Research
Baird Initiates IBM at Neutral With $230 Price Target
IBM (IBM) has an average rating of overweight and mean price target of $264.10, according to analysts polled by FactSet.
$IBM
International Business Machines
$IBMNYSETechnology
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Wire
IBM's Guidance to Get Investor Scrutiny in Q2 Report, RBC Capital Markets Says
IBM's (IBM) guidance will be the subject of investor scrutiny when the company releases its Q2 financial report on Wednesday, RBC Capital Markets said in a Tuesday note.Analysts said the company's Q2 preliminary results were lower than expected, driven by multiple external factors in June that elongated sales cycles and impacted Enterprise License Agreement closures.RBC said key factors that investors will be on the lookout for in IBM's Q2 report include timing of deal delays, any closures, Red Hat growth following better-than-expected Q2 results, and macro commentary on supply chain.Analysts lowered 2026 revenue estimate to $70.3 billion, compared with a FactSet consensus estimate of $70.71 billion.RBC retained an outperform rating on the stock, but lowered its price target to $270 from $300.Price: $210.49, Change: $-2.51, Percent Change: -1.18%
$IBM
US Markets
Update: Wall Street Falls as Traders Await Earnings, Track Middle East Developments
(Updates with market moves at the end of the day.)Stocks on Wall Street ended Monday's choppy trade lower as markets awaited more earnings releases this week and kept an eye on developments in the Middle East.The Dow Jones Industrial Average fell 0.6% to 51,839.26, while the S&P 500 declined 0.2% to settle at 7,443.28. The Nasdaq Composite dipped 0.1% to 25,508.07. Most sectors were in the red, led by healthcare, while communication services saw the biggest gain.This week, 86 S&P 500 companies are scheduled to release their latest quarterly financial results, Oppenheimer Asset Management said in a note. Google parent Alphabet (GOOG, GOOGL) and electric vehicle maker Tesla (TSLA) -- which are two of the so-called Magnificent 7 stocks -- are slated to report Wednesday.Intel, Philip Morris International (PM), American Express (AXP), T-Mobile US (TMUS), IBM (IBM), AT&T (T) and Verizon Communications (VZ) are among other major names expected to report this week."The reporting calendar is shifting beyond the first wave of money-center banks toward large tech, industrial and consumer names," Tigress Financial said in a note Monday. "The narrative will increasingly focus on whether (artificial intelligence) platforms, cloud providers and key cyclicals can match the strong bank prints without sparking renewed worries about margins or demand."West Texas Intermediate crude oil was up 0.6% at $82.97 a barrel in Monday late-afternoon trade, while Brent rose 0.9% to $88.88.On Sunday, the US Central Command said it completed the ninth consecutive evening of strikes against Iran. The US confirmed the passing of at least three service members during recent fighting with Iran.President Donald Trump said Monday that "every time Iran kills an American soldier they will pay for that killing many times over."Iran could resume negotiations with the US based on national interests, CNBC reported, citing Tehran's foreign ministry spokesman Esmail Baghaei. US intermediaries had continued to exchange messages with Iran, Baghaei reportedly said."If this escalation goes unchecked, we could return to an environment of wide-scale attacks across the Persian Gulf," ING Bank said in a report Monday. "Vessel flows (in the Strait of Hormuz) have essentially ground to a halt."US Treasury yields were higher, with the 10-year rate up 5.5 basis points at 4.6% and the two-year rate rising 3.9 basis points to 4.21%.In company news, Magnolia Oil & Gas (MGY) agreed to acquire privately held WildFire Energy in a roughly $4.06 billion deal, including debt, that will give it a dominant position in the Giddings field in South Texas. Magnolia Oil shares slumped 6.4%.Gold edged down 0.2% to $4,010.30 per troy ounce, while silver advanced 0.5% to $56.62 per ounce.
