Markets
Nia Warfield, Luke Kawa

S&P 500 inches up, Nasdaq 100 gains to book record closing highs

The S&P 500 traded in positive territory all day and managed to eke out another record close, though the advance was nothing to write home about. The Nasdaq 100 gained 0.3% to close at a record along with the benchmark US stock index, while the Russell 2000 sank 1.4%.

Consumer discretionary was the worst-performing S&P 500 sector ETF, weighed down by Tesla, which fell 8% after CEO Elon Musk pondered the company’s challenges on its Q2 earnings call (including developing full self-driving software as well as tariff and supply chain headwinds). In fact, energy, tech, and communications services were the only sector ETFs with a positive showing on the session.

Gains were led by West Pharmaceutical, with shares up about 23% in its best day ever after the company, which makes tiny rubber components used for GLP-1 pens, crushed Wall Street estimates thanks to soaring weight-loss drug demand. LKQ Corp. led declines, falling nearly 18% after the automotive scrapyard owner reported Q2 profits that fell short of Wall Street expectations and revised its full-year profit guidance lower. Elsewhere...

T-Mobile shares jumped about 6% as Wall Street digested the wireless giant’s better-than-expected Q2 earnings results after the bell Wednesday, along with a fresh upgrade to its full-year forecast.

ServiceNow shares rose 4% after the cloud software company posted strong Q2 results and its CEO said the company would slow hiring for its “soul-crushing” roles.

Chipotle shares tumbled 13% after the burrito biggie posted its second straight quarter of same-store sales declines, also missing the Street’s estimates.

American Airlines’ tumble neared double digits after the company slashed its full-year earnings outlook, projecting an up to $0.20 loss for the year — worse than the Street’s expectations and American’s previous outlook.

Southwest plunged 11% after posting disappointing Q2 results Wednesday and despite the airline’s projections of earning over $350 million in bag fee revenue for the full year.

IBM shares dropped nearly 8% after the company reported Q2 earnings that beat on the top and bottom lines, but posted weaker-than-expected growth in its important software division.

Mattel shares sank over 16% after the toy maker posted mixed second-quarter results, as demand picked up overseas but wasn’t enough to completely offset declines in North America. 

Outside of earnings...

American Eagle shares rose 4%, finishing way off its premarket highs after a new campaign starring actress Sydney Sweeney sparked fresh retail buzz, landing the stock on r/WallStreetBets’ trending list.

UnitedHealth shares dipped almost 5% after the insurance giant said it was responding to requests from the Department of Justice regarding its Medicare Advantage business practices.

Union Pacific and Norfolk Southern were down 4.5% and less than 1%, respectively, as the two rail giants confirmed that they have, in fact, been involved in talks about combining their companies.

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markets
Luke Kawa

Broadcom jumps after locking down Google as a customer for future generations of TPUs

Shares of Broadcom rose more than 3% in postmarket trading on Monday after its most important customer doubled down on the custom chip specialist’s ability to produce its most valuable commodity.

In a filing, Broadcom said that it entered into a long-term agreement with Google to supply future generations of TPUs (custom AI accelerator chips) as well as a supply assurance agreement for networking and other equipment “through up to 2031.”

Bernstein analyst Stacy Rasgon indicated that Broadcom’s investor relations team told him that Google’s long-term agreement “has revenue commitments that go along with it through the timeline.”

Gemini 3 launched to rave reviews in November. The model was trained on TPUs co-developed by Broadcom and Google.

The same Monday filing showed that Broadcom, Google, and Anthropic expanded a partnership that will see the Claude developer access 3.5 gigawatts of AI compute capacity beginning in 2027, powered by the TPUs co-designed by the custom chip specialist and the search giant.

Bernstein’s Rasgon added that Broadcom’s team suggested these 3.5 gigawatts are “only part of a larger partnership over time.” He thinks Broadcom’s fiscal year 2027 guidance for AI revenues of $100 billion “is looking increasingly light” thanks to this news.

For what it’s worth, the enhanced pact with Anthropic hinges upon the firm’s ability to afford AI compute. But based on the insane trajectory of its run-rate revenue that may not be a big hurdle to clear.

“Broadcom’s expanded agreements with Google and Anthropic add rare multi-year visibility, reinforcing a $40-$50 billion AI revenue opportunity tied to Anthropic’s 3.5 gigawatt deployment starting in 2027, while building on the previously disclosed 1GW ($10 billion) starting in 2H,” wrote Bloomberg Intelligence analysts Kunjan Sobhani and Oscar Hernandez Tejada.

Luke Kawa
8h
Anthropic boasts revenue run rate of $30 billion as the Claude developer expands its partnership with Google and Broadcom

Anthropic’s revenue run rate is higher than the trailing 12-month revenues of all but 129 S&P 500 companies.

Anthropic Co-founder and CEO Dario Amodei
markets
Luke Kawa

Health insurers surge after Medicare agrees to pay 2.48% more in 2027, a bigger-than-expected boost

Health insurance stocks are surging after the Centers for Medicare & Medicaid Services said it plans to boost Medicare Advantage and Part D payments by 2.48% in calendar year 2027.

The likes of CVS, Humana, UnitedHealth, Molina Healthcare, Oscar Health, and Elevance Health are gaining in postmarket trading.

Wall Street analysts had anticipated that rates for 2027 would go up between roughly 1% and 1.5%.

These stocks had gotten crushed in late January when the Trump administration proposed relatively flat federal payment rates.

Insurance companies that provide government-sponsored plans, like Medicare Advantage, faced headwinds from higher-than-expected costs in 2025.

Luke Kawa, Tasha Matsumoto
13h
Stocks maintain gains after whipsawing as traders digest war updates

Stocks rose for the fourth consecutive session as traders vacillated between hopes for a ceasefire and fears of an escalation.

Bull kicks
markets
Matt Phillips

Iran war winners Dow, LyondellBasell downgraded by Bank of America

Dow, Inc. and LyondellBasell — two petrochemicals stocks that surged as markets priced in shortages due to the closure of the Strait of Hormuz — should decline as investors focus on the long-term outlook for normalized petrochemical prices once the war resolves, Bank of America analysts wrote in a note downgrading the two stocks Monday.

BofA moved its rating on the shares from “neutral” to “underperform,” writing:

“Over time, as chemical markets normalize, we expect 1) investor focus to shiſt back to ‘normal’ or ‘sustainable’ earnings profiles and 2) the conflict to resolve without material asset rationalization, both of which likely bias shares lower over the next twelve months.”

Analysts also lowered their stance on another petrochemicals and building materials stock, Westlake, to “neutral” from “buy.”

While cutting those ratings, BofA actually raised its more near-term price targets for the shares. It upped LyondellBasell to $68 from $55, and Dow to $35 from $31.

But those price targets still imply declines of more than 10% compared to where both shares were trading late Monday morning. Both stocks are up roughly 30% since the start of the Iran war.

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