Bridging the gap between uncertainty and the stock market

Stock Region Market Briefing - Thursday, August 21, 2025 | Time: 5:00 PM ET

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Disclaimer: Before we dive in, remember: this newsletter is for informational purposes only. It’s not financial advice, and we’re not fortune-tellers (though we wish we were). Always consult a financial advisor before making investment decisions.

Hey Stock Region Fam, Let’s Talk Markets!

Today was one of those days where the market felt like a rollercoaster—except the kind where you’re not sure if you’re screaming from excitement or fear. The S&P 500 and Nasdaq both dipped for the fifth time in six sessions, and the Dow wasn’t far behind. But don’t let the red ink fool you—there’s plenty of action worth dissecting.

Grab your coffee (or something stronger), and let’s break it all down.

The Big Picture: Fed Jitters and Stagflation Whispers

The Federal Reserve is back in the spotlight, and not in a good way. Kansas City Fed President Schmid and Cleveland Fed President Hammack both made it clear: rate cuts aren’t coming anytime soon. Inflation is still too high, and the data isn’t helping.

• Philadelphia Fed Index: Dropped to -0.3 in August (ouch).

• Jobless Claims: Up to 235,000, higher than expected.

• PMI Data: Manufacturing is back in growth mode, but input prices are climbing.

Translation? The economy is giving off some stagflation vibes—slowing growth with rising prices. Not exactly the dream scenario.

Corporate Buzz: Who’s Making Waves?

Honeywell (HON, $217.42, +0.42)

Honeywell is spinning off Solstice Advanced Materials, a specialty materials company that’s all about semiconductors, healthcare packaging, and refrigerants. Solstice is set to go public later this year, and they’ve got an Investor Day on October 8.

Why it matters: Specialty materials are a growth goldmine, and this spin-off could unlock serious value for HON shareholders.

Workday (WDAY, $227.58, +0.09)

Workday crushed its Q2 earnings, with subscription revenue up 14%. Oh, and they’re buying Paradox, an AI-powered hiring platform.

Hot take: AI is the future, and Workday is leaning in hard. This acquisition could make them a leader in talent acquisition tech.

Zoom (ZM, $73.17, +1.01)

Zoom isn’t just surviving post-pandemic—it’s thriving. They beat earnings expectations and raised their FY26 guidance.

The scoop: With enterprise customers growing and revenue climbing, Zoom is proving it’s more than a one-hit wonder.

Waste Management (WM, $229.61, -0.42)

After 23 years, CFO Devina Rankin is retiring. David Reed will take over, and while leadership changes can be tricky, WM’s fundamentals are rock solid.

Our take: Waste Management is the kind of stock you hold onto for stability. This transition shouldn’t shake things up too much.

Let’s talk about the future. Here are some growth stocks that should be on your radar:

1. NVIDIA (NVDA): The king of AI chips. Enough said.

2. Tesla (TSLA): Price cuts are driving demand, and their energy business is heating up.

3. Workday (WDAY): AI acquisitions and subscription growth? Yes, please.

4. Zoom (ZM): Enterprise growth is the name of the game.

5. Honeywell (HON): The Solstice spin-off could be a game-changer.

Market Forecast: What’s Next?

Here’s the deal: the market is in a weird spot. Inflation is sticky, the Fed is hawkish, and growth is slowing. But don’t panic. Volatility creates opportunities, especially for long-term investors.

Focus on quality. Look for companies with strong fundamentals, growth potential, and a clear vision for the future. AI, semiconductors, and renewable energy are sectors to watch.

The market can be a wild ride, but remember: it’s not about timing the market—it’s about time in the market. Stay informed, stay patient, and don’t let the noise distract you from your goals.

The stock market is navigating choppy waters today, with a mix of optimism and caution as investors digest economic data, corporate earnings, and geopolitical developments. The S&P 500 (-0.5%), Nasdaq Composite (-0.6%), and Dow Jones Industrial Average (-0.5%) are all in the red, weighed down by disappointing earnings from Walmart (WMT) and eroding rate cut expectations.

The Federal Reserve's Jackson Hole Symposium kicks off tomorrow, with Fed Chair Jerome Powell's speech expected to set the tone for the markets. Rate cut probabilities for September have dropped to 71.5%, down from 92.1% a week ago, as Fed officials signal a more cautious approach.

