KLA Corporation, together with its subsidiaries, engages in the design, manufacture, and marketing of process control, process-enabling, and yield management solutions for the semiconductor and related electronics industries worldwide. It operates through three segments: Semiconductor Process Control; Specialty Semiconductor Process; and PCB and Component Inspection. The company offers inspection and review tools to identify, locate, characterize, review, and analyze defects on various surfaces of patterned and unpatterned wafers; metrology systems that are used to measure pattern dimensions, film thickness, film stress, layer-to-layer alignment, pattern placement, surface topography, and electro-optical properties for wafers; chemical process control equipment; wired and wireless sensor wafers and reticles; wafer defect inspection, review, and metrology systems; reticle inspection and metrology systems; and semiconductor software solutions that provide run-time process control, defect excursion identification, process corrections, and defect classification to accelerate yield learning rates and reduce production risk. It also provides etch, plasma dicing, deposition, and other wafer processing technologies and solutions for the semiconductor and microelectronics industry. In addition, the company offers direct imaging, inspection, optical shaping, inkjet and additive printing, UV laser drilling, and computer-aided manufacturing and engineering solutions for the PCB market; inspection and electrical testing systems to identify and classify defects, as well as systems to repair defects for the display market; and inspection and metrology systems for quality control and yield improvement in advanced and traditional semiconductor packaging markets. The company was formerly known as KLA-Tencor Corporation and changed its name to KLA Corporation in July 2019. KLA Corporation was incorporated in 1975 and is headquartered in Milpitas, California.

KLA Corporation

The S&P 500 Index ($SPX) (SPY) today is down -0.07%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.05%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.30%. September E-mini S&P futures (ESU25) are down -0.03%, and September E-mini Nasdaq futures (NQU25) are down -0.26%.
Stocks are seeing support today from the favorable PPI report and positive earnings results from several top Wall Street banks. However, the Nasdaq 100 index is being undercut by weakness in chip stocks, which fell after disappointing guidance from ASML.
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Stocks also saw some weakness after CBS today reported that President Trump asked a group of House Republicans on Tuesday whether he should fire Fed Chair Powell. Several of those lawmakers said Mr. Trump indicated he would go ahead with the firing. However, CBS also quoted sources inside the White House as saying that the White House has not yet built a legal predicate for firing Mr. Powell, which can only be done for cause. In any case, Mr. Trump is continuing to pressure Mr. Powell to voluntarily resign.
Today's June PPI report was favorable, as both the month-over-month and year-over-year figures were better than expected, suggesting that tariff inflation has not yet hit the producer level. The PPI report sparked some inflation optimism after Tuesday's mixed CPI report.
Specifically, the June final-demand PPI was unchanged m/m and +2.3% y/y, which was weaker than expectations of +0.2% m/m and +2.5% y/y. The June core PPI report of unchanged m/m and +2.6% y/y was weaker than expectations of +0.2% m/m and +2.6% y/y. The year-over-year figures of +2.3% (nominal) and +2.6% y/y (core) were down from the revised May figures of +2.7% and +3.2%, respectively.
Today's June US industrial production report of +0.3% m/m was slightly stronger than market expectations of +0.1%, and May was revised higher to unchanged from -0.2%. The June US manufacturing production report of +0.1% m/m was slightly stronger than expectations of unchanged.
The July New York Fed services business activity index rose to -9.3 from -13.2 in June.
The Fed's July Beige Book report will be released later today.
Expectations for Fed policy were little changed after today's economic reports, but the reports about a possible Powell firing slightly boosted the chances for a rate cut. Federal funds futures prices are discounting the chances for a -25 bp rate cut at 5% at the July 29-30 FOMC meeting (versus 3% Tuesday) and 64% at the following meeting on Sep 16-17 (versus 58% Tuesday).
Bitcoin (^BTSUSD) is up +2.3% today, overcoming part of Tuesday's -3.3% decline, after President Trump cajoled right-wing House Republicans later yesterday to vote in favor of the crypto legislation supported by the White House and the crypto industry. President Trump said he expects the House to pass the GENIUS Act stablecoin bill today. Those Republicans yesterday blocked the legislation by voting against a procedural motion.
Bitcoin has rallied sharply in the past several weeks, driven by hopes for favorable crypto regulation from Washington. The US House Committee on Ways and Means plans to hold an oversight subcommittee hearing today entitled "Making America the Crypto Capital of the World," which is expected to promote crypto-friendly regulations.
Recent trade and tariff news has been mixed. There was some positive trade news Tuesday after Treasury Secretary Bessent said that US-China trade talks are in a "very good place" and told market participants "not to worry about August 12," the deadline for US-China trade talks. There was also some positive trade news on Tuesday after President Trump announced that his administration had reached a trade deal with Indonesia.
However, stocks were undercut by negative trade news that emerged last week and during this past weekend. Over the weekend, President Trump announced that the US will impose 30% tariffs on US imports from the European Union and Mexico, effective August 1. Mr. Trump said last Thursday that a 35% tariff on some Canadian products would take effect on August 1, up from the current 25%. Last week, Mr. Trump imposed a 50% tariff on copper imports, which will include semi-finished goods, and stated that drug companies could face tariffs as high as 200% on imports if they don't relocate production to the US within the next year.
The markets will focus on any fresh news regarding tariffs or trade deals during the remainder of this week. On Thursday, June retail sales are expected to climb by +0.1% m/m and +0.3% ex-autos, and weekly initial unemployment claims are expected to climb by +7,000 to 234,000. Also, on Thursday, the July Philadelphia Fed business outlook survey is expected to climb +3.0 points to -1.0, and the July NAHB housing market index is expected to rise +1 to 33. On Friday, June housing starts are expected to climb +3.3% m/m to 1.298 million, and June building permits are expected to slip -0.6% m/m to 1.386 million. Also, the University of Michigan's US July consumer sentiment index is expected to climb +0.8 to 61.5.
Earnings season began in earnest this week with a focus on big bank earnings results. Key reports on Thursday include PepsiCorp, Abbott, US Bancorp, Fifth Third, and GE. Key reports on Friday include Schwab and American Express.
The consensus is for S&P 500 companies to show Q2 earnings growth of +2.8% y/y, the smallest increase in two years, according to Bloomberg Intelligence. Also, only six of the eleven S&P 500 sectors are projected to post an increase in earnings, the fewest since Q1 of 2023, according to Yardeni Research.
Overseas stock markets today are lower. The Euro Stoxx 50 is down -0.62%. China's Shanghai Composite closed down -0.03%. Japan's Nikkei Stock 225 closed down -0.04%.
Interest Rates
September 10-year T-notes (ZNU25) are up +9 ticks. The 10-year T-note yield is down -1.6 bp at 4.465%. Bullish factors today include the favorable PPI report and today's -0.4 bp decline in the 10-year inflation expectations rate to 2.410%. Bearish factors include today's slightly stronger-than-expected US industrial production report.
The short-end of the Treasury curve saw support from the slightly increased chances for a Fed rate cut on today's heightened news that President Trump may soon fire Fed Chair Powell. However, the long-end of the Treasury curve would view that as a bearish development due to the inflation risks of a politically-motivated central bank.
European government bond yields are mixed. The 10-year German bund yield is down -1.9 bp at 2.693%. The 10-year UK gilt yield is up +3.1 bp at 4.656%.
Swaps are discounting the chances at 2% for a -25 bp rate cut by the ECB at the July 24 policy meeting.
US Stock Movers
The Magnificent Seven stocks are mixed today, with three gainers and four losers. The largest movers are Tesla (TSLA), with a gain of more than +2%, and Amazon (AMZN), with a loss of more than -1%.
Wall Street firms today reported positive results that boosted the stocks in pre-market trading, although those stocks are now trading lower.
Goldman Sachs (GS) was up more than +1% in pre-market trading but then faded and is now trading -0.6% lower. Goldman reported a Wall Street record of $4.3 billion of equity-trading revenue. Also, management fees in asset and wealth management rose +11% y/y.
Bank of America (BAC) is down more than -2% despite reporting that its trading division posted a record quarter and that net interest income was better than expected.
Morgan Stanley (MS) is down more than -3% despite reporting strong equity-trading income and boosting net new assets in its wealth management division.
ASML (ASML) is down more than -10% after issuing cautious guidance for next year. The report dampened enthusiasm for the chip sector, which turned lower today after yesterday's rally on optimism about the Trump administration's move to loosen some chip sale restrictions to China. Marvell Technology (MRVL) and Applied Materials (AMAT) are down more than -4%. Micron Technology (MU), Lam Research (LRCX), and KLA Corp (KLAC) are down more than -3%.
Cryptocurrency-exposed stocks are trading higher today after President Trump yesterday apparently convinced right-wing House members to vote in favor of the stablecoin legislation currently before the House. Bitcoin (^BTCUSD) today is up +2.3% after Tuesday's -3.3% decline. Mara Holdings (MARA) and Riot Platforms (RIOT) are up more than +5%, and Coinbase (COIN) is up more than +3%.
Johnson & Johnson (JNJ) is up more than +5% after raising its full-year sales guidance for the year and reporting better-than-expected Q2 earnings and revenue.
Earnings Reports (7/16/2025)
Prologis Inc (PLD), Progressive Corp/The (PGR), M&T Bank Corp (MTB), PNC Financial Services Group I (PNC), Bank of America Corp (BAC), Johnson & Johnson (JNJ), Goldman Sachs Group Inc/The (GS), Morgan Stanley (MS), United Airlines Holdings Inc (UAL), Kinder Morgan Inc (KMI).
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 Pressured by Chip-Stock Sell-off and Increased Talk about Powell Firing

