10 key points to consider in the stock market on Tuesday, including earnings from Palo Alto and Home Depot

Market Update – Key Clubs to Watch on August 19

1. Palo Alto Networks reported its quarterly results, showing a 6% increase this morning. Their numbers suggest that the acquisition of CyberArk was made from strength rather than weakness. Bank of America has upgraded its stock rating from hold to buy, with several price target hikes also noted.

2. Home Depot reaffirmed its yearly guidance today, posting higher-than-expected quarterly sales and profits. Same-store sales showed growth each month, with increases of 0.3% in May, 0.5% in June, and an impressive 3.3% in July. Although the stock rose over 1%, many believe a Federal Reserve rate cut is necessary to truly unlock the housing market and boost this stock further.

3. After a subdued trading day yesterday, the market appears set for another calm and modest opening this morning. Wall Street is anticipating more retail revenue this week, particularly with TJX reporting on Wednesday as a barometer for consumer health.

4. A meeting between Ukrainian President Volodymyr Zelensky and Russian President Vladimir Putin is in the works, as President Donald Trump mentioned after hosting Zelensky and European leaders at the White House. Trump indicated that a trilateral meeting is planned as part of ongoing peace talks.

5. Japan’s SoftBank is investing $2 billion into struggling Intel, the American chipmaker. Reports from Bloomberg indicate that SoftBank may secure a 10% stake by converting some Chips Act grants into equity. Intel’s shares saw a 5% rise this morning after the news.

6. Nvidia is developing a new AI chip for the Chinese market, surpassing the H20 throttle-back version of its Hopper chip, which was created due to US restrictions. This information was reported by Reuters, mentioning that the new chip is based on Nvidia’s Blackwell Architecture. Treasury Secretary Scott Bessent noted that Nvidia would require an export license for this new version.

7. Viking Therapeutics stock dropped nearly 30% this morning following the results of mid-stage trials for an oral obesity drug. The trial met its primary endpoint for weight loss, but a 28% cancellation rate could deter investors. In contrast, Eli Lilly’s stock rose over 1% despite having disappointing data from its own obesity pill earlier this month.

8. Apple is increasing iPhone production in India, as part of its strategy to consolidate all products destined for the US in India. Bloomberg reported that all four versions of the iPhone will now be manufactured there.

9. Medtronic is undergoing changes in its board, appointing two new directors after activist hedge fund Elliott Management made a significant investment in the medical device company. Elliott also pushed for a strategic exit plan for Honeywell, another club stock.

10. There’s growing evidence of merger and acquisition activity: Nexstar Media, which owns a local TV station, is set to acquire small competitor Tegna for a deal valued at $6.2 billion, including debt. Goldman Sachs is serving as a financial advisor for Nexstar in this transaction.

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