Market Overview - The U.S. stock market is experiencing a notable pullback, with major indexes extending losses for a third consecutive session, driven by profit-taking and concerns over equity valuations [1][2] - Afternoon trading reflects a cautious mood as market participants digest economic data and corporate news [1] Market Indexes Performance - The Dow Jones Industrial Average (DJIA) was down approximately 0.2%, or 76 points, closing at 46,121.28 [2] - The S&P 500 (SPX) slipped between 0.4% and 0.7%, heading towards its longest slide in over a month, after falling to 6,637.97 [2] - The Nasdaq Composite (IXIC) traded 0.3% to 0.7% lower, following a dip to 22,497.86 [2] Sector Performance - Mixed performance across sectors, with profit-taking evident in the technology segment; seven out of 11 sectors in the S&P 500 ended in negative territory [3] - The Energy Select Sector SPDR (XLE) advanced 1.3%, while the Materials Select Sector SPDR (XLB) and Real Estate Select Sector SPDR (XLRE) saw declines of 1.2% and 1%, respectively [3] Copper Market Impact - A surge in copper prices is noted after Freeport-McMoRan declared force majeure on supplies from its Grasberg mine due to a fatal mudslide, causing copper prices to rise by 1.1% [4] - Shares of copper producers like Anglo-American and Glencore saw gains due to this supply disruption [4] Homebuilders Performance - Homebuilders like Lennar (LEN) and D.R. Horton (DHI) are experiencing gains, attributed to a 20.5% surge in U.S. sales of new homes in August 2025, reaching an annual rate of 800,000 units [5] Upcoming Economic Data - Key U.S. inflation data (PCE) is anticipated, which could significantly influence market direction [6] - Weekly jobless claims data and the latest GDP estimate are also set to be released, providing insights into the labor market and economic health [6] Federal Reserve Commentary - Federal Reserve Chair Jerome Powell's remarks on equity prices being "fairly highly valued" and a measured approach to interest rate cuts continue to weigh on investor sentiment [7] - Stronger-than-expected economic reports may reduce the urgency for aggressive rate reductions [7] Corporate Earnings Reports - Notable companies like Costco Wholesale (COST), Accenture (ACN), and CarMax (KMX) are scheduled to report fiscal fourth-quarter results, which will be closely watched for insights into consumer spending [8][9] Individual Stock Movements - Technology stocks, particularly in the AI space, are facing profit-taking; Nvidia (NVDA) shares fell 0.8% and Oracle (ORCL) fell 1.7% due to valuation concerns [10] - Intel (INTC) shares rose over 5% on news of seeking investment from Apple, while IBM (IBM) rose more than 5% following positive trial results using its quantum computing technology [11] - Starbucks (SBUX) shares slipped almost 1% due to layoffs and store closures, while CarMax (KMX) tumbled 19.8% after reporting weaker-than-expected profits [12] - Lithium Americas (LAC) soared 95.8% on reports of potential U.S. government investment in its lithium project [13] Market Environment - The market is navigating a complex environment characterized by a resilient economy, cautious Federal Reserve, and re-evaluation of high-growth stock valuations [14]

Core Insights - American Eagle Outfitters, Inc. (AEO) reported $1.28 billion in revenues for Q2 of fiscal 2025, marking its second-highest performance for this quarter, with earnings per share increasing by 15% year over year to 45 cents [1][8] - The company is adapting its store footprint by planning to open approximately 30 Aerie and Offline locations, remodel 40-50 American Eagle stores, and close 35-40 AE stores to enhance productivity and support digital growth [2] - Aerie achieved a 3% comparable sales growth, reaching record revenues for the fiscal second quarter, while the American Eagle brand saw increased traction in women's jeans, tops, and men's graphics, driven by high-profile collaborations [3][8] Financial Performance - AEO has returned $276 million to shareholders through dividends and share repurchases year to date, including a completed $200 million accelerated buyback program [4] - Management projects low single-digit comparable sales growth for the latter half of 2025, with operating income expected to be between $95 million and $100 million in Q3 and between $125 million and $130 million in Q4 [5] - AEO's forward 12-month P/E ratio stands at 14.23X, which is below the industry average of 18.84X and the sector average of 24.93X, indicating a modest discount compared to peers [9] Market Position - AEO's shares have surged 82.2% over the past three months, significantly outperforming the industry average increase of 10.5% [6]

