Tech Strength Carries Market to Record Highs

Market Snapshot

• S&P 500: 6,501.86 ▲ +0.3% — second consecutive record close
• Nasdaq Composite: 21,705.16 ▲ +0.5% — near all-time highs
• Dow Jones Industrial Average: 45,636.90 ▲ +0.2% — record close

Sector Leaders & Laggards

• Leaders: Technology and Communication Services led the way, boosted by strong performances from Broadcom, Oracle, and Alphabet.
• Laggards: Retail and food stocks lagged. Best Buy fell 3.9%, Urban Outfitters slipped 8.8%, and Hormel Foods tumbled 12.7% on weak earnings.

Top Movers (>5%)

• PSTG (Pure Storage): 80.54 ▲ +32.3% — surged on strong quarterly results and optimism around large AI-related orders.
• SNOW (Snowflake): 241.00 ▲ +20.3% — spiked after beating expectations and raising full-year guidance.
• BURL (Burlington Stores): 244.37 ▲ +9.0% — rallied on upbeat results and technical breakout.
• ELF (e.l.f. Beauty): 256.92 ▲ +8.6% — extended gains with continued momentum in cosmetics demand.
• LITE (Lumentum): 56.21 ▲ +6.4% — advanced further on strong earnings momentum.

Notable Decliners

• COO (Cooper Companies): 72.15 ▼ −13.0% — slid on lowered guidance.
• HRL (Hormel Foods): 29.77 ▼ −12.7% — disappointed with weak results and reduced outlook.

Analyst Upgrades & Downgrades

• Upgrades:
  • NVDA: JPMorgan reiterated Buy, raised PT to $215
  • FIVE: Upgraded to Outperform (Telsey), PT $170
  • GPRE: Upgraded to Outperform (Oppenheimer), PT $14
  • RMBS: Upgraded to Buy (Arete), PT $91
  • WYNN: Upgraded to Buy (UBS), PT $147
  • IP: Upgraded to Buy (BofA), PT $57
  • SLGN: Upgraded to Buy (BofA), PT $57
  • LMT: Upgraded to Overweight (Alembic Global)
  • VG: Upgraded to Buy (Deutsche Bank), PT $17
• Downgrades:
  • BILL: Cut to Neutral (Piper Sandler), PT $50
  • COO: Cut to Neutral (Citi), PT $72
  • LI: Cut to Neutral (BofA), PT $26
  • OTLK: Cut to Neutral (Guggenheim)

Key Earnings Highlights

• NVDA: Reported strong results but flagged slower AI chip demand and uncertainty in China; announced $60B buyback. Stock dipped modestly after the news.
• SNOW and PSTG: Delivered standout beats, driving their sharp gains.
• BURL and ELF: Surged on strong momentum in retail and consumer discretionary.
• HRL and URBN: Fell sharply on weak earnings and cautious outlooks.

Macro & Fed Headlines

• GDP: Q2 revised up to 3.3%, highlighting stronger-than-expected growth.
• Labor Market: Jobless claims fell, reinforcing economic resilience.
• Fed Policy: Markets now price an ~85% chance of a September rate cut.
• Volatility: VIX remains near 2025 lows, raising concern of investor complacency.
• Trade Policy: U.S. tariffs on India fueled global market unease.
• Politics: Central bank independence remains in the spotlight, with Trump-Fed tensions and commentary from UK’s Liz Truss adding to debate.

📌 Summary:
The S&P 500 and Dow closed at record highs as tech strength carried the market. Pure Storage and Snowflake stole the show with massive earnings-driven rallies, while Hormel and Cooper tumbled on poor results. Analysts were broadly bullish, with multiple upgrades across sectors. Macro data painted a resilient economy, boosting expectations for a Fed rate cut in September.