KRISPY KREME SURGES LIKE A MEME

Recent market action reveals a split landscape: strong fundamentals from names like Thermo Fisher (+12%) and NextEra (+4%) contrasted with meme-stock mania fueling wild surges in Krispy Kreme (+25–34%), GoPro (+50%), Wendy’s (+25%), and Kohl’s (+90% intraday). While companies like Texas Instruments and Moody’s beat earnings and saw moderate gains, others like Canadian National and AT&T struggled with mixed or missed results. Meanwhile, Trump’s new U.S.-Japan trade deal lowers tariffs to 15% and unlocks a $550B Japanese investment pledge, boosting both U.S. and Japanese markets—though tensions with the EU remain high. Analysts warn that meme stock rallies are driven by hype and short squeezes, not fundamentals, urging caution amid record retail inflows and high volatility.

💡 Texas Instruments (TXN) -12%

📊 Q2 Earnings Beat: EPS $1.22 vs. est. $1.17, revenue ~$3.82 B vs. est. inline

🔍 Ratios & Tech: P/E ~41, dividend yield ~2.5%, bouncing off lows, price popped ~+2–3% post-earnings

👥 Analyst Take: Zacks highlights strong key metrics, cautious on forward guidance

📌 Verdict: Mild Buy/Hold—rally on beats, but pricey. Target: ~$190–$200.

👀 Stoic expectations for the future caused a sharp decline

🚂 Canadian National (CNI) -4%

📉 Q2 Earnings Miss: EPS $1.35 vs. est. $1.41; revenues ~flat or slightly down

📊 Fundamentals: Trades 21× 2024 EPS ($5.90); target hikes to $137 despite hold rating

📈 Tech Reaction: Stock slid on miss, but held key support at earnings announcement.

👓 Analyst: Continue Hold, valuation still high.

⚡️ NextEra Energy (NEE) -4%

✅ Q2 Earnings Beat: Adj EPS $1.05 vs. $1.01; net $0.98 reported

🔍 Valuation: Strong analyst sentiment: median target ~$82; high at ~$103

📈 Chart Reaction: Shares climbed on clean beat, momentum bullish.

📌 Verdict: Buy/Overweight—green-energy tailwinds + solid balance sheet.

📚 Moody’s (MCO) +1.5%

💰 Q2 Beats: Revenue ~$1.8 B (+22%), EPS $3.02 (+47%)

🔍 Metrics: Investing in buybacks, raised FY EPS guidance to $11–11.40

📈 Technicals: Stock got a post-earnings bump; still in long-term uptrend.

👥 Analyst: Buy/Hold—great cash flow; watch macro credit cycle.

🧪 Thermo Fisher Scientific (TMO) +12%

📈 Q2 Beat & Raised: Adj EPS $5.36 (vs. $5.22 est.), revenue $10.85 B (+3%)

🔄 Analysts: Majority Buy, median target ~$542.50 (range $450–620)

📊 Fundamentals: P/E ~75; strong growth, resilience in pharma tools.

📈 Chart: +2.5% pre-market pop following results.

📶 AT&T (T) +.4%

📊 Mixed Q2:

EPS $0.54 vs. $0.53 est., revenue $30.8 B vs. $30.5 B

Added 401K phone subs vs. 303K est., fiber additions weaker 

📉 Stock Reaction: Price slipped ~3–4%—beat on subs but lacked internet surprises 

💡 Analyst Views: Zacks cut EPS est ahead; outlook depends on fiber ramp 

📌 Verdict: Hold—solid cash flow and tax savings plan, but growth concerns linger. Target ~$28–30.

🔎 Final Thoughts

Stick with strong-beats like NextEra and Thermo Fisher if you want less drama. Overall, tech and energy are delivering, telecom needs a fiber push, and legacy stocks require patience.

🍩 Krispy Kreme (DNUT)

📈 Meme Surge: +25–34% on heavy retail interest, ~28% short interest fueling short-squeeze action.

