Iran Standoff Keeps Oil Surging as Fed Decision Looms
Stocks are slipping into the red in premarket trading as investors brace for a busy session headlined by the Fed's interest rate decision and earnings from several MAG 7 companies, while the U.S.-Iran conflict is escalating again. The Federal Open Market Committee (FOMC) is expected to hold rates steady in what will be Jerome Powell's final meeting as chair, with Kevin Warsh waiting to take the helm. On the geopolitical front, President Trump pressed Iran to "get smart soon" after reportedly instructing aides to prepare for an extended naval blockade of Iranian ports, opting to squeeze Tehran's economy rather than resume bombing or stand down.
Starbucks Turnaround Gains Steam
Starbucks (SBUX) is up +5% in premarket trading after posting its third straight quarter of positive comparable sales, snapping a seven-quarter losing streak. Global comp sales rose +6.2%, nearly double the +3.7% estimate, with U.S. comp sales up +7.2% on stronger traffic and higher average ticket. Revenue climbed +9% to $9.5B and EPS of $0.50 topped the $0.44 estimate. SBUX guided for full-year comp sales growth of at least +5% and EPS of $2.35, ahead of the $2.30 consensus.
Robinhood Slips on Q1 Miss, Raises Cost Outlook
Robinhood Markets (HOOD) is down -11% after Q1 earnings and revenue both missed expectations, with EPS of $0.38 falling short of the $0.39 estimate and revenue of $1.07B trailing the $1.14B consensus. Crypto revenue dropped -47% YoY to $134M, partially offset by gains in options and equities. HOOD also lifted its full-year combined OpEx and stock-based compensation guidance to a $2.76B midpoint, well above the $2.27B consensus, citing new investment in Trump Accounts.
Visa Beats, Lifts Outlook, Launches $20B Buyback
Visa (V) is up +5% in premarket trading after Q2 EPS of $3.31 topped the $3.10 estimate and revenue of $11.2B beat the $10.8B consensus, with consumer spending remaining resilient across payments, cross-border, and commercial volumes. V raised its full-year EPS and revenue growth outlook to the low-teen range, above prior low double-digit guidance, and authorized a new $20B share repurchase program. Payments volume grew +9% YoY, cross-border volume rose +12%, and processed transactions advanced +9%.
TSMC Exits Arm Holdings Stake
Taiwan Semiconductor Manufacturing Company (TSM) fully divested its position in Arm Holdings (ARM), with subsidiary TSM Partners selling 1.11M shares at $207.65 apiece for roughly $231M in proceeds. The transaction resulted in a $174M earnings impact and was described as part of a broader equity disposal and portfolio optimization strategy.
