Stocks opened lower Thursday and stayed in negative territory through the close. Weighing on sentiment today were bouncing Treasury yields. A disappointing round of retail earnings didn't help, either.

The main equity indexes snapped a three-day losing streak on Wednesday as bond yields fell following the Treasury Department's announcement that it will increase buybacks of longer-dated debt.

But yields on the 10-year Treasury (+5.1 basis points to 4.704%) and the 30-year Treasury (+5.4 basis points to 5.248%) resumed their climb today after a report released late Wednesday showed U.S. debt has crossed the $40 trillion mark.

Rising yields pressured the stock market, with the tech-heavy Nasdaq Composite closing down 1.0% at 26,067, the broader S&P 500 falling 0.9% to 7,641, and the blue-chip Dow Jones Industrial Average dropping 1.3% to 52,759.

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Walmart has its worst day in four years on same-store sales miss

Walmart (WMT) was the worst Dow Jones stock today, sinking 9.2% — its worst day since May 16, 2022.

Ahead of the open, WMT reported better-than-expected fiscal 2027 second-quarter earnings of 81 cents per share on revenue of $187.9 billion, but same-store sales growth of 2.6% fell short of what Wall Street anticipated.

The company also gave soft fiscal third-quarter guidance, even as it raised its full-year outlook.

"Walmart is not losing market share — contrary to what I heard after Target's earnings — in fact, the company continues to gain share across income tiers, driven by higher-income consumers seeking value," says David Wagner, head of equity and portfolio manager at Aptus Capital Advisors.

Wagner adds that the same-store sales miss was a result of "non-competitive factors" such as lower prescription drug prices, an ongoing shift toward e-commerce and delivery services, and "persistent cost pressures that prompted thousands of selective price cuts to aid budget-conscious shoppers."

The portfolio manager believes the blue chip stock's post-earnings pullback should be viewed as a buying opportunity.

Advance Auto Parts plummets after earnings

Fellow retailer Advance Auto Parts (AAP) also sold off sharply, falling 24.6% — its worst day since May 31, 2023 — after its turn on the earnings calendar. While the auto parts chain reported higher-than-expected earnings of $1.03 per share, revenue of $2 billion came up short of what analysts were calling for.

AAP also said same-store sales were down 0.5% from the year-ago period. "Total enterprise sales performance was impacted by the DIY channel as tighter household budgets constrained spending more than we anticipated, especially during the last four weeks of the quarter," explained Advanced Auto Parts CEO Shane O'Kelly in the earnings release.

Deere jumps to the top of the S&P 500 after earnings

Not all of the day's earnings reactions were negative. Deere (DE) jumped 6.9%, making it one of the best S&P 500 stocks today, after the farm equipment manufacturer reported fiscal third-quarter earnings of $5.10 per share on revenue of $11 billion.

Wall Street anticipated earnings of $4.70 per share on revenue of $10.73 billion.

DE also raised the low end of its full-year net income forecast to $4.75 billion from $4.5 billion.

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Stocks snapped their three-day losing streak Wednesday after the Treasury Department stepped in to stabilize the bond market. A big rally in healthcare stocks also helped support the broader market, though upside was contained as several mega-cap tech stocks struggled.

The Treasury Department this morning said it will "at least double" the size of its buybacks for government bonds, from $2 billion to a minimum of $4 billion. The increase will begin September 9 and run through November 4, and "reflects Treasury's desire to provide greater liquidity support in longer-dated nominal sectors," according to a press release.

"Long-term Treasury yields had been under upward pressure amid uncertainty in interest rates, inflation, and the growing federal deficit," explains Tony Miano, global investment strategy analyst at Wealth & Investment Management at Wells Fargo.

The news sent the 10-year Treasury yield down 6.7 basis points to 4.639%, while the 30-year Treasury yield, which hit a 19-year high earlier this week, plummeted 10 basis points to 5.185%.

But while the Treasury Department's announcement provides short-term relief, Miana does not believe it changes the outlook for long-term yields. "The key drivers behind rising yields … remain in place," he says. "Until investors gain greater clarity on those issues, risks to long-term Treasury yields remain skewed to the upside."

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As for stocks, the blue-chip Dow Jones Industrial Average rose 0.2% to 53,463, the broader S&P 500 gained 0.2% to 7,707, and the tech-heavy Nasdaq Composite added 0.2% to 26,331.

Merck, Moderna stocks soar on positive cancer drug data

Merck (MRK) was easily the best Dow Jones stock today, surging 12.6% — its best day since 2009 — after a new mRNA skin cancer treatment jointly developed by the drugmaker and Moderna (MRNA) met its goals in a late-stage study when paired with MRK's Keytruda.

"This represents the first positive Phase 3 readout for an individualized neoantigen therapy (INT) and for an mRNA-based cancer therapy, as well as the first Phase 3 study to demonstrate a clinically meaningful improvement over KEYTRUDA alone, a standard-of-care immunotherapy, in the adjuvant setting for patients with resected melanoma," Merck stated in a news release.

MRNA shares surged 177% today, marking the large-cap stock's biggest one-day gain ever. It's also the first time since 2008 that an S&P 500 stock doubled in one day, according to Dow Jones Market Data. The news also lifted several vaccine makers, including Novovax (NVAX, +10.8%) and BioNTech (BNTX, +22.0%).

Target pops after earnings

Elsewhere on Wall Street, Target (TGT) jumped 4.3% after the retailer reported a beat-and-raise quarter.

TGT's fiscal second-quarter earnings received a $1.65 per-share boost from tariff refunds, while its comparable store sales came in at a better-than-expected 3.8%.

"The headline for Target was in the increased traffic [that] led to a strong jump in same store comps," says Brian Mulberry, chief market strategist at Zacks Investment Management. "These are metrics that they have needed to meet to demonstrate that their turnaround is working and operations are getting better."

Mulberry adds that this is a "meaningfully positive quarter for Target," but the retailer now needs "to show consistency and [that] this was not a one-off success."

Marvell outperforms on Google news

While several mega-cap tech stocks, including Broadcom (AVGO, -4.6%) and Advanced Micro Devices (AMD, -3.7%), closed lower Wednesday, Marvell Technology (MRVL) rose 9.9% after the chip designer expanded a deal with Alphabet's (GOOGL, +0.2%) Google.

The agreement builds on a partnership between the two companies to build new custom artificial intelligence chips and gives Google the option to buy up to $12.2 billion in MRVL stock over time if it purchases large amounts of chips.

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Costco is preparing to bring its signature bulk savings to the healthcare industry through a proposed partnership with SCAN Health Plan (SCAN). While the co-branded Medicare Advantage and Medigap options are still awaiting official approval from the Centers for Medicare & Medicaid Services (CMS), the plan signals a major shift in how seniors might soon shop for coverage.

"For more than 40 years, Costco has consistently listened to our Members and earned their trust delivering consistent value on essential goods and expanding our health service offerings," said Ron Vachris, CEO of Costco, in a press release from SCAN.

Recent data shows that 63% of Costco customers are Gen X (born 1965-1981) or baby boomers (born 1946-1964), making senior health services a natural extension of their current membership. This expands on Costco's recent healthcare push, which includes discounted prescription drug pricing programs (Costco Member Prescription Program) and virtual doctor visits through Sesame.

Here is what we know so far about the potential rollout.

What we know now about MA and Medigap at Costco

Costco announced a strategic partnership with SCAN Health Plan, a major nonprofit Medicare insurer, to launch co-branded Medicare Advantage and Medigap (Medicare Supplement) plans.

"Older adults want healthcare that is easier to navigate, more responsive to their needs and rooted in organizations they trust," SCAN Group CEO Dr. Sachin H. Jain told The Independent. SCAN Group is a mission-driven, not-for-profit organization that serves almost 460,000 members across 33 counties in six states, including California, Arizona, Nevada, Texas, New Mexico and Washington.

The initiative aims to bring Costco's low-cost, high-value retail model into the $500+ billion Medicare Advantage program by leveraging its existing pharmacy, optical and hearing center offerings.

• Insurance partner: SCAN Group / SCAN Health Plan, a California-based nonprofit Medicare Advantage program serving nearly 500,000 members.
• Initial scope of the rollout: The rollout will begin as a limited pilot, offering co-branded Medicare Advantage products in two states and a Medicare Supplement (Medigap) plan in a third state, pending federal regulatory approval from CMS. Together, these initial target markets reach an estimated 5 million Medicare-eligible enrollees.
• Where it will be sold: The insurance products will be offered online, through insurance-licensed brokers and inside participating Costco warehouses. Enrollees do not strictly need a paid Costco membership to sign up, though the plans are designed to incentivize members to utilize Costco services.

Be loyal to your needs, not a brand

A Costco-branded Medicare plan sounds appealing on paper, but brand loyalty shouldn't replace a thorough side-by-side comparison of plans. Until official pricing and local network details are released, the smartest move for retirees is to stay informed, review your current drug and doctor coverage and wait to see whether the actual savings live up to the Kirkland name.

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For more than 40 million people in the United States, federal student loans are an increasingly difficult financial burden to manage.

The high cost of living is part of the problem, but President Donald Trump's second administration has also introduced major student loan repayment changes, including the new Repayment Assistance Plan.

While attention usually focuses on monthly payments, important student loan tax consequences can be overlooked. Some can work in your favor, like the student loan interest deduction, while others, surrounding tax filing status or employer benefits, can be complex.

If that weren't enough to worry about, 2026 marks the return of federal taxes on some forgiven student loan debt. Here's more to know about that shift and navigating other student loan "tax traps."

Student loan repayment changes

Before we dive into student loan tax issues, it helps to look at how much the student loan landscape has changed in recent years.

New repayment options took effect on July 1, 2026, including the Repayment Assistance Plan (RAP) and Tiered Standard Plan. Other repayment plans have been restricted, and various rules governing which loans qualify for which plans have also changed.

The Trump administration has also pursued changes involving student loan forgiveness while tightening loan limits for some graduate and professional degree programs and adjusting collections processes.

Those shifts all matter, especially with average student loan monthly payments reportedly hovering around $430.

Avoiding student loan tax traps in 2026

It's important to note that this is not an all-inclusive list of potential tax issues and concerns surrounding federal student loans. It highlights some key concerns merely for educational purposes.

And because every borrower's situation is different, it's important to consult a tax or financial advisor familiar with your situation to determine the best course of action to potentially reduce your tax liability and student loan payment amounts.

1. The student loan “marriage penalty”

If you’re married with student loans, your tax filing status can affect both your student loan payment calculation and your tax bill. This is especially important this year because of the new federal student loan Repayment Assistance Plan (RAP).

• RAP uses a borrower's income and family information to determine the federal student loan monthly payment.
• For married borrowers, tax filing status can affect whether the calculation includes a spouse's income.

That creates a potentially significant trade-off for some couples.

Consider a married couple with $100,000 of combined adjusted gross income (AGI), split evenly between the two spouses. If only one spouse has federal student loans, filing jointly would put the couple's full $100,000 of income into the RAP calculation.

Under RAP's payment schedule, that could translate to a base payment of roughly $750 a month. If the borrower instead files separately, only the borrower's $50,000 in income would be used, potentially resulting in a base payment of about $167 per month. That's a difference of roughly $583 a month — or nearly $7,000 a year.

But that lower student loan payment comes with a glitch: Filing separately can increase a couple's income tax bill and generally makes them ineligible for the student loan interest deduction and/or other potentially valuable tax deductions or credits.

So the couple would need to compare the potential $7,000 in annual student loan savings with the additional taxes and lost tax benefits of filing separately.

Disclaimer: This is a fictional illustrative calculation, not a prediction of what every borrower of $50,000 or $100,000 will pay. RAP also reduces payments for borrowers with dependents.

Remember:

• Married taxpayers who file separately generally cannot claim the student loan interest deduction.
• Other federal tax credits and deductions can also be limited or unavailable to married couples filing separately.
• That means borrowers shouldn't decide on filing status just by looking only at their student loan payment.

It’s good to consult with a trusted tax professional who can help you select the best filing status for you.

2. Taxes on student loan forgiveness

The idea of having the federal government forgive your student loan debt can be exciting. But if you anticipate having your loan debt forgiven in 2026, that relief could come with tax liability.

Why? A little history: During the pandemic, the American Rescue Plan Act (ARPA) temporarily excluded certain student loan debt discharged between 2021 and 2025 from federal taxable income.

• However, that broad temporary exclusion expired at the end of 2025.
• As a result, some borrowers whose student debt is forgiven or discharged this year (2026) could face federal income tax on the canceled amount.

Keep in mind: Whether forgiven student debt is taxable at the federal level depends on when and why the debt was discharged and whether a specific exception or exclusion applies.

• For example, the IRS says certain types of forgiveness and discharge remain excluded from federal taxable income, including Public Service Loan Forgiveness, Teacher Loan Forgiveness, and certain discharges due to death or total and permanent disability.
• Borrowers who are insolvent when debt is canceled may also be able to exclude some or all of the canceled amount under general cancellation-of-debt rules.

But…state taxes can add a wrinkle. States don't necessarily follow the federal tax treatment of forgiven student debt. So whether your state will tax your forgiven student loan amount may depend on the type of forgiveness and whether your state conforms to federal tax law.

If you expect a significant amount of debt to be discharged this year, try to understand the tax treatment before the forgiveness takes place. That might give you time to set aside money, adjust withholding, or make estimated tax payments rather than being surprised when tax season rolls around.

3. Overlooking the student loan interest deduction

Student loans aren't all negative for your taxes. One commonly overlooked benefit is the federal student loan interest deduction.

• Eligible borrowers can deduct up to $2,500 of interest paid on qualified student loans during the year.
• The deduction is available even if you don't itemize deductions, although income limitations and other eligibility requirements apply.

The student loan interest tax deduction can be easy to miss because it doesn't reduce your tax bill dollar-for-dollar. Instead, it reduces the amount of income subject to federal income tax.

Your loan servicer generally reports qualifying interest payments on Form 1098-E, Student Loan Interest Statement. But receiving the form isn't enough to establish eligibility for the tax break. Your income, filing status, and other circumstances come into play.

The student loan deduction can also interact with the filing-status decision some married borrowers face.

• As mentioned, married taxpayers who file separately generally cannot claim the student loan interest deduction.
• If you're a couple considering filing separately to reduce an income-driven student loan payment, you should carefully consider the tax trade-offs.

4. Missing out on tax-free employer student loan assistance

Under federal educational assistance rules, employers can provide up to $5,250 a year in tax-free educational assistance, including qualifying payments toward an employee's student loans.

The 2025 Trump/GOP tax law made this student loan provision permanent.

• But there is an important distinction: This isn't a tax deduction an individual borrower can claim on their own.
• The employer has to offer a qualifying educational assistance program.

It’s also important to note that employer educational assistance and tuition reimbursement are different.

Educational assistance programs can cover a broader range of expenses, including tuition, fees, books, supplies, and student loan repayments. Tuition reimbursement programs, on the other hand, typically cover only tuition and related expenses for courses taken while employed.

Check with your employer if you’re unsure about education-related benefits they do or don’t offer.

5. Skipping retirement contributions while paying student loans

Student loan payments can also affect your retirement savings even if your employer doesn't directly help pay the loans.

Under the SECURE 2.0 Act, employers can treat certain qualified student loan payments as elective deferrals for purposes of making matching contributions to a workplace retirement plan.

That means some borrowers can receive an employer retirement match based on their student loan payments even if they're not making equivalent contributions to the retirement account themselves.

• To qualify, you must be making student loan payments and have a direct legal obligation to repay the loan (guarantors do not qualify).
• Parents paying installments on Parent PLUS loans* taken out for their children's education are also eligible.
• Total matched loan payments and direct 401(k) contributions combined cannot exceed the annual federal IRS deferral limit ($24,500 for 2026, excluding catch-up contributions).

The provision could help address an increasingly common financial dilemma: Some people with student loan debt might not have enough money to make student loan payments and, at the same time, contribute enough to a 401(k) to receive an employer match.

As Kiplinger recently reported: "According to the American Institute of CPAs (AICPA), over half (53%) of personal and parent borrowers say student debt directly hinders their ability to save for retirement. For these households, the default reaction may be to reduce or even pause monthly 401(k) contributions."

But this is optional for employers. Not every workplace retirement plan offers student loan matching, and the workplace plan's specific rules determine which payments qualify and how the match is calculated.

*Also keep in mind that Parent PLUS loans (and consolidation loans containing Parent PLUS loans) are excluded from the Repayment Assistance Plan (RAP). These loans are now generally at $20,000 per year per student (with a $65,000 lifetime limit).

Check your employer retirement plan documents or ask your benefits administrator whether student loan payments qualify for matching contributions.

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Stocks closed lower for a third straight session Tuesday as market participants fretted about sky-high bond yields and the ongoing war in Iran. A sell-off in chip stocks also weighed on sentiment.

At the close, the blue-chip Dow Jones Industrial Average was down 0.2% at 53,343, the broader S&P 500 was 0.7% lower at 7,691, and the tech-heavy Nasdaq Composite was off 1.3% at 26,289.

Treasury yields also finished the day lower, but not before the 30-year yield hit a fresh 19-year intraday high.

Bond yields are rising even as the recent batch of soft inflation and jobs data lowers the odds of a September rate hike, says Daniela Hathorn, senior market analyst at Capital.com.

"Instead, the long end is responding to persistent inflation risks, heavy government borrowing and growing competition for capital — including debt issuance associated with the AI investment boom," she explains. "That creates an uncomfortable environment for equities because financial conditions can tighten even without the Fed raising rates."

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Higher oil prices are only adding to this inflation risk. Today, front-month West Texas Intermediate crude futures rose 0.5% to $84.94 per barrel after President Donald Trump said there are currently no talks happening between the U.S. and Iran and no plans to start them.

Bond yields weigh on chip stocks

Tech stocks were a notable area of weakness on Tuesday, due in part to higher borrowing costs. Semiconductor stocks, in particular, took a beating, with the iShares Semiconductor ETF (SOXX) slumping 5.0% as fund heavyweights Nvidia (NVDA, -2.3%), Micron Technology (MU, -7.0%) and Advanced Micro Devices (AMD, -4.3%) sold off.

Chip stocks have rebounded in recent weeks, with SOXX rising nearly 11% for the month to date through Monday's close following a 21% drop in July.

Housing data disappoints

Higher borrowing costs are also weighing on the housing market, as evidenced by today's economic data.

According to the Census Bureau, housing starts fell 12.5% from June to July, to a lower-than-expected 1.24 million. This is down 13.5% year over year.

Separate data from the National Association of Realtors showed pending home sales fell 2.3% from June to July, hitting their lowest level since January.

"Housing disappointed in July," says Bill Adams, chief U.S. economist at Fifth Third Commercial Bank. "The big headwind from high mortgage rates looks likely to persist into 2027."

Adams adds that buyers also have more options right now as folks who delayed selling their homes when mortgage rates started rising "are gradually accepting the new normal and listing their homes, providing buyers more options outside of new construction."

