Stock Market Today: Nasdaq Finishes Higher as CoreWeave, Supermicro Lead Tech Gains; CPI Data Matches Expectations

Weak Wage Growth Is Squeezing Americans’ Spending Power

FROM 3 hr 22 min ago

The surprisingly weak July jobs report is prompting doubts about the job market’s strength, but one trend is clear: wages aren’t rising much.

The latest evidence came Friday, when the monthly jobs report showed average hourly earnings rose at an annual pace of 3.2% in July—below the current inflation rate of 3.4%. That could dampen consumers’ spending power, since their paychecks aren’t keeping up with rising prices.

“Wage pressures are pretty muted right now,” said Cory Stahle, senior economist at Indeed. “By and large, employers are just not pulling out the stops to attract people through wages.” 

Subdued wage growth could help the economy a bit, as it could give the Federal Reserve less reason to raise interest rates. That would prevent credit cards and other borrowing from getting more expensive, easing pressure for consumers with debt.

Read the full article here.

–Polo Rocha

Gap Gets a Downgrade on Worries About Its Old Navy Brand. The Stock Is Sliding

FROM 3 hr 57 min ago

Gap’s turnaround effort may be progressing at its namesake stores, but worries about weakness at Old Navy have one group of analysts downgrading the stock.

Jefferies analysts on Wednesday cut their rating of Gap (GAP) stock to “hold” from “buy,” and lowered their price target to $23 from $29, telling clients they’re “increasingly concerned about softer trends at Old Navy.” Gap shares were down 4% Wednesday to $20, leaving them about 20% lower for the year so far. 

The analysts wrote that recent conversations with investors “have shifted from whether the turnaround is real to how much longer it can be sustained, with particular focus on Old Navy’s trajectory.” Gap has also been relying more heavily on discounts at Gap and Old Navy to drive sales in recent months, the analysts wrote, with average selling prices declining at both brands.

The split between Gap and its subsidiaries has been the story of Gap’s results in recent quarters, with strong results at its namesake stores offset by lackluster performances from Old Navy, Athleta, and Banana Republic. 

Of the other seven analysts with current ratings tracked by Visible Alpha, four have neutral ratings like Jefferies, while just three have recommended buying the stock. Their mean target hovers just above $28.

Investors will get their next look at how the retailer’s brands are faring when Gap reports its second-quarter earnings after markets close on Aug. 27.

–Aaron McDade

Wendy’s Shares Surge on Report Peltz’s Trian Preparing Bid to Take Chain Private

FROM 4 hr 55 min ago

Famed investor Nelson Peltz reportedly is interested in taking Wendy’s private. Shareholders of the fast-food chain evidently are enthusiastic about the prospect.

Wendy’s (WEN) shares are jumping 11% Wednesday afternoon after the Financial Times, citing people familiar with the matter, reported that Peltz’s Trian Fund Management “is laying the groundwork for a take-private bid” for the burger chain.

The FT added that Trian—Wendy’s largest shareholder at 16%—is assembling co-investors that likely would include Flynn Group, one of Wendy’s largest franchisees, and BlueFive Capital.

With today’s move, Wendy’s shares moved into positive territory for 2026.

H&R Block Stock Surges on Strong Results, Rosy Fiscal 2027 Outlook

FROM 6 hr 19 min ago

Investors are buying H&R Block shares today.

H&R Block (HRB) stock is up 15% to a 2026 high after the tax-preparation firm’s fiscal 2026 fourth-quarter results and 2027 projections exceeded analysts’ estimates.

The Kansas City, Mo.-based firm reported Q4 adjusted earnings of $2.38 per share on revenue that increased 3% year-over-year to $1.14 billion. Analysts surveyed by Visible Alpha had expected $2.21 per share and $1.12 billion, respectively.

For its new fiscal year, H&B Block sees adjusted EPS of $6.04 to $6.24, adjusted EBITDA of $1.11 billiont to $1.14 billion, and revenue of $4.11 billion to $4.16 billion. Each topped Visible Alpha consensus.

With today’s gains, H&R Block shares are up 23% on the year.

Nebius Group Stock Soars After Strong Results

FROM 7 hr 19 min ago

Nebius Group shareholders already were enjoying the stock’s year-to-date gains. They’re even happier now.

Nebius (NBIS) shares are soaring 27% to pace the Nasdaq today after the AI infrastructure firm posted stronger-than-expected second-quarter results.

The company, whose core business is a full-stack AI cloud, posted adjusted EBITDA of $236.2 million on revenue that increased 454% year-over-year to $582.3 million. Analysts polled by Visible Alpha had expected $168.9 million and $570.7 million, respectively.

