Bulls, Bitcoin, & Beyond

Market Moves Yesterday

S&P 500 @ 5,620.85 ( ⬆️ 0.42%)

Nasdaq Composite @ 17,918.99 ( ⬆️ 0.57%)

Bitcoin @ $60,914.40 ( ⬆️ 0.48%)

Hey Scoopers,

Happy Thursday! Are you ready for an exciting newsletter?

👉 Snowflake beats estimates

👉 Target shines, and Macy’s slides

👉 Ford delays EV expansion plans 

So, let’s go 🚀

Market Wrap 📉

Equity indexes, including the S&P 500 and Nasdaq Composite, advanced on Wednesday after a summary of the Federal Reserve’s policy meeting last month reinforced hope for lower interest rates.

Fed officials said a decrease in borrowing costs during the September policy meeting was very likely as participants indicated that loosening monetary policy would be appropriate amid cooling inflation.

Traders are now pricing in a 100% chance of a rate cut next month, which should reduce interest expenses and improve profit margins for companies across sectors.

Trending Stocks 🔥

American Express - The banking giant fell 2.7% after BoA analyst Mihir Bhatia downgraded the stock to “neutral” from “buy” due to weak consumer spending patterns.

Urban Outfitters - Shares of the retailer are down 4% in pre-market after same-store sales fell 9.3% in Q2, higher than the expected decline of 8.3%.

Zoom Video - Shares of the collaboration company are up 3.5% after reporting adjusted earnings of $1.39 per share, above estimates of $1.21 per share.

Snowflake Stock is Tanking

Shares of data cloud analytics company Snowflake are down almost 9% in pre-market despite raising the forecast for full-year product revenue, as it attracted more clients to its cloud platform amid advancements in AI.

However, the company did not pair its revenue projections with a higher margin forecast, leading to the sell-off.

In fiscal Q2 of 2025 (which ended in July), Snowflake reported product revenue of $829.3 million and earnings of $0.18 per share, higher than estimates of $808.4 million and $0.16 per share, respectively.

Snowflake expects product revenue to increase to $3.36 billion in fiscal 2025, up from its prior forecast of $3.30 billion. Meanwhile, the company authorized a buyback program totaling $2.5 billion.

Snowflake has trailed the broader markets by a wide margin this year. It was a victim of a data breach, and large amounts of customer data were stolen from companies such as AT&T.

On the other hand, it sees a rise in demand for its Data Cloud platform as AI integration has helped enterprises streamline data quickly and efficiently.

Snowflake is creating its own large language model and has partnered with Meta to use its Llama models, boosting the appeal of the former’s cloud platform.

Target Stuns Wall Street

Retail giant Target grew sales by 3% in its fiscal Q2, returning to growth after a prolonged stretch of sluggish sales and squeezed profits.

The discount retailer beat Wall Street’s revenue and earnings estimates as shoppers increased their store and website visits and purchased more discretionary items, such as clothing.

In fiscal Q2, Target reported:

👉 Revenue of $25.45 billion vs. estimates of $25.21 billion

👉 Earnings per share of $2.57 vs. estimates of $2.18

The company’s earnings per share rose from $835 million to $1.19 billion in the last 12 months as consumers spent more on higher-margin products.

The company also raised its profit guidance and expects adjusted earnings to range between $9 and $9.70 per share, above the previous range of $8.60 and $9.60.

Target stock closed 11% higher on Wednesday following its earnings results.

Macy’s Disappoints Wall Street

Elsewhere, Macy’s cut its full-year forecast as the department store operator contends with selective shoppers and promotions. Its Q2 earnings were mixed as it topped earnings estimates but failed to meet revenue estimates.

In fiscal Q2, Macy’s reported:

👉 Revenue of $4.94 billion vs. estimates of $5.12 billion

👉 Earnings per share of $0.53 vs. estimates of $0.30

The company expects fiscal 2024 sales between $22.1 billion and $22.4 billion, lower than its prior forecast between $22.3 billion and $22.9 billion. In fiscal 2023, its sales stood at $23.09 billion.

In an interview with CNBC, CEO Tony Spring said customers aren’t spending as freely across all of Macy’s brands — even higher-end department store Bloomingdale’s.

In February, Macy’s disclosed plans to shut down about 150 of its namesake stores by the end of 2027. Meanwhile, it would open smaller stores in suburban strip malls while adding locations of its better-performing brands, such as Bloomingdale’s.

Ford Delays EV Expansion Plans

Yesterday, automobile giant Ford disclosed plans to delay production of a next-generation pickup truck and canceled plans for a three-row electric SUV.

Instead, the company will prioritize developing hybrid models, a new electric commercial van and two EV pickup trucks. These changes will result in additional expenses and cash expenditures totaling $1.5 billion.

Ford will now allocate 30% of its capital expenditure plans towards developing EVs, down from an earlier forecast of 40%.

Headlines You Can't Miss!

Bavarian Nordic shares pop on bumper mpox vaccine order 

Microsoft changes reporting structure to boost cloud visibility 

A weak dollar may help U.S. consumers

U.S. Treasury yields move lower as the Fed signals rate cuts

Bitcoin volatility is ramping up to all-time highs

Chart of The Day

Meme of the Day

Don’t follow us on social yet? Follow us on Twitter and LinkedIn now.

DISCLAIMER: None of this is financial advice. The newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.