Home Depot takes aim at Amazon

Home Depot (HD, -0.1%) Chief Financial Officer Richard McPhail called out "frozen housing conditions" in the home improvement retailer's earnings call this morning.

"While consumer uncertainty and housing affordability continue to pressure demand for larger home improvement projects, we remain focused on what we can control, our strategy of driving our core and culture, delivering a frictionless interconnected experience and winning the Pro," explained McPhail.

In its fiscal second quarter, Home Depot said its Pro segment outperformed DIY (do-it-yourself) and posted positive comparable store sales. Total comparable store sales for the company rose 1.7% in Q2 — the biggest increase since 2022 and higher than the 0.9% rise Wall Street anticipated. Earnings and revenue also beat expectations.

The comparable store sales number was impressive, says David Wagner, head of equity and portfolio manager at Aptus Capital Advisors, but his attention is more focused on the retailer's three-hour delivery announcement.

"Home Depot announced it's launching express delivery nationwide, promising orders within three hours or less," Wagner explains. "It's a direct shot at Amazon/Walmart-style speed competition, aimed at capturing the 'I need this part now to finish the project today' pro and DIY customer — a use case where Home Depot has a structural edge (2,300+ stores close to where people live) that pure e-commerce players can't easily match."

With big-ticket renovations still on hold due to higher mortgage rates, Wagner says this move echoes the broader theme of the quarter: "Home Depot is leaning hard into speed and convenience to win the smaller, more frequent project spend that's currently driving growth."

Klarna sinks 23% after earnings

Elsewhere on the earnings calendar, Klarna (KLAR) plunged 22.8% after the buy now, pay later firm reported earnings.

While KLAR beat on the top and bottom lines for its second quarter, it lowered its full-year outlook for gross merchandise volume (GMV) — a key metric for fintechs — due to "a more measured view of European volumes in the second half, particularly in Germany, our largest market by volume," the company said.

Klarna also said its chief financial officer and chief marketing officer will step down early next year.

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The main equity indexes were down after a low-volume late-summer trading session on Monday, as the uncertainty of war in the Middle East outweighed the certainty of solid earnings and revenue growth. Investors, traders and speculators are pulling back bets on rate hikes after cooler-than-forecast July consumer inflation and retail sales data. But the bond market continues to reflect longer-term concerns.

President Donald Trump urged Iran to "put up the white flag of surrender" in a pre-opening bell phone conversation with Fox News, during which he also threatened to bomb Oman if it "gets in the way" of U.S. negotiations to open the Strait of Hormuz.

"The number one Goal is, and always will be, that Iran cannot have, in any way, shape, or form, a Nuclear Weapon," Trump posted on Truth Social at around the same time. "I have no time schedule," a multitasking Trump told Fox News. "I'm not in a hurry."

The front-month West Texas Intermediate crude oil futures contract was higher by 2.5% to $84.45 per barrel. WTI declined to $67.04 intraday on July 2, just above its pre-war closing price of $67.02 on February 27 and vs a 52-week high of $119.48 on March 19.

The 2-year Treasury yield rose from 4.171% on Friday to 4.182% today, though the indicator of short-term Fed intentions has come down about 20 basis points from a 52-week high of 4.377% on July 24.

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The 10-year Treasury yield ticked up to 4.724% from 4.696% on Friday, and the 30-year Treasury yield was up from 5.266% to 5.310%, reaching a new 19-year high in the process.

By the closing bell, the blue-chip Dow Jones Industrial Average was down 0.5% to 53,459, the broad-based S&P 500 had lost 0.5% to 7,745, and the tech-heavy Nasdaq Composite was off 0.3% to 26,644.

How healthy are earnings

Most of the S&P 500 has already reported, and results from the earnings calendar are good. Indeed, as Ritholtz Wealth Management research associate Matt Cerminaro calculates, the overall year-over-year earnings growth rate is tracking to 32.2%.

In the aftermath of an unexpected decline in retail sales in July, reports from Home Depot (HD, -0.2%) tomorrow morning and Walmart (WMT, -0.8%) on Thursday morning will offer more color about the state of the consumer.

Still, as Cerminaro notes, 10 sectors are expected to report earnings growth, and eight are expected to post double-digit growth. And that bottom-line growth rate: "Talk about running it hot," Cerminaro says. "That number is on fire."

Indeed, all 11 stock market sectors defined by S&P Global are on track to grow revenue, with an overall annual rate for the S&P 500 of 15.4%, the strongest rate since the fourth quarter of 2021.

That's not all: "These companies are crushing estimates, raising guidance, and their stock prices are following suit. It's exactly what you want to see in a healthy bull market."

Why AMZN can hit $500

Amazon (AMZN, -0.5%) has had only a so-so 2026 so far. The e-commerce giant, cloud computing juggernaut and bellwether consumer discretionary stock posted a total return of 13.8% through Friday vs 14.5% for the S&P 500.

AMZN is trading around $260 today, up from around $230 at the end of 2025. According to Morgan Stanley analyst Brian Nowak, there's reason to believe the stock could hit $500 by the end of 2027, most notably on the opportunity for Amazon Web Services.

"We can debate the long-term margins of a GenAI enabled AWS," Nowak writes, "but if AMZN management's comments on AI tracking toward similar margins and returns as core cloud are in the right ballpark, this likely implies ~30% EBIT margins."

According to Nowak, that means about $1 trillion of AWS revenue and approximately $300 billion AWS EBIT (earnings before interest and taxes) over the next eight to 10 years. "Layering in reasonable Retail assumptions, this would imply AMZN is set to generate approximately $500 billion of EBIT in 2034-2036 … and that company wide EBIT could CAGR at a 16-20% rate."

The analyst reiterated his Overweight (Buy) rating, as well as his $335 12-month target price. Even from Nowak's "base case," there's about 29% of upside from here for AMZN.

What made SNDK pop again

Sandisk (SNDK, +8.9%) was the hottest of S&P 500 stocks on Monday in the aftermath of a warmly received "investor day" presentation last Thursday highlighted by management's long-term guidance, as well as an ambitious stock buyback plan.

As Bernstein analyst Mark Newman reports, management of the memory device and solution provider forecast mid- to high-teens volume growth and stable pricing through fiscal 2030. "The company also guided long-term gross margin around 80%," Newman writes, "which was better than expected."

Sandisk also announced that 100% of free cash flow (FCF) will be returned to shareholders and hinted that most, if not all, of this FCF will be used to buy back shares.

"Using even the most conservative of estimates for free cash flow," Newman says, "Sandisk can buy back 47% of shares outstanding in the next four years of free cash flow generation at current share prices."

Newman reiterated his Overweight (Buy) rating and his $3,000 12-month target price for SNDK.

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To help you understand the trends surrounding business and technology and what we expect to happen in the future, our highly experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts. (Get a free issue of The Kiplinger Letter or subscribe.) You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here's the latest…

SpaceX is going big with Terafab, which it says will be the largest chip-making plant in the world when completed. But it’s hard to know if Elon Musk’s extraordinarily ambitious semiconductor plans will work.

One thing is certain: Musk is serious about building it. SpaceX is dedicating nearly $17 billion for the initial phase of the advanced semiconductor manufacturing factory, and tens of billions more in spending is likely. When finished, the company says Terafab will span 100 million square feet, making it one of the largest manufacturing facilities in the world.

Within Terafab’s walls, SpaceX will manufacture, package and test advanced logic and memory chips. The reason for entering the market is based on Musk’s sky-high forecast of the chips needed for driverless cars, humanoid robots and orbital data centers for both SpaceX and Tesla.

SpaceX says its demand for chips will eventually be so astronomical — more than the current global supply — that it can’t rely on leading chipmaker Taiwan Semiconductor Manufacturing Co. for all its needs. Or Intel, which is working overtime to start a division that makes chips for outside companies, and which has partnered with SpaceX to help build Terafab.

"Elon has a proven track record of reimagining entire industries," said Intel’s CEO Lip-Bu Tan when the partnership was announced. "This is exactly what is needed in semiconductor manufacturing today."

Will chipmaking be reimagined by the world’s most dominant space company? The answer is unclear, but here are some of the early questions we’re pondering.

1. Can SpaceX build a successful semiconductor fabrication plant?

Semiconductor manufacturing is incredibly costly and challenging. It pushes the limits of physics, chemistry and engineering. The clean rooms are up to 1,000 times cleaner than an operating room. The lithography machines needed to print chip patterns on silicon wafers cost hundreds of millions of dollars. There are specialty gases and chemicals, along with all sorts of automated machinery. The ecosystem involves thousands of suppliers around the globe.

And the economics don’t work unless the facility is running at full capacity, churning out finished wafers with a miniscule amount of defective chips. To add to the challenge, SpaceX wants to push the limits of current chip manufacturing, saying it will be the first to do so many of the processes under one roof. "The most epic chip-building effort in the world," says the company.

Musk says that eventually, a huge production volume will allow Terafab to test and develop new chip designs rapidly, calling the way current chipmakers operate "extremely conservative." He also wants to harness new physics and chip technologies, saying in a presentation, "We’re going to try a bunch of wild and crazy things."

2. How will Terafab distort the chip ecosystem?

SpaceX will become another big spender on chip equipment. The company needs advanced photolithography machinery from Dutch company ASML, pitting it against TSMC, Intel, Samsung and others. Plus, it will need to buy all sorts of other gear that goes into a leading-edge chip plant from Lam Research, Tokyo Electron, KLA Corporation and many other suppliers. Building a cutting-edge chip plant can already cost more than $30 billion and Terafab, with its scale and ambition, will cost far more.

SpaceX is also likely to poach top chip talent from other top companies. The U.S. chip sector already has a severe shortage of workers to operate chip plants. The massive project will take up lots of skilled construction labor as TSMC, Intel, Samsung and chip companies try to expand in the U.S. Over the long term, there’s the question of whether Terafab’s chip production could affect the sales of other chip leaders.

Musk’s viewpoint is that there will be an ongoing, huge shortage of chips compared with the exploding demand for AI compute. SpaceX says Terafab chips are solely for its own internal use, but one has to wonder if the company would ever consider selling its chips to outside customers. Or even making chips for customers. Plus, if SpaceX can eventually win more AI market share, that affects the chip market. Its AI competitors would need to buy fewer chips.

3. What kind of turmoil will SpaceX cause for chip stocks?

In the coming years, some investors may start monitoring SpaceX’s competitive threat to other chipmakers or even start worrying about a potential glut of chips. SpaceX wants other chipmakers to expand production as it makes plans to wean itself off outside chips. "While we are deeply appreciative of our current chip suppliers, and encourage them to expand production whenever possible, this looming gulf between supply and demand is at the core of Terafab’s necessity," according to the company’s latest update.

It wouldn’t take SpaceX completing the project or even making chips in high volumes to affect other chip stocks. Hitting early milestones or even building a promising narrative around Terafab could spark stock gyrations. Intel’s partnership with Terafab could become an uncomfortable one in years to come if SpaceX starts to be a competitive threat. Consider that SpaceX’s long-term plans for Starlink to take on terrestrial wireless carriers have already hit telecom stocks, causing U.S. wireless carriers and tower firms to trade lower.

4. What does this mean for Nvidia?

Over the short term, not much. But SpaceX takes the long view, and that’s where things get interesting. As SpaceX pursues manufacturing its own chip designs, it could mean trying to move past Nvidia, at least in the very long term. For now, SpaceX is all-in on Nvidia chips, recently committing to the company’s AI chips for its orbital data centers. "We have decided to build exclusively on Nvidia, because we think the Vera Rubin architecture is the best architecture," Musk said during SpaceX's recent earnings call.

But over time, that relationship could get challenged if SpaceX somehow is able to make its own chips and become a dominant force in AI data centers, on Earth and in space. SpaceX’s investor prospectus underscored how it wants to keep all options on the table: "While Terafab is intended to expand our internal chip manufacturing capabilities and alleviate potential future AI chip shortages at SpaceX, particularly as we pursue orbital AI at scale, we expect to continue sourcing a significant portion of our compute hardware from third-party suppliers."

What is the timeline for Terafab?

While the initial construction has started, the time it will take to produce viable chips is anyone’s guess. And there’s a difference between just making chips and producing them economically at scale. It’s likely that SpaceX faces all sorts of technical challenges in coming years.

Here are some of the key dates up to today: SpaceX announced in March 2026 that it was building Terafab in collaboration with Tesla. The partnership with Intel was announced in April 2026, which will include Intel lending its manufacturing expertise to help with design, fabrication and packaging. The latest announcement about breaking ground on Terafab in Grimes, Texas, happened on August 6 and included an aerial shot of the futuristic-looking facility.

Other development timelines, milestones and spending haven’t been determined yet (or at least are not public). It’s likely SpaceX moves aggressively on this project and the timeline for initial production is faster than other chip plants built in the U.S. However, completing the full vision of Terafab would take many years, extending well into the 2030s.

This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.

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After overseeing a major housecleaning of Berkshire Hathaway's (BRK.B) equity portfolio in his first three months as CEO, Greg Abel followed up with a sizable shift in capital deployment during Q2.

Although Berkshire was a net buyer of equities for the first time after 14 straight quarters of easing up on stocks, the company revealed no flashy new positions or big additions in a Securities and Exchange Commission (SEC) filing on August 14.

True, Berkshire purchased another $10 billion worth of stock in Google parent Alphabet in a private placement. The deal, disclosed in a June 1 statement, boosted its holdings of Class A shares (GOOGL) by 45% and Class B shares (GOOG) by more than 650%.

At 9.4% of Berkshire's U.S. equity portfolio value, GOOGL is now the company's fourth-largest position. The Class B shares, at 3.2% of the portfolio, are now the firm's 10th-largest holding. Berkshire initiated its stake in the tech giant in the third quarter of 2025.

Separately, Berkshire closed its $6.8 billion acquisition of the U.S. homebuilder Taylor Morrison in July.

Abel oversees the Berkshire Hathaway equity portfolio, although Buffett keeps his hand in and plays a key advisory role. That said, times have changed.

The company added one new stock to its holdings in Q2 — D.R. Horton (DHI) — but then it has bought and sold the homebuilder several times in the past. And while Berkshire boosted stakes in some existing positions, both new and old, it also continued to pare back on some legacy holdings.

Interestingly, Berkshire cut back on some investments in the financial sector, including long-time Buffett favorite Bank of America (BAC).

But before we get to the stocks Berkshire Hathaway bought and sold in the second quarter, let's take a look at the bigger capital picture. In addition to being a net buyer of stocks for the first time in more than two years — the conglomerate made $19.8 billion in purchases vs $3.7 billion in sales — it also repurchased $4.5 billion of its own stock. That's Berkshire's largest quarterly buyback since 2021. Furthermore, it bought back another $3.3 billion in July.

Some folks have criticized Berkshire for not putting its cash hoard to work. Well, Abel appears to have answered them. Berkshire's cash holdings are still gargantuan, but they did fall to $365 billion in the second quarter from a record $380 billion at the end of Q1.

With a market cap of $1 trillion, Berkshire still maintains a sort of barbell portfolio of approximately $325 billion in stocks and the aforementioned $365 billion in cash.

Before we get into Berkshire's most recent buys and sells, it's important to know that Berkshire has always run a highly concentrated portfolio.

Excluding the company's Japanese brokerage stocks and other overseas equities, Apple (AAPL) alone accounts for more than a fifth of Berkshire's stock portfolio. (That's down from more than 40% at its peak.)

Furthermore, Berkshire's top five U.S. equity holdings comprise about 68% of its portfolio value, while the top 10 account for 88%.

As Buffett likes to say, diversification is for those who don't know what they're doing.

Stocks that Berkshire is buying

Buffett famously avoided airlines for decades. When he finally did come around, his timing was terrible, spreading his bets among a handful of major carriers not too long before COVID-19 set the industry into a tailspin. As a result, he quickly closed out those positions.

So it's a mark of change that Berkshire upped its stake in Delta Air Lines (DAL) by 44% in Q2 after initiating the position just three months earlier. The company bought another 17.5 million shares, bringing its total holdings to more than 57 million. With a market value of $5.4 billion at the end of Q2, the air carrier is now Berkshire's 13th-largest holding.

In another move in the homebuilder industry, Berkshire increased its positions in Lennar Class A (LEN) and Class B (LEN.B) stock, by 30% and 25%, respectively. At 0.4%, LEN is the company's 18th-largest investment. LEN.B, at less than 0.1%, is essentially immaterial.

Meanwhile, Berkshire added to two recent additions to its investments. It boosted its stake in The New York Times Co. (NYT) by almost 4%, while more than doubling its position in Macy's (M). NYT accounts for about 0.4% of the portfolio, while M sits at less than 0.1%. Although it's nice to have the imprimatur of Berkshire Hathaway, these are not needle-moving investments for a trillion-dollar company.

Stocks Berkshire is selling

In a reprise from previous quarters, Berkshire once again sold some Bank of America stock, which has been a major holding since 2017. It's too soon to panic, though. Berkshire reduced its investment in the nation's second-largest bank by assets by less than 6%. BAC is still a top-five holding, although GOOGL did replace it at No. 4.

Elsewhere, Abel pared back on supermarket operator Kroger (KR), reducing the position by 22%. At 0.7% of the portfolio value, KR drops to Berkshire's 16th-largest holding from 12th at the end of Q1.

In the financial sector, Berkshire eased up on investments in Ally Financial (ALLY) by almost 7%, while slicing its position in Capital One Financial (COF) by 58%. ALLY accounts for just 0.4% of Berkshire's U.S. equity portfolio, while COF amounts to 0.2%.

Lastly, Berkshire reduced exposure to Nucor (NUE) by 52%. NUE now accounts for about 0.1% of the portfolio, or the firm's 24th-largest position. In the only exit, Berkshire sold its entire stake in Constellation Brands (STZ), a position it initiated in the final quarter of 2024. At less than 0.1% of the portfolio prior to the liquidation, STZ was immaterial.

The bottom line on Berkshire's holdings

Abel continues to remake Berkshire's portfolio, and the way it deploys capital, in his own image. Big bets on tech are in favor, and he's doubling down on some recent investments, such as Macy's and The New York Times Co. Berkshire also clearly likes exposure to homebuilders.

At the same time, Abel is reducing exposure to several legacy investments and less material names. While the portfolio remains top-heavy, its concentration is now weighted more to its largest 10 holdings, with less exposure to the top five.

It's a new era, indeed.

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Stocks finished the week on a negative note as market participants sifted through the latest batch of earnings and economic reports. And while the blue-chip Dow Jones Industrial Average closed lower for the week, the broader S&P 500 and tech-heavy Nasdaq Composite extended their weekly win streaks to three.

At today's close, the Dow was staring at a one-day decline of 0.2% at 53,732, the S&P 500 was off 0.2% at 7,785, and the Nasdaq was 0.3% lower at 26,729.

Despite Friday's quiet finish, the three main equity indexes are near record highs — and they remain "in something of a sweet spot for now," says Daniela Hathorn, senior market analyst at Capital.com.