“We continue to build our future capacity pipeline through our own and co-located colocated sites, and today raise our year-end contracted power target to 5 gigawatts,” CEO Arkady Volozh said on the company’s earnings call, according to a transcript provided by AlphaSense.

Nebius shares have roughly tripled this year to $247, although they are off their all-time high of nearly $300 set on June 22.

S&P 500 Gains Even Though Only 3 of 11 Sectors in Green

FROM 8 hr 23 min ago

Just three of the 11 sectors tracked by the S&P 500 are in positive territory in recent trading, but one in particular is leading the benchmark index to overall gains.

The S&P 500 Information Technology Index is up 1.2%, helping the index tick 0.2% higher.

Super Micro Computer (SMCI) and Lumentum Holdings (LITE) are the top performers in the sector, up roughly 13% and 12%, respectively.

Real Estate and Utilities are the only other sectors in the green.

Home Depot CEO Decker to Take Medical Leave

FROM 9 hr 37 min ago

Home Depot CEO Ted Decker will take a temporary medical leave of absence, the home-improvement retailer said Wednesday morning.

Home Depot (HD), which added it “expects Decker to return within the next few months,” tapped senior EVP Ann-Marie Campbell to provide oversight of its day-to-day operations in his absence, and EVP and CFO Richard McPhail will “provide oversight of the company’s financial management and Pro subsidiaries.” Independent lead director Greg Brenneman will chair Home Depot’s board.

“Both Ann-Marie and Richard are strong, seasoned executives who have worked together for more than 20 years,” Brenneman said. “We are confident in Ann-Marie’s and Richard’s ability to lead the company during this time, and we look forward to Ted’s return.”

Home Depot shares slipped about 1.5% in early trading. They are 1% higher this year.

CoreWeave Stock Soars as Revenue Doubles on AI-Driven Demand

FROM 9 hr 49 min ago

CoreWeave shares are surging after the cloud computing provider posted quarterly results that beat Wall Street’s estimates. 

CoreWeave (CRWV) shares were up 20% in recent trading, a day after the company said its revenue more than doubled to $2.58 billion in the second quarter, above Street forecasts. CoreWeave reported a net loss of $1.14 per share, when analysts had called for a loss of $1.39 per share. 

CoreWeave’s backlog of $104 billion was about $4 billion shy of estimates, but the company said it has already added about $25 billion in new commitments to that backlog through the early part of the third quarter.

Executives said in Tuesday’s earnings call that they expect third-quarter revenue to come in between $3.45 billion to $3.6 billion, above the $3.45 billion analysts projected. For the full year, CoreWeave lifted its revenue forecast to $12.4 billion to $13.2 billion, up from $12 billion to $13 billion previously, with full-year capital expenditures projected between $35 billion and $39 billion.

JPMorgan analysts lifted their price target for the shares to $120 from $110 following the report, suggesting the results could give investors more confidence in demand. They maintained a neutral rating, however, waiting to see more evidence of improving profitability.

With Wednesday’s gains, CoreWeave shares are up 50% since the start of the year.

–Aaron McDade

Diner Traffic, Same-Restaurant Sales Growth Lift Cava

FROM 10 hr 12 min ago

Eaters are showing up and chowing down at Cava. 

Shares of the fast-casual Mediterranean restaurant chain are rising early Wednesday in the wake of the company’s latest financial results. 

Cava turned in year-over-year quarterly guest traffic growth of more than 5%; that helped power same-restaurant sales growth of 9%, topping the 7.4% Visible Alpha consensus. Those numbers may bode well for other companies in the sector. 

Cava (CAVA) reported second-quarter revenue of about $368 million, up more than 30% year-over-year and better than analysts had forecast. Earnings of 19 cents per share came in 1 cent ahead of estimates.

The company maintained its full-year outlook, expecting to open 75 to 77 new restaurants this year with same-restaurant sales growing by 4.5% to 6.5%. 

Shares of Cava were recently up 17% in premarket trading; they were about flat for the year through yesterday’s close. 

— Aaron McDade

Inflation Was Cool in July, Slowing for a Second Month

FROM 10 hr 29 min ago

Inflation simmered down for a second month in July, hinting at some relief for households and the economy.

The cost of living as measured by the Consumer Price Index rose 3.4% over 12 months in July, down from a 3.5% annual increase in June, the Bureau of Labor Statistics said Wednesday.

The “core” price index, which excludes the volatile prices for food and energy, rose 2.5% over the year, down from a 2.6% annual increase in June.

