August kicked off with a thud for Wall Street, as the Nasdaq and S&P 500 posted their worst weekly declines since late May. The Dow Jones Industrial Average fared even worse, notching its steepest weekly drop since early April. For both the Nasdaq and S&P 500, it marked the first time they fell below their 21-day exponential moving averages since early spring—a potentially telling shift for the broader market rally. This week’s earnings rush could provide the next clues to the market’s direction.
Earnings highlights include Caterpillar (CAT), Palantir Technologies (PLTR), Axon Enterprise (AXON), and Eli Lilly (LLY). On the macro front, it’s a relatively quiet economic calendar, though investors will pay close attention to developments from the annual Black Hat cybersecurity conference in Las Vegas.
Stocks to Watch: Pullbacks Stay Constructive
Despite last week’s broad retreat—punctuated by a particularly rough Friday—several stocks held their ground near buy points with minimal technical damage. Notable names include Israeli defense contractor Elbit Systems (ESLT), pest control leader Rollins (ROL), Alphabet (GOOGL), gold miner Agnico-Eagle Mines (AEM), and alternative asset manager Blackstone (BX). Elbit posted gains and sits just shy of a breakout level. The others pulled back modestly but stayed comfortably above their 21-day EMAs, showing resilience amid volatility.
Economic Snapshot: Eyes on Jobs and Trade
Concerns raised by July’s jobs report will turn investor focus to the ISM services index due Tuesday. Economists are anticipating an uptick to 52.2 from June’s 50.8, signaling accelerating expansion. Also on Tuesday, the Bureau of Economic Analysis will revise June’s trade deficit, incorporating services data into the preliminary $86 billion goods shortfall. With hiring lagging in Q2, productivity may have surged—despite GDP distortions from trade and inventory shifts. On Thursday, the Bureau of Labor Statistics will release Q2 productivity figures.
Semiconductors: AMD Poised for 27% Revenue Growth
Advanced Micro Devices (AMD) will post its fiscal Q2 results after the bell Tuesday. Wall Street expects revenue of $7.42 billion, up 27% year over year, even as earnings per share are forecast to dip 30% to $0.48. Key areas of interest include AMD’s data center portfolio—featuring Epyc server chips and Instinct AI accelerators. Gains in PC chip sales, potentially aided by tariff effects and Intel’s (INTC) recent struggles, could also drive results. Other chipmakers reporting this week include Astera Labs (ALAB), Macom Technology Solutions (MTSI), and SiTime (SITM).
Blue Chip Highlights: Caterpillar Headlines Dow Reports
With most industrial companies already having released earnings, four Dow components will step up this week: Caterpillar, Amgen (AMGN), Disney (DIS), and McDonald’s (MCD). Caterpillar remains close to record highs, while Disney sank below its 10-week support line last Friday. Among the group, only McDonald’s is forecast to deliver growth in both earnings and revenue. Nvidia (NVDA), another major name, won’t report until August 27.
AI Momentum: Palantir’s Big Moment
Palantir Technologies releases Q2 earnings late Monday amid massive investor enthusiasm. The stock is up roughly 110% in 2025, making it the year’s top performer on the S&P 500 after leading in 2024 as well. Analysts project a 54% jump in earnings and 38% revenue growth. Markets will pay close attention to updates on government spending and the company’s “Golden Dome” space defense initiative. Palantir is also betting on generative AI to expand its reach in health care and financial services.
Pharma Watch: Eli Lilly Leads Earnings Lineup
August begins with a packed week for large-cap pharma and biotech. Tuesday brings reports from Pfizer (PFE), Amgen, and Bayer (BAYRY), while Thursday sees results from Eli Lilly, Gilead Sciences (GILD), and Ligand Pharmaceuticals (LGND). Biotech names look more promising on the charts—Ligand broke out in July, and Gilead is hovering near a cup-with-handle entry. Expectations are highest for Eli Lilly, with analysts looking for 43% earnings growth and a 30% increase in revenue.
Cybersecurity Spotlight: Black Hat and Industry Consolidation
Cybersecurity will dominate headlines this week with the Black Hat conference running from August 2–7. Following Palo Alto Networks’ (PANW) $25 billion acquisition of CyberArk (CYBR), consolidation trends will be under the microscope. Can platform giants crowd out smaller rivals? Earnings from Qualys (QLYS) and Fortinet (FTNT) will provide insight. Qualys is projected to post a 2% dip in EPS to $1.48, with revenue growing 8% to $161.3 million. Fortinet is expected to deliver a 4% EPS gain to $0.59, and a 13% sales increase to $1.625 billion.
Earnings Roundup: More Key Names Reporting
- Axon Enterprise (AXON): Reports Monday evening. Analysts expect a modest slowdown in growth. Markets are watching for trends in drone and surveillance demand. The stock remains in a constructive base-on-base pattern, albeit below support.
- MercadoLibre (MELI): Latin America’s top e-commerce name posts Q2 results Monday. Analysts forecast a 14% earnings gain to $11.93 per share, with 32% revenue growth to $6.68 billion.
- Wayfair (W): Also reporting Monday, the online home goods retailer has seen shares surge 50% year to date. However, Q2 earnings are projected to decline 30%, with flat sales.
- Arista Networks (ANET): Earnings are due Tuesday. Buoyed by AI-driven spending from Microsoft (MSFT) and Meta (META), Arista is expected to post a 24% EPS increase and 25% revenue growth. Shares have rebounded over the past six weeks.
- Shopify (SHOP): Reports Wednesday. Forecasts call for 11% EPS growth to $0.29 and 25% revenue growth to $2.546 billion. Gross merchandise volume is expected to rise 21% to $81.4 billion.
- Occidental Petroleum (OXY): Also reporting Wednesday. Analysts anticipate a steep 72% drop in profits and a 9.4% decline in revenue. Markets will listen closely for any updates on Permian Basin output, after earlier warnings from CEO Vicki Hollub that production could hit a plateau sooner than expected.
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