Market Trends - The Dow Jones Industrial Average closed at a record high [1] - The Dow Jones Industrial Average soared more than 800 points [1] Monetary Policy - The Federal Reserve Chair Jerome Powell signaled interest rate cuts are on the way [1]

Interest rate cuts are big for $OPENPowell can unfreeze the housing market. ...

UK consumers are the most optimistic they’ve been about their household budgets in 12 months, according to a closely watched survey, a sign Britons are starting to feel the benefits of the Bank of England’s interest rate cuts https://t.co/rYq5LI1q3W ...

Core Viewpoint - Palantir's stock is experiencing significant sell-offs, raising questions about whether this presents an investment opportunity in a leading AI player [1][2][4]. Group 1: Stock Performance and Market Reaction - Palantir's share price fell by 7% during trading, with a peak decline of 9.8% earlier in the session [1]. - The recent sell-off was influenced by Home Depot's earnings report, which indicated price increases due to higher purchasing costs from tariffs, suggesting potential inflationary pressures on the consumer market [2]. - Target's earnings and comments regarding tariff-related pressures have also contributed to the continued decline in Palantir's stock [2]. Group 2: Economic Context and Valuation Concerns - A report from MIT indicated that many companies investing in AI have seen little to no return on investment, contributing to skepticism about the sector [4]. - Palantir's stock is trading at approximately 221 times this year's expected earnings and 78 times expected sales, making it the most growth-dependent valuation in the S&P 500 [5]. - If inflation rises, the Federal Reserve may struggle to implement interest rate cuts, which could negatively impact growth stocks like Palantir [5]. Group 3: Market Position and Future Outlook - Despite recent challenges, Palantir maintains a leading position in the AI software market and has secured significant contracts with government and corporate clients [6]. - For investors with a high risk tolerance and a long-term perspective, Palantir may still offer potential gains at current price levels, although waiting for a better entry point could be advisable given the current economic uncertainties [6].

We got big tech names selling off today. Names like Palanteer, Oracle, and Coinbase among the worst performing names on the S&P 500. This comes as the equal weight S&P 500 ETF, the RSP, is starting to outperform the MAG7 heavy S&P 500 ETF over the past week.So, does this mean that a rotation is actually starting to take hold. Well, let's bring in Aerial Investments vice chairman and head of investment group, Charlie Babinsque, as well as Innovator ETF's chief investment strategist, Tim Rabanowitz. It's grea ...

Retail Sector Overview - The retail sector has demonstrated significant resilience despite rising prices and inflation, with retail sales increasing by 0.5% in July after a 0.9% rise in June, and a year-over-year increase of 3.9% [1][3] - The growth in July was primarily driven by a 1.6% increase in motor vehicle sales at auto dealerships, following a 1.4% rise in the previous month [3] Online and Specific Retail Sales - Online sales rose by 0.8% in July, building on a 0.9% increase in June, while clothing stores and furniture outlets saw sales increases of 0.7% and 1.4%, respectively [4] - Households are reportedly spending less and saving more due to concerns over a weak labor market and potential inflation from tariffs [4] Impact of Tariffs and Federal Reserve Policy - Tariffs imposed by the Trump administration have contributed to rising prices, which in turn have influenced retail sales positively, potentially leading the Federal Reserve to maintain interest rates at 4.25-4.5% for an extended period [5] - Despite a hawkish stance, some Federal Reserve officials have indicated plans for two 25-basis-point rate cuts before year-end, with markets pricing in an 83.1% chance of a cut in September, which would benefit the retail sector and the economy overall [6] Selected Retail Stocks - Four retail stocks are highlighted for investment: Levi Strauss & Co. (LEVI), Walmart, Inc. (WMT), Dutch Bros Inc. (BROS), and Wayfair Inc. (W), all of which have seen positive earnings estimate revisions in the past 60 days and carry favorable Zacks Ranks [2][10] Levi Strauss & Co. - Levi Strauss & Co. has an expected earnings growth rate of 4% for the current year, with a Zacks Consensus Estimate improvement of 5.7% over the past 60 days, and holds a Zacks Rank 1 [8] Walmart - Walmart's expected earnings growth rate for the current year is also 4%, with a 0.4% improvement in the Zacks Consensus Estimate over the past 60 days, and it holds a Zacks Rank 2 [11] Dutch Bros Inc. - Dutch Bros Inc. is projected to have a 34.7% earnings growth rate next year, with an 8.2% improvement in the current-year earnings estimate over the past 60 days, and carries a Zacks Rank 2 [12] Wayfair Inc. - Wayfair Inc. is expected to see earnings growth of over 100% for the current year, with the Zacks Consensus Estimate improving by more than 100% in the past 60 days, and holds a Zacks Rank 2 [14]

