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Palo Alto Networks shares have more than doubled in value since the start of the year.
Credit: Chris Jung / NurPhoto / Getty Images

Key Takeaways

• Palo Alto Networks is set to report earnings Tuesday afternoon, with the cybersecurity stock seen potentially rising to a fresh record following the results.
• The company is projected to report a more than 30% jump in revenue from a year earlier.

Palo Alto Networks is scheduled to report earnings after the closing bell Tuesday, with the cybersecurity stock seen potentially climbing to a fresh high in the days that follow.

Current options pricing suggests traders expect Palo Alto Networks (PANW) shares could swing up to 8.5% in either direction by the end of the week following the results. A move of that size from Friday afternoon’s level around $370 could see the shares rally as high as $402, topping a record set earlier this month, or drag them below $339.

Palo Alto Networks shares have roughly doubled in value since the start of the year, as worries about AI disrupting the cybersecurity software space have eased. Palo Alto Networks shares hit a record high earlier this month, as a series of AI-related hacks added fuel to expectations that developments in AI would drive spending on cybersecurity.

Why This Matters to Investors

A solid report from Palo Alto Networks could further improve sentiment around the cybersecurity sector.

Earlier this month, UBS analysts lifted their price target for the stock to $390 from $300, but warned Palo Alto Networks could face a more challenging setup to impress after the stock’s big rally over the last several months. Expectations are also running high after stronger-than-anticipated earnings from rival CrowdStrike (CRWD).

Palo Alto Networks is projected to report fiscal fourth-quarter revenue of $3.35 billion, a more than 30% rise year-over-year, with adjusted earnings of 98 cents per share, up 3 cents from the same time last year, per Visible Alpha estimates.

Analysts are mostly bullish on Palo Alto Networks, with nine of the 12 analysts tracked by Visible Alpha holding “buy” recommendations, compared to three neutral ratings. Their mean target of $374 would suggest just a 1% rise from the stock’s recent level, however, after its torrid rally.

Dell shares have surged some 260% since the start of the year.
Credit: Chris Jung / NurPhoto / Getty Images

Key Takeaways

• Dell’s next earnings report is set to be released after markets close Tuesday, with the server maker’s stock seen nearing its recent highs after the results.
• Sales and profits are expected to have surged in Dell’s second quarter amid growing demand for the company’s servers to be used in AI data centers.

Dell Technologies is set to release its latest quarterly earnings after the closing bell Tuesday, with the computer and server maker’s stock seen nearing its recent highs.

Current options pricing suggests traders expect Dell (DELL) shares could swing up to 10% in either direction by the end of the week following the results. A move of that size from Friday afternoon’s level around $460 could see the stock rally as high as $506, approaching a record high of $514 reached earlier this month. The low end of that range would be $413, giving back some of the stock’s gains this year.

Dell’s stock has soared some 260% in 2026 so far, making it one of the biggest gainers in the S&P 500 this year amid growing demand for the company’s servers in AI data centers. Back in May Dell topped estimates with its quarterly results and lifted its full-year forecast, sending shares up more than 30% in a single session.

Why This Matters to Investors

Dell’s earnings come after a volatile stretch for the AI trade, as worries around the sustainability of spending on hardware have rattled confidence in the sector.

Morgan Stanley analysts wrote ahead of the results that Dell and other hardware makers face elevated expectations, with Wall Street looking for a big bump in Dell’s full-year profit forecasts as prices have surged in recent months.

Analysts are looking for Dell to report second-quarter revenue of $45.19 billion, up more than 50% year-over-year. Adjusted earnings per share are seen coming in at $4.91, more than double what Dell reported the same time a year ago, according to estimates compiled by Visible Alpha.

Wall Street analysts are largely bullish on Dell, with the six analysts tracked by Visible Alpha split between five “buy” and one neutral rating. Their average price target of $505 would suggest around 10% upside from the stock’s recent level.

