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Longtime Stock Advisor recommendation Costco (NASDAQ:COST) reported 8.2% year-over-year revenue growth in its fourth quarter, after yesterday's closing bell, to reach $86.2 billion. Same-store sales increased 6.4%, ahead of the expected 6.2%. E-commerce comparable sales rose 13.6%.

• Enough bath tissue "to reach the moon and back over 200 times": CEO Gary Millerchip stressed the importance of "everyday value items" in tough economic times, adding that the company sold more than 157 million rotisserie chickens over the 2025 fiscal year.
• 10.4% rise in annual membership fee income: Costco continues to promote customer loyalty, reiterating plans to grow e-commerce and boost membership. But the company offered no specific guidance for the current year. The stock dipped 0.8% overnight.

President Donald Trump is escalating his tariff war to aim at heavy trucks and drugs, with "any branded or patented pharmaceutical product" attracting a 100% import tax starting Oct. 1. The tax won't apply to companies building plants in the U.S., provided construction or groundbreaking has started.

• "All Heavy (Big!) Trucks made in other parts of the World": The president announced via social media a 25% duty on imported trucks, set to commence on the same date.
• "Large scale "FLOODING" of these products into the United States by other outside Countries": He also extended the range of new tariffs to include 50% on kitchen cabinets, bathroom vanities, and associated products, with 30% slapped on upholstered furniture.

The government has a new plan to boost domestic semiconductor manufacturing to match imported chip volumes, The Wall Street Journal reports. It follows talk from the president earlier in the month about hitting chipmakers that don't shift production to the U.S. with tariffs of up to 100%.

• 1:1 domestic-to-imported chips ratio: If manufacturers commit to producing in the U.S., the plan will mean their customers can import an equivalent number of chips. Any shortfall will result in tariffs.
• "America cannot be reliant on foreign imports for the semiconductor products that are essential for our national and economic security": The WSJ quoted White House spokesperson Kush Desai on the matter, though no new policy has been officially announced.

We'll have the August Personal Consumption Expenditures (PCE) index print this morning, with the year-over-year figure expected to rise from 2.6% in the prior month to 2.7%. Analysts have core PCE -- excluding volatile food and energy prices -- remaining at 2.9% year over year.

• The Federal Reserve's favorite inflation measure: It comes as the Fed -- which likes core PCE because it covers a wide range of consumer spending -- is increasingly split between prioritizing inflation or jobs.
• Chance of an October cut down to 87.7%: The CME FedWatch tool has downgraded the probability of a further cut at the next meeting from last week's 91.9%.

Meta (NASDAQ:META) is in talks with Alphabet (NASDAQ:GOOG)(NASDAQ: GOOGL) about the possibility of using Google's Gemini AI to power Facebook advertising, according to a report from The Information.

• "Meta staff have floated the idea of fine-tuning Google's Gemini and open-source Gemma models": The story comes after Meta's reported difficulties in scaling its in-house artificial intelligence (AI) to meet the needs of Facebook, WhatsApp, and Instagram.
• "Instagram has legitimized itself as a major ecosystem for creative, entrepreneurial and social ventures": Fool analyst Sanmeet Deo, CFA, recently commented, "With the adoption of further enhanced features and AI, the sky is the limit for what Instagram could look like in the next decade or more and how much monetization Meta could derive from it."

Based on data as of yesterday, the Buffett Indicator stands at 216.3%, marking the highest level of stock market overvaluation in at least 50 years -- more than double what Warren Buffett considers a reasonable valuation relative to the economy!