Market Performance - The Dow and S&P 500 reached record closing highs, while the Nasdaq experienced a decline [1] - The S&P 500 gained 0.47 points (0.01%) to close at 6,715.82 points, the Nasdaq Composite lost 63.19 points (0.28%) to 22,780.86, and the Dow Jones Industrial Average rose 242.00 points (0.52%) to 46,761.72 [4] Economic Indicators - The US government shutdown continued for a third day, with a survey indicating the services employment index contracted for the fourth consecutive month, reinforcing the case for potential interest rate cuts by the Federal Reserve [2][3] - The market's expectation for a Fed rate cut has increased since the shutdown began, influenced by weaker economic data [3] Company-Specific Developments - Shares of Applied Materials fell after the company forecasted a $600 million hit to fiscal 2026 revenue [1] - Tesla's shares also declined, while S&P 500 utilities saw gains [1] - USA Rare Earth shares rose following CEO Barbara Humpton's comments about close communication with the White House [6]

Market Performance - The NASDAQ index gained 197 points or 0.90% to reach 22339, with a high of 22340.91 [1] - The S&P index increased by 31 points or 0.47% to 6614.69, with an earlier high of 6619.62, indicating potential for a new record close [1] - The Dow industrial average declined by 48 points or -0.11% to 45787.66, with companies like Amgen, McDonald's, Sherwin-Williams, and 3M contributing to the downturn [2] - The small-cap Russell 2000 rose by 7.69 points or 0.32% to 2404.73 [2] Notable Stock Movements - Tesla surged by 6.45% following reports of Elon Musk purchasing about $1 billion in Tesla stock, indicating strong bullish momentum [3] - Chewy increased by 5.42% due to optimism for continued demand growth in online pet supplies [3] - ASML ADR rose by 5.37% driven by strong semiconductor sector momentum and robust chip equipment demand [3] - Western Digital gained 5.24% as memory chip recovery prospects improved [3] - Roblox climbed by 4.55% on sustained growth expectations in gaming and metaverse engagement [3] - Tapestry increased by 4.34% supported by strong consumer discretionary flows and luxury retail optimism [3] - Intel advanced by 4.05% due to chip sector strength and AI-related tailwinds [3] - Alphabet A rose by 3.65% on steady ad revenue momentum and AI growth prospects [3] - Oracle increased by 3.28% following upbeat sentiment around its cloud and AI-driven enterprise services [3] - GameStop Corp climbed by 3.07% as retail interest in meme-related stocks remains elevated [3] - Snowflake edged higher by 2.76% with continued confidence in data and AI-related demand [3] - Snap increased by 2.66% on improving advertising sentiment [3] - Stellantis NV ticked up by 2.64% supported by global auto demand and EV outlook [3] - CrowdStrike Holdings advanced by 2.31% on strong cybersecurity sector momentum [3]

Group 1 - Orla Mining (ORLA) is recovering from a significant sell-off in late July and is building a base [1] - The company reported record high ounces of gold produced and sold in the second quarter [1] - Gold stocks have increased as the price of gold recently reached a new high, exceeding $3,600 per ounce [1] Group 2 - Alphabet, Google's parent company, is recognized for strong profit growth driven by artificial intelligence and other expanding businesses [2]

Core Insights - The success of Applied Materials Inc (NASDAQ:AMAT) is closely linked to the resolution of U.S.-China trade tensions, with analysts expecting Q2 revenue of $7.13 billion and earnings of $2.31 per share, aligning with prior guidance [1] Stock Performance - Applied Materials stock is currently up 0.8% at $175.46, marking a fourth consecutive gain and a year-to-date increase of 7.9%. The stock has reclaimed its 126-day moving average and is testing its 200-day trendline, potentially closing above it for the first time since October [3] Earnings Reactions - Historically, AMAT has experienced negative post-earnings reactions, with declines in three of the last four sessions following earnings reports, including an 8.2% drop in February. The stock averages a 4.6% move after earnings, while the options market is pricing in a 7.9% swing for the upcoming trading [2] Options Market Activity - Options traders are showing a bullish sentiment ahead of the earnings report, with over 16,000 calls traded, approximately double the average intraday volume. The most popular contract is the June 2027 175-strike call, indicating new positions being opened [5] - Despite the bullish sentiment in calls, puts have also gained popularity, with a 10-day put/call volume ratio of 0.95, ranking higher than 81% of readings from the past year, suggesting a notable increase in put activity [6]