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Stay up to date on the latest market news with daily analysis of the investing landscape, served up Brew-style.

Brew Markets

Stocks

Lucy Brewster

brewmarkets.com

You might think increasing revenue by 56% year over year, beating sales and EPS expectations, and forecasting more demand for its chips would earn Nvidia an A+ for its earnings report. But investors grade the chipmaker on a curve.

Shares sank 0.82% today as traders zeroed in on the AI giant’s good—but 

—performance, with a particular focus on its data center revenue, which came in slightly below expectations.

The cracks in the facade come at a time when investors are already on edge about the longevity of the AI trade. Nvidia now represents roughly 

market cap, and is the dominant force behind the AI trade, which is what has propelled the stock market to new heights of late. That creates a reasonable fear among traders: If Kingvidia falters, the entire house of cards could come down.

Analysts, however, largely believe Nvidia can keep meeting the market’s high expectations.

For one, China remains a huge, untapped market. While nobody has a crystal ball, many analysts foresee the export restrictions on Nvidia’s chips easing—and if they are, management says Nvidia could haul in an additional 

 in revenue during the October quarter alone.

“Ultimately, we anticipate that Nvidia will receive all the necessary approvals and support from both the US and Chinese governments to eventually sell lower-powered products, such as the H20, into the region,” wrote Morningstar equity analyst Brian Colello in a note. 

 isn’t waning, either. Wall Street thinks big tech companies will shell out 

 this year and $402 billion next year—and while the price tag may have some investors worried, the opportunities in AI remain lucrative enough to warrant such massive spending.

“If roughly one-third of tasks in the global economy can be automated, with a labor share of 50% and AI vendors capturing 10% of the value, the annual AI revenue opportunity could reach $1.5 trillion,” wrote UBS Global Head of Equities Ulrike Hoffmann-Burchardi in a recent note.

Nvidia will be a core part of meeting that demand, which is why, despite the stock’s staggering run, many still view it as a long-term value pick. “We continue to see this as the best risk/reward in the AI space,” explained Morgan Stanley analyst Joseph Moore. He raised the firm’s price target on Nvidia from $206 to $210, over 16% higher than where shares trade today.—

What do Nvidia's earnings mean for AI trade?

Wall Street still believes Nvidia has plenty of value, even after a lukewarm earnings report.

Nvidia's still got it

Judy Dutton

Kohl’s has been losing customers, paying vendors late, and churning through CEOs, but the department store seems to be finally turning things around.

The latest earnings report from the company that won’t stop stuffing Kohl’s Cash in your mailbox 

 on both top and bottom lines, reporting revenue of $3.35 billion (versus $3.32 billion expected) and EPS of 56 cents (versus the anticipated 29 cents). Although the retailer is bracing for a loss in net sales this year, its revised guidance minimizes that decline to just 4% to 5%.

This not-so-bad news suggests that Kohl’s 

 are “beginning to resonate with customers,” Interim Chief Executive Michael Bender said in a statement. And despite a drop in its stock earlier this week due to rumblings over 

—a red flag that screams “financial troubles”—investors seem ready to embrace this comeback story. Shares shot upward 24% today.

Kohls has been mired in a sales slump for years. Same-store sales 

 for 14 quarters straight, including a 4.2% drop in the most recent quarter ending in August.

The store’s struggles haven't been helped by its revolving door of CEOs, with five taking the helm in the past 10 years, including three in the last three years alone. The last, Ashley Buchanan, was at the helm for fewer than 100 days before he was canned in May over an undisclosed 

Since then, Kohl’s has bent over backward to clean up its act and win back customers. Stores have reinstated the petite section, which was eliminated much to the chagrin of smaller-boned clientele. The introduction of 

 has worked its magic, attracting younger shoppers, while coupons and other discounts were expanded to attract more bargain hunters. The chain of 1,153 stores also expanded in Q2 by another 300 locations, along with redesigned “impulse queue lines” near checkout to boost sales.

“We really think we're set up well ... to deliver value when it's going to become incredibly important to that customer in the back half and especially holiday," CFO Jill Timm said on a 

. But are they doing enough? Not everyone is convinced.

"The topline beat gives management some breathing room, but Kohl's is still stuck in the squeezed middle of retail—forced to discount heavily to move product while struggling to articulate a clear brand identity," 

 EMarketer analyst Suzy Davidkhanian in Reuters.

Kohl's earnings were a pleasant surprise

The retailer has struggled lately, but may have finally found its foot

Kohl's pulls off a comeback

EchoStar may sound like a character from 

, but it’s actually something way more exciting: a telecommunications and internet services provider.

Today, it surged a staggering 70.25% on a deal to sell spectrum licenses to AT&T for 

So, how does a seemingly boring stock you’ve probably never heard of supersize its market cap in a single day?

