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This is an edition of the Markets P.M. newsletter, a recap of the day’s most important markets moves, delivered after the closing bell. If you’re not subscribed, sign up here.
What Happened in Markets Today
Stocks were reluctant to move as tensions with Iran ratcheted higher once again. President Trump said he would attack Iran’s infrastructure if Tehran were to strike ships in the Strait of Hormuz. The S&P 500 was down 0.1%, and the Nasdaq Composite index slipped 0.6%. The Dow Jones Industrial Average shed just 6 points, or less than 0.1%.
Brent crude futures touched $95. The Wall Street Journal writes that threats to energy infrastructure around the world, from Hormuz to the Black Sea, are on the rise, with oil at the heart of two major conflicts. Brent is now priced about $20 more per barrel than it was earlier this month.
GE Vernova shares sold off, despite strong earnings. The energy company raised its revenue guidance and its forecast for margins after a surge in new orders. But perhaps reflecting how extreme some investors’ expectations were, its shares tumbled more than 8%, leading decliners in the S&P 500.
Super Micro Computer led the S&P 500. The server company said that its quarterly gross margins will be twice as high as it previously forecast. Even bulls couldn’t ignore that kind of revision. The stock surged almost 20% on the day, topping gainers in the index. Dell Technologies, another server company, jumped more than 9%.
Markets at a Glance
One Big Story
Are Cartier Love bracelets about to replace the Hermès Birkin bag as the product that drives the best shareholder returns in the luxury-goods industry?
For years, Hermès was the go-to for anyone who wanted a company that could grow sales through thick and thin, thanks to seemingly bottomless demand for the Birkin handbag. But lately, the brand has been unusually weak. Meanwhile, sales at Cartier’s owner Richemont have been booming for around 18 months.
Hermès still has an edge. Its Birkin handbags continue to sell at a premium to retail prices in the secondhand market. This suggests that investors’ worries that the brand’s top product is losing its appeal are overblown.
What’s Coming Up
On Thursday, RTX, Blackstone, Comcast, American Airlines and Intel headline another day of big-company, second-quarter earnings reports.U.S. economic data will be thin, with weekly jobless claims and the Kansas City Fed Survey as the major releases.Across the pond, the European Central Bank will be making its next interest-rate decision. It is expected to hold steady, but might signal hikes ahead.
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About Us
Markets P.M. catches you up on the day’s most important markets moves, delivered after the closing bell. This email was written by Telis Demos, a writer for Heard on the Street, The Wall Street Journal’s home for financial analysis and commentary. To send us your feedback, reply to this email. Got a tip for us? Here’s how to submit.