AI-powered contentSome parts of this article are powered by AI.
Share this article
Costco beat estimates, but Treasury yields at their highest since 2007 still hang over the market. Here is what to watch tonight.
Wall Street ended mixed Thursday. The Dow fell 0.3% and the S&P 500 closed just below flat, while the Nasdaq edged into positive territory. A Reuters report that US and Iranian negotiators are working on a plan to reopen the Strait of Hormuz helped trim losses late in the session.
The main pressure still came from the bond market. According to CNBC, the 10-year Treasury yield climbed as high as 5.223%, its highest level since June 2007. The 30-year yield touched 5.501%, the highest since June 2004.
After the close, Costco (COST) reported fourth-quarter results above estimates. The question for tonight: can good news from one company offset the pressure from rates?
The 20+ year Treasury ETF, the most rate-sensitive name on the list.
Tonight's Catalysts
Costco beats, with a caveat
Costco (COST) posted fiscal 2026 fourth-quarter net sales of $93.9 billion, up 11.2% from a year ago. Comparable sales rose 9.4% and digital sales grew 19.5%. EPS came in at $6.75, but Costco said $0.15 of that came from non-recurring IEEPA tariff refunds. Without it, EPS was about $6.60, still slightly above the roughly $6.53 consensus. The stock rose only 0.26% after hours, a sign the market had already priced in a strong quarter.
Oracle sends a force majeure notice
Oracle (ORCL) fell more than 3% after sending a force majeure notice tied to Project Jupiter, the $165 billion New Mexico data center. According to CNBC, the move aims to protect Oracle from higher costs if the project does not come online in 2028. Oracle said the project remains on schedule. Developer partner Blue Owl (OWL) fell 3.6%.
The final University of Michigan consumer sentiment reading for September is due at 10:00 a.m. ET. CME FedWatch data cited by Bloomingbit shows markets pricing about a 70% chance of an October Fed rate hike. That is market pricing, not a certainty. A hotter-than-expected reading could push yields higher again and weigh on tech.
Pre-Market Pulse 📊
US index futures are flat in early Friday trading in Asia. The Dow is on track for a fourth straight losing week. Per-stock pre-market moves will be updated closer to the US open.
Macro Note 📝
Oil rose again. According to CNBC, Brent gained 3.41% to settle at $106.60 a barrel and WTI rose 2.66% to $94.61. Without a US-Iran deal, energy supply risk keeps inflation pressure alive.
Conclusion
Tonight, markets weigh solid company results against rates that keep climbing. Costco shows the US consumer is still spending, but yields at their highest in nearly two decades make it harder for valuations to rise.
Use TLT as a guide to rates and watch how ORCL reacts to the Project Jupiter news. Next week, Micron's results and August PCE inflation data on September 30 could be the next movers.
Gotrade is the trading name of Gotrade Securities Inc., which is registered with and supervised by the Labuan Financial Services Authority (LFSA). This content is for educational purposes only and does not constitute financial advice. Always do your own research (DYOR) before investing.
M. Alfathan Rahman is a content writer with over 3 years of experience developing digital content strategies across various industries, including fintech. He has experience producing content for tax-related websites and financial education platforms registered with Kominfo (Indonesia's Ministry of Communication and Informatics). His focus areas include data research, and crafting financial articles that are informative, accurate, and accessible to investors of all experience levels.
