In a notable turnaround, the S&P 500 and Nasdaq reached new closing highs on Wednesday, recovering from a dip the previous day. AMD has been a standout performer, witnessing a remarkable 43% surge over the past three days, marking its best weekly performance since 2016. Among the so-called “Magnificent Seven,” Nvidia achieved a fresh closing high, while Amazon experienced its strongest trading day in a month. However, Fair Isaac faced challenges, marking its worst performance since late May and emerging as the biggest laggard in the S&P 500.
Market observers are keeping an eye on the forthcoming Federal Reserve meeting minutes, which revealed a divide among central bank officials regarding interest rate cuts. They are deliberating whether there should be two or three cuts by year’s end, with expectations of a quarter-point reduction slated for September.
On the earnings front, Delta Air Lines is set to unveil its earnings report on Thursday morning. The airline had reinstated its 2025 profit outlook in July and teased a stronger-than-anticipated summer travel season. Nonetheless, the company’s stock has dropped over 5% this year, threatening to break a trend of two consecutive years of double-digit gains. Meanwhile, United Airlines, one of the major carriers, is the only airline trading positively this year, with shares climbing 1%.
In a related story, an exclusive interview with Delta’s CEO, Ed Bastian, is scheduled for “Squawk Box” tomorrow at 7 a.m. ET.
PepsiCo is also expected to report its quarterly earnings prior to the opening bell. Despite projecting a rebound in weak North American demand linked to strategic changes, PepsiCo’s shares have taken a hit, slumping 8.7% year to date. CEO Ramon Laguarta will appear on CNBC at 10 a.m. ET tomorrow to discuss the earnings results.
In another highlight, Levi Strauss will release its quarterly earnings after market close. Although it’s early in the earnings cycle, the stock is tracking for its longest monthly winning streak ever with a remarkable 42% gain this year, potentially setting the stage for its best annual performance.
Additionally, CNBC’s Contessa Brewer will be broadcasting live from Macao, where the city is benefiting from a resurgence in global travel. Major operators such as Las Vegas Sands, Wynn Resorts, and MGM Resorts are enjoying the travel boom. Wynn Resorts has seen its shares skyrocket over 40% this year, positioning it for its best annual performance since 2017.
