Stocks higher on Japan trade deal, sector opportunities for investors to consider

Market Trends & Trade Deals - Positive trade news with Japan is sending stocks higher, with the NASDAQ up approximately 0.67%, the Dow adding roughly 230 points, and the S&P 500 up around 0.3% [5] - President Trump states a trade deal with Japan has been reached, with a 15% tariff rate on imports to the US, boosting shares of automakers like Toyota [11] - Goldman Sachs economists estimate the US effective tariff rate is around 15%, significantly higher than at the start of the year [18] Company Performance & Earnings - AT&T anticipates saving up to $8 billion from this year to 2027 due to the newly signed bill [2][32] - Hilton issued below consensus guidance, partly due to reduced inbound tourism [2][14][49] - Hasbro took a $1 billion impairment charge in Q2 in its toy business due to tariffs, mainly on China [3] - Texas Instruments is experiencing losses despite a Q2 beat, with Q3 outlook projecting 11% sales growth, a slowdown from last quarter [6] - NXP Semiconductors issued Q3 guidance that failed to impress investors, with concerns about growth drivers and lower profit margins, leading to a share decline of about 3% [8][9] - Tesla's earnings are under scrutiny, with Goldman Sachs analysts estimating EPS for Q2 and the year below consensus [4][37] - Otis is issuing soft full-year EPS guidance due to weak demand for new equipment out of China and the Americas [34][35] Meme Stocks & Retail Investor Activity - Renewed meme stock trade is evolving, with moves in Crispy Cream and GoPro [12][13][25] - Doge is up more than 50% and Sheiba Enu is up more than 20% over the last month, indicating frothiness in the market [29] Economic Outlook & Bond Market - Concerns exist about the economic outlook in the second half, with GM calling out weak second-half demand and travel-related stocks showing concerns about lower-end income consumers [46][47] - The US economy is described as K-shaped, with a bifurcation between haves and have-nots at both the consumer and stock levels [48] - The bond market has been relatively quiet, but a flare-up could occur if investors believe the Fed is acquiescing to Trump or if Powell were to leave [50][51][52][59]