"On Friday, a federal appeals court ruled many of the President's recently announced tariffs unconstitutional, raising the prospect that monies raised from the levies will have to be refunded, and will not in fact reduce the deficit at all. With this income stream now threatened, yields on US Treasury bonds are rising, with the 30-year Treasury bill approaching 5% today."
"And as bond yields rise, stock markets fall. The Vanguard S&P 500 ETF ( NYSEMKT: VOO) is currently down 1.2% premarket. Academy Sports and Outdoor ( Nasdaq: ASO) reports a $1.94 per share fiscal Q2 2026 profit this morning, $0.22 less than expected. Revenue is right in line with expectations at $1.6 billion. On the plus side, guidance is ahead of expectations, with the sporting goods store saying fiscal 2026 earnings should range from $5.60 to $6.30 per share, and revenue will exceed $6 billion."
"Signet Jewelers ( NYSE: SIG) beat expectations soundly with a $1.61 per share profit and sales of $1.5 billion for its Q2. Signet's Q3 revenue forecast looks sound at $1.34 billion or more in revenue, as does its full year forecast form $6.7 billion or $6.8 billion in revenue. Earnings for this fiscal year 2026 on the other hand look iffy. Management says profits per share could range from as low as $8.04 to as high as $9.57 - a very wide range."
A Congressional Budget Office projection estimated new tariffs could cut the U.S. budget deficit by about $4 trillion over ten years, but a federal appeals court ruled many of the President's tariffs unconstitutional, creating the prospect of refunded levies and loss of that revenue. With that income threatened, US Treasury yields are rising and the 30-year yield nears 5%, pressuring stocks such as the Vanguard S&P 500 ETF (VOO). Academy Sports reported fiscal Q2 profit of $1.94 per share, below expectations with revenue $1.6 billion, while raising fiscal 2026 guidance. Signet beat Q2 estimates with $1.61 EPS and $1.5 billion sales, provided solid near-term revenue guidance, but issued a wide FY2026 EPS range of $8.04 to $9.57.
Read at 24/7 Wall St.
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