Nvidia’s stronger sales outlook lifted U.S. equity futures and technology stocks, reinforcing expectations that the artificial intelligence rally can continue.
6:10 PMBloomberg Markets32 stories from 10 sources
AI earnings drove markets while consumer and legal risks mounted
Day’s Recap
Supporting Articles
Meta reached a settlement with California and other states in a federal case alleging that it misrepresented the mental-health harms its platforms pose to children. The agreement could cost the company as much as $16.7 billion.
5:17 PMCNBCWall Street analysts and investors viewed Meta Platforms' settlement of a child privacy case as favorable for the company.
4:15 PMCNBCSalesforce shares rose 14% after the company reported stronger profit, helped in part by gains on its investment in Anthropic. The results also pointed to growth tied to its AI business.
9:53 AMCNBC
US corporate profit margins reached a record 19.4% in the second quarter, up from 18.2%, as profits rose nearly 10%. Strong consumer spending, higher prices, and an 8.5% annualized increase in nonresidential fixed investment supported the gains.
2:18 PMEconomic Times
Nvidia is helping finance the expansion of the AI infrastructure ecosystem through arrangements that resemble vendor financing, effectively extending its balance sheet to support customers' purchases of its technology.
1:00 AMFinancial Times
KKR agreed to pay $250 million to settle a US Justice Department lawsuit over buyout-related filings. The private equity firm said it strongly disagrees with the government’s claims and maintains that it acted in good faith.
10:06 PMFinancial TimesDick's Sporting Goods shares fell 30.7% in one session, joining a wave of sharp stock moves across footwear and sporting-goods companies. Some long-term investors see the selloff and resulting new lows as a potential buying opportunity.
4:47 PMWWDOura, the maker of health and fitness tracking smart rings, is seeking to raise as much as $3 billion in a US initial public offering, with some existing backers also looking to sell shares.
4:31 PMBloomberg Markets6:10 PMBloomberg Markets
Tech Stocks Rally as Nvidia Fuels Bets on AI Trade: Markets Wrap
Summary
Nvidia’s stronger sales outlook lifted U.S. equity futures and technology stocks, reinforcing expectations that the artificial intelligence rally can continue.
Nvidia remains the market’s key test of whether AI spending can justify elevated technology valuations,
Unlock the full First Pass Analysis to get a better understanding of why this story mattersWhy it matters
Nvidia’s outlook is again setting the direction for both AI stocks and broader U.S. equity markets.
2 stories · 2 sources
5:17 PMCNBC
Meta settles social media addiction case with California, other states for $16.7 billion
Summary
Meta reached a settlement with California and other states in a federal case alleging that it misrepresented the mental-health harms its platforms pose to children. The agreement could cost the company as much as $16.7 billion.
The settlement converts allegations over child safety into a substantial financial and legal obligation for
Unlock the full First Pass Analysis to get a better understanding of why this story mattersWhy it matters
Meta now faces a potentially expensive precedent for the social and health consequences of its platforms.
5 stories · 5 sources
4:15 PMCNBC
What investors should do with Meta now that the child privacy case has settled
Summary
Wall Street analysts and investors viewed Meta Platforms' settlement of a child privacy case as favorable for the company.
The settlement removes a legal overhang and reduces uncertainty around a potentially larger financial or
Unlock the full First Pass Analysis to get a better understanding of why this story mattersWhy it matters
Meta gains greater visibility on one risk, though the settlement does not end scrutiny of its treatment of minors.
9:53 AMCNBC
Salesforce stock jumps 18% on AI growth and Anthropic investment gain
Summary
Salesforce shares rose 14% after the company reported stronger profit, helped in part by gains on its investment in Anthropic. The results also pointed to growth tied to its AI business.
The market is rewarding Salesforce for showing financial returns from AI while benefiting from the
Unlock the full First Pass Analysis to get a better understanding of why this story mattersWhy it matters
Salesforce’s rally shows how quickly investor expectations can reset when AI growth and portfolio gains appear together.
2 stories · 2 sources
2:18 PMEconomic Times
US corporate profit margins widen to highest on record
Summary
US corporate profit margins reached a record 19.4% in the second quarter, up from 18.2%, as profits rose nearly 10%. Strong consumer spending, higher prices, and an 8.5% annualized increase in nonresidential fixed investment supported the gains.