This week's soft inflation data has diminished the threat of a Federal Reserve rate hike, Hathorn explains, while earnings remain supportive.

B. Riley says to buy the dip on hot AMAT stock

Applied Materials (AMAT) was the biggest name on the earnings calendar, though the chip equipment maker shed 5.1% after reporting its fiscal third-quarter results late Thursday.

AMAT beat on the top and bottom lines and gave fiscal fourth-quarter guidance that beat the Street's estimates. But B. Riley analyst Craig Ellis says some investors may have been hoping for greater near-term gross margin upside.

Gross margin tells you how much revenue a company keeps after deducting costs required to make its products or services. AMAT said it expects fiscal Q4 gross margin to be flat on a quarter-to-quarter basis, at 50.4%.

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But Ellis believes today's post-earnings pullback represents a buying opportunity on a company poised for "high-visibility EPS expansion." He has a Buy rating on AMAT and a $700 price target, representing implied upside of nearly 40% on a stock that's already doubled for the year to date.

Next week, we'll start to hear from some of the country's biggest retailers, including Home Depot (HD, -0.8%), which reports on Tuesday. Walmart (WMT, -0.4%) takes its turn on the earnings stage Thursday morning.

Retail sales unexpectedly fall

Ahead of these key updates on consumer spending, data from the Census Bureau this morning showed that retail sales unexpectedly fell 0.6% in July. Economists expected a 0.1% increase.

The University of Michigan's Consumer Sentiment Index also fell short of estimates, with August's preliminary reading sinking to 51.0 from July's 55.2.

"A colossal double miss on retail sales and consumer sentiment is worrying investors, who fear that affordability pressures, dwindling savings and reduced hiring could mean the economy's engine is on its last legs," says José Torres, senior economist at Interactive Brokers.

The disappointing data follows "stronger tax refunds that were providing relief to personal wallets," he adds, and "with that source of fiscal stimulus behind us, market participants are rightfully concerned about the potential for further deterioration in consumer momentum."

Reddit will join the S&P 500 on Tuesday

Elsewhere on Wall Street today, Reddit (RDDT) popped 12.6% after S&P Global said the social media platform will join the S&P 500 ahead of the open this Tuesday, August 18.

RDDT will replace AvalonBay Communities (AVB, +0.1%), which is merging with fellow real estate investment trust (REIT) Equity Residential (EQR, 0.0%).

"Stocks tend to get a lift from inclusion in the S&P 500 because many trillions of passive dollars are held in products that track the index," explains Kiplinger contributor Dan Burrows.

The Vanguard 500 Index Fund (VOO), the largest exchange-traded fund (ETF) in the world, has $1.7 trillion in assets under management — and is just one of many funds that will now have to buy shares in RDDT.

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Stocks opened higher again Thursday thanks to another encouraging inflation update, but finished off their session highs as market participants parsed a fresh batch of corporate earnings reports. Still, the three main indexes finished in positive territory — one at a new record high — as chip stocks extended their recent rebound.

Ahead of the opening bell, the Bureau of Labor Statistics (BLS) reported that the Producer Price Index (PPI), which measures what businesses pay suppliers for goods, was unchanged from June to July and was 4.7% higher year over year.

Core PPI, which excludes volatile food and energy prices, rose 0.2% month over month and was up 4.2% over the past 12 months.

The results were softer than economists expected and follow Wednesday's in-line July Consumer Price Index (CPI) report.

"The PPI data combined with what we know about CPI tells us that the Fed's preferred inflation metric, the core personal consumption expenditures index, continues to run closer to 3% rather than 2%," says Sonu Varghese, chief macro strategist at Carson Group.

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This means the Federal Reserve still has an inflation problem, Varghese explains, "but the recent softness likely strengthens the case for doves on the committee who want to wait things out."

According to CME Group FedWatch, futures traders are currently pricing in a 65% probability the central bank keeps the federal funds rate unchanged at its September meeting — up from 45% one week ago.

Cisco Systems sinks after earnings

The Dow Jones Industrial Average lagged its peers on Thursday, finishing up 0.1% at 53,839, as Cisco Systems (CSCO) slumped 8.4% — its worst day since February — after earnings.

The networking equipment specialist reported higher-than-expected fiscal fourth-quarter results and gave upbeat fiscal 2027 first-quarter guidance.

But UBS Global Research analyst David Vogt believes investor focus has shifted to Cisco's full-year forecast, "particularly the implied gross margin and the anticipated revenue deceleration from more than 20% growth in F1Q to the low double digits in H2:27, largely because of tougher comparisons."

Profit-taking could also be responsible for Cisco's sharp decline today. Heading into Thursday's session, the Dow Jones stock had surged 67% in the past six months.

Regardless of the reason, Vogt sees "any share-price weakness as an attractive buying opportunity."

Chip stocks send the S&P 500 to a new high

Elsewhere on Wall Street, the S&P 500 rose 0.7% to 7,798 — a new record closing high — and the Nasdaq Composite climbed 0.8% to 26,803, as several chip stocks extended their recent rebound.

Sandisk (SNDK), for one, soared 13.7% today, and is now up 26% for the month to date. And Micron Technology (MU) jumped 4.2% to bring its August gain to nearly 16% so far. In July, SNDK plunged 31.6% and MU fell 16.4%.

Workday stock trading halted on takeover chatter

Workday (WDAY) was another tech stock that saw notable gains on Thursday, closing up 17.8% after intraday trading was temporarily halted on reports that Silver Lake is in talks to buy the human resources software company.

According to Reuters, the private equity firm's proposed buyout of Workday, which had a market value of $43.7 billion at Tuesday's close, could be among the biggest software buyouts ever.

WDAY shares fell 16.8% in 2025 and were down 18.4% for the year to date through the August 12 close.

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For homeowners facing steep property tax bills alongside high housing costs, the state and local tax deduction (SALT) may offer some federal tax relief in 2026 — especially for those in high-tax states who itemize their deductions.

The SALT deduction is larger than before 2025, and this year's limit gets another increase due to scheduled inflation adjustments. These changes could allow some taxpayers to deduct substantially more of their property and state income taxes than they could under the $10,000 cap that had been in place for years.

Here's more to know.

New SALT tax deduction 2026 limit

The SALT deduction allows taxpayers who itemize to subtract certain state and local taxes from their federal taxable income.

For the 2026 tax year, taxpayers who itemize can deduct up to $40,400 in qualifying state and local taxes. The limit is $20,200 for married couples filing separately

That's a $400 increase from the $40,000 limit that applied for the 2025 tax year.

• The deduction can include qualifying state and local income taxes, sales taxes and property taxes, subject to the overall limit.
• Taxpayers generally can deduct either state and local income taxes or sales taxes, but not both.

The expanded limit is particularly notable for homeowners because property taxes can account for a significant portion of the annual cost of owning a home. Under the old rules, taxpayers could be limited to a $10,000 SALT deduction even if they paid far more in state and local taxes.

Higher-income SALT deduction phaseout

But…keep in mind that the $40,400 deduction isn't available in full to every taxpayer.

• For 2026, the expanded SALT deduction begins to phase down when modified adjusted gross income (MAGI) exceeds $505,000, or $252,500 for married couples filing separately.
• The deduction is reduced by 30% of the amount by which income exceeds the applicable threshold.
• The reduction can't push the SALT deduction below $10,000, or $5,000 for married couples filing separately.

That means some higher-income taxpayers can still claim a SALT deduction, even after the expanded portion of the benefit has phased out.

Yes, you still have to itemize

The higher SALT cap doesn't mean every homeowner gets a $40,400 tax deduction. (SALT is an itemized deduction, so taxpayers need to compare their itemized deductions with the standard deduction.)

For 2026, the standard deduction is $16,100 for single filers and $32,200 for married couples filing jointly.

For some homeowners, property taxes, combined with state income taxes, mortgage interest, and other deductible expenses, could make itemizing worthwhile. For others, the standard deduction may still provide the larger tax benefit.

And remember: A tax deduction isn't a dollar-for-dollar reduction in taxes. It reduces the amount of income subject to tax.

The big SALT change came in 2025

The 2026 $40,400 SALT cap is part of a temporary expansion created by the Trump/GOP 2025 tax law overhaul.

First, a little background: Before 2018, there was no limit on the amount that could be deducted. But the 2017 Tax Cuts and Jobs Act (TCJA), also known as the "Trump tax cuts," imposed a $10,000 SALT deduction cap ($5,000 for married individuals filing separately) from 2018 through 2025.

In his second term as president and amid political debate over the cap being too low, Donald Trump called for increasing the SALT deduction limit. So, the SALT cap increased from $10,000 to $40,000 for 2025 and is scheduled to increase by 1% each year through 2029. The income threshold for the phaseout also increases by 1% annually.

Under current law, the SALT cap is scheduled to be:

2025: $40,000

2026: $40,400

2027: $40,804

2028: $41,212

2029: $41,624

2030: $10,000

*Income phase-outs for each of those years will also adjust accordingly.

Beginning in 2030, if Congress doesn't act with new legislation, the SALT deduction cap is scheduled to return to $10,000 for most taxpayers and to $5,000 for married couples filing separately.

Other homeowner tax breaks to know

SALT isn't the only federal tax break that may help offset some of the costs of owning a home.

Mortgage Interest: Homeowners who itemize generally can deduct interest paid on qualifying mortgage debt, subject to federal limits. Interest on a home equity loan or line of credit can also qualify when the money is used to buy, build, or substantially improve the home.

Mortgage Points: Points paid on a mortgage used to buy or substantially improve a primary residence may be deductible, subject to IRS requirements.

Home Sale Gains: Homeowners who sell a primary residence at a profit may be able to exclude up to $250,000 of the gain, or up to $500,000 for married couples filing jointly, if they meet the ownership and use requirements.

Homeowner tax breaks that don't carry into 2026 are the federal credits for energy-efficient home improvements. The 2025 tax law ended the Energy Efficient Home Improvement Credit and Residential Clean Energy Credit for qualifying activity after Dec. 31, 2025.

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Stocks opened higher Wednesday thanks to a tame inflation report. A reinvigorated AI trade, courtesy of several well-received earnings reports, kept equities mostly higher into the close, with one of the three main indexes nearing a new record high.

The broader S&P 500 finished up 0.3% at 7,748 — just shy of last Friday's all-time closing high of 7,757.67 — and the tech-heavy Nasdaq Composite added 0.5% to 26,588. The blue-chip Dow Jones Industrial Average turned lower in the final minutes of the session, finishing down 0.04% at 53,770.

Things got off to a solid start this morning after the Bureau of Labor Statistics (BLS) said the Consumer Price Index (CPI) rose 0.1% from June to July and was up 3.4% year over year.

This matched economists' expectations, while the 12-month rate rose at a slower pace than June's 3.5% increase.

Cooling energy prices had a positive impact on headline inflation, but even core CPI, which excludes volatile food and energy costs, was mild. Core inflation rose 0.2% month over month and was 2.5% higher year over year. This compares to June's flat monthly reading 2.6% annual increase.

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"For the Federal Reserve, this is a helpful report rather than an all-clear," says Daniela Hathorn, senior market analyst at Capital.com. "Inflation is moving in the right direction despite the earlier energy shock, while recent weakness in the labor market gives policymakers even less reason to consider another rate increase in September."

But inflation remains above the Fed's 2% target, Hathorn adds, meaning the central bank "is unlikely to declare victory yet, especially after Kevin Warsh was adamant to point out his focus on making sure that high inflation does not become detrimental to the U.S. economy."

Still, the July CPI report lowered expectations that the Fed will hike rates next month. According to CME Group FedWatch, futures traders are now pricing in a 60% chance the central bank will keep the federal funds rate unchanged next month — up from 52% one day ago.

Super Micro, CoreWeave stocks soar on earnings

Well-received earnings reports from several artificial intelligence companies also lifted sentiment on Wednesday.

Super Micro Computer (SMCI), for one, was the best S&P 500 stock today, surging 19% after the AI server, software and infrastructure company disclosed higher-than-expected fiscal fourth-quarter earnings and gave strong fiscal 2027 first-quarter guidance.

"We added several hundred enterprise and other customers in the past year, generated more than $60 billion in new orders, and booked record backlog entering fiscal 2027," said Super Micro Computer CEO Charles Liang in the press release.

CoreWeave (CRWV), meanwhile, jumped 19.3% after the AI cloud platform said second-quarter revenue more than doubled year over year — and that it expects more of the same in Q3.

"We believe CRWV is positioned to capture meaningful share of an AI cloud provider market growing at a server-melting pace, and we continue to see growing demand for CRWV's platform," says Mizuho Americas analyst Gregg Moskowitz.

However, the analyst cautions that the AI stock's risk/reward is "somewhat balanced given some ongoing uncertainty about the magnitude of CRWV's revenue upside over the near term."

Nebius pops 34% after earnings

While Wednesday's gains for Super Micro and CoreWeave stocks are certainly impressive, Nebius Group (NBIS) emerged as the day's hottest stock — popping 34.1% after the AI cloud infrastructure company said revenue surged more than fivefold in its second quarter, to $582.3 million.

Nebius' results show that "AI compute demand is insatiable and pricing is strengthening, not weakening," says Luke Lango, lead technology and cryptocurrency analyst at InvestorPlace.

Short sellers may have helped Nebius' red-hot rally, too. Nearly 25% of NBIS' stock is sold short, meaning speculators bet that its share price would drop. When a stock starts to soar, short sellers are forced to buy back the shares they sold short in order to contain their losses — and we may have seen some of that in today's price action.

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For millions of Americans living in neighborhoods governed by homeowners associations (HOAs), disputes over fines, liens and foreclosure have become an increasingly common source of frustration. Georgia is now taking a different approach.

A new law will require many HOAs to register annually with the state and provide financial information before they can collect fines, place liens on homes or pursue foreclosure. The legislation gives the state new oversight powers and adds protections designed to increase transparency and accountability.

While Georgia is one of the first states to adopt this type of registration system, housing experts say it reflects a broader trend as lawmakers across the country take a closer look at how HOAs operate and the authority they have over homeowners.

Georgia's new HOA registration requirements

Georgia's Property Owners' Bill of Rights Act (SB 406) creates a new state registration system for homeowners associations overseen by the Georgia Secretary of State. The law was signed by Gov. Brian Kemp on May 12, 2026.

Beginning January 1, 2027, qualifying HOAs must register with the state each year to maintain certain enforcement powers. As part of the registration process, associations must submit information including:

• The HOA's name, address and officers
• A copy of its governing documents
• A financial statement dated within one year of filing
• Other information required by the Secretary of State as regulations are finalized

The registration requirement generally applies to residential property owners associations, including many neighborhood HOAs, condominium associations and other common-interest communities.

The law has two major implementation dates. Some foreclosure-related provisions took effect on July 1, 2026, while the registration requirements and many homeowner protections become effective January 1, 2027.

What happens if an HOA doesn't register?

The biggest consequence is that an unregistered HOA loses some of its most significant enforcement tools.

Under the new law, an association that fails to maintain its registration generally cannot:

• Collect fines or certain fees
• File or record liens against homeowners
• Initiate foreclosure proceedings
• Use certain collection actions tied to those enforcement powers

The Secretary of State also gains authority to deny, suspend or revoke an HOA's registration under certain circumstances and investigate complaints from homeowners after the law takes effect.

For homeowners, that creates a new layer of oversight that previously didn't exist.

Why lawmakers said reform was necessary

Georgia lawmakers introduced the legislation after years of complaints from homeowners who said they had little recourse when disputes with their HOA escalated.

Common concerns included:

• Limited financial transparency
• Disputes over fines and assessments
• Collection practices
• The possibility of foreclosure over relatively small unpaid amounts
• Few state-level options for resolving complaints

The law also raises the threshold before an HOA can pursue foreclosure for unpaid assessments. Beginning in 2027, the minimum delinquency generally increases to $4,000 (or 12 months of regular assessments, subject to statutory minimums), and fines generally cannot be counted toward that foreclosure threshold.

Additional notice requirements also give homeowners more time before foreclosure proceedings can begin.

Supporters say the changes strike a better balance between allowing HOAs to collect legitimate assessments while reducing the risk that homeowners could lose their property over relatively minor disputes.

Could other states follow Georgia's lead?

Georgia's registration system is unusual, but it fits within a broader national movement toward greater HOA oversight.

In recent years, several states have adopted or expanded homeowner protections by requiring greater transparency, strengthening due-process protections before fines are imposed, limiting foreclosure authority or increasing disclosure requirements.

States including Colorado and Florida have enacted reforms affecting how HOAs issue fines, conduct hearings and enforce community rules. Mandatory annual registration with state oversight remains relatively uncommon, however.

Whether other states adopt a system similar to Georgia's will likely depend on local political priorities and the volume of homeowner complaints. As more Americans live in HOA-governed communities, lawmakers are increasingly examining questions such as:

• How much financial information associations should disclose
• Whether homeowners have adequate appeal rights
• When liens and foreclosures should be permitted
• What level of state oversight is appropriate

Why this matters for homeowners

Even if you don't live in Georgia, the new law is worth watching.

According to industry estimates, tens of millions of Americans live in communities governed by HOAs, and the number continues to grow. As those communities expand, so do questions about transparency, governance and homeowner rights.

Georgia's law signals that some states are willing to place additional accountability requirements on homeowners associations rather than leaving oversight almost entirely to private governing documents.

For homeowners, it’s important to stay informed about changes to HOA laws in your own state. While mandatory registration requirements remain rare today, Georgia's approach could become a model for future legislation as more states explore ways to improve transparency, financial accountability and consumer protections for residents living in HOA communities.

When did you last review your homeowners insurance?

As home values and rebuilding costs change, your insurance needs can change, too. Comparing homeowners insurance options can help you make sure you have the right coverage at a competitive price.

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The main stock indexes drifted lower as crude oil prices and interest rates moved mostly sideways on Tuesday. Investors, traders and speculators are waiting for this week's incoming inflation data before they make any major moves. We know earnings season has been big for top- and bottom-line beats, as well as for AI hyperscaler budget growth. Less certain, still, is the situation in the Middle East and who controls the Strait of Hormuz.

"Corporate earnings are now so strong that the wild trading swings that occurred in July have been muted by the reality that record sales, earnings, positive guidance, and rising order backlogs are real," observes Louis Navellier of Navellier & Associates. According to FactSet, based on results for 88% of the S&P 500, 86% have reported a positive earnings surprise, and 76% have reported a positive revenue surprise.

Earnings growth so far is 50.4%, the highest rate since the second quarter of 2021 (91.6%). Reported revenue growth to date is 15.0%, the best figure since the fourth quarter of 2021 (16.1%). All 11 sectors have reported year-over-year revenue growth; five have posted double-digit rates, with energy stocks, technology and communication services stocks leading the way.

At the same time, in the aftermath of a cooler-than-expected July jobs report, the primary factor driving price action this week is inflation. All eyes are on the release of the July Consumer Price Index (CPI) report before the opening bell on Wednesday.