A data center under construction in Garland, Texas, in March 2026.
Credit: Tom Fox / Getty Images

Key Takeaways

• The AI boom helped push the U.S. goods trade deficit to $119 billion in July, its highest since March 2025, as companies imported boatloads of foreign-made computer equipment.
• The deficit will likely show up as a negative in third-quarter GDP data due in October.
• Economists say the imports don’t signal real weakness, even though they’re tallied as a negative in GDP.

A surge in AI investment is about to make the U.S. economy look weaker on paper than it is.

Economists saw the fingerprints of the AI boom Thursday, when the Census Bureau reported the U.S. imported $119 billion more in goods than it exported in July. That’s the widest monthly gap since March 2025, when importers rushed shipments ahead of the first tariff rounds. Exports fell and imports rose, with the increase concentrated in capital goods, which ran 48% above their July 2025 level.

Much of that capital goods spending is equipment for the AI data center buildout. AI-related products—a category the Federal Reserve Bank of Minneapolis defines broadly to include cooling systems and electrical gear, not just chips—made up 23% of all U.S. imports in 2025, according to an April staff report by the Minneapolis Fed.

Why This Matters for the Economy

If you’re watching gross domestic product (GDP) as a read on the economy—for a picture of the jobs market, rate expectations, or your portfolio—October’s third-quarter number will understate how things actually stand. The AI import surge that drags the number down is evidence of investment, not contraction.

All those foreign-made computers will show up as a glaring negative in October, when the Bureau of Economic Analysis releases its advance estimate of third-quarter GDP. Economists at Pantheon Macroeconomics estimate the gap will shave more than a full percentage point off annualized third-quarter growth.

But experts say the surging trade deficit doesn’t indicate real weakness in the economy despite the negative number attached to it in GDP calculations. For one thing, the same imports subtracted from GDP are added back in the consumer spending, business investment, and government spending columns, depending on who buys them. GDP measures domestic production, so imports should wash out in the final accounting.

Second, the imports are feeding a booming industry, which should help the economy grow—assuming the AI trade doesn’t turn out to be a gigantic bubble.

“While the wider than expected trade deficit will weigh on Q3 [third quarter] GDP growth, it reflects the strong demand for AI-products, not U.S. economic weakness,” Kathy Bostjancic, chief economist at insurer and financial services firm Nationwide, wrote in a commentary. “Given the strong momentum in real consumer spending, ongoing strength in AI capex, and this morning’s higher than forecast rise in retail and wholesale inventories, real GDP growth in Q3 looks solid.”

Kevin Warsh, chair of the U.S. Federal Reserve, arrives for dinner during the Kansas City Federal Reserve’s Jackson Hole Economic Policy Symposium in Wyoming on Thursday.
Credit: David Paul Morris / Getty Images

Key Takeaways

• Fed Chair Kevin Warsh used a landmark speech to signal the Fed’s determination to get inflation under control, and markets inferred a willingness to raise the Fed’s benchmark interest rate to do so.
• Bets on a rate hike surged after the speech, with markets now pricing in slightly better than coin-flip odds that the Fed will hike rates at its September meeting.
• Warsh pointedly refused to offer “forward guidance” on Fed policy, saying he was leaving it to the markets to price in the Fed’s next moves based on economic data.

Fed Chair Kevin Warsh refuses to offer “forward guidance” to financial markets about the Fed’s interest rate plans—but investors are taking hints where they can.

Warsh used his speech at the Jackson Hole economic conference Friday to denounce the Fed’s past practice of telegraphing its policy moves. The central bank, he said, would better fulfill its dual mandate—inflation down, employment high—if it stays tight-lipped. To that end, he didn’t explicitly say whether the Fed should raise its benchmark interest rate to force inflation down to its 2% annual target after more than five years of above-target price increases. Nevertheless, traders saw hawkish signals in his remarks.

As of late Friday morning, financial markets were pricing in a 60% chance the Fed will raise the Fed funds rate by a quarter-point, up from 35% before the speech, according to CME Group’s FedWatch tool, which derives rate-move odds from Fed funds futures prices.

