Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee worldwide. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee and tea beverages, roasted whole beans and ground coffees, single serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items. The company also licenses its trademarks through licensed stores, and grocery and foodservice accounts. The company offers its products under the Starbucks Coffee, Teavana, Seattle's Best Coffee, Ethos, Starbucks Reserve, and Princi brands. Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.

Starbucks Corporation

Key Points
This Dividend King has a high yield and trades at a bargain price.
This leading restaurant brand offers a high yield as its new CEO implements a promising strategy to return the business to growth.
This top dividend stock is also delivering double-digit growth on the bottom line.
Investors looking for solid income stocks to boost their passive income can find some attractive opportunities in 2025. The past few years have seen high inflation and interest rates put pressure on the financial results and share prices of top consumer brands. This has driven the dividend yield up to attractive levels for several top companies.
To give you some ideas, three Fool.com contributors believe Target (NYSE: TGT), Starbucks (NASDAQ: SBUX), and Philip Morris (NYSE: PM) are solid buys today. Here's why these companies should pay growing dividends to shareholders for years to come.
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Low price, top dividend
Jennifer Saibil (Target): It might seem surprising to hear that Target is an excellent stock to buy now, considering its declining sales. But there are good reasons to believe it can bounce back, and with its cheap price and top dividend, now could be a great time to take a position.
Target has dealt with a slew of problems over the past few years, and its stock is 62% off its highs. Things may not improve much in the short term; its most pressing problems today are that customers are still holding back on discretionary purchases due to inflation, and home improvement is still suffering from a low real estate market. In the 2025 fiscal first quarter (ended May 3), sales were down 2.8% from last year, and comparable sales (comps) were down 3.8%.
However, it's making progress in certain key areas, like keeping costs down, and operating income increased 19% year over year. It's also still a star in omnichannel options. Digital comps increased 4.7% over last year in the first quarter, and same-day delivery sales in the membership program were up 35%.
Management initiated a new enterprise acceleration office to focus on how the company can leverage technology and data to improve its connectedness and agility. Its goals are improving functionality and speed, and that complements its digital strength.
Target was in a similar situation in 2017 before the pandemic, and at that time, it invested in digital channels before it was what everyone was doing. That put it in a great position to excel early in the pandemic, and today it's following a similar playbook.
Shareholders may be lamenting the price drop, but they're still enjoying the top dividend. Target is a Dividend King, having raised its dividend 54 years straight. That indicates reliability and growth. At the current price, the dividend yields 4.4%.
If you don't own the stock, you can buy today while it's trading at a bargain price-to-earnings (P/E) ratio of only 11. If you can buy and hold for 20 years, you're likely to be well rewarded, from both the stock and the dividend.
Starbucks offers an appetizing yield of 2.6%
John Ballard (Starbucks): Starbucks stock has underperformed the market indices the past few years. In fact, it's still trading at about the same share price in 2019. But the company has continued to grow its dividend, bringing the yield up to an attractive 2.61%.
Starbucks' business is not performing well. Sales have fallen over the past year, but its comparable-store sales are starting to flatten, down just 1% year over year in the company's March-ending fiscal Q2.
New CEO Brian Niccol, who came over from Chipotle last year, appears to be the right leader to turn Starbucks around. Niccol is focusing on building a customer-centric brand and turning Starbucks' coffeehouses into places where customers want to hang out again. This follows a proven strategy that if you take care of customers first, everything else falls into place.
Starbucks is the McDonald's of coffee. That is a good or bad thing, depending on your perspective. From a dividend investor's view, it's a good thing. With a Starbucks on every corner, it has tremendous global presence and scale that produces overall consistent financial results and dividend payments.
Over the last five years, the dividend grew from $1.44 in fiscal 2019 (ended in September) to $2.28 in fiscal 2024. At the current quarterly payment of $0.61, Starbucks should pay $2.44 for fiscal 2025. This is even as weak sales are expected to send adjusted earnings down to $2.47 this year, which is enough to cover the dividend, especially as Starbucks returns to earnings growth over the next few years.
Starbucks has the brand to get back on track, especially with a talented CEO at the helm. The stock offers solid value right now that can potentially pay growing dividends for a lifetime.
A great combination of growth and dividends
Jeremy Bowman (Philip Morris International): One dividend stock that looks well-positioned to deliver for investors over the next two decades is Philip Morris International.
Philip Morris International was formed in the divorce between Altria and Philip Morris in 2007. Altria kept the domestic business, while PMI sold the same products in international market. That's proven to be the more favorable side of the business, as smoking rates remain higher in places like Europe, Latin America, and Asia, and have not declined as fast as in the U.S.
Meanwhile, PMI has also innovated with next-gen, smoke-free products like Iqos, heat-not-burn devices, which function like vapes but use real tobacco instead of liquid, and it has found success with Zyn oral nicotine pouches, which it gained in its acquisition of Swedish Match in 2022. In fact, the success of its next-gen products may be the best reason to buy Philip Morris stock today, as they now make up more than 40% of its revenue.
Unlike its big tobacco peers, Philip Morris is delivering impressive growth, bucking the expectations of declines in the industry.
In the first quarter, organic revenue, which strips out the effect of currency exchange, acquisitions, and divestitures, rose 10.2% to $9.3 billion. That included 20.4% organic growth in the smoke-free business to $3.9 billion. Even cigarette sales are still growing as well, with volume sales up 1.1% in the period to $144.8 billion in the quarter.
The company also delivered strong growth on the bottom line, with adjusted earnings per share up 17% to $1.76. As a dividend payer, the company offers a yield of 3% today, and it has a long track record of raising its payout, dating back to its days when it was tied to Altria.
With the strength of its new products and the resilience of its cigarette business, Philip Morris should remain a rewarding dividend stock for years to come.
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Jennifer Saibil has no position in any of the stocks mentioned. Jeremy Bowman has positions in Chipotle Mexican Grill, Starbucks, and Target. John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill, Starbucks, and Target. The Motley Fool recommends Philip Morris International and recommends the following options: short June 2025 $55 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Magnificent Dividend Stocks to Buy Today and Hold for 20 Years