Applied Materials AMAT shares have climbed 14.4% in a month, outperforming the Zacks Electronics - Semiconductors industry’s return of 6.2%. This outperformance raises the question: Should investors accumulate AMAT shares or book profits and exit the investment?
Applied Materials One Month Price Performance Chart
Image Source: Zacks Investment Research
AMAT Benefits From Growing Adoption of Its Products
Applied Materials is experiencing strong traction in its etching, deposition, metrology and inspection tools. AMAT’s Sym3 Magnum etch system, Cold Field Emission eBeam technology, gate-all-around, backside power delivery, and 3D DRAM technology nodes are gaining traction as they play crucial roles in the manufacturing and inspection of high-performance processing and memory chips used for AI and HPC workloads.
AMAT’s Sym3 Magnum etch system has yielded more than $1.2 billion in revenues since its launch in February 2024. Moreover, in the second quarter of fiscal 2025, AMAT’s management anticipated AMAT's revenues from DRAM customers to grow more than 40% in fiscal 2025. Earlier, Applied Materials reported that its revenues from advanced semiconductor nodes crossed $2.5 billion in 2024, and it expected the figure to double in fiscal 2025 as customers’ adoption of its GAA and backside power delivery solutions grows.
Applied Materials stands to gain from the rising demand for advanced chips required to power AI-centric data centers. The company's deep expertise in logic and solid position in DRAM patterning have aided it in maintaining a stronghold in the semiconductor space. Its patterning systems and technologies, which are designed to address the shrinking pattern dimension challenges and the growing complexity in vertical stacking, can play a crucial role in high-performance chip development for AI.
Due to the favorable mix of products and traction in high-margin solutions, Applied Materials’ gross margin has been experiencing positive momentum for the past four quarters and came in at 49.2% in the second quarter of fiscal 2025, which is also the highest gross margin since the fourth quarter of fiscal 2000.
Broad Portfolio Gives AMAT a Competitive Edge
The semiconductor equipment market in which AMAT operates has other larger players, including Lam Research LRCX, ASML Holding ASML and KLA Corporation KLAC. However, AMAT differentiates from its competitors by providing comprehensive deposition, etch, metrology, and packaging solutions, whereas its competitors specialize only in one vertical or the other. AMAT also commands a strong integration of materials science and fabrication; the others don't.
For instance, ASML Holding specializes in the photolithography and advanced manufacturing equipment segment. KLA Corporation is a dominant competitor in the wafer inspection space and Lam Research has a strong atomic layer deposition portfolio. AMAT stands out because of its full-stack portfolio, strength in materials engineering, and ability to co-optimize across fabrication steps.
This is the reason why, despite having competition from Lam Research, KLA Corporation and ASML Holdings, Applied Materials is able to keep its margins intact as it’s not just a tools vendor. Applied Materials offers end-to-end solutions that improve chip yield, power, performance, and cost. The Zacks Consensus Estimate for AMAT’s earnings per share is pegged at $9.47, indicating year-over-year growth of 9.5%.
Image Source: Zacks Investment Research
Applied Materials is trading at a 12-month forward P/S ratio of 5.34, significantly below the industry average of 6.64. Given its dominance in semiconductor equipment and AI-driven chip manufacturing, this valuation discount suggests strong upside potential over the long term.
AMAT Forward 12 Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
Conclusion: Buy AMAT Stock Now
Applied Materials remains a key player in semiconductor manufacturing, with a strong position in AI-driven chip development, advanced packaging and next-generation process technology. For investors, investing in AMAT stock remains the best approach. Currently, Applied Materials carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Applied Materials Soars 14% in a Month: Time to Buy or Hold the Stock?