Record margins show that companies are still passing higher costs through to customers while maintaining
Unlock the full First Pass Analysis to get a better understanding of why this story mattersWhy it matters
Widening margins support markets and business investment, but they may prolong price pressure for consumers and complicate the path to lower inflation.
1:00 AMFinancial Times
Nvidia’s $200bn ‘balance sheet-as-a-service’
Summary
Nvidia is helping finance the expansion of the AI infrastructure ecosystem through arrangements that resemble vendor financing, effectively extending its balance sheet to support customers' purchases of its technology.
The strategy can accelerate demand for Nvidia systems and help customers overcome the upfront cost
Unlock the full First Pass Analysis to get a better understanding of why this story mattersWhy it matters
Nvidia's financing role could amplify growth while increasing questions about customer credit quality, concentration, and the sustainability of AI infrastructure spending.
10:06 PMFinancial Times
KKR to pay record $250mn to settle DoJ lawsuit
Summary
KKR agreed to pay $250 million to settle a US Justice Department lawsuit over buyout-related filings. The private equity firm said it strongly disagrees with the government’s claims and maintains that it acted in good faith.
The settlement puts an unusually large price on alleged failures in private equity’s regulatory reporting
Unlock the full First Pass Analysis to get a better understanding of why this story mattersWhy it matters
Private equity firms face greater regulatory and financial risk when structuring and reporting acquisitions.
4:47 PMWWD
Dick’s Joins Barrage of Footwear Companies Grappling With Dramatic Stock Reactions
Summary
Dick's Sporting Goods shares fell 30.7% in one session, joining a wave of sharp stock moves across footwear and sporting-goods companies. Some long-term investors see the selloff and resulting new lows as a potential buying opportunity.
The collapse resets expectations for Dick's and reflects how quickly investors are repricing companies facing
Unlock the full First Pass Analysis to get a better understanding of why this story mattersWhy it matters
The stock's plunge shows that even established retailers can face abrupt valuation resets when footwear demand and profit expectations weaken.
2 stories · 2 sources
4:31 PMBloomberg Markets
Oura Is Said to Seek Up to $3B in IPO
Summary
Oura, the maker of health and fitness tracking smart rings, is seeking to raise as much as $3 billion in a US initial public offering, with some existing backers also looking to sell shares.
A potential $3 billion offering would mark a major test of investor appetite for consumer
Unlock the full First Pass Analysis to get a better understanding of why this story mattersWhy it matters
Oura could become a bellwether for whether investors will fund premium wearable health businesses at technology-company valuations.
Other Developments
A curated list of other prominent stories from this day.
Nvidia, Salesforce, CrowdStrike, Urban Outfitters and other companies posted the largest price moves in after-hours trading.
5:31 PMCNBC
HP expects fourth-quarter profit to exceed Wall Street estimates, helped by higher prices for premium and AI-enabled PCs and anticipated US tariff refunds. It also raised its full-year adjusted earnings forecast, although rising memory costs remain a constraint.
4:23 PMEconomic TimesLas Vegas Sands has long depended more on its Macau and broader Asia business than on its namesake Las Vegas market, and technical analyst Mike Khouw sees room for the shares to accelerate.
2:17 PMCNBCTWG Global, the empire controlled by Los Angeles Dodgers owner Mark Walter, is defending itself against what it calls attacks as it faces a federal probe. The scrutiny intensified after Walter said he would sell his majority stake in the Los Angeles Lakers.
1:15 PMCNBCTrade groups representing fiber, metal, and glass packaging manufacturers expect a U.S.-Canada trade conflict to raise costs. The increases could spread through supply chains in both countries.
12:48 PMPackaging DiveMeta, Abercrombie & Fitch, Zoom, Intuit, and other companies posted some of the largest stock moves in midday trading. The report tracks the session's leading gainers and decliners.
12:15 PMCNBC
Kohl's reported a 0.9% decline in both net and comparable sales for the quarter. The drop marked the department store chain's 18th consecutive quarter of revenue declines as shoppers faced household budget pressures.
12:10 PMPYMNTSMorgan Stanley says investors are undervaluing SpaceX's broader growth prospects, including its proposed $100 billion spaceport in Louisiana. The assessment suggests the plan could materially expand the company's long-term commercial and launch capacity.
11:33 AMCNBCRetail growth is increasingly appearing in small towns rather than only in major metropolitan areas. The shift is creating new opportunities for local merchants and the businesses that supply them.