Can Toast Thrive in the Restaurant Renaissance?

At Holdings Channel, we have reviewed the latest batch of the 21 most recent 13F filings for the 06/30/2025 reporting period, and noticed that Starbucks Corp. (Symbol: SBUX) was held by 14 of these funds. When hedge fund managers appear to be thinking alike, we find it is a good idea to take a closer look.
Before we proceed, it is important to point out that 13F filings do not tell the whole story, because these funds are only required to disclose their long positions with the SEC, but are not required to disclose their short positions. A fund making a bearish bet against a stock by shorting calls, for example, might also be long some amount of stock as they trade around their overall bearish position. This long component could show up in a 13F filing and everyone might assume the fund is bullish, but this tells only part of the story because the bearish/short side of the position is not seen.
Having given that caveat, we believe that looking at groups of 13F filings can be revealing, especially when comparing one holding period to another. Below, let's take a look at the change in SBUX positions, for this latest batch of 13F filers:
In terms of shares owned, we count 4 of the above funds having increased existing SBUX positions from 03/31/2025 to 06/30/2025, with 7 having decreased their positions and 1 new position.
Looking beyond these particular funds in this one batch of most recent filers, we tallied up the SBUX share count in the aggregate among all of the funds which held SBUX at the 06/30/2025 reporting period (out of the 1,122 we looked at in total). We then compared that number to the sum total of SBUX shares those same funds held back at the 03/31/2025 period, to see how the aggregate share count held by hedge funds has moved for SBUX. We found that between these two periods, funds increased their holdings by 1,487,929 shares in the aggregate, from 10,912,448 up to 12,400,377 for a share count increase of approximately 13.64%. The overall top three funds holding SBUX on 06/30/2025 were:
We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like Starbucks Corp. (Symbol: SBUX).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