EchoStar, which owns Dish TV, became the fourth-largest wireless carrier in the US back in 2020, thanks to its acquisition of Boost Mobile. Boost brought in oodles of spectrum licenses—aka, the right to use specific frequencies for cellular communications. 

But there was a problem: EchoStar wasn’t financially sound enough that it could build the infrastructure to actually 

 all the wireless spectrum licenses the company received from Boost.

That meant it was basically squatting on its portion of the spectrum for years, which created some serious issues for EchoStar. Since the wireless spectrum is a finite resource, its inability to use its licenses spurred an inquiry from the Federal Communications Commission, whose job it is to make sure carriers utilize their portion of the airwaves.

It also gave EchoStar some high-profile enemies—the most prominent being Elon Musk, who has repeatedly criticized 

, and argued that SpaceX should get any spectrum that EchoStar wasn’t using.

In fact, as recently as June, EchoStar was reportedly considering Chapter 11 bankruptcy, the 

All that background brings us to today. EchoStar is unloading 50 MHz of unused spectrum through its deal with AT&T in exchange for roughly $9 billion more than what it paid for airwaves it couldn’t even use. That’s great news for EchoStar, not only because it avoids government scrutiny, but also because it gives the company the cash to pay off its debt and avoid the B-word (bankruptcy).

AT&T benefits by getting a whole bunch of spectrum it can actually make use of to boost its reach and bring in new customers: The spectrum licenses cover 400 markets, according to AT&T.

Echostar soars on spectrum sale

The struggling wireless carrier will receive $23 billion from AT&T.

Echostar blasts off

With so much frenzy over everything from an AI bubble to a 

, many investors may not have realized that the best returns can’t be found here in the US.

Emerging markets and international stocks have been outpacing domestic equities in 2025, subverting a long-held tradition of American stock market dominance.

Just take a look at the numbers: The MSCI Emerging Markets Index has gained 31% this year, while the Vanguard Total International Stock Index has surged 21.5%—both outpacing the S&P 500’s return of 9.93%. 

The biggest reason that international markets have universally popped is that the 

, declining 9.45% this year when compared to a basket of international currencies. That makes foreign companies more valuable when compared to American ones.

On top of that, emerging markets (EM) in particular have been on a serious tear:

“We think that, post-Covid, EM central banks have garnered more trust, showing that they can act independently, preemptively, and effectively in the face of shocks,” wrote Morgan Stanley strategist Simon Weaver in a note over the weekend. “In addition, flexible exchange rate regimes have absorbed external pressures, while inflation differentials with DM [domestic markets] have converged.”

If you ask the pros, they’re still pretty bullish on investment ideas across the pond.

“International equities could help diversify investment portfolios given the prominence of sectors such as financials and industrials (i.e., 

 tech) outside the US,” explained Janus Henderson strategist Julian McManus in a note today. “As the US turns inward, countries are stepping up with stimulus, which will benefit companies critical to local economies,” he added.

But taking out your globe and pointing to a random country probably isn’t the best way to start.

“Within our framework, which strongly emphasizes country-specific opportunities, we currently have a preference for local bonds in Brazil, Colombia, Hungary, and Turkey and like stances on select sovereign credits including Chile, Colombia, Guatemala, Mexico, Morocco, South Africa, and Zambia,” explained Weaver.

A stock market trader in front of computer screens

Is it time to invest internationally?

International equities have outpaced their domestic counterparts this year.

International stocks are killing it

If you only glanced at Walmart’s stock today and saw that shares sank 4.49%, you might think the biggest company in the US by revenue just reported a rough second quarter.

There is a fair reason for that reaction: The company missed profit forecasts for the first time in three years, reporting EPS of $0.68 per share, below the $0.74 Wall Street expected. On top of that, management acknowledged that tariff costs have forced the retailer to 

 of some products. Roughly a third of Walmart’s merchandise is imported from overseas.

However, Walmart’s earnings miss isn’t actually as bad as it looks. Its lower profit had a lot to do with legal charges, insurance, claims, and restructuring costs—not systemic problems with Walmart’s business itself.

In fact, when you look under the hood at how things are really going, the retail giant 

 The company raised its full-year guidance on top of upping forecasts for the current quarter, with management crediting a “resilient” consumer amid a broader economic slowdown and threats of tariffs.

Walmart has the data to back up that sentiment: Comparable sales 

 last quarter, beating analysts’ forecasts of roughly 4%. The company credited its markdowns on groceries, fast shipping, and new styles for the growth. Comparable sales for its Sam’s Club brand increased 5.9% (excluding fuel), outpacing analyst projections of 5.2%.