Whether the Federal Open Market Committee (FOMC) raises its target range for the federal funds rate at the conclusion of the September Fed meeting is now almost literally a 50-50 proposition. According to CME FedWatch, the probability that Fed Chair Kevin Warsh & Co. raise interest rates by 25 basis points in September is 49.9%.

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The front-month West Texas Intermediate crude oil futures contract was up 1.6% on Tuesday to $83.45 per barrel. The 2-year Treasury yield inched back to 4.224% from 4.239%, the 10-year was down to 4.692% from 4.698%, and the 30-year ticked lower to 5.242% from 5.243%.

At the closing bell, the tech-heavy Nasdaq Composite had shed 0.6% to 26,445, the broad-based S&P 500 was lower by 0.3% to 7,728, and the blue-chip Dow Jones Industrial Average had declined 0.3% to 53,791.

AI stocks are set to report

AI native cloud computing platform CoreWeave (CRWV, +2.4%) and AI infrastructure supplier Super Micro Computer (SMCI, +0.5%) make an appearance on the earnings calendar after today's close.

Wall Street expects CoreWeave, one of the hottest IPOs of 2025, to report triple-digit revenue growth, roughly in line with its most recent two quarters, and to update markets on a backlog that was $99 billion at last check. Analysts also expect Super Micro's top-line growth to exceed 100%, with new orders pre-reported at about $60 billion also on their collective mind.

Meanwhile, Nvidia (NVDA, -0.02%) has reasserted itself atop the global market cap rankings, as markets seem to approve of a new $500 billion plan to support AI infrastructure spending.

Intel (INTC, +0.2%) is also seeing a positive reaction to its upsized $20 billion offering of new shares, as the semiconductor stock seeks to expand its capacity. Intel reported expectations-beating results and raised full-year guidance on July 23.

Nvidia will unofficially bring down the curtain on the current reporting season when the biggest mover of the AI boom reveals its fiscal 2027 second-quarter results after the closing bell on Wednesday, August 26.

CAH rises to and retreats from a new all-time high

Cardinal Health (CAH, +1.2%) was among the top-performing S&P 500 stocks early on Tuesday and traded up to a new all-time high intraday after the medical services and products provider reported mixed fourth-quarter results but shared strong guidance for fiscal 2027.

CAH missed Wall Street's earnings estimate and beat on revenue for the three months ending June 30. But management expects earnings per share of $12.40 to $12.60 next fiscal year, which represents year-over-year growth of 13% to 15%, and is well ahead of a FactSet-compiled consensus of $12.08 at the midpoint.

The company forecast 3% to 5% growth in revenue from its pharmaceuticals business, 2% to 4% growth for medical products and distribution. Guidance includes an uplift from the completed acquisition of Strive Medical and the announced deal to buy diabetes assets from AdaptHealth (AHCO, +8.2%).

CAH, a sleeper blue-chip stock, has generated a total return of more than 400% over the trailing five years vs less than 90% for the S&P 500. CAH is also outpacing the S&P 500 over the trailing 12 months (52.2% to 22.8%), as well as year to date (16.2% to 14.0%) through Monday.

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For millions of Discover cardholders, the long-awaited integration with Capital One is becoming a reality. After Capital One completed its acquisition of Discover in 2025, customers are now beginning to see their accounts move to Capital One.

If you've received an email or letter about your account, you may be wondering what will change and whether you need to take any action.

For most cardholders, your card, rewards and credit history will largely remain intact. Here's what to know about the Discover migration and what to expect when your account moves to Capital One.

When will your Discover account move to Capital One?

Capital One is migrating Discover credit card accounts in waves rather than moving everyone at once. Customers will receive advance notice by email or mail before their account is scheduled to transition. Until you receive that notification, you'll continue managing your account through Discover's website and mobile app as usual.

Once your migration date arrives, you'll begin managing your account through Capital One's website and mobile app instead.

During the days immediately before your move, some features, such as redeeming rewards or updating account information, may be temporarily unavailable while your information transfers. Capital One says these interruptions should be brief.

Will you get a new credit card?

Probably not. Most primary Discover cardholders will continue using their existing physical card even after their account moves to Capital One.

Your current card number will remain the same, meaning cards you've saved with online retailers, subscription services and digital wallets should continue working without requiring updates.

Some customers may receive replacement cards in the future because of normal reissuance cycles or other account-specific reasons, but a new application isn't required.

There is one notable exception: authorized users and joint account holders will receive new cards with unique card numbers. While those cards remain linked to the same account, the separate numbers give primary cardholders more control over tracking purchases and locking individual cards if needed.

What happens to your rewards and account history?

For many Discover customers, this is one of the biggest concerns and fortunately, it's one area where very little is changing. Your existing cash back rewards balance will transfer with your account, and your rewards earning rates will remain the same.

Discover it Cash Back and Discover More cardholders will also continue participating in the rotating 5% cash back program, including quarterly activation requirements. If you've already activated a bonus category before your account moves, that activation will carry over.

Your account history also stays intact. Capital One says the transition won't be reported as a new credit account, meaning your original account opening date will remain on your credit report.

While some credit monitoring services may alert you because the lender's name changes to "Discover by Capital One" or "Capital One," your account age and payment history remain the same.

Will autopay and recurring payments still work?

In most cases, yes. Capital One says it will transfer automatic payments, scheduled payments and linked bank account information as part of the migration. If, for any reason, a payment instruction cannot be transferred, affected customers will be contacted directly with additional instructions.

Because your primary card number generally isn't changing, recurring charges such as streaming subscriptions, gym memberships and utility bills should continue processing normally without requiring updates.

Still, it's worth monitoring your account during the first billing cycle after your transition to ensure scheduled payments process correctly.

How will you manage your account after the transition?

This is where you'll notice the biggest difference. After your account migrates, you'll no longer use Discover.com or the Discover mobile app to manage that particular credit card. Instead, you'll access your account through Capital One's website and mobile app.

If you're already a Capital One customer, your Discover account may simply appear alongside your existing accounts after migration. If not, Capital One will send instructions explaining how to establish online access before your transition date.

Customer service will also transition to Capital One, and the company says support will continue to be available around the clock.

In addition to keeping existing Discover features, migrated cardholders may also gain access to certain Capital One benefits, including Capital One Offers and elevated rewards on eligible travel booked through Capital One Travel.

What should Discover cardholders do now?

There's no need to rush into any changes, but a few simple steps can help make the transition smoother:

• Watch for official emails or letters from Discover or Capital One announcing your migration date
• Verify that your mailing address, email address and phone number are up to date
• Download or save recent account statements if you prefer keeping personal copies
• Be cautious of phishing emails or fake websites claiming you need to "verify" your account. Instead of clicking links in unsolicited messages, navigate directly to Discover's or Capital One's official websites
• Review your account after the transition to confirm automatic payments, rewards balances and recent transactions transferred correctly

Most cardholders won't have much to do

Getting a notice that your credit card is moving to a different bank can sound like a much bigger deal than it actually is. Fortunately, for most Discover customers, the transition should happen largely behind the scenes.

You'll keep your account, your payment history and your rewards, and most cardholders can continue using the same physical card they've always had. The biggest difference will simply be managing your account through Capital One instead of Discover once your migration is complete.

When your transition date arrives, take a few minutes to log in to your new account, verify that your autopay and payment information transferred correctly and keep an eye on your first statement. Beyond that, you can expect business to continue as usual.

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Proposed legislation targeting "mega" retirement accounts has put high-net-worth IRAs and 401(k)s back in Washington's crosshairs.

The bill would force wealthy account holders to take mandatory distributions and block new contributions — a response to data showing some investors have accumulated multi-million-dollar balances through early-stage private equity and startups.

But while similar proposals have stalled in the past, this bill may reflect a broader policy trend. The legislative effort coincides with recent U.S. Department of the Treasury measures targeting other "aggressive planning" strategies like Section 351 ETF exchanges.

So whether this specific measure advances through Congress or not, the debate highlights key considerations for long-term tax, liquidity, and asset-location planning.

Here's what high-earning IRA account holders need to know in 2026.

Newly proposed limit cap on IRAs and 401(k)s

Sen. Ron Wyden (D-Ore.) and Rep. Richard E. Neal (D-Mass.) recently introduced legislation to cap IRA and 401(k) balances for high-net-worth accounts.

But the proposed restrictions don't apply to everyone with a large account balance. Instead, to trigger mandatory withdrawals and contribution bans, a taxpayer must meet two criteria in the same tax year:

• High-income floor: Modified adjusted gross income (MAGI) over $400,000 for single filers (or $450,000 for married couples filing jointly).
• Total asset cap: Combined retirement balances exceeding $10 million across all traditional IRAs, Roth IRAs, and defined contribution plans (like 401(k)s and 403(b)s).

If passed, the legislation would bar any individuals meeting both rules from making further contributions to their tax-advantaged retirement savings accounts for that year.

Additionally, forced withdrawals of the aggregate excess would be required (more on that below).

The two-tiered forced withdrawal rule

For high earners with over $10 million in affected accounts, the proposal requires accelerated withdrawals from tax-advantaged accounts. Yet the withdrawal rules are slightly different depending on how much you have saved for retirement.

Traditional IRAs and 401(k)s are normally subject to required minimum distributions (RMDs) beginning at age 73 or 75, under the SECURE 2.0 Act. By requiring a 50% payout of the aggregate excess over $10 million, this proposal creates a much steeper payout schedule that applies regardless of age.

Additionally, while Roth accounts are funded with after-tax dollars and allow tax-free withdrawals without lifetime RMDs, the bill targets high-net-worth Roth IRAs by requiring excess funds to be transferred to standard taxable accounts (if an account is worth $20 million or more).

Once forced money leaves a Roth, it enters a regular brokerage or bank account. From that day forward, any dividends, interest, or capital gains generated by those funds are subject to annual federal and, where applicable, state income taxes.

Why it's proposed (and why it faces resistance)

Wyden and Neal introduced their mega-IRA cap legislation in conjunction with Joint Committee of Taxation (JCT) data showing that over 32,000 Americans hold more than $10 million in tax-advantaged accounts.

Notably, the data presented a core group of about 200 individuals who hold an average of $409 million each — largely through early-stage private equity or startup investments placed inside self-directed IRAs, as reported by The Wall Street Journal.

"Tax-preferred retirement accounts are not supposed to be a loophole for the ultra-rich to shelter immense fortunes," Wyden stated in a press release. "They’re a lifeline for working Americans who may not otherwise have a dignified retirement.”

However, this is not the first attempt at a cap. A similar provision was included in early drafts of the Biden-era Build Back Better Act before lawmakers removed it from the final bill.

The primary pushback came from the financial services industry, including groups like the Retirement Industry Trust Association (RITA) and alternative asset custodians.

Critics claimed that forcing rapid distributions on private equity, startup stock, or real estate assets would force account holders to sell non-public assets at fire-sale prices just to satisfy cash distribution mandates.

Congressional Republicans and conservative think tanks, like The Heritage Foundation, also opposed these measures. They claimed that forcing new distribution rules onto existing balances would unfairly penalize investors who followed the law as originally written.

What high-net-worth investors should watch in 2026

While the debate over this specific bill continues, the renewed discussion signals that mega-retirement accounts remain in the legislative limelight. High earners and savers can use these proposed rules as a "stress test" for their long-term estate and tax plans:

• Diversify across account types. Holding all your wealth in a single tax-deferred vehicle can create legislative risk, or, at the very least, increase your total lifetime tax burden. Spreading assets across traditional, Roth, and taxable brokerage accounts gives you flexibility to manage your adjusted gross income (AGI) if distribution rules or federal tax brackets shift.
• Build liquidity alongside private assets. Self-directed IRAs containing private equity, startup stock, or real estate face liquidity risks when required distributions apply. Maintaining liquid buffers, like public equities or cash equivalents, may help prevent forced sales of illiquid assets during regulatory changes or normal RMD years.
• Keep alternative asset valuations audit-ready. IRAs holding private stock or real estate may draw increased IRS scrutiny because misvalued assets can trigger accidental "self-dealing" or other prohibited transactions. Thus, keeping annual, independent appraisal records could help your portfolio stay compliant if valuation enforcement tightens.

For high earners, watching Washington is wise, but you don't have to wait for a final vote on a key piece of legislation. A flexible tax plan built on true asset diversification remains one of the single best protections against an ever-shifting tax code.

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The main stock indexes were lower on Monday as oil prices and interest rates surged amid what looks more and more like a stalemate at the Strait of Hormuz. Investors, traders and speculators cast wary eyes on the Middle East ahead of the release of consumer and producer inflation data on Wednesday and Thursday.

A cooler-than-expected July jobs report lifted odds the Federal Open Market Committee (FOMC) will stay on pause when it meets again in September. Price action shifted back in favor of a rate hike today, though, as it appeared any durable peace in the Middle East will leave Iran in control of traffic through the critical channel connecting Persian Gulf oil and gas production to global markets.

"The S&P 500's breakout from a nearly two-month trading range could get a test this week from inflation and geopolitics," E*TRADE from Morgan Stanley Managing Director Chris Larkin writes. "The jobs report may have eased some anxieties about a Fed rate hike next month, but those concerns could hit new highs without cooler-than-expected inflation numbers this week."

As Larkin notes, last week's rally was based on enthusiasm about a deal to reopen the Strait of Hormuz. "Without a deal on the table," he cautions, "markets may be less likely to respond positively to vague reports about progress in negotiations."

The main event on this week's economic calendar is the release of the July Consumer Price Index (CPI) report on Wednesday. Producer Price Index (PPI) data will follow on Thursday.

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The front-month West Texas Intermediate crude oil futures contract was up 4.9% on Monday to $82.05 per barrel. The 2-year Treasury yield rose to 4.241% vs 4.204% on Friday. The 10-year was up to 4.705% from 4.658%, the 30-year to 5.249% from 5.210%.

At the closing bell, the tech-heavy Nasdaq Composite had shed 0.3% to 26,605, the broad-based S&P 500 was lower by 0.06% to 7,753, and the blue-chip Dow Jones Industrial Average had declined 0.1% to 53,975.

Jefferies says AAPL is a sell

Apple (AAPL, -1.5%) was one of the worst-performing Dow Jones stocks on Monday after a team of Jefferies analysts led by Edison Lee downgraded the iPhone maker from Hold to Underperform, the equivalent of a Sell rating.

"Our supply chain checks suggest that the all-glass iPhone has been canceled due to low yield," they write. "We view this as a major setback to efforts to bring in higher-priced iPhones amid soaring memory costs."

The analysts had forecast a September 2027 release of the all-glass iPhone. Higher costs and a lower average selling price (ASP) is a dynamic that's going to pressure Apple's margins and its earnings per share.

"More importantly," Lee & Co. write, "we believe the plan was to extend the all-glass features to future iPhone Pro and Pro Max models, further raising their ASP and margin."

Canceling all-glass iPhone models lowers the analysts' estimated compound annual growth rate for the iPhone ASP between fiscal 2026 and fiscal 2031 from 9.0% to 6.8%.

Berkshire gets an earnings bounce

Berkshire Hathaway (BRK.B, +1.5%) rallied to a new 52-week high and to within a modest "up" day of a new all-time high after management reported an expectations-beating operating profit (PDF) for the second quarter.

CEO Greg Abel is deploying the cash pile that seemed to define the last several quarters of Warren Buffett's run as the top stock-picker for the Berkshire Hathaway portfolio. Abel also increased the pace of stock buybacks during the quarter.

BRK.B established its all-time closing high of $539.30 on May 2, 2025, the day before Buffett announced his retirement as CEO at Berkshire's annual meeting. Buffett did say in mid-July that he led the effort to add Google parent Alphabet (GOOGL, +0.9%) to the Berkshire portfolio.

UBS Managing Director Brian Meredith reiterated his Buy rating and raised his 12-month target price from $585 to $604, citing Berkshire's "strong balance sheet, upside to earnings from operational improvements, and deployment of excess cash into accretive acquisitions and/or share repurchases."

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June inflation reports gave Wall Street something it hadn't seen in a while: negative month-over-month readings. These came as energy prices slumped on a ceasefire between the U.S. and Iran.

But that appears to be a one-off occurrence. According to the Bureau of Labor Statistics (BLS), the July Consumer Price Index (CPI), released Wednesday morning, showed headline inflation rose 0.1% month over month and was up 3.4% year over year.

Shelter accounted for nearly two-thirds of the monthly increase, while the indexes for both food (+0.1%) and food away from home (+0.3%) were up too.

Energy prices, which have had an outsize impact on CPI in recent months, fell 1.5% from June to July. Still, the index for energy was 14.7% higher year over year as gas prices surged nearly 25% over the past 12 months.

The data matched economists' estimate for a 0.1% monthly increase and a 3.4% annual rise, while the 12-month figure eased from June's 3.5%.

The data lifted expectations that the Federal Reserve will keep rates unchanged when it meets in September, especially following a weak July jobs report.

According to CME Group FedWatch, futures traders are pricing in a 64% chance the Fed will keep the federal funds rate at its current range of 3.50% to 3.75% next month, up from 52% yesterday.

What is the CPI?

"CPI is a measure of the average price of that basket of goods and services over time," writes Kiplinger contributor Coryanne Hicks. "The specific goods and services within the CPI basket are based on information that around 24,000 families and individuals give the U.S. Bureau of Labor Statistics on what they buy."

The two primary measures of CPI are headline, which is the total inflation rate experienced by households, and core CPI, which excludes volatile food and energy prices.

Core CPI rose 0.2% from June to July and 2.5% over the last year. Economists expected core CPI to be up 0.3% month over month and 2.5% year over year.

With the July CPI report on the books, we looked at what economists, strategists and other experts on Wall Street are saying about what the data means for the Fed and the economy. You'll find these outlooks, edited at times for brevity, below.