See Which Of The Latest 13F Filers Holds SBUX

Dutch Bros Inc. BROS is leaning into innovation as a key lever to boost traffic and deepen customer engagement across its rapidly growing footprint.
In first-quarter 2025, the coffee chain rolled out a series of creative limited-time offerings (LTOs), including Sweet Cereal Sips and the Spring Fever Dream Trio, playful concoctions featuring nostalgic flavors and eye-catching elements like Poppin’ Boba and rubber ducks. These menu innovations helped the company lap last year’s strong LTOs, driving solid same-shop transaction growth of 1.3% and overall revenue growth of 29%.
But Dutch Bros is not stopping at beverages. A new food pilot has expanded from eight to 32 shops, testing hot protein items aimed at capturing additional morning visits, a highly competitive daypart. While food currently accounts for less than 2% of sales, leadership sees it as a strategic opportunity to lift frequency and beverage attachment without compromising throughput or employee satisfaction. Early results are promising, with further expansion and a broader rollout expected in 2026.
This innovation-driven approach is part of a broader strategy to develop multiple sales layers, supported by the Dutch Rewards loyalty program, now responsible for 72% of transactions, and a growing Order Ahead business, which has reached 11% of the mix.
As competition in the beverage sector intensifies, Dutch Bros’ ability to turn product experimentation into sustained foot traffic could be pivotal.
How Dutch Bros Stacks Up Against Starbucks and Krispy Kreme
In the race to drive customer traffic through innovation, Dutch Bros faces strong competition from both legacy brands and reinvented players. Starbucks SBUX continues to lead in beverage innovation and digital engagement, frequently launching seasonal drinks and leveraging its mobile app and loyalty program to drive repeat visits. Its extensive food menu gives Starbucks a strong edge in the morning daypart, an area Dutch Bros is aggressively targeting with the new food pilot.
On the other hand, Krispy Kreme DNUT is broadening its brand beyond doughnuts, with increasing emphasis on coffee and limited-time beverage offerings. Krispy Kreme is testing new menu combinations and partnerships to encourage bundled purchases and drive frequency, particularly during breakfast and snack hours.
BROS’ Price Performance, Valuation and Estimates
Dutch Bros stock has lost 10% in a month against the industry and the S&P 500’s growth of 1.7% and 4.3%, respectively.
Image Source: Zacks Investment Research
BROS is trading at a premium to the industry, with a forward 12-month price-to-sales of 5.8X. The figure is well above the industry average of 4.03X.
P/S(F12M)
Image Source: Zacks Investment Research
Over the past 30 days, BROS' 2025 earnings estimates have inched down to 59 cents per share from 61 cents.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Dutch Bros Expands Menu: Can Innovation Drive Foot Traffic?

Union Pacific announced that its Board of Directors today voted to increase the quarterly dividend on the Company's common shares by 3% to $1.38 per share. The dividend is payable September 30, 2025, to shareholders of record August 29, 2025. Union Pacific has paid dividends on its common stock for 126 consecutive years. "Union Pacific continues to drive strong and growing cash returns for our shareholders," said Jennifer Hamann, executive vice president and chief financial officer. "Today's action delivers on that commitment and marks our 19th consecutive year of increased annual dividends per share."
Costco Wholesale today announced that its Board of Directors has declared a quarterly cash dividend on Costco common stock of $1.30 per share. The quarterly dividend is payable August 15, 2025, to shareholders of record at the close of business on August 1, 2025.
Scholastic announced today that its Board of Directors declared a quarterly cash dividend of $0.20 per share on the Company's Class A and Common Stock for the first quarter of fiscal 2026. The dividend is payable on September 15, 2025, to all shareholders of record as of the close of business on August 29, 2025.
The Board of Directors of Sonoco has declared a $0.53 per share quarterly common stock dividend. This dividend will be paid on September 10, 2025, to shareholders of record as of August 8, 2025. According to Howard Coker, President and Chief Executive Officer, this is the 401st consecutive quarter and 100th year dating back to 1925, that Sonoco has paid dividends to shareholders, and is the 42nd consecutive year the Company has increased its annualized dividend. Based on the closing price of Sonoco's common stock on July 15, 2025, the Company's dividend provides approximately a 4.7% yield, which is more than double the dividend yield of the S&P 500 Index.
Starbucks today announced that its Board of Directors has approved a quarterly cash dividend of $0.61 per share of outstanding Common Stock. The dividend will be payable in cash on August 29, 2025, to shareholders of record on August 15, 2025.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Daily Dividend Report: UNP,COST,SCHL,SON,SBUX