Dow JonesNasdaq CompositeS&P 500$AXP$GOOG$GOOGL$IBM$MGY$PM$T$TMUS$TSLA$VZ
US Markets
Equities Mostly Rise Intraday as Chip Stocks Advance
US benchmark equity indexes were mostly higher intraday Monday as key chipmakers advanced, while traders awaited earnings of some major companies due later in the week.The Nasdaq Composite was up 0.4% at 25,633.1 after midday, while the S&P 500 rose 0.2% to 7,468.7. The Dow Jones Industrial Average fell 0.4% to 51,950.7. Most sectors were in the red, led by materials and consumer staples, while energy paced the gainers.Shares of chipmaking giant Intel (INTC) rose 3.8%, while Nvidia (NVDA), Micron Technology (MU) and Advanced Micro Devices (AMD) were also pointing higher.This week, 86 S&P 500 companies are scheduled to release their latest quarterly financial results, Oppenheimer Asset Management said in a note. Google parent Alphabet (GOOG, GOOGL) and electric vehicle maker Tesla (TSLA) -- which are two of the so-called Magnificent 7 stocks -- are slated to report Wednesday.Intel, Philip Morris International (PM), American Express (AXP), T-Mobile US (TMUS), IBM (IBM), AT&T (T) and Verizon Communications (VZ) are among other major names expected to report this week."The reporting calendar is shifting beyond the first wave of money-center banks toward large tech, industrial and consumer names," Tigress Financial said in a note Monday. "The narrative will increasingly focus on whether (artificial intelligence) platforms, cloud providers and key cyclicals can match the strong bank prints without sparking renewed worries about margins or demand."West Texas Intermediate crude oil was up 0.1% at $82.58 a barrel intraday, while Brent rose 0.5% to $88.55.Iran could resume negotiations with the US based on national interests, CNBC reported, citing Tehran's foreign ministry spokesman Esmail Baghaei. US intermediaries had continued to exchange messages with Iran, Baghaei reportedly said.Amid soaring tensions with Iran, the US is looking to send additional F-16 and F-35 fighter jets from bases in Europe, as well as additional aerial refueling tankers, to the Middle East, CNN reported, citing a US official.On Sunday, the US Central Command said it completed its ninth consecutive evening of strikes against Iran. The US military also confirmed the passing of three service members in the past few days."If this escalation goes unchecked, we could return to an environment of wide-scale attacks across the Persian Gulf," ING Bank said in a report Monday. "Vessel flows (in the Strait of Hormuz) have essentially ground to a halt."US Treasury yields were higher intraday, with the 10-year rate up 6.3 basis points at 4.6% and the two-year rate rising 5.5 basis points to 4.23%.In company news, Magnolia Oil & Gas (MGY) agreed to acquire privately held WildFire Energy in a roughly $4.06 billion deal, including debt, that will give it a dominant position in the Giddings field in South Texas. Magnolia Oil shares were down 5.7% intraday.Gold edged down 0.1% to $4,015.10 per troy ounce, while silver advanced 1.4% to $57.11 per ounce.
Dow JonesNasdaq CompositeS&P 500$AMD$AXP$GOOG$GOOGL$IBM$INTC$MGY$MU$NVDA$PM$T$TMUS$TSLA$VZ
US Markets
Early S&P 500 Results Smash Profit Growth Estimates, Oppenheimer Says
Quarterly results of an initial batch of S&P 500 companies show that earnings growth so far is tracking at more than double the expected pace, according to an Oppenheimer Asset Management report released Monday.Some 47 companies, or less than 10% of the large-cap index' constituents, have reported financial results in the current cycle, with earnings and revenue up around 52% and 16% year over year, respectively, the report showed.Ahead of the reporting season, FactSet put expected earnings growth at 23.6% from a year earlier, according to Oppenheimer."The (second-quarter) earnings season got off to a solid start last week," Oppenheimer Asset Management Chief Investment Strategist John Stoltzfus said, highlighting "outsized" results particularly among technology and financial companies.The technology sector so far led earnings growth among the 11 sectors, with results from five companies showing a nearly 243% surge in profits year over year, the report showed. The financial sector followed with a 38% increase.Technology also outshined in terms of revenue with a 67% jump so far, followed again by financials, which saw an increase of 18%.This week, 86 S&P 500 companies are scheduled to release their latest quarterly financials, according to Oppenheimer. Two of the so-called Magnificent 7 -- Alphabet (GOOG, GOOGL) and Tesla (TSLA) -- report after the markets close Wednesday.Also releasing their quarterly results this week are Intel (INTC), Philip Morris International (PM), RTX (RTX), T-Mobile US (TMUS), American Express (AXP), International Business Machines (IBM), AT&T (T), and NextEra Energy (NEE)."We continue to expect good results for S&P 500 earnings this reporting season as fundamentals remain in our view conducive to continued economic growth that should be supportive of revenue and earnings growth going forward," Stoltzfus said.Price: $356.94, Change: $+10.82, Percent Change: +3.13%