Wall Street weighs in on the July CPI report

"For the Federal Reserve, this is a helpful report rather than an all-clear. Inflation is moving in the right direction despite the earlier energy shock, while recent weakness in the labor market gives policymakers even less reason to consider another rate increase in September. However, headline inflation at 3.4% remains comfortably above target and energy prices are still nearly 15% higher than a year ago, so the Fed is unlikely to declare victory yet, especially after Kevin Warsh was adamant to point out his focus on making sure that high inflation does not become detrimental to the U.S. economy." - Daniela Hathorn, Senior Market Analyst at Capital.com

"Typically, the market would be buoyed by the thought of rate cuts, but in a world where many are expecting rate hikes, anything that can delay — or squash the need for — rate hikes will be viewed positively. The market and the Fed won't stop worrying about inflation, and there are another set of reports before the next Fed meeting, but these two reports (Jobs and CPI) are going to go a long way toward keeping the bulls running in the near term." - Chris Zaccarelli, Chief Investment Officer for Northlight Asset Management

"Today's July CPI report came in as expected. The bigger concern is what's happening beneath the headline numbers. The labor market has shown signs of weakening. At the same time, consumer credit numbers illustrate that consumers are feeling pressure. Recent data from the New York Fed showed revolving credit card balances continuing to rise, with total household debt reaching $1.26 trillion, up 1.7% from the previous quarter. Late-stage delinquencies have also risen to levels we haven’t seen since around 2008. For us, that provides a different and arguably more meaningful view of affordability than the CPI alone." - Kathleen Grace, CEO, CIO and Founder of Fiduciary Family Office

"As the economy reaches the end of the year, we should expect inflation to decelerate to 2.7% as transportation costs and healthcare costs ease. We expect the debate at the September FOMC meeting to be lively as the economy experiences a tight labor market while the inflation picture is quite blurry. Our baseline is that the Fed holds rates steady, but an increasing number of voting members are hawkish and could convince the majority to implement a hike. Overall risk sentiment is positive as inflation is expected to improve by the end of the year." - Jeffrey Roach, Chief Economist for LPL Financial

"While this morning's CPI report did not provide a flashy headline increase, it once again reinforces inflation's persistence above the Fed's target rate. While at first glance this reduces expectations for the Fed to hike rates at the September meeting, it also increases pressure on the new Fed chair Warsh to eventually deliver on his message that this pace of increasing consumer prices will not be tolerated. This dynamic may also further fuel the rise in long-dated Treasury yields, as the Fed seems comfortable to allow the bond market to enforce any tightening in the near term." - Jordan Rizzuto, Managing Partner and CIO at GammaRoad Capital Partners

"In our view, this month's CPI inflation reading, combined with a lackluster July jobs report, may keep hawkish Fed officials at bay in September. However, we remain guarded on the near-term outlook for inflation amid volatile oil prices tied to the ongoing Middle East conflict, along with lingering core price pressures from a strong economy and the AI boom." - Gary Schlossberg, Global Strategist at Wells Fargo Investment Institute (WFII)

"Today's data suggests the Fed has cover to remain on hold at its September meeting, particularly as policymakers will receive two critical data releases beforehand: the August employment report and August CPI print. These upcoming reports will provide a more complete picture of economic conditions and inflation momentum, giving the Fed flexibility to adopt a patient, data-dependent approach. Market participants should view today's report as constructive but not decisive, with the August data serving as the true determinant of September's policy decision." - Greg Gizzi, Chief Investment Officer of Fixed Income and Head of Municipal Bonds at Nomura Asset Management International

"The CPI report provided more of the same. A directionless indicator for the Fed. Some pressure was removed for a rate increase, which is probably no surprise to most of the Fed. Doing nothing to the rates is actually working. Making a call when the information is weak would give credence to political pressures more than economic ones. I think what the U.S. economy needs is time to heal and strengthen. I still believe the pressure to even drop rates in the next several months is not out of line." - Ben Fulton, CEO at WEBs ETFs

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Investors, traders and speculators pushed interest rates lower and stocks higher after softer-than-expected incoming data suggested there's little if any inflation pressure from the labor market right now. Risk-on momentum held up during a relatively quiet early August trading session, and two of the three main equity indexes made all-time weekly closing highs at its end.

Traders in the federal funds rate futures market took the odds of a rate hike at the September Federal Open Market Committee Meeting (FOMC) from 55% on Thursday to 45% following the release of the July jobs report before the opening bell on Friday.

The front-month West Texas Intermediate crude oil futures contract was down 0.5% to $76.94 per barrel. WTI was down 9.1% this week, as interested parties continue to seek solutions to open the Strait of Hormuz acceptable to both Iran and the U.S.

The 2-year Treasury yield retreated to 4.195% today from 4.245% on Thursday. The market-based measure of short-term monetary policy intentions was down 10 basis points this week from 4.291% last Friday.

The 10-year was down to 4.641% from 4.670% yesterday and 4.745% last week, and the 30-year fell to 5.192% vs 5.212% and 5.275%. There was no immediate reaction at the longer end of the yield curve to President Donald Trump reviving his effort to fire Fed Governor Lisa Cook.

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Markets will look forward to next week's economic calendar and the release of Consumer Price Index (CPI) and Producer Price Index (PPI) data for July before the opening bell on Wednesday and Thursday, respectively.

At the closing bell on Friday, the tech-heavy Nasdaq Composite had added 1.3% for the day and 5,2% for the week to 26,690. The broad-based S&P 500 was up 0.6% and 3.6% to 7,757, an all-time high, and the blue-chip Dow Jones Industrial Average had risen 0.3% and 3.0% to 54,036, an all-time weekly closing high.

SPCX didn't go down today

SpaceX (SPCX, +15.8%) has had a historically bad flight in the aftermath of the biggest IPO in stock market history, opening at $150 on June 12 and rising to $225.64 intraday on June 16, but falling to an all-time low of $104.83 on Monday.

Management reported expectations-beating second-quarter results after the closing bell on Tuesday, but SPCX was down 13.6% on Wednesday. The fact that Elon Musk's extraterrestrial venture posted a gain today is noteworthy because it marks the end of a four-week losing streak.

Indeed, SPCX was up 22.8% this week. According to JP Morgan analyst Arun Jain, retail investors are into SpaceX to the tune of approximately $3.6 billion since June 12.

The stock is going to be volatile as more supply of shares come to the market during what will be an extended series of lock-up expirations. We'll see whether there's demand to meet that supply over the coming months.

DOCS gets a big assist from AI

Officially, Doximity (DOCS, +32.6%) is a healthcare stock. That's just what S&P Global says, though. Today, it's trading on AI. And the trading is good.

DOCS closed at $20.66 on Thursday but traded as high as $64.99 in the pre-market on Friday and peaked at $39.99 during the regular session before closing at $27.40.

That's despite the fact that management missed Wall Street's second-quarter revenue and earnings forecast and came up short of analysts' consensus top-line estimate for the third quarter.

This move was all about the conference call and how Doximity appears to be differentiating from other software stocks. "We're the doctors' digital platform," CEO Jeff Tangney said, "and AI is just the next chapter in our growth."

Management noted that the Doximity Ask AI outperformed Anthropic’s Fable 5 and other models in a recent study of medical AI tools conducted by Stanford and Harvard. Tangney noted too that usage rates for Doximity’s tools have surged during the current quarter.

The CEO also emphasized that Doximity shows it's possible to generate strong software margins while investing in AI. "We’re leaning in as we see a once-in-a-generation opportunity to build the new AI age of medicine."

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Markets were mostly lower on Thursday as oil prices and interest rates rose amid uncertainty about the U.S. position on a deal between Oman and Iran to reopen the Strait of Hormuz. While we're still seeing strong data from the earnings calendar, price action today reflected both high expectations, as well as concern for the future.

The front-month West Texas Intermediate crude oil futures contract was up 3.6% to $77.93 per barrel. The Islamic Republic's semi-official Fars news agency reported that Iran wants to ban American and Israeli ships from the Strait of Hormuz. Fars also said Iran is seeking compensation from the U.S. and Israel before they're permitted to transit the passage from the Persian Gulf to global markets.

The 2-year Treasury yield climbed to 4.243% today from 4.179% on Wednesday; the 10-year was up to 4.664% from 4.617% and the 30-year rose to 5.205% vs 5.173%.

Markets will get some big-picture perspective from the economic calendar when the Bureau of Labor Statistics releases the July jobs report before the opening bell on Friday.

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At the closing bell on Thursday, the broad-based S&P 500 was down 0.2% at 7,710, the blue-chip Dow Jones Industrial Average had declined 0.9% to 53,885, and the tech-heavy Nasdaq Composite was lower by 0.06% at 26,348.

Sandisk's guidance is soft

Sandisk (SNDK, -6.8%), which has been one of the best-performing S&P 500 stocks since joining the index in November, recovered from its intraday lows. But the flash storage specialist still suffered another steep loss because it fell short of great expectations.

Management reported exponential year-over-year growth at the top and bottom lines for its fiscal fourth quarter, and the tech stock topped Wall Street's forecast for revenue and earnings per share.

But Sandisk guided to fiscal 2027 first-quarter revenue of $10.3 billion to $10.8 billion, and analysts wanted to see $10.82 billion. Margin guidance of 83% to 85% was also disappointing relative to a fourth-quarter figure of 84.6%.

Still, the bigger picture for earnings is bright, as Louis Navellier of Navellier & Associates notes, with 71% of companies in the S&P 500 reporting so far this season.

"Revenues are running 3.8% higher than analyst consensus estimates, while earnings are coming in at 7.3% higher than analyst consensus estimates," Navellier says. Seventy-seven percent have reported revenue surprises, and 83% have reported earnings surprises.

"Interestingly," Navellier concludes, "this is also the twelfth quarter in a row where earnings are exceeding sales growth, which is indicative of profit margin expansion."

Why DAVE was so down today

Dave (DAVE, -15.1%) is a digital banking platform, and as recently as January it looked more like a small-cap stock than a mid-cap stock.

A year-to-date gain of more than 94% through Wednesday pushed it well into the higher market cap neighborhood. The reaction to Dave's second-quarter earnings report is bringing it back down.

Dave, which describes itself as "one of the nation's leading neobanks," reported earnings of $4.12 per share, year-over-year growth of 48.2%. And revenue was up 29.7% to $170.8 million.

It's those year-over-year growth figures: They're slowing down. A year ago, Dave reported EPS growth of 263%. Then it was 196%, 93% and 64%.

The trajectory for revenue growth is a little like Hemingway's line from "The Sun Also Rises." It went from 64% a year ago to 63% to 62% to 47% when management reported first-quarter results.

Thirty percent annual revenue growth doesn't exactly suggest "bankruptcy." But there is a "gradually, then suddenly" feel to its failure to keep up with the law of big numbers.

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As more people in the U.S. remain in their homes as they grow older ("age in place"), the cost of making a home safer and more accessible can be a significant hurdle.

A new proposal in Congress would ease that burden by creating a federal tax credit for older homeowners who invest in accessibility upgrades.

The Senior Accessible Housing Tax Credit Act of 2026 would provide a credit of up to $10,000 for taxpayers age 60 and older who make qualifying improvements to help them remain safely and independently in their homes.

The legislation addresses a gap for older adults because Medicare generally doesn't cover structural home modifications, like installing wheelchair ramps, widening doorways, or remodeling bathrooms for accessibility. As a result, many homeowners must pay those often substantial costs out of pocket.

Here's more to know.

New $10,000 home tax credit for older adults?

The Senior Accessible Housing Tax Credit Act of 2026, recently introduced by Sens. Angela Alsobrooks (D-Md.) and Kirsten Gillibrand (D-N.Y.), would create a federal tax credit of up to $10,000 for taxpayers age 60 and older who make qualifying accessibility improvements to their homes.

"This critical legislation allows for seniors to stay in their homes — for many that means homes they love and have been in for decades —and install essential, aging-related modifications," Sen. Alsobrooks stated in a release announcing the proposal.

Sen. Gillibrand, top Democrat on the U.S. Senate Committee on Aging, added that "a safe, accessible place for seniors to live should be a right, not a privilege."

The measure, which has received support from the National Association of Realtors, also has companion legislation in the House, introduced by Democratic Rep. George Latimer of New York. According to the bill's sponsors:

• If enacted, the bill would create a nonrefundable tax credit for eligible taxpayers age 60 or older for expenses related to certain home modifications on their principal residence or a qualifying second home
• The credit would be equal to the cost of eligible expenditures, with an annual limit of $10,000
• Qualifying expenditures would also include certain labor costs related to the preparation, assembly, or installation of an eligible modification

What kind of projects are lawmakers talking about? Installing wheelchair ramps, grab bars, non-slip flooring, bathtub cuts or shower seats, furniture risers or chair lifts, or widening doorways would generally qualify under the proposal.

Replacement of toilets and bathroom vanities and kitchen or bathroom faucets are also mentioned in the bill. However, a general remodeling project, like a kitchen renovation designed primarily for appearance, likely wouldn't qualify.

Aging in place home modifications

The proposal comes as more older adults in the United States look for ways to remain in their homes. According to AARP's 2024 Home and Community Preferences Survey, 75% of adults age 50 and older want to remain in their current homes as they age.

But so-called "aging in place" often requires more than simply remaining in a longtime home. As some people get older, features like stairs, narrow doorways, high thresholds, and traditional bathrooms can make everyday tasks more difficult or increase the risk of falls.

As a result, some homeowners may need to install grab bars or step-free entrances, widen doorways or make other accessibility upgrades to continue living safely and independently.

Those improvements can vary widely in cost. According to data compiled by NerdWallet on aging-in-place home renovations:

• Installing grab bars can cost about $100 to $400
• Widening doorways can cost roughly $600 to $2,000 per doorway
• A stair lift can cost about $7,000 on average

For homeowners who need multiple changes, the expense can be significant.

As mentioned, another challenge is that Medicare generally doesn't pay for these types of home modifications.

Medicare Part B may cover certain medically necessary durable medical equipment (DME) prescribed by a doctor for use in your home (e.g., walkers, wheelchairs, hospital beds), provided deductible and supplier rules are met. But Medicare doesn't cover structural modifications to a home or, for example, bathroom "convenience" items like grab bars or raised toilet seats.

That leaves many paying these expenses out of pocket or looking for other sources of assistance.

Home accessibility tax deductions under current law

Keep in mind that the proposed $10,000 tax credit isn't currently available. Congress would need to pass the legislation and have it signed into law by President Trump before eligible taxpayers could claim it. It's unclear if there's sufficient bipartisan support for the measure to gain traction.

But…all is not lost. As Kiplinger has reported, under current IRS rules, certain home modifications may qualify as deductible medical expenses.

Under existing law, a taxpayer generally must itemize deductions to claim medical expenses, and only eligible medical expenses that exceed 7.5% of adjusted gross income (AGI) can be deducted.

Reimbursed medical expenses are not deductible, and the modification(s) must be made primarily to provide medical care for the taxpayer, a spouse, or a qualifying dependent.

Additionally:

• The improvement generally must be tied to a specific medical need. A homeowner who installs a ramp because of a diagnosed medical condition may be able to deduct some of the cost, but someone who adds accessibility features simply as a precaution generally would not receive a tax benefit.
• If a home improvement increases the value of the property, only the portion of the cost that exceeds the increase in the home's value generally qualifies as a medical expense deduction.

For example, if an accessibility improvement costs $20,000 but increases the home's value by $8,000, generally only the remaining $12,000 may qualify as a medical expense deduction, assuming the other IRS requirements are met.

For more information and specific rules, see IRS Publication 502. Consider speaking with a trusted tax professional if you're unsure whether a specific upgrade might be deductible on your return, as this information is provided for educational purposes.

If you're concerned about the costs of making a home upgrade, you may also want to check for programs or organizations in your state or community that may provide assistance for eligible aging-in-place improvements.

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Between the wildfires in Canada and those raging in Washington, it seems like wildfires are getting more common and widespread. If the news has you worried, there are two things to know.

First, your home may be at a higher risk of fire than you think – especially if you've never given much thought to fireproofing before. Secondly, most of the best practices for making your home more resilient to fire are simple, DIY-friendly projects you can knock out in a weekend.

While those in especially fire-prone zones might also need to look at bigger home upgrades like installing fire-rated siding and roof materials, every homeowner can immediately improve their home's fire safety by starting with these eight steps.

1. Review your insurance coverage now

Most standard home insurance policies will cover damage caused by fire, including smoke damage. However, some insurers might exclude coverage in high-risk zones, while others may have exclusions based on the cause or source of the fire, and others may exclude certain types of damage.

If any such exclusions exist in your policy, you want to know that before a fire breaks out so you can line up supplemental coverage or switch to a provider with more comprehensive fire coverage.

If you do find out your policy doesn't cover as much as you thought, you can use our tool below, powered by Bankrate, to compare quotes on home insurance that does provide all the coverage you need.

As for your car, fire damage would only be covered if you have comprehensive insurance included in your policy. This type of car insurance covers any damage that happens to your car while you're not driving it – fire, hail, falling trees and so on.

If you don't currently have comprehensive coverage, now might be a good time to shop around for quotes on policies that include it. You may be able to get a better rate on a better policy by switching car insurance.

2. Install mesh screens in vents and other openings

Wire mesh screens with holes no larger than 1/8 inch are the gold standard for fire safety, according to the National Interagency Fire Center. Mesh with holes this small can block embers from entering your home. You should mount these in any attic vents, eave vents or other openings where air can travel into the house.

One often overlooked place to install mesh screens is your HVAC vents. If you have a ducted system, those air ducts can end up allowing embers from one room to escape into other parts of the house.

By adding mesh screens to every vent in your home, you can prevent a fire that starts in, say, the kitchen from spreading to the bedrooms through the vents. This will buy your family more time to get out of the house safely and potentially limit the spread of the fire altogether.

If you have older, single-pane windows, consider adding mesh screens to these as well. These older windows are more prone to breaking from radiant heat during a fire. If they do, that creates a wide opening for embers and flames to get into your house.

Ultimately, the best thing you can do is replace those older windows with newer, double-pane designs. But that's not an easy, weekend DIY. In the meantime, screens are a cheaper, more DIY-friendly way to at least block embers from getting into the house if the glass breaks.

3. Close your fireplace flue when the chimney is not in use

Another easy-to-overlook entry point for embers and flames is your chimney. While it might seem convenient to keep the flue open year-round so you don't accidentally start a fire in the fireplace with it closed, it's not worth the risk.

If this is something you're liable to forget, consider creating recurring calendar events in your phone: One in spring reminding you to close the flue ahead of the warm season and one in late fall reminding you to open it back up again so you can use the fireplace.

4. "Firescape" your yard

A lot of traditional home landscaping practices pose a bigger fire hazard than you might think. Do you have wood mulch in the garden beds next to your house? That's like piling kindling right up to the sides of your home. Did you plant ornamental grasses or creeping juniper as a ground cover? Both of those are fuel for a spreading wildfire.

While you don't have to rip out every plant and pave your garden over with hardscape to stay safe, a few minor tweaks to your design can make a huge difference in your home's ability to survive a wildfire.

Here are some of the best practices, according to the National Interagency Fire Center:

• Don't use flammable mulch within five feet of your home or other structures. You can use gravel, hardscaping or other non-flammable alternatives in these zones.
• Any larger woodpiles or other flammable materials (like firewood or propane tanks) should be 30 feet away from structures.
• Choose fire-rated plants for your garden. No plant is "fireproof," but some are more resistant to burning than others – either because they're less likely to ignite in the first place or because they produce fewer embers to spread the fire if they do burn. You can search online for fire-resistant plants native to your region to find ideas that will grow well in your climate and lower your home's fire risk.
• Remove flammable structures that have fallen into disuse, like a rotting pergola or old shed.
• Aim for at least 10 feet of space between groups of shrubs. Long, continuous rows of vegetation can become highways for fire to spread.
• Prune tree branches to a height of 15 feet above the ground. This can prevent "ladder fuels" or material that allows a brush fire on the ground to "climb" up a tree and begin spreading through a canopy.

5. Clear debris from your roof and yard regularly

Dead leaves and branches on your roof or in your gutters are a huge fire hazard, so you don't want to let this debris build up. Clear out this debris from your roof and gutters regularly.