On July 3, 2025, the Chief Marketing Officer of Dutch Bros, (NYSE:BROS) Tana Davila, disclosed a sale of 5,922 shares, totaling approximately $312,366, after 14,442 shares vested as part of her compensation plan.
Transaction summary
Metric
Value
Context
Shares traded
5,922
Total shares sold in this transaction.
Transaction value
$397,366
Rounded from $397,366.20.
Post-transaction shares
12,571
Shares held after sale.
Post-transaction value
$843,514
As of July 1, 2025.
1-year performance
60.3%
One-year total return on July 1, 2025.
Company overview
Market capitalization
$8.1 billion
Revenue (TTM)
$1.26 billion
Net income (TTM)
$43.55 million
One-year price change
60.3%
Company snapshot
Dutch Bros operates and franchises drive-thru coffee shops across the United States, offering coffee, specialty beverages, and energy drinks under brands such as Dutch Bros Coffee and Blue Rebel.
With over 18,000 employees, Dutch Bros has established a significant presence in the U.S. quick-service beverage market. Its scalable drive-thru format and focus on operational efficiency support its ongoing expansion and competitive positioning.
Foolish take
Ms Davila's stock sale, worth nearly $400,000, doesn't seem out of the ordinary and is part of her vested stock options. She still holds 12,571 shares, with another 14,442 restricted stock options vesting on July 1, 2026 if she continues in her role. In total, she potentially holds stock awards worth at least $1.8 million.
Dutch Bros is still early in its innings versus larger rivals, such as Starbucks. The drive-thru coffee chain has 1,000-plus stores across the country and management looks to at least double that count over the next four years. Said another way, management has a clear vison for expansion.
However, coffee chains haven't been the most profitable businesses lately. Dutch Bros, in particluar, seems to have juiced much of its recent growth via debt as actual cash flows were lacklustre over the last couple of quarters.
If you have an extremely long investing horizon, the current situation may not be the best indicator of the company's success. Dutch Bros may well scale up operations massively, where adding the next drive-thru location may not cost it much as it does now.
However in the near term, which I see as the next 24 months, coffee chains may not be the most profitable ventures around.
Glossary
Insider trading: Buying or selling a company's stock by someone with access to non-public, material information about the company.
Chief Marketing Officer (CMO): Senior executive responsible for marketing strategy and initiatives within an organization.
Transaction value: The total dollar amount generated from a specific securities trade or group of trades.
Post-transaction shares: The number of shares an insider holds after completing a trade.
YTD performance: Year-to-date performance; measures a security's return from the start of the calendar year to the present.
Median trade size: The middle value of all trade sizes in a data set, used to indicate typical transaction size.
Percentile: A statistical measure indicating the relative standing of a value within a data set.
Outstanding shares: Total shares of a company's stock currently held by all shareholders, including insiders and the public.
Net accumulation / net reduction: Net accumulation means more shares are bought than sold; net reduction means more are sold than bought.
Franchised segment: Part of a business operated by independent owners (franchisees) under the company's brand and business model.
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Isac Simon has no position in any of the stocks mentioned. The Motley Fool recommends Dutch Bros. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