Group 1 - The rise of artificial intelligence (AI) is leading to job displacement, particularly in entry-level positions that involve repetitive administrative tasks [1][2] - Soft skills, especially critical thinking, creativity, and adaptability, are becoming increasingly valuable in the workforce as AI continues to evolve [1][2] - Companies like Walmart are already implementing AI tools in their operations to enhance productivity and reduce costs, allowing for sales growth without increasing headcount [3] Group 2 - The effectiveness of AI tools is heavily dependent on the quality of prompts provided by users, emphasizing the need for strong critical thinking skills to maximize AI capabilities [4][5] - Developing critical thinking skills can be achieved through asking insightful questions and engaging in continuous learning, such as reading books [6]

Market Overview - U.S. stock markets are experiencing a pullback, with major indexes declining for three consecutive sessions after reaching record highs earlier in the week, indicating a pause for investors to digest economic data and corporate news [1][10] - The S&P 500 is down approximately 0.6%, the Nasdaq Composite has fallen 0.9%, and the Dow Jones Industrial Average shows a modest decline of 0.1%, yet all indexes remain near all-time highs [2] Economic Indicators - The final revision to second-quarter GDP shows an annual growth rate of 3.8%, revised up from 3.3% [3] - Weekly jobless claims fell to a two-month low of 218,000, indicating a resilient labor market [3] - Core capital goods new orders rose by 0.6% month-over-month, exceeding expectations [3] - The 10-year Treasury yield increased to 4.18%, up from 4.15%, which may negatively impact stock prices due to rising borrowing costs [3] Upcoming Economic Data - Investors are awaiting the release of the August Personal Consumption Expenditures (PCE) index, which is crucial for shaping expectations regarding the Federal Reserve's monetary policy [4] Earnings Reports - CarMax (KMX) shares fell nearly 12% after missing second-quarter profit targets, while THOR Industries Inc. (THO) surged 6.1% after exceeding earnings estimates [5] - Other companies reporting earnings include Accenture plc (ACN), Jabil Inc. (JBL), Synnex Corp. (SNX), BlackBerry Limited (BB), and LuxExperience B.V. (LUXE) [5] Notable Stock Movements - Intel (INTC) shares surged nearly 7% following reports of discussions with Apple (AAPL) regarding potential collaboration [6] - IBM (IBM) rose over 5% due to positive news related to quantum computing [7] - Tesla (TSLA) shares declined by 3.5%, while Oracle (ORCL) fell 4.7% for the third consecutive day [7] - Amazon (AMZN) shares decreased after agreeing to a $2.5 billion settlement over deceptive subscription practices [8] - Birkenstock (BIRK) shares jumped close to 5% after pre-announcing strong results, while Freeport-McMoRan (FCX) sank 11.6% due to lower sales forecasts [9] Market Sentiment - The overall market sentiment is cautious as investors weigh strong economic data against potential implications for monetary policy, leading to a rotation out of high-flying tech stocks [10]

