Key Takeaways
- Nvidia's (NVDA) market capitalization has surged to approximately $4.3 trillion, surpassing the combined value of Amazon (AMZN), Tesla (TSLA), and Netflix (NFLX), which stand at around $4.02 trillion collectively.
- US Commerce Secretary Lutnick lauded the recent EU trade deal as a "masterclass" by former President Trump, emphasizing that the EU agreed due to concerns over pharma and auto industries, and suggesting US trade surpluses indicate America has been "sold out."
- US economic data shows a narrowing goods trade deficit in June to -$86.0 billion, better than expected, alongside slight increases in wholesale and retail inventories.
- UPS (UPS) is closing more facilities due to decreased Amazon volume and faces uncertainty from customers regarding peak season plans, possibly linked to US trade policy.
- Spain has expanded its antitrust probe into Apple (AAPL) over App Store pricing practices, while iPower (IPW) unveiled a new blockchain strategy for market expansion.
Nvidia (NVDA) continues its remarkable ascent, with its market capitalization now exceeding the combined valuations of tech giants Amazon (AMZN), Tesla (TSLA), and Netflix (NFLX). The chipmaker's valuation has reached approximately $4.3 trillion, driven by explosive AI-driven growth, compared to the ~$4.02 trillion aggregate of Amazon ($2.47T), Tesla ($1.05T), and Netflix (~$0.5T).
On the trade front, US Commerce Secretary Lutnick provided insights into recent US-EU negotiations, describing the agreement as a "masterclass" orchestrated by former President Trump. Lutnick indicated that the EU's willingness to strike a deal stemmed from their desire to prevent the US from "ripping out pharma firms from Europe" and concerns over the auto sector. He also controversially stated that America's trade surpluses signify the nation has been "sold out."
Recent US economic indicators present a mixed picture. The US goods trade balance for June showed a deficit of -$86.0 billion, a significant improvement from the previous -$96.6 billion and better than the estimated -$98.0 billion. This was influenced by a -4.2% decrease in advance goods imports, while exports saw a -0.6% decline. Wholesale inventories saw a preliminary increase of 0.2% month-over-month in June, while retail inventories rose by 0.3%. However, retail inventories excluding autos were flat at 0.0%. PayPal's CFO noted a slight softening in retail spending during Q2, particularly in areas likely impacted by tariffs. Analysts suggest Eurozone GDP growth was likely flat in Q2, possibly due to frontloading ahead of anticipated US tariffs.
The logistics sector is experiencing headwinds, with UPS (UPS) announcing the closure of additional buildings and sort centers. This move is attributed to a decrease in volume from Amazon, a key customer. Furthermore, the UPS CEO highlighted that customers have not yet shared their peak season plans, potentially due to ongoing uncertainty surrounding US trade policy.
In other corporate news, Spain's antitrust regulator, the CNMC, has expanded its investigation into Apple (AAPL) over potential anti-competitive behavior related to its App Store pricing practices. Meanwhile, iPower (IPW) is strategically expanding its market presence by unveiling a new blockchain strategy, signaling a push into the Web3 ecosystem to drive tech-driven revenue streams. Additionally, Norwegian Cruise Line Holdings (NCLH) is expanding its geographic offerings with a new waterpark at Great Stirrup Cay.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.