Stock Market Update

[BRIEFING.COM] The S&P 500 (-0.8%) and Nasdaq Composite continue to move off their opening lows as the substantial early weakness across semiconductor stocks has attracted some buy-the-dip interest. The DJIA (+0.1%) has entered positive territory as the broader market has a positive tilt.

Carnival (CCL 28.34, -1.86, -6.16%), however, is not among the names that trade higher, despite oil prices retreating again this morning. The company reported Q2 earnings results this morning, and investors seem to be looking past a solid EPS beat and focusing on a less compelling forward earnings setup, especially after the stock had already rallied 16% since June 10. The company reported adjusted EPS of $0.41 versus $0.34 consensus, while revenue of $6.66 billion came in slightly below the $6.69 billion consensus, making this more of an earnings-quality and guidance debate than a clean top-line beat. Carnival still highlighted record Q2 revenue, net yields, adjusted net income, and healthy demand, but Q3 EPS guidance of $1.35 and FY26 EPS guidance of $2.22 came in below expectations, suggesting that higher fuel costs are absorbing much of the operating upside.