$AXP$GOOG$GOOGL$IBM$INTC$NEE$PM$RTX$T$TMUS$TSLA
US Markets
Stocks Rise Pre-Bell as Traders Await Latest Batch of Earnings, Monitor Middle East Developments
The benchmark US stock measures were pointing higher before the opening bell Monday as investors await earnings from several major companies this week and monitor developments in the Middle East.The S&P 500 and the Dow Jones Industrial Average rose 0.3% each in premarket activity, while the Nasdaq added 0.6%. The indexes finished Friday's trading session lower.Alphabet (GOOG, GOOGL) and electric vehicle manufacturer Tesla (TSLA) are scheduled to release their quarterly earnings after the markets close Wednesday. Intel (INTC), Philip Morris International (PM), American Express (AXP), T-Mobile US (TMUS), International Business Machines (IBM), AT&T (T) and Verizon Communications (VZ) are also expected to post their results this week.Shares of Domino's Pizza (DPZ) spiked 7.1% pre-bell as the pizza restaurant chain reported better-than-expected fiscal second-quarter revenue. Alibaba's (BABA) US-listed stock rebounded 3.4% after closing Friday down 2.1%.West Texas Intermediate crude oil edged down 0.8% to $81.87 a barrel before the open, while Brent slipped 0.1% to $88.05.Iran's foreign ministry spokesman Esmail Baghaei said that Tehran could resume negotiations with the US based on national interests, CNBC reported. Baghaei told reporters that US intermediaries had continued to exchange messages with Iran.The US Central Command said Sunday its forces completed their ninth consecutive evening of strikes against Iran. In a separate statement, CENTCOM confirmed the passing of three US service members, while a missing fourth member's remains were found in Jordan."Energy and refined fuel flows through the Strait of Hormuz continues to slow amid the escalating conflict between the US and Iran," Saxo Bank said in a Friday report. "The renewed disruption has interrupted the recent recovery in regional supply, reviving concerns about tighter global markets."Treasury yields were trending upwards in premarket action, with the two-year rate increasing 1.5 basis points to 4.19% and the 10-year rate gaining 2.1 basis points to 4.56%.Consumer sentiment this month hit its highest level since February amid easing price pressures at the pump, though renewed tensions in the Middle East could weigh on confidence going forward, according to a survey released Friday by the University of Michigan.Gold nudged up 0.2% to $4,026 per troy ounce, while bitcoin decreased 0.3% to $64,234.
Dow JonesNasdaq CompositeS&P 500$AXP$BABA$DPZ$GOOG$GOOGL$IBM$INTC$PM$T$TMUS$TSLA$VZ
Wire
BofA Securities Cuts IBM Price Target to $280 From $330 After 'Surprise Negative Pre-Announcement', Buy Rating Kept
IBM (IBM) has an average rating of overweight and mean price target of $290.95, according to analysts polled by FactSet.Price: $222.03, Change: $+4.98, Percent Change: +2.29%
$IBM
Sectors
Sector Update: Tech Stocks Rise Premarket Wednesday
Technology stocks were rising premarket Wednesday, with the State Street Technology Select Sector SPDR Fund (XLK) up 0.8% and the State Street SPDR S&P Semiconductor ETF (XSD) 1.4% higher.ASML Holding (ASML) stock was up more than 3% after the company reported year-over-year growth in Q2 earnings and sales and raised revenue guidance for the full-year 2026.Nokia (NOK) shares were up more than 3% after the company said it launched a commercial AI-RAN platform to boost mobile network capacity and efficiency using artificial intelligence.IBM (IBM) launched an artificial intelligence agent to continuously monitor systems and autonomously resolve issues alongside a compact Power server and development software to help businesses automate operations and build applications. IBM shares were up more than 1% pre-bell.
$ASML$IBM$NOK$XLK$XSD
Research
Oppenheimer Downgrades IBM to Market Perform From Outperform
IBM (IBM) has an average rating of overweight and mean price target of $290.95, according to analysts polled by FactSet.
