The Daily Breakdown takes a closer look at the Magnificent 7 to gauge which stocks have been leaders and which ones have been laggards.
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Tuesday’s TLDR
- Mag 7 has been mixed this year
- BTC tries to lead crypto push
- GM falls as tariffs hit earnings
What’s Happening?
Monday’s cup of coffee hadn’t kicked in yet when I wrote in yesterday’s note that Tesla and Alphabet report earnings on Tuesday afternoon — they both report on Wednesday afternoon.
We’re a little over halfway through the year, and the Magnificent 7 has been mixed. On the one hand, several components have done great. Meta, Microsoft, and Nvidia all hit record highs in Q2 and are each up at least 20% or more so far this year.
Then there are the laggards, as stocks like Apple and Tesla are down 15.2% and 18.7% so far this year, respectively.
The stocks that don’t fit in either category — Alphabet and Amazon — are doing better now, with GOOGL up about 0.5% in 2025 and Amazon up 4.5%. However, that’s only after both stocks rallied more than 25% over the last three months.
The Bottom Line: I just bombarded you with a lot of performance numbers, but it’s to emphasize that while these stocks are all lumped into one group, they’re not all created equal. They ebb and flow in terms of which ones are in demand and which ones aren’t. We’ll see if that changes with earnings season, with Alphabet and Tesla due up this week and four of the remaining five reporting next week.
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The Setup — Lockheed Martin
Shares of Lockheed Martin are tumbling this morning, down about 7% in pre-market trading after the firm reported disappointing quarterly results. Lockheed’s Q2 earnings results badly missed analysts’ expectations after the company took an unexpected pre-tax loss.
The stock — which was already down about 25% from its record high in October — is not reacting well to the news. But will buyers show up in the low $400s?
As of yesterday’s close, LMT commanded a market cap of ~$108 billion and paid a dividend yield of almost 3%. At today’s open, the former will be smaller and the latter will increase. Either way, bulls will be wondering whether support comes into play around $420, just as it has since the beginning of 2024.
If it does, bulls have a solid support area to measure their risk against, as they hope for a situation where the worst is now in the rearview mirror and a larger rebound takes hold in LMT.
However, buyer beware: These types of dips are often referred to as “trying to catch a falling knife” — a saying not made for easy trading situations. Keep in mind that if support doesn’t materialize in this area, more selling pressure could ensue
What Wall Street Is Watching
General Motors stock is dipping this morning despite adjusted earnings per share of $2.53 beating analysts’ expectations of $2.33 a share. However, $1.1 billion in tariffs weighed on the company’s results, while earnings slipped from $3.03 a year ago. Check out GM’s fundamentals.
Bitcoin has sat out of the recent crypto rally over the past few days, but so far, it’s up nicely on Tuesday morning while many other cryptoassets take a breather. Currently sitting just above $119K, bulls are wondering if BTC can clear $120K and challenge the record high just above $123K. View the charts for Bitcoin.
Disclaimer:
Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.