WS #13015
The dominant signal in this window is the continued escalation of US-Iran tensions, with a drone strike hitting a US-owned LNG tanker at Damietta Port, Egypt, corroborated by multiple sources. This escalates the geopolitical risk narrative, supporting oil prices and pressuring risk assets. The Nasdaq 100 has entered correction territory, and the S&P 500 fell after the Fed decision, with the dollar weakening as rate hike bets are pared. On earnings, Meta (META) missed badly (EPS $6.18 vs $7.18, weak Q3 guidance), sending the stock down ~9% after hours, while Microsoft (MSFT) beat (EPS $4.74 vs $4.24, Azure +43%) and rose ~3.5%. Qualcomm (QCOM) reported a slight EPS miss and light guidance, but announced price increases. Lam Research (LRCX) smashed estimates and issued strong guidance. Other notable beats include Starbucks (SBUX), Robinhood (HOOD), Fortinet (FTNT), and Carvana (CVNA). The narrative arc is ESCALATING on US-Iran tensions, with oil and Treasury yields as key transmission mechanisms, while earnings season produces divergent outcomes across tech.
Topics
Key developments
- Drone strike hits US-owned LNG tanker at Damietta Port, Egypt
- Meta Q2 EPS $6.18 misses $7.18 estimate, weak Q3 guidance; stock down ~9% after hours
- Microsoft Q4 EPS $4.74 beats $4.24, Azure +43%; stock up ~3.5% after hours
- Qualcomm Q3 EPS $2.21 misses $2.23, light Q4 guidance; announces price increases from Sept 1
- Lam Research Q4 EPS $1.82 beats $1.68, strong guidance; stock up after hours
- Starbucks Q3 EPS $0.85 beats $0.65, US comp +8.1%; stock soars
- Nasdaq 100 enters correction, S&P 500 falls after Fed decision; dollar weakens
- Trump threatens retaliatory strikes against Iran; wants Iran tariffs added to Russia sanctions bill