Meta Platforms, Inc. engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables worldwide. It operates in two segments, Family of Apps and Reality Labs. The Family of Apps segment offers Facebook, which enables people to share, discuss, discover, and connect with interests; Instagram, a community for sharing photos, videos, and private messages, as well as feed, stories, reels, video, live, and shops; Messenger, a messaging application for people to connect with friends, family, communities, and businesses across platforms and devices through text, audio, and video calls; and WhatsApp, a messaging application that is used by people and businesses to communicate and transact privately. The Reality Labs segment provides augmented and virtual reality related products comprising consumer hardware, software, and content that help people feel connected, anytime, and anywhere. The company was formerly known as Facebook, Inc. and changed its name to Meta Platforms, Inc. in October 2021. The company was incorporated in 2004 and is headquartered in Menlo Park, California

Meta Platforms, Inc.

NVIDIA Corporation NVDA is all set to report its much-awaited fiscal 2026 second-quarter (ended July 30) earnings after the closing bell on Aug. 27. This announcement could be pivotal for NVIDIA, particularly following its recent agreement with the U.S. government to re-enter the Chinese market and amid record-high data center spending. Therefore, it is important to explore the strategic actions investors can consider before the upcoming earnings report.
NVIDIA Gears Up for Explosive Q2 Results
It’s been nearly three months since NVIDIA reported fiscal first-quarter results. Its revenues of $44.1 billion were up 69% year over year. A similar performance is expected in the fiscal second quarter as well, with revenues projected at $46.03 billion, up 53.2% year over year.
Furthermore, NVIDIA’s earnings per share (EPS) are expected to come in at $1.00 compared to $0.68 in the same quarter a year ago, representing a 47.1% year-over-year increase. NVIDIA’s trailing four-quarter earnings surprise, on average, is a positive 3.9%, which suggests that the stock may deliver second-quarter growth.
Image Source: Zacks Investment Research
Why NVIDIA Could Post Solid Q2 Results?
NVIDIA’s new-generation Blackwell Ultra graphics processing units (GPUs) architecture is experiencing significant demand because it can execute artificial intelligence (AI) tasks 50 times quicker than the previous Hopper architecture. The shipping of these Blackwell Ultra GB300 GPUs started in large quantities during the latter half of the year. Since the fiscal second quarter includes July, there is a strong possibility that the sales of Blackwell Ultra GB300 GPU will enhance NVIDIA’s revenues and profits.
In the fiscal first quarter, NVIDIA lost $2.5 billion in sales and incurred a $4.5 billion charge due to the U.S. government restrictions on selling its H20 chips to China. However, in April, the Trump administration permitted NVIDIA to export its H20 chips to China, stipulating that the company must share 15% of its revenues from the sales of this chip with the government. Now, with NVIDIA expected to sell chips worth $8 billion to China in the fiscal second quarter, there is a strong possibility that removing the export restrictions will assist the company in recovering some of the revenues lost in the previous quarter and enhance its performance in the reporting quarter.
Buy, Hold, or Sell NVIDIA Stock Ahead of Q2 Earnings?
With NVIDIA’s H20 chips heading to China, and the demand for Blackwell chips remaining strong, an upbeat fiscal second-quarter results are on the cards, typically driving its stock price higher. Additionally, the future looks promising for NVIDIA as the company is set to benefit from ongoing growth in data center capital expenditures (capex). Its GPUs, which power data centers, are in demand as customers plan to increase their capex to establish more AI data centers to meet rising computing capacity needs.
Alphabet Inc. GOOGL and Meta Platforms, Inc. META have increased their 2025 data center capex forecast from $75 billion to $85 billion, and from $64 billion to $66 billion, respectively. Amazon.com, Inc. AMZN anticipates that its capex for data centers in 2025 will reach a record $118 billion, while Microsoft Corporation’s MSFT capex has already reached $88 billion for the fiscal year 2025, which concluded on June 30.
Therefore, it’s prudent for NVIDIA stakeholders to retain their stock for potential long-term benefits. New investors should wait until NVIDIA’s fiscal second-quarter results either surpass or align with analysts’ forecasts for the stock to rise further.
Given that NVIDIA’s top customers are boosting their capex in data centers, it’s unlikely that the fiscal second-quarter results will underperform expectations, presenting a timely opportunity for new investors to purchase the stock.
For now, NVIDIA has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
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NVIDIA to Post Q2 Earnings: Buy, Hold, or Take Profits?

