8% and 11.4% year-over-year increase, respectively. EPS estimates have, however, moved south over the past 30 days.
The Zacks Consensus Estimate for CRCL's 2026 revenues implies a 20.2% increase but the same for EPS suggests a year-over-year decrease of 3.9%. EPS estimates have moved south over the past 30 days.
Price Performance of COIN and CRCL?
COIN shares have gained 5% in a month, while CRCL shares have lost 9.9% in the same time.
Conclusion
Coinbase benefits from a well-diversified revenue base that includes trading fees, staking, custodial services, and derivatives, all bolstered by growing institutional demand. Its inclusion in the S&P 500, the acquisition of Deribit and significant involvement in USDC custody strengthen its regulatory standing and support its long-term strategic trajectory.
On the other hand, Circle's efforts to expand USDC's utility in tokenized payments and real-world asset applications are encouraging, but the company operates with a narrower focus and more limited scale. Its revenues are predominantly derived from interest earned on USDC reserves, leaving it highly exposed to fluctuations in macroeconomic factors like interest rates.
Though both COIN and CRCL carry a Zacks Rank #3 (Hold), at present, COIN seems a safer option.
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5 Stocks Set to Double
Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include
Stock #1: A Disruptive Force with Notable Growth and Resilience
Stock #2: Bullish Signs Signaling to Buy the Dip
Stock #3: One of the Most Compelling Investments in the Market
Stock #4: Leader In a Red-Hot Industry Poised for Growth
Stock #5: Modern Omni-Channel Platform Coiled to Spring
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.
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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.

Charles Schwab and Dow have been highlighted as Zacks Bull and Bear of the Day

Dow Inc. (DOW) is struggling with uncertainty around tariffs and challenging industry conditions. This Zacks Rank #5 (Strong Sell) recently cut its quarterly dividend by 50%.
Dow is a materials science company, and has customers in areas such as packaging, infrastructure, mobility and consumer applications. It operates manufacturing facilities in 30 countries.
Dow Missed on Q2 Earnings By 282%
On July 24, 2025, Dow reported its second quarter results and missed the Zacks Consensus by $0.31. Earnings were a loss of $0.42 compared to the Zacks Consensus of a loss of $0.11. That’s a miss of 282%.
It has missed 2 out of the last 4 quarters.
Net sales fell 7% to $10.1 billion with declines in all operating segments. Sequentially, net sales were down 3%.
Volumes were also down 1%, as gains in the US and Canada were more than offset by declines in India, the Middle East, Africa and Europe.
Local price was down 7% year-over-year with declines in all regions and operating segments.
Cash from operating activities was negative $470 million, and down $1.3 billion year-over-year, led by lower earnings from margin compression.
Dow Cuts the Dividend by 50%
On July 24, 2025, on the same day as it reported Q2 earnings, Dow also announced its Board of Directors had declared a quarterly dividend of $0.35 per share.
That was a dividend cut of 50% in response to the prolonged industry downturn.
Dow said the cut would enhance financial flexibility amidst the continuing challenging macroeconomic environment.
If that holds annually, it would be $1.40 a share and would still be yielding 5.5%.
It is still the 456th consecutive dividend it has paid since 1912. That’s an impressive record, through 2 world wars, a Great Depression and Great Recession and other economic and geopolitical challenges.
Analysts Are Bearish on 2025 and 2026
It should not be a surprise, with the big earnings miss and the dividend cut, that the analysts are bearish on Dow. Estimates had already been cut earlier this year, but they’ve been cut again.
1 earnings estimate was cut in the last 7 days, and 3 in the last 30 days, for 2025. That has pushed down the 2025 Zacks Consensus to $0.24 from $0.38 just a month ago.
That’s an earnings decline in 2025 of 86% as the company made $1.71 last year.
Here’s what it all looks like on the price and consensus chart.
Image Source: Zacks Investment Research
Shares of Dow Sink Over the Last Year
The shares have been weak for some time. Dow has sunk to 1-year, and also, 5-year, lows.
Image Source: Zacks Investment Research
With earnings sinking, the stock is not cheap on either a price-to-earnings (P/E) basis or on a PEG ratio basis.
It trades with a forward P/E of 107 and has a PEG ratio, which measures the P/E divided by growth, of 11.3. A P/E under 15 and a PEG ratio under 1.0 indicate value.
This has been a tough year for Dow. Investors might want to wait on the sidelines for a sign of a turnaround in the earnings before jumping in.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include
Stock #1: A Disruptive Force with Notable Growth and Resilience
Stock #2: Bullish Signs Signaling to Buy the Dip
Stock #3: One of the Most Compelling Investments in the Market
Stock #4: Leader In a Red-Hot Industry Poised for Growth
Stock #5: Modern Omni-Channel Platform Coiled to Spring
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.
Download Atomic Opportunity: Nuclear Energy's Comeback free today.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.