August 29, 2025
S&P futures –0.3% Friday after U.S. equities rose Thursday, with the S&P closing above 6,500 for the first time. Strength came from semis, software, networking, banks, credit cards, brokers, travel & leisure, and energy. Asia traded mixed (Greater China higher, Japan weaker), while Europe is down ~0.7%. Treasuries weaker with curve steepening (long yields +2–3 bp). Dollar +0.1%, gold –0.2%, Bitcoin –2%, WTI crude –0.7%.
Focus remains on earnings disappointments (DELL, MRVL, GAP), tariff headwinds (CAT flagged bigger cost hit, FY25 margin guide cut), and expectations that more Section 232 tariffs are coming. Press reports highlight firms increasingly passing costs to consumers. Fed Governor Waller struck a dovish tone (“Let’s Get On with It”), supporting a September cut but downplaying the case for >25 bp. Macro attention now turns to today’s core PCE inflation (+0.3% m/m, +2.9% y/y expected) and next week’s data-heavy slate (ISM, JOLTS, Beige Book, ADP, ISM Services, and NFP).
Earnings highlights:
- CAT: Tariffs pressured FY25 margin outlook.
- DELL: AI server demand strong, but margin pressure weighed on stock.
- MRVL: Missed Data Center, guided softer.
- ADSK: Beat/raise on revenue, billings, RPO; margin outlook strong.
- ESTC: Beat/raise with cloud and public sector strength.
- AMBA: Beat/raise; IoT/edge AI demand key driver.
- ULTA: Beat, raised FY guide on broad category improvement.
- GAP: Beat with stronger comps at Gap/Banana Republic, but Athleta weak and FY25 EPS lowered on tariffs.
- WOOF: Beat, turnaround traction noted.
- AFRM: Big beat on GMV, RLTC; FY26 guide better than feared despite Klarna/Walmart worries
U.S. equities finished higher Thursday (Dow +0.16%, S&P 500 +0.32%, Nasdaq +0.53%, Russell 2000 +0.19%), with the S&P 500 closing above 6,500 for the first time. Gains were led by semis, software, and networking, while defensive groups like food and pharma lagged. Treasuries were mixed with curve flattening, long-end yields down 3–4 bp; the 7Y auction tailed slightly. Dollar index fell 0.4%. Gold rose 0.8%, Bitcoin was flat, and WTI crude gained 0.7%.
Economic data was mixed: Q2 GDP was revised up to 3.3% SAAR (vs 3.0% prior) on better consumption and lower imports. Jobless claims printed at 229K, broadly in line, with continuing claims dipping to 1.954M. July pending-home sales declined unexpectedly, highlighting affordability constraints. On policy, Fed Governor Cook filed a lawsuit challenging Trump’s attempt to remove her, reinforcing the debate around Fed independence. The market is still pricing an 87% chance of a September cut and ~55 bp of easing this year. Tariffs remained in the spotlight with the EU offering to scrap duties on U.S. industrial goods, while USTR extended China tariff exclusions through November.
Sector Highlights
- Outperformers: Communication Services (+0.94%), Technology (+0.66%), Energy (+0.68%).
- Laggards: Utilities (–0.87%), Consumer Staples (–0.47%), Healthcare (–0.42%), Real Estate (–0.26%). Industrials (+0.17%), Financials (+0.18%), and Consumer Discretionary (+0.28%) saw modest gains.
Information Technology
- NVDA (–0.8%): Beat and raised, but Data Center revenue light; Blackwell ramp +17% q/q and networking +46% sequentially a bright spot. Talks ongoing with the White House over China chip sales.
- CRWD: Beat/raised, but softer implied 2H guide.
- SNOW (+20.3%): Strong beat with core warehouse business driving Product revenue upside.
- VEEV (–7.2%): Beat and raised but billings/deferred revenue light; guidance ahead, valuation flagged as overhang.
- HPQ: Beat with PC share gains supporting performance.
- NTAP: Beat, but noted softer U.S. public sector and product revenue deceleration.
- NTNX (–5.1%): Q4 beat, Q1 guidance light, but FY26 outlook improved.
- PSTG (+32.3%): Beat/raise on product strength and META partnership momentum.
Consumer Discretionary
- DG: Beat/raise with traffic and ticket improvement.
- DKS: Better results but GM in line; focus on upcoming FL merger.
- BURL (+5.3%): Beat with better margins, Q3 off to strong start.
- FIVE (+3.9%): Beat with strong comps, upbeat BTS commentary.
- URBN (–10.7%): Beat, but guided for heavier tariff headwinds in 2H.
- NKE: Announced 1% corporate staff cuts.
- BBY (–3.7%): Beat but concerns flagged around tariff exposure.
Consumer Staples
- HRL (–13.1%): Missed on EPS as commodity input costs surged; guided Q4 EPS below Street.
Healthcare
- COO (–12.9%): Weak quarter in CVI and CSI segments; FY25 guide cut.
Financials
- INTC: Locked into foundry unit under U.S. stake agreement.
- IBKR: Boosted by upcoming S&P 500 inclusion.
Industrials
- BA: To sell 103 planes to Korean Air for $36.2B.
Communication Services
- TMUS: Reported interest in SATS spectrum not purchased by T.
- NBCUniversal / AMZN: Announced Peacock will join Prime Video Channels.
Other Notables
- Walgreens: Named retail veteran Mike Motz CEO following privatization.
- Phillips 66: To wind down Los Angeles refinery.
- TransUnion: Reported data breach affecting 4.4M customers.
Eco Data Releases | Friday August 29th, 2025
S&P 500 Constituent Earnings Announcements | Friday August 29th, 2025
No constituents report today
Data sourced from FactSet Research Systems Inc.
