Stocks Close Higher After Trump Denies He Plans to Fire Fed Chair Powell; Nasdaq Composite Hits Record for 3rd Straight Day

Biggest S&P 500 Movers on Wednesday

21 hr 3 min ago

Advancers

Shares of Global Payments (GPN) surged 6.5%, the most of any S&P 500 stock, following reports that activist investor Elliott Management has accumulated a significant stake in the financial technology firm. Global Payments shares took a hit in April when the company agreed to acquire payment processor Worldpay in a cash-and-stock deal worth more than $24 billion.
Johnson & Johnson (JNJ) shares jumped 6.2%. The medical device and drug maker topped sales and profit forecasts with its second-quarter results and boosted its full-year guidance. CEO Joaquin Duato said Johnson & Johnson is positioned for growth in the second half of 2025, highlighting approvals and expected submissions across various medical areas.
U.S.-based asset manager Apollo Global Management (APO) is reportedly in discussions about a potential investment in Spanish soccer club Atletico Madrid. Although Apollo’s initial meetings with the club were focused on financing Atletico’s 800-million-euro development project surrounding Madrid’s Metropolitano Stadium, the firm is now reportedly interested in acquiring a stake in the team’s majority owner. Apollo Global Management shares gained 4.8%.

Decliners

Shares of engineering and design software firm Ansys (ANSS) fell 4.7%, posting the benchmark index’s weakest daily performance. Wednesday’s downturn gave back some of the gains posted by the stock earlier in the week after regulators in China granted conditional approval for the $35 billion buyout of Ansys by fellow software provider Synopsys (SNPS). S&P Dow Jones Indices said Tuesday that Ansys stock will exit the S&P 500 later this week following the closure of the deal, to be replaced by digital advertising firm The Trade Desk (TDD).
Bank of America analysts downgraded Universal Health Services (UHS) stock to “underperform” from “neutral” and lowered their price target. Shares of the hospital operator fell 3.8%. Analysts cited concerns about health care legislation, including cuts to Medicaid and Affordable Care Act, or ACA, exchanges, which they believe could pressure patient volumes and increase hospitals’ exposure to bad debt. BofA indicated that UHS is highly vulnerable to changes in state directed payments.
Shares of memory chipmaker Micron Technology (MU) sank 3.1% after Goldman Sachs initiated coverage of the stock with a “neutral” rating. Although Goldman analysts said Micron could benefit from an eventual rebound in the NAND flash memory market heading into 2026, they maintain a cautious stance on the overall semiconductor space, revenues for which it expects will remain relatively stable through next year.

-Michael Bromberg

Sarepta Therapeutics Soars on Restructuring Plan

21 hr 24 min ago

Shares of struggling drug developer Sarepta Therapeutics (SRPT) skyrocketed in extended trading Wednesday after the company unveiled a major restructuring plan.

The company said it will slash its workforce by 36%, or roughly 500 employees, in order to to generate $100 million in annual cost savings starting in 2026. Another $300 million is expected to come from pausing several programs in its drug development pipeline.

Sarepta’s stock has collapsed this year after two patients taking its Elevidys drug for Duchenne muscular dystrophy died of acute liver failure. Through Wednesday’s close, its shares were down 85% from the start of the year.

The stock was up 35% in after-hours trading Wednesday.

Sarepta said it agreed to a Food and Drug Administration request to introduce a black box warning label for Elevidys covering acute liver injury and acute liver failure.

Sarepta posted preliminary net product revenue of $513 million for the second quarter, of which $282 million came from Elevidys. The company is expected to release its full results for the second quarter in early August.

-Andrew Kessel

Shares of Donald Trump Jr.-Backed GrabAGun Falter in Debut

21 hr 46 min ago

GrabAGun (PEW), an online firearms retailer backed by Donald Trump Jr., lost a fifth of its value on its first day as a publicly traded company.

Trump Jr. sits on the company’s board of directors and holds a 1% stake, according to a regulatory filing. The eldest child of President Donald Trump rang the New York Stock Exchange opening bell to kick off the day of trading Wednesday.

GrabAGun went public Wednesday after merging with a special purpose acquisition company, Colombier II.

The transaction generated $179 million in gross proceeds for GrabAGun, the company said; the money will be “working capital and other corporate purposes to accelerate the Company’s future growth initiatives,” according to a filing.

GrabAGun reported more than $90 million in revenue in each of 2023 and 2024, the company said, turning in a more-than $4 million net profit in both years.

Shares of GrabAGun, which trade on the New York Stock exchange, ended the day more than 20% lower. The shares opened at $21.40 but moved no higher, closing a bit off daily lows at $13.20.

