The Mid-Day Buzz

Sophia Reyes · August 8, 2025 12:35 PM

August 8^th, 2025

Markets Edge Higher in Quiet Session

Global equities opened on a positive note this morning, following overnight gains in the Euro Stoxx 50 and Nikkei, as well as strength in emerging-market stocks.

Earnings remain broadly upbeat—particularly in AI-related names—though tariff concerns continue to cloud the macro-outlook. In Canada, stocks climbed despite a sharp drop in July employment.

Economic Takeaways:

• The jobless rate fell to 6.9% from 7%, but mainly due to weaker labor force participation. U.S. Treasury yields extended their recent climb, with the 10-year at 4.28%, still near the low end of its three-month range.
• Yields on the 10-year note recently fell to one-month lows near 4.2%.
• The Canadian dollar weakened after the labor report.
• WTI crude was little changed, and gold prices rose on news of reciprocal tariffs on gold bar imports announced by President Trump.
• President Trump plans to nominate Council of Economic Advisors Chairman Miran to complete the term of departing Fed Governor Kugler.
• With the Senate in recess until early September, confirmation before the late-September FOMC meeting is uncertain. If approved in time, Miran would likely back a September rate cut, in line with Fed Governors Waller and Bowman.
• Markets are pricing in a 90%+ chance of a 25 bps cut next month and at least one more reduction this year.
• The S&P 500’s 20-day moving average, now at 6,318, has held as support this week. The all-time high close of 6,389 remains resistance after yesterday’s brief test and selloff.
• Fed rate cut odds for next month stand near 90%, per CME FedWatch.

Intel CEO Pushes Back After Trump Calls for Resignation

Intel CEO Lip-Bu Tan defended his record Friday after President Donald Trump publicly urged him to step down, citing potential conflicts of interest. In a Truth Social post Thursday, Trump wrote: “The CEO of Intel is highly CONFLICTED and must resign, immediately.”

The remarks followed a letter from Sen. Tom Cotton to Intel Chairman Frank Yeary questioning Tan’s past investments and ties to semiconductor firms allegedly linked to the Chinese Communist Party and People’s Liberation Army. Cotton asked whether Tan had divested those holdings to eliminate conflicts, but it remained unclear Thursday if divestment had occurred.

Tan, who became CEO in March, told employees there was “misinformation” regarding his prior roles at Walden International and Cadence Design Systems, and insisted he has “always operated within the highest legal and ethical standards.” Intel issued its own statement emphasizing its commitment to U.S. national and economic security and alignment with the administration’s “America First” agenda.

Tan added that Intel is engaging with the Trump administration to address the matter: “I fully share the President’s commitment to advancing U.S. national and economic security… and I’m proud to lead a company central to these goals.” Intel shares edged higher in premarket trading Friday

On the Move

• Expedia (EXPE) surged nearly 16% early Friday after raising its 2025 gross bookings growth outlook and citing stronger travel demand, particularly in the U.S., per Reuters. Block (XYZ) jumped over 8% in pre-market trading despite weaker-than-expected quarterly results, as investors welcomed an upgraded forecast. Monster Beverage (MNST) gained nearly 8% after reporting a robust quarter driven by increased energy drink sales.
• Wendy’s (WEN) slipped almost 1%—earnings beat expectations, but guidance disappointed. Under Armour (UAA) plunged 17% despite meeting analyst estimates, as the company warned of lower revenue and operating income this quarter, citing tariff impacts. Gilead Sciences (GILD) rose 4.7% after strong earnings, boosted by steady HIV treatment demand, and raised guidance.
• The Trade Desk (TTD) fell more than 31% on CFO departure news and tariff-related ad demand concerns, even as earnings topped forecasts. Pinterest (PINS) tumbled nearly 12% on an earnings miss. Take-Two Interactive (TTWO) climbed almost 6% after beating earnings expectations.
• Shares of lululemon (LULU), Nike (NKE), Toyota (TM), Caterpillar (CAT), Deere (DE), Walmart (WMT), Best Buy (BBY), and Honeywell (HON) closed lower Thursday as new tariffs took effect. The Budget Lab at Yale estimates U.S. consumers now face an average effective tariff rate of 18.6%, the highest since 1933.
• Salesforce (CRM) fell over 3% after weakness in software names, led by Fortinet (FTNT), which warned of a smaller-than-expected product refresh cycle. The pullback in Salesforce and Caterpillar drove steeper Dow losses relative to other indexes. Eli Lilly (LLY) dropped over 14%—its worst day in 25 years—after obesity pill trial data underwhelmed investors despite strong earnings and guidance. AppLovin (APP) spiked 12% on strong results and outlook.

What’s Ahead

With few major data releases this week, attention turns to next week’s July CPI and PPI reports, which will gauge tariff impacts on inflation. Bloomberg consensus sees core CPI rising 0.3% month-over-month, a modest uptick pointing to gradual price increases.

Later in the week, retail sales data will offer insight into consumer resilience amid slower hiring and signs of inflation picking up.