11:00 AMWWDThe retailer’s shares fell after Jefferies downgraded the company, but the downgrade is being challenged by investors who see its response to weak sales as underappreciated. The case for buying the dip rests on expected benefits from those corrective measures.
10:48 AMCNBC
Cost-conscious customers are abandoning TurboTax over its pricing, sending Intuit shares lower in early Wednesday trading.
10:29 AMMarketWatch
HomeServices is adding mortgage servicing through Prosperity, which originates nearly $9 billion in loans each year. Prosperity has historically sold servicing rights after closing rather than managing those loans itself.
9:00 AMHousing WireNike shares are on track for their weakest annual performance since Michael Jordan retired from professional basketball in 1993. The comparison underscores how dependent the company became on Jordan’s brand and how difficult its current transition has been.
8:48 AMBloomberg Markets
Moderna shares closed at $158.83 after rising 14.36% in the session, following an upgrade from Wolfe.
1:37 AMEconomic Times5:31 PMCNBC
Stocks making the biggest moves after hours: Nvidia, Salesforce, CrowdStrike, Urban Outfitters and more
Summary
Nvidia, Salesforce, CrowdStrike, Urban Outfitters and other companies posted the largest price moves in after-hours trading.
The after-hours action shows investors repricing individual companies immediately after new disclosures, with the listed
Unlock the full First Pass Analysis to get a better understanding of why this story mattersWhy it matters
After-hours moves can reset expectations and carry directly into the next trading session.
4:23 PMEconomic Times
HP forecasts strong fourth-quarter profit on price hikes, US tariff refunds
Summary
HP expects fourth-quarter profit to exceed Wall Street estimates, helped by higher prices for premium and AI-enabled PCs and anticipated US tariff refunds. It also raised its full-year adjusted earnings forecast, although rising memory costs remain a constraint.
HP is using pricing power and favorable tariff treatment to offset cost pressure while demand
Unlock the full First Pass Analysis to get a better understanding of why this story mattersWhy it matters
HP’s outlook shows that AI PC demand is beginning to influence hardware pricing and profitability, not just product marketing.
2:17 PMCNBC
Las Vegas Sands shares are about to 'catch a heater,' says Mike Khouw
Summary
Las Vegas Sands has long depended more on its Macau and broader Asia business than on its namesake Las Vegas market, and technical analyst Mike Khouw sees room for the shares to accelerate.
The investment case remains tied primarily to a recovery in Macau and other Asian gaming
Unlock the full First Pass Analysis to get a better understanding of why this story mattersWhy it matters
Las Vegas Sands offers investors an Asia recovery trade disguised as a US-listed casino stock.
1:15 PMCNBC
Mark Walter's TWG Global says there's 'no fraud' amid probe of insurers' disclosures
Summary
TWG Global, the empire controlled by Los Angeles Dodgers owner Mark Walter, is defending itself against what it calls attacks as it faces a federal probe. The scrutiny intensified after Walter said he would sell his majority stake in the Los Angeles Lakers.
The probe creates legal and reputational risk across Walter’s investment empire, even as the company
Unlock the full First Pass Analysis to get a better understanding of why this story mattersWhy it matters
Federal scrutiny can affect the valuation, financing, and credibility of Walter’s expanding sports and investment holdings.
12:48 PMPackaging Dive
Packaging industry braces for impacts from U.S.-Canada trade war
Summary
Trade groups representing fiber, metal, and glass packaging manufacturers expect a U.S.-Canada trade conflict to raise costs. The increases could spread through supply chains in both countries.
Higher tariffs or other trade barriers would pressure packaging producers first, then pass costs to
Unlock the full First Pass Analysis to get a better understanding of why this story mattersWhy it matters
Packaging is an input across the economy, so trade friction could broaden into higher costs for many consumer and industrial goods.
12:15 PMCNBC
Stocks making the biggest moves midday: Meta, Abercrombie & Fitch, Zoom, Intuit & more
Summary
Meta, Abercrombie & Fitch, Zoom, Intuit, and other companies posted some of the largest stock moves in midday trading. The report tracks the session's leading gainers and decliners.
The midday moves show where investors are repricing company-specific news and expectations during the session.
Unlock the full First Pass Analysis to get a better understanding of why this story mattersWhy it matters
Large intraday moves can quickly reset valuations and expose which companies face the most sensitive investor expectations.
