MARKET WRAPS
STOCKS: Stocks rose after Nvidia's robust long-term growth outlook quelled fears about the sustainability of the artificial-intelligence boom.
TREASURYS: Treasury yields rose ahead of Federal Reserve Chairman Kevin Warsh's speech from Jackson Hole, Wyo.
FOREX: The U.S. dollar held steady against rivals ahead of the Fed leader's speech.
COMMODITIES: Oil futures rose as traders awaited updates on the status of shipping in the Strait of Hormuz.
HEADLINES
Iran Talks Sputter as Trump Spurns a Return to His June Deal
The Trump administration has repeatedly told mediators it has no
interest in going back to the terms of the memorandum of understanding it
reached with Iran in June, complicating this week's flurry of efforts to
restart the diplomatic process, people familiar with the matter said.
The preliminary deal that President Trump signed at the Palace of
Versailles and which Vice President JD Vance helped negotiate aimed to
reopen the Strait of Hormuz and kick-start talks on Iran's nuclear
program and an end to the war in exchange for sanctions relief and giving
Tehran access to its frozen cash around the world. But it fell apart
within weeks after Iran started attacking ships to assert its control
over the vital waterway.
Trump has since settled on a policy of squeezing Iran economically and
is willing to wait to see if the strategy bears fruit, the people said.
They said the president in particular is no longer interested in the
memorandum of understanding, which was heavily criticized in the U.S. as
soft on Iran.
Best Buy Raises Outlook After Computing Growth Fuels 2Q Sales
Best Buy boosted its full-year outlook prompted by higher
second-quarter sales, based on growth across several key categories.
The latest quarterly results topped the electronic retailer's own
forecast as well as Wall Street's expectations. Customers are responding
well to Best Buy's price markdowns, and are still willing to spend on
pricey products despite broader economic pressure, executives told
analysts Thursday.
"While customers continue to be thoughtful about big-ticket purchases,
they are willing to spend on high-price-point products," outgoing Chief
Executive Corie Barry said.
Nvidia Forms PAC to Bolster Its Influence on Chips and AI Policy in
Washington
Nvidia launched a political action committee on Thursday in the latest
acknowledgment that the artificial-intelligence boom is increasingly
sensitive to developments in Washington.
The Nvidia Corporation Employees Federal PAC, which filed a statement
of organization with the Federal Election Commission, takes voluntary
employee contributions. An employee's contribution is capped at $5,000 a
year.
An Nvidia spokesman didn't immediately respond to a request for
comment.
Royal Bank Notches Record Earnings as Quarterly Results From Canada's
Biggest Banks Beat Expectations
Royal Bank of Canada's record earnings in the latest quarter capped a
strong period for the country's big lenders, as growth in markets-exposed
operations and resilient customers helped drive stronger-than-expected
results despite the uncertain backdrop for global trade.
Canada's six largest banks are looking to maintain the momentum
through the remainder of the year, backed by loan-loss provisioning they
say captures heightened risk and capital reserves that sit well above the
minimum required by the industry regulator. The latest tariffs being
imposed by the U.S. aren't expected to derail growth or the recovery
expected for Canada's economy, bank executives say.
Royal Bank, Canada's biggest bank by market value and one of the
largest in North America by assets, reported record net income of 6.02
billion Canadian dollars (US$4.34 billion), or C$4.23 a share, in the
fiscal third quarter against C$5.41 billion, or C$3.75 a share, a year
earlier.
Kioxia, Sandisk to Invest More Than $31 Billion in Memory Chips
Kioxia Holdings and Sandisk plan to invest more than $31 billion in
Japan to strengthen their joint venture and drive the large-scale supply
of flash memory chips in the age of artificial intelligence.
These investments through 2032 will support the continuing buildout of
production infrastructure in Japan, along with related technology, the
companies said Thursday.
Kioxia also said it plans to build a new facility at its Kitakami
plant in the northern Japanese prefecture of Iwate to expand flash memory
production capacity. The company targets operations to begin in the
fiscal year starting April 2029.
U.S. Jobless Claims Pull Back Again
U.S. jobless claims slid again last week, continuing this summer's
rollercoaster ride for unemployment levels.
The number of people who filed for unemployment benefits was 203,000
in the week through Aug. 22, 4,000 lower than the upwardly revised
207,000 reported a week earlier, the Labor Department said Thursday.
Economists surveyed by The Wall Street Journal were expecting to see the
figure come in at 208,000.
Continuing claims, which scale with the total size of the unemployed
population, totaled just under 1.78 million in the week through Aug. 15,
falling by 18,000 from the downwardly revised total a week earlier. The
data on continuing claims lag the initial-claims data by a week.
Kalshi and the Weather Co. Join Forces on Climate Trades
Kalshi said it is looking to broaden its fast-growing
weather-predictions markets with meteorological know-how from the Weather
Co., which is now verifying outcomes on climate trades.
The companies said they want to explore new weather markets for
sporting events, for example, citing local ski conditions and marathon
race days. Consumers use Kalshi to trade on predictions ranging from what
the highest temperature will be in Los Angeles on a given day to whether
2026 will be the hottest year ever. The platform said it chose the
Weather Co. because it is one of the most trusted meteorological brands.
Kalshi said its weather vertical is expected to reach $1.1 billion in
trading volume this year as users put money on climate trends. The
company said its weather markets reached $564 million in volume in 2026
as of July, and surpassed the 2025 total in March. The total volume for
weather and climate markets on Kalshi has grown 500% year over year, the
company said.
Enbridge Forms $1.95 Billion Joint Venture to Expand British Columbia
Pipeline
Enbridge has partnered with private equity companies KKR and Apollo
Global Management to fund a 2.7 billion Canadian dollar ($1.95 billion)
expansion of its natural gas pipeline system in British Columbia.
Under the joint venture agreement, the investment group will provide
up to C$700 million in up-front cash to support Enbridge's sanctioned
Aspen Point and Sunrise expansion projects for the Westcoast natural gas
pipeline system.
In exchange, KKR and Apollo will receive a cumulative 29%
noncontrolling stake in the network.
Hormel Foods Cuts Sales Outlook Amid Consumer Pullback, Higher Costs
Hormel Foods cut its sales guidance after running into high fuel costs
and a tough consumer environment.
The food company, which owns Spam and Skippy peanut butter, was
already anticipating some difficulties in its fiscal third quarter
because it divested from several businesses. However, volumes were even
lower than expected as many shoppers pulled back on spending, executives
told analysts on a call Thursday.
Hormel cut its outlook for annual sales to $12.1 billion to $12.2
billion compared with a prior range of $12.2 billion to $12.5 billion.
TALKING POINT This Market Strategist Sees Trouble Ahead for AI Stocks. What to Buy Instead.
Michael O'Rourke witnessed the internet boom of the late 1990s and its subsequent bust firsthand as an institutional trader for Spear, Leeds & Kellogg on the floor of the New York Stock Exchange.
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