$IBM
Asia Markets
Update: US Equity Indexes Rise as Cooling Inflation Eases Interest-Rate Pressure on Tech While IBM Sell-Off Restrains Dow
(Updates with index/price moves, macroeconomic data, and geopolitical news from the first paragraph.)US equity indexes closed higher on Tuesday after the steepest slide in inflation in more than six years helped lift the Nasdaq Composite and the S&P 500, while a sharp sell-off in IBM (IBM) anchored the Dow Jones Industrial Average.The tech-heavy Nasdaq advanced 0.9% to 26,107.01, and the S&P 500 climbed 0.4% to 7,543.59. The Dow Jones Industrial Average rose by less than 0.1% to 52,508.27.Interest-rate-sensitive sectors, technology and communication services, led gainers in a broad-based rally. Healthcare was the worst performer. IBM sank 25%, the most on the Dow and the S&P 500, after Q2 guidance missed expectations.Looking at gains from the top 20 companies with market capitalizations exceeding $200 billion, half were from the semiconductor industry, according to data compiled by Finviz. The top gainer was SK Hynix, up 27%, following its Nasdaq debut last Friday.The consumer price index fell 0.4% month-over-month in June, the steepest drop since April 2020, compared with forecasts for a 0.1% drop in a Bloomberg-compiled survey and a 0.5% gain in May, according to the Bureau of Labor Statistics. Core CPI, which excludes food and energy prices, held steady, compared with the 0.2% growth estimate, in line with May's growth.The year-over-year rates for overall and core CPI slowed to 3.5% and 2.6%, respectively, from 4.2% and 2.9%. Core services, excluding housing, also known as the super core, saw the biggest sequential slide since May 2020, a Jefferies note said.The probability of the Federal Reserve leaving its policy unchanged in July soared to 83% from 58% a day ago, according to the CME FedWatch tool. The likelihood of the pause continuing over September, October, and December surged.Meanwhile, President Donald Trump withdrew his proposal to charge a 20% toll on cargo transiting the Strait of Hormuz, according to his social media post on Tuesday. "Based on highly productive conversations with Middle East leadership, I have decided to replace the 20% United States Reimbursement Fee with Trade and Investment Deals that the various Gulf States will be making into the United States."US Central Command will restart its naval blockade of Iranian ports at 4 p.m. ET on Tuesday.Front-month global benchmark North Sea Brent rose 2.2% to $85.09 a barrel, and US West Texas Intermediate was up 1.9% to $79.59 a barrel, albeit both crude types were off session highs."Resumption of tension in the Strait of Hormuz risks a reversal, but this month's [inflation] data is a step in the right direction for the Fed," Jefferies Chief US Economist said in a note.US Treasury yields fell, with the 10-year down 3.7 basis points to 4.58% and the two-year lower 7.4 basis points to 4.19%.Taking into account the weighting differences between the CPI and personal consumption expenditures baskets, the headline PCE, which is due out in a couple of weeks, is tracking a 0.3% decline month-over-month, according to a Scotiabank note. Core PCE is tracking similarly to the flat core CPI reading.
Dow JonesNasdaq CompositeS&P 500$IBM
US Markets
Update: Equities Rise Following CPI Data, Big Bank Earnings
(Updates with market moves at the end of the day.)US stocks advanced Tuesday as investors cheered cooler-than-expected consumer inflation data and digested big banks' earnings reports.The Nasdaq Composite closed 0.9% higher at 26,107, while the S&P 500 rose 0.4% to 7,543.6. The Dow Jones Industrial Average settled just above the flatline at 52,508.3. Among sectors, technology paced the gainers, while healthcare saw the biggest drop.The US consumer price index declined 0.4% in June, its first monthly drop since May 2020 and the largest decline since April 2020, amid lower energy costs, official data showed. The consensus in a Bloomberg-compiled survey was for the index to move down by 0.1%.Annually, inflation cooled to 3.5% last month from May's 4.2%, compared with expectations for a 3.8% print."Investors and the Federal Reserve will breathe a sigh of relief at the size of the improvement in the inflation numbers last month, likely keeping an imminent rate hike off the table later this month," BMO said in a note.There's now an 83% likelihood that the Fed will keep its monetary policy unchanged at its July meeting, up from 58% Monday, according to the CME FedWatch tool. The odds of a 25-basis-point rate increase slid to 17% from 42%.US Treasury yields were lower intraday, with the two-year rate down 7.4 basis points at 4.19% and the 10-year rate falling 2.5 basis points to 4.59%.In corporate news, Goldman Sachs (GS), JPMorgan Chase (JPM), Wells Fargo (WFC), Bank of America (BAC) and Citigroup (C) all posted strong second-quarter results Tuesday.Goldman shares jumped 9%, the best performer on the Dow and the second-top gainer on the S&P 500. JPMorgan and Bank of America also advanced, while Citigroup and Wells Fargo fell.IBM (IBM) shares slumped 25%, the worst performer on the S&P 500 and the Dow. The computer