In Play Today

• Zoom Communications (ZM): +0.8% ahead of earnings tonight. Current price: $72.75.
  Opinion: Zoom has been a pandemic darling, but its post-pandemic growth story hinges on enterprise adoption and AI integration. Keep an eye on their forward guidance.

• AT&T (T): +0.7%, hitting a 5-year high at $29.48.
  Opinion: After years of underperformance, AT&T's turnaround story is gaining traction. The stock has nearly doubled since mid-2023, making it a compelling dividend play.

• Palantir Technologies (PLTR): +1.37%, recovering from a 15% sell-off. Current price: $157.38.
  Opinion: Palantir's valuation remains a concern, but its long-term potential in AI and data analytics cannot be ignored.

Treasury Market Update

U.S. Treasuries slipped today, pushing yields higher as rate cut odds diminished. The 10-year yield rose to 4.33%, while the 2-year yield climbed to 3.79%. Mixed economic data, including higher-than-expected jobless claims and a contraction in the Philadelphia Fed Index, added to the uncertainty.

Earnings Spotlight

• Walmart (WMT): -4.93%, rare earnings miss.
  Analysis: Walmart's Q2 EPS miss and slowing Sam's Club growth spooked investors. However, its reaffirmed FY26 guidance and strong e-commerce growth (+25%) suggest resilience.

• Canadian Solar (CSIQ): -18%, lowered FY25 revenue guidance.
  Analysis: Rising supply chain costs and trade uncertainties are weighing on this solar giant. Long-term investors may see this as a buying opportunity in the renewable energy space.

Growth Stocks to Watch

1. XPeng (XPEV): +12.13%, CEO increases stake.

   • Q2 revenue surged 125% YoY, driven by record vehicle deliveries.

   • Why Watch: Strong growth in the EV market and insider confidence make this a stock to monitor.

2. Entegris (ENTG): +2.44%, $700M R&D investment.

   • Focused on semiconductor innovation, a critical sector for tech growth.

   • Why Watch: Positioned to benefit from the CHIPS Act and global semiconductor demand.

3. Dynavax (DVAX): +5.61%, positive vaccine trial results.

   • Promising shingles vaccine candidate with robust immune response.

   • Why Watch: Biotech innovation and strong pipeline potential.

Sector Highlights

• Energy: +0.6%, led by rising oil prices.

  • Notable movers: Chevron (CVX) +0.7%, Exxon Mobil (XOM) +0.7%.

  • Opinion: Energy remains a defensive play amid market volatility.

• Consumer Staples: -1.2%, dragged down by Walmart and Costco (COST).

  • Opinion: A sector to watch for value opportunities as consumer spending shifts.

Global Economic Snapshot

• China: Considering yuan-backed stablecoins for cross-border trade.

• Eurozone: Manufacturing PMI hits 50.5, signaling expansion for the first time in three years.

• India: Flash Manufacturing PMI at 59.8, a sign of robust economic activity.

The market is likely to remain volatile in the short term as investors await clarity from the Federal Reserve. While the broader indices are under pressure, sectors like energy and healthcare are showing resilience. Growth stocks in EVs, biotech, and semiconductors offer compelling opportunities for long-term investors.

The stock market is riding a wave of mixed emotions as global politics, trade agreements, and technological advancements dominate headlines. From peace talks in Eastern Europe to groundbreaking nuclear energy developments in Sweden, the world is buzzing with activity. Let’s dive into the key stories shaping the markets today.

Global Politics and Trade: The Big Picture

Ukraine-Russia Peace Talks: A Glimmer of Hope Amid Escalations

President Donald Trump is pushing for peace talks between Russian President Vladimir Putin and Ukrainian President Volodymyr Zelensky. While the Kremlin prefers a slower approach, Ukraine remains firm in rejecting Moscow’s conditions. Meanwhile, Russia’s largest offensive since July has heightened tensions, with drone and missile strikes causing casualties and targeting U.S. businesses.

Market Impact: Defense stocks like Lockheed Martin (LMT) and Northrop Grumman (NOC) could see increased interest as geopolitical tensions escalate. Energy stocks may also be affected as the conflict continues to disrupt global supply chains.

