Macro Events & News
The S&P 500 and Nasdaq reached new record highs during the week, driven by strong early earnings results and renewed optimism around key sectors. Financials helped lead the charge, as major institutions—including JPMorgan Chase (NYSE:JPM), Citigroup (NYSE:C), BlackRock (NYSE:BLK), Goldman Sachs (NYSE:GS), Bank of America (NYSE:BAC), Morgan Stanley (NYSE:MS), American Express (NYSE:AXP), and Charles Schwab (NYSE:SCHW)—kicked off the latest earnings season. Most of these names exceeded analyst expectations, boosted in part by a rebound in investment banking activity and stable credit quality.
In the tech space, TSMC (NYSE:TSM) reported better-than-expected results, showcasing continued strength in the semiconductor sector and surging demand for AI-related chips. Meanwhile, Elevance Health (NYSE:ELV) delivered disappointing results, reinforcing ongoing weakness in the healthcare insurance space, where rising costs tied to Affordable Care Act (ACA) programs continue to pressure margins.
On the macro front, June inflation data presented a mixed picture. The Consumer Price Index (CPI) rose 2.7% year-over-year—inline with expectations—but suggested some upward pressure on prices, possibly reflecting the early effects of tariffs. On the producer side, the Producer Price Index (PPI) came in softer than expected, easing inflation concerns slightly. Retail Sales for June rose 0.6%, rebounding from a weak May and signaling resilient consumer demand.
Trade developments were limited this week. Indonesia reached an agreement that will impose a 19% tariff on U.S.-bound exports. However, as the August 1 tariff deadline nears, the overall lack of broader resolution is notable. Market sentiment remains anchored in the assumption that the Trump administration will again delay or walk back implementation, consistent with past behavior.
The 10-year Treasury yield dipped slightly to 4.42% but the 30-year Treasury yield did pop above 5% on Tuesday. The VIX was relatively flat for the week, closing at 16.41.
All the major indexes were mixed for the week: the Dow down < 1%, the S&P 500 gained < 1%, and the Nasdaq gained 1.5%.
Watchlist News
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Apple Inc (NASDAQ:AAPL) traded in a narrow range throughout the week and closed essentially flat, holding steady near last week’s levels. JPMorgan’s equity research division raised its price target to $250, offering some support to the stock amid muted price action.
august bear notes
After breaking through the $200 level following a prolonged consolidation, Apple now appears to be entering another period of stagnation. With little in the way of near-term product news or innovation breakthroughs, investor enthusiasm seems to have cooled unless a new growth narrative emerges. That said, pressure is building on Tim Cook to pursue something more transformative so a catalyst may be around the corner. With over $150 billion in cash, Apple has the resources to make a bold move—whether through M&A, AI investment, or a major product pivot.
1% ▲
Baidu Inc (NASDAQ:BIDU) surged on Monday following news of a partnership with Uber to integrate Baidu’s robotaxi technology into Uber’s platform outside of China. However, the initial gains were erased later in the week as several equity research firms—Nomura, Jefferies, and Barclays—trimmed their price targets, citing continued concerns around the core advertising business. A broader selloff in Chinese ADRs added further pressure, although Citigroup raised its target to $140, bucking the trend.
august bear notes
The Uber-Baidu partnership supports the bullish narrative for both companies. For Uber, it strengthens the platform’s long-term viability without requiring capital-intensive R&D for its own robotaxi fleet. For Baidu, it signals validation of its autonomous driving capabilities on a global stage. While the price target downgrades are worth noting, they primarily reflect lingering concerns about Baidu’s ad business—issues that were already flagged in the May earnings report. At the same time, Baidu’s strong performance in cloud and its growing autonomous vehicle segment continue to offer upside potential, even if sentiment on Chinese tech remains fragile.
6% ▲
The Trade Desk (NASDAQ:TTD) jumped this week after S&P Global announced the company will be added to the S&P 500 index. Shares briefly surged to $87 on the news but gave back some gains as the week progressed, still closing higher on a week-over-week basis.
august bear notes
The off-cycle inclusion into the S&P 500 came as a surprise, though The Trade Desk had been a likely candidate given its market cap and industry position. However the traditional metrics like P/E and PEG were not favorable and likely led to profit-taking as existing holders used the spike to exit. The long-term story remains intact: The Trade Desk is founder-led, well-positioned in the adtech ecosystem, and continues to innovate. However, critical questions persist, particularly around whether the open internet model can scale against the dominance of walled gardens.
6% ▼
UnitedHealth Group Inc (NYSE:UHC) traded relatively flat for most of the week, holding near the $290–$300 support range. However, the stock eventually broke below that level following the earnings report from Elevance Health. As the first major healthcare insurer to report, Elevance’s results revealed continued margin pressure tied to rising costs under ACA and Medicare programs—a trend that triggered a broad selloff across the managed care sector.
august bear notes
Commentary ahead of the week had pointed to Elevance Health as the likely bellwether for managed care names, and its results confirmed industry-wide cost pressures. While this weighed on the share price, the margin headwinds were not a surprise—UnitedHealth had flagged them in its prior earnings call. As such, much of the weakness appears to have already been priced in before the recent move. That said, caution is warranted. UnitedHealth reports earnings July 29, and with the ongoing DOJ probe still hanging over the stock, near-term upside remains uncertain.