Warsh’s speech was a chance for the Fed chair to assert the central bank’s credibility after a month in which bond yields climbed, suggesting wavering faith in the Fed’s willingness to push down inflation. Yields on 30-year Treasurys held steady after the speech—a sign of some success on that front.

“Market prices show confidence that we will deliver price stability, and I can assure you, they’re right,” Warsh said.

What This Means For The Economy

Financial markets increasingly expect Fed Chair Warsh to back up his tough talk on inflation with a rate hike. The main question is when. Rate hikes could bring short-term pain to the economy, but they could support growth in the long term if higher rates help get inflation under control.

Warsh also said the Fed would take action to keep inflation expectations from rising, though he didn’t specify what that action would be or what data would trigger it.

“We must be confident that underlying inflation is moving to our objective clearly and at sufficient speed. Otherwise, we have work to do,” he said.

Warsh said the job market, with unemployment low, was consistent with the Fed’s objective of full employment despite sluggish hiring. Inflation, though, remained too high, he said, even as recent Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE) readings showed price increases decelerating.

“While this summer’s PCE and CPI readings were better than expected, they do not tell me that underlying trends have meaningfully improved,” he said.

He also committed to meeting the Fed’s 2% goal under its current measures, pushing back against criticism that he was considering moving the goalposts by changing the way the Fed calculates inflation.

“The Fed’s price stability objective of 2%, as measured by the PCE price index, is a firm, fixed target,” he said.

Putting two and two together, analysts concluded that this means a rate hike is firmly on the table, if not inevitable.

“I would say Warsh was successful in reestablishing confidence,” Larry Holzenthaler, senior portfolio manager at Catalyst Funds, wrote in a commentary. “He came across as very focused on inflation and bringing it back in line with the Fed’s 2% target... Investors should clearly expect that the Fed is going to raise rates if it needs to.”

Even with Friday’s slump, Marvell shares are still up over 160% since the start of the year.
Credit: Lam Yik Fei / Bloomberg via Getty Images

Key Takeaways

• Marvell Technology shares dropped Friday after the company narrowly beat earnings and revenue estimates.
• Investors may have wanted to see more upside from Marvell’s custom chip deal with Google.

A day after rallying on the back of strong results from Nvidia, the AI trade is stumbling to close out the week.

Marvell Technology (MRVL) shares were down nearly 6% in recent trading, leading several AI-related stocks lower. Shares of Nvidia (NVDA), Intel (INTC), Advanced Micro Devices (AMD), Micron (MU), and Sandisk (SNDK) slipped less than 1%, on a day when broader markets gained.  

Last night, Marvell posted revenue of $2.74 billion and adjusted earnings of 94 cents per share, each narrowly topping the Visible Alpha analyst consensus of $2.71 billion and 93 cents per share. The midpoint of Marvell’s third-quarter revenue and adjusted EPS forecasts also slightly beat estimates at $3.15 billion and $1.10, respectively.

Investors may have been hoping for a bigger beat, amid a rush of spending from big tech companies on AI hardware, along with a custom chip deal with Google parent Alphabet (GOOGL). Jefferies analysts called it “somewhat disappointing” that there wasn’t more upside  from the deal with Google in Marvell’s projections for this year.

Marvell CEO Matt Murphy said the chip designer’s AI demand remains “exceptionally robust,” leading the company to lift its revenue forecasts for this year and its next fiscal year. Citi analysts highlighted comments from Marvell executives that the company expects a “significant acceleration” in its custom chip business in the back half of this fiscal year.

Even with Friday’s decline, Marvell is still one of the best performing stocks in the S&P 500 this year, with shares up over 160% in 2026.

PayPal was the biggest decliner in the S&P 500 Friday.
Credit: Omar Marques / SOPA Images / LightRocket via Getty Images

Key Takeaways

• PayPal shares dropped in the wake of reports that Stripe and Advent have abandoned their takeover bid.
• Stripe and Advent previously offered $53 billion to take PayPal private.