U.S.-EU Trade Agreement: A New Era of Cooperation

The U.S. and EU have unveiled a trade framework that includes a 15% blanket tariff on EU exports, $750 billion in U.S. energy purchases, and reduced tariffs on pharmaceuticals and autos. This agreement marks a significant step in strengthening transatlantic trade relations.

Growth Stocks to Watch:

• Tesla (TSLA): With reduced tariffs on European autos, Tesla’s European operations could benefit.

• Pfizer (PFE): The pharmaceutical giant may see a boost as the U.S. applies its MFN drug pricing policy.

• ExxonMobil (XOM): As the EU commits to U.S. energy purchases, ExxonMobil stands to gain.

Middle East Tensions: A Region on Edge

Israel has launched its first stages of a Gaza City offensive, while Hamas has proposed a 60-day ceasefire. The situation remains fluid, with potential implications for global markets.

Market Insight: Energy prices could see volatility as Middle East tensions often impact oil supply. Keep an eye on Chevron (CVX) and Schlumberger (SLB).

U.S. Domestic Developments: A Mixed Bag

• Federal Reserve Criticism: President Trump has intensified his criticism of the Fed, calling for Governor Lisa Cook’s resignation.

• Crime in D.C.: With a 50% higher murder rate than other major U.S. cities, crime remains a pressing issue.

• Walmart (WMT) Earnings: The retail giant reported $177.4 billion in revenue, surpassing expectations, and raised its full-year outlook.

Opinion: Walmart’s strong performance highlights the resilience of consumer spending, even amid rising costs. This could signal a broader trend of stability in the retail sector.

Technology and Innovation: The Future is Now

• Google Pixel 10: Google’s latest smartphone features advanced AI capabilities, setting a new standard for user experience.

• Meta’s Superintelligence Labs: Meta is doubling down on AI with its new initiative, led by Alexandr Wang.

• Kanye West’s Meme Coin: The “YZY” cryptocurrency has achieved a $3 billion market cap, showcasing the growing influence of celebrity-backed digital assets.

Growth Stocks to Watch:

• Alphabet (GOOGL): With the Pixel 10 launch, Alphabet continues to innovate in the tech space.

• Meta Platforms (META): Meta’s focus on AI could drive long-term growth.

• NVIDIA (NVDA): As AI adoption accelerates, NVIDIA’s GPUs remain in high demand.

Global Geopolitical Updates: A World in Flux

• Sweden’s Nuclear Expansion: Sweden is embracing mini-reactor technology, marking its first nuclear expansion in 50 years.

• China’s AI Progress: OpenAI CEO Sam Altman warns that China’s advancements in AI are outpacing expectations.

• UK Sanctions Crackdown: The UK is targeting entities aiding Russia in bypassing sanctions.

Market Insight: Renewable energy stocks like NextEra Energy (NEE) and Brookfield Renewable Partners (BEP) could benefit from Sweden’s nuclear push and the global shift toward sustainable energy.

Business Highlights: Winners and Losers

• Cracker Barrel (CBRL): Shares plummeted after a controversial logo redesign.

• WHSmith: A 40% drop in shares following an accounting error in North America.

• Group14 Technologies: Secured $463 million in funding for EV battery innovation, signaling a bright future for the EV sector.

Opinion: While Cracker Barrel and WHSmith face challenges, Group14’s funding highlights the growing importance of EV technology. Keep an eye on EV-related stocks like Rivian (RIVN) and Lucid Motors (LCID).

The market is navigating a complex landscape of geopolitical tensions, technological advancements, and economic shifts. While challenges remain, opportunities abound for savvy investors. Growth stocks in the tech, energy, and defense sectors are poised for long-term gains. However, caution is warranted as global uncertainties could lead to short-term volatility.

That’s your comprehensive market briefing for today! Stay informed, stay invested, and as always, stay Stock Region savvy. Let us know your thoughts or questions—we’re here to help you navigate the ever-changing market landscape.

Stay informed, stay invested, and remember: the stock market is a marathon, not a sprint.

Disclaimer: Investing involves risks, including the loss of principal. Past performance is not indicative of future results. This newsletter is not a recommendation to buy or sell any securities.