Good morning investors!
Today we cover:
home sales miss
IBM reports
Saving capital gains tax
📊 Economy and News
US New Home Sales Miss Expectations in June
New U.S. single-family home sales rose 0.6% to 627,000 units in June, below the forecast of 650,000 units.
Higher mortgage rates and a record inventory of 511,000 unsold homes (highest since 2007) are pressuring prices, with the median new home price dropping 2.9% to $401,800.
Sales varied regionally: up 5.1% in the South, 6.3% in the Midwest, but down 27.6% in the Northeast and 8.4% in the West.
Global hits:
Canada’s retail sector suffers May pullback amid auto weakness, trade strains.
Mexico inflation fall in early July reignites rate cut expectations.
Irish housing construction surges 35% in Q2, strongest first half since 2008.
Britain and India sign free trade agreement to boost bilateral trade.
Trump trouble: Trump administration sues New York City to block immigration ’sanctuary’ laws.
US judge tosses Trump administration bid to cancel union contracts.
Trump spars with Powell over renovation costs during Fed visit, but backs off firing threats
Good to know: U.S. business activity picked up in July, but companies asked higher prices for goods and services, supporting economists’ views that inflation will accelerate in the second half of the year.
Also, survey from S&P Global showed sentiment among businesses remained downbeat.
Lastly, President Donald Trump said he does not want to “destroy” Elon Musk’s companies by taking away their U.S. government subsidies.
Jobless claims: Jobless claims dropped by 4,000 to 217,000 for the week ending July 19, below analysts' expectations of 227,000. Claims fell for the sixth consecutive week, reaching the lowest level since mid-April.
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📈 Stocks
S&P 500 6,363.35 (+0.070%)
DJIA 44,693.91 (-0.70%)
NASDAQ 21,057.96 (+0.18%)
BRENT CRUDE 69.18 (-0.01%)
* Prices as of Jul 25th, 12:20 AM UTC
Intel Q2 2025: Strong Revenue, Major Cost Cuts
Intel reported Q2 2025 revenue of $12.86 billion, surpassing Wall Street’s $11.92 billion estimate, despite a $2.9 billion net loss (67 cents per share).
The company forecasts Q3 revenue at $13.1 billion, exceeding expectations of $12.65 billion.
Under new CEO Lip-Bu Tan, who took over in March, Intel implemented significant cost-cutting measures, including a 15% workforce reduction (nearly 4,000 employees) to reach 75,000 by year-end, targeting $17 billion in 2025 expense savings.
The foundry division struggled, posting a $3.17 billion loss on $4.4 billion revenue, prompting Intel to cancel fab projects in Germany and Poland, slow Ohio factory construction, and consolidate operations in Vietnam and Malaysia.
Tan emphasized that future investments, including the 14A process, will require confirmed customer commitments, and he will personally approve chip designs, citing past overinvestment as a cause of underutilized facilities.
Client computing (PC processors) sales fell 3% to $7.9 billion, while data center revenue, including AI chips, grew 4% to $3.9 billion. Intel’s stock rose 13% in 2025, rebounding from a 60% drop in 2024, its worst year on record.
LOL: After buying $1.5 billion of bitcoin in 2021, Tesla sold three-quarters of its holdings the next year as the market was tanking.
Bitcoin has since rebounded in a big way, jumping about 80% just in the past year, meaning Tesla has lost out on billions of dollars in potential gains.
The stock fell -8% after a bad report.
Shocking: Musk’s Starlink hit with outage day after rollout of T-Mobile satellite service. Nvidia said that at least $1 billion worth of its artificial intelligence chips illegally entered China. Moreover, it called bootleg data centers a losing proposition.
UnitedHealth confirms federal investigation into its Medicare practices.
Exciting: FCC approves $8 billion Paramount-Skydance merger.
Apple releases public preview of iOS 26, its biggest iPhone software redesign since 2013
💵 Personal Finance
Strategies to Reduce Capital Gains Tax on Home Sales
President Donald Trump is considering eliminating capital gains taxes on home sales to boost the housing market, a move requiring Congressional approval.
Currently, single filers face taxes on profits exceeding $250,000, and married couples on profits over $500,000, with rates of 0%, 15%, or 20% based on income, plus a potential 3.8% surcharge.
Who Pays Capital Gains Taxes
Most home sellers avoid these taxes due to high thresholds, but about 34% of single filers and 10% of married couples may exceed them. Older homeowners with long-held properties are most affected.
How to Lower Your Tax Bill
To reduce capital gains taxes, increase your home’s “cost basis” by including capital improvements like renovations, not routine maintenance.
Keep detailed records of improvements to lower your tax liability when selling.
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👩🏽⚖️ Legal Stuff
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