CMO Sells Dutch Bros Shares Worth Nearly $400,000

In the latest trading session, Starbucks (SBUX) closed at $90.58, marking a -1.81% move from the previous day. The stock's change was less than the S&P 500's daily loss of 1.07%. Elsewhere, the Dow lost 0.97%, while the tech-heavy Nasdaq lost 1.19%.
Coming into today, shares of the coffee chain had lost 9.96% in the past month. In that same time, the Retail-Wholesale sector gained 0.46%, while the S&P 500 lost 0.36%.
The investment community will be paying close attention to the earnings performance of Starbucks in its upcoming release. The company is forecasted to report an EPS of $0.66, showcasing a 26.67% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $9.33 billion, down 1% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.11 per share and a revenue of $37.33 billion, indicating changes of -6.04% and +3.18%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Starbucks. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.25% lower. As of now, Starbucks holds a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, Starbucks is holding a Forward P/E ratio of 29.65. Its industry sports an average Forward P/E of 24.99, so one might conclude that Starbucks is trading at a premium comparatively.
Investors should also note that SBUX has a PEG ratio of 2.71 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 2.31.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 80, placing it within the top 32% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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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.

Starbucks (SBUX) Falls More Steeply Than Broader Market: What Investors Need to Know

Starbucks' China Challenge and Decoding Meta's AI Push

(RTTNews) - Starbucks is tightening its return-to-office policy, requiring corporate employees to be on-site four days a week starting in October.
The move, announced Monday by CEO Laxman Narasimhan in a letter to employees, is part of a broader push to strengthen in-person collaboration and accelerate the company's ongoing business transformation.
Acknowledging that not everyone may agree with the new requirement, Starbucks is offering a one-time voluntary exit package, including a cash payment, for those who choose to leave rather than increase their in-office presence.
"We've listened and thought carefully," Narasimhan wrote. "But as a company built on human connection, and given the scale of the turnaround ahead, we believe this is the right path."
In addition to the new attendance mandate, all corporate "people leaders" must relocate to Seattle or Toronto within the next 12 months a shift from the company's previous requirement, which applied only to vice presidents. Employees in non-leadership roles will not be required to relocate, though all future hires and internal transfers will need to be based in one of the two cities.
The decision comes amid broader corporate efforts to reduce remote work. Major employers like Amazon, Google, and Walmart have also mandated more frequent office attendance, citing the benefits of collaboration and productivity.
The policy change follows recent cost-cutting measures at Starbucks, including the elimination of 1,100 jobs earlier this year. Shares of the company fell about 2 percent Monday as analysts questioned the effectiveness of the company's turnaround strategy, which has so far focused on simplifying operations and improving service speed.
Starbucks has around 16,000 corporate employees globally, including warehouse and roasting facility staff.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Starbucks Expands In-Office Work Mandate, Offers Exit Package For Reluctant Employees

