Wall Street holds steadier following mixed profit reports from Target, Lowe’s and other retailers

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By STAN CHOE, Associated Press Business Writer

NEW YORK (AP) — Wall Street is holding a bit steadier on Wednesday following the prior day’s swoon for Nvidia, Palantir and other darlings swept up in the mania around artificial-intelligence technology.

The S&P 500 edged down by 0.1%, coming off its third straight loss after setting an all-time high last week. The Dow Jones Industrial Average was up 83 points, or 0.2%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was down 0.4%.

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Mixed profit reports from big U.S. retailers helped keep the market in check. Lowe’s rose 2.8% after the home-improvement retailer delivered a profit for the latest quarter that topped analysts’ expectations. It also said it agreed to buy Foundation Building Materials, a distributor of drywall, ceiling systems and other interior building products, for about $8.8 billion.

TJX, the company behind the TJ Maxx and Marshalls stores, climbed 6.2% after beating analysts’ forecasts for profit and revenue. It also raised its forecast for profit over its full fiscal year, while CEO Ernie Herrman said TJX is seeing “strong demand at each of our U.S. and international businesses” and that its current quarter is off to a strong start.

Target, meanwhile, tumbled 10.1% even though it edged past analysts’ expectations for profit in the spring. The struggling retailer said that CEO Brian Cornell plans to step down Feb. 1 and that an insider, 20-year veteran Michael Fiddelke, will replace him. He helped reenergize the company, but it has struggled to turn around weak sales in a more competitive post-COVID retail landscape.

Estee Lauder dropped 2.3% after offering a forecast for profit this upcoming fiscal year that fell short of Wall Street’s estimates. The beauty company said it expects tariffs to shave roughly $100 million off its upcoming earnings.

La-Z-Boy sank 14.4% after the furniture maker’s profit and revenue for the spring came up shy of analysts’ expectations. CEO Melinda Whittington said it’s contending with “soft industry demand” and that it’s looking at potential alternatives “to address financial pressure from non-core’ parts” of its business.

Tech stocks were feeling pressure again, but not to the same degree as a day before. Nvidia slipped 0.9%, following its 3.5% drop on Tuesday. Palantir Technologies fell 2.1% to add to its 9.4% loss from the day before.

They’ve been facing increasing criticism that their stock prices had shot too high, too fast amid the furor around AI and had become too expensive.

The week’s biggest news for Wall Street is likely arriving on Friday, when Federal Reserve Chair Jerome Powell will give a highly anticipated speech in Jackson Hole, Wyoming. The setting has been home to big policy announcements from the Fed in the past, and the hope on Wall Street is that Powell will hint that an interest rate cut is coming soon.

The Fed has kept its main interest rate steady this year, primarily because of the fear of the possibility that President Donald Trump’s tariffs could push inflation higher. But a surprisingly weak report on job growth across the country may be superseding that.

Treasury yields have come down sharply on expectations for coming cuts to interest rates, and the yield on the 10-year Treasury remained at 4.30%, where it was late Tuesday.

In stock markets abroad, indexes were mixed across Europe and Asia.

London’s FTSE 100 rose 0.7% despite a report that said inflation in the U.K. rose more than expected through July, in part due to soaring airfares and food prices.

Tokyo’s Nikkei 225 dropped 1.5% after Japan reported that its exports fell slightly more than expected in July, pressured by higher tariffs on goods shipped to the U.S. Imports also fell from a year ago.

Hong Kong’s Hang Seng added 0.2%. Shares that trade there of Chinese toy company Pop Mart International Group soared 12.5% after its CEO said its annual revenue could top $4 billion this year and announced the release of a mini version of its popular Labubu dolls.

AP Business Writers Yuri Kageyama and Matt Ott contributed.

Trump thinks owning a piece of Intel would be a good deal for the US. Here’s what to know

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By MICHAEL LIEDTKE, Associated Press Technology Writer

SAN FRANCISCO (AP) — President Donald Trump wants the U.S. government to own a piece of Intel, less than two weeks after demanding the Silicon Valley pioneer dump the CEO that was hired to turn around the slumping chipmaker. If the goal is realized, the investment would deepen the Trump administration’s involvement in the computer industry as the president ramps up the pressure for more U.S. companies to manufacture products domestically instead of relying on overseas suppliers.

