Investopedia Markets News (all except PF)

• Eli Lilly shares are expected to move up to 6% by the end of the week following its latest earnings report on Wednesday.
• Analysts expect Eli Lilly to report growing revenue and profits thanks to surging sales of its weight-loss drugs.

Eli Lilly is scheduled to report earnings Wednesday morning, with traders expecting the drugmaker’s stock could potentially approach last month’s highs following the results.

Based on current options pricing, Eli Lilly (LLY) shares are seen swinging up to 6% by the end of the week. A move of that size from Monday’s close could see the shares climb as high as $1,191, just shy of last month’s all-time high, or drag them below $1,052, putting them in negative territory for the year.

Shares of Eli Lilly are up about 4% since the start of the year, recently pulling back from a July 7 record close of $1,235. Sales of its popular weight-loss drugs have helped power strong results in recent quarters, though some uncertainties remain about competition in the weight-loss space.

Eli Lilly’s results come alongside those of rival Novo Nordisk (NVO) on Wednesday, weeks after Novo Nordisk filed a lawsuit against Eli Lilly over the advertising campaigns for Eli Lilly’s weight-loss drugs.

UBS analysts recently wrote that there “might be some natural pullback in the market in the near term” for Eli Lilly following its recent rally, but that they expect gains in the long term, along with an earnings beat and raised forecast Wednesday.

Eli Lilly is projected to report second-quarter revenue of $20.62 billion, up more than 30% year-over-year, and adjusted earnings of $6.68 per share, up from $6.31 in the year-ago quarter, per Visible Alpha estimates. Sales of its weight-loss drugs Mounjaro and Zepbound are seen coming in at $8.88 billion and $4.66 billion, up 71% and 38%, respectively. Sales of its new weight-loss pill Foundayo are forecast at about $101 million after receiving FDA approval in April.

Analysts are broadly bullish on Eli Lilly, with eight of the ten analysts tracked by Visible Alpha rating the drugmaker’s stock a “buy,” while two others hold neutral ratings. Their average price target just above $1,300 would suggest nearly 16% upside from Monday’s close.

• McDonald’s next earnings report is set to be released Tuesday morning, with options pricing suggesting traders see the stock swinging up to 4% by the end of the week.
• Revenue and profits are expected to have grown in the second quarter as McDonald’s has looked to win back customers with value promotions.

McDonald’s is scheduled to release its latest earnings report ahead of the opening bell on Tuesday, with traders anticipating the stock could hit a new two-year low following the results.

Based on recent options pricing, McDonald’s (MCD) shares are seen swinging up to 4% by the end of the week. A move of that size from Monday’s close could see the fast food giant’s shares sink to $255, which would be its lowest point since July 2024. The high end of that range could lift the shares back above $255.

McDonald’s shares are down about 13% since the start of the year, and over 20% from their February highs, when the fast food chain was showing gains with its efforts to win back customers across income levels with a range of value-focused promotions in recent years.

McDonald’s has worked to return to consistent sales growth in recent quarters, with an emphasis on deals and promotions to draw value-conscious consumers.

UBS analysts, recently cutting their price target to $340 from $365, said they see McDonald’s results as “likely to be pressured given a difficult macro backdrop in the US and globally” as the war in Iran drove up prices for businesses and consumers. Still, the analysts said McDonald’s could be poised to grow market share over the next year, thanks to its value-centric efforts and new products like a revamped beverage lineup.

McDonald’s is expected to report second-quarter revenue of $7.13 billion, up 4% year-over-year, along with adjusted earnings per share of $3.32, up from $3.19 a year ago, according to estimates compiled by Visible Alpha. The chain’s comparable store sales are projected to have grown just over 1%.

Analysts are largely bullish on McDonald’s stock, with the eight analysts tracked by Visible Alpha split between six “buy” and two neutral ratings. Their mean price target just shy of $327 would suggest more than 20% upside from Monday’s close.

• SpaceX is slated to report quarterly results for the first time as a public company on Tuesday, with growth expected to be driven by surging AI revenue.
• Experts say SpaceX’s second-quarter results are likely to have less of an impact on the stock than executives’ comments during a post-earnings call and post-IPO lockup expirations.

In less than two months as a publicly traded company, SpaceX has—fittingly, for a rocket company—both seen dizzying highs and fallen back to Earth.