Pinterest PINS and Meta Platforms, Inc. META are both major players in the evolving social media space. Operating as one of the leaders in the social commerce domain, Pinterest offers its viewers visual recommendations on a variety of subjects like weddings, fashion, or fitness. The company has gained significant popularity among Gen Z and millennials who are more active on immersive mobile platforms. The platforms have been endorsed by advertisers and retailers across multiple domains who are aiming to target this specific customer segment.
Meta Platform is the world’s largest social media platform offering services through multiple popular applications such as Facebook, Instagram and WhatsApp. Owing to its worldwide strong presence and greater reach, it has created a strong foothold in the digital advertising space.
According to a report by Grand View Research, the global social commerce market is expected to reach $17.83 trillion by 2033, witnessing a CAGR of 36.4% from 2025 to 2033. The social media giants like Pinterest and META are intensifying their efforts to gain a firmer footing in this expanding market.
The Case for PINS
Pinterest is increasingly establishing a unique value proposition to advertisers that could provide a competitive advantage in the long run. Through various innovations, it continues to dramatically improve the advertising platform, which presently appears to be one of the best ad platforms for consumer discretionary brands looking for new ways to reach customers and stretch smaller ad budgets.
The company has witnessed consistent user growth across all regions in the past several quarters. In the second quarter of 2025, global monthly active users (MAUs) reached 578 million, a record high for the company. Pinterest is taking various initiatives to bring more actionable content on the platform from a wide range of sources such as users, creators, publishers and retailers. This has resulted in a solid improvement in engagement metrics like sessions, impressions and saves across all regions.
Pinterest's debt-to-capital ratio stands at 0.0%. Its current ratio stands at 8.76, while its cash ratio is 6.62. As of June 30, 2025, Pinterest had $1.21 billion in cash and cash equivalents and $137.4 million of operating lease liabilities.
However, the company faces fierce competition from other social media giants such as META, SNAP Inc. SNAP and X.com. META and SNAP both have a strong presence in the social ecommerce space. To gain a competitive edge and enhance its global reach, Pinterest has been aggressively expanding into new markets and introducing new AI-powered tools for advertisers. This is increasing user engagement but also driving up expenses. In the second quarter, Total costs and expenses were $1 billion, up from $875.1 million in the year-ago quarter. On a GAAP basis, research and development expenses rose to $359.6 million from $312.8 million. This is straining its margin.
Moreover, Pinterest heavily relies on advertising as its primary source of revenue. Its net sales are affected by seasonality, and despite signs of stabilization, the recovery of the digital ads market remains.
The Case for META
META connects with a large user base worldwide. During the second quarter of 2025, Family Daily Active People or DAP, defined as a registered and logged-in user who visited at least one of the Family products (Facebook, Instagram, Messenger and/or WhatsApp) on a given day, was 3.48 billion, up 6.4% year over year. Access to such a large user base makes META ideal for broad campaigns and global brands.
META is also steadily investing in an AI capability to increase engagement across its platforms. Improvements in AI-powered recommendation systems have led to 5% increase in time spent on Facebook and 6% on Instagram in the second quarter of 2025. Meta Advantage +, which offers a suite of advertising products that optimize campaign performance in Facebook and Instagram, leveraging AI, is gaining strong popularity. META’s Instagram has emerged as one of the primary competitors for Pinterest. Instagram has strong e-commerce integration, enabling users to shop directly from posts.
Meta boasts a robust balance sheet. As of June 30, 2025, cash & cash equivalents and marketable securities were $47.07 billion. Its current ratio stands at 1.97. A current ratio above 1 suggests that a company is well-positioned to meet its short-term obligations. Debt to capital ratio stands at 12.9% compared to the industry’s 15.8%. Meta’s strong liquidity position will enable it to make further investments in product development and acquisitions in the future.
However, macroeconomic challenges and tariff uncertainties remain a concern for the company’s advertising business. META is also facing stiff competition from YouTube, Snap and Pinterest.
How Do Zacks Estimates Compare for PINS & META?
The Zacks Consensus Estimate for Pinterest’s 2025 sales and EPS implies year-over-year growth of 15.62% and 34.88%, respectively. The EPS estimates have declined over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for META’s 2025 sales implies year-over-year growth of 19.1%, while EPS implies a growth of 17.27% year over year. The EPS estimates have improved over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of PINS & META
Over the past year, Pinterest has gained 10.5% while Meta has surged 41.3% over the same period.
Image Source: Zacks Investment Research
PINS looks more attractive than META from a valuation standpoint. Going by the price/book ratio, PINS’s shares currently trade at 4.92 book value, lower than 9.52 for Meta.
Image Source: Zacks Investment Research
PINS or META: Which is a Better Pick?
Pinterest and META carry a Zacks Rank #3 (Hold) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Both companies are taking several strategic initiatives to drive user engagement across the platform. Upward estimate revisions showcase growing investors' confidence in Meta. With a strong AI focus, improvement in monetization opportunities, and better price performance, Meta appears to be a better investment option.
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PINS vs META: Which Social Media Stock is a Smart Investment Now?