12:10 PMPYMNTS
Kohl’s Sales Dip As Consumers Prioritize Essentials
Summary
Kohl's reported a 0.9% decline in both net and comparable sales for the quarter. The drop marked the department store chain's 18th consecutive quarter of revenue declines as shoppers faced household budget pressures.
Kohl's has not broken its prolonged sales decline because consumers continue to prioritize essentials over
Unlock the full First Pass Analysis to get a better understanding of why this story mattersWhy it matters
The results reinforce the strain on department stores as tighter household budgets reshape discretionary spending.
11:33 AMCNBC
SpaceX is 'attractively valued' after $100 billion Louisiana spaceport plan, Morgan Stanley says
Summary
Morgan Stanley says investors are undervaluing SpaceX's broader growth prospects, including its proposed $100 billion spaceport in Louisiana. The assessment suggests the plan could materially expand the company's long-term commercial and launch capacity.
The valuation case now rests on more than rocket launches and satellite services. If SpaceX
Unlock the full First Pass Analysis to get a better understanding of why this story mattersWhy it matters
A major new infrastructure buildout could increase SpaceX's strategic value while testing investors' tolerance for long-dated capital spending.
11:00 AMWWD
How Small-Town Retail Is Redefining Shopping in America
Summary
Retail growth is increasingly appearing in small towns rather than only in major metropolitan areas. The shift is creating new opportunities for local merchants and the businesses that supply them.
Small-town retail is challenging the assumption that US consumer growth depends on large urban centers
Unlock the full First Pass Analysis to get a better understanding of why this story mattersWhy it matters
Small towns are emerging as an overlooked source of retail growth and a test of how adaptable the industry has become.
10:48 AMCNBC
We're buying the dip — again — in a retailer not getting credit for addressing weak sales
Summary
The retailer’s shares fell after Jefferies downgraded the company, but the downgrade is being challenged by investors who see its response to weak sales as underappreciated. The case for buying the dip rests on expected benefits from those corrective measures.
The disagreement turns on whether recent sales weakness reflects a temporary problem or a deeper
Unlock the full First Pass Analysis to get a better understanding of why this story mattersWhy it matters
The trade captures a broader market divide between near-term retail weakness and confidence in management’s ability to repair it.
10:29 AMMarketWatch
Customers are fleeing TurboTax over price, and Intuit’s stock is sliding
Summary
Cost-conscious customers are abandoning TurboTax over its pricing, sending Intuit shares lower in early Wednesday trading.
The decisive shift is weaker customer willingness to pay for TurboTax, putting pressure on Intuit's
Unlock the full First Pass Analysis to get a better understanding of why this story mattersWhy it matters
TurboTax weakness threatens both Intuit's revenue growth and the pricing power that supports its valuation.
9:00 AMHousing Wire
HomeServices adds mortgage servicing through Prosperity
Summary
HomeServices is adding mortgage servicing through Prosperity, which originates nearly $9 billion in loans each year. Prosperity has historically sold servicing rights after closing rather than managing those loans itself.
The shift moves Prosperity beyond loan origination and gives HomeServices a larger role across the
Unlock the full First Pass Analysis to get a better understanding of why this story mattersWhy it matters
HomeServices is expanding from arranging mortgages into the steadier but more regulated business of managing them after closing.
8:48 AMBloomberg Markets
Nike on Pace for Worst Year Since Jordan’s 1993 Retirement
Summary
Nike shares are on track for their weakest annual performance since Michael Jordan retired from professional basketball in 1993. The comparison underscores how dependent the company became on Jordan’s brand and how difficult its current transition has been.
Nike faces a leadership and growth problem that extends beyond one disappointing product cycle. Investors
Unlock the full First Pass Analysis to get a better understanding of why this story mattersWhy it matters
Nike’s struggle signals the financial risk of relying on a single cultural icon to anchor a global consumer brand.
1:37 AMEconomic Times
Can Wolfe’s upgrade push Moderna stock higher?
Summary
Moderna shares closed at $158.83 after rising 14.36% in the session, following an upgrade from Wolfe.
The upgrade has provided Moderna with a sharp near-term boost, reversing some of the pressure
Unlock the full First Pass Analysis to get a better understanding of why this story mattersWhy it matters
The jump shows how strongly Moderna’s valuation responds to changes in analyst confidence.
Make it yours
Build Your First Pass.
Pick your topics, set your cadence, and receive your personalized First Pass in your inbox. It’s that simple!