PayPal shares are slumping in the wake of a report from Bloomberg that Stripe and Advent have abandoned their takeover offer for the payments company.

Shares of PayPal (PYPL) were down nearly 12% in recent trading, dragging the stock into negative territory for the year. It was the biggest decliner in the S&P 500 and Nasdaq on a day when broader markets gained.

Back in July, Reuters reported that Stripe, a fellow payment processing company, and Advent, a private equity firm, made a $53 billion offer to take PayPal private following an extended stock slump driven by disappointing earnings and a CEO change.

The Wall Street Journal reported earlier this month that PayPal considered the initial offer to be “insufficient,” with negotiations taking place at the time around a higher price, but the latest report from Bloomberg suggests Stripe and Advent are abandoning their bid.

PayPal and Stripe declined to comment. Advent did not respond to Investopedia’s request for comment in time for publication.

This article has been updated since it was first published to reflect PayPal declined to comment.

Gap shares are surging before the bell Friday.
Credit: Marcin Golba / NurPhoto via Getty Images

Key Takeaways

• Gap stock surged 15% after the company announced a leadership change at Old Navy.
• Michael Francis will replace Haio Barbeito as Old Navy’s CEO starting Nov. 2.
• Gap’s quarterly earnings beat profit forecasts, but revenue slightly missed expectations.

Gap (GAP) stock is rallying following a big management change that came alongside the apparel retailer’s latest quarterly earnings report.

Last night, Gap announced the appointment of Michael Francis as the new CEO of its struggling Old Navy unit, replacing current CEO Haio Barbeito as of Nov. 2.

Weakness at Old Navy and Gap’s other brands has been a focus for analysts who have downgraded the stock recently.

Gap also reported earnings last night, posting revenue of $3.65 billion, just below estimates, while adjusted earnings per share of 52 cents topped forecasts, with the retailer also lifting its profit forecast for the full year.

Gap shares were up 15% in recent trading but remain down 7% for the year.

Affirm shares soared before the bell Friday.
Credit: Thomas Fuller / SOPA Images / LightRocket via Getty Images

KEY TAKEAWAYS

• Affirm shares surged after the company beat fiscal fourth-quarter revenue and profit expectations.
• The company reported 36% year-over-year growth in gross merchandise volume and projects over $64 billion in GMV for fiscal 2027.

Is a “breakout on tap” for shares of Affirm?

That’s what analysts at William Blair think after the buy-now-pay-later (BNPL) firm’s better-than-expected fiscal 2026 fourth-quarter results and rosy outlook.

And it may have already begun :Affirm (AFRM) shares are soaring 12% early Friday, a day after the company posted fiscal fourth-quarter revenue of $1.17 billion, gross merchandise volume (GMV) of $14.06 billion, and adjusted operating income of $353.4 million. All three figures topped the mean estimates of analysts surveyed by Visible Alpha.

The move has the stock above $87 per share, marking its highest prices of the year. Affirm’s report pointed to a move toward $112, more than 40% above yesterday’s close.

“Affirm continues to distinguish itself from peers, with robust 36% year-over-year GMV growth,” wrote William Blair analysts, who have an “outperform” rating on the stock. For the year, Affirm posted GMV of $50.17 billion, up 37% from fiscal 2025.

“Affirm’s growth can no longer be explained away by the novelty of our product, and our steady credit outcomes demonstrate our commitment to responsible growth with robust unit economics,” founder and CEO Max Levchin said.

For fiscal 2027, Affirm sees GMV of “more than $64 billion,” above Visible Alpha consensus of $63.8 billion. William Blair’s analysts said that guidance is “a conservative baseline.”

This article has been updated to reflect the start of regular trading.