The same goes for debris on the ground. Rake leaves and other plant debris away from your home and either pile it at the back of your yard to compost or rake it into your lawn and go over it with a mulching lawn mower so it breaks down faster.

6. Seal gaps and cracks where flames could get in

You may know about weatherstripping and sealants to insulate your home in the winter. But these same practices are just as important in the summer when fire risk is higher. Any gaps and cracks around the home that let the warm air out can let flames in if a fire breaks out.

If you haven't inspected your home lately, walk around to check for gaps and cracks in your siding, along the eaves of your house, and near windows and doors. Then, add weatherstripping as needed to windows and doors.

Don't forget your garage door when you do this. It's easy to overlook, but this is another area where flames can get in.

7. Add a battery back-up to your garage door and sprinkler system

When fires break out, power outages are often soon to follow. If your car is in your garage when that happens, you might not be able to evacuate as quickly as you need to. If the door can't be opened manually – or even if it can, but it's finicky – adding a battery back-up ensures that you can still get out quickly in an emergency.

The same is true for a sprinkler system. If you have an irrigation system in your yard, turning this on as soon as you learn of a fire in your neighborhood can help dampen any flammable plants in your yard and slow the spread of flames. So you want to know you can have those sprinklers running even if the power goes out.

8. Move small flammable objects at least five feet away from your home

Wood mulch isn't the only fire hazard you might unknowingly have next to your home. Wood planters, patio furniture, grills and other common patio or deck items can end up putting your home at risk in a fire. When you're not using them, make sure they're stored at least five feet away from the house.

For larger planters, try to design your setup so that they're further from your home. If that's not possible, make sure they can be moved further away temporarily during high fire weather.

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The Dow Jones Industrial Average and the S&P 500 gapped up to new all-time highs at the opening bell on Wednesday, lifted by relative quiet in the Middle East and solid data from the earnings calendar. Heavy exposure to hot AI-related names weighed on the Nasdaq Composite, as markets remain concerned about Big Tech's spending plans.

By the closing bell, the blue-chip Dow Jones Industrial Average had added 0.5% to 54,349, another new record closing high. But the broad-based S&P 500 was off 0.2% to 7,723 and the tech-heavy Nasdaq Composite was down 0.8% to 26,363.

All three remain near their respective peaks despite "no shortage of crosscurrents" to navigate, as LPL Financial Chief Technical Strategist Adam Turnquist observes. Turnquist cites the war in the Middle East and higher oil prices, as well as rising interest rates and shifting expectations about how the Federal Reserve will respond to inflation under Fed Chair Kevin Warsh.

The front-month West Texas Intermediate crude oil futures contract was down 0.9% to $75.10 per barrel amid another pause in hostilities around the Strait of Hormuz. The 2-year Treasury yield ticked lower to 4.179% from 4.194% on Tuesday, while the 10-year was at 4.615% vs 4.627% and the 30-year dipped to 5.171% from 5.189%.

Markets are also looking forward to the release of the July jobs report before the opening bell on Friday, the main event on this week's economic calendar.

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Turnquist notes that semiconductor stocks traded down more than 20%, meeting the technical definition of a bear market while investors, traders and speculators "demanded evidence that rising capital expenditures were translating into meaningful returns" for the AI trade.

"Despite these challenges," he says, "the S&P 500 has remained remarkably resilient," with capital rotating out of communication services stocks, for example, and into healthcare stocks. As Turnquist concludes, "Fundamental conditions have also remained constructive, supported by an economy that continues to grow and corporate earnings."

Indeed: Amgen (AMGN, +4.6%) was the best-performing Dow Jones stocks on Wednesday after management of the biotechnology giant reported expectations-beating second-quarter results and raised full-year guidance.

SpaceX had a lot of gravity

SpaceX (SPCX, -13.6%), on the other hand, cratered in response to its first earnings report as a publicly traded company. Management beat expectations, but not by enough after the biggest IPO in stock market history.

Management said it will expand Starlink Mobile into a full-fledged wireless carrier to compete with telecoms such as AT&T (T, -1.3%), T-Mobile USA (TMUS, -2.1%) and Verizon Communications (VZ, -0.9%).

But Elon Musk downplayed talk of selling China-based electric vehicle operations so Tesla (TSLA, -1.8%) can merge with SpaceX and combine their AI operations.

Meanwhile, Advanced Micro Devices (AMD, -7.0%) sold off hard on word from SpaceX that it will work only with Nvidia (NVDA, +3.4%) to supply the chips and related infrastructure it requires to achieve its extraterrestrial ambitions.

Walt Disney tells another good story

Walt Disney (DIS, +3.7%) beat Wall Street expectations for its fiscal third-quarter bottom line, reporting earnings of $2.05 per share vs a forecast of $1.86. Top-line growth of 6.8% to $25.2 billion fell just short of analysts' estimate of $25.4 billion.

But management reiterated its guidance for double-digit EPS growth for the current fiscal year, as well as for fiscal 2027, and a new leader remains optimistic about the company's near-term trajectory.

"Decades of IP investment have built deep fan connections that translateinto strong financial results," CEO Josh D'Amaro (PDF) said, citing accelerating global guests growth at its theme parks, the success of "Toy Story 5" at the box office and ESPN viewership gains. "Together, our results show a unique ability to engage consumers at scale, both digitally and physically, even amid macro uncertainty."

The consumer discretionary stock enjoyed a similar bounce in May following D'Amaro's first reported quarter as CEO; he replaced Bob Iger in March. But it was down more than 13% year to date through Tuesday while the S&P 500 was up almost 14%. Its trailing-12-month, five- and 10-year comparisons are similarly unfavorable.

In fact, despite the high quality of its intellectual property, DIS has been a buy-and-hold bust, as Kiplinger contributor Dan Burrows writes.

"While it's true that you can manipulate historical returns by fussing with their beginning and end points," Burrows explained earlier this year, "Disney's record vs the broader market over pretty much any standardized period you care to measure is terrible." For the past 20 years specifically, DIS' average annualized return has trailed the S&P 500 by more than 4 percentage points.

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The July jobs report came in much weaker than expected, lowering expectations that the Federal Reserve will raise interest rates at its September meeting.

According to the Bureau of Labor Statistics, the U.S. lost 23,000 jobs in July, missing economists' estimates for the addition of 85,000 new jobs.

Additionally, job growth for May was downwardly revised by 66,000, from +129,000 to +63,000, and June's figure was lowered by 37,000, from +57,000 to +20,000. This results in 103,000 fewer jobs than previously reported.

The unemployment rate, which is derived from a separate survey, edged down to 4.1% from 4.2% in June as the labor force participation rate fell to 61.4%.

Local government led job losses, shedding 50,000 positions, while retail trade, which includes warehouse clubs, gas stations and general merchandise retailers, lost 19,000 jobs.

Healthcare, on the other hand, added 22,000 new positions.

Odds of a rate hike at the September Fed meeting fell after the release of the July jobs report. According to CME Group FedWatch, futures traders are now pricing in a 44% chance the central bank will increase the federal funds rate next month, down from 55% one day ago.

ADP jobs report also came in lower than expected

Wall Street got a glimpse of how things are going in the labor market early Wednesday, with ADP's National Employment Report, which showed private payrolls rose by 44,000 in July — well below the 95,000 jobs added in June and the 75,000 economists expected.

"Job-changers are highly sensitive to real-time economic conditions, and their rapid pay growth implies supply constraints in parts of the labor market," says Dr. Nela Richardson, chief economist at ADP. "Typical hiring patterns, meanwhile, are changing as employers react to shifting macro-economic conditions."

With the July jobs report on the books, we looked at what economists, strategists and other experts on Wall Street have to say about the results and what they could mean for the Fed and investors going forward. You'll find these reactions, edited at times for brevity, below.

What Wall Street says about the July jobs report

"The July payroll release disappointed across the board reversing the trend of this year's positive labor market momentum. The combination of negative headline job creation and downward revisions stand in contrast to the lower unemployment rate, presenting conflicting signals for the Fed in regard to the overall health of the labor market. Today's release should be modestly positive for risk assets as yields come down and expectations for rate hikes are pushed out." - Jeff Schulze, Head of Economic and Market Strategy at ClearBridge Investments

"Headline payrolls were really disappointing, with 23,000 jobs lost in July. But the weakness was concentrated in local government, largely due to school-calendar seasonal effects, and leisure and hospitality as the World Cup boost rolled off. The bigger picture is that unemployment fell to 4.1%, its lowest in a year. Combined with low initial jobless claims, that suggests the labor market remains in solid shape despite the volatility in payrolls." - Sonu Varghese, Chief Market Strategist at Carson Group

"The weaker-than-expected jobs report likely doesn't change much for the Federal Reserve, as Chair Warsh is allowing the data to guide policy and the data as of now likely warrants keeping rates at current levels. Friday's negative jobs number raises the importance of next Wednesday's CPI for July, which may see an uptick, since oil prices spiked during the second half of July, given the re-escalation of tensions in Iran. This may very well be one of the more noisy CPI reports in recent memory." - Brent Wilsey, Chief Investment Officer at Wilsey Asset Management

"While the unemployment rate is falling, that is mostly for the wrong reason — not enough workers. Immigration compensated for the aging of the workforce in the first few years of the post-pandemic expansion, but that's not happening anymore. At the same time, the job market is doing a mediocre job of providing opportunities for new entrants. Unemployment among workers aged 20-24 without prior work experience, a good proxy for the Class of 2026, was 242,000, down slightly from 253,000 in July of 2025. The last two years have seen the highest unemployment for recent grads since 2016. In the broader context, the July jobs report shows that job growth was slow in the middle of 2026, but the job market is still tightening due to a shrinking labor force." - Bill Adams, Chief U.S. Economist at Fifth Third Commercial Bank

"The July jobs report is a game changer in the sense that all of the recent focus has been on inflation and this report highlights the risks that are embedded in the labor market as well. Before today, many were expecting that the Fed had no choice but to raise rates in order to fight stubbornly high inflation, because the job market was so strong, but this report shows that isn't the case. Next week's CPI release will be important — and if the data continues to come in higher than expected, it could raise the probability of a rate hike at the Fed’s next meeting — but today's jobs numbers should be enough to keep the Fed on hold for at least another meeting, which all things being equal is a positive for the stock market." - Chris Zaccarelli, Chief Investment Officer for Northlight Asset Management

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It was another record-setting session for stocks Tuesday as Wall Street cheered the latest round of earnings reports. A big bounce for chip stocks and hope on the geopolitical front also fueled the day's upside.

At the close, the blue-chip Dow Jones Industrial Average was up 1.7% at 54,085 and the broader S&P 500 was 1.8% higher at 7,736 — new record closes — while the tech-heavy Nasdaq Composite had gained 2.6% to 26,584.

"Optimism about an imminent reopening of the Strait of Hormuz, combined with upbeat corporate earnings, has stocks soaring to fresh records," explains José Torres, senior economist at Interactive Brokers.

Torres cites comments from Treasury Secretary Scott Bessent, who told CNBC that the U.S. and Iran could reach a deal to open the strait as soon as today.

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This sent front-month West Texas Intermediate crude futures down 5.7% to $75.77 per barrel, while yields on 2-year (-6.2 basis points to 4.194%), 10-year (-7.3 basis points to 4.612%) and 30-year (-5.9 basis points to 5.17%) Treasuries also declined.

Bessent's remarks drove "crude prices and interest rates south as market participants adjust their oil supply outlooks upward while reducing inflation expectations and Fed rate-hike probabilities, reflecting a greater likelihood of softening cost pressures from restored traffic through the passage," says Torres.

Palantir stock soars after "otherworldly" earnings

Earnings were also a hot topic on Tuesday, with several stocks soaring in the wake of their results.

Palantir Technologies (PLTR), for one, climbed 29.5% — easily making it the day's best S&P 500 stock — after the data analytics platform said second-quarter revenue surged 93% year over year to $1.94 billion, while earnings more than doubled to 41 cents per share.

"This quarter was otherworldly," said Palantir co-founder and CEO Alex Karp. "Demand for AI sovereignty has now been unleashed."

The company also gave higher-than-expected third-quarter guidance and raised its full-year forecast.

"We view the strengthening Palantir results as a reflection of a successful AI strategy that focuses on providing the right infrastructure to maximize its customers' results," says BofA Securities analyst Mariana Perez Mora. "PLTR's sovereign AI approach levers on decades of experience working on national security and highly regulated missions to create the right control layer."

The analyst has a Buy rating and $255 price target on PLTR, almost 60% above where the AI stock is trading.

The earnings calendar stays busy, too, with Advanced Micro Devices (AMD) set to report after tonight's close. The chipmaker joined its peers in a broad rally today, climbing 7.0%.

Bezos unloads $4.1 billion in Amazon shares

One blue chip stock that sat out the day's surge was Amazon (AMZN), which fell 2.3% on news that founder and former CEO Jeff Bezos is selling 15 million shares worth roughly $4.1 billion.

A Securities and Exchange Commission (SEC) filing disclosed the sale, originally scheduled on November 14, 2025, under a Rule 10b5-1 plan that prevents insider trading.

Bezos' timing is impeccable, though. Amazon shares jumped more than 15% last Friday on strong earnings and hit a record high on Monday. They're also up 20% for the year to date.

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New York City’s new tax on high-value second homes is moving from the policy stage to enforcement. But the first challenge involves determining which property owners actually owe it.

The pied-à-terre tax was approved as part of the state budget signed into law in May 2026 and applies to certain non-primary residences in NYC beginning the 2026-2027 property tax year.

But as the city begins implementing the new levy, some homeowners are questioning why they received notices indicating their properties might be subject to the tax.

In response to the confusion, the Department of Finance extended the deadline to apply for a pied-à-terre tax exemption until Sept. 18, 2026. The move is designed to give property owners more time to review their notices and provide documentation showing why the tax shouldn't apply.

"We are announcing the extension of the exemption application deadline to ensure that New Yorkers who received the ‘You may be subject to...’ letters have the time and information they need," New York City Mayor Zohran Mamdani said in a statement.

The administration has said the goal is to ensure that residents who shouldn't owe the tax have an opportunity to establish their exemption eligibility.

So, how does New York City’s pied-à-terre tax work, and who's actually affected?

NYC Pied-à-Terre Tax exemption deadline extended

NYC’s pied-à-terre tax is a surcharge on certain residential properties that are not used as an owner’s primary residence.

The measure is designed to raise revenue from high-value homes and apartments maintained as second residences, particularly those owned by people who live elsewhere.

Mamdani has described the tax, which is expected to generate about $500 million annually, as "an important new tool to help our city collect the revenue we need for safer streets, cleaner parks, and other critical investments across the five boroughs."

Some key points:

• The new law, which took effect July 1, 2026, applies during the 2026–27 (phase-one) and 2027–28 property tax years.
• The levy applies to certain non-primary residences. That includes one-, two- and three-family homes, condominiums and cooperative units, based on property type and market value.

• One-, two- and three-family homes are subject to the surcharge if the property has a market value of $5 million or more. Condominium and cooperative units are subject to the surcharge if the unit has a market value of $1 million or more.
• Properties used as a primary residence by the owner or an immediate family member are exempt. Properties leased for at least one year as a primary residence may also qualify for an exemption.

It's important to note that the surcharge is not part of a homeowner’s regular property tax bill. Instead, it creates an additional tax obligation for qualifying non-primary residences that meet the applicable value threshold and don't qualify for an exemption.

How much is the tax? The amount a homeowner could owe will depend on the property’s standardized fair market or assessed value and the applicable surcharge rules.

Class 1 (one-, two-, and three-family homes)

• $5 million to $15 million: 0.8%
• More than $15 million to $25 million: 1.05%
• More than $25 million: 1.3%

Condominiums and co-ops (FY 2026-27 and FY 2027-28)

• $1 million to $3 million (Phase One Market Value): 4.0%
• More than $3 million to $5 million (Phase One Market Value): 5.25%
• More than $5 million (Phase One Market Value): 6.5%

Which homeowners actually owe the tax

As the city began implementing the new levy, confusion has emerged over which properties might be subject to it.

• On July 24, the Department of Finance published a list of more than 900,000 properties, prompting some homeowners to question why their homes appeared on the list.
• The city later added a disclaimer clarifying that inclusion on that larger list didn't necessarily mean a property was subject to the pied-à-terre tax.

The city's Department of Finance has since reportedly sent notices to about 17,000 property owners who may be affected by the new surcharge. (That number was larger than the state’s earlier estimate of roughly 10,000 to 13,000 affected non-primary residences, which has raised questions about how many properties will ultimately qualify once exemptions are reviewed.)

Some homeowners are concerned about the notices they received.

For example, a Brooklyn homeowner told The Wall Street Journal that he received a notice indicating a potential $44,048 surcharge, despite stating that the property was his primary residence. The Gothamist reported on another New York resident who said she would owe close to $43,000 in tax without an exemption for a property she says has always been her primary address.

Legal Challenge Update: On August 7, 2026, a group of homeowners filed a lawsuit challenging the city’s rollout process. A Staten Island Supreme Court judge issued a temporary restraining order on August 10, pausing enforcement, but an appellate court stayed that order on August 13 following a city appeal. As a result, the city is moving forward with enforcement while litigation continues, but was required to take down the public online roll while the court evaluates its legality."

Those types of disputes highlight why implementation could prove difficult. The city is not only identifying valuable properties — it's trying to determine how those properties are actually used.

Under NYC law, the surcharge generally applies to qualifying properties that are not used as a primary residence. The Department of Finance determines primary residency based on legal factors, including whether the property is occupied for a majority of days during the calendar year by a covered owner.

But…in some cases, that determination may require more than a review of ownership records.

• A property deed may show who owns a home, but it doesn't necessarily establish how the property is used
• Properties held through trusts, limited liability companies, or other ownership structures may require additional review
• The city may request documentation related to residency, occupancy, ownership details, or other information relevant to an exemption

For homeowners who received notices, a key challenge could be showing their property doesn't meet the criteria for the surcharge.

What NYC homeowners need to know

Keep in mind: Receiving a notice does not automatically mean a homeowner owes NYC’s second-home tax. Instead, it means the property has been identified as potentially subject to the new rules, and the owner may need to submit information showing why an exemption applies.

City officials have said that homeowners who believe their properties shouldn't be taxed under the measure should complete the exemption application by Sept. 18, 2026.

Note: Despite the ongoing legal battle, the appellate stay means the September 18, 2026 exemption deadline remains active. The court has scheduled a hearing for August 31, 2026, where a judge will decide whether to grant a longer preliminary injunction.

The documentation required will depend on each homeowner’s circumstances. The Department of Finance has a webpage that includes frequently asked questions, an eligibility tool, and instructions for submitting documentation.

And since every homeowner's situation is different, you may want to consult a trusted tax professional who can help you determine whether your property qualifies for an exemption.

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To help you understand what's going on in business and the economy and what we expect to happen in the future, our highly experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts (Get a free issue of The Kiplinger Letter or subscribe). You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here’s the latest…

No one knows when the Iran war will end. But some of its effects can be predicted, such as the economic effects of disrupted shipping. Here are some impacts you can factor into your own business or investment planning.

