Wednesday's big stock stories: What’s likely to move the market in the next trading session

Alphabet shares surged following a federal judge's ruling that the company is not required to divest its Chrome browser or Android operating system, marking a significant legal victory and pushing the stock up nearly 20% year-to-date. Looking ahead, investors await key earnings reports from Macy's and Salesforce; Macy's stock has gained 19% in three months but remains down 20% annually, while Salesforce shares are down 24% year-to-date ahead of its report. Separately, the head of Mexico's stock exchange will discuss the impact of tariff threats, with the iShares MSCI Mexico ETF (EWW) nearing its August 22 high.

Analysis

Alphabet (GOOGL) has secured a significant legal victory after a federal judge ruled against the forced divestiture of its Chrome browser and Android operating system, removing a major antitrust overhang. This catalyst propelled the stock higher, contributing to a year-to-date gain of nearly 20% and a surge of over 50% from its April low. The market's focus now shifts to key corporate earnings. Macy's (M) is set to report, with its stock presenting a mixed technical picture: a 19% gain over the last three months contrasts with a 20% annual decline, suggesting a fragile recovery narrative is being tested. Salesforce (CRM) will also report amidst considerable negative momentum, with its shares down 24% year-to-date, making the post-earnings CEO interview a critical event for investors seeking a turnaround strategy. On the macroeconomic front, Mexico's resilience to tariff threats is in focus, with the iShares MSCI Mexico ETF (EWW) showing recent strength, up 5.55% in a month and trading near a recent high, indicating investor optimism ahead of official commentary.

Key Decisions for Investors

• For Alphabet, the favorable court ruling removes a significant tail risk, potentially justifying a re-evaluation of its valuation multiples now that the threat of a forced breakup of key assets has been dismissed.
• Investors should approach the upcoming earnings for Macy's and Salesforce with caution, as Macy's recent rally will be tested against its long-term downtrend, while Salesforce requires a strong catalyst to reverse its significant year-to-date underperformance.
• Monitor commentary from Mexico's stock exchange head on tariff impacts, as the iShares MSCI Mexico ETF's recent strength could be vulnerable to any negative developments despite its current positive momentum.