The U.S. stock market stumbled into August, with the Nasdaq and S&P 500 recording their sharpest weekly declines since May, and the Dow seeing its worst weekly drop since early April. For both the Nasdaq and S&P 500, it was their first dip below the 21-day exponential moving average since spring—a potential signal of weakening momentum. As the summer trading lull begins, this week’s earnings and events could help determine whether the broader rally can regain steam.
A wide range of companies will report this week, including Caterpillar (CAT), Palantir Technologies (PLTR), Axon Enterprise (AXON), and Eli Lilly (LLY). On the event side, all eyes in cybersecurity will turn to Las Vegas, where the annual Black Hat conference runs through August 7.
Resilient Stocks: Mild Pullbacks, Key Support Holds
While major indexes took a hit last week—particularly on Friday—several individual names held up relatively well and remain close to potential breakout levels. These include Elbit Systems (ESLT), a defense company based in Israel; Rollins (ROL), a pest control firm; tech giant Alphabet (GOOGL); gold producer Agnico Eagle Mines (AEM); and asset management firm Blackstone (BX).
Elbit ended the week on a strong note, just under a buy point, while the others saw modest dips. Encouragingly, all of them maintained levels above their 21-day exponential moving averages, a sign that institutional support may still be intact.
Economic Outlook: Jobs, Trade, and Productivity in Focus
The upcoming week features key economic data that may clarify the labor market outlook. The ISM services index, due Tuesday, is projected to climb to 52.2 from June’s 50.8—an indication of slightly faster growth. Also on Tuesday, the Bureau of Economic Analysis will update the June trade balance, adding service-sector data to the preliminary $86 billion goods deficit.
Sluggish hiring in Q2 could translate into a sharp increase in worker productivity, which the Bureau of Labor Statistics will report Thursday. Analysts are also watching for how recent tariff shifts might have artificially boosted GDP via trade and inventory distortions.
Semiconductors: All Eyes on AMD’s 27% Revenue Growth
Advanced Micro Devices (AMD) will report its fiscal Q2 results after Tuesday’s close. Analysts expect sales to jump 27% year over year to $7.42 billion, even as earnings per share are projected to decline 30% to $0.48.
Wall Street will be focused on AMD’s data center division, which includes Epyc server processors and Instinct AI chips. Meanwhile, PC chip demand could get a lift from accelerated orders tied to tariffs, as well as market share gains at Intel’s expense. Other chipmakers reporting include Astera Labs (ALAB), Macom Technology Solutions (MTSI), and SiTime (SITM).
Blue Chip Earnings: Caterpillar Heads Key Dow Reports
Only a handful of Dow stocks have yet to report, and this week features four more: Caterpillar, Amgen (AMGN), Disney (DIS), and McDonald’s (MCD). Caterpillar is trading close to all-time highs, while Disney saw technical damage last week, falling below its 10-week support line. Among the group, only McDonald’s is forecast to post growth in both revenue and profits. Nvidia (NVDA) won’t report until later this month on August 27.
AI Standout: Palantir Eyes New Growth Channels
Palantir Technologies is set to report Monday after the close, and expectations are sky-high. With the stock up around 110% this year, it’s 2025’s top performer on the S&P 500—continuing its leadership streak from 2024. Analysts are looking for 54% earnings growth and a 38% increase in revenue.
Investors will also be listening for updates on U.S. government spending, including the “Golden Dome” space defense initiative. Palantir is positioning itself to expand into new industries—especially health care and financial services—through its use of generative AI.
Pharma Earnings: All Eyes on Eli Lilly
Several major pharmaceutical companies and biotechs are scheduled to release earnings this week. Tuesday features Pfizer (PFE), Amgen, and Bayer (BAYRY), while Thursday brings reports from Eli Lilly, Gilead Sciences (GILD), and Ligand Pharmaceuticals (LGND).
Of the group, the biotechs are showing stronger technical setups. Ligand recently broke out, and Gilead is hovering near a key buy point. But Eli Lilly remains the standout: analysts expect the company to post a 43% rise in earnings and a 30% boost in revenue—some of the strongest growth among large-cap pharma names.
Cybersecurity Watch: Black Hat Conference Kicks Off
Cybersecurity will take center stage this week thanks to the Black Hat conference in Las Vegas. Fresh off Palo Alto Networks’ (PANW) $25 billion acquisition of CyberArk (CYBR), investors are watching to see whether industry consolidation continues—and how it affects smaller players.
Earnings are also on tap for key names in the sector. Qualys (QLYS) is expected to post a slight earnings dip of 2% to $1.48 per share, with an 8% gain in revenue to $161.3 million. Fortinet (FTNT) reports Wednesday, with analysts projecting 4% earnings growth to $0.59 per share and a 13% revenue increase to $1.625 billion.
More Key Earnings to Watch
- Axon Enterprise (AXON): The law enforcement tech company will report Monday evening. Analysts anticipate slower growth, though interest is rising in the firm’s drone and surveillance offerings. Shares are currently building a bullish base-on-base pattern.
- MercadoLibre (MELI): Also reporting Monday, the Latin American e-commerce powerhouse is expected to post a 14% earnings increase to $11.93 per share, with revenue up 32% to $6.68 billion. Shares are up 40% year to date.
- Wayfair (W): Despite a 50% stock gain this year, the online furniture retailer is expected to report a 30% decline in Q2 earnings. Revenue is projected to be flat year over year.
- Arista Networks (ANET): The networking company, a beneficiary of cloud and AI infrastructure spending, reports Tuesday. Analysts expect Q2 EPS to rise 24%, with sales increasing 25%. The stock has rebounded over the past six weeks.
- Shopify (SHOP): The e-commerce software firm reports Wednesday. Analysts forecast EPS of $0.29, up 11% from a year ago, on revenue of $2.546 billion (up 25%). Gross merchandise volume is expected to climb 21% to $81.4 billion.
- Occidental Petroleum (OXY): Also due Wednesday, Occidental is expected to post a 72% decline in profit and a 9.4% drop in revenue. Analysts will pay close attention to production guidance in the Permian Basin after CEO Vicki Hollub warned of a possible plateau in output earlier this year.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Leave a Reply