RWT News & Events

Stock indexes retreated amid losses for the heavyweight chip sector, making the Nasdaq the laggard, while the Dow pulled back from a record high reached in morning trading. Memory producers sank even though Samsung posted a 19-fold surge in profit last quarter. The surge was in line with the sector's rally this year, but markets appear to be growing increasingly skeptical on whether AI hyperscalers can justify elevated levels of capital expenditure on infrastructure. Yields edged higher after attacks on an LNG tanker in the Middle East tempered hopes of lower energy inflation.Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. v1. STOCK NEWS:Walmartsaid it would cut prices on many summer staplesfrom President Trump saying the retail giant was doing so at his requestChina's DeepSeek is developing its own AI chip in a push to reduce reliance on Nvidiaand Huawei chips,Vertex Pharmaceuticalsto acquire Crinetics Pharmaceuticalsfor $85 per share in cash, for a total equity value of approximately $10BSamsung Electronicsreported, but the AI-fueled earnings still failed to meet high investor expectationsMetadebuted its, saying it will help power image generation in Meta Advantage+ creative "in the coming weeks"2. WALL STREET CALLS:Wall Streetof SpaceX, including Raymond James starting the stock with a Strong Buy rating and $800 price targetScotiabankCloudflareto OutperformBofAAdobeat Underperform with a $190 price target, down from the Buy rating the firm previously heldDeutsche BankFirst Solarto BuyMelius ResearchAmerican Airlinesto Hold3. AROUND THE WEB:Big banks have held talks in recent months to buy a card network owned by Fiserv, Reuters and WSJ reportMicrosoftwill replace OpenAI and Anthropic with its own AI in some apps, Bloomberg saysMetasaid four states are seeking $1.4T in penalties over accusations it designed its social media platforms to addict young users and misled the public on their safety, Reuters reportsAmazonis seeking to raise at least $25B through a U.S. dollar bond sale to fund investments in artificial intelligence infrastructure, Bloomberg reportsPresident Trump is expected to support a potential sale of Lockheed Martin'sF-35 Lightning II jets to Turkey during a visit to Ankara, Reuters says4. MOVERS:Digital Oceangained afterit expects Q2 RPO to exceed $800MRedwood Trustwas higher after highlightingFigmaincreased after BofAcoverage with a Buy ratingRivianwas lower after75M shares of stockUnited States Antimonyfell after announcing the5. EARNINGS/GUIDANCE:Interactive Strengthraised itsCosmos HealthreportedShellissued anAbbVieprovided itsand cut its guidance for FY26Sealsqreportedand backed its guidance for FY26INDEXES:The Dow fell 130.76, or 0.25%, to 52,925.15, the Nasdaq lost 302.47, or 1.16%, to 25,818.69, and the S&P 500 declined 33.58, or 0.45%, to 7,503.85.

During the second quarter, Redwood's core operating businesses continued to execute with strong margins in the face of elevated market volatility. The Company currently estimates a modest 1 to 3% decline in GAAP book value at June 30, 2026 from the end of the first quarter of 2026, inclusive of its Legacy Investments segment, with an economic return on book value for the second quarter currently estimated between (1.0)% and 1.0%, inclusive of its $0.18 per share second quarter dividend. Additionally, the Company maintained its strong liquidity profile, completing a successful corporate unsecured senior notes offering in May, and maintaining $3.5B of excess available asset funding capacity at June 30, 2026.

Christopher Abate, CEO, commented: "Our mortgage banking businesses continued their momentum in the second quarter, with aggregate volumes of over $8B despite continued geopolitical and interest rate volatility, and subdued overall housing market activity. This included another record production quarter from our Aspire non-QM business, which contributed $2.1B of lock volume, up 32% sequentially from the first quarter." Distribution and technology remain central to the platform's growth. Aspire recently completed its second and third securitization issuances under the SPIRE shelf, and has grown its correspondent network to 140 discrete loan sellers. In support of rapid and scalable growth, Aspire has also recently developed and launched proprietary AI-powered engines for non-QM secondary market pricing and guideline comparison and analysis. Abate continued, "These new tools deliver unified loan-level pricing and underwriting functions across bulk and flow channels, and are innovations that will support a dedicated Aspire joint venture. Key terms and documentation for this new joint venture have been fully negotiated with an institutional capital partner, and we expect to begin contributing loans to the JV during the third quarter."

Middleby (MIDD) is spinning off Midera Food Processing (MFP) in a transaction that is expected to close July 7. Redwood Trust (RWT) is no longer representative of the small cap market space.