Fuel prices will remain relatively elevated, whether the fighting ends soon or goes on. Global petroleum stockpiles are too depleted for gas and diesel to drop sharply whenever exports resume in large quantities from the Persian Gulf region.

Gas prices will range from near $4 to near $5 per gallon, the former if the war winds down soon, the latter if it continues in the coming months. Some analysts warn that stockpiles will hit key levels by Labor Day if the gulf stays largely closed to tankers, which would spike oil prices and push gasoline to $5. If exports resume, we’ll see some relief at the pump, with regular unleaded averaging above $3.50/gallon into the early autumn, still painful for most drivers.

Diesel is sure to stay much higher than gas due to the extensive damage to refineries in Russia, normally a top diesel exporter. Ukraine’s drone strikes on Russian refineries will be a lasting issue for diesel users, whatever happens in Iran.

Other commodities likely to remain costly because of Middle East disruptions:

• Aluminum: 10% of global output came from the Persian Gulf prior to the war. Now, there is a large and growing supply deficit. Users are paying a premium for metal for immediate use vs. in the futures market. Restoring Middle East output will be slow.
• Plastics, namely those used in packaging and electronics: The regional loss of polyethylene exports (10 million tons) is equal to the output of 18 global-scale plants.
• Fertilizers: The prices of which are down from April peaks but above prewar levels.
• Helium: needed for many electronics applications and medical imaging gear.

All of these are materials for which output and shipping are hard to restart. War-damaged plants take time to repair. And unlike oil, which can shift from tankers to pipelines in some cases, these commodities have no quick alternate shipping routes.

These cost pressures pose a dilemma for Federal Reserve policy choices. The Fed normally treats energy-driven inflation as temporary and chooses not to raise interest rates, reasoning that it can’t do anything to ease supply problems.

This time may be different. Inflation is already too high and getting embedded in consumer and business psychology, especially with gas prices in more of a plateau than a brief spike this year. The more people expect high prices to continue, the more their behavior tends to reinforce those expectations. The Fed may feel it has no choice but to try to break that self-stoking cycle by raising rates. If it stands pat, bond traders may bid up long-term bond yields for fear that the Fed isn’t trying to put out the fire.

This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.

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Stocks jumped out of the gate Monday after President Donald Trump on Sunday canceled planned attacks against Iran. Tumbling oil prices and Treasury yields also boosted sentiment at the start of the month, with one of the main benchmarks closing at a new record high.

In a Truth Social post, Trump said that the United States was "locked and loaded," but he decided to "cancel the attack" against Iran after "perimeters of a deal" had been agreed to.

Trump added that the agreement will include the "Immediate, Complete, and Total OPENING OF THE HORMUZ STRAIT, and an end to Iran's nuclear threat."

Front-month West Texas Intermediate crude futures plunged more than 6% to $79.49 per barrel in response, while yields on the 2-year (-4.1 basis points to 4.25%), 10-year (-5.7 basis points to 4.686%) and 30-year (-4.2 basis points to 5.233%) Treasuries tumbled.

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As for equities, the blue-chip Dow Jones Industrial Average soared 1.3% to 53,178 — a new record closing high — the broader S&P 500 rose 1.5% to 7,600, and the tech-heavy Nasdaq Composite climbed 2.1% to 25,913.

The stock market got "an early boost from falling oil," says Chris Larkin, managing director of Trading and Investing at E*TRADE from Morgan Stanley, "but the on-again, off-again nature of U.S-Iran diplomacy could mean earnings and jobs data will have to do the heavy lifting for the bulls this week."

SpaceX highlights busy earnings calendar

Corporate earnings have been impressive so far. "Despite mixed reactions to mega-cap Tech results, underlying fundamentals remain strong," write BofA Securities strategists Savita Subramanian and Victoria Roloff. "The earnings-per-share beat rate is at its highest level since 2021, with 77% of companies exceeding consensus expectations, well above the 66% post-week 3 average."

This week's earnings calendar is a busy one, too. SpaceX (SPCX, +5.7%) is arguably the most noteworthy name reporting, with Elon Musk's mega-cap space company making its first appearance on the earnings stage as a publicly traded company.

"Revenues, EBITDA [earnings before interest, taxes, depreciation and amortization], Starlink subs, ARPU, AI pricing, Cursor ARR [annual recurring revenue], fiscal year capex guide… all of these matter," says Morgan Stanley analyst Adam Jonas.

But the bigger issue for investors, says the analyst, is that SPCX stock is currently trading 50% below its all-time high and 15% below its initial public offering (IPO) price.

Wall Street will also be watching SpaceX on Thursday, when the first of the company's lock-up period expires. This is when insiders and early investors will be allowed to sell their shares, which could create volatility in the stock.

"SpaceX used an unusually complex scheme with nine main unlock points instead of one traditional 180-day expiry," explains Bernstein analyst Douglas Harned, Ph.D. "The design staggers insider selling over roughly the first six months post-IPO, with longer lockups for some institutions and for Elon Musk personally into mid-2027."

And while Harned admits that this week's lock-up expiry creates an overhang for the tech stock, he believes "the company's messaging in its Q2 report will be important," particularly updates on "the path to full reusable Starship launches."

Boeing gets double upgraded

Boeing (BA) released its second-quarter results last week and shares rose nearly 5% in reaction to a top-line beat and positive free cash flow.

The Dow Jones stock is up again to start this week, gaining 8.0% on Monday, after the Federal Aviation Administration (FAA) cleared the aircraft manufacturer's 737 Max 7 for passenger flights after years of delays.

The blue chip stock got another boost after BNP Paribas analyst Matthew Akers double-upgraded BA to Buy from Sell. He also raised his price target to $300 from $230, representing implied upside of 28% to current levels.

"The post-COVID era of uncertainty for (Boeing) is over," says Akers. "In the next year, MAX and 777X certifications will drive inventory liquidation and operational stability."

The analyst believes this will lift free cash flow to $7 billion by 2027, roughly $1 billion more than Wall Street expects.

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Stocks were volatile Friday as market participants weighed mixed reactions to a pair of Big Tech earnings reports and surging Treasury yields. The main equity indexes finished the session higher, though, and snapped their weekly losing streaks.

At the close, the Dow Jones Industrial Average was up 0.5% at 52,485, the broader S&P 500 was 0.7% higher at 7,489, and the tech-heavy Nasdaq Composite had gained 1.0% to 25,373.

But stocks' gains were contained as borrowing costs continued to climb. The 2-year Treasury yield jumped 4.1 basis points to 4.27%, while yields on the 10-year Treasury (+4.9 basis points to 4.712%) and 30-year bond (+4.6 basis points to 5.253%) hit their highest levels since 2007.

Today's rise in Treasury yields came after Cleveland Federal Reserve President Beth Hammack, who voted for a quarter-point rate hike at the July Fed meeting, said in a statement that "now is the time" for the central bank to act to bring inflation down. "The longer that high inflation persists, the more challenging and costly it can be to bring it back down."

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Minneapolis Fed President Neel Kashkari, who also dissented in this week's Fed decision to hold interest rates steady in favor of a quarter-percentage-point hike, issued his own statement, saying that he'd prefer to raise rates now than to allow high inflation to become entrenched.

"The fixed-income complex is moving further away from the central bank's current midpoint of 3.63% as bond vigilantes protest [Fed] Chair Kevin Warsh's overly patient posture and dial up inflation expectations, amid a monetary policy institution that isn't following through on its hawkish rhetoric at this juncture," explains José Torres, senior economist at Interactive Brokers.

Amazon, Apple chart different paths after earnings

In single-stock news, Wall Street was once again tuned into earnings from a pair of Magnificent 7 stocks. Amazon (AMZN) emerged as a clear winner on Friday, surging 15.3% after the e-commerce and cloud giant reported a second-quarter beat on strong revenue growth in its cloud segment.

Amazon also gave soft third-quarter revenue guidance due to Prime Day occurring in June this year, and lifted its full-year capital expenditures budget to $220 billion from $200 billion on higher costs for memory chips.

Bill Birmingham, managing director at REX Financial, REX Shares' parent company, says Amazon's quarter was "exceptional," with evidence that the company's custom silicon and artificial intelligence (AI) commercialization are gaining traction noteworthy.

And while it's worth keeping an eye on the lighter revenue guidance and higher spending levels, Birmingham said the print "provides real evidence that AI capex is being monetized."

Apple (AAPL), on the other hand, slumped 7.4%, as weak current-quarter revenue guidance overshadowed higher-than-expected fiscal third-quarter earnings and revenue.

"We paid more per memory in the March quarter than the December quarter," said Tim Cook on the earnings call, his last as CEO of Apple. "And then as I alluded to last quarter, we expected to pay significantly more in the June quarter than the March quarter, and that is what happened. It was partially offset by the benefit of carry-in inventory."

Cook added that the company expects to pay even more for memory costs in its September quarter.

Argus Research analyst Jim Kelleher reiterated his Buy rating and $375 price target on Apple after earnings, representing implied upside of more than 20% to current levels.

"As we see it, Apple's perpetually refreshed roster of highly desirable products provides a unique advantage over industry rivals," says Kelleher. And dips should be bought on this high-quality stock to "establish or dollar-average into positions in AAPL," he adds.

Roblox has its worst day ever after earnings

While Apple was the worst Dow Jones stock today, Roblox (RBLX) was one of the worst stocks period. Shares plunged 26.9% — their biggest one-day decline ever — after the video-game company reported a second-quarter bookings miss and forecast lower-than-expected third-quarter bookings.

Roblox also said it expects Q3 revenue to come in well below what Wall Street is expecting and did not offer a full-year forecast.

This doesn't seem to worry Oppenheimer analyst Martin Yang, who maintained an Outperform (Buy) rating on the communication services stock. "Retention remains stable and content is diversifying," he says, though cautioning that it's still uncertain as to when monetization will catch up to retention.

Yang isn't the only one holding out hope for RBLX. Of the 34 analysts covering Roblox who are tracked by S&P Global Market Intelligence, 19 say it's a Buy, 13 have it at Hold and two rate it a Sell. This works out to a consensus Buy recommendation.

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If you're looking for a back-to-school gift for a grandkid heading off to college, your best bet might actually be a Costco membership. The popular wholesale club reported that nearly half of its new signups were from Millennials and Gen Z adults in a recent earnings call.

Costco has become a bit of a trend in recent years, with teens and young adults showing off their bulk buy hauls on TikTok or hopping onto fashion trends like the viral Espirit sweatshirt that sold out almost immediately at Costco.

After Costco outranked Walmart as the cheapest grocery store this year, it's no surprise younger generations are now getting on board with the wholesale club. This makes it the ideal gift for someone heading off to college or recently graduated. It's both trendy and practical, giving your grandkid or child a way to take advantage of bulk pricing and gas discounts at a time when every penny saved really counts.

Why younger generations love Costco

The idea of a grocery store becoming trendy might seem odd to you, no matter how much you might understand how much there is to love about it. But the fact that #costcohaul videos are regularly getting over 150,000 views is a sign of the inflation-addled times.

The Costco trend comes as rising grocery prices have more and more young adults struggling to keep up with the cost of living. As a result, more than 60% of working adults have resorted to using credit cards or Buy Now, Pay Later plans to pay for groceries in the past year, according to an Urban Institute survey.

To avoid going into debt to put food on the table, Millennials and Gen Z adults are looking for as many ways as possible to stretch their grocery budget further. If you're already a Costco member, you know how much the warehouse club can help with that.

But it's not just the grocery prices drawing in younger customers. The ultra-cheap food court prices are a hit as well. The famous $1.50 hot dog combo is a timeless hit that regularly makes its rounds on TikTok. The food court's significantly lower prices make it a great way for a college student with limited time or space to cook to grab a quick bite for lunch or feed an entire study group without breaking the bank.

Give your grandkid a Costco membership and a $50 shop card with this deal

To sweeten the back-to-school gift even more, Stack Social is offering a limited-time deal that includes a $50 shop card with the purchase of a Costco Gold Star membership.

All you have to pay is the cost of a one-year membership, and the shop card is free. So your grandkid or child can get a free membership and a little money to spend on their first visit.

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Stocks jumped out of the gate Thursday and stayed higher through the close as well-received earnings from Microsoft (MSFT) overshadowed a disappointing reaction to Meta Platforms' (META) quarterly results. Market participants also kept an eye on a busy economic calendar and surging long-term Treasury yields, though these did little to shift today's price action.

At the close, the blue-chip Dow Jones Industrial Average was up 1.2% at 52,208, the broader S&P 500 was 1.7% higher at 7,437, and the tech-heavy Nasdaq Composite had surged 2.8% to 25,122.

And in the bond market, long-term yields continued to climb, with the 10-year Treasury yield closing up 5.5 basis points at 4.677% and the 30-year yield jumping 7.8 basis points to 5.221%, both near their highest levels since 2007.

This comes as rising bond yields sank stocks on Wednesday in reaction to the Federal Reserve's split decision to keep interest rates steady, even as inflation sits well above the central bank's 2% target.

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"The reluctance to lift generated short-term credibility damage, driving a dramatic steepening across the Treasury curve as bond vigilantes stood up and said, 'wait a minute,' resulting in purchases at the shorter tenors alongside selling at the long end," explains José Torres, senior economist at Interactive Brokers.

June PCE eases on falling energy prices, GDP slows

Markets received another inflation update today with the release of June's Personal Consumption Expenditures Price Index (PCE). According to the Bureau of Economic Analysis (BEA), headline inflation was down 0.1% month over month and up 3.7% year over year.

This was much better than May's monthly and annual increases of 0.4% and 4.1%, respectively, and came as energy prices tumbled roughly 20% in June. Core PCE, which excludes volatile food and energy costs, also eased in June, rising 0.1% month over month and 3.3% year over year.

In a separate release, the BEA said that second-quarter gross domestic product (GDP) was 1.5% higher in Q2 — slower than Q1's 2.1% increase. The headline number isn't as worrying as it seems, though, as surging imports were the main drag on economic growth in the second quarter. The data also showed that consumer spending and investments were strong.

"Despite moderating inflation, strong domestic activity across consumption and business investment will keep the Fed diligent about the risks overheating could have on the inflation trajectory," says Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management. "We continue to expect the Fed to be patient as it awaits more inflation data."

Microsoft gains $500 billion in value after earnings

In addition to a busy day of economic reports, Wall Street had a lengthy earnings calendar to sift through. Microsoft's earnings were among the most noteworthy.

The tech giant jumped 15.5%, its biggest one-day gain since 2008. It also added $450 billion in market value — the most ever for a company in one day, beating out Nvidia (NVDA, +2.7%), which gained $440 billion in market cap on April 9, 2025, according to The Wall Street Journal.

For its fiscal fourth quarter, Microsoft reported higher-than-expected earnings and revenue, with its results boosted by a 43% year-over-year revenue growth in its Azure cloud segment.

And while MSFT said it expects fiscal 2027 capital expenditures to be up year over year, Chief Financial Officer Amy Hood also said she believes the company will remain free cash flow positive.

"Microsoft reported a very strong quarter and it struck the tone markets are looking to hear as the key drivers of growth came from the cloud and AI divisions," says Brian Mulberry, chief market strategist at Zacks Investment Management. And the blue chip stock's reaction indicates "that investors are finally excited about Microsoft again."

Meta stock posts its longest losing streak on record

Fellow Magnificent 7 stock Meta Platforms, on the other hand, slumped 8.0% after its results. META has now fallen for 11 days straight, its longest losing streak on record. Shares are down 20.9% over that time.

While the Facebook parent reported a second-quarter revenue beat, it fell short on the bottom line and gave lower-than-expected third-quarter revenue guidance.

And, as Meta ramps up spending on artificial intelligence initiatives, the company also said its free cash flow plunged 91% year over year to $784 million and it raised the low end of its full-year capital expenditures outlook.

"The report's defining narrative is the aggressive cost absorption required to stay at the leading edge of generative AI," says David Wagner, head of equity and portfolio manager at Aptus Capital Advisors. "It's just not the greatest story to increase the bottom end of your capex, basically increasing the midpoint, and not showing much positive guidance on revenue expectations."

Big Tech earnings will continue after Thursday's close, with Amazon (AMZN, +3.9%) and Apple (AAPL, -1.4%) set to report.

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Oil prices surged and the stock market's "fear gauge" spiked as the war between the U.S. and Iran escalated again on Wednesday. Violence in the Middle East continues to impede traffic through the Strait of Hormuz, while even exponential growth for AI-related companies is letting down investors, traders and speculators.

"We'll be hitting them hard," President Donald Trump told Fox News after Iran struck a U.S. base in Jordan. "They're going to get a beating." The front-month West Texas Intermediate crude oil futures contract was up 7.2% at $84.94 per barrel.

The Cboe Volatility Index (VIX) rose from 18.21 on Tuesday to as high as 20.34 on Wednesday, breaching its "normal" range of 12 to 20 and settling at 20.05.

The July Fed meeting ended where investors, traders and speculators thought it would: with interest rates unchanged for the fifth straight time but central bankers worried about inflation and the energy shock.

The target range for the federal funds rate remains 3.50% to 3.75%. But three voting members of the Federal Open Market Committee (FOMC) dissented from the decision because they favored raising it by 25 basis points.

"Economic activity is expanding at a solid pace," reads a repeated sentence in a subtly updated but still brief FOMC policy statement, "despite elevated uncertainty that owes, in part, to the conflict in the Middle East."

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As Fed Chair Kevin Warsh said during his press conference, "We'll be watching inflation data over the period ahead," but he also said the central bank wouldn't rely exclusively on any one piece of it.

Acknowledging a steep rise in market-based rates over the last 42 days, the Fed chair noted shocks the economy seems to be absorbing relatively well so far.

By the closing bell, the tech-heavy Nasdaq Composite had shed 1.7% to 24,442, the broad-based S&P 500 was down 1.5% to 7,316, and the blue-chip Dow Jones Industrial Average had declined 2.2% to 51,594.

SKHY leads chip stocks lower again

The earnings calendar is the market's main focus following an overnight preview from South Korea-based SK Hynix (SKHY, -2.6%). The Nvidia (NVDA, -3.6%) supplier reported 257% top-line growth, as well as a 557% rise for operating profit and a 1,242% earnings increase.

But SK Hynix stock was down 9.6% on its local exchange because it failed to meet high expectations, and trading was halted on South Korea's KOSPI Index to stem a broader sell-off. The KOSPI closed lower by 6%.

Losses were similar for Nvidia and other semiconductor stocks such as Advanced Micro Devices (AMD, -5.5%), Broadcom (AVGO, -2.8%) and ASML (ASML, -2.0%), with Micron Technology (MU, -9.9%) suffering like fellow memory stock SKHY.

Up now are Meta Platforms (META, -1.3%) and Microsoft (MSFT, -0.7%), with Apple (AAPL, -0.6%) and Amazon (AMZN, -1.8%) to follow on Thursday.