and software company's preliminary second-quarter results fell short of Wall Street's expectations, with Chief Executive Arvind Krishna calling the performance "disappointing."West Texas Intermediate crude oil was up 1.9% at $79.65 a barrel in Tuesday late-afternoon trade, while Brent rose 2.3% to $85.22.US President Donald Trump said Tuesday he would no longer demand a 20% "reimbursement fee" from ships passing through the Strait of Hormuz. In a social media post, Trump said he has "decided to replace" the fee with "trade and investment deals" with Gulf countries.Amid renewed tensions in the Middle East, Trump said a "full blockade" will be enforced on all ships coming to and from Iranian ports.Fed Chair Kevin Warsh vowed to curb high inflation straining American consumers and companies, affirming the central bank's commitment to restore price stability.Monetary policymakers "have no tolerance for persistently elevated inflation," Warsh said while speaking before a US House of Representatives committee. "If we get policy right -- and we will -- the inflation surge of the last five years will be a thing of the past."Gold was up 1.4% at $4,061.60 per troy ounce, while silver gained 2% to $59.15 per ounce.
Dow JonesNasdaq CompositeS&P 500$BAC$C$GS$IBM$JPM$WFC
Japan
US Equity Markets End Higher on Cooling Inflation, Trump's Strait of Hormuz Toll Reversal
US equity indexes closed higher Tuesday after the June inflation rate fell and President Donald Trump withdrew plans to impose a toll on vessels transiting the Strait of Hormuz as a US reimbursement fee.* The US seasonally adjusted consumer price index in June fell 0.4% from a month earlier, compared with expectations for a 0.1% decrease in a Bloomberg survey and following a 0.5% increase in May, government data showed.* August West Texas Intermediate crude oil rose $1.54 to settle at $79.68 per barrel, while September Brent crude, the global benchmark, was last seen up $1.92 at $85.22.* Goldman Sachs (GS) shares rose 9.1%, the second-biggest gain on the S&P 500, after Q2 results beat analysts' estimates.* IBM (IBM) shares tumbled 25%, the largest drop on the S&P, after preliminary Q2 results fell short of market expectations, with CEO Arvind Krishna calling the performance "disappointing."
Dow JonesNasdaq CompositeS&P 500$GS$IBM
Japan
Update: US Equity Indexes Mixed as IBM Sell-Off Hits Dow, Cooling Inflation Eases Interest-Rate Pressure
(Updates with index/price moves and geopolitical news from the first paragraph.)US equity indexes traded mixed as a sell-off in IBM (IBM) shares restrained the Dow Jones Industrial Average, while the Nasdaq Composite and the S&P 500 rose after the steepest drop in inflation in more than six years sent government bond yields sharply lower.The tech-heavy Nasdaq advanced 1.1% to 26,146.1, with the S&P 500 up 0.5% to 7,550.2 ahead of Tuesday's close. The Dow Jones Industrial Average bucked the trend, trading steady at 52,547.8.Interest-rate sensitive sectors, technology, and communication services, led gainers amid a broad-based rally. Healthcare, consumer staples, and real estate were the only decliners. IBM shares sank 24%, the most on the Dow and the S&P 500, after the tech giant issued Q2 guidance below analysts' expectations.Looking at gains from the top 20 companies with market capitalizations exceeding $200 billion, half were from the semiconductor industry, according to data compiled by Finviz. The top gainer was SK Hynix, up 24%, following its Nasdaq debut last Friday.The US seasonally adjusted consumer price index fell by 0.4% month-over-month in June, the steepest drop since April 2020, compared with expectations for a 0.1% decrease in a Bloomberg-compiled survey and following a 0.5% increase in May, according to data released Tuesday by the Bureau of Labor Statistics. Core CPI, which excludes food and energy prices, held steady, compared with the 0.2% growth estimate, in line with May's growth.US Treasury yields fell, with the 10-year down 3.7 basis points to 4.58% and the two-year lower by 7.4 basis points to 4.19%.The probability of the Federal Reserve leaving its policy unchanged in July soared to 83% following the inflation data, from 58% a day ago, the CME FedWatch tool showed Tuesday. The likelihood of the policy pause continuing across September, October, and December also surged.Meanwhile, President Donald Trump withdrew his proposal to charge a 20% toll on cargo transiting the Strait of Hormuz, according to his social media post on Tuesday. "Based on highly productive conversations with Middle East leadership, I have decided to replace the 20% United States Reimbursement Fee with Trade and Investment Deals that the various Gulf States will be making into the United States."There will be a "FULL Blockade, but only on Ships coming to and from Iranian ports, or carrying anything have to do with Iranian cargo," Trump said on Truth Social. US Central Command says it will restart its naval blockade at 4 p.m. ET, CNN reported.The front-month global benchmark North Sea Brent rose 2.2% to $85.09 a barrel, and the US West Texas Intermediate was up 1.9% to $79.59 a barrel, albeit both crude types were off session highs.