Below is Validea's guru fundamental report for KLA CORP (KLAC). Of the 22 guru strategies we follow, KLAC rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
KLA CORP (KLAC) is a large-cap growth stock in the Semiconductors industry. The rating using this strategy is 96% 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 KLA CORP
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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.

KLAC Factor-Based Stock Analysis - Warren Buffett

In the latest trading session, KLA (KLAC) closed at $936.53, marking a +1.59% move from the previous day. This move outpaced the S&P 500's daily loss of 0.4%. Elsewhere, the Dow saw a downswing of 0.98%, while the tech-heavy Nasdaq appreciated by 0.18%.
Prior to today's trading, shares of the maker of equipment for manufacturing semiconductors had gained 3.3% lagged the Computer and Technology sector's gain of 6.34% and the S&P 500's gain of 4.97%.
The upcoming earnings release of KLA will be of great interest to investors. The company's earnings report is expected on July 31, 2025. The company's earnings per share (EPS) are projected to be $8.53, reflecting a 29.24% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.08 billion, up 19.75% from the year-ago period.
KLAC's full-year Zacks Consensus Estimates are calling for earnings of $32.46 per share and revenue of $12.05 billion. These results would represent year-over-year changes of +36.73% and 0%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for KLA. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.42% higher. At present, KLA boasts a Zacks Rank of #2 (Buy).
Investors should also note KLA's current valuation metrics, including its Forward P/E ratio of 27.8. For comparison, its industry has an average Forward P/E of 19.28, which means KLA is trading at a premium to the group.
Meanwhile, KLAC's PEG ratio is currently 1.72. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Electronics - Miscellaneous Products industry held an average PEG ratio of 1.78.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 139, placing it within the bottom 44% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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KLA (KLAC) Rises As Market Takes a Dip: Key Facts

