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Good morning investors! Markets finished Thursday slightly lower as investors digested fresh labor data. Futures point to a steady open ahead of today’s opening bell.
Today we cover:
401(k) is changing
Eli Lilly falls
More earnings
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📊 Economy and News
Trump’s Executive Order on 401(k) Alternative Investments
President Donald Trump is about to sign an executive order aimed at expanding 401(k) and workplace retirement plans to include alternative investments like private equity, traditionally reserved for institutional and high-net-worth investors.
This order directs the Labor Department and SEC to provide guidance for employers to offer these options, targeting the $12 trillion defined-contribution savings market.
While private equity and credit investments are riskier, costlier, less transparent, and less liquid than public stock and bond funds, proponents argue they could provide greater diversification due to the growing private market. However, consumer advocates like Sen. Elizabeth Warren question the benefits and highlight potential systemic risks, calling for further analysis by the Financial Stability Oversight Council.
The executive order clarifies Trump’s stance but requires new rules, which may not take effect until 2026. Plan sponsors must conduct rigorous due diligence to meet fiduciary duties, carefully vetting fees, strategies, and performance, with expert counsel recommended to navigate these complex options.
Global hits:
China’s July exports beat forecasts, rising 7.2 percent year-on-year.
Kuwait says OPEC is “watching the market” after prices dipped below $72.
Bank of England cut its policy rate to 4 percent.
Exciting: Lawmakers want to end HR ghosting during the interview process.
Good to know: President Donald Trump signed an executive orderthat aims to punish banks for restricting services to customers based on their political or religious beliefs, formalizing “debanking” protections that conservatives and crypto industry advocates have been pushing for.
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📈 Stocks
S&P 500 6,340.00 (-0.080%)
DJIA 43,968.64 (-0.51%)
NASDAQ 21,242.70 (+0.35%)
BRENT CRUDE 66.34 (-0.78%)
* Prices as of Aug 8th, 12:20 AM UTC
Eli Lilly gives mixed news
Eli Lilly fell 11% despite a good earnings report as the new obesity pill failed to make an impression:
Raised 2025 Guidance: Eli Lilly increased its 2025 sales forecast to $60B-$62B (from $58B-$61B) and adjusted earnings to $21.75-$23 per share (from $20.78-$22.28).
Strong Q2 Results: Q2 revenue reached $15.56B (up 38% YoY), surpassing estimates of $14.71B. Adjusted EPS was $6.31, beating expectations of $5.57.
Mounjaro and Zepbound Performance: Mounjaro generated $5.2B (up 68% YoY), and Zepbound brought in $3.38B (up 172% YoY), both exceeding analyst estimates.
Orforglipron Trial Results: The experimental obesity pill led to ~12% weight loss (27 pounds) at 72 weeks in a late-stage trial, slightly below Wall Street’s 15% expectation, causing a ~13% share price drop.
Market Impact: The pill’s results position it as a potential needle-free GLP-1 alternative, with regulatory submission planned by year-end and a possible launch by mid-2026.
Side Effects: 10.3% of patients on the highest dose discontinued due to gastrointestinal side effects (nausea, vomiting, diarrhea), higher than the 7% or less for Wegovy and Zepbound.
Outlook: Eli Lilly aims to address the growing demand for GLP-1 drugs with orforglipron, which could ease supply constraints and expand access due to simpler production and distribution. The company faces potential U.S. import levies and pressure to lower drug prices.
More earnings:
Peloton beat Wall Street’s expectations on the top and bottom lines, delivering a surprise profit that came in well ahead of forecasts. The connected fitness company said it’s introducing another cost-cutting plan to save $100 million in expenses, half of which will come from laying off 6% of staff.
Restaurant Brands International reported mixed quarterly results. Restaurant Brands’ international restaurants reported same-store sales growth of 4.2%. Popeyes, however, reported same-store sales declines.There was strong demand internationally and at Tim Hortons.
Duolingo beat estimates and hiked its full-year guidance and issued a strong third-quarter forecast as it benefits from artificial intelligence-fueled growth. Daily active users jumped 40% to nearly 48 million from about 34 million in the year-ago period.
SoftBank Group reported fiscal first-quarter profit that topped expectations, driven by gains in its Vision Fund tech investment arm.
Warner Bros. Discovery’s second-quarter earnings received a boost from its film studios segment following recent periods of underperformance. The company will split into two companies next year, separating the streaming and studios from the global TV networks business. Also, Superman wasn’t included in this quarter so the next one may get a big boost.
Good to know: Firefly Aerospace’s stock opened at $70 per share in its first day of trading. Elsewhere, Intel shares dropped about 3.5% after Trump calls for CEO to resign immediately. Moreover, California jury rules Meta violated privacy law in case involving period-tracking app.
🛑 Investor sentiment toward stocks plummeted, with bearish sentiment rising 10.2 points to 43.2% in the American Association of Individual Investors' weekly survey, the largest drop since February.
Still, some strategists view this pessimism as a contrarian bullish signal, suggesting investors may have cash to deploy.
🔐 Crypto
Bitcoin $117,233 (+2.01%)
Ether $3,870 (+5.08%)
Solana $170 (+3.33%)
Total market cap $3.83T (+1.91%)
* Prices as of Aug 8th, 12:20 AM UTC
Bitcoin Surges as Trump Plans Crypto in 401(k)s
Bitcoin jumped to $117,000 for the first time since July, following news that President Trump will sign an executive order allowing 401(k) plans to invest in cryptocurrencies, private equity, and real estate.
This move could integrate digital assets into the $9 trillion 401(k) market, boosting crypto adoption.
Crypto-linked stocks like Coinbase and Galaxy Digitalalso jumped.
💵 Personal Finance
Estate planning
Building generational wealth requires more than investing; it demands a clear plan for what happens after you’re gone.
Why it matters: Current exemptions of $13.61 million per individual sunset in 2026, potentially halving the amount heirs can receive tax-free. Acting now locks in today’s generous thresholds.
Beginner tip – Draft a basic will and name guardians for minors; online templates cost under $100.
Advanced tip – Use a grantor-retained annuity trust (GRAT) to transfer future asset appreciation gift-tax-free.
Tool – eEstatePlan offers encrypted document storage and annual beneficiary check-ins for $10 per month.
Case study – After shifting $5 million of appreciating stock into a two-year GRAT, Carlos reduced projected estate tax by nearly $1 million while retaining income during the term.
Review beneficiaries annually, fund revocable trusts to avoid probate delays, and coordinate titling so assets flow exactly as intended. Consult a qualified attorney before executing complex strategies.
💰 Be a Better Investor
“Price is what you pay; value is what you get.”
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👩🏽⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.