Industry Overview - The retail sector has undergone significant digital transformation accelerated by the COVID-19 pandemic, shifting from supply-driven models to data-driven strategies focused on personalized offerings [2] - US retail sales increased for the third consecutive month in August, indicating continued consumer spending despite challenges such as higher prices and a cooling job market [3][4] - Retail purchases rose by 0.6% from the previous month, with a notable 0.7% increase when excluding autos, driven by strong performance in online retail, clothing, and sporting goods [4] Investment Opportunities - The retail industry has reached a point of relative stability, making it an attractive option for investors looking for opportunities linked to rising consumer demand [5] - Retail companies distributed $34.6 billion in dividends in 2024, a significant increase from $18.1 billion in 2018, highlighting the sector's strong track record of rewarding shareholders [5] Company Highlights - **Macy's, Inc. (NYSE:M)**: - Operates under Macy's, Bloomingdale's, and Bluemercury, focusing on clothing, accessories, and home essentials through approximately 680 stores and online channels [10] - Has been upgrading stores and expanding its online marketplace, with a current quarterly dividend of $0.1824 per share and a dividend yield of 4.32% as of September 22 [12] - **American Eagle Outfitters, Inc. (NYSE:AEO)**: - Specializes in casual clothing for teens and young adults, operating 1,185 stores and expanding globally through franchises [13] - Recently declared a quarterly dividend of $0.125 per share, maintaining regular payments for the last two decades, with a dividend yield of 2.79% as of September 22 [15] - **Best Buy Co., Inc. (NYSE:BBY)**: - A multinational retailer in consumer electronics, reporting revenue of nearly $9.44 billion in Q2 2025, reflecting a 1.6% year-over-year increase in comparable sales [17] - Offers a quarterly dividend of $0.95 per share, with a dividend yield of 5.25% as of September 22, and has increased dividends for 12 consecutive years [18]

Company Insights - Intel shares surged following a report that the chipmaker is seeking an investment from Apple [3][4] - IBM shares gained after HSBC indicated that quantum computing could enhance predictability in bond trading outcomes [3] - Lithium Americas shares continued to rise on indications that the Trump administration is considering taking a stake in the lithium miner [3] Market Performance - Major U.S. equities indexes, including the Dow, S&P 500, and Nasdaq, experienced losses for the third consecutive day as investors reacted to various economic indicators [2][4] - CarMax was the worst-performing stock in the S&P 500 after reporting weaker-than-expected results, with CEO Bill Nash describing the quarter as "challenging" [2][4] - Oracle shares declined after Rothschild Redburn analysts initiated coverage with a "sell" rating, suggesting that the market is overestimating the company's revenue outlook [2]

The price of Bitcoin (^BTCUSD) is down by more than -2% at a 2-week low, ahead of the expiration of monthly options. More than $17 billion in notional open interest tied to Bitcoin is set to expire on Friday, according to derivatives exchange Deribit.Kansas City Fed President Jeff Schmid signaled the Fed may not need to lower interest rates again soon and said the current stance of Fed policy is “slightly restrictive, which I think is the right place to be as inflation remains too high while the labor marke ...