What lies ahead? The company formally known as Space Exploration Technologies (SPCX) will on Tuesday evening offer up its first quarterly financial report since its IPO, submitting CEO Elon Musk to a test of Wall Street’s conviction in his ability to deliver on his bold vision of orbital data centers, interplanetary commerce, and “extend[ing] the light of consciousness to the stars.”

With the company valued at more than $1 trillion, there’s a lot of money at stake. The stock charged out of the gate after staging the largest IPO in history, but it’s mostly been downhill since: The shares closed Monday near $115, roughly half off their all-time high.

Where has that left investors? While Wall Street analysts broadly expect the stock to climb back to and above its highs so far—the mean price target suggests a belief the shares should more than double—the targets tracked by Visible Alpha range from $170 to $800; Some targets not listed by that service are more bearish.

Inside that range, however, is an explanation: The market environment that made artificial intelligence the driver of the stock market’s hottest trades for more than a year, and SpaceX the biggest IPO of all time, has evolved, and SpaceX is caught in the middle as investors now seem more inclined to select AI winners a bit more carefully, contributing to uncertainty about the direction of markets.

Despite its name and high-profile rocket launches, much of SpaceX’s market value is pegged to its AI business. The company in its pre-IPO pitch to investors predicted that AI accounts for 93% of its $28.5 trillion market opportunity.

SpaceX has promised its technology will revolutionize the global economy and spawn entire industries, but for now its business consists of launching rockets, providing satellite internet service, and renting out data centers to train and run AI models.

Analysts expect SpaceX to say revenue grew 68% to $6.85 billion in the second quarter while its loss increased to 19 cents a share from 10 cents a year ago. Growth is expected to be driven by a 175% increase in AI revenue, seen jumping to more than $2 billion last quarter when SpaceX began renting out data center capacity to Alphabet (GOOG), Anthropic, and Reflection AI. Cumulatively, those deals are expected to generate $28 billion in annual revenue, accounting for more than 60% of the AI unit’s estimated 2027 sales. 

AI-powered growth has helped some, but not all, tech stocks lately. High-flying AI shares have met with recent turbulence as ballooning memory prices reinvigorated Wall Street’s worries that tech giants are spending too much on data center infrastructure. 

Alphabet’s strong cloud growth last quarter at first failed to convince investors the huge AI bill it’s racking is worth it, though the shares have since rebounded. Investors remain unsatisfied with the extent of Meta’s (META) AI monetization. Meanwhile, Amazon’s (AMZN) cloud business impressed investors enough they shrugged off its soaring AI spending, on Monday pulling its market value above $3 trillion for the first time.

SpaceX may have a hard time overcoming AI spending jitters considering the murkiness of its AI business. Most investors are assigning little—or even negative—value to SpaceX’s AI unit “given the high [capital spending] requirements” and “largely uncertain economics,” wrote Morgan Stanley analysts in a recent note. They said shares could tumble if its full-year capital expenditures forecast tops Wall Street’s $50 billion estimate. 

Some experts don’t see SpaceX’s earnings moving shares much. Most investors expect “commentary and general tone” to impact the stock more than the results, according to Morgan Stanley.

“I don’t think it’ll get hammered on any disappointing results,” said Paul Meeks, Head of Technology Research at Freedom Capital Markets, who compared Musk’s loyal following of retail investors to a cult. Musk, he predicted, “will do what Musk does,”—that is, wow investors with bold predictions and ambitious timelines.

Investors may also look for signals of other opportunities to enliven the shares. Recent reports suggesting that the company is preparing for a possible merger with Tesla (TSLA), for example, have inflamed deal speculation that has long surrounded both companies.

Still, Musk’s words Tuesday aren’t sure to change the direction of the shares. With results unlikely to move the stock, “the share price [is] largely at the mercy of technical forces (lockup expiry), investor positioning (cautious) and macroeconomic factors,” according to Morgan Stanley.

What do they mean by “lockup expiry” above? Tuesday’s report triggers the first opportunity for insiders and pre-IPO investors to sell their shares. The supply of SpaceX stock will more than double on Thursday when 912 million shares, or 7% of the company, become tradable. More supply can pressure the stock’s price if there isn’t a comparable increase in demand, but it can also increase liquidity, narrow bid-ask spreads, and make the stock less volatile.

