Good morning!

Last week wasn't so hot in the markets, thanks to the back-and-forth over tariffs and some unexpectedly low employment numbers. On Friday, all the stocks in the S&P's 500 fell an average 1% and the major averages fell more than 2% over the week. Here's what's happening this week ...

• The spotlight this week is on the energy earnings, with many of the major oil and gas companies among the 1700+ reporting. This morning, numbers are due from AMD, Caterpillar, Amgen, Pfizer, Duke Energy, and BP, followed Wednesday by McDonald's, Novo Nordisk, Walt Disney, Uber, Shopify, Sony Group, DoorDash, and Thomson Reuters. Thursday earnings are due from Eli Lilly, Toyota, Mitsubishi Financial, ConocoPhillips, Brookfield, Constellation Energy, and Motorola, followed Friday by Algonquin Power and Lamar Advertising. *

• After a hot streak that saw the S&P 500 notch five straight record closes, the market hit the brakes—dropping four days in a row and ending Friday down 1.6%. So, what happened? For starters, stocks were looking a little too pricey, and pros decided it was time to cool off. Then came the July jobs report—not just weaker than expected, but with big downward revisions for May and June. That stirred up political drama, with President Trump firing the head of the Bureau of Labor Statistics over the numbers. Trade tensions didn’t help either. Talks with China, Mexico, and Canada are dragging, and companies are feeling the pinch from rising costs. Plus, August is historically a rough month for markets—vacations, back-to-school spending, and natural disaster worries tend to keep investors on edge. **

• Thanks to Trump’s new tax rules under the “One Big Beautiful Bill Act,” major corporations are seeing some serious cash roll in. AT&T, for instance, expects around $2 billion in tax savings this year, and possibly $3 billion annually by 2027. That boost largely comes from changes allowing companies to immediately write off assets and R&D expenses, which is music to Wall Street’s ears. Tech giants are getting even sweeter deals—Meta could save $11 billion, while Amazon’s tax break might top $15.7 billion. All in, research estimates put the total corporate windfall at $148 billion across 369 S&P companies. While these savings don’t directly boost earnings, they do fuel stock buybacks, debt reduction, and fresh capital projects, which could give valuations an extra lift. Translation: less cash for Uncle Sam, more leverage for balance sheets.***

The financial advisors at Miramontes Capital diligently keep up with anything that can impact our clients' finances and tap into more than 175 years of combined investment experience. We do our all to keep your money protected and growing. If you think you might benefit from our financial experience and oversight, contact us today for a FREE, no-obligation consultation. Just call (800) 460-1595. Until next week...

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