Thursday, August 7, 2025
Markets fell from their opening bell levels in the green across the board, and stayed down until a late surge brought indexes off their lows, and Nasdaq was able to eke out a positive day. The Dow, which swung nearly 700 points on the session, wound up -224 points, -0.51%. The S&P 500 finished narrowly in the red, -0.08%, and the Nasdaq was +73 points, +0.35%. The small-cap Russell 2000 was -0.30% on the day.
Tariff issues for Caterpillar CAT and a disappointing phase 3 on an obesity pill from Eli Lilly LLY helped the blue-chip Dow find its way down half a point today. Otherwise, aside from a bevy of Q2 earnings and economic results — Weekly Jobless Claims and Productivity/Labor Costs — this morning, today’s stock market wasn’t so much rattled by news as it was quieted by some profit taking and lingering doubts about various outlooks.
Jobless Claims were still civil overall, and Productivity in Q2 was quite good, actually, even if Unit Labor Costs were also going up. We are seeing new tariff saber-rattling from the White House here and there, but market participants have grown accustomed to believing it when they see it regarding trade deals. Even still, booking a a few profits is not an insane idea in this particular climate.
Pinterest PINS posted a mostly decent Q2 report this afternoon — all but a dreadful miss on earnings, which isn’t really why investors buy Pinterest stock anyway. But shares are down -10% on the news, even as the company reported better-than-expected revenues of $998 million, up +17% year over year. Sales guidance for next quarter was also increased. Free Cash Flow and Average Revenue per Unit also grew impressively in the quarter.
Expedia EXPE, on the other hand is up +14% in late trading, as earnings beat by a solid dime to $4.24 per share, up +21% year to date, on $3.79 billion in revenues which outpaced the $3.71 billion in the Zacks consensus. Gross Booking guidance has been raised from 2-4% to 3-5%, although Free Cash Flow is down -29% year over year.
Software platform service Twilio TWLO bettered expectations on both top and bottom lines in its Q2 report after the close, with earnings of $1.19 per share on revenues of $1.23 billion outperforming the $1.02 per share and $1.19 billion, respectively, analysts were expecting. Current-quarter earnings growth was light of estimates, however, and shares are down -10% late.
Salad-based fast casual restaurant Sweetgreen SG is down -23% in late trading today, as misses on both top and bottom lines — -20 cents per share versus -12 cents expected on $185.6 million versus $191.5 million — have helped that stock take another leg lower. Same-store sales fell -7.6% in the quarter, and revenue guidance came in lower.
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