Tomorrow’s market action will be shaped by key earnings reports from struggling giants Nike and Constellation Brands. Investors are also watching significant sector shifts, including a strong run for utilities amid a heatwave, gains in healthcare and airlines, but notable pullbacks in tech, with Microsoft facing its worst month in decades and chip/memory ETFs cooling.
As markets anticipate Tuesday's opening bell, investors are keenly focused on a confluence of earnings reports, sector rotations, and significant movements across key industries. The daily 'Stocks @ Night' digest offers a critical first look at the factors poised to influence the next trading session, building on late-day action that saw Alphabet notably jump after its inclusion in the Dow Industrials.
Earnings Watch: Nike & Constellation Brands Under Scrutiny
All eyes will be on two major players reporting after the bell: Nike and Constellation Brands. Athletic apparel giant Nike (NKE) has endured a brutal period, with its stock down nearly 20% over the last three months, a staggering 48% from its August 2025 peak, and approximately 35% year-to-date. Within the Dow Industrials, only Chevron has fared worse than Nike in the past quarter, and no other Dow constituent has performed as poorly over the last 12 months. (A 1-year mountain chart for Nike shares was referenced in the original content).
Meanwhile, Constellation Brands, the powerhouse behind Corona and Modelo beers, has seen its shares decline almost 8% in three months and 21% from their July 2025 high. These reports will offer crucial insights into consumer spending and brand strength.
Heatwave Sparks Utilities, Healthcare Leads Gains
A widespread heatwave threatening much of the U.S., from Boston to Atlanta to Chicago, is sending temperatures into the 90s and higher, creating a bullish environment for the utilities sector. The S&P utilities sector has emerged as the second-best performer over the past week, climbing nearly 3%. Leading the charge are NRG Energy, up 7% in a week, American Electric Power with almost a 6% gain, and Pinnacle West, Eversource, and Edison each rising approximately 5%. (A 5-day mountain chart for NRG Energy was referenced in the original content). This surge comes even as natural gas futures have dipped 2.5% in the same period. Topping all sectors, healthcare surged 7% over the last week.
Tech Sector Shows Mixed Signals: Chips Cool, Microsoft Struggles
After hitting new highs last week, both the Roundhill Memory ETF (DRAM) and VanEck Semiconductor ETF (SMH) have experienced a notable pullback. DRAM is down 11.5% from its recent peak, while SMH has shed 6%. Conversely, the broader S&P Healthcare Sector reached a new high on Monday and is up almost 8% in a month, buoyed by strong performances from Moderna (up 47% in a month), Bio-Techne (surging 37% after Merck announced acquisition plans), Humana (up 27%), Charles River Labs (around 25%), and Cardinal Health (up 20%). (A 1-month mountain chart for Moderna shares was referenced in the original content).
Airlines also celebrated a strong run, with the S&P Industry hitting a new high Monday and climbing almost 16% in June. Southwest Airlines, United, Delta, and American all posted double-digit gains.
However, software giant Microsoft is on track for its worst month since 2000, down 18% in June and a substantial 34% from its July 31, 2025 high. Despite the downturn, widely followed analyst Dan Ives of Wedbush Securities reiterated a "buy" rating on Monday, arguing the stock has been beaten down excessively.