Dow JonesNasdaq CompositeS&P 500$GS$IBM$JPM
Sectors
Sector Update: Tech Stocks Rise Late Afternoon
Tech stocks were higher late Tuesday afternoon, with the State Street Technology Select Sector SPDR ETF (XLK) up 1.4% and the State Street SPDR S&P Semiconductor ETF (XSD) adding 1.9%. The Philadelphia Semiconductor index climbed up 2.9%.In corporate news, the US has approved purchases of advanced AI chips from Nvidia (NVDA) and Advanced Micro Devices (AMD) by a ZTE unit and two other Chinese firms, Reuters reported. Nvidia shares gained 3.8%, and AMD added 2.6%.CleanSpark (CLSK) has signed a 20-year infrastructure lease agreement with a global technology firm for its Sandersville, Georgia, data center campus in a deal expected to generate about $6.6 billion in contracted revenue over the initial term, the company said Tuesday. CleanSpark shares jumped past 8%.IBM (IBM) shares tumbled past 24% after its preliminary Q2 results fell short of market expectations, with Chief Executive Arvind Krishna calling the performance "disappointing."Oaktree Capital Management-backed Pure Data Centres is building a data center campus in Finland that is expected to be used by customers including Microsoft (MSFT), Bloomberg reported. Pure Data Centres is investing 1.5 billion euros ($1.7 billion) in the first phase of the project, the report said. Microsoft shares were down 1.4%.
$AMD$CLSK$IBM$MSFT$NVDA
Wire
Top Midday Decliners
IBM's (IBM) shares sank 25%, the steepest decline on the Dow and the S&P 500, after the tech giant issued Tuesday Q2 guidance below Wall Street expectations.More than 48.8 million shares of the company traded intraday compared with a daily average of about 9.11 million.Jet.AI (JTAI) has entered into a non-binding letter of intent for a proposed business combination with a privately held operating company for a proposed $320 million enterprise value, the company said Tuesday.Shares plunged 21% as intraday trading volume surged to over 1.20 million from the stock's daily average of about 274,000.HCA Healthcare (HCA) lowered its 2026 adjusted diluted EPS guidance on Tuesday. Stephens cut the company's price target to $480 from $500, while keeping its overweight rating.HCA shares slumped 7%, with intraday trading volume at more than 3.04 million versus the stock's daily average of about 1.54 million.Price: $217.46, Change: $-72.78, Percent Change: -25.07%
$HCA$IBM$JTAI
US Markets
Equity Markets Mostly Rise Intraday After Inflation Data, Bank Earnings
US benchmark equity indexes were mostly higher intraday as traders assessed the latest inflation data and quarterly results of banking giants.The Nasdaq Composite was up 1.1% at 26,150.9 after midday Tuesday, while the S&P 500 rose 0.5% to 7,551.2. The Dow Jones Industrial Average fell 0.1% to 52,469.6. Among sectors, technology paced the gainers, while healthcare saw the biggest drop.The US consumer price index declined 0.4% in June, its first monthly drop since May 2020 and the largest decline since April 2020, amid lower energy costs, official data showed. The consensus in a Bloomberg-compiled survey was for the index to move down by 0.1%.Annually, inflation cooled to 3.5% last month from May's 4.2%, compared with expectations for a 3.8% print."Investors and the Federal Reserve will breathe a sigh of relief at the size of the improvement in the inflation numbers last month, likely keeping an imminent rate hike off the table later this month," BMO said in a note.There's now an 83% likelihood that the Fed will keep its monetary policy unchanged at its July meeting, up from 58% Monday, according to the CME FedWatch tool. The odds of a 25-basis-point rate increase slid to 17% from 42%.US Treasury yields were lower intraday, with the two-year rate down 5.1 basis points at 4.21% and the 10-year rate falling 2.5 basis points to 4.59%.In corporate news, Goldman Sachs (GS), JPMorgan Chase (JPM), Wells Fargo (WFC), Bank of America (BAC) and Citigroup (C) all posted strong second-quarter results Tuesday.Goldman shares were up 7.7% intraday, the best performer on the Dow and the second-top gainer on the S&P 500. JPMorgan and Bank of America were also higher, while Citigroup and Wells Fargo fell.IBM (IBM) shares slumped 25%, the worst performer on the S&P 500 and the Dow. The computer and software company's preliminary second-quarter results fell short of Wall Street's expectations, with Chief Executive Arvind Krishna calling the performance "disappointing."West Texas Intermediate