Key Earnings’ Brief

Home Depot Stock Climbs as Earnings Beat Housing-Market Weakness

Home Depot shares rose after fiscal second-quarter earnings and sales topped expectations, fueled by strong demand for smaller projects. The company reported adjusted EPS of $4.92 on $47.9 billion in sales and reaffirmed its fiscal 2026 outlook, despite a sluggish housing market weighed down by high rates and home prices.

Estée Lauder’s Earnings Boost Confidence in Its Path to Growth

Estée Lauder shares rose after the company beat Wall Street’s fiscal fourth-quarter earnings and sales estimates, while announcing plans to cut up to 10,000 jobs and substantially complete its restructuring by fiscal 2027.

Toll Brothers Gains After Quarterly Earnings Top Expectations

Toll Brothers beat quarterly expectations with earnings of $2.97 per diluted share on roughly $2.7 billion in revenue, while reaffirming its forecast to deliver 10,500–10,600 homes despite high mortgage rates weighing on the housing market.

Lowe’s Delivers Q2 Earnings Beat as Investors Overlook Weak Forecast

Lowe’s shares rose after second quarter adjusted earnings beat expectations at $4.40 per share versus $4.22 forecast, despite the company lowering its full-year outlook to the bottom end of its prior guidance range.

Analog Devices Shares Gain on Strong Results as AI Concerns Ease

Analog Devices shares rise after the chip maker beats fiscal third-quarter earnings and revenue expectations, forecasting fourth-quarter revenue of about $4.3 billion and adjusted earnings of $3.71–$4.01 per share.

Walmart Stock Plunges 9% as Slowing Sales and High Fuel Costs Pressure Shoppers

AI & Tech Brief

Apple Leadership Change May Bring Major Shift in AI Investment

John Ternus will succeed Tim Cook as Apple CEO on Sept. 1, potentially signaling a shift toward heavier AI investment. The company raised fiscal Q3 R&D spending 32% to $11.7 billion and has moved away from its net-cash-neutral target, suggesting greater spending on research and acquisitions.

Strategy OpenAI Eyes Public Listing Next Year Amid Escalating AI Race

OpenAI CFO Sarah Friar told employees that the company plans to become publicly traded in 2027, possibly sooner. OpenAI previously confirmed it had confidentially filed an S-1 registration statement with the SEC but said the IPO timeline remained undecided.

Micron Unveils $10 Billion Lab as AI and Chip Race Intensifies

Micron Technology will invest $10 billion over the next decade in Micron Research Labs, with construction of its flagship Boise, Idaho, campus set to begin next year as the company counters potential competition from Chinese memory makers.

Why Chinese Tech IPOs Are Crushing America’s High-Profile Debuts

Chinese IPOs are surging, with mainland offerings of at least $100 million averaging a 345% first-day gain this year—and many maintaining triple-digit increases. Frenzied domestic demand, conservative pricing and China’s selective listing process are fueling the rallies. Unitree Robotics jumped more than 460% on its STAR Market debut, following memory-chip maker CXMT’s nearly 500% gain. Direct access remains difficult for U.S. investors, though some ETFs offer limited exposure.

Industrial Shares Surge as AI Investments Fuel Higher Valuations

AI is driving significant gains in industrial stocks, as illustrated by Nordson’s strong fiscal third-quarter results: earnings per share reached $3.25, surpassing Wall Street’s $3.09 estimate and exceeding the high end of its own guidance by 10 cents. The company raised the midpoint of its full-year earnings outlook by 35 cents to $11.90, while sales increased 10% year over year and backlog surged 35%, signaling strong future demand.

Market Brief

Bond Market Rout Sends Stocks Tumbling in a Terrible Trading Week

Bond markets pressured stocks as Treasuries sold off Thursday, reversing Wednesday’s rally after the Treasury announced increased buybacks of long-dated debt. Yields rose to 5.25% on 30-year bonds and 4.7% on 10-year notes. Wells Fargo’s Luis Alvarado said the buybacks may improve liquidity and reduce near-term volatility but are unlikely to alter the longer-term interest rate outlook.

Higher bond yields raise borrowing costs, weighing on equities, especially technology stocks. The sector is particularly vulnerable as hyperscalers commit billions to AI infrastructure, increasing financing pressure.

Bessent Says Treasury’s Expanded Buybacks May Grow Even Larger

U.S. Treasury Secretary Scott Bessent said the government could expand its Treasury buyback program beyond the recently announced minimum of $4 billion per operation. He argued that the recent surge in long-term Treasury yields— with the 30-year yield reaching its highest level since 2007—does not reflect the strength of the U.S. economy. The buybacks are intended to improve liquidity in a thinly traded market and counter heavy corporate bond issuance, including borrowing tied to artificial-intelligence infrastructure.

Bessent also said the Trump administration plans to pursue hundreds of billions of dollars in potential savings through fiscal consolidation and efforts to reduce waste, fraud, and abuse. However, rising Social Security and Medicare spending, along with higher debt-servicing costs, continue to pressure the budget; interest payments have already approached $1.2 trillion this fiscal year. Elevated Treasury yields are also raising borrowing costs for households and businesses, contributing to higher 30-year mortgage rates, and further reducing expectations for Federal Reserve rate cuts.

US 30Y Yield Monthly Chat

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