What’s happening?

FILE – The Intel logo is displayed on the exterior of Intel headquarters in Santa Clara, Calif., Jan. 12, 2011. (AP Photo/Paul Sakuma, File)

The Trump administration is in talks to secure a 10% stake in Intel in exchange for converting government grants that were pledged to Intel under President Joe Biden. If the deal is completed, the U.S. government would become one of Intel’s largest shareholders and blur the traditional lines separating the public sector and private sector in a country that remains the world’s largest economy.

Why would Trump do this?

In his second term, Trump has been leveraging his power to reprogram the operations of major computer chip companies. The administration is requiring Nvidia and Advanced Micro Devices, two companies whose chips are helping to power the craze around artificial intelligence, to pay a 15% commission on their sales of chips in China in exchange for export licenses.

Trump’s interest in Intel is also being driven by his desire to boost chip production in the U.S., which has been a focal point of the trade war that he has been waging throughout the world. By lessening the country’s dependence on chips manufactured overseas, the president believes the U.S. will be better positioned to maintain its technological lead on China in the race to create artificial intelligence.

Didn’t Trump want Intel’s CEO to quit?

FILE – Intel CEO Lip-Bu Tan delivers a speech during the Computex 2025 exhibition in Taipei, Taiwan, Monday, May 19, 2025. (AP Photo/Chiang Ying-ying, File)

That’s what the president said August 7 in an unequivocal post calling for Intel CEO Lip-Bu Tan to resign less than five months after the Santa Clara, California, company hired him. The demand was triggered by reports raising national security concerns about Tan’s past investments in Chinese tech companies while he was a venture capitalist. But Trump backed off after Tan professed his allegiance to the U.S. in a public letter to Intel employees and went to the White House to meet with the president, who applauded the Intel CEO for having an “amazing story.”

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Why would Intel do a deal?

The company isn’t commenting about the possibility of the U.S. government becoming a major shareholder, but Intel may have little choice because it is currently dealing from a position of weakness. After enjoying decades of growth while its processors powered the personal computer boom, the company fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone’s 2007 debut.

Intel has fallen even farther behind in recent years during an artificial intelligence craze that has been a boon for Nvidia and AMD. The company lost nearly $19 billion last year and another $3.7 billion in the first six months of this year, prompting Tan to undertake a cost-cutting spree. By the end of this year, Tan expects Intel to have about 75,000 workers, a 25% reduction from the end of last year.

Would this deal be unusual?

Although rare, it’s not unprecedented for the U.S. government to become a significant shareholder in a prominent company. One of the most notable instances occurred during the Great Recession in 2008 when the government injected nearly $50 billion into General Motors in return for a roughly 60% stake in the automaker at a time it was on the verge of bankruptcy. The government ended up with a roughly $10 billion loss after it sold its stock in GM.

Would the government run Intel?

U.S. Commerce Secretary Howard Lutnick told CNBC during a Tuesday interview that the government has no intention of meddling in Intel’s business, and will have its hands tied by holding non-voting shares in the company. But some analysts wonder if the Trump administration’s financial ties to Intel might prod more companies looking to curry favor with the president to increase their orders for the company’s chips.

What government grants does Intel receive?

Intel was among the biggest beneficiaries of the Biden administration’s CHIPS and Science Act, but it hasn’t been able to revive its fortunes while falling behind on construction projects spawned by the program.

The company has received about $2.2 billion of the $7.8 billion pledged under the incentives program — money that Lutnick derided as a “giveaway” that would better serve U.S. taxpayers if it’s turned into Intel stock. “We think America should get the benefit of the bargain,” Lutnick told CNBC. “It’s obvious that it’s the right move to make.”

First domino in national redistricting fight likely to fall with Texas GOP poised for vote on maps

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By JIM VERTUNO and NICHOLAS RICCARDI, Associated Press

AUSTIN, Texas (AP) — The first domino in a growing national redistricting battle is likely to fall Wednesday as the Republican-controlled Texas legislature is expected to pass a new congressional map creating five new winnable seats for the GOP.