-Andrew Kessel

How Much Traders Expect Netflix to Move After Earnings

21 hr 56 min ago

Current options pricing suggests traders anticipate shares of Netflix (NFLX), which is due to report results after tomorrow’s closing bell, could move about 6%, or $70 in either direction, by Friday. A move of that scale would lift shares to just above $1320 at the high end, or leave them near $1,180 at the bottom end of that range, their lowest level since May.

Netflix shares lost nearly 1% Wednesday to close around $1,250. Still, the stock is up 40% in 2025 so far. 

Netflix’s stock has registered an average post-earnings move of 6% over the past four quarters, and risen in three of those instances. In April, shares rose a little over 1% after the streaming giant beat analysts’ expectations, thanks in part to higher subscription and ad revenues. Those results came shortly after Netflix executives reportedly said their goal is to double the company’s $39 billion in revenue last year by 2030.

Analysts are largely bullish on Netflix’s long-term outlook heading into the earnings report, and expect the streamer to report rising revenue and profits. Of 17 analysts tracked by Visible Alpha, 13 rate Netflix stock a “buy,” while just four give it a “hold.” Their average price target is about $1,330.

-Andrew Kessel

Fed’s Beige Book Flashes Tariff Price Alarms

22 hr 33 min ago

There’s less “uncertainty” in the economy these days, and more belief that higher prices are on the way because of President Donald Trump’s tariffs.

That’s according to the Federal Reserve’s “Beige Book” report released Wednesday. The report compiles anecdotes from leaders and business owners in the banking system’s 12 regional districts. Businesses reported widespread price increases and passing many of those costs on to consumers. The tariffs, which include a 50% duty on most imported steel, appear to have hit construction companies and manufacturing harder than other industries.

“In all twelve Districts, businesses reported experiencing modest to pronounced input cost pressures related to tariffs, especially for raw materials used in manufacturing and construction,” the report said. “Many firms passed on at least a portion of cost increases to consumers through price hikes or surcharges, although some held off raising prices because of customers’ growing price sensitivity, resulting in compressed profit margins.”

The report shed some light on the ongoing debate about who will pay for Trump’s wide-ranging import taxes, which are raking in billions for the government every month.

Price pressures have been slow to arrive since the first wave of tariffs went into effect in March, but they were evident in the government’s official inflation report for June. If the Beige Book is anything to go by, the trend could accelerate as the summer continues.

“Contacts in a wide range of industries expected cost pressures to remain elevated in the coming months, increasing the likelihood that consumer prices will start to rise more rapidly by late summer,” The report said.

“Uncertainty” about the future remained a major theme, but less so than in recent months. There were 63 mentions of “uncertain” or “uncertainty,” down from 80 in June. Overall economic activity “increased slightly” between May and early July, but the outlook for the future called for flat growth or a slight slowdown in most districts, the report said.

The Fed has held off on cutting its key interest rate this year, much to the ire of Trump, because of concerns that lower borrowing costs could set off a fresh round of inflation. The latest report could encourage Fed officials’ reluctance to cut rates.

“The Beige Book hints at a mild improvement in the economy, while suggesting that the inflationary impact of tariffs is merely delayed, reinforcing the Fed’s patient approach,” Sal Guatieri, senior U.S. economist at BMO Capital Markets, wrote in a commentary.

-Diccon Hyatt

MP Materials Levels to Watch After Stock’s Recent Surge

July 16, 2025 03:25 PM EDT

MP Materials (MP) shares remain in focus after soaring 20% yesterday on news that Apple (AAPL) plans to invest $500 million in the rare earths firm.

The company will supply metals to Apple as part of the tech giant’s pledge to spend more than $500 billion in the U.S. over the next four years. The news of the Apple commitment came just days after the Department of Defense took a 15% stake in the US’s only rare earths producer as Washington makes becoming less dependent on nations like China for rare earths a top priority and a national security issue.

MP Materials shares have surged nearly four-fold since the start of the year and are up 70% this month alone. The stock was down 1.5% at around $57 in afternoon trading Wednesday.

After hitting their June peak, MP Materials shares retraced within a flag toward the 50-day moving average (MA). More recently, the price staged a volume-backed breakaway gap above the pattern, accelerating the stock’s uptrend.

While the relative strength index confirms bullish price momentum, it also flashes a reading above 80 to signal extremely overbought conditions.

The bars pattern tool, which extracts the bars comprising the stock’s impulsive move higher that preceded the flag pattern and overlays them from last Thursday’s breakaway gap, projects a bullish price target of around $85.

Investors should also watch major support levels on MP Materials’ chart around $39 and $30.

Read the full technical analysis piece here.

-Timothy Smith

What Analysts Think of Netflix Ahead of Earnings Thursday

July 16, 2025 02:44 PM EDT

Netflix (NFLX) is scheduled to report second-quarter results after the closing bell Thursday, with analysts largely bullish on the streaming giant’s continued growth potential. 