Morgan Stanley predicts the impending lockup expiration is already a headwind for the stock. “Bulls have become resigned to waiting past the initial lockup releases to avoid any potential wall of selling,” the analysts wrote. HSBC estimates another 26% of shares will hit markets by the end of the year, a deluge of supply that could outstrip demand and weigh on the share price.

There are, undoubtedly, still signs of investor interest. Retail investors haven’t been net sellers of SpaceX stock any day since its IPO, according to recent Vanda Research data. Cathie Wood’s ARK Investment funds have lately snapped up shares with regularity.

“Simplistically, we think the main issue has been a tactical fear of the upcoming lock-ups, further exacerbated by uncertainty around the AI business, complexity of a potential Tesla merger, and lower than expected passive index buying,” Deutsche Bank analysts wrote Monday. “That being said, we are optimistic following the lock-ups coming off, the stock can stabilize at some level.”

But none of this adds up to a clear message about the right time to catch a falling rocket ship. While investors may still like the big picture for SpaceX, predicting when the shares will start rising again is a sky-high order.

Episode 306 of the Investopedia Express with Caleb Silver (August 3, 2026)

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Is the economy headed toward a recessionary cliff as inflation and dwindling economic confidence pull against productivity gains and CaPex spending? Mark Zandi, Chief Economist of Moody’s Analytics, shows us the possible pathways for the economy and households—and what to brace for.

Plus, the Fed did nothing and said even less, driving long-term bond yields to multi-year highs and causing investors to wonder whether Fed Chair Warsh’s task forces are really here to help.

• Chip stocks have taken a hit in recent weeks. Several Wall Street analysts think they’re poised for a rebound.

• Analysts pointed to signs of improving sentiment around the AI trade after better-than-expected earnings from Amazon and Microsoft.

Semiconductor stocks just had their toughest month in over a decade. Are they due for a rebound?

The PHLX Semiconductor Sector Index (SOX) in July logged its worst month since the 2008 financial crisis, leaving the index more than 20% off its June highs amid a broader pullback in the AI trade. Some investors, however, see the chance of a recovery: Better-than-expected earnings from major chip buyers Microsoft (MSFT) and Amazon (AMZN), which some on Wall Street saw as validating the cloud giants’ AI spending, and a subsequent surge in chip stocks to end last week, could point to a shift in sentiment. 

“Taken together, Microsoft and Amazon earnings results offer the most significant proof points to date that large scale bets on AI will generate tangible returns for customers and infrastructure providers,” analysts at Jefferies wrote in a note Monday, telling clients they believe the negative sentiment surrounding the AI trade in recent weeks may have hit a bottom. Analysts at Citi, Bank of America, and UBS also suggested the big tech giants’ results reinforced their conviction in chip stocks.

Shares of AI chip leader Nvidia (NVDA), which counts both Microsoft and Amazon among its customers, rose 3% Monday, adding to a 3% rise Friday in the wake of earnings from the cloud giants. Qualcomm (QCOM) and Intel (INTC) also advanced, sending the “SOX” index up about 1%. 

Coming earnings could rekindle enthusiasm for the shares. Advanced Micro Devices (AMD), which saw its stock climb 2% Monday, is set to report earnings after the closing bell Tuesday with analysts expecting growing sales and profits on booming AI demand.

And SanDisk and Western Digital are due to release their results later this week.

Analysts at Morgan Stanley told clients in a note Monday that they expect “another strong set” of earnings from AMD, SanDisk, and Western Digital, which remain among the S&P 500’s top performers for 2026 despite their recent slide. AMD shares have more than doubled in value this year so far, while Western Digital has tripled, and SanDisk has soared some 400%. Nvidia’s stock has added 11% year-to-date, in line with the S&P 500.

Nvidia (NVDA) is scheduled to report later this month. 

• Amazon’s market cap surpassed $3 trillion for the first time today.

• Strong earnings and a big rise in Amazon Web Services sales have fueled the stock’s surge lately.

Amazon’s hot post-earnings run continued Monday, lifting the tech giant into the $3 trillion market cap club for the first time.

Shares of Amazon (AMZN) were recently up about 5% to above $285. That had the company valued at nearly $3.08 trillion, good for fifth on the list of the world’s most valuable public businesses.

