S&P 500 Hits New High as Stocks Rise on Trade Deal Optimism; Investors Awaiting Alphabet, Tesla Earnings After the Closing Bell

Texas Instruments Stock Price Levels to Watch Amid Sell-Off

1 hr 1 min ago

Texas Instruments shares (TXN) tumbled Wednesday after the analog chip maker well known for its calculators issued a light current-quarter profit outlook.

The company, whose chips serve customers in most sectors across the economy, struck a more cautious tone than the previous quarter, telling analysts on the earnings call that the auto market remains subdued and the risks of new tariffs add demand uncertainty.

Prior to Wednesday’s decline, Texas Instruments shares had gained 15% since the start of the year, boosted by broad market optimism about chip demand and the company’s plans to expand its U.S-based chipmaking factories. The stock was down 13% at around $186 in afternoon trading.

After plumbing a low in early April, Texas Instruments shares trended sharply higher before running into overhead selling pressure earlier this month near last November’s peak. The price continued to retrace in recent weeks ahead of the company’s quarterly results in a move that coincided with the relative strength index retreating below its overbought threshold.

Investors should watch important support levels on the Texas Instruments chart around $190 and $172, while also monitoring key overhead areas near $206 and $220.

Read the full technical analysis piece here.

–Timothy Smith

What to Expect from Alphabet’s Earnings Report

1 hr 44 min ago

When Google parent Alphabet (GOOG) posts second-quarter earnings after the market closes today, investors will be watching its cloud and advertising revenue growth for signs of the tech giant’s competitiveness amid the AI boom.

Jefferies analysts said they expect Google’s cloud business to benefit from strong enterprise demand and AI momentum, while analysts at Wedbush recently cautioned that the Magnificent Seven member’s advertising revenue could face challenges from a shift to generative AI search.

Wall Street broadly expects Google Cloud revenue to have jumped 26% year-over-year to $13.14 billion, according to Visible Alpha, while the Street projects revenue from Google’s Search and Other division to have risen about 9% to $52.93 billion. Total revenue is expected to have increased 11% to $94.01 billion.

Of the 19 analysts covering Alphabet tracked by Visible Alpha, 15 have a “buy” or equivalent rating for the stock, alongside four “hold” ratings.

Shares of Alphabet were down slightly in recent trading. Options pricing data suggests traders expect Alphabet stock could see a sizable move by the end of the week.

Alphabet is joined by fellow Mag 7 company Tesla (TSLA) in reporting earnings Wednesday. Microsoft (MSFT) and Meta (META) are set to report next Wednesday, with Amazon (AMZN), and Apple (AAPL) expected to follow a day later. Nvidia (NVDA) isn’t slated to report until late August.

–Andrew Kessel

What to Expect from Tesla’s Earnings Report

2 hr 43 min ago

Tesla (TSLA) is slated to release its second-quarter earnings report after the market closes today, with analysts expecting the electric vehicle giant to report declining revenue and profits.

Tesla is projected to report a revenue decline of more than 10% drop to $22.74 billion, while adjusted earnings per share are expected to fall 20% to $0.42,  according to estimates compiled by Visible Alpha.

Analysts remain divided on Tesla’s stock, with nine of those tracked by Visible Alpha calling it a “buy,” with the other nine split between five “hold” and four “sell” ratings. Their average price target around $310 is below Tesla’s recent level of $330.

Wedbush analysts led by longtime Tesla bull Dan Ives suggested in a note to clients yesterday that Tesla’s vehicle sales could improve in the second half, following the Model Y refresh cycle.

The analysts said they expect Tesla could eventually own a “significant piece” of xAI, another of CEO Elon Musk’s companies, and suggested investors should be more focused on Tesla’s potential in self-driving software, robotics, and AI than its short-term sales results.

Tesla shares have lost nearly a fifth of their value since the start of this year. Options pricing suggests traders expect Tesla’s stock could make a sizable move by the end of this week in the wake of the results.

–Aaron McDade

GE Vernova Stock Surges to Record on Strong Earnings

3 hr 50 min ago

GE Vernova (GEV) shares soared Wednesday after the company reported better second-quarter results than analysts had expected.

The former General Electric division posted earnings per share of $1.86 on revenue that rose 11% year-over-year to $9.11 billion, above analysts’ estimates compiled by Visible Alpha.

Shares of GE Vernova were up 14% recently, trading at a record high. They entered the day up nearly 70% since the start of this year.

Looking ahead, the company said it expects full-year revenue to come in towards the higher end of the $36 billion to $37 billion range it laid out earlier this year, while also lifting its adjusted EBITDA margin and free cash flow estimates.

Last quarter, GE Vernova also topped estimates, though the company warned it expected tariffs and inflation to cause a $300 million to $400 million hit to its earnings this year, which it now says will likely be toward the lower end of $300 million.

