Tuesday's Final Takeaways: Record Labor Day Gas Prices, HSBC Raises SPX Target

Marley Kayden (0:01)

Welcome back to Market on Close. I'm Marley Kayden here in Chicago. Some final thoughts on the session today. One that stood out to me, HSBC raising its year-end 2026 S&P 500 target up to $8,100 from 76.50. They argue that stronger than expected corporate profits can keep the market moving higher. The S&P 500 is already up about 12% this year, standing around 76.73 right now, meaning that HSBC sees roughly another 5% upside by year-end. The firm expects earnings to grow 33% this year to $360 a share, with AI-related capital spending helping drive semiconductor and other AI-linked stocks, while a resilient economy supports the broader market. That's a similar sentiment to what Jed Ellerbrook just said to us as well. HSBC says that a strong second-quarter earnings season, rising profit estimates and continued AI investment are giving it confidence that earnings momentum can carry into the second half of the year.

And we've been talking consistently about the higher oil prices. Those prices led to a new Labor Day gas record, with the national average reaching $4.15 a gallon. That's the first time it has topped $4 on the holiday, according to AAA. It easily topped the previous Labor Day record set back in 2012, putting added pressure on Americans that hit the road for the holiday weekend. So far, though, higher prices do not appear to be keeping budget-conscious travelers from taking vacations. The national average for a gallon of gas today still holding firm at $4.15.

That is up 30% from a year ago. As we head into tomorrow, we have Apple's Surprise and Shine event, John Ternes' first as CEO. He sent a memo to employees last week, thanking them for the warm welcome and expressing his excitement about the quote-unquote, huge launch next week. Now, we already know that Apple announces its 2026 iPhone lineup at that September event, we'll likely get that, the iPhone 18 tomorrow. That's not the launch. Is he talking about the rumored foldable iPhone Ultra or perhaps he's talking about something entirely different, and Apple will come out with a surprise for all of us, hence the name Surprise and Shine. Either way, we will know at 10 AM Pacific tomorrow. We'll of course be covering that here on Schwab Network, but that is going to do it for us today on Market Unclosed. I want to thank you all for being with us. I'm Marley Kayden. You can download the Schwab Network app for free in the Apple App Store, and you can tune in 24-7 on schwabnetwork.com. I hope you have a great rest of your Tuesday.