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Yields hit 5.6%; stocks slip off lows
The bond selloff kept its grip on Tuesday’s session. The 30-year US Treasury yield spiked to 5.612% — its highest since 2002 — before settling at 5.59% for its highest close since June 10, 2002. The 10-year note reached 5.29% and closed at 5.26%, its highest 3 p.m. close since May 17, 2002. Equities slipped: the S&P 500 fell 0.2%, the Dow dropped 131 points (0.3%), and the Nasdaq lost 0.1%. Seven S&P sectors fell while four rose — energy was the worst at -0.9%, utilities the best at +1.1% — and Apple was the Dow’s biggest loser at -2.7%. The afternoon brought relief: New York Fed President John Williams signaled there is “no urgency” to hike rates in October, sending 2-year yields lower and cutting October hike odds from 70.9% to 51.5% on the CME FedWatch tool. Soft JOLTS and consumer-confidence data helped the cause; the test comes Wednesday with August PCE inflation data, followed by September payrolls on Friday.
Sources: Barron’s · Reuters · Barron’s
Carnival surges 13% on record quarter
Carnival (CCL) was the S&P 500’s biggest gainer Tuesday, jumping 13% to about $24.93 — its largest single-day gain since April — after reporting record third-quarter results. Adjusted earnings per share came in at $1.43 versus the $1.35 consensus, while revenue hit a record $8.44 billion, up 3.5% year over year and above the $8.35 billion analysts expected. The cruise operator raised its full-year adjusted net income forecast by more than $150 million versus June guidance — even while absorbing roughly $150 million in extra fuel costs — and said customer deposits reached a third-quarter record of $7.6 billion, up 7%, with 2027 booking volumes and pricing at record levels. CEO Josh Weinstein pointed to sustained same-ship yield growth and guided fiscal 2026 net yields up 3.8% versus the 3.2% consensus. The glow lifted rivals: Royal Caribbean rose 6.5% and Norwegian Cruise Line added 3.4%. Even after Tuesday’s pop, Carnival shares remain down roughly 20% on the year.
Sources: Barron’s · Investopedia · Zacks
Anthropic IPO filing reveals $42B losses
Reuters’ Monday-evening exclusive — the talk of Wall Street on Tuesday — laid bare Anthropic’s draft IPO prospectus: revenue surged twelvefold in 2025 to nearly $4.6 billion, but the Claude maker posted a net loss of $42 billion (about $34 billion of it a financing-related accounting charge) and an operating loss exceeding $8 billion, more than double 2024’s. The documents show the company plans to lock in roughly $518 billion in future cloud, computing, and infrastructure obligations, after spending $7.33 billion on compute last year — more than half its total operating expenses. The public sale could value the five-year-old lab at more than $2 trillion, more than double its $965 million May funding round, and would set the benchmark for pricing frontier AI alongside OpenAI. Tuesday brought a second Reuters installment: 47% of Anthropic’s 2025 sales were routed through Amazon and Google — which are simultaneously investors, cloud suppliers, and AI rivals — and nearly a quarter of revenue came from just two customers. The filing also flags risks from increasingly autonomous models, citing controlled tests with sabotaged code and manipulated information.
CarMax beats, restarts share buybacks
CarMax (KMX) shares gapped up Tuesday after a decisive second-quarter beat, trading up roughly 7% in the morning. Adjusted earnings of $1.16 per share soared 81% from 64 cents a year ago and crushed the 73-cent consensus, while revenue jumped 19.5% to $7.88 billion versus the $7.09 billion analysts expected. Net earnings reached $165.3 million against $95.4 million a year ago. The engine was volume: combined retail and wholesale unit sales rose 14.7% to 387,735 units, with comparable-store used unit sales up 13.0%, and gross profit per used retail vehicle of $2,105 beating the $2,022 estimate despite pricing actions that trimmed per-unit margins. CarMax Auto Finance income grew 32.1% to $135.6 million. Most importantly for investors, management announced plans to resume share repurchases at a modest level in the fiscal third quarter and teed up a virtual Strategic Update on November 3.
Sources: Mondeum Capital · Zacks · StockStory
Bloom Energy soars; chips rally pre-Micron
Chips and AI hardware were Tuesday’s standout while most of the market sagged. Bloom Energy (BE) surged 10.8% to 291.25 — the S&P 500’s No. 2 performer — clawing back above its 288 cup-with-handle buy point a day after leading the index lower with an 8.95% tumble. The semiconductor sector gained 1.3% per Reuters’ Trading Day recap, with the VanEck Semiconductor ETF up 1.15%. Micron (MU) added 1.05% to 1,065.08 ahead of Wednesday night’s earnings, where analysts expect a 947% EPS jump and revenue of $51.3 billion (up 354%); guidance is expected to be the make-or-break detail. Sandisk climbed 1% to 1,729.76 and SK Hynix rose 2.6%, bouncing off its 21-day line. Software, by contrast, declined overall — the AI-hardware trade is still where the momentum lives.
Sources: Investor’s Business Daily · Reuters · Barron’s
Market recap for information only — not financial advice.
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