crude oil was up 1% at $78.88 a barrel, while Brent rose 1.5% to $84.54.US President Donald Trump said Tuesday he would no longer demand a 20% "reimbursement fee" from ships passing through the Strait of Hormuz. In a social media post, Trump said he has "decided to replace" the fee with "trade and investment deals" with Gulf countries.Amid renewed tensions in the Middle East, Trump also said a "full blockade" will be enforced on all ships coming to and from Iranian ports, while the strait remains open.Fed Chair Kevin Warsh vowed to curb high inflation straining American consumers and companies, affirming the central bank's commitment to restore price stability.Monetary policymakers "have no tolerance for persistently elevated inflation," Warsh said while speaking before a US House of Representatives committee. "If we get policy right -- and we will -- the inflation surge of the last five years will be a thing of the past."Gold was up 1.4% at $4,062.20 per troy ounce, while silver gained 1.7% to $58.96 per ounce.
Dow JonesNasdaq CompositeS&P 500$BAC$C$GS$IBM$JPM$WFC
Asia Markets
Update: Nasdaq, S&P 500 Rise as Inflation Cools Most in Six Years, Trump Drops Strait of Hormuz Cargo Toll Plan
(Updates with index/price moves, macroeconomic data and company/geopolitical news from the first paragraph.)US equity indexes traded mixed, with the Nasdaq Composite and the S&P 500 gaining, as the June inflation rate fell the most in more than six years and President Donald Trump withdrew plans to impose a levy on cargo transiting the Strait of Hormuz in the Persian Gulf.The tech-heavy Nasdaq advanced 1% to 26,125.4, with the S&P 500 climbing 0.4% to 7,545.1 after midday Tuesday. The Dow Jones Industrial Average bucked the trend, slipping 0.1% to 52,429.5.Technology led gainers, while healthcare was the steepest decliner. IBM's (IBM) shares sank 25%, the steepest decline on the Dow and the S&P 500, after the tech giant issued Q2 guidance below Wall Street expectations.The US seasonally adjusted consumer price index fell by 0.4% month-over-month in June, the steepest drop since April 2020, compared with expectations for a 0.1% decrease in a Bloomberg-compiled survey and following a 0.5% increase in May, according to data released Tuesday by the Bureau of Labor Statistics. Core CPI, which excludes food and energy prices, held steady, compared with the 0.2% growth estimate, in line with May's growth.The year-over-year rates for overall and core CPI slowed to 3.5% and 2.6%, respectively, from 4.2% and 2.9% in the previous month. The "super core", which is defined as core services excluding housing, saw the biggest sequential decline since May 2020, according to a note from Jefferies.US Treasury yields fell, with the 10-year down 2.9 basis points to 4.58% and the two-year lower by 5.7 basis points to 4.21%.Meanwhile, President Donald Trump withdrew his proposal to charge a 20% toll on cargo transiting the Strait, according to his social media post on Tuesday. "Based on highly productive conversations with Middle East leadership, I have decided to replace the 20% United States Reimbursement Fee with Trade and Investment Deals that the various Gulf States will be making into the United States."There will be a "FULL Blockade, but only on Ships coming to and from Iranian ports, or carrying anything have to do with Iranian cargo," Trump said on Truth Social.The front-month global benchmark North Sea Brent rose 1.7% to $84.69 a barrel, and the US West Texas Intermediate climbed 1.3% to $79.18 a barrel, off session highs."Resumption of tension in the Strait of Hormuz risks a reversal, but this month's [inflation] data is a step in the right direction for the Fed," Jefferies Chief US Economist said in a note.The probability of the Federal Reserve leaving its policy unchanged in July soared to 83% following the inflation data, from 58% a day ago, the CME FedWatch tool showed Tuesday. The likelihood of the policy pause continuing across September, October, and December also jumped.Further in company news, traders digested the latest round of earnings from mega-cap banks. Goldman Sachs' (GS) Q2 results topped analysts' estimates as a record performance in the global banking and markets business propelled revenue growth. Shares jumped 7.7%, the Dow's leader.JPMorgan Chase (JPM) reported Q2 results above market expectations, driven by higher investment banking fees and markets revenue. Its shares rose 1.9%, one of the Dow's top performers.