News of the day for Aug. 28, 2026

Major indexes gained on Thursday as tech stocks soared after a strong earnings report from Nvidia.
Credit: Michael Nagle / Bloomberg / Getty Images

Stocks are pointing to a quiet open Friday as investors look ahead to a speech from Federal Reserve Chair Kevin Warsh; the central bankers is scheduled to speak this morning at the annual Jackson Hole economics conference; tech stocks are pulling back from yesterday’s big gains after Marvell’s latest earnings just slightly topped estimates; PayPal shares are falling on a report that Advent and Stripe are dropping their $50 billion bid for the payments giant; and Gap shares are rallying after the retailer announced a change in leadership at its struggling Old Navy unit. Here’s what you need to know today.

Stock Futures Mixed Ahead of Fed Chair Speech

Stock futures are holding steady this morning after closing sharply higher yesterday. Futures tied to the Dow Jones Industrial Average were up 0.1% recently, while S&P 500 futures hovered near unchanged and Nasdaq futures slipped 0.3%. All three indexes rose yesterday, led by the tech-heavy Nasdaq’s 1.6% gain, as investors reacted to strong earnings reports from AI chip giant Nvidia (NVDA) and other tech and software companies. WTI crude oil futures were down 0.7% recently at just under $83 per barrel, while gold futures fell slightly to $4,645 an ounce. Bitcoin was trading at $79,600, down from an overnight high of $81,500. The yield on the 10-year Treasury rose to 4.69% from 4.67% at yesterday’s close.

Investors Await Warsh Comments on Inflation

Federal Reserve Chair Kevin Warsh is set to make his first keynote address at the annual Kansas City Fed conference in Jackson Hole, Wyoming at 10 a.m. ET. Warsh, who took over the top spot at the central bank in May, has said the Fed won’t be providing forward guidance on interest rates under his leadership. Uncertainty about whether the Fed will raise interest rates amid ongoing inflationary pressure has sparked volatility in bond markets in recent weeks. Analysts say Friday’s speech could offer Warsh a chance to “clarify his vision” for the Fed and its plans to combat inflation.

AI Trade Stumbles Following Marvell’s Earnings Report

A day after rallying on the back of strong results from Nvidia, the AI trade is on the back foot again to close out the week following the latest earnings report from AI chip designer Marvell Technology (MRVL). After the bell last night, Marvell reported second-quarter revenue of $2.74 billion and adjusted earnings of 94 cents per share, each narrowly topping the Visible Alpha analyst consensus. Investors may have been hoping for a bigger beat amid the ongoing rush of spending from big tech companies on AI hardware. Marvell shares were down 8% in recent premarket trading, while several other hardware makers including Nvidia and Intel (INTC) are pulling back from yesterday’s gains.

PayPal Stock Tumbles On Report of Advent, Stripe Dropping Takeover Bid

Shares of PayPal Holdings (PYPL) are slumping this morning following a report from Bloomberg that Stripe and Advent are dropping their takeover offer for the payments company. Back in July, Reuters reported that Stripe, a fellow payment processing company, and Advent, a private equity firm, had made a $53 billion offer to take PayPal private following an extended stock slump driven by disappointing earnings and a CEO change. The Wall Street Journal reported earlier this month that PayPal considered the initial offer to be “insufficient” with negotiations taking place at the time around a higher price, but the new report from Bloomberg suggests that Stripe and Advent are abandoning the potential acquisition. PayPal shares were down 15% ahead of the opening bell.

Gap Stock Jumps as Old Navy Unit Gets New CEO

Gap (GAP) stock is rallying following a big management change that came alongside the apparel retailer’s latest quarterly earnings report. Last night, Gap announced the appointment of Michael Francis as the new CEO of its struggling Old Navy unit, replacing current CEO Haio Barbeito as of Nov. 2. Weakness at Old Navy and Gap’s other brands has been a focus for analysts who have downgraded the stock recently. Gap also reported earnings last night, posting revenue of $3.65 billion, just below estimates, while adjusted earnings per share of 52 cents topped forecasts, with the retailer also lifting its profit forecast for the full year. Gap shares were up 16% in recent trading.