The vote follows prodding by President Donald Trump, eager to stave off a midterm defeat that would deprive his party of control of the House of Representatives, and weeks of delays after dozens of Texas Democratic state lawmakers fled the state in protest. Some Democrats returned Monday, only to be assigned round-the-clock police escorts to ensure their attendance at Wednesday’s session. Those who refused to be monitored were confined to the House floor, where they protested on a livestream Tuesday night.

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Furious national Democrats have vowed payback for the Texas map, with California’s legislature poised to approve new maps adding more Democratic-friendly seats later this week. The map would still need to be approved by that state’s voters in November.

Normally, states redraw maps once a decade with new census figures. But Trump is lobbying other conservative-controlled states like Indiana and Missouri to also try to squeeze new GOP-friendly seats out of their maps as his party prepares for a difficult midterm election next year.

In Texas, Democrats spent the day before the vote continuing to draw attention to the extraordinary lengths the Republicans who run the legislature were going to ensure it takes place. Democratic state Rep. Nicole Collier started it when she refused to sign what Democrats called the “permission slip” needed to leave the House chamber, a half-page form allowing Department of Public Safety troopers to follow them. She spent Monday night and Tuesday on the House floor, where she set up a livestream while her Democratic colleagues outside had plainclothes officers following them to their offices and homes.

Dallas-area Rep. Linda Garcia said she drove three hours home from Austin with an officer following her. When she went grocery shopping, he went down every aisle with her, pretending to shop, she said. As she spoke to The Associated Press by phone, two unmarked cars with officers inside were parked outside her home.

“It’s a weird feeling,” she said. “The only way to explain the entire process is: It’s like I’m in a movie.”

The trooper assignments, ordered by Republican House Speaker Dustin Burrows, was another escalation of a redistricting battle that has widened across the country. Trump is pushing GOP state officials to tilt the map for the 2026 midterms more in his favor to preserve the GOP’s slim House majority, and Democrats nationally have rallied around efforts to retaliate.

Other Democrats join the protest

House Minority Leader Gene Wu, from Houston, and state Rep. Vince Perez, of El Paso, stayed overnight with Collier, who represents a minority-majority district in Fort Worth.

On Tuesday, more Democrats returned to the Capitol to tear up the slips they had signed and stay on the House floor, which has a lounge and restrooms for members.

Dallas-area Rep. Cassandra Garcia Hernandez called their protest a “slumber party for democracy,” and she said Democrats were holding strategy sessions on the floor.

“We are not criminals,” Houston Rep. Penny Morales Shaw said.

Collier said having officers shadow her was an attack on her dignity and an attempt to control her movements.

Republican leader says Collier ‘is well within her rights’

Burrows brushed off Collier’s protest, saying he was focused on important issues, such as providing property tax relief and responding to last month’s deadly floods. His statement Tuesday morning did not mention redistricting, and his office did not immediately respond to other Democrats joining Collier.

“Rep. Collier’s choice to stay and not sign the permission slip is well within her rights under the House Rules,” Burrows said.

Under those rules, until Wednesday’s scheduled vote, the chamber’s doors are locked, and no member can leave “without the written permission of the speaker.”

To do business Wednesday, 100 of 150 House members must be present.

The GOP wants 5 more seats in Texas

The GOP plan is designed to send five additional Republicans from Texas to the U.S. House. Texas Democrats returned to Austin after Democrats in California launched an effort to redraw their state’s districts to take five seats from Republicans.

Democrats also said they were returning because they expect to challenge the new maps in court.

Republicans issued civil arrest warrants to bring the Democrats back after they left the state Aug. 3, and Republican Gov. Greg Abbott asked the state Supreme Court to oust Wu and several other Democrats from office. The lawmakers also face a fine of $500 for every day they were absent.

How officers shadowed Democratic lawmakers

Democrats reported different levels of monitoring. Houston Rep. Armando Walle said he wasn’t sure where his police escort was, but there was still a heightened police presence in the Capitol, so he felt he was being monitored closely.