The S&P 500 Index ($SPX) (SPY) Monday closed up +0.14%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.20%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.33%. September E-mini S&P futures (ESU25) are up +0.14%, and September E-mini Nasdaq futures (NQU25) are up +0.30%.
Stock indexes on Monday recovered from early losses and settled higher. Short covering emerged in stocks Monday on comments from President Trump, who said he is open to more trade negotiations, including with the European Union.
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Stocks initially moved lower on Monday after President Trump ramped up tariff threats against US trading partners. Over the weekend, President Trump said the US will impose 30% tariffs on US imports from the European Union and Mexico, beginning August 1. That was a follow-up to President Trump’s announcement last Thursday that a 35% tariff on some Canadian products would take effect on August 1, up from the current 25%.
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 Monday 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.”
Monday’s trade news from China was better than expected, a positive factor for global economic growth and stocks. 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 rose by more than +1% Monday to 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 from +3.0% y/y in May. Also, on Wednesday, June manufacturing production is expected to fall by -0.1% m/m. 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 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.
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 on Monday settled mixed. The Euro Stoxx 50 closed down -0.23%. 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) Monday closed up by +1.5 ticks. The 10-year T-note yield rose by +1.6 bp to 4.425%. T-note prices on Monday recovered from early losses and settled little changed after a -2% plunge in WTI crude oil prices sparked short-covering in T-notes.
T-notes initially moved lower Monday, with Sep T-notes posting a 3-week low, and the 10-year T-note yield climbing to a 3.5-week high of 4.443%. T-notes came 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 also weighed on T-notes as the 10-year breakeven inflation rate rose to a 3.5-month high Monday of 2.405%.
T-note prices were also 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 on Monday was bearish for T-notes.
European government bond yields on Monday were mixed. The 10-year German bund yield rose to a 3.5-month high of 2.739% and finished up +0.4 bp at 2.729%. The 10-year UK gilt yield fell -2.2 bp to 4.600%.
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 limited gains in the broader market. Micron Technology (MU) closed down more than -4% to lead losers in the Nasdaq 100. Also, GlobalFoundries (GFS), Lam Research (LRCX), and Qualcomm (QCOM) closed down more than -2%. In addition, ARM Holdings Plc (ARM), NXP Semiconductors NV (NXPI), and ON Semiconductor Corp (ON) closed down more than -1%.
Energy producers and energy service providers are sliding today after WTI crude prices tumbled more than -2%. Haliburton (HAL) closed down more than -4% and APA Corp (APA) closed down more than -3%. Also, Occidental Petroleum (OXY), Schlumberger (SLB), Marathon Petroleum (MPC), Baker Hughes (BKR), Phillips 66 (PSX), and Valero Energy (VLO) closed down more than -2%. In addition, Chevron (CVX) closed down more than -2% to lead losers in the Dow Jones Industrials.
Cryptocurrency-exposed stocks moved higher after the price of Bitcoin (^BTCUSD) rose more than +1% to a new record high. MicroStrategy (MSTR) closed up more than +3%, Coinbase Global (COIN) closed up more than +1%, and Riot Platforms (RIOT) closed up nearly 1%.
Nebius Group NV (NBIS) closed up more than +17% after Goldman Sachs initiated coverage of the stock with a recommendation of buy and a price target of $68.
AppLovin (APP) closed up more than +5% to lead gainers in the Nasdaq 100 after Citigroup said the stock remains a “Top Pick” and it expects the 2025 results to fall at the high end of the company’s revenue and adjusted Ebitda forecasts.
Autodesk (ADSK) closed up more than +5% 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.
Fastenal (FAST) closed up more than +4% after reporting Q2 net sales of $2.08 billion, better than the consensus of $2.07 billion.
Gen Digital (GEN) closed up more than +1% after B Riley Securities initiated coverage on the stock with a recommendation of buy and a price target of $46.
Visteon Corp (VC) closed up more than +3% after UBS upgraded the stock to buy from neutral with a price target of $142.
Boeing (BA) closed up by more than +1% to lead gainers in the Dow Jones Industrials after investigators, in a preliminary report on last month’s Air India crash, said there was no evidence found that would require them to take action over the aircraft or its engines.
Waters (WAT) closed down more than -13% 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.
Procter & Gamble (PG) closed down more than -2% after Evercore ISI downgraded the stock to in line from outperform.
Best Buy (BBY) closed down more than -1% after Piper Sandler downgraded the stock to neutral from overweight.
Starbucks (SBUX) closed 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) closed down more than -1% after Barclays downgraded the stock to underweight from equal weight with a price target of $44.
Earnings Reports (7/15/2025)
Albertsons Cos Inc (ACI), Bank of New York Mellon Corp/The (BK), Blackrock Inc (BLK), Citigroup Inc (C), JB Hunt Transport Services Inc (JBHT), JPMorgan Chase & Co (JPM), Omnicom Group Inc (OMC), Pinnacle Financial Partners In (PNFP), State Street Corp (STT), Sun Communities Inc (SUI), Wells Fargo & Co (WFC).
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.