Walmart is often thought of as a bellwether because its huge customer base means it can act as a gauge of how the American consumer is feeling. Walmart’s strong revenue comes at a time when competitors like Target 

 to boost their own lukewarm sales numbers, as cost-conscious consumers turn toward Walmart’s value-focused business, and snub retailers focused on premium offerings.

If you thought comparable sales growth was impressive, just look how Walmart is doing online: E-commerce sales jumped 26% domestically and 25% globally. Its global ads business is also raking in the cash: Revenue there increased 46% year over year, while sales from its US-based ad venture, Walmart Connect, shot up 31%.

Overall, the vast majority of analysts covering Walmart have 

Looks like today's decline might just be one more discount.—

Walmart earnings recap: Better than you think

The largest company in the US by revenue reported strong sales, even as profits missed forecasts.

Walmart's success story wrapped in bad news

You can tell an earnings announcement is about to be rough when a company decides to replace its CEO at the same moment it reveals its numbers.

 weren’t terrible: The retail giant beat sales and earnings expectations, and even doubled down on its forward-looking guidance.

But foot traffic at its stores declined 3.1% over the quarter, according to 

. That contributed to lower comparable sales, also known as same-store sales, which dropped 1.9% on an annual basis—the 11th straight quarter of flat or falling sales, according to the Wall Street Journal.

The strip mall staple had even bigger news today: 

, and COO Michael Fiddelke will be moving into the corner office after Cornell steps down on Feb. 1.

Shares declined 6.35% today, and are down 26.99% this year.

 11 years ago, he was tasked with his own turnaround for the retailer. His big investment—building out 1,800 physical stores—turned out to be prescient, allowing Target to capitalize on surging consumer demand during the Covid-19 pandemic with a variety of delivery and pickup options.

But since then, consumers have been ditching the fashion-forward retailer in favor of value-focused competitors like Walmart. In January, Target announced it was rolling back its DEI initiatives, 

 among shoppers. On top of that, tariffs are a huge risk to Target’s business, given it imports roughly half of its merchandise.

, its median rating is “hold” and its average price target is $102, 3.35% higher than where shares trade today.

 It looks like Fiddelke, who started at Target as an intern back in 2003, has his work cut out for him. On a call with reporters, he broke down 

: Upholding Target’s reputation as a stylish retailer, improving shoppers’ experience, and integrating tech more into operations.

Hopefully, he focuses on improving Target’s share price, too.—

If you want to learn more about how today’s leadership shakeup may cause some serious boardroom drama at Target, listen to a deep dive from markets vet Ann Berry on the new 

Darts missing the center of the Target bullseye

Target's new CEO misses the mark

The struggling retailer fell today on weak earnings and a new leader.

Target misses the mark

Home improvement giants Home Depot and Lowe’s have had some serious wrenches thrown in their businesses lately, from tariffs to ICE raids to high interest rates. But their latest earnings calls highlighted their blueprint to rebuild: wooing the pros.

In a shockingly upbeat earnings call, Lowe’s announced it’s 

 drywall and insulation distributor Foundation Building Materials for $8.8 billion, a nice complement to its purchase of interior design and installation provider Artisan Design Group for $1.3 billion earlier this year. Meanwhile, store revenue 

 at $23.96 billion, and earnings per share surpassed predictions at $4.33, leading to a 0.29% bump in the stock today.

On the other side of the aisle, Home Depot has shored up its pro business by recently snapping up two companies: building products distributor GMS for $4.3 billion, and roofing, landscaping, and pool materials provider SRS for over $18 billion. While blockbuster deals are fun and all, the company’s 

 fell short of Wall Street’s hopes. Its stock dropped 1.32% today as it became clear to all that Lowe’s has stepped into the ring swinging.

These megastores’ shift toward professionals arrives at a time when the amateur DIY market has been weakening like particleboard under pressure. 

Both companies said that high interest rates have pushed retail customers to 

 bigger-ticket purchases, while professional buying remains steady. Tariff-induced price hikes are another concern—although not much of one, since 

Despite the strong earnings, Lowe’s still has some catching up to do: 

 customers and only 30% from pros in fiscal 2024. Home Depot, on the other hand, enjoys a 

So, which chain has the upper hand? “Home Depot has always seemed to have the heavier hammer,” noted Running Point Capital Advisors Chief Investment Officer Michael Ashley Schulman. “It also has the earlier start, the broader pro ecosystem, and a larger fleet and branch footprint via SRS and soon GMS. Their latest quarter showed steady same-store gains despite big ticket hesitation, which suggests its pro engine is carrying more of the load while consumers wait on rate relief.”

That said, Schulman noted that it’s too soon to declare a winner. “The clock says Home Depot started earlier. The scoreboard says both can win.”