The markets are poised for a potential rebound as the S&P 500 and Nasdaq attempt to recover from two consecutive days of decline. Encouraging signs are present as technology stocks bounce back; however, the oil market is facing significant challenges, with U.S. benchmark WTI crude dropping to $71 and international standard Brent crude reaching its lowest value since before the Iran war.
In individual stock news, FedEx shares are down about 4% following a complicated quarterly report. Despite exceeding earnings expectations primarily due to its recently spun-off FedEx Freight segment, the guidance has drawn skepticism as the company transitions to a new fiscal calendar. Analysts remain generally positive, with no downgrades reported. Notably, Wells Fargo maintained its price target at $425, while Bank of America adjusted its target slightly up to $378.
In a significant development, Alphabet, Google’s parent company, has been named to replace Verizon in the Dow Jones Industrial Average. However, analysts caution against viewing this as a reason to acquire more shares, as the Dow has less passive investment interest than the S&P 500 and Nasdaq 100.
Nike has appointed a new CFO, David Denton, previously from Pfizer, who will step into the role on August 17. The company’s upcoming earnings report is anticipated to align with prior guidance, including benefits from expected tariff refunds. Analysts suggest focusing on guidance rather than past performance.
Looking ahead to Constellation Brands’ earnings next week, Jefferies has adopted a cautious stance due to slowing U.S. consumption trends noted through May. While some analysts previously viewed the company as a potential beneficiary of the World Cup, which commenced earlier this month, current trends may dampen expectations.
Advanced Micro Devices (AMD) and Arm Holdings received a boost from UBS, which raised its price targets amid growing demand for agentic AI. Estimates were revised significantly, with AMD’s target moving up from $455 to $670 and Arm’s target increasing from $260 to $470.
Housing market trends appear stagnant, though KB Home shares experienced a minor uptick post-earnings, with revenue slightly exceeding expectations, despite earnings per share narrowly missing by two cents. The company tightened its delivery guidance for 2026, now projecting between 10,500 and 11,000 units.
Entertainment news also made waves as Take-Two Interactive shares rose following the announcement from its Rockstar Games subsidiary regarding the commencement of preorders for the much-anticipated Grand Theft Auto VI, set to release in November.
On a less fortunate note, shares of Cerebras, known for its AI chips, fell over 9% after delivering its first post-IPO earnings report that fell short of expectations for gross margin guidance. Despite this, the company continues to forge a relationship with OpenAI, which could drive future growth.
Lastly, Linde’s price target has been raised from $585 to $600 at Citi, with analysts advocating a pair trade strategy of preferring Linde over Air Products, leveraging Linde’s strong North American volumes and favorable pricing conditions, as well as potential growth in electronics projects.
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