Bank of America expects investment banking fees to decline more than 10% in the third quarter compared to the year-earlier period, with trading revenue roughly flat, CEO Brian Moynihan said Monday. This marks a sharp reversal from a blockbuster second quarter and signals potential weakness in Wall Street's advisory and trading businesses. The bank's shares fell 5% following the guidance.
Oracle beat earnings expectations with adjusted EPS of $1.92 versus $1.74 expected and revenue of $19.35 billion versus $19.14 billion expected, driven by cloud infrastructure revenue more than doubling to $7.4 billion. The company raised full-year 2027 guidance and reported 30% year-over-year revenue growth, though it carries $125 billion in debt and reported negative free cash flow of $5.4 billion as it invests heavily in data center capacity for AI services.
Macy's reported strong second-quarter results with 2.7% comparable sales growth and raised full-year guidance, citing success from its reimagined stores and higher-end brands Bloomingdale's and Bluemercury. The retailer now projects net sales between $21.68–$21.83 billion and comparable sales growth of 1–1.5%, while investing $96 million in tariff refunds toward customer experience and its turnaround strategy.
Kevin Simpson has added Freeport-McMoRan to his dividend portfolio, betting that rising copper demand from AI and data centers will drive strong earnings growth despite the stock's volatility. The Phoenix-based miner benefits from constrained new supply—mines take years to develop—while Freeport's Indonesian Grasberg operation ramps up production amid historically high copper prices. At a 2027 P/E of 19x, Simpson views the risk-reward as attractive.
Stock futures edged higher Thursday as traders awaited the producer price index report on wholesale inflation, following a three-day decline in major indices. Rising oil prices amid U.S.-Iran tensions and elevated Treasury yields pressured markets, with crude futures reaching their highest settlement prices since May.