New state-by-state data puts the cost of tariffs at $343 billion since 2025. However, some states are hit harder than others.
Credit: Investopedia

Key Takeaways

• U.S. importers have paid $343 billion in executive tariffs since January 2025, with Michigan, Georgia, and other auto-heavy states bearing the highest costs per household.
• Refunds from voided tariffs have boosted corporate profits, but consumers may not see the benefits due to limited refund pass-through.
• A new U.S.-Canada trade dispute is set to increase tariff costs for northern and industrial states, those already most impacted by executive tariffs.

Tariffs apply nationally, but the cost is landing hardest on the states that build the cars and machinery that the duties were supposed to protect.

Executive tariffs—those imposed by presidential action on top of regular statutory duties—have cost U.S. importers about $343 billion since January 2025, according to state-level data released Wednesday by the National Taxpayers Union Foundation. California leads with $63 billion, followed by Texas at $37 billion and Michigan at $23 billion.

Raw totals, though, skew toward the bigger states. When measured per household, Michigan moves to the top slot at $5,619. That’s more than 30 times the District of Columbia, which had the lowest total per household in the country.

Why This Matters to You

Importers pay tariffs upfront, but the cost can spread across the economy through higher prices, thinner margins, and slower hiring. Your exposure depends not just on what you buy, but also on the industries that support the jobs where you live.

The auto belt ranks highest in tariffs per household. Michigan, Georgia, South Carolina, Tennessee, and Kentucky all rank in the top seven. For each, vehicles, auto parts, or metals account for the largest share of duties.

“The highest exposure states tend to be those that rely especially heavily on imports of inputs used to produce goods,” said Bryan Riley, director of NTUF’s Free Trade Initiative.

When President Donald Trump imposed auto tariffs in April 2025, he said they were designed to “shift manufacturing activity into the United States” and “create jobs in the automotive industry.” But Riley said that higher import prices in states like Michigan and Georgia are “making it harder for them to grow and to create new jobs.”

Thirty-seven of the 52 jurisdictions, which include Washington, D.C. and Puerto Rico, have paid more than $1 billion in tariffs. Montana, Wyoming, and Alaska had the smallest totals.

But lower totals don’t mean less exposure. The tracker assigns duties by the state where imports land, Riley said, and once those goods ship onward, the burden passes to Americans in other states.

The state figures are the sum since the beginning of the second Trump administration, roughly 18 months. Annual estimates from other groups put the household cost at a lower level.

Yale’s Budget Lab estimates tariffs are costing households about $1,100 per household a year under current law. The Tax Foundation puts the 2026 figure at $840 per household, down from $1,000 in 2025, because new tariffs haven’t fully replaced the ones the Supreme Court struck down in February.

The court’s ruling puts an asterisk on these totals. The justices voided tariffs imposed under the International Emergency Economic Powers Act (IEEPA), the statute the administration used for its first round of duties. Customs and Border Protection refunded about $71 billion in May and June, most of it IEEPA money. Well over half of the $166 billion collected under that authority has yet to be paid back.

NTUF’s totals don’t subtract those refunds, Riley said, because their figures measure the hit to each state when the duties were collected.

Another matter is whether those refunds will reach the customers who paid at the cash register, not just the companies that paid at the border. Annualized corporate profits surged by a near-record $400 billion in the second quarter due in part to tariff refunds. Some companies say they’ll pass refunds along to consumers, but some businesses, specifically small ones, often lack the accounting systems to trace a refund back to the customers who paid, Riley said.

Then there’s the latest escalation in the administration’s trade wars. The U.S. imposed 50% tariffs on about $20 billion in Canadian imports on Saturday, including goods ranging from hockey sticks to dog muzzles, after trade talks collapsed Friday night.

Canada said Tuesday it plans to match those duties dollar for dollar on U.S. metals and wood starting Sept. 8, alongside a $7.5 billion aid package for its own businesses. Canada is the top trading partner for most northern and industrial states, so the same states that lead in the rankings will soon face an even steeper tariff tab.