The stock’s latest move has been driven by the quarterly numbers Amazon turned in after Thursday’s close, which included revenue and earnings that beat Wall Street’s estimates and showed Amazon Web Services sales rising 37% to $42.2 billion, nearly $2 billion above estimates.

The shares had closed Thursday at $235.50, meaning that at today’s highs they’d risen more than 20% since. Recent prices put the company’s market value at around $3.07 trillion. Nvidia remains the most valuable company at last check, its value holding above $5 trillion after reclaiming the top spot from Apple.

• Palantir shares popped in extended trading Monday after the software maker raised its outlook and posted quarterly results that topped analysts’ expectations.
• The move could point to a rebound for Palantir’s stock, which has taken a big hit lately.

Could Palantir’s strong results be enough to drive a rebound for the software maker’s stock?

Shares of Palantir (PLTR), which climbed 2% in Monday’s regular session, were up nearly 14% in extended trading after the software maker raised its outlook and posted second-quarter earnings that topped analysts’ expectations on growing demand for its Artificial Intelligence Platform.

Palantir said it now expects $8.15 billion to $8.16 billion in revenue this year, up from $7.65 billion to $7.66 billion previously. The company reported adjusted earnings per share of $0.41 on revenue that nearly doubled year-over-year to $1.93 billion in the second quarter, ahead of estimates compiled by Visible Alpha.

CEO Alex Karp said in a letter to shareholders that Palantir’s core business in the U.S. “continues to expand at an unrelenting and breakneck pace,” and that its commercial segment, which saw domestic sales surge 149% to $764 million, “is on fire.”

Monday’s after-hours action could be a promising signal for the stock, which has taken a hit in recent months amid worries about AI disrupting the software industry, along with some fears that last year’s rally left Palantir’s stock overvalued. Through Monday’s close, the shares were down nearly 30% for the year and roughly 40% off their November highs.

Analysts have stayed broadly bullish on Palantir despite this year’s slide, with several calling the pullback a buying opportunity, and suggesting growing AI adoption could prove more of a boon than a threat to Palantir. Ahead of Monday’s report, four of the six analysts tracked by Visible Alpha held “buy” or equivalent ratings for the shares, compared to two neutral ratings.

This article has been updated since it was first published to include Palantir’s second-quarter results and reflect more recent stock prices.

• GameStop shares fell below $20, marking their first decline into negative territory for 2026.
• The drop follows GameStop’s plan to exchange $1.4 billion in debt for common stock, potentially diluting shareholders.

Shares of GameStop fell into negative territory for 2026 for the first time today. 

GameStop (GME), the meme stock and video game retailer that hopes to merge with eBay (EBAY), was recently down roughly 14% to below $19 per share. The move below December’s close just a few cents over $20 marked the stock’s first move into the red for 2026. 

Some of today’s move may be driven by the news that GameStop plans to exchange $1.4 billion of its debt for common stock, a move that some investors may see as diluting their holdings. Shareholders had approved an increase to shares outstanding at the company’s annual meeting in July. 

The latest drop in GameStop’s shares extends an up-and-down year for the stock, which at one point in May traded near $27. The company that month offered to acquire eBay in a cash-and-stock deal that valued the online marketplace at $125 per share; eBay has not accepted the offer. 

An early version of this article incorrectly referred to GameStop as “GameStock.” This article has also been updated since it was first published to reflect the latest market data.

• Bristol Myers Squibb shares rose Monday following reports of merger talks with AstraZeneca.
• Such a deal could create a drugmaker valued at nearly $400 billion.

Bristol Myers Squibb stock is surging Monday following a report of a potential mega-merger with a competitor.

Shares of Bristol Myers Squibb (BMY) were up over 4% in premarket trading to their highest point since early 2023 following a report that the company held merger talks with AstraZeneca (AZN), according to The Financial Times. AstraZeneca’s U.S.-listed shares slid 6%.

Late Sunday, the FT reported that the two companies have discussed a merger in recent months to create a combined drugmaker that could be valued at nearly $400 billion. The report said, however, that it could be dropped over worries about potential political pushback and the close competitive nature of several of the companies’ drugs, including cancer treatments.

AstraZeneca declined to remark on the report, and Bristol Myers Squibb did not immediately respond to a request for comment.

Such a deal could give AstraZeneca greater access to the U.S. market. The U.K.-based drugmaker completed a direct listing on the New York Stock Exchange back in February after delisting its American Depositary Receipts from the Nasdaq, and last year said it plans to invest $50 billion to expand its manufacturing and research efforts in the U.S. by 2030.