The SMI 3Fourteen Full-Cycle Trend ETF is seeing unusually high volume in afternoon trading Friday, with over 600,000 shares traded versus three month average volume of about 65,000. Shares of FCTE were up about 0.8% on the day.
Components of that ETF with the highest volume on Friday were Walmart, trading off about 0.6% with over 15.0 million shares changing hands so far this session, and Meta Platforms, up about 1.7% on volume of over 6.5 million shares. Waters is the component faring the best Friday, higher by about 4.5% on the day, while Mckesson is lagging other components of the SMI 3Fourteen Full-Cycle Trend ETF, trading lower by about 1.8%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Friday's ETF with Unusual Volume: FCTE

Reddit’s RDDT vast repository of authentic conversations is a key catalyst to its monetization strategy, with data licensing emerging as a high-margin growth driver. The 20-year archive has positioned Reddit as the most cited domain for AI training, creating a durable foundation for data licensing, which boosted second-quarter 2025 other revenues by 24% year over year to $34.8 million. The Zacks Consensus Estimate for third-quarter other revenues is pegged at $34.9 million, implying continued traction.
According to Grand View Research, the global AI datasets and licensing market was estimated at $381.8 million in 2024 and is expected to reach $1.59 billion by 2030, reflecting a CAGR of 26.8%. With AI developers seeking large, high-quality conversational datasets, Reddit’s archive of user-generated content is positioned as a differentiated and scalable resource for growth.
Expanding engagement through features like Reddit Answers, which reached 6 million weekly users as of the second quarter of 2025 and machine translation across 23 languages, both of which are broadening participation and enriching the platform’s dataset. Daily Active Uniques (DAUq) grew 21% year over year to 110.4 million, while Weekly Active Uniques (WAUq) advanced 22% to 416.4 million in the recently reported quarter. The Zacks Consensus Estimate for third-quarter DAUq is pegged at 113.8 million, while the consensus mark for WAUq is pegged at 430.9 million, suggesting sustained momentum.
By anchoring its licensing strategy to a growing base of authentic conversations, Reddit is establishing a self-reinforcing model. Stronger engagement expands the archive, which deepens its utility for AI training and opens incremental avenues for revenue appreciation. This flywheel effect, alongside supportive industry trends, signals the potential for durable growth in data licensing over time.
RDDT Faces Competition in Data Licensing
Reddit faces significant competition from larger technology platforms, particularly Meta Platforms META and Alphabet GOOGL. Both Meta Platforms and Alphabet generate massive volumes of user-generated content across Facebook, Instagram and Google’s services, giving them substantial data repositories for AI training. Meta’s vast social graph and Alphabet’s search and YouTube datasets provide scale advantages that rival Reddit’s value proposition.
However, Reddit’s differentiated archive of authentic, community-driven conversations remains unique in structure and context, offering a specialized dataset not easily replicated. Despite Meta Platforms and Alphabet’s dominance, Reddit’s content depth continues to serve as a distinct advantage in data licensing.
Reddit’s Share Price Performance, Valuation and Estimates
Reddit shares have jumped 33.8% year to date, while the broader Zacks Computer & Technology sector and the Internet Software industry increased 10.8% and 17.6%, respectively.
RDDT's YTD Price Performance
Image Source: Zacks Investment Research
Reddit stock is trading at a premium, with a forward 12-month Price/Sales of 16.51X compared with the industry’s 5.55X. RDDT has a Value Score of F.
RDDT's Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at 49 cents per share, up by 17 cents over the past 30 days, implying a significant improvement from the year-ago quarter’s earnings of 16 cents per share.
Reddit Inc. Price and Consensus
Reddit currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
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Can Reddit's Data Licensing Momentum Drive More Upside in the Stock?