The S&P 500 Index ($SPX) (SPY) today is down -0.21%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.05%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.22%. September E-mini S&P futures (ESU25) are down -0.21%, and September E-mini Nasdaq futures (NQU25) are down -0.39%.
Stock indexes today are under pressure after President Trump ramped up tariff threats against US trading partners. Over the weekend, President Trump said the US will impose 30% tariffs on goods from the European Union and Mexico, beginning August 1. The markets are still reeling from last Thursday when President Trump said a 35% tariff on some Canadian products would take effect on August 1, up from the current 25%.
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Stocks have been undercut as President Trump vowed to push forward with his aggressive tariff regime, stressing he would not offer additional extensions on country-specific tariffs set to take effect on August 1. Last week, Mr. Trump imposed a 50% tariff on copper imports that will include semi-finished goods and said that drug companies could face tariffs as high as 200% on imports if they don't relocate production to the US within the next year. In addition, despite stating that the US was close to a trade deal with India, Mr. Trump said he would still impose a 10% tariff on India's goods for their participation in BRICS, a group of developing nations he claimed were "set up to hurt" the US.
Hawkish comments today from Cleveland Fed President Beth Hammack weighed on stocks and bonds when she said she wants to see inflation lowered further before she'd support cutting interest rates. She said, "We're not there yet on the inflation side of the Fed's mandate, and I think it's important that we wait and see how all the new policies that have been put forward are going to impact inflation."
Trade news from China was better than expected, a positive factor for global economic growth. China June exports rose +5.8% y/y, stronger than expectations of +5.0% y/y. Also, June imports rose +1.1% y/y, stronger than expectations of +0.3% y/y.
The price of Bitcoin (^BTSUSD) continues to soar and is up by more than +3% today at a new record high as the US House prepares to consider legislation this week that would advance President Trump's crypto-friendly agenda. The US House Committee on Financial Services said this week will be "Crypto Week." The US House Committee on Ways and Means has planned an oversight subcommittee hearing on July 16 entitled, "Making America the Crypto Capital of the World," which may lead to more crypto-friendly regulations.
The markets this week will focus on any fresh news on tariffs or trade deals. On Tuesday, the US June CPI is expected to strengthen to +1.9% y/y from +1.7% y/y in May, and the June core CPI is expected to strengthen to +2.9% y/y from +2.8% y/y in May. On Wednesday, June PPI final demand is expected to ease to +2.5% y/y from +2.6% in May, and June core PPI is expected to ease to +2.7% y/y form +3.0% y/y in May. Also, on Wednesday, Jun manufacturing production is expected to fall -0.1% y/y. Finally on Wednesday, the Fed will release its Beige Book. On Thursday, June retail sales are expected to climb by +0.1% m/m and +0.3% ex-autos, and weekly initial unemployment claims are expected to climb by +7,000 to 234,000. Also, on Thursday, the Philadelphia Fed business outlook survey is expected to climb +3.0 points to -1.0 and the July NAHB housing market index is expected to rise +1 to 33. On Friday, June housing starts are expected to climb +3.3% m/m to 1.298 million, and June building permits are expected to slip -0.6% m/m to 1.386 million. Also, the University of Michigan US July consumer sentiment index is expected to climb +0.8 to 61.5.
Another hurdle for stocks is the upcoming earnings season, which begins in earnest this week with the release of big bank earnings results. Bloomberg Intelligence data show that the consensus for Q2 earnings of S&P 500 companies is for a rise of +2.8% year-over-year, the smallest increase in two years. Also, only six of the eleven S&P 500 sectors are projected to post an increase in earnings, the fewest since Q1 of 2023, according to Yardeni Research.
Federal funds futures prices are discounting the chances at 5% for a -25 bp rate cut at the July 29-30 FOMC meeting.
Overseas stock markets today are mixed. The Euro Stoxx 50 is down -0.72%. China's Shanghai Composite closed up +0.27%. Japan's Nikkei Stock 225 closed down -0.28%.
Interest Rates
September 10-year T-notes (ZNU25) today are down by -2 ticks. The 10-year T-note yield is up by +1.0 bp to 4.419%. T-note prices are under pressure after President Trump said over the weekend that the US will impose 30% tariffs on goods from the European Union and Mexico, beginning August 1, which could boost inflation and prevent the Fed from cutting interest rates. Rising US inflation expectations are also weighing on T-notes as the 10-year breakeven inflation rate today rose to a 3.5-month high of 2.398%.
T-note prices are also being undercut by hawkish comments from Cleveland Fed President Beth Hammack, who said she wants to see inflation lowered further before she'd support cutting interest rates. Finally, negative carryover from a slide in 10-year German bunds to a 3.5-month low today is bearish for T-notes.
European government bond yields today are mixed. The 10-year German bund yield rose to a 3.5-month high of 2.739% and is up +1.3 bp at 2.738%. The 10-year UK gilt yield is down -0.6 bp to 4.616%.
Swaps are discounting the chances at 2% for a -25 bp rate cut by the ECB at the July 24 policy meeting.
US Stock Movers
The weakness in semiconductor chip stocks is weighing on the broader market. Micron Technology (MU) is down more than -5% to lead losers in the Nasdaq 100. Also, ON Semiconductor (ON) and Lam Research (LRCX) are down more than -2%. In addition, Marvell Technology (MRVL), NXP Semiconductors NV (NXPI), Microchip Technology (MCHP), Advanced Micro Devices (AMD), Intel (INTC), KLA Corp (KLAC), Qualcomm (QCOM), and Texas Instruments (TXN) are down more than -1%. Nvidia (NVDA) is down more than -1% to lead losers in the Dow Jones Industrials.
Cryptocurrency-exposed stocks are moving higher with the price of Bitcoin (^BTCUSD) up more than +3% to a new record high. MARA Holdings (MARA) is up more than +10%, Riot Platforms (RIOT) is up more than +6%, MicroStrategy (MSTR) is up more than +4%, and Coinbase Global (COIN) is up more than +2%.
Waters (WAT) is down more than -9% to lead losers in the S&P 500 after the company said it will combine a Reverse Morris Trust transaction valued at about $17.5 billion with Becton's Biosciences & Diagnostic Solutions, in which Waters' will assume about $4 billion of incremental debt.
Best Buy (BBY) is down more than -2% after Piper Sandler downgraded the stock to neutral from overweight.
Crowdstrike Holdings (CRWD) is down more than -1% after Morgan Stanley downgraded the stock to equal weight from overweight.
Starbucks (SBUX) is down more than -1% after Melius Research LLC initiated coverage on the stock with a recommendation of sell and a price target of $80.
Intapp (INTA) is down more than -1% after Barclays downgraded the stock to underweight from equal weight with a price target of $44.
Nebius Group NV (NBIS) is up more than +14% after Goldman Sachs initiated coverage of the stock with a recommendation of buy and a price target of $68.
Fastenal (FAST) is up more than +4% to lead gainers in the S&P 500 and Nasdaq 100 after reporting Q2 net sales of $2.08 billion, better than the consensus of $2.07 billion.
Autodesk (ADSK) is up more than +3% after it said it is allocating its capital to organic investment, targeted and tuck-in acquisitions, and continuing its share repurchase program as its free cash flow grows.
Global Payments (GPN) is up by more than +2% after TD Cowen upgraded the stock to buy from hold with a price target of $84.
Kenvue (KVUE) is up more than +1% after saying CEO Mongon is leaving the company and that a strategic view of the company's options is underway.
Visteon Corp (VC) is up more than +1% after UBS upgraded the stock to buy from neutral with a price target of $142.
Earnings Reports (7/14/2025)
Equity Bancshares Inc (EQBK), Fastenal Co (FAST), FB Financial Corp (FBK), Immersion Corp (IMMR), Kestra Medical Technologies Ltd (KMTS), Rezolve AI PLC (RZLV), Simulations Plus Inc (SLP).
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.