Wall Street expects Netflix’s revenue to have grown 16% year-over-year to $11.07 billion and net income to have jumped about 45% to $3.08 billion, or $7.08 per share, according to Visible Alpha consensus data. 

Netflix possesses “unmatched scale in streaming,” Bank of America analysts wrote in a note to clients Tuesday. The bank’s price target of $1,490 is among the most bullish on Wall Street.

Netflix shares were near unchanged in afternoon trading Wednesday at $1,260. The stock has risen more than 40% so far in 2025.

Wedbush analysts, who maintained a $1,400 target this week, said Netflix is poised to grow revenue from its ad-supported subscription tier by incorporating more live events and expanding its ad partnerships.

The streamer raised the price of its ad tier to $7.99 from $6.99 in January, while the cost of its standard ad-free plan rose to $17.99 from $15.49, and its premium plan moved to $24.99 from $22.99. 

“While massive subscriber growth was the primary driver in 2024, we expect price increases to drive revenue growth in 2025, and the ad tier to drive revenue higher in 2026,” Wedbush said. 

The consensus price target among analysts in Visible Alpha’s database is $1,330. Ratings-wise, 13 analysts have a “buy” rating for Netflix stock, alongside four “hold” ratings. 

Citi is one such analyst with a neutral rating on Netflix stock, reiterating a target of $1,250, which implies slight downside. The bank said it will be watching for the updates on Netflix’s first-party ad-tech platform, which the company rolled out in the U.S. earlier this year and has said it plans to bring to other markets.

-Andrew Kessel

Trump Denies Reports He’s Set to Fire Powell

July 16, 2025 02:20 PM EDT

President Donald Trump denied he was planning to fire Federal Reserve Chair Jerome Powell Wednesday, contradicting reports earlier in the day.

Trump said he had no plans to fire Powell around midday Wednesday. Just before he made his comments, The New York Times reported that Trump drafted a letter to fire Powell and showed it to lawmakers Tuesday night. Rep. Anna Paulina Luna, a Republican from Florida, posted on social media Tuesday night that Powell’s firing was “imminent.”

Trump has often criticized Powell and demanded that the central bank lower interest rates, sometimes threatening to fire him. Powell’s term expires in May 2026, at which point Trump can appoint a successor.

“He’s doing a lousy job, but no, I’m not talking about that,” Trump told reporters in the Oval Office Wednesday when asked if he was planning to fire Powell. “Fortunately, we get to make a change in the next, what, eight months?”

He also denied having written a letter.

Whether Trump could fire Trump if he tried is a matter of legal dispute. The Fed is independent of the White House, and Powell has said the president has no authority to fire him. In May, the Supreme Court gave some credence to that in a ruling about presidential authority to fire the heads of independent agencies.

Trump did not entirely rule out firing Powell, saying he could fire him because of cost overruns in an ongoing renovation of the Fed’s Washington headquarters.

Economists and many members of Congress have supported the Fed’s independence, citing the historical record of countries with independent central banks versus those under the control of a chief executive. According to academic studies, politically controlled central banks do a worse job of stabilizing inflation, leading to economic trouble.4

The Federal Open Market Committee, led by Powell, has held interest rates at a higher-than-usual level this year in an effort to push inflation down to the Fed’s goal of a 2% annual rate. The federal funds rate, which influences interest rates on all kinds of loans, is high enough to be “modestly restricive” on economic activity, in Powell’s words.

Powell and other Fed officials have voiced concerns that Trump’s trade policies will push up consumer prices, dealing a setback to the Fed’s war on inflation.

Trump has insisted Powell should significantly lower rates. That would cut borrowing costs, boost the economy, and potentially reduce the government’s interest payments on the national debt. Trump has said Powell is “too late” in cutting rates and has lobbed insults at the Fed chair, noting that the European Central Bank has steadily cut rates throughout the year as the Fed has held steady.

Financial markets were pricing in the likelihood that the Fed would wait until at least September before cutting rates according to the CME Group’s FedWatch tool, which forecasts rate movements based on fed funds futures trading data.

Trump said he would appoint a successor to Powell who favored low interest rates.

-Diccon Hyatt

BofA Profit Tops Expectations But Revenue Falls Short

July 16, 2025 01:05 PM EDT

Bank of America (BAC) reported better second-quarter profits than analysts had projected, while revenue and net interest income fell just short.

The firm said Wednesday it earned $0.89 per share in the second quarter, beating estimates by 4 cents, while revenue was up 4% from the same time a year ago to $26.46 billion, slightly below the analyst consensus compiled by Visible Alpha.

Bank of America’s net interest income rose 7% year-over-year to $14.67 billion, just below the $14.71 billion that analysts had forecast.