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $1.1 billion dollar inflow -- that's a 0.2% increase week over week in outstanding units (from 1,017,750,000 to 1,019,400,000). Among the largest underlying components of IVV, in trading today Amazon.com Inc (Symbol: AMZN) is down about 0.6%, Meta Platforms Inc (Symbol: META) is down about 0.9%, and Broadcom Inc (Symbol: AVGO) is lower by about 0.1%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average:
Looking at the chart above, IVV's low point in its 52 week range is $484 per share, with $649.31 as the 52 week high point — that compares with a last trade of $640.52. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
RKT shares outstanding history
Top Ten Hedge Funds Holding SBSI
VACH shares outstanding history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy ETF Inflows: IVV, AMZN, META, AVGO

Short sellers are wagering against top AI stocks currently, which has earned them billions. On Wednesday, the Nasdaq Composite fell 0.7%, capping a two-day decline of 1.5% as concerns about the sustainability of the AI boom made the rounds.
According to data from S3 Partners, short sellers amassed $5.6 billion on wagers against AI-linked companies in just two trading sessions.
Big Tech Takes a Hit
Among the Magnificent Seven, Meta META has been the hardest hit, down 4% over the past five sessions. NVIDIA NVDA slipped 3.8%, while Microsoft MSFT and Apple AAPL fell nearly 3% each. Alphabet GOOG also fell about 1%. Short bets against these five giants alone led to $2.8 billion in profits for investors over the past two days.
Sharp Losses Outside the Tech Biggies
Beyond Big Tech, losses were steeper. Advanced Micro Devices AMD slid more than 10% in the last week, while Broadcom AVGO and Micron MU each fell over 5%. AI data center operator CoreWeave CRWV — seen as an AI “pure play” — nosedived 24% in the same period.
Meta and Palantir Under Pressure
Meta has made huge investments in AI. Despite this, short sellers increased positions worth $4.7 billion over the past week, reaping $1.1 billion in profits in just two days. Meanwhile, Palantir PLTR, which had surged more than 150% since April, has now fallen over 15% in its longest losing streak since March. Investors shorting Palantir have gained more than $1 billion.
AI Bubble Speculations
The recent downturn has been fueled by shifting sentiment. On Monday, researchers for MIT’s Project NANDA released a report saying 95% of companies it studied are getting no return on AI. The findings of the report were first detailed by Fortune, as quoted on Yahoo Finance.
Moreover, OpenAI CEO Sam Altman recently indicated that the industry may be in a bubble reminiscent of the dot-com crash. DA Davidson analyst Gil Luria compared the selloff to a pendulum swing, indicating that AI still has “limited applications” outside of chatbots and search. This has tempered enthusiasm among investors, as quoted on Yahoo Finance.
Any Silver Lining?
AI bulls like Wedbush’s Dan Ives remain optimistic. He described the current pullback as temporary and said AI will continue to drive markets higher. He added that “the tech bull cycle will be well intact at least for another 2-3 years given the trillions being spent on AI.”
Inverse ETFs in Focus
Still, if you are of the view that the AI stock valuations are too stretched, you can play inverse tech-based exchange-traded funds (ETFs) at the current level.
These ETFs include the likes of ProShares UltraPro Short QQQ SQQQ, Direxion Daily Technology Bear 3X Shares TECS, MicroSectors Solactive FANG & Innovation -3X Inverse Leveraged ETN BERZ and ProShares UltraShort QQQ QID, which have gained materially. SQQQ, TECS, BERZ and QID gained 1.8%, 1.8%, 4% and 1.2%, respectively, on Aug. 21, 2025.
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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.