Latest Tariff Threats Weigh on Stocks

The following are the top rated Information Technology stocks according to Validea's Growth Investor model based on the published strategy of Martin Zweig. This strategy looks for growth stocks with persistent accelerating earnings and sales growth, reasonable valuations and low debt.
TERADYNE INC (TER) is a large-cap growth stock in the Electronic Instr. & Controls industry. The rating according to our strategy based on Martin Zweig 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.
Company Description: Teradyne, Inc. is a global supplier of automated test equipment and robotics solutions. The Company designs, develops, manufactures and sells automated test systems and robotics products. The Companys segment includes Semiconductor Test and Robotics. The Semiconductor Test segment includes operations related to the design, manufacturing and marketing of semiconductor test products and services inclusive of storage and system level test products. The Robotics segment includes operations related to the design, manufacturing and marketing of collaborative robotic arms and autonomous mobile robots. Its offerings also include defense/aerospace test instrumentation and systems, circuit-board test and inspection (production board test) systems, and wireless test systems. Its advanced robotics business includes collaborative robots and mobile robots that support manufacturing and warehouse operations for companies of all sizes.
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 TERADYNE INC
MICROSOFT CORP (MSFT) is a large-cap growth stock in the Software & Programming industry. The rating according to our strategy based on Martin Zweig is 77% 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.
Company Description: Microsoft Corporation is a technology company. The Company develops and supports software, services, devices, and solutions. The Companys segments include Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services. This segment primarily comprises: Office Commercial, Office Consumer, LinkedIn, and Dynamics business solutions. The Intelligent Cloud segment consists of server products and cloud services, including Azure and other cloud services, SQL Server, Windows Server, Visual Studio, System Center, and related Client Access Licenses (CALs), and Nuance and GitHub; and Enterprise Services, including enterprise support services, industry solutions and Nuance professional services. The More Personal Computing segment primarily comprises Windows, Devices, Gaming, and search and news advertising.
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 MICROSOFT CORP
KLA CORP (KLAC) is a large-cap growth stock in the Semiconductors industry. The rating according to our strategy based on Martin Zweig is 77% 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.
Company Description: KLA Corporation is a supplier of process control and yield management solutions and services for the semiconductor and related electronics industries. The Company offers a portfolio of inspection and metrology products, and related services, software and other offerings, supports research and development (R&D) and manufacturing of integrated circuits (ICs), wafers and reticles. Its segments include Semiconductor Process Control, Specialty Semiconductor Process, and PCB and Component Inspection. Semiconductor Process Control segment provides comprehensive portfolio of inspection, metrology and software products, as well as related services, helping IC, wafer, reticle/mask and chemical/materials manufacturers achieve target yields throughout the entire fabrication process, from R&D to final volume production. The Specialty Semiconductor Process segment develops and sells advanced vacuum deposition and etch process tools, which are used by a range of specialty semiconductor customers.
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 KLA CORP
TAIWAN SEMICNDCTR MNUFCTRNG CO LTD (ADR) (TSM) is a large-cap growth stock in the Semiconductors industry. The rating according to our strategy based on Martin Zweig is 77% 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.
Company Description: Taiwan Semiconductor Manufacturing Co Ltd is a Taiwan-based company mainly engaged in the provision of integrated circuit manufacturing services. The integrated circuit manufacturing services include process technology, special process technology, design ecosystem support, mask technology, 3DFabricTM advanced packaging and silicon stacking technology services. The Company has completed the transfer and mass production of 5nm technology, and is engaged in the research and development of 3nm process technology and 2nm process technology. The product application range covers the entire electronic application industry, including personal computers and peripheral products, information application products, wired and wireless communication system products, servers and data centers.
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 TAIWAN SEMICNDCTR MNUFCTRNG CO LTD (ADR)
FABRINET (FN) is a large-cap growth stock in the Semiconductors industry. The rating according to our strategy based on Martin Zweig is 77% 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.
Company Description: Fabrinet is a provider of advanced optical packaging and precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers of complex products, such as optical communication components, modules and sub-systems, automotive components, industrial lasers, medical devices and sensors. The Company offers a range of advanced optical and electro-mechanical capabilities across the entire manufacturing process, including process design and engineering, supply chain management, manufacturing, complex printed circuit board assembly, advanced packaging, integration, final assembly and testing. It focuses primarily on low-volume production of a wide variety of high complexity products. It also designs and fabricates applications-specific crystals, lenses, prisms, mirrors, laser components, and substrates (customized optics) and other custom and standard borosilicate, clear fused quartz, and synthetic fused silica glass products (customized glass).
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 FABRINET