It was the second month that the widely watched inflation gauge slowed. CPI hit a recent peak of 4.2% in May, driven by the war in Iran, which pushed up fuel prices. A lull in the conflict helped gasoline prices fall in July, and inflation along with it.

Read the full article here.

–Diccon Hyatt

Super Micro Computer Stock Rallies as Profits, Outlook Top Estimates

FROM 11 hr 5 min ago

Shares of Super Micro Computer (SMCI) are also surging premarket after the server maker’s profits blew past estimates.

Supermicro, as the company is known, announced late Tuesday that it posted adjusted earnings of $1.70 per share in its fiscal fourth quarter, nearly double the 94 cents that analysts were looking for.

The company—which last month warned that sales for the period would likely come in at the low end of its prior guidance of $11 billion to $12.5 billion—reported revenue of $11.1 billion.

For the current quarter, Supermicro expects revenue of between $14.5 billion and $15.5 billion, well above the $11.84 billion analyst consensus, along with adjusted earnings between $1.01 and $1.10 per share, also above estimates.

Supermicro shares were up 9% in recent premarket trading.

–Aaron McDade

Here’s How Much Traders Expect Cisco Stock to Move After Earnings

FROM 11 hr 39 min ago

Cisco is set to post earnings after the closing bell Wednesday, with traders anticipating a move that could bring the stock back near its June highs.

Cisco (CSCO) stock is seen swinging up to 7% in either direction by the end of the week, based on recent options pricing. A move of that size from Tuesday’s close could see the stock rise as high as $129, just short of its early June record, or drag it below $112.

Cisco shares have rallied close to 60% since the start of the year, as AI-driven demand for the company’s networking hardware has boosted the stock, though they’ve slipped from their highs amid a broader pullback in the AI trade.

UBS analysts wrote ahead of the report that they see Cisco topping Street estimates with its quarterly results, though they warned conservative forecasts for fiscal 2027 “could be modestly disappointing for the shares.”

Read the full article here.

–Aaron McDade

Morgan Stanley Warns Investors Underestimating SpaceX’s AI Unit

FROM 12 hr 8 min ago

Wall Street’s expectations for SpaceX’s AI unit are so low, it may not need a pogo stick—let alone a rocket—to clear the bar, argued Morgan Stanley analysts in a note Monday evening.

“The implied valuation for SpaceX’s AI business at the current price is, in our opinion, extremely conservative,” analysts led by Adam Jones wrote in a note arguing investors are failing to appreciate the opportunity the AI potential that underpins their $300 price target. 

“From our conversations, very few investors are bullish SpaceX’s AI business beyond neocloud,” referring to the lucrative data center leasing deals SpaceX has struck with Anthropic and Alphabet. Though, by Morgan Stanley’s estimates, they’re not ultra-bullish on that business, either. They calculate investors are currently valuing SpaceX’s entire AI business at $12 a share, “well below even neocloud peers.” 

On top of undervaluing the neocloud opportunity, Morgan Stanley says investors are underestimating upside from SpaceX’s impending acquisition of Cursor, the AI coding agent platform it agreed to buy in June for $60 billion. Once the acquisition closes later this quarter, Morgan Stanley believes the rollout of new Grok models incorporating Cursor data and updates on Cursor’s revenue growth could be catalysts that brighten the outlook for SpaceX AI. 

Enterprise AI adoption is growing fast, with the median monthly AI spend per employee growing 167% year-over-year to $11 in June, according to the Ramp AI Index. The top 1% of companies in terms of AI spending are shelling out nearly $5,000 per employee for AI services every month. And there’s still room for growth. By Ramp’s measure, nearly half of U.S. companies spend no money at all on AI products or services, and the Census Bureau puts that figure at 80%.  

Morgan Stanley expects Cursor’s annual revenue run rate to skyrocket from $4 billion in June to $8 billion by year-end, $17 billion next year, and $33 billion by 2030. “As investors see more breadcrumbs on the Cursor/Grok story, we see potential for the implied valuation discount on SpaceX’s AI business to lift, driving potentially substantial appreciation of the stock,” the analysts wrote. 

SpaceX (SPCX) stock tumbled nearly 5% yesterday after closing on Monday above its $135 IPO price for the first time since mid-July. Shares pointed 1% higher in premarket trading Wednesday.

–Colin Laidley

Stock Futures Rise Ahead of Inflation Data

FROM 12 hr 37 min ago

Futures contracts tied to the Dow Jones Industrial Average pointed up 0.1%.

S&P 500 futures were up 0.3%.

Nasdaq 100 futures advanced 0.7%.