AI Fatigue Hits Tech Biggies: Inverse ETFs in Focus

Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
The overall earnings picture remains strong and steadily improving. We saw an above-average proportion of companies beat Q2 estimates, with expectations for the current and upcoming periods also increasing.
For the 472 S&P 500 companies that have already reported Q2 results, total earnings are up +11.2% from the same period last year on +5.7% higher revenues, with 80.3% beating EPS estimates and 78.8% beating revenue estimates.
The proportion of these 472 index members beating EPS and revenue estimates is tracking notably above the historical average for this group of companies. The Q2 EPS beats percentage of 80.3% compares to the 20-quarter average of 77.8%, while the comparison on the revenues side is 78.8% vs. 70.8%.
In terms of year-over-year growth, five sectors are expected to enjoy double-digit earnings growth in Q2: Retail (+13.1%), Finance (+14.0%), Aerospace (+26.6%), Tech (+20.7%), and Consumer Discretionary (+135.2%). On the negative side, six sectors are expected to earn less in Q2 relative to the year-earlier period, with double-digit declines at the Energy (-16.8%), Construction (-11.1%), and Autos (-23.3%) sectors.
A Favorable Estimate Revisions Trend
The revisions trend continues to remain favorable, as we have consistently been flagging in recent weeks. We see this in estimates for the current period (2025 Q3) as well as for the last quarter of the year.
For 2025 Q3, the expectation is for earnings growth of +4.8% on +5.5% revenue gains. The chart below shows how Q3 earnings growth expectations have evolved in recent weeks.
Image Source: Zacks Investment Research
Since the start of Q3 this month, estimates have modestly increased for five of the 16 Zacks sectors, including Finance, Tech, Energy, Retail, and others.
On the negative side, Q3 estimates remain under pressure for the remaining 11 Zacks sectors, with significant declines to estimates for the Medical, Basic Materials, Construction, Transportation, and other sectors.
For the Tech sector, Q3 earnings are expected to be up +10.8% from the same period last year on +11.7% higher revenues. The chart below shows how the sector’s Q3 earnings growth expectations have evolved over the last couple of months.
Image Source: Zacks Investment Research
You can look at Q3 estimates for Tech players like Meta Platforms META, Alphabet GOOGL, and others.
Meta, which reported Q2 results on July 30th, is currently expected to bring in $6.69 per share in earnings in Q3. Estimates for Meta have been on a steady upward trend, with the current $6.69 EPS estimate increasing by 14.4% over the past month and 17.4% over the past two months. Alphabet, which reported Q2 results on July 23rd, is expected to earn $2.32 per share in Q3, with the estimate up +5.9% over the past month and +7.4% over the past two months.
This positive revisions trend is even more notable for the big banks and brokers like JPMorgan, Citigroup, Goldman Sachs, and others in the Finance sector.
The Earnings Big Picture
Combining the estimates for the still-to-come S&P 500 member results with actuals from the 472 companies, total Q2 earnings are on track to increase by +12.1% from the same period last year on +6.0% higher revenues.
The chart below shows expectations for 2025 Q2 in terms of what was achieved in the preceding four periods and what is currently expected for the next three quarters.
Image Source: Zacks Investment Research
The chart below shows the overall earnings picture for the S&P 500 index on an annual basis.
Image Source: Zacks Investment Research
We have been pleasantly surprised by the aforementioned favorable revisions trend, which validates the market’s rebound from the April lows. Given the positive run of Q2 results, it will make sense for this trend to remain in place over the coming weeks as we go through this reporting cycle.
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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.

Analyzing the Q2 Earnings Season Scorecard

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

Stocks Finish Mostly Lower on Tech Stock Weakness

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