Some Democrats said the officers watching them were friendly. But Austin Rep. Sheryl Cole said in a social media post that when she went on her morning walk Tuesday, the officer following her lost her on the trail, got angry and threatened to arrest her.

Garcia said her 9-year-old son was with her as she drove home, and each time she looked in the rearview mirror, she could see the officer close behind. He came inside a grocery store where she shopped with her son.

“I would imagine that this is the way it feels when you’re potentially shoplifting and someone is assessing whether you’re going to steal,” she said.

Riccardi reported from Denver. John Hanna in Topeka, Kansas, and Sara Cline in Baton Rouge, Louisiana, contributed to this report.

New work rules could deny food stamps to thousands of veterans

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By Shalina Chatlani, Stateline.org

NEW YORK — After a year in the U.S. Navy, Loceny Kamara said he was discharged in 2023, because while on base he had developed mental health issues, including severe anxiety and nightmares, and had fallen into alcoholism.

Kamara, 23, went to rehab and managed to get sober for some time while living with family in the Bronx, he said. But after he lost his job as a security guard in December, Kamara was kicked out of his home. Now he lives at a veterans homeless shelter in Long Island City, a neighborhood in Queens, New York, and he relies on the Supplemental Nutrition Assistance Program — commonly known as food stamps — and odd jobs to make ends meet.

Each month, nearly 42 million people receive SNAP benefits to help supplement their grocery budgets. Able-bodied SNAP recipients who are between 18 and 54 and don’t have children have always been required to work. Veterans, however, have been exempt from those rules — but that’s about to change.

The giant domestic policy measure that President Donald Trump signed on July 4 eliminates that exemption. Beginning in 2026, veterans will have to prove they are working, volunteering, participating in job training, or looking for work for at least 80 hours a month to keep their food stamps beyond three months, unless they qualify for another exemption, such as having certain disabilities.

Republicans in Congress and conservatives who helped formulate the law say these eligibility changes are necessary to stop people who could be working from abusing the system. But critics say the change fails to take into account the barriers many veterans face, and that the new work rules will cause thousands of veterans to go hungry.

“I’m pissed. I mean, I cannot get a job. Nowhere to live,” said Kamara. As he spoke, Kamara pointed to his collared shirt, noting that he had just dressed up to interview for a job as a security guard. He learned that morning he hadn’t gotten the job.

“I’ve been out of work for eight months,” Kamara told Stateline. “It’s hard to get a job right now for everybody.”

Veterans depend on SNAP

Nationally, around 1.2 million veterans with lower incomes, or about 8% of the total veteran population of 16.2 million, rely on food stamps for themselves and their families, according to the Center on Budget and Policy Priorities, a left-leaning research group.

An analysis by the group found veterans tend to have lower rates of employment because they are more likely to have health conditions, such as traumatic brain injuries, that make it difficult for them to work. They also tend to have less formal education, though many have specialized skills from their time in the military.

There has been a work requirement for most SNAP recipients since 1996. But Robert Rector, a senior research fellow at The Heritage Foundation, a conservative think tank, said the rules have “never really been enforced.” Rector argued that able-bodied people who have been exempt from the work requirement, such as veterans and homeless people, create an unnecessary burden on the system if they are capable of working but don’t.

“Most of the people that are in this category live in households with other people that have incomes, and so there really isn’t a chronic food shortage here,” Rector said in an interview. “We have tens of thousands of free food banks that people can go to. So it’s just a requirement to nudge these people in the proper direction, and it should no longer go unenforced.”

Darryl Chavis, 62, said that view ignores the difficulties that many veterans face. When Chavis left the U.S. Army at 21 after two years of service, he said, he was “severely depressed.”

“Nobody even came to help me,” said Chavis, who served as a watercraft operator, responsible for operating and maintaining tugboats, barges and other landing craft.

Darryl Chavis, 62, served in the U.S. Army for two years as a watercraft operator. He stands outside the Borden Avenue Veterans Residence, a short-term housing facility in the Long Island City neighborhood of Queens, N.Y., where he lives. Chavis relies on the Supplemental Nutrition Assistance Program and is worried about new work requirements for the program. (Shalina Chatlani/Stateline/TNS)

Chavis said he was diagnosed with post-traumatic stress disorder, which has made it difficult for him to keep a job. He just moved back to New York from Virginia after leaving a relationship. He’s been at the housing shelter in Long Island City since January.

