Palantir reports Q2 beat, Caterpillar posts mixed results: Morning Buzz

Stocks wiped out gains as a disappointing reading on U.S. services raised concern about the outlook for corporate America. Following its biggest rally since May, the S&P 500 fell as investors are currently responding to the U.S. July ISM services index, which fell 1.2 points to 50.1 versus a consensus of 51.5, suggesting higher inflation and lower unemployment. Chipmakers are leading losses after President Donald Trump said while being interviewed on CNBC that separate tariff announcements are coming within the next week or so on semiconductor chips and pharmaceuticals.

Looking to commodities, gold inched higher again amid further market volatility, while energy shares have joined a slide in oil prices.

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. 

1. STOCK NEWS:

• Palantir (PLTR) provided a “beat and raise” report for Q2
• Caterpillar (CAT) reported mixed Q2 results but increased its FY25 revenue outlook
• Pfizer (PFE) also provided a “beat and raise” report for Q2, with CEO Albert Bourla saying the company is in “productive” talks with the U.S. government
• Zoetis (ZTS) reported upbeat Q2 results and raised its FY25 earnings and revenue outlook
• Yum! Brands (YUM) reported downbeat Q2 earnings and revenue

2. WALL STREET CALLS:

• Citi upgrades Wayfair (W) with tariff impact less than expected
• Block (XYZ) downgraded at Morgan Stanley on valuation
• Akamai (AKAM) assumed with Underweight from Equal Weight at Morgan Stanley
• Inspire Medical (INSP) downgraded at KeyBanc, JPMorgan and Truist after significant cut to 2025 guidance
• Stifel starts “pioneering” quantum computing company’ D-Wave Quantum (QBTS) with a Buy

3. AROUND THE WEB:

• This fall, credit scores are set to begin incorporating “buy now, pay later,” BNPL, loans, but Klarna (KLAR) recently said it won’t share data about the bulk of its loans until it gets assurances its customers won’t be unfairly penalized for using its payment options, WSJ says
• After detecting unauthorized activities during a routine monitoring, TSMC (TSM) launched legal proceedings and took disciplinary action against employees involved in potential trade secret leaks, Reuters reports
• Tractor Supply (TSCO) is expanding its final-mile delivery to grow digital and business-to-business sales, hiring drivers and renting vehicles, WSJ says
• Rivian (RIVN) is suing Ohio’s department of motor vehicles, calling the state’s recent ban on car makers bypassing dealerships to sell vehicles directly to consumers “irrational in the extreme,” contending that it harms competition and limits consumer choice, The Verge reports
• Amazon (AMZN) is denying that it is shuttering podcast studio Wondery after Bloomberg reported that the e-commerce giant was shutting it down and slashing 110 jobs, TechCrunch says

4. MOVERS:

• Staar Surgical (STAA) increase after announcing it will be acquired by Alcon (ALC) for $28 per share in cash
• Y-mAbs (YMAB) gains after announcing it will be acquired by SERB for $8.60 per share in cash
• Xometry (XMTR) and Lemonade (LMND) rise after reporting quarterly results
• Ichor Holdings (ICHR) lower after reporting Q2 results and announcing the transition of its CEO
• Gartner (IT) and Semrush (SEMR) fall after reporting quarterly results

5. EARNINGS/GUIDANCE:

• Molson Coors (TAP) reported Q2 results and provided guidance for Q2, with CEO Gavin Hattersley commenting, “We continue to believe in Molson Coors’ ability to achieve its long-term growth objectives”
• Leidos (LDOS) reported Q2 results and raised its guidance for FY25
• LCI Industries (LCII) reported Q2 results, with EPS and revenue beating consensus
• Portillo’s (PTLO) reported Q2 results and lowered its guidance for FY25
• Fox Corp. (FOX) reported Q4 results, with CEO Lachlan Murdoch commenting, “Fiscal 2025 was another outstanding year for FOX”

INDEXES:

Near midday, the Dow was down 0.28%, or 124.08, to 44,049.56, the Nasdaq was down 0.69%, or 138.85, to 20,914.73, and the S&P 500 was down 0.55%, or 34.87, to 6,295.07.