Stocks opened higher and held modest but steady gains into the weekend, with retail investors enjoying more summer fun and contributing to a broader rally.
Expectations for interest rates remain more tied to traditional factors despite continuing efforts by President Donald Trump and the executive branch to undermine Federal Reserve Chair Jerome Powell.
Investors, traders and speculators seem to accept at face value Trump’s statement following his Thursday field trip to visit Fed facilities that cost overruns for renovation projects are not sufficient grounds to fire Powell.
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“To do that is a big move, and I just don’t think it’s necessary,” the president said. Nevertheless, “can Trump fire Powell?” remains a pertinent question, if only as a starting point for a still-expanding conversation about central bank independence.
Gains were indeed modest at the index level, but Nvidia (NVDA, -0.1%) still notched a new all-time intraday high. Technology was among eight S&P 500 sectors closing in the green Friday, despite another down day for a major name.
Materials and industrial stocks led to the upside, but energy and communication services stocks lagged the pack.
UnitedHealth Group (UNH, +0.9%) was among the top 10 of the 30 Dow Jones stocks a day after it basically confirmed its Medicare Advantage business is under investigation by the Department of Justice.
At Friday’s closing bell, the blue-chip Dow Jones Industrial Average was up 0.5% to 44,901, closing the gap from a new all-time high to 112 points and 0.2%.
The broad-based S&P 500 added 0.4% to 6,388, making a new weekly closing high. The tech-focused Nasdaq Composite rose 0.2% to 21,108 and also set a new weekly closing high.
Fed watch
The next Fed meeting kicks off this Tuesday, July 29, and concludes on Wednesday, July 30. Be sure to check in on our live Fed blog for updates about the central bank.
The yield on the 2-year Treasury note, the market price most sensitive to Fed policy moves, ended the week at 3.917% vs 3.875% last Friday. The yield on the 10-year U.S. Treasury note, a risk-free benchmark for the global financial system, was at 4.384% compared to 4.431%.
The 30-year yield – a barometer of long-term economic growth as well as inflation expectations and the basic health of the market – was as high as 4.979% Friday and settled at 4.923%; it was 4.999% a week ago.
Wither Intel
For old-school marketheads, word that Intel (INTC, -8.5%) warned investors it might be forced out of the chip-making business if it doesn’t attract more customers to support its next-generation manufacturing process is a bit of a shock.
After all, Intel co-founder and emeritus chairman Gordon Moore is the proponent of Moore’s Law, the observation that the number of transistors in an integrated circuit doubles roughly every two years. It’s also the foundation of much technology sector growth across the decades.
CEO Lip-Bu Tan said in a press release announcing Intel’s second-quarter results that the company is developing its 14A technology “from the ground up in close partnership with large external customers,” noting that future investment will be based on “confirmed customer commitments.”
Management reported a loss of 10 cents per share on revenue of $12.9 billion against a FactSet-compiled consensus for earnings of 1 cent per share on revenue of $11.97 billion. Intel forecast third-quarter revenue of $12.6 billion to $13.6 billion vs a consensus estimate of $12.66 billion.
“We expect it will likely be at least several quarters, if not years, before investors can realistically expect to see material changes in Intel’s design or manufacturing competitiveness, its market share, its foundry business, or its broader financial picture,” writes Benchmark Research analyst Cody Acree.
Acree rates INTC stock a Hold but does not offer a 12-month target price.
NEGG is a new meme stock
On April 24, Newegg Commerce (NEGG, +11.7%) was a $70 million company – $76.2 million, because every little bit counts. As of July 24, NEGG stock had a market capitalization of $598.2 million.
And, on Friday, NEGG burst back above the $700 million barrier. “Back,” indeed, as what clearly qualifies as yet another way to define a meme-stock market traded up to a $959.1 million market cap on July 11.
According to its website, Newegg is “a leading global online retailer for PC hardware, consumer electronics, gaming peripherals, home appliances, automotive and lifestyle technology.”
It also purports to provide “technical solutions in a single platform” for e-commerce. Net sales were $1.24 billion in 2024, down from $1.50 billion in 2023.
“Fundamentals” have given way to “fun,” though, and probably more importantly, Vladimir Galkin – who made an investable fortune on GameStop (GME, -0.8%) and then took a big position in JetBlue Airways (JBLU, +0.5%) – is buying NEGG stock.
Other members of the meme-stock brigade, including AMC Entertainment (AMC, -3.4%), Kohl’s (KSS, -6.2%), Krispy Kreme (DNUT, +2.6%) and Opendoor Technologies (OPEN, +5.0%), careened into the weekend with varying levels of intraday performance.
Railroad M&A and more deals for Buffett’s Berkshire
Union Pacific (UNP, +1.9%) and Norfolk Southern (NSC, +1.6%) are discussing a merger, and there’s talk of a Berkshire Hathaway (BRK.B, +0.8%) move for CSX (CSX, +2.2%) via its BNSF Railway business.
At the same time, Warren Buffett and Greg Abel, his chosen successor to run Berkshire Hathaway’s portfolio, appear to be at a crossroads with Kraft Heinz (KHC, -0.4%).
So will we finally see a true transcontinental railroad?
And what’s next for Kraft Heinz stock?