“What I’m trying to do is get settled in to, you know, stabilize into an apartment. I have the credentials to get a job. So it’s not like I’m not gonna look for a job. I have to work. I’m in transition, and the obstacles don’t make it easy,” Chavis said.

The new SNAP work rules apply to all able-bodied adults between 55 and 64 who don’t have dependents, and parents with children above the age of 14. Some groups, such as asylum-seekers and refugees, are no longer eligible for the program.

Barbara Guinn, commissioner of the New York State Office of Temporary and Disability Assistance, estimates that around 300,000 New Yorkers could lose SNAP benefits due to work requirements. Of those, around 22,000 are veterans, homeless or aging out of foster care, she said. Almost 3 million New Yorkers relied on SNAP as of March 2025.

Veterans in other states are in a similar situation. In California, an estimated 115,000 veterans receive SNAP benefits, according to a study by the Center on Budget and Policy Priorities. The number is nearly 100,000 in Florida and Texas, and 49,000 in Georgia.

Between 2015 and 2019 about 11% of veterans between the ages of 18 and 64 lived in food insecure households, meaning they had limited or uncertain access to food, according to the U.S. Department of Agriculture, which oversees SNAP.

“We know that SNAP is the best way to help address hunger. It gets benefits directly to individuals,” Guinn said. “There are other ways that people can get assistance if they need it, through food banks or other charitable organizations, but we do not think that those organizations will have the capacity to pick up the needs.”

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A greater burden on states

In addition to the work rule changes, the new law reduces federal funding for SNAP by about $186 billion through 2034 — a cut of roughly 20%, according to the Congressional Budget Office, an independent research arm of Congress. The federal government expects the new work requirements to reduce SNAP spending by $69 billion as people who don’t comply are dropped from the rolls.

SNAP has historically been funded by the federal government, with states picking up part of the cost of administering the program. Under the new law, states will have to cover between 5% and 15% of SNAP costs starting in fiscal year 2028, depending on how accurately they distribute benefits to people who are eligible for the program.

“This has been a strategic agenda to dismantle SNAP and to blame states for doing so, because they knew they are making it so incredibly burdensome to run and operate and unaffordable,” said Gina Plata-Nino, SNAP deputy director at the Food Research & Action Center, a poverty and hunger advocacy group.

“States are going to have to cut something, because there’s no surplus. There are no unlimited resources that states may have in order to be able to offset the harm.”

Guinn said New York expects to see a new cost burden of at least $1.4 billion each year. In California, new state costs could total as much as $3.7 billion annually, according to the California Department of Social Services.

Kaitlynne Yancy, director of membership programs at Iraq and Afghanistan Veterans of America, said many veterans with disabilities will not be able to fulfill the work requirements or find resources elsewhere. And it’s unclear whether states will be able to provide their own relief to people who are no longer exempted from work requirements or will be excluded from the program.

“It is a frustrating thing to see, especially for those that have been willing to put everything on the line and sacrifice everything for this country if their country called them to do so,” she said.

Yancy, 35, served in the U.S. Navy from 2010 to 2014. She began to use food stamps and the Medicaid program, the public health insurance program for people with lower incomes, as she navigated life’s challenges. They included going back to school to pursue her bachelor’s degree, becoming a single mother, and a leukemia diagnosis for one of her children. Frequent trips to the hospital made it hard for her to work steadily or attend school for 20 hours each week, she said.

Guinn said the new rules will create significant administrative challenges, too; even SNAP recipients who are working will struggle to prove it.

“Maybe they’re working one month, they have a job, and then their employer cuts their hours the next month,” Guinn told Stateline. “There are mechanisms for people to upload documentation as needed to demonstrate compliance with the program, but from an administrative standpoint, right now, we don’t have any super-high-tech automated way of doing this.”

©2025 States Newsroom. Visit at stateline.org. Distributed by Tribune Content Agency, LLC.