Dow JonesNasdaq CompositeS&P 500$GS$IBM$JPM
Sectors
Sector Update: Tech Stocks Rise Tuesday Afternoon
Tech stocks were higher Tuesday afternoon, with the State Street Technology Select Sector SPDR ETF (XLK) up 1.5% and the State Street SPDR S&P Semiconductor ETF (XSD) adding 2%. The Philadelphia Semiconductor index climbed up 2.9%.In sector news, DeepSeek has started preparing for its initial public offering in China, targeting a filing by year-end or early 2027, Bloomberg reported.In corporate news, the US has approved purchases of advanced AI chips from Nvidia (NVDA) and Advanced Micro Devices (AMD) by a ZTE unit and two other Chinese firms, Reuters reported. Nvidia shares rose 3.9%, and AMD added 4.3%.CleanSpark (CLSK) has signed a 20-year infrastructure lease agreement with a global technology firm for its Sandersville, Georgia, data center campus in a deal expected to generate about $6.6 billion in contracted revenue over the initial term, the company said Tuesday. CleanSpark shares jumped past 5%.IBM (IBM) shares tumbled 24% after its preliminary Q2 results fell short of Wall Street's expectations, with Chief Executive Arvind Krishna calling the performance "disappointing."
$AMD$CLSK$IBM$NVDA
Sectors
Sector Update: Tech
Tech stocks were higher Tuesday afternoon, with the State Street Technology Select Sector SPDR ETF (XLK) rising 1.5% and the State Street SPDR S&P Semiconductor ETF (XSD) adding 2%.The Philadelphia Semiconductor index climbed 2.9%.In corporate news, IBM (IBM) shares tumbled 24% after the company's preliminary Q2 results fell short of Wall Street's expectations, with Chief Executive Arvind Krishna calling the performance "disappointing."
$IBM
US Markets
IBM Shares Plunge Following 'Disappointing' Preliminary Second-Quarter Results
IBM (IBM) shares plummeted Tuesday after the company's preliminary second-quarter results fell short of Wall Street's expectations, with Chief Executive Arvind Krishna calling the performance "disappointing."The computer and software company expects revenue to increase 1% to $17.2 billion in the June quarter, missing the FactSet-polled consensus of $17.86 billion. IBM projects operating earnings to increase 5% to $2.93 a share, also lagging the Street's $3.01 views.The company's shares plunged 26% in afternoon trade.Second-quarter infrastructure revenue is seen down 7%, while software revenue is projected to rise 5%.The results were "disappointing" amid software and infrastructure "performance shortfall," Krishna said in a letter to investors Tuesday. IBM expected infrastructure revenue to drop low-single digits for the year, according to the letter."What played out was worse than our expectations, driven by a shortfall in our Z performance and the associated software stack, primarily in transaction processing," Krishna said.In the last few weeks of last month, clients shifted their quarterly capital expenditure spending toward servers, storage, and memory purchases to secure "supply-constrained" infrastructure ahead of anticipated price hikes, affecting their buying patterns, according to Krishna."While we anticipated some supply chain-related impact in our expectations, we did not anticipate the magnitude of the capex reprioritization," Krishna wrote. "In addition, clients were distracted with rapidly evolving, industry-wide cybersecurity concerns in the quarter."IBM failed to adapt and "move quickly enough" to tackle the situation, according to the CEO. "Numerous large deals failed to close on the timelines we expected, driving the majority of our shortfall," Krishna said.IBM is on course to deliver the first large-scale fault-tolerant quantum computer by 2029, according to Krishna.The company is scheduled to report full second-quarter results July 22.Price: $216.67, Change: $-73.56, Percent Change: -25.35%
$IBM
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