S&P 500 – 6,299.19 (-0.49%)

Dow Jones – 44,111.74 (-0.14%)

NASDAQ – 20,916.55 (-0.65%)

• Tariffs continue to scare investors. U.S. stocks retreated Tuesday as investors weighed disappointing economic data and fresh tariff threats from President Donald Trump, raising new concerns about the health of the economy. 
• Stagnation worries. ISM Services index flatlined in July, adding to stagflation concerns. Stagflation indicates a scenario of higher inflation and lower employment. Services makes up about 70% of the U.S. economy, so a slowdown in the sector could mean trouble ahead.
• More worrisome tariffs. President Trump told CNBC that tariffs on chips, as well as pharmaceuticals, were coming soon.
• The outlook ahead? A choppy few weeks may lie ahead, but more gains are on the horizon, says Ulrike Hoffmann-Burchardi, chief investment officer for the Americas and global head of equities at UBS Global Wealth Management.
• AI could save the day. Investor Josh Brown believes artificial intelligence is the driving force behind any potential surge in the S&P 500 to 7,000. “If we’re going to get to 7,000, it’s going to be because of the AI build out,” Brown said Tuesday on CNBC’s Halftime Report. “That is the only pillar holding up the US economic growth story right now.”
• S&P 500 managed to get another price lift. HSBC raised its year-end forecast for the S&P 500 on Tuesday, with the firm citing sentiment around artificial intelligence and policy shifts in Washington as catalysts to drive stocks higher. The firm now has a year-end target of 6,400 for the broad market index, which implies about 1.1% from where its closing level on Monday.
• Gold went higher. Gold edged higher on Tuesday, building on three days of growth amid expectations the Federal Reserve will cut interest rates next month after a spate of weaker economic data.
• Oil prices sank. Oil prices slipped on Tuesday as rising OPEC+ supply and worries of weaker global demand countered concern about U.S. Brent crude futures settled $1.12, or 1.63%, lower to $67.64 a barrel, while U.S. West Texas Intermediate crude slipped $1.13, or 1.7%, to $65.16. Both benchmarks settled to their lowest in five weeks.
• Cryptocurrency went lower. Bitcoin hit under $114,000. 
• Coinbase dropped. The stock slid as the company announced a $2 billion private offering of convertible senior notes. The company also launched embedded wallets to simplify crypto integration for developer
• AMD shares fell in after hours trading despite a revenue beat. AMD (AMD) reported its second-quarter results after Tuesday’s closing bell, missing slightly on adjusted earnings per share but topping revenue expectations. 
• Staar Surgical shares moved higher. The implantable eye lens maker soared 45% after Alcon announced it will acquire the company for $28 per share in cash, valuing Staar at roughly $1.5 billion. The deal is expected to close within six to 12 months.
• Cloud software firm DigitalOcean jumped 27%. The move came following stronger-than-expected second-quarter results. The company also lifted its full-year revenue and earnings outlook.
• Ralph Lauren received a price target increase. Needham analyst Tom Nikic raised his price target on Ralph Lauren by $25 to $335, suggesting about 10% upside from Monday’s close. Nikic maintains a buy rating on the stock.
• Palantir Technologies shares jumped. The defense tech firm topped $1 billion in quarterly revenue for the first time. Palantir also beat second-quarter earnings and revenue estimates and raised its full-year outlook.
• Pfizer gained. The pharma giant reported better-than-expected second-quarter earnings and revenue. The company also raised its full-year earnings guidance.
• Yum Brands, the parent company of KFC, Taco Bell, and Pizza Hut dipped. The company missed on both earnings and revenue expectations for the second quarter.
• DuPont de Nemours shares rose. The chemicals company beating Wall Street’s expectations for the second quarter.
• Caterpillar shares fell. The industrial giant posted weaker-than-expected earnings for the second quarter.
• Spotify climbed. The company announced it will raise premium subscription prices starting in September.
• Tyson Foods (TSN) gained. The food distributor exceeded earnings and revenue estimates and boosting its fiscal 2025 outlook.
• IDEXX Laboratories surged. The pet healthcare company delivered better-than-expected earnings and raised both its profit and revenue forecasts for 2025.
• Vertex Pharmaceuticals tumbled. The drop came after the company announced its pain drug failed to meet its primary endpoint in a Phase 2 trial and would no longer be pursued.
• Hims & Hers Health dropped. While EPS topped expectations and Q2 revenue jumped 73%, sales still fell short of analyst forecasts. The company reaffirmed full-year guidance.
• Rivian reported mixed second quarter earnings after the bell on Tuesday. The company did not report a gross profit.

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“Fears of a slowdown in the US economy along with concerns about rising inflation amid Trump’s tariffs are driving increased demand for gold." 

-ING Groep NV strategist Ewa Manthey 

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Notable Stocks

• Lemonade (LMND)
• Intel (INTC)
• AMD (AMD)
• Tesla (TSLA)
• Coin (COIN)

Weekly Notables

AMD Delivers Mixed Q2, But Q3 Forecast Signals Strength 

AMD (AMD) reported its second-quarter results after Tuesday’s closing bell, missing slightly on adjusted earnings per share but topping revenue expectations. The company posted adjusted EPS of $0.48 on revenue of $7.6 billion, compared to Wall Street forecasts of $0.49 EPS and $7.4 billion in revenue, according to Bloomberg consensus estimates.

Looking ahead, AMD offered upbeat Q3 guidance, projecting revenue between $8.4 billion and $9 billion — comfortably above analysts’ estimate of $8.3 billion. The results arrive just ahead of key earnings from rival Nvidia (NVDA), the dominant player in the AI chip space.

Tesla Reaffirms Elon Musk’s Pay Deal With New $29 Billion Stock Award

Tesla has approved a new $29 billion stock award for CEO Elon Musk, following a U.S. court’s rejection of his prior $56 billion compensation package. According to a Monday filing, Musk will pay $2 billion to purchase 96 million Tesla shares at the price set in his original 2018 pay plan, which remains under appeal. The new award, backed by a board-appointed special committee, is intended to reaffirm that original agreement.

“To recognize what Elon has accomplished and the extraordinary value he delivered to Tesla and our shareholders, we believe we must take action to honor the bargain that was struck in 2018,” wrote Tesla Chair Robyn Denholm and director Kathleen Wilson-Thompson. “After all, ‘a deal is a deal’.” 

Earnings Spotlight: Shopify

Shopify's stock (NYSE: SHOP) has had a strong year leading into the latest set earnings, with Q2 numbers due out before the market opens tomorrow morning. With SHOP having gained 141% over the past 12 months, and trading close to multi-year highs, expectations are for double digit growth, and then some. Analysts are projecting an EPS of $0.29 for the upcoming quarter, up from $0.26 a year ago. Revenue is expected to come in at $2.55 billion for the quarter, a 24.56% increase from $2.04 billion a year ago, indicating strong year-over-year sales growth.