Let's get more on that burst of positive economic news out this morning. Refllies inflation adjusted GDP for the second quarter came in at a healthy 3.8%. That was stronger than the 3.3% figure that was previously reported.And meanwhile, in a sign of strength for the labor market, initial jobless claims edged lower to 218,000 and July existing home sales, which just crossed ticked higher to just over 4 million. So, how does the US economy keep chugging along amid what seems like a drum beat of dire predicti ...

People tend to have amnesia when it comes to financial markets. It was only just a few months ago that max fear it was spreading like wildfire all across Wall Street. They swore on their life that tariffs would bring sky-high inflation to American consumers.That hasn't happened. You don't have to believe me either. Federal Reserve Chairman Jerome Powell, the boss, he said it himself yesterday.We're now collecting a good bit of revenue. The federal government collecting a good chunk of revenue, three or 400 ...

Market Dynamics - Colombia's coffee sector faces disruption due to an influx of Brazilian coffee beans [1] - The influx is a response to tariffs imposed by Donald Trump [1]

Core Insights - The H&M group reported a third-quarter operating profit of 4.9 billion Swedish krona ($521 million), a 40% increase year-over-year, surpassing analysts' expectations of 3.7 billion Swedish krona ($393 million) [3] - Despite a positive earnings report, the company anticipates less favorable results for the fourth quarter of 2025 due to increased tariff impacts [3] - Following the earnings announcement, H&M's stock price rose by 10% in after-hours trading on the Stockholm Stock Exchange [3] Financial Performance - The operating profit of 4.9 billion Swedish krona ($521 million) represents a significant year-over-year growth of 40% [3] - Sales in local currencies increased by 2% during the quarter [3] Store Operations - The H&M group reduced its store count from 4,298 to 4,118 over the past year, closing 135 stores (4%) in the first nine months of the fiscal year, with 48 closures in the third quarter alone [4][6] - Most store closures occurred in Europe, Asia, Oceania, and Africa, while only five stores were closed in North and South America [6] - The company opened a new store in Brazil, which was reported to be well received, indicating that closures do not necessarily reflect a planned consolidation strategy [6]

Group 1 - The Federal Reserve's independence is crucial for making difficult economic decisions without political pressure [1][2][3] - The U.S. dollar has depreciated by approximately 10% this year against major currencies, marking the largest appreciation in 50 years, which is linked to policy volatility and Fed credibility [2][3] - Traditional economic theories suggest that tariffs should lead to a stronger dollar and increased inflation, but current observations contradict this, indicating that inflationary effects from tariffs have only partially impacted the economy [4][5] Group 2 - The burden of tariffs is expected to be shared among companies and consumers, contradicting the belief that importers will absorb the costs without passing them on [5][6]

Because I was going to ask you if you were warming to you've been critical on tariffs before, but if you were warming to the idea given how much money they're bringing in. I know you're worried about the deficit as well and the fact that we haven't seen sort of this spike in inflation. Well, so so we are bringing in money.Remember it's it's effectively a national in some sense it's a national sales tax and the incidence of tax is therefore disproportionately high on lowerass and middle class America. Right. ...

Welcome to Market Catalyst. I'm Julie Hyman. We are 30 minutes into the US trading day.Let's get to the three market catalysts we're watching this hour. First up, the US stock rally cooling with equity sliding for a third day. We'll have full full market coverage.Plus, Coreweave is expanding its deal with Open AI to as much as a total of $22.4% billion. How long can OpenAI's massive spend last. And we'll get a read on the state of the consumer as second quarter GDP grew at its fastest clip in two years.Let' ...

MATT: FUTURES DOWN AGAIN TODAY, THIRD DAY IN A ROW OF LOSSES. I MATT MILLER. >> BLOOMBERG OPEN INTEREST STARTS RIGHT NOW. MATT: COMING UP, FED GOVERNOR STEPHEN MIRON SOUNDS THE ALARM ON U.S. VULNERABILITY WHEN FRESH DATA POINTS TO RESILIENT ECONOMIC GROWTH. DANI: A BID FOR A COMEBACK. INTEL SEEKS AN INVESTMENT FOR APPLE AS THEY FEEL THEY CAN WORK MORE CLOSELY TOGETHER. MATT: STARBUCKS CLOSING STORES AND CUTTING JOBS WHILE THE WHITE HOUSE ORDERS FEDERAL AGENCIES TO PREPARE FOR MASS FIRINGS. DANI: THOSE HEADL ...

Market Overview - Major indices experienced their third consecutive day of declines, with the Dow Jones Industrial Average down 0.3% to 46,121.28, the S&P 500 down 0.6% to 6,637.97, and the Nasdaq Composite down 0.9% to 22,497.86, attributed to profit-taking in the tech sector and concerns over high valuations [1][2] Automotive Industry - The Trump administration cut tariffs on EU automotive imports from 25% to 15%, effective August 1, leading to a rise in European automaker shares, with Porsche up 3.8% and other German manufacturers also seeing gains [3] - Earlier threats of a 25% tariff had negatively impacted shares of Volkswagen, BMW, and Porsche, which saw declines of 1.26%, 2.21%, and 2.51% respectively [3] Medical Device Sector - The U.S. Commerce Department announced new investigations into imports of medical devices, potentially leading to higher tariffs, which caused shares of major medical device manufacturers to drop, with Baxter International down 3.5%, GE HealthCare down 5.3%, and Integra LifeSciences down 5.3% [4] - Analysts described this situation as a new overhang for the medical device sector, with JPMorgan advising against panic [4] IT Sector - A new H-1B visa fee of $100,000 per visa has been implemented, significantly impacting Indian IT stocks, with the Nifty IT index falling over 6% this week and major firms like Tata Consultancy Services and Infosys experiencing declines of 2.7% and 2.58% respectively [5] - Analysts suggest a limited earnings impact for larger firms but highlight potential issues for U.S. health systems due to the upfront costs associated with the new visa fees [5] Pharmaceutical Industry - The threat of a 200% tariff on imported drugs has caused significant declines in global pharma shares, with U.S. companies like Amgen, AbbVie, and Pfizer dropping between 3% and 6% [6][7] - In response to tariff threats, major drugmakers are announcing substantial investments in U.S. production, with Johnson & Johnson committing $55 billion, Roche $50 billion, and GSK $30 billion [7] Geopolitical Developments - President Trump is expected to sign a deal allowing the sale of TikTok's U.S. operations to American investors, which has led to volatility in Oracle's stock, reflecting the market's interest in tech diplomacy [8] - Discussions with Turkish President Erdogan included the potential purchase of Boeing aircraft, with Boeing's stock having increased 46.5% over the last five years [9]

Core Insights - Caterpillar Inc. (NYSE:CAT) is recognized as a relatively cheap stock within the S&P 500, having increased nearly 77% from its lows in April, with expectations of 18% earnings growth and a valuation of 22 times next year's earnings [1][2]. Group 1: Company Performance - Caterpillar has shown significant stock performance, being described as having done "incredibly well" with a notable increase in stock price [1]. - The company is projected to achieve 18% earnings growth, indicating strong financial health and potential for future gains [1]. Group 2: Market Sentiment and Analyst Opinions - Morgan Stanley downgraded Caterpillar from Hold to Sell due to concerns over tariffs, reflecting a cautious market sentiment despite the company's strong performance [2]. - The company is expected to benefit from reshoring orders, although there are existing issues acknowledged by analysts [2].