📉 Fundamentals: Q1 sales down 15%, EPS –$0.05, dividend suspended.

💡 Analyst Take: Speculative buy at best; momentum-driven, with warnings that spikes often reverse fast.

📹 GoPro (GPRO)

📈 Meme Response: Soared ~50% mid-week after a ~40% jump previous day.

📉 Before Frenzy: Struggling—declining sales, last profitable in 2022, flat to down fundamentals.

🧠 Analyst Perspective: Rally fueled by high short interest (~8%), retail hype; similar caution applies—spikes rarely reflect real business turnarounds.

🍔 Wendy’s (WEN)

📈 Meme Reaction: Jumped ~25–26% on Reddit chatter around “chicken tendies” and viral tweets.

📉 Pre‑Craze Performance: Operating decently—beat Q1 estimates (~$0.20 EPS vs. $0.14 est.), rev $460 M vs. $444 M.

🧠 Context: Seen as a more stable meme play since fundamentals aren’t dire; social media savvy brand. Analysts warn gains may fade soon.

🛍️ Kohl’s (KSS)

📈 Meme Spike: Surged ~90% at open, closed +38%, then pulled back ~9% next session.

📉 Pre‑Frenzy Fundamentals: Struggling retail: weak sales, leadership churn, underperformed outlook.

🧠 Analyst Notes: Featured in the new meme wave with heavy short interest; caution sign from market analysts that this is froth, not turnaround.

🧭 What This Trend Says About Market Mood

• Retail exuberance is back – record retail inflows (~$155 B YTD) and massive social media influence.

• High-risk appetite – preference for heavily shorted, small‑cap/lower-fundamental names over blue‑chip stability.

• Heightened volatility – boom-bust patterns repeat: sharp spikes trigger equal-sized pullbacks. Momentum driven, not fundamentals.

• Warning lights flashing: Analysts urge, “Don’t get swept up”—these are entertainment plays, not long-term holds.

🎯 Final Thoughts

Retail mania is fueling wild runs in underdog names. If you’re chasing this wave, set tight stop‑losses and treat these like short-term trades—not long-term bets. Fundamentals don’t back these moves. And if you’re feeling FOMO… remember, it’s more of a carnival than a strategy.

🇺🇸🤝🇯🇵 TRUMP‑JAPAN TRADE DEAL – WHAT WENT DOWN

📉 Tariff Terms:

• Tariffs on Japanese imports reduced from a potential 25% to 15% under the new agreement  .

• Applies to autos, trucks, rice, and more. Still unclear if any products face steeper levies  .

💵 $550 B Investment Pledge:

• Japan commits to invest $550 billion in the U.S., with roughly 90% of profits expected to stay stateside  .

📈 Market Impact:

• Tokyo stocks surged: Toyota +14%, Honda +12%, Nikkei up ~3.5–3.7%  .

• U.S. stocks rallied too—boosting the Dow, S&P 500, Nasdaq  .

🧠 Analysts Say:

• HSBC, Oxford Economics: Reduced tariffs, especially on autos, are net positives for U.S. economic growth—they lower business costs without sparking consumer inflation  .

• Seen as a sign of “constructive trade negotiations” which bolster market confidence .

  
  

⚠️ Watch-Out Factors:

• No granular text yet—some products may still carry high tariffs like steel/aluminum at 50%, and auto tariffs specifics remain murky .

• Europe isn’t backing down—they’re preparing €100 billion in counter-tariffs if U.S. tariffs go ahead without a deal .

📌 What to Watch Next

• Will the EU step aside or join similar bilateral deals?

• Real investment flow—will the $550 B manifest, and how fast?

• Consumer price impact—any inflation spike from weaker yen or tariffs?

Big picture:

it’s billed as a massive win—tariffs down, cash in, stocks up 📈—but we’re still waiting on the fine print. Regional ripple effects (EU, consumer costs) will decide if it’s game-changer or just headline news.