NEWS
Earnings Mixed Ahead Of Fed Tricks

Another day, another decline in the S&P 500 and Nasdaq 100 driven by weakness in the semiconductor space. While the market awaits mega-cap tech earnings and the Fed’s latest decision, the Russell 2000 and Dow Jones Industrial Average remain decently big. Let’s see what you missed. 👀

Today's issue covers Microsoft and AMD’s earnings moves, Pinterest popping, and restaurant’s “consumer worries” being overlooked. 📰

Here's today's heat map:

7 of 11 sectors closed green. Energy (+1.55%) led, & technology (-2.51%) lagged. 💚

U.S. job openings inched lower to 8.02 million during June, with separations remaining little changed. The ratio of job openings to available workers is at 1.20, its lowest since June 2021 and just below pre-pandemic levels. 💼

Home prices hit a new record high in May, with the S&P Case-Shiller index rising 6.80% YoY, even as interest rates remained high and the labor market cooled. Meanwhile, the Conference Board consumer confidence index remained stuck in the narrow range it’s been in for about two years. 🏘️

Internationally, Germany’s economy unexpectedly contracted during the second quarter (-0.10%), even as the broader Eurozone expanded (+0.30%). 🔻

Domestic crude oil prices fell below $75 for the first time since early June as uncertainty about the global economy outweighed fears of potential supply constraints from continued conflict in the Middle East. 🛢️

Software company QXO Inc. cratered from a valuation of more than $90 billion last week to $40 million today after the firm unlocked millions of shares for sale via private placements registered yesterday after the bell. 📉

CrowdStrike shares fell another 10% today on reports that Delta Airlines has hired a high-profile lawyer to seek damages from the company’s historic IT outage. Delta had the toughest time recovering from the situation and is handling over 176,000 reimbursement requests after canceling ~7,000 flights. ❌

JetBlue jumped 12% after it announced a surprise profit for the second straight quarter. It also outlined its “Jet Forward” strategy, which is intended to save $800 to $900 million in costs through 2027. Meanwhile, budget-friendly Spirit Airlines is hopping on the “premium upgrades” bandwagon, adding snacks, Wi-Fi, and other amenities to its new ticket classes. ✈️

Here are the closing prices: 

EARNINGS
Microsoft Slips While AMD Rips

Big tech results set the market’s tone, with Microsoft and AMD in the spotlight today. Let’s quickly recap the results and investors’ reactions. 👇

Microsoft’s adjusted earnings per share of $2.95 on revenues of $64.73 billion topped expectations of $2.93 and $64.39 billion.

Despite the top-line beat, the finer details and guidance threw investors for a loop. Revenue from Azure and other cloud services grew just 29% compared to estimates of 31% (its first miss since 2022). The company’s total first-quarter revenue guidance also missed expectations. 👎

On a positive note, the PC market has started to solidify, but analysts are focused primarily on AI because it’s seen as the growth driver with the best chance of scaling (and fast).

Microsoft shares were down about 4% after the bell and about 13% off their all-time highs. That said, Stocktwits sentiment is bullish, suggesting retail investors are looking to buy the dip. 🛒

Meanwhile, AMD is rocking and rolling after saying that data center sales more than doubled YoY (+115%).

Adjusted earnings per share of $0.69 on revenues of $5.84 billion topped expectations of $0.68 and $5.72 billion. CEO Lisa Su said the company saw “higher than expected” sales of its AI chips and that revenue from its MI300 chips exceeded $1 billion. 🤩

AMD’s core business is making central processors (CPUs)) for laptops and servers, but like its competitors, AI chip sales in its data center segment have become the core growth driver as it chases Nvidia and other competitors.

Shares rose 8% after the bell, though Stocktwits sentiment is stuck in a neutral range as investors digest the news. With AMD shares lagging its peers, bulls hope these results and outlook can help reignite the stock’s momentum. 🐂