Key Takeaways
- U.S. stock markets experienced declines, with the S&P 500 dropping 0.35%, Nasdaq decreasing 0.28%, and Dow losing 0.39%. The NASDAQ also briefly went slightly negative, dropping 0.07%.
- Pfizer (PFE) CEO Albert Bourla confirmed active discussions with the U.S. government on drug pricing policies, following a July 31 letter from President Donald Trump, though no firm commitments have been made.
- UBS adjusted price targets for key tech and pharma stocks, raising Palantir Technologies' (PLTR) target to $165 from $110 and reducing Vertex Pharmaceuticals' (VRTX) target to $553 from $582.
- Telecom Italia (TIT) reported stable H125 earnings with revenues of EUR6.60 billion and an EBIT of EUR529 million, alongside a significant leadership change as CFO Xalaza resigned and Peluso is set to return after Q3 results.
- Geopolitical tensions remain high, with Hezbollah's Naim Qassem issuing warnings to Israel and Ukrainian President Volodymyr Zelensky having "productive talks" with President Trump focused on ending the war and discussing sanctions against Russia.
U.S. stock markets saw a downturn, with the S&P 500, Nasdaq, and Dow Jones Industrial Average all registering losses. The S&P 500 fell 0.35%, the Nasdaq decreased 0.28%, and the Dow lost 0.39%. Earlier in the day, the Nasdaq had briefly dipped into negative territory, dropping 0.07%. This market movement occurred amidst broader economic and political developments.
Corporate and Analyst Updates
Telecom Italia (TIT) announced its H125 earnings, reporting revenues of EUR6.60 billion and an EBIT of EUR529 million, indicating stable earnings for the period. The company also confirmed a significant change in its financial leadership, with CFO Xalaza resigning and Peluso slated to return as CFO following the Q3 results.
In analyst coverage, UBS made notable adjustments to price targets for two prominent companies. The firm increased its price target for Palantir Technologies (PLTR) to $165 from $110, maintaining a Neutral rating. This adjustment followed Palantir's strong Q2 2025 results, which saw revenue grow 48% year-over-year to $1.00 billion, and the company raising its full-year 2025 revenue guidance to $4.14 billion to $4.15 billion. UBS noted "no big cracks in the story" for Palantir. Conversely, UBS reduced its price target for Vertex Pharmaceuticals (VRTX) to $553 from $582, while still maintaining a Buy rating on the stock.
In other corporate news, Berkshire Hathaway reportedly increased its stake in Sirius XM (SIRI) to 37% following a sell-off driven by weak earnings.
Policy and Economic Developments
Pfizer (PFE) CEO Albert Bourla confirmed that the company is in active discussions with the U.S. government regarding drug price policies. These talks stem from a July 31 letter from President Donald Trump concerning drug pricing, though Bourla stated that no major changes are expected in COVID vaccine coverage by insurers this season and no firm commitments have been made in the ongoing discussions. The discussions are part of the Trump administration's "Most-Favored-Nation" policy aimed at aligning U.S. drug prices with those in other developed countries.
On the economic front, the U.S. trade deficit fell to nearly a 2-year low in June, with the trade gap with China shrinking to its lowest level since 2004. This indicates a positive shift in international trade balances for the U.S.
The White House has dismissed the majority of the oversight board members overseeing Puerto Rico's finances. Five of the seven members of the Financial Oversight and Management Board for Puerto Rico (FOMBPR) were relieved of their positions, with the White House citing inefficiency and ineffectiveness.
Democratic Congress members are reportedly planning to introduce legislation aimed at safeguarding the heads of statistical agencies, as reported by the Wall Street Journal. Meanwhile, a House Committee has issued a subpoena to the Justice Department for documents related to the Epstein case, intensifying a congressional probe into the matter.
Geopolitical Landscape
Geopolitical tensions in the Middle East remain a focal point. Hezbollah leader Naim Qassem issued a stark warning, stating that "if Israel resumes larger war against Lebanon, rockets will hit Israel." He also commented on ongoing discussions, saying, "Let them carry out the first agreement, then we can discuss everything," while also clarifying that the group "did not agree to any new agreement."
Ukrainian President Volodymyr Zelensky had a "productive talk" with President Trump, with the main focus on ending the war in Ukraine. Zelensky expressed gratitude for U.S. efforts toward a fair and lasting peace and confirmed that they discussed sanctions against Russia. Trump and Zelensky have had multiple conversations recently, with Zelensky noting that the latest call was "probably the best conversation we have had during this whole time, the most productive". Discussions also covered Russia's ongoing attacks and security concerns.
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.