United States Daily Briefing

Seeking Alpha's analyst downgraded Tesla after Q2 deliveries recovered but gross margins declined to 16.8% with free cash flow burning $1.1B amid heavy AI CapEx. The margin compression matters more than the delivery beat: at 16.8%, Tesla is approaching the floor where fixed-cost leverage turns negative, and the FCF burn signals that the Gigafactory ramp is consuming cash faster than revenue can cover. Watch the $300 level — below that, fund flows from EV-focused ETFs typically accelerate exits.

Celestica (CLS) reported Q2 Non-GAAP EPS of $2.54, beating estimates by $0.23, while revenue of $4.7B exceeded consensus by $310M and grew 62.6% year-over-year — one of the largest beats in the AI infrastructure supply chain this earnings season. Celestica manufactures compute platforms and networking equipment for hyperscalers, making it a direct beneficiary of the BlackRock-Meta $12.5B data center debt deal announced Monday. Management updated annual outlook and flagged continued long-term demand strength, which implies the AI capex cycle has more runway than the NVDA-led selloff might suggest.

Nucor (NUE) delivered Q2 Non-GAAP EPS of $4.84, beating estimates by $0.31, with revenue of $10.4B up 22.9% year-over-year on strong steel pricing. Management guided Q3 earnings higher, an unusual forward statement for a commodity processor and a signal that the domestic steel pricing cycle is extending. Nucor's beat is notable in the context of the Iran ceasefire: reduced geopolitical tension should eventually lower infrastructure project delay risk, which supports Nucor's order book. The 22.9% revenue growth suggests infrastructure bill-driven demand is still flowing through the steel value chain.