Dell reports ‘beat and raise,’ Caterpillar sees big tariff impacts: Morning Buzz

The major averages were broadly lower near noon after the S&P 500 and Dow Jones closed at record highs yesterday. The July Personal Consumption Expenditures chain price index rose 0.2% in July and the core rate increased 0.3%. The annual pace was steady at 2.9% year-over-year for the headline and the core rate was rounded up to 2.9% year-over-year from 2.8%, with the latter marking the hottest reading since February. Meanwhile, tech has lagged as Dell and Marvell forecasted softer outlooks.

Following the PCE data, all eyes are on the upcoming August jobs report to determine whether the Fed will follow through with the rate cut being priced in for September.

Looking to commodities, gold prices continue to rise, adding to this week’s sharp gains for the “safe haven” asset as it hovers around $3,500. Oil prices, meanwhile, were trading lower as the commodity continues to experience volatility.

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists, and subscribe to the daily Fly By.

1. STOCK NEWS:

• Dell Technologies (DELL) provided a “beat and raise” report for Q2
• Alibaba (BABA) reported mixed Q1 results, with revenue increasing year-over-year
• Caterpillar (CAT) said it expects a roughly $500M-$600M impact from tariffs in Q3 and a 2025 net tariff headwind in the range of $1.5B-$1.8B
• Celsius Holdings (CELH) announced that PepsiCo (PEP) has acquired $585M in newly issued convertible 5% preferred stock while extending its existing preferred stock to the same conversion period, and that Celsius has acquired the Rockstar Energy brand in the U.S. and Canada from Pepsi
• Ulta Beauty (ULTA) provided a “beat and raise” report for Q2

2. WALL STREET CALLS:

• BofA downgraded Marvell (MRVL) to Neutral from Buy, upgraded Dollar Tree (DLTR) to Outperform, saying it is ‘encouraged’ by the early results from the company’s introduction of multi-price point products
• Ambarella (AMBA) upgraded to Buy from Hold at Summit Insights following the fiscal Q2 beat
• Raymond James initiated coverage of ServiceTitan (TTAN) with a Market Perform rating 
• Citi initiated coverage of Lumentum (LITE) with a Buy rating

3. AROUND THE WEB:

• CVS Health (CVS) is currently not offering COVID vaccines in 16 states, including Florida, New York and Pennsylvania, due to the current regulatory environment, NY Times says
• According to a new survey by Electric Vehicle Intelligence Report, more consumers indicate that Tesla’s (TSLA) Full Self-Driving systems would push them away from the brand rather than drawing them to it, CNBC says
• Delta Air Lines (DAL) has agreed to pay $78.75M to settle a class action lawsuit regarding a 2020 fuel dump that doused tens of thousands of properties in Los Angeles and Orange counties, Reuters reports
• Spirit (FLYY) Chairman Robert Milton met with Frontier (ULCC) Chairman earlier this week to discuss the airline’s ongoing efforts to charter a path forward following its bankruptcy, Bloomberg says
• Eli Lilly (LLY) has offered a discounted deal on weight loss drug Mounjaro to UK suppliers, which is expected to limit the price increase to consumers from September, BBC says

4. MOVERS:

• NeoGenomics (NEO) higher after announcing the District Court for the Middle District of North Carolina ruled in its favor in its lawsuit against Natera (NTRA)
• IREN (IREN) increases in New York after reporting quarterly results and securing Nvidia (NVDA) preferred partner status
• Petco (WOOF) gains after reporting Q2 results and providing guidance for FY25
• Applied Digital (APLD) and CoreWeave (CRWV) fall after finalizing their new lease agreement
• Webull (BULL) and Chagee (CHA) lower in New York after reporting quarterly results

5. EARNINGS/GUIDANCE:

• Marvell (MRVL) reported Q2 results, with EPS and revenue in-line with consensus
• Gap (GAP) reported Q2 results, with CEO Richard Dickson commenting, “Gap Inc. overdelivered on profit expectations and achieved our topline goals”
• Affirm (AFRM) reported Q4 results and provided guidance for Q1 and FY25
• Autodesk (ADSK) reported Q2 results, with EPS beating consensus
• Leggett & Platt (LEG) cut its guidance for FY25

INDEXES:

Near midday, the Dow was down 0.49%, or 222.20, to 45,414.70, the Nasdaq was down 1.25%, or 272.07, to 21,433.09, and the S&P 500 was down 0.78%, or 50.58, to 6,451.28.