Stock Market Update

[BRIEFING.COM] The S&P 500 (+0.8%) continues to chart all-time highs this morning, moving past the 7,800 mark for the first time, while the Nasdaq Composite (+1.0%) and DJIA (+0.4%) also add to their early gains.

While strength is decidedly broad this morning, there are still a few notable post-earnings retreats in the mix.

Cisco (CSCO 115.25, -8.63, -6.97%) is trading lower despite reporting an impressive Q4 (Jul) earnings report last night, including a larger EPS upside than in recent quarters and huge upside guidance for both Q1 (Oct) and FY27. Revenue rose 17.6% year-over-year to $17.25 billion, marking Cisco's strongest yr/yr growth in any quarter in the past five years and topping expectations. The biggest positive was the company's outlook, which called for substantial growth in FY27 as Cisco benefits from what it describes as the early stages of a networking supercycle driven by accelerating agentic AI adoption. Despite the strength of the results and guidance, shares are lower, likely reflecting elevated expectations, questions around the conversion of AI orders into revenue, and pressure on gross margins.

Meanwhile, Tapestry (TPR 129.38, -24.36, -15.84%) is plunging lower despite a strong Q4 as investors focus on an FY27 outlook that largely maintains the company's existing long-term growth algorithm rather than delivering the upside implied by elevated expectations. Management guided FY27 EPS to $7.80-$7.90 with mid-single-digit revenue growth and roughly 50 bps of operating-margin expansion, while Q1 EPS of approximately $1.55 and continued low-teens Coach growth suggest the selloff reflects an expectation reset more than an abrupt deterioration in current demand.