“Consumers remained resilient, with healthy spending and asset quality, and commercial borrower utilization rates rose,” CEO Brian Moynihan said in a press release. “In addition, we saw good momentum in our markets businesses.”

Bank of America shares were down 1.5% in recent trading. They entered the day up 5% since the start of this year.

-Aaron McDade

ASML Says It Can’t Guarantee Growth in 2026, Shares Plunge

July 16, 2025 11:02 AM EDT

ASML Holding (ASML) shares tumbled Wednesday morning after the Dutch semiconductor-gear manufacturer said it couldn’t guarantee growth in the coming year.

“Looking at 2026, we see that our AI customers’ fundamentals remain strong. At the same time, we continue to see increasing uncertainty driven by macro-economic and geopolitical developments,” CEO Christophe Fouquet said in a statement as the Dutch firm announced second-quarter results. “Therefore, while we still prepare for growth in 2026, we cannot confirm it at this stage.”

The company, whose extreme ultraviolet lithography machines help make advanced AI chips, made the statement as it posted second-quarter results. ASML’s U.S.-listed shares, which entered Wednesday up by 18% this year, are 7% lower in premarket trading.

Trump over the weekend sent a letter to the EU threatening 30% tariffs on imports from Aug. 1 onwards. ASML sells its machines to customers globally, including American chip maker Intel (INTC) and Taiwan Semiconductor Manufacturing Company (TSM), the world’s largest contract chip maker.

Semiconductors are currently exempted from U.S. tariffs, but it’s unclear whether gear makers like ASML would benefit from that. Trump also said late Tuesday that he was probably going to impose tariffs on semiconductors, along with pharmaceuticals, by Aug. 1, according to Bloomberg.

ASML also narrowed its growth outlook for the year. The company said it expects a full-year 2025 total net sales increase of around 15% relative to 2024 and projected gross margin of around 52%. Both of those numbers were around the midpoint of the outlook the company offered with its first quarter results.

ASML shares recently were down more than 10%, leading Nasdaq 100 decliners. Other chip equipment stocks, including KLA Corp. (KLAC), Lam Research (LRCX) and Applied Materials (AMAT) were also under pressure this morning.

-Nisha Gopalan

Goldman Sachs Results Blow Past Expectations

July 16, 2025 10:07 AM EDT

Goldman Sachs (GS) on Wednesday reported second-quarter revenue and profits that came in well above what analysts had anticipated.

Goldman posted earnings per share of $10.91 on revenue that rose 15% year-over-year to $14.58 billion, blowing past analysts’ estimates compiled by Visible Alpha. Net interest income surged 56% to $3.1 billion, above the $2.79 billion analyst consensus.

“At this time, the economy and markets are generally responding positively to the evolving policy environment,” Goldman CEO David Solomon said in a release. “But as developments rarely unfold in a straight line, we remain very focused on risk management.”

Goldman shares were down slightly in early trading Wednesday. The stock has gained more than 20% since the start of the year.

Goldman’s revenue and profits also topped estimates the previous quarter, though its net interest income fell short. Some banking executives have grown more confident in the macroeconomic outlook in recent weeks, according to some experts.

Bank stocks got a boost last month following the results of the Federal Reserve’s annual stress test, which indicated the nation’s biggest banks could withstand a downturn without government assistance.

-Aaron McDade

J&J Stock Rises on Strong Earnings, Boosted Outlook

July 16, 2025 09:04 AM EDT

Johnson & Johnson (JNJ) on Wednesday lifted its full-year projections and reported second-quarter results that beat estimates.

The medical device and drug maker posted adjusted earnings per share of $2.77 on sales that rose 5.8% from the same time a year ago to $23.74 billion. Both figures were better than analysts had projected, according to estimates compiled by Visible Alpha.

The company lifted its full-year sales forecast to a range of $93.2 billion to $93.6 billion, up from last quarter’s range of $91 billion to $91.8 billion. Adjusted EPS is now projected to come in between $10.80 to $10.90, compared to $10.50 to $10.70 previously.

Johnson & Johnson shares were up about 2% in premarket trading following Wednesday’s results. They entered the day up about 7% this year.

“Our portfolio and pipeline position us for elevated growth in the second half of the year, with game-changing approvals and submissions anticipated in areas like lung and bladder cancer, major depressive disorder, psoriasis, surgery and cardiovascular,” CEO Joaquin Duato said.

After first-quarter results, Johnson & Johnson projected tariff costs of $400 million this year. President Donald Trump has threatened steep tariffs on pharmaceutical imports.

-Aaron McDade

Major Stock Index Futures Mixed

July 16, 2025 08:17 AM EDT

Futures tied to the Dow Jones Industrial Average were up 0.2%.

S&P 500 futures fell fractionally.

Nasdaq 100 futures added 0.2%.