TLDR
- Estée Lauder stock jumped 16.29% as its turnaround effort gains traction
- S&P 500 earnings are on pace to rise 50% year over year, the highest rate since 2021
- Chip stocks pulled back again, with the iShares Semiconductor ETF falling 2.9%
- The Treasury Department plans to double long-dated debt buyback operations
- Target posted another earnings beat ahead of Walmart results due Thursday
Estée Lauder shares climbed more than 16% on Wednesday as the beauty company showed progress in its ongoing turnaround. The stock was among the standout movers in a mixed session for markets.
The Estée Lauder Companies Inc., EL
Analog Devices also rose, gaining just under 1% on the day.
Earnings Season Wraps Up Strong
Second quarter earnings for S&P 500 companies are on pace to rise 50% year over year. That would be the highest growth rate since 2021, according to FactSet data.
Bank of America strategists pointed to artificial intelligence as the main driver of that broad growth. AI spending has lifted results across multiple sectors this earnings season.
Retail results have also been a focus this week. Home Depot and Lowe’s both reported that consumers kept spending, though mainly on smaller projects. Inflation and geopolitical concerns are weighing on household budgets.
Target posted another earnings beat, keeping the retail sector’s momentum going. Walmart is set to report results on Thursday, which will be another test of how the US consumer is holding up.
Chip Stocks Drag on the Nasdaq
The Nasdaq Composite started the day higher but gave back those gains by midday. It was down 0.2% after opening in positive territory.
Chip stocks were the main drag. The iShares Semiconductor ETF fell 2.9% after an early pop. Traders appear reluctant to chase chip stock gains and have been taking profits quickly when prices rise.
The S&P 500 held up better, rising 0.59% to 7,737. The Dow Jones Industrial Average gained around 293 points, or 0.55%.
The Treasury Department announced it would double the size of its long-dated debt buyback operations. That news gave bond markets a lift.
The iShares 20+ Year Treasury Bond ETF rose 1.6% to $82.95. That put it on pace for its best single day since October 10, 2025.
Despite the chip stock weakness, most S&P 500 stocks were rising on the day. The breadth of the rally was helped by the bond buyback news.
Estée Lauder’s jump was one of the biggest individual stock moves of the session. The company has been working through a restructuring plan after a difficult stretch.
The broader picture heading into the final stretch of earnings season is one of steady gains. Most companies have managed to beat expectations, with AI remaining the key theme.
Walmart’s results on Thursday will close out a busy week for retail earnings and give investors a fresh read on consumer spending trends.
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