About Martin Zweig: During the 15 years that it was monitored, Zweig's stock recommendation newsletter returned an average of 15.9 percent per year, during which time it was ranked number one based on risk-adjusted returns by Hulbert Financial Digest. Zweig has managed both mutual and hedge funds during his career, and he's put the fortune he's compiled to some interesting uses. He has owned what Forbes reported was the most expensive apartment in New York, a $70 million penthouse that sits atop Manhattan's Pierre Hotel, and he is a collector of all sorts of pop culture and historical memorabilia -- among his purchases are the gun used by Clint Eastwood in "Dirty Harry", a stock certificate signed by Commodore Vanderbilt, and even two old-fashioned gas pumps similar to those he'd seen at a nearby gas station while growing up in Cleveland, according to published reports.
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.

Validea's Top Information Technology Stocks Based On Martin Zweig - 7/14/2025

ASML Holding N.V. ASML may beat expectations when it reports second-quarter 2025 results before the market opens on July 16.
ASML expects revenues between €7.2 billion and €7.7 billion. The Zacks Consensus Estimate is pegged at $8.55 billion, indicating an increase of 27.2% from the year-ago quarter’s level.
The Zacks Consensus Estimate for earnings is pegged at $5.94 per share, up 37.5% from the year-ago quarter’s earnings of $4.32. The estimate has been revised upward by 14 cents over the past 30 days.
Image Source: Zacks Investment Research
ASML Holding has an impressive earnings surprise history. The company’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 6.8%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
ASML Holding N.V. Price and EPS Surprise
Earnings Whispers for ASML
Our proven model predicts an earnings beat for ASML Holding this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($6.11 per share) and the Zacks Consensus Estimate ($5.94 per share), is +2.82%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: ASML carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Influence ASML’s Q2 Performance
The semiconductor sector is riding on a wave of resurgence, fueled by surging demand and the transformative potential of artificial intelligence (AI). This positive momentum has been a boon for companies like ASML, particularly in the wafer fabrication equipment space.
ASML Holding has been at the forefront of technological innovation, benefiting significantly from the industry’s shift toward smaller, more advanced technology nodes. These nodes are essential for building cutting-edge digital infrastructures that support AI, 5G and high-performance computing. The increasing complexity of chip designs has made ASML's state-of-the-art lithography tools indispensable to chipmakers.
In both logic and memory markets, the demand for ASML’s lithography tools continues to climb. The ongoing transition to next-generation memory technologies, such as DDR5 and high-bandwidth memory (HBM), is a tailwind for the company. With DRAM manufacturers ramping up technology upgrades, ASML Holding is likely to have witnessed strong momentum in the second quarter, driven by heightened memory demand.
ASML’s heavy investments in Extreme Ultraviolet (“EUV”) technology are also paying off. EUV lithography is critical for producing advanced chips, and the company’s service segment is benefiting from the rising demand for EUV-related services. In particular, the growing popularity of the NXE:3800 low numerical aperture (NA) machine, which can process 220 wafers per hour, is likely to have driven substantial EUV sales in the to-be-reported quarter.
Despite the strengths, macroeconomic challenges are likely to have negatively impacted ASML’s quarterly outlook. Intensifying U.S.-China trade tensions, coupled with export restrictions on advanced semiconductors and equipment to China, remain a critical headwind. Given ASML’s exposure to the Chinese market, these restrictions may have dampened the company’s overall performance. Nonetheless, strong demand for Deep Ultraviolet (“DUV”) lithography systems, which Chinese chipmakers use to manufacture mature-node chips, such as those based on the 28nm process, might have partially offset the negative impact of export restrictions on advanced semiconductor tools to China.
ASML Stock Price Performance & Valuation
ASML Holding shares have soared 15.7% year to date (YTD), outperforming the Zacks Computer and Technology sector’s rise of 7.4%. Comparing ASML with semiconductor peers, the stock has underperformed KLA Corporation KLAC, Lam Research Corporation LRCX and Applied Materials, Inc. AMAT. YTD, shares of KLA Corporation, Lam Research and Applied Materials have jumped 46.7%, 40.8% and 21.7%, respectively.
YTD Price Return Performance
Image Source: Zacks Investment Research
Now, let’s look at the value that ASML offers to its investors at the current level. Currently, ASML Holding is trading at a premium. With a forward 12-month P/E of 27.7X, ASML is trading marginally higher than the sector’s average of 27.39X.
Image Source: Zacks Investment Research
The stock trades at a premium to Lam Research and Applied Materials, while at a discount to KLA Corporation. Currently, KLA Corporation, Lam Research and Applied Materials have a forward 12-month P/E ratio of 27.76, 25.34 and 20.11, respectively.
Investment Thesis for ASML Stock
ASML Holding has a clear advantage in the chip equipment market. It is the only company capable of producing EUV lithography machines at scale. These machines are needed to make chips at 5nm, 3nm and soon 2nm levels — key to powering AI processors, mobile devices and data centers.
The company is already rolling out its next-generation High-NA EUV machines, which will be used for even smaller chips. As demand for faster and more efficient chips rises, especially with the growth of AI, ASML Holding stands to benefit. Its machines are a necessary part of the chip supply chain, and its customers, including TSMC, Intel and Samsung, will rely on ASML’s technology for years to come.
However, one concern is the company’s exposure to China. In 2024, China made up 41% of ASML’s shipments, which decreased to 27% in the first quarter of 2025. U.S. pressure on the Dutch government has led to export restrictions on some of ASML’s most advanced equipment, which could limit future sales in that market. Still, strong demand from other regions may offset that risk.
Conclusion: Hold ASML Stock for Now
ASML Holding’s dominance in EUV and High-NA EUV technology, along with solid revenue visibility, makes it well-positioned for future growth. With rising demand for advanced nodes, AI chips and high-bandwidth memory, ASML’s lithography tools will remain mission-critical. However, export restrictions on advanced semiconductors and equipment to China and a high valuation multiple warrant a cautious approach to the stock.
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.

