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The Mid-Day Buzz

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Sophia Reyes · August 19, 2025 12:26 PM

August 19th, 2025

Markets open flat as investors await catalysts…

U.S. equity markets started the day quietly, trading flat in early hours with little economic data or corporate news to guide sentiment. The S&P 500 and Nasdaq slipped slightly at the open but remained near record levels, while the Dow Jones Industrial Average is holding up a bit better. This follows a generally positive session in Europe, where optimism over potential progress toward a Russia-Ukraine peace deal provided support.

The Dow Jones Industrial Average (^DJI) was just below the flat line, while the S&P 500 (^GSPC) fell about 0.6%. The tech-heavy Nasdaq Composite (^IXIC) declined over 1.4%, continuing a muted start to the week for the major gauges. A nearly 6% decline in Palantir (PLTR) and a more than 4% drop for AMD (AMD) led the losses in tech.

Investors are turning to the retail sector this week for insights into consumer health. Home Depot kicked things off this morning, reporting comparable sales growth of just 1% in the second quarter—below expectations and continuing a slowdown seen in recent years.

Economic Takeaways:

  • In fixed income, U.S. Treasuries are rallying across the curve, with 10-year yields down 2 basis points, while softer Canadian inflation data spurred a sharper rally in Canadian government bonds.
  • The U.S. dollar is steady against a basket of major currencies.
  • WTI crude is modestly lower as investors weigh the implications of any potential peace agreement on Russian oil sanctions.
  • In Canada, July CPI came in softer than expected, especially on the Bank of Canada’s trimmed mean measure, which strips out volatile components. That has bolstered market bets for a potential September rate cut, though investors remain divided, with odds of a 25-basis-point move sitting around 40%.
  • Major retailers reporting this week have direct exposure to wholesale costs and could offer valuable insight into recent price pressures. The focus comes after last Thursday’s unexpected 0.9% jump in July’s Producer Price Index, well above the 0.2% increase economists had forecasted.
  • Housing starts rose 5.2% in July to an annualized 1.428 million units, above consensus, but building permits fell 2.8% to 1.354 million—the fourth consecutive monthly decline, marking the longest losing streak since 2008.
  • Fed policy expectations shifted modestly: the CME FedWatch Tool now shows an 83% probability of a September rate cut, down from 98% last week, with 17% odds the Fed holds steady.
  • President Trump pushed for renewed Ukraine negotiations, reportedly urging Russian President Vladimir Putin to meet with Volodymyr Zelensky. European leaders expressed support for Zelensky during his meeting with Trump on Monday, while markets paused amid uncertainty over Ukraine’s future.

SoftBank’s $2B stake sends Intel shares soaring

Intel jumped more than 9% on Tuesday after SoftBank announced a $2 billion investment, boosting confidence in the chipmaker’s turnaround. The deal follows a volatile week of speculation over potential U.S. government involvement, which had whipsawed the stock.

Intel is still contending with market share losses to AMD and Nvidia, but investors cheered SoftBank’s backing as the company pushes its foundry ambitions and advanced 18A chip technology.

On the Move

  • Palo Alto Networks (PANW) jumped more than 6% pre-market after topping earnings and revenue estimates and issuing stronger-than-expected guidance for both the quarter and fiscal year. Revenue grew 16% year over year, and the upbeat results may provide a lift to peers in cybersecurity and the broader tech sector.
  • Home Depot (HD) edged higher despite missing on both earnings and revenue for the first time since 2014. Investors appeared reassured by the company’s reaffirmed guidance. Management highlighted a shift toward smaller home-improvement projects as high interest rates keep homeowners cautious about larger undertakings. U.S. same-store sales rose 1.4% from a year earlier.
  • Tether, the world’s largest stablecoin company, has appointed former White House cryptocurrency adviser Bo Hines.
  • Opendoor Technologies (OPEN) shares jumped 6% at Tuesday’s market open but later trimmed some of those gains as the company continues its search for a new CEO following Carrie Wheeler’s exit.
  • NorthWestern Energy shares jumped nearly 6% Tuesday after announcing that it is merging with fellow utility company Black Hills to create a “premier regional regulated electric and natural gas utility company.”
  • Medtronic (MDT) slid 3.5% despite beating expectations and raising guidance. Shares had been on a strong rally, suggesting today’s move reflects “buy the rumor, sell the news” dynamics.
  • Best Buy (BBY) gained 3% after launching its digital marketplace, which more than doubled its available product assortment.
  • Intel (INTC) fell 3.4% Monday after reports the Trump administration could convert Chips Act grants into an equity stake, potentially diluting earnings. However, shares rebounded over 5% this morning following news of a $2 billion investment from SoftBank.
  • Meta Platforms (META) dropped more than 2% yesterday after the Texas attorney general opened an investigation into alleged deceptive AI-driven mental health services for children.
  • Nexstar Media Group (NXST) is poised to strengthen its hold on U.S. broadcasting through a $6.2 billion acquisition of Tegna Inc. (TGNA), forming the country’s largest local television station network.
  • Caterpillar (CAT) rose 1.8% after Evercore ISI upgraded the stock to Outperform, citing strong construction equipment margins and volume leverage.
  • First Solar (FSLR) surged nearly 9%, leading gains in solar and wind stocks after the Treasury Department’s tax credit rules provided a lengthy window for renewable projects to qualify ahead of potential policy changes.
  • Viking Therapeutics (VKTX) shares plunged 35% in premarket trading following the release of Phase 2 trial results for its weight-loss drug, which revealed a notably high patient dropout rate.
  • Toll Brothers (TOL) inched up 0.5% ahead of its earnings release this afternoon. Competitor D.R. Horton (DHI) recently delivered a strong beat, and Toll Brothers—last quarter’s outperformer—remains a bellwether for affluent homebuyer demand.
  • Medtronic (MDT) shares dropped 3% in premarket trading after the company announced plans to expand its board with two new independent directors. The new appointees, seasoned med-tech executives John Groetelaars and Bill Jellison, join amid activist investor Elliott Investment Management emerging as one of Medtronic’s largest shareholders.

What’s Ahead

Earnings tomorrow include Target (TGT) and Lowe’s (LOW) while Walmart (WMT) is on Thursday.

With a quiet U.S. data calendar, Thursday’s S&P Flash PMI surveys for August will be the highlight ahead of Fed Chair Jerome Powell’s speech at Jackson Hole on Friday.

Disclaimer

The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. All stock data and market trends discussed are current as of the time of publication and are subject to change. Always conduct your own research or consult a licensed financial advisor before making any investment decisions. The author and publisher are not responsible for any losses incurred based on the information presented.

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