CAT dogged by data center debate

Caterpillar (CAT, -6.9%) was the worst-performing Dow Jones stock on Wednesday after Baird analyst Mircea Dobre cut his rating on the heavy equipment maker from Buy to Hold and reduced his 12-month target price from $1,200 to $900.

Dobre cited rising regulatory opposition to AI data centers due to environmental strains and power grid pressures.

"The ground is shifting in many ways; the recent New York State moratorium on data center construction is the highest-profile example of a bigger (and growing) trend towards regulatory action at state and local level targeting data centers," the analyst observes. "This raises costs, adds new development approval hurdles, limits site availability, and likely slows future investment."

Caterpillar is scheduled to report second-quarter results before the opening bell next Tuesday, August 4. Wall Street expects to see earnings of $6.20 per share (+31.4% year over year) on revenue of $19.17 billion (+15.7% YoY).

CAT hit new all-time intraday and closing highs on June 30. The industrial stock is down 20.9% since then, shedding more than $100 billion in market cap.

What the 2-year Treasury yield says about a rate hike

According to LPL Financial Chief Technical Strategist Adam Turnquist, markets have adjusted to a "higher-for-longer" environment, with the 2-year Treasury yield up about 90 basis points from its February 27 low of 3.375% and outside the target range for the federal funds rate since April.

Turnquist describes eight periods since the 1980s during which the 2-year yield was above that range while policy was on hold, defined as at least three months without a change in the fed funds rate, along with a "crossover period" of at least 20 consecutive trading days.

"As of July 28, 2-year yields have remained above the fed funds target rate for 68 trading days," Turnquist notes, "with the spread reaching a maximum of 0.60% so far."

The median maximum spread for the comparison period was 0.97%. And Turnquist concedes the limited nature of the historical data set means it can't be used to either confirm or rule out a rate hike.

Still, he concludes, "The comparison suggests the current crossover is less mature than the three completed historical signals that ultimately preceded tighter monetary policy."

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Even after paying off a mortgage, rising property taxes can be a significant financial challenge, especially for retirees living on fixed incomes.

Recent data show that property tax bills nationwide average $4,427 annually per single-family home, a more than 3% jump from the previous year.

But…several states are currently considering changes to their property tax systems. As a result, this November, many voters will decide whether to freeze taxable home values, expand homestead exemptions, or cap annual assessment spikes — changes that could provide relief to many homeowners struggling with affordability.

So, if you're an older adult homeowner, or someone helping an aging loved one manage housing costs, here are some key property tax changes to watch this year.

Louisiana property tax exemption for seniors

Voters in Louisiana will decide in November whether to expand property tax relief for some older homeowners through a proposed constitutional amendment created by House Bill 514 (Act 274).

• The measure would allow parishes and municipalities to provide an additional property tax exemption for qualifying homeowners age 65 or older.
• Eligible taxpayers must own and occupy a homestead and qualify for Louisiana’s existing special assessment level program.

How it could affect older homeowners: The proposal wouldn’t eliminate property taxes for older adults statewide. Instead, the measure would give local governments the option to offer this additional benefit.

• If a parish or municipality adopts the exemption, qualifying homeowners age 65 and older could receive an additional reduction in their taxable home value.
• That could, in turn, potentially lower their property tax bills.

Supporters say the tax measure would help older adults stay in their homes as property values rise. It could also provide relief to retirees whose incomes may not keep pace with housing costs.

Note: Louisiana already provides a special assessment level program that protects certain qualifying seniors from increases in the assessed value of their homes. But advocates see the proposed exemption as an additional layer of protection.

Opponents’ concerns focus primarily on the effect on revenue. Property taxes help fund schools and local services, and expanding exemptions could mean less money for local government priorities.

If approved by voters on the November 3, 2026 Louisiana ballot and adopted by local governments, the exemption would apply to tax years beginning January 1, 2028.

Oklahoma property tax cap & senior protection tiering

Oklahoma voters will decide this fall whether to approve State Question 847, a constitutional amendment to slow property valuation growth statewide while restructuring tax protections for older adult homeowners.

For homeowners overall, the measure would reduce the annual cap on homestead property valuation growth from 3% to 1.75% and non-homestead real property from 5% to 4%.

How it could affect older adult homeowners: Unlike general property tax caps, State Question 847 would modify Oklahoma's existing Senior Valuation Limitation (senior freeze) program for homeowners age 65 and older:

• Seniors with low-to-moderate income: Retirees earning at or below their county's HUD median income would retain a 0% freeze on taxable property value increases.
• Seniors with higher income: Currently, seniors earning over the median income receive no valuation protection. Under the proposed measure, senior property valuation increases would be capped between 0.35% and 1.75%, scaled according to household income brackets.

Supporters argue that replacing the "all-or-nothing" income threshold with a sliding scale ensures that older adults with middle incomes on fixed pensions aren't suddenly exposed to full market-value spikes, while keeping baseline caps predictable for all Oklahomans.

Opponents argue that altering senior freeze structures creates uncertainty for local school districts and municipal services that rely heavily on property tax revenues to fund local infrastructure and career centers.

State Question 847 will appear on the November 3, 2026 ballot. If approved, the new valuation caps and senior income tiers would take effect for tax year 2027.

Florida homestead exemption: Amendment 3

Florida voters will decide in November whether to approve a constitutional amendment that would significantly increase the state’s homestead exemption.

The measure, known as Amendment 3, would raise the exemption from $50,000 to $150,000 in 2027 and then to $250,000 in 2028 for qualifying homesteaded properties. The increased exemption wouldn’t apply to school district taxes.

Those who qualify for the homestead exemption would have a larger portion of their home’s value excluded from tax, potentially lowering their property tax bills.

How it could impact older adult homeowners: Unlike the Louisiana proposal, Florida’s measure isn’t limited to those 65 and older. It would apply broadly to homeowners who qualify for Florida’s homestead exemption.

However, the measure could have a significant impact on older homeowners in part because of the state’s large retiree population. The savings could be particularly helpful for Florida retirees with fixed incomes, who are increasingly facing rising insurance, housing, and living expenses.

• Supporters argue that Florida homeowners need relief after years of rising property values and higher housing costs. They say expanding the homestead exemption would allow residents to keep more of their income and make it easier for some of them to remain in their communities.
• Critics argue that the proposal could reduce funding for vital public services or force local governments to find other revenue sources.
• Legal Challenge to Watch: The measure is currently facing legal challenges in state court over its ballot language. Opponents contend the title and summary written by lawmakers are overly promotional rather than objective. While the court challenges don't contest the proposed tax cuts, a new ruling could potentially force revisions to how the measure appears on the November ballot.

Update: On August 5, 2026, a Leon County Circuit Court judge ruled that the ballot wording for the proposed Florida property tax amendment is misleading. The court found it uses promotional language, e.g., describing the measure as "constitutional protections for Florida homeowners," instead of neutrally describing what the measure would do.

As a result, the Florida Attorney General's Office has until August 14 to rewrite the ballot title and summary in more objective terms.

It's important to note that this ruling doesn't remove the amendment from the November ballot. Instead, it requires voters to receive more neutral ballot language before casting their votes.

Amendment 3 would need at least 60% voter approval to pass. If approved, it would represent one of the largest expansions of Florida’s homestead exemption.

Ways to lower a property tax bill

While voters in these and some other states decide on tax changes this November, homeowners across the country don't necessarily have to wait for election day to potentially lower their property tax bills.

Check whether your state, county or local government offers property tax exemptions, freezes or deferral programs for older homeowners.

Keep in mind that eligibility rules vary, and some programs require homeowners to apply each year.

It also could be worth reviewing your property assessment.

If your home’s assessed value appears too high compared with similar properties in your area, you may be able to appeal the assessment and potentially lower your taxable value.

For more information, see our report: How to Lower Your Property Tax.

This article has been updated to include a new ruling on the Florida property tax amendment.

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Google has updated its cloud storage policy for Android device backups. For existing users, the change will take effect 45 days after they receive Google's notification email. Android device backups will count toward the 15 GB of free storage included with every Google Account. The company is also rolling out more detailed backup controls for devices running Android 9 and newer.

For many users, the impact may be small because photos, videos and other media files already count toward the same 15 GB storage limit. However, adding device backups could push some accounts closer to — or over — that cap.

If your account exceeds the free storage limit, your Android device will stop automatically updating its backups until you free up space or upgrade your storage. Checking how much storage you currently use can help you avoid interruptions once the policy takes effect.

Who will notice the biggest impact?

Users who are already close to Google's 15 GB free storage limit are likely to notice the biggest impact. If their account exceeds the storage limit, automatic backups will be paused.

People with years of Gmail, Google Photos and Drive files might also exceed the Google Storage cap when their device backup data counts toward the limit.

People who use multiple Android devices, such as a phone and tablet, may also see their storage fill more quickly. Every device under the same account syncs to the same storage space, so adding in backup data for multiple devices might push the account past the storage limit.

How to check your available Google storage

Google has started emailing Android users with details about the policy change, including how much Google storage they've already used and an estimate of how much space their device backup may require. You can also check your storage usage at any time.

To see how much storage you have available, sign in to your Google One account. Your dashboard shows how much of your 15 GB of free storage you've used and breaks down what's consuming that space.

Gmail, Google Drive and Google Photos all count toward your storage limit. Reviewing the breakdown can help you identify opportunities to free up space before the new backup policy takes effect.

What happens if you run out of storage?

If the new backup policy pushes your account over the storage limit, some Google services may stop working until you free up space or upgrade your storage plan.

Your Android device's automatic backups may be paused, Gmail may stop receiving new emails, Google Drive uploads could fail and Google Photos may stop syncing new photos and videos.

Five ways to avoid paying for more storage

While you can pay to increase your Google storage, there are workarounds that can help keep your storage functioning without you having to pay:

• Delete unnecessary files from Google Drive: Large Google Drive files can quickly eat into your storage capacity. Go through your Google Drive account and delete any unnecessary files. Deleted files are stored in your Trash folder for 30 days, so be sure to go to the Trash folder and permanently delete the files to free up the storage.
• Remove large email attachments: Large Gmail attachments can take up extra storage. The Google One Storage Manager allows you to identify and delete the largest email attachments.
• Clean up Google Photos: Go through your Google Photos and delete any photos you no longer need. The deleted images will sit in your Trash folder, so be sure to delete them from the Trash folder to free up storage.
• Review what your phone backs up: Use the Google One app or your Android phone's backup settings to review what's backed up. If certain apps take up a lot of storage, you can toggle those apps off so they aren't backed up.
• Delete old device backups you no longer need: You can use the Google One app to delete old device backups that you no longer need to free up more space.

When paying for Google One makes sense

While there are several ways to free up storage and avoid paying for additional space, upgrading to a Google One plan may be worthwhile in some situations.

Google One offers four paid storage tiers ranging from 100 GB to 2 TB. Plans cost $1.99 to $9.99 per month, and you can save about 16% by paying annually instead of monthly.

A paid plan may make sense for households with multiple Android devices sharing the same Google Account or for people who rely heavily on Google Photos and regularly store large files in Google Drive.

It can also be worthwhile if you'd rather not constantly manage your files to stay under the free 15 GB storage limit. Some Google One plans include additional perks, such as access to the Gemini app and Google Flow AI, making an upgrade worthwhile for users who want those premium features.

Preparing for the Google Storage changes

Google has started emailing Android users about the upcoming storage policy change. Once you receive the email, you'll have 45 days before the new policy takes effect for your account, giving you time to review your storage usage, free up space if needed and prepare your device.

Taking the time to review your storage usage now can help ensure a smooth transition and uninterrupted use of your device once the storage policy change takes effect.

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Stocks were choppy early on Tuesday, but falling oil prices and a round of well-received corporate earnings helped the Dow Jones Industrial Average and S&P 500 climb higher into the close. The Nasdaq Composite, however, couldn't sidestep an extended slump in chip stocks.

At the close, the tech-heavy Nasdaq Composite was 0.2% lower at 24,876, pressured by weakness in semiconductor stocks. The iShares Semiconductor ETF (SOXX), which counts Advanced Micro Devices (AMD, -8.2%) and Micron Technology (MU, -8.9%) among its biggest holdings, fell 4.8% and is now down 23% for the month to date.

The continued sell-off is being "driven by concerns about capital return prospects, valuations, circular financing dynamics and Chinese competition," says José Torres, senior economist at Interactive Brokers.

But the broader S&P 500 (+0.2% at 7,428) and the Dow Jones Industrial Average (+1.0% to 52,747) advanced thanks in part to falling oil prices. Front-month West Texas Intermediate crude futures fell 4% to settle at $79.26 per barrel.

Strong earnings for several blue chip stocks also helped buoy the benchmarks. Coca-Cola (KO), for one, jumped 5.0% after the soft drink maker beat second-quarter estimates and raised its full-year guidance.

The company credited the FIFA World Cup as one catalyst behind its strong results, seeing Trademark Coca-Cola volume growth of 5% in Q2, its best volume growth since the COVID-19 pandemic.

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Boeing (BA) was another post-earnings winner, rising 4.8% as the aerospace giant's Q2 revenue came in higher than expected, which offset a wider-than-anticipated per-share loss.

Sherwin-Williams has its best day since 2022 after earnings

Sherwin-Williams (SHW) emerged as the best Dow Jones stock today, surging 8.3% — its best day since April 26, 2022 — after the paint maker reported stronger-than-anticipated second-quarter results.

"Sales improvement was driven by continued growth investments, new account wins and increased share of wallet," said Sherwin-Williams CEO Heidi Petz. "We also implemented pricing actions to offset raw material inflation that pressured our gross margin in the quarter."

In mid-June, Argus Research analyst Alexandra Yates said SHW is "uniquely positioned to benefit from significantly higher demand trends and margin expansion in the long term, this due to its dominant market position." Yates added that she views the materials stock as a "core long-term holding."

Corning suffers its biggest one-day drop in six years

Not all earnings reports were well received. Corning (GLW) plunged 12.1%, its biggest one-day drop since March 16, 2020, after the Gorilla Glass maker's disappointing third-quarter revenue forecast overshadowed a second-quarter beat.

Susquehanna analyst Mehdi Hosseini says the softer-than-expected revenue guidance is due primarily to "weakness outside Optical Communications, particularly within the Solar segment."

And he maintained a Positive (Buy) rating on the tech stock, saying it "remains well positioned to benefit from growing AI cluster sizes and increasing and width requirements, while also enabling alternative manufacturing approaches for fiber array units (FAUs), which we believe are among the most critical components in the commercialization of optical CPO (transceiver) architectures."

These transceiver architectures have a variety of use cases, including in data centers, AI chip connections and high-performance computing.

Buckle up

There are plenty more events this week that could spark market volatility. On the economic front, Wall Street is waiting for tomorrow afternoon's policy announcement from the Federal Reserve.

While it's unlikely the central bank will raise the federal funds rate this time around, rate hike odds have been rising. According to CME Group FedWatch, futures traders are now pricing in a 32% chance the Fed will increase rates tomorrow, up from 26% one week ago.

We're reporting live on the July Fed meeting. Follow along with Kiplinger for all the news and updates.

And on the earnings calendar, Wednesday's after-the-close announcements from Meta Platforms (META, -0.08%) and Microsoft (MSFT, +1.1%) will likely draw a crowd. Apple (AAPL, +0.9%) and Amazon (AMZN, -0.2%) will report on Thursday.

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Crude oil prices sank and interest rates were lower Monday on renewed hope for peace in the Middle East. But semiconductor stocks sold off as markets continue to wonder when escalating hyperscaler capex budgets will generate returns on investment.

The front-month West Texas Intermediate crude oil futures contract was down 8.1% to $82.04 per barrel. The 2-year Treasury yield declined by nine basis points to 4.322%.

Both are still much higher than they were before the war between the U.S. and Iran started on February 28. But the immediate reaction to the suspension of attacks in the U.S.-Iran war "implies further equity upside when the conflict is fully over," according to Louis Navellier of Navellier & Associates.

"The Fed decision on making a change in the fed funds rate will be the big event of the week," Navellier observes about the economic calendar.

The July Fed meeting starts tomorrow and ends Wednesday. Price action in the fed funds futures market shows a 64% probability the central bank keeps its primary benchmark where it is this week. But, according to CME FedWatch, odds of a rate hike in September are now up to 55.5%.

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It's also a big week for the earnings calendar, as Navellier notes: "By the end of the week, more than a third of S&P companies will have reported."

At the closing bell, the Dow Jones Industrial Average was up 0.5% to 52,209, and the broad-based S&P 500 had inched up 0.02% to 7,413 But the tech-heavy Nasdaq Composite was down 0.2% to 24,932.

AAPL > NVDA

Nvidia (NVDA, -5.0%) was the worst-performing Dow Jones stock during a rough session for chipmakers. The iShares Semiconductor ETF (SOXX, -2.1%) reflected broadening concern about the sustainability of the AI revolution as its leader makes new and bigger deals.

Bloomberg reported that Nvidia is discussing one deal worth as much as $250 billion to help its customer OpenAI lease computing power from a U.S. data center and another to finance $350 billion of OpenAI's chip purchases for the project.

On Friday, Nvidia announced a $500 billion deal with South Korea-based chipmaker SK Hynix (SKHY, -7.5%) that illustrates what skeptics describe as "circular" AI deals supporting the infrastructure build-out.

Apple (AAPL, +1.2%), meanwhile, overtook NVDA to become the biggest company in the world in terms of market cap. The iPhone maker will carry a year-to-date return of about 23% into its fiscal third-quarter earnings announcement after the closing bell on Thursday.

Meanwhile, amid rising anxiety about their capex plans, Meta Platforms (META, -0.2%) and Microsoft (MSFT, +1.9%) will report after the closing bell on Wednesday. Amazon (AMZN, -0.3%) joins AAPL in the spotlight on Thursday.

As Navellier writes, these four Magnificent 7 stocks account for 17% of the weight of the S&P 500 "and will be very telling of the continued confidence in the AI theme." Nvidia will report fiscal 2027 second-quarter earnings on Wednesday, August 26.

QBTS + T

D-Wave Quantum (QBTS, +8.9%) is one of the best ways to invest in quantum computing right now because it's making deals with classic blue-chip companies such as AT&T (T, +1.2%).

On Monday, D-Wave Quantum announced the expansion of a partnership teased in January when AT&T executives appeared at the Qubits 2026 conference. The telecommunications giant will now use D-Wave's tech across its network operations, most notably outage detection and traffic management.

"AT&T's initial focus is on layering D-Wave's annealing quantum computing technology into the tools that are already powering AT&T's agentic AI solutions," D-Wave said in its press release.

Mizuho Securities analyst Vijay Rakesh reiterated his Outperform (Buy) rating and raised his 12-month target price for QBTS from $29 to $35 following management's first "analyst day" event in June, citing its leadership in annealing QC.

Rakesh says D-Wave's updated financial model shows long-term gross margins for quantum computing as a service (QCaaS) at 65% to 75%, professional services at 40% to 50% and computing systems at 75% to 90%.

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