ASML Likely to Beat Q2 Earnings Estimates: How to Play the Stock?

The S&P 500 Index ($SPX) (SPY) today is down -0.28%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.51%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.80%. September E-mini S&P futures (ESU25) are down -0.28%, and September E-mini Nasdaq futures (NQU25) are down -0.82%.
Stock indexes today are mostly lower, with the S&P 500 and Nasdaq 100 consolidating below Monday’s all-time highs. Tesla is down more than -5% to lead technology stocks lower and weigh on the overall market after President Trump threatened to withdraw subsidies from Elon Musk’s companies in response to Musk’s criticism of the Republican reconciliation bill. The markets are also monitoring progress on trade talks ahead of President Trump’s July 9 deadline, and Congressional wrangling over passage of President Trump’s tax and spending bill.
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The Senate narrowly passed the Republican reconciliation bill 51-50 earlier today, which now goes back to the House for their consideration. The reconciliation bill has the debt ceiling hike that is necessary to avert a Treasury default when the Treasury runs out of borrowing authority sometime between mid-August and late September. The dollar index fell to a 3-1/3 year low today as the nonpartisan Congressional Budget Office estimates that the bill would add nearly $3.3 trillion to US budget deficits over the next decade.
Stocks remained lower today after the better-than-expected US ISM and JOLTS reports pushed bond yields higher and dampened expectations of imminent Fed rate cuts. Also, Fed Chair Powell reiterated his wait-and-see stance on interest rates as he expects tariffs to show up in inflation data over the coming months.
The US June ISM manufacturing index rose +0.5 to 49.0, stronger than expectations of 48.8. Also, the June ISM prices paid sub-index rose +0.3 to 69.7, stronger than expectations of 69.5.
US May JOLTS job openings unexpectedly rose +374,000 to a 6-month high of 7.769 million, showing a stronger labor market than expectations of a decline to 7.300 million.
Fed Chair Powell said he expects the impacts of tariffs to show up in inflation data over the coming months, but the impact could be “higher or lower, or later or sooner than we expected.”
Better-than-expected manufacturing news from China is supportive of global economic growth prospects. The China June Caixin manufacturing PMI rose +2.1 to 50.4, stronger than expectations of 49.3.
On the negative side for stocks is the upcoming earnings season, which begins next week. Bloomberg Intelligence data show that the consensus for Q2 earnings of S&P 500 companies is for a rise of +2.8% year-over-year, the smallest increase in two years. Also, only six of the 11 S&P 500 sectors are projected to post an increase in earnings, the fewest since Q1 of 2023, according to Yardeni Research.
During this holiday-shortened week, the markets will look for additional trade and tariff news along with progress in the passage of President Trump’s tax bill. On Wednesday, the June ADP employment change is expected to rise by +90,000. On Thursday, Jun nonfarm payrolls are expected to climb by +113,000, and the June employment rate is expected to tick up +0.1 to 4.3%. Also, June average hourly earnings are expected to rise +0.3% m/m and +3.8% y/y. In addition, weekly initial unemployment claims are expected to climb +5,000 to 241,000, and May factory orders are expected to jump +8.1% m/m. Finally, the Jun ISM services index is expected to climb +0.7 to 50.6.
Federal funds futures prices are discounting the chances at 21% for a -25 bp rate cut at the July 29-30 FOMC meeting.
Overseas stock markets today are mixed. The Euro Stoxx 50 is down -0.31%. China’s Shanghai Composite closed up +0.39%. Japan’s Nikkei Stock 225 closed down -1.24%.
Interest Rates
September 10-year T-notes (ZNU25) today are down by -10 ticks. The 10-year T-note yield is up +2.7 bp to 4.255%. Sep T-notes fell from a 2-month high today and turned lower, and the 10-year T-note yield rebounded from a 2-month low of 4.185% and turned higher.
Speculation that Congress is close to passing President Trump’s tax and spending bill has sparked some weakness in T-note prices. The Congressional Budget Office estimates that the bill would add nearly $3.3 trillion to US deficits over the next decade, which would boost Treasury security sales to fund the deficits. Losses in T-notes accelerated today after the stronger-than-expected ISM and JOLTS reports were hawkish for Fed policy.
T-note prices today initially moved higher on carryover support from strength in European government bonds. T-notes were also boosted as positive trade news has bolstered hopes for smaller-than-expected tariffs, which would soften the inflation outlook. In addition, weakness in stocks today has boosted safe-haven demand for T-notes.
European government bond yields today are moving lower. The 10-year German bund yield is down -3.7 bp to 2.570%. The 10-year UK gilt yield dropped to an 8-week low of 4.417% and is down -4.9 bp to 4.440%.
The Eurozone June CPI edged up to +2.0% y/y from +1.9% y/y in May, right on expectations. The June core CPI was unchanged from May at +2.3% y/y, right on expectations.
The ECB May 1-year CPI inflation expectations unexpectedly eased to +2.8% from +3.1% in Apr, versus expectations of no change at +3.1%. The May 3-year CPI expectations unexpectedly eased to +2.4% from +2.5% in Apr versus expectations of no change at +2.5%.
The Eurozone June manufacturing PMI was revised upward by +0.1 to 49.5 from the previously reported 49.4.
The German June unemployment change rose +11,000, showing a stronger labor market than expectations of +15,000. The Jun unemployment rate was unchanged at 6.3%, showing a stronger labor market than expectations of an increase to 6.4%.
ECB Governing Council member Kazaks said, “If the euro were to significantly appreciate further, it could weigh down on inflation and exports, which could tilt the balance toward another ECB interest rate cut.”
Swaps are discounting the chances at 6% for a -25 bp rate cut by the ECB at the July 24 policy meeting.
US Stock Movers
Tesla (TSLA) is down more than -5% to lead losers in the S&P 500 and Nasdaq 100 as President Trump threatened to withdraw government subsidies from Elon Musk’s companies after Musk criticized the Republicans’ reconciliation bill. Analysts estimate that changes to regulatory credits could threaten up to 40% of Tesla’s profits.
Weakness in chip stocks is a negative factor for the overall market. Advanced Micro Devices (AMD), Broadcom (AVGO), and ARM Holdings Plc (ARM) are down more than -3%. Also, Nvidia (NVDA) is down more than -2% to lead losers in the Dow Jones Industrials. In addition, Micron Technology (MU), ASML Holding NV (ASML), Lam Research (LRCX), and KLA Corp (KLAC) are down more than -1%.
Warner Bros Discovery (WBD) is down more than -4% after holder Advance/Newhouse planned to sell as much as $1.1 billion of its holdings in WBD via an overnight unregistered block trade.
AeroVironment (AVAV) is down more than -7% after announcing plans to sell $750 million worth of shares of its common stock in an underwritten public offering and $600 million of aggregate convertible senior notes due 2020.
Dyne Therapeutics (DYN) is down more than -5% after offering 24.2 million shares of its common stock in an underwritten public offering at a price of $8.25 per share, below Monday’s closing price of $9.52.
Sweetgreen Inc (SG) is down more than -3% after TD Cowen downgraded the stock to hold from buy.
US-listed Macau casino operators are climbing today after Macau’s monthly gaming revenue rose +19% y/y in June, above expectations of a +9.4% y/y gain. As a result, Wynn Resorts Ltd. (WYNN) is up more than +8% to lead gainers in the S&P 500. Also, Las Vegas Sands (LVS) is up more than +8% and MGM Resorts International (MGM) is up more than +6%.
Packaging Corporation of America (PKG) is up more than 6% after the company acquired Greif Containerboard for $1.8 billion, and Barclays said the purchase will increase PKG’s capacity to 6.0 MMT, holding its place as the third-largest containerboard maker in the US.
Nike (NKE) is up more than +3% to lead gainers in the Dow Jones Industrials after Argus Research upgraded the stock to buy from hold with a price target of $85.
Hasbro (HAS) is up more than +4% after Goldman Sachs upgraded the stock to buy from neutral with a price target of $85.
Ryder System (R) is up more than +4% after Wolfe Research upgraded the stock to outperform from peer perform with a price target of $183.
CH Robinson Worldwide (CHRW) is up more than +2% after Wolfe Research upgraded the stock to outperform from peer perform with a price target of $112.
Trade Desk (TTD) is up more than +1% after Citibank raised its price target on the stock to $90 from $82.
Earnings Reports (7/1/2025)
Constellation Brands Inc (STZ), Greenbrier Cos Inc/The (GBX), MSC Industrial Direct Co Inc (MSM), TechTarget Inc (TTGT).
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 Pressured as Bond Yields Climb on Strong US Economic News