Market Overview - Market participants began the trading week without a clear catalyst, resulting in flat trading with the Dow down 14 points (-0.03%) and the S&P 500 down 1 point (-0.02%) [1] - The Nasdaq saw a slight gain of +0.03%, while the small-cap Russell 2000 outperformed with a +0.35% increase [1] Homebuilders Confidence - Homebuilders Confidence for August decreased to 32, lower than the expected 34 and matching June's level, which is the lowest since December 2021 [2] - Homebuilders are increasing incentives for new home sales to a five-year high due to weak demand and elevated mortgage rates [2] Interest Rate Outlook - No interest rate cuts are expected from the Federal Reserve until at least September 17, with a projected cut of 25 basis points [3] - This potential cut would bring the Fed funds rate below 4% for the first time in 2.5 years [3] Upcoming Housing Data - Upcoming housing data includes Housing Starts and Building Permits for July, expected to be slightly lower at 1.30 million and 1.39 million, respectively [4] - Existing Home Sales are anticipated to improve to 4.0 million from 3.93 million reported last month [4] Earnings Results - Palo Alto Networks reported fiscal Q4 earnings of 95 cents per share, exceeding the consensus of 88 cents, with revenues of $2.54 billion surpassing expectations of $2.50 billion [5] - Following the positive earnings report, Palo Alto Networks shares jumped +7% [5] - Fabrinet also reported Q4 earnings of $2.65, beating consensus by a penny, with revenues of $909.7 million exceeding the expected $883.1 million [6] - Despite positive guidance, Fabrinet shares fell -1.5% after a year-to-date gain of +48% [6]

Group 1: Inflation and Economic Indicators - The Producer Price Index (PPI) in the U.S. increased by 0.9% in July from the previous month and 3.3% year-over-year, marking the largest monthly increase in three years [3][5] - Services were the primary driver of the PPI increase, rising by 1.1% in July, indicating that companies may be passing higher import costs to consumers [5][24] - The PPI report has influenced expectations regarding Federal Reserve rate cuts, with traders still anticipating a reduction in September, but the likelihood of a significant half-point cut has decreased [6][24] Group 2: Gold Market Dynamics - Gold prices have remained resilient, trading near historic highs, with spot prices consolidating in the mid-$3,300s after reaching an all-time high of $3,500 per ounce in April [7][8] - Factors contributing to gold's steady performance include inflation concerns, a weaker U.S. dollar, central bank demand, and expectations of lower interest rates [8][27] - Gold-backed exchange-traded funds (ETFs) saw inflows of $3.2 billion in July, bringing total assets under management to $386 billion, indicating strong investor interest [10] Group 3: Royalty and Streaming Companies - Royalty and streaming companies have reported record quarterly results, with Franco-Nevada achieving revenue of $369.4 million, up 42% year-over-year, and Wheaton Precious Metals generating $503 million in revenue [16][17] - These companies provide upfront financing to miners in exchange for a portion of future production, offering lower risk exposure and strong cash flow [13][14] - The model of royalty and streaming companies is seen as a balanced approach between owning bullion and traditional mining equities, capturing upside in rising gold prices while providing downside protection [15][20] Group 4: Traditional Miners and Market Outlook - Traditional gold miners are regaining favor, with UBS analysts upgrading their outlook on the sector due to improved capital management and rebuilding investor trust [21] - If gold prices remain stable, there is potential for increased stock buybacks and merger and acquisition activity among miners [22] - The ongoing inflationary environment and tariff impacts are expected to shift costs to consumers, reinforcing gold's role as a hedge against inflation [24][25]

[Music] Hello and welcome to Morning Brief Market Sunrise. I'm Raman Karamali live from Yahoo Finance Studios in London. It's Monday 18th August.Coming up on the show, geopolitics takes center stage as investors attention turns to Washington where President Trump hosts Ukraine's president alongside his European allies. The Fed is also in focus. Central bankers across the globe are to descend on Jackson Hole on Thursday.And we'll take a deep dive into what to expect when the big box retailers report earnings ...

Market Overview & Strategy - The market breadth is improving overall [1] - Expectations are for interest rate cuts [1] - A trade idea is shared for a global financial services firm [1] - A recent trade for a data storage company is reviewed [1] Risk Disclosure & Compliance - Options trading entails significant risk and is not appropriate for all investors; certain complex options strategies carry additional risk [1] - Supporting documentation for any claims will be furnished upon request [1] - Fidelity Brokerage Services LLC is a Member of NYSE, SIPC [1] Resources & Engagement - Before trading options, please read Characteristics and Risks of Standardized Options [1] - Join weekly sessions for more details on trade ideas [1] - Sign up for more tips and insights from the team [1] - Follow Fidelity on various social media platforms including YouTube, Reddit, Instagram, TikTok, Facebook, LinkedIn, Discord, and X (formerly Twitter) [1]