Group 1: Intel and Apple - Intel has approached Apple for investment as it struggles financially, with discussions on closer collaboration [2][3] - Intel shares rose over 3% in pre-market trading following the news, and it is partially owned by the US government [3] - Recent investments in Intel include a $5 billion investment from Nvidia and a $2 billion investment from SoftBank [3] Group 2: Trade Agreements and Tariffs - The Trump administration confirmed the implementation of a US-EU trade agreement, reducing tariffs on EU autos and auto parts from 25% to 15% [4][5] - This tariff reduction alleviates concerns in the automotive industry, allowing for better sourcing decisions [4][5] Group 3: TikTok Deal - President Trump is expected to sign a deal allowing the sale of TikTok's US operations to a group of US investors, including Oracle, with ByteDance retaining less than 20% ownership [5][6] - This deal is significant in the context of US-China trade negotiations [6] Group 4: Corporate Earnings - Accenture reported Q4 revenue of $17.6 billion and adjusted earnings per share of $3.3, exceeding expectations [11] - CarMax missed Q2 earnings expectations with earnings per share of 64 cents, leading to a pre-market drop of over 9% [12] - Costco's upcoming Q4 results are anticipated to show strong sales in the US and Canada, but weaker international sales [13] Group 5: Gold Market Insights - Gold prices have recently surged, with a 250% increase from 2016 lows, driven by central bank purchases and a weaker dollar [23][24] - The current gold market is characterized by a strong breakout trend, with potential for further gains if volatility increases [27][28] Group 6: H&M Performance - H&M shares rose over 8% after reporting a third-quarter operating profit of 4.91 billion crowns, up from 3.51 billion crowns a year ago [30] - The company warns that upcoming US tariffs may squeeze margins, prompting a shift in sourcing closer to America [30] Group 7: Tesla and BYD Competition - Tesla's sales in Europe have declined over 36%, with BYD overtaking Tesla in sales for the second consecutive month [32] - Tesla's market share in Europe has dropped to 1.2%, raising concerns among investors [32] Group 8: Open Door Stock Movement - Open Door shares have surged nearly 1,400% in the past three months, driven by institutional investment and positive housing data [34][35] - The stock remains highly speculative despite recent gains [35] Group 9: Hertz Global Developments - Hertz Global shares rose about 5% in pre-market trading after announcing plans to expand and clean up its balance sheet [36] - The company is backed by activist investor Bill Ackman's Pershing Square, which owns a 20% stake [36]

Core Insights - Walmart has become the presenting partner of ElClásico in the U.S., marking a historic milestone for both Walmart and LALIGA [3][9] - The partnership aims to enhance the experience of soccer fans in the U.S. through various events and activations [6][9] Company Overview - Walmart is the world's largest retailer, with fiscal year 2025 revenue of $681 billion and approximately 2.1 million associates globally [11] - The company operates over 10,750 stores and numerous eCommerce websites across 19 countries, serving around 270 million customers weekly [11] Industry Context - ElClásico, featuring FC Barcelona and Real Madrid, is a cultural phenomenon with an audience of 650 million viewers across more than 180 countries [4] - The match is scheduled to take place on the weekends of October 25-26, 2025, and May 9-10, 2026, during the 2025/26 LALIGA season [5] Partnership Details - The partnership will include large-scale viewing events, concerts, meet-and-greets with LALIGA Legends, and co-branded merchandise [3][9] - Walmart's involvement in soccer is part of a broader strategy to connect with a rapidly growing fanbase in North America, especially ahead of the 2026 World Cup [6][8] Marketing and Branding - A new visual identity for ElClásico will be introduced, featuring Walmart as the presenting partner, to be used across all match-related properties in the U.S. and Canada [2][3] - Walmart's partnership with LALIGA follows a recent multi-year agreement with Major League Soccer (MLS) and Leagues Cup, emphasizing its commitment to soccer [8]

Core Insights - Retailers are expected to sharply reduce seasonal hiring plans in the fourth quarter, with anticipated job additions dropping to the lowest level in 16 years [1][2] - The overall job market in the U.S. is softening, with only 22,000 jobs added in August, significantly below expectations [2] Group 1: Seasonal Hiring Trends - Employers are predicted to add less than half a million jobs in the fourth quarter, down from 543,000 last year [1] - Several major retailers, including Target, Macy's, and Burlington, have not yet announced their seasonal hiring plans, and those who have reported numbers are either equal to or slightly lower than last year [4] Group 2: Economic Factors Impacting Retail - Tariffs and inflationary pressures are affecting seasonal hiring, as companies are increasingly relying on automation and permanent staff rather than large seasonal hires [2] - The Consumer Price Index indicates that household goods are 10% more expensive than pre-tariff levels, which may be influencing consumer spending behavior [5] - A PwC report indicates that shoppers plan to spend 5% less on holiday gifts, travel, and entertainment this year, marking the first significant decline since 2020 [5] Group 3: Consumer Behavior - Despite economic challenges, consumer spending at stores remains steady, and if this trend continues into the holiday season, retailers may be compelled to increase hiring later in the year [3]