Tech Ruling, Q2 Earnings Help Boost Hump Day Market

Market Overview - Major indexes experienced mixed results, with the Dow closing down -24 points (-0.05%) after a drop of -250 points intra-day, while the S&P 500 rose +32 points (+0.51%) and the Nasdaq gained +218 points (+1.02%) [1] - The Russell 2000 index slipped -2 points (-0.095%) [1] Alphabet and Big Tech - A recent court ruling favored Alphabet, allowing its relationship with Apple to continue, which may have prevented a potential breakup of its conglomerate and provided relief to the broader Big Tech sector [2] Salesforce Performance - Salesforce.com reported Q2 earnings of $2.91 per share, exceeding the Zacks consensus of $2.77 and the previous year's $2.56, with revenues of $10.24 billion surpassing expectations of $10.13 billion [3] - However, guidance for Q3 earnings and full fiscal year was considered lackluster, leading to a -4% decline in after-market trading, compounding a -23.6% loss year-to-date [4] American Eagle Performance - American Eagle posted earnings of 45 cents per share, significantly above the Zacks consensus of 20 cents, with revenues of $1.28 billion exceeding the anticipated $1.23 billion, driven by a successful advertising campaign [5] - The company's shares increased by +23% in late trading, marking a positive year-to-date performance [5] Labor Market and Economic Indicators - The Job Openings and Labor Turnover Survey (JOLTS) for July reported 7.2 million job openings, below the expected 7.4 million, indicating a tightening labor market [6] - Factory Orders for July were reported at -1.3%, an improvement from the previous month's -4.8% [7] - The Beige Book indicated rising costs due to tariffs and utilities, reflecting modest growth across regions [7] Upcoming Economic Reports - Anticipation for tomorrow's market includes the ADP report on private-sector payrolls for August, expected to decrease to 75K from 104K in July, along with other economic indicators [8] - Earnings reports from Broadcom, lululemon, and Docusign are expected, with Broadcom anticipated to report strong profits from AI-related sales, while lululemon and Docusign expect negative year-over-year earnings growth [9]