The S&P 500 Index ($SPX) (SPY) today is down -0.22%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.28%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.38%. September E-mini S&P futures (ESU25) are down -0.24%, and September E-mini Nasdaq futures (NQU25) are down -0.39%.
Stock indexes today are mostly lower, with the S&P 500 and Nasdaq 100 consolidating below Monday's all-time highs. Tesla is down more than -6% to lead technology stocks lower and weigh on the overall market after President Trump threatened to withdraw subsidies from Elon Musk's companies after Musk criticized the Republican reconciliation bill. The markets are also monitoring progress on trade talks ahead of President Trump's July 9 deadline, and Congress is wrangling over passage of President Trump's tax and spending bill.
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The Senate is still considering the Republican reconciliation bill, with Treasury Secretary Bessent predicting the Senate will pass the bill later today. The reconciliation bill has the debt ceiling hike that is necessary to avert a Treasury default when the Treasury runs out of borrowing authority somewhere between mid-August and late-September. The dollar index fell to a 3-1/3 year low today as the nonpartisan Congressional Budget Office estimates that the bill would add nearly $3.3 trillion to US deficits over the next decade. After the Senate passes the bill, it will go back to the House for their consideration.
Better-than-expected manufacturing news from China is supportive of global economic growth prospects. The China June Caixin manufacturing PMI rose +2.1 to 50.4, stronger than expectations of 49.3.
On the negative side for stocks is the upcoming earnings season, which begins next week. Bloomberg Intelligence data show that the consensus for Q2 earnings of S&P 500 companies is for a rise of +2.8% year-over-year, the smallest increase in two years. Also, only six of the 11 S&P 500 sectors are projected to post an increase in earnings, the fewest since Q1 of 2023, according to Yardeni Research.
During this holiday-shortened week, the markets will look for additional trade and tariff news along with progress in the passage of President Trump's tax bill. Later today, the June ISM manufacturing index is expected to climb by +0.2 to 48.7. Also, today, the May JOLTS job openings are expected to fall -91,000 to 7.3 million. Finally, Fed Chair Powell participates in a panel discussing monetary policy with BOE Governor Bailey, ECB President Lagarde, and BOJ Governor Ueda at the ECB's annual retreat in Portugal. On Wednesday, the June ADP employment change is expected to rise by +90,000. On Thursday, Jun nonfarm payrolls are expected to climb by +113,000, and the June employment rate is expected to tick up +0.1 to 4.3%. Also, June average hourly earnings are expected to rise +0.3% m/m and +3.8% y/y. In addition, weekly initial unemployment claims are expected to climb +5,000 to 241,000, and May factory orders are expected to jump +8.1% m/m. Finally, the Jun ISM services index is expected to climb +0.7 to 50.6.
Federal funds futures prices are discounting the chances at 19% for a -25 bp rate cut at the July 29-30 FOMC meeting.
Overseas stock markets today are mixed. The Euro Stoxx 50 is down -0.52%. China's Shanghai Composite closed up +0.39%. Japan's Nikkei Stock 225 closed down -1.24%.
Interest Rates
September 10-year T-notes (ZNU25) today are down by -3 ticks. The 10-year T-note yield is up +0.4 bp to 4.232%.
Sep T-notes fell from a 2-month high today and turned lower, and the 10-year T-note yield rebounded from a 2-month low of 4.185% and turned higher. Speculation that Congress is close to passing President Trump's tax and spending bill has sparked long liquidation in T-notes. The Congressional Budget Office estimates that the bill would add nearly $3.3 trillion to US deficits over the next decade, which would boost supply pressures as the Treasury is forced to increase sales of government debt to fund the deficits.
T-note prices today initially moved higher on carryover support from strength in European government bonds. T-notes are also climbing as positive trade news has bolstered hopes for smaller-than-expected tariffs, which have eased inflation concerns and are bullish for T-notes. In addition, weakness in stocks today has boosted safe-haven demand for T-notes.
European government bond yields today are moving lower. The 10-year German bund yield is down -4.3 bp to 2.564%. The 10-year UK gilt yield dropped to an 8-week low of 4.417% and is down -4.6 bp to 4.443%.
The Eurozone June CPI edged up to +2.0% y/y from +1.9% y/y in May, right on expectations. The June core CPI was unchanged from May at +2.3% y/y, right on expectations.
The ECB May 1-year CPI inflation expectations unexpectedly eased to +2.8% from +3.1% in Apr, versus expectations of no change at +3.1%. The May 3-year CPI expectations unexpectedly eased to +2.4% from +2.5% in Apr versus expectations of no change at +2.5%.
The Eurozone June manufacturing PMI was revised upward by +0.1 to 49.5 from the previously reported 49.4.
The German June unemployment change rose +11,000, showing a stronger labor market than expectations of +15,000. The Jun unemployment rate was unchanged at 6.3%, showing a stronger labor market than expectations of an increase to 6.4%.
Swaps are discounting the chances at 6% for a -25 bp rate cut by the ECB at the July 24 policy meeting.
US Stock Movers
Tesla (TSLA) is down more than -6% to lead losers in the S&P 500 and Nasdaq 100 as President Trump threatened to withdraw government subsidies from Elon Musk's companies after Musk criticized Trump's tax and spending bill. Analysts estimate that changes to regulatory credits could threaten up to 40% of Tesla's profits.
Weakness in chip stocks is a negative factor for the overall market. Advanced Micro Devices (AMD) is down more than -2%. Also, Nvidia (NVDA), Broadcom (AVGO), ASML Holding NV (ASML), Lam Research (LRCX), and KLA Corp (KLAC) are down more than -1%.
Warner Bros Discovery (WBD) is down more than -4% after holder Advance/Newhouse planned to sell as much as $1.1 billion of its holdings in WBD via an overnight unregistered block trade.
Dyne Therapeutics (DYN) is down more than -7% after offering 24.2 million shares of its common stock in an underwritten public offering at a price of $8.25 per share, below Monday's closing price of $9.52.
AeroVironment (AVAV) is down more than -6% after announcing plans to sell $750 million worth of shares of its common stock in an underwritten public offering and $600 million of aggregate convertible senior notes due 2020.
Sweetgreen Inc (SG) is down more than -5% after TD Cowen downgraded the stock to hold from buy.
US-listed Macau casino operators are climbing today after Macau's monthly gaming revenue rose +19% y/y in June, above expectations of a +9.4% y/y gain. As a result, Wynn Resorts Ltd. (WYNN) is up more than +8% to lead gainers in the S&P 500. Also, Las Vegas Sands (LVS) is up more than +7% and MGM Resorts International (MGM) is up more than +4%.
Nike (NKE) is up more than +3% to lead gainers in the Dow Jones Industrials after Argus Research upgraded the stock to buy from hold with a price target of $85.
Trade Desk (TTD) is up more than +2% to lead gainers in the Nasdaq 100 after Citibank raised its price target on the stock to $90 from $82.
Hasbro (HAS) is up more than +2% after Goldman Sachs upgraded the stock to buy from neutral with a price target of $85.
Ryder System (R) is up more than +2% after Wolfe Research upgraded the stock to outperform from peer perform with a price target of $183.
CH Robinson Worldwide (CHRW) is up more than +1% after Wolfe Research upgraded the stock to outperform from peer perform with a price target of $112.
Earnings Reports (7/1/2025)
Constellation Brands Inc (STZ), Greenbrier Cos Inc/The (GBX), MSC Industrial Direct Co Inc (MSM), TechTarget Inc (TTGT).
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 See Pressure as Reconciliation Bill Inches through Congress

Below is Validea's guru fundamental report for KLA CORP (KLAC). Of the 22 guru strategies we follow, KLAC rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
KLA CORP (KLAC) is a large-cap growth stock in the Semiconductors industry. The rating using this strategy is 82% 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 KLA CORP
More Information on Warren Buffett
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
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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.

KLA Corporation

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