Through Friday’s close, AstraZeneca shares were down 3% for 2026, while Bristol Myers Squibb shares have gained more than 20%.

News of the day for Monday, August 3

Stock futures are pointing to a higher open to kick off August trading as investors look ahead to a packed week of earnings reports; oil prices are tumbling after the U.S. paused strikes on Iran over the weekend; SpaceX is due to reports earnings for the first time this week, headlining a busy week of corporate results; Palantir is scheduled to release its earnings report after the closing bell today; and shares of AstraZeneca and Bristol-Myers Squibb are moving sharply following a report that the pharmaceutical giants have discussed a potential merger. Here’s what you need to know today.

Stock futures are higher this morning while oil prices are sliding after President Trump over the weekend said the U.S. military would pause strikes in Iran (more on that below). Dow Jones Industrial Average futures were up 1.1% in recent trading, while futures tied to the S&P 500 and the tech-heavy Nasdaq added 0.6% and 0.2%, respectively. The major indexes posted gains last week despite volatile trading fueled by Big Tech earnings reports and the Federal Reserve’s decision on interest rates. In July, the Nasdaq dropped more than 3%, while the Dow and S&P 500 finished the month little-changed. WTI crude oil futures were down 6% at just under $80 per barrel as investors tracked the Iran war developments. Gold futures were up slightly at $4,120 an ounce, while bitcoin traded around $62,500, down from a Friday high north of $65,000. The 10-year Treasury yield, which affects interest rates on loans, was at 4.67% recently, down from Friday’s close of 4.74%, its highest level since January 2025.

A day after making renewed threats to continue hitting Iran “very hard,” President Trump said late Saturday that Iran and other countries in the region had asked for a pause in strikes to discuss a deal. The president said on social media that the “perimeters of a deal” had been agreed to, and told reporters Sunday that talks would begin Monday, without specifying who would take part or where the talks would be held. Iranian officials have said through state media that Iran is not currently negotiating with the U.S., only with Oman to create a safe pathway through the Strait of Hormuz, per The Associated Press. WTI crude oil futures, the U.S. benchmark, were down 6% to $79.50 per barrel recently, while Brent futures, the international standard, fell more than 5% to $83.30.

The second-quarter earnings season rolls along this week, with SpaceX (SPCX) in focus as it prepares to release quarterly results tomorrow afternoon for the first time since its massive IPO in June. Data analytics software giant Palantir (PLTR) and On Semiconductor (ON) are scheduled to release their numbers after today’s closing bell, while Caterpillar (CAT), Advanced Micro Devices (AMD), McDonald’s (MCD) and Pfizer (PFE) are among the big-name companies set to report on Tuesday. Weight-loss drugmakers Eli Lilly (LLY) and Novo Nordisk (NVO) are scheduled to release results on Wednesday, as are Disney (DIS), Uber (UBER), CVS Health (CVS), DoorDash (DASH), Sandisk (SNDK) and Western Digital (WDC). Aside from earnings, investors are awaiting the release of the July jobs report on Friday.

Palantir is scheduled to report second-quarter results after markets close today. Palantir was one of the hottest stocks in tech last year, peaking at a record high of $207 last November, but shares have lost around 40% of their value since. Investors have grown concerned about the impact AI could have on the broader software market, and some market watchers—including “Big Short” investor Michael Burry—have voiced concerns that last year’s rally left Palantir overvalued. The company is expected to report revenue of $1.81 billion for the second quarter, up 80% year-over-year, along with adjusted earnings of 35 cents per share, but solid earnings haven’t been enough to lift the stock out of its slide so far this year. Shares were up 2% premarket.

Pharmaceutical giants AstraZeneca (AZN) and Bristol-Myers Squibb (BMY) have held talks on a potential merger that would value the combined company at around $400 billion, according to The Financial Times. Late Sunday, the FT reported that the two companies have discussed a merger, while noting that the deal could be abandoned over worries about potential political pushback and the close competitive nature of several of the companies’ drugs, including cancer treatments. U.S.-listed shares of England-based AstraZeneca were down 4% premarket, while Bristol-Myers Squibb shares rose 5%, putting them on track to hit their highest level since May 2023.