A number of bullish analysts have said GE Vernova could be poised to benefit from growing demand for power. It’s been a little over a year since its April 2024 spin-off  from General Electric, completing the conglomerate’s shift into three separate public companies. GE Aerospace (GE) topped estimates and lifted its outlook last week.

–Aaron McDade

Meme Stocks Are Back—Should You Be Worried?

4 hr 28 min ago

Meme stocks are back in the spotlight.

Shares of apparel retailer Kohl’s (KSS) opened nearly 90% higher Tuesday and online home buying website Opendoor’s (OPEN) shares popped nearly 20% at the open. Neither shared any business updates, but both were major topics of conversation on r/wallstreetbets, the subreddit that fueled the meme stock craze of 2021. 

As in 2021, a short squeeze may have been the culprit for the Tuesday morning spike. Nearly 50% of Kohl’s shares were sold short at the end of June, according to data from FactSet. The stock’s rising price could have forced some short sellers to cover their position by buying the stock, adding to the demand driving up its price. 

Tuesday’s squeeze was relatively short-lived. Kohl’s stock pared its gains throughout the session’s first 30 minutes and ended the day 38% higher. Opendoor, which more than doubled in value last week and gained another 40% Monday, finished Tuesday’s session down 10%.

Come Wednesday morning, meme traders were hunting for new opportunities. Shares of Krispy Kreme (DNUT) and GoPro (GPRO) jumped 27% and 60%, respectively, in early trading, while Kohl’s and Opendoor slumped.

Flurries of speculative activity like that seen this week are sometimes interpreted as signs of market frothiness, and thus precursors to pullbacks. Though that’s not always the case, and even with stocks at record highs, investors have yet to pile into equities at alarming rates. Deutsche Bank’s measure of equity positioning only rose from “neutral” to “overweight” last week.

Read the full article here.

–Colin Laidley

Kohl’s Levels to Watch as Retailer Becomes Meme Play

5 hr 11 min ago

Kohl’s Corp. (KSS) shares tumbled this morning after soaring Tuesday in the absence of news on the retailer, moves reminiscent of the meme stock frenzy of 2021.

The shares likely received a boost yesterday from a short squeeze, given that nearly half of Kohl’s float is held by short sellers. Tuesday’s trading action echoed the meme-stock rally of four years ago, when Reddit users targeted heavily shorted retail stocks, including video game seller GameStop (GME) and movie theater chain AMC Entertainment (AMC).

Kohl’s shares jumped nearly 40% on Tuesday to their highest level since December. The stock was down 14% at $12.35 in recent trading.

After bottoming out in early April, Kohl’s shares trended steadily higher before Tuesday’s pop. It’s worth pointing out that trading volume yesterday was bout 25 times the stock’s 25-day moving average volume, indicating meme-driven trading activity.

While the stock rallied above the 50-week moving average this week, the  relative strength index remained below overbought levels, providing ample room for further speculative buying.

Investors should watch major overhead areas on Kohl’s chart around $29, $45 and $64, while also monitoring a key support level near $11.

Read the full technical analysis piece here.

–Timothy Smith

Texas Instruments Stock Slides on Soft Guidance

6 hr 16 min ago

Texas Instruments (TXN) shares dropped in early trading Wednesday as the company issued a soft profit forecast.

The analog chip maker said it expects third-quarter earnings of between $1.36 and $1.60 per share, below the consensus of analysts surveyed by Visible Alpha at the midpoint. Texas Instruments’ revenue outlook of $4.45 billion to $4.8 billion is roughly in line with Street estimates.

Texas Instruments shares were down more than 12% recently, bringing the stock back to near unchanged for 2025. Shares of rivals Analog Devices (ADI) and Microchip Technology (MCHP) also fell sharply this morning.

For the second quarter, Texas Instruments reported revenue of $4.45 billion, up 16% year-over-year and above the analyst consensus from Visible Alpha. Net income of $1.3 billion, or $1.41 per share, rose from $1.13 billion, or $1.22 per share, in the year-ago quarter, also topping estimates. 

The company’s semiconductors are used in a wide variety of electronic devices, including smartphones, vehicles, and satellites. Texas Instruments has said it counts Apple (AAPL), Ford (F), Nvidia (NVDA), SpaceX, and Medtronic (MDT) among those using its products. 

Last month, the company announced plans to invest over $60 billion in U.S. chip production, including on seven facilities in Texas and Utah. 

–Andrew Kessel

Futures Point to Higher Open for Major Indexes

7 hr 32 min ago

Futures tied to the Dow Jones Industrial Average were up 0.5%.

S&P 500 futures rose 0.4%.

Nasdaq 100 futures added 0.1%.