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- 🗞️ Block Enters the S&P 500
🗞️ Block Enters the S&P 500
Earnings preview: VZ, DPZ, NXPI
Market Performance
S&P 500: 6,296.79 (-0.01%)
Nasdaq: 20,895.66 (+0.05%)
Dow Jones: 44,342.19 (-0.32%)
Netflix Warns of Margin Pressure
Here's something that might surprise you 👇
Block (XYZ), formerly known as Square, has been granted the golden ticket to join the S&P 500, replacing Hess after Chevron's $54 billion acquisition was completed. The fintech stock surged over 10% on the news.
This marks the second S&P 500 shake-up in the past week, following The Trade Desk's addition earlier.
What's fascinating is how these changes reflect the market's evolution; we're watching traditional energy companies exit stage left while fintech and ad-tech firms take center stage.
Block's inclusion brings serious tech firepower to an index that's been steadily tilting toward technology.
Founded by Jack Dorsey in 2009, Block has evolved from a simple payment terminal to a blockchain-focused financial services powerhouse encompassing cryptocurrency, lending, and payments.
Our Takeaway
Despite being down 14% this year and missing Q1 expectations, Block's $45 billion market cap earned it a spot in the big leagues.
This S&P 500 addition signals that even struggling tech stocks with solid fundamentals can find redemption when the market recognizes their long-term value.
Market Overview
Friday's session ended on a mixed note as tariff tensions dominated headlines. Trump reportedly pushed for minimum EU tariffs of 15-20%, causing the Dow to drop by over 200 points mid-session before recovering slightly.
A Financial Times report suggested Trump would accept keeping auto sector tariffs at 25%, with the broader 30% EU tariff deadline looming on August 1st.
Consumer sentiment provided a bright spot, with the University of Michigan's July reading hitting 61.8, the highest since February.
Notably, consumer fears about tariff-induced inflation dropped to their lowest levels since February, suggesting Americans are adapting to the new trade reality.
Earnings season continues its strong momentum, with 83% of reporting S&P 500 companies beating estimates so far.
This robust performance, combined with cooling inflation concerns and intact GDP growth projections, supports the current risk-on environment despite geopolitical uncertainties.
Headlines You Can't Miss
Chevron emerges victorious in Guyana oil dispute with Exxon, clearing path for $53 billion Hess acquisition completion.
Netflix warns that operating margins will decline in H2 2025 due to higher content costs, despite beating Q2 earnings expectations.
Sarepta Therapeutics plunges 24% after patient death from acute liver toxicity in Phase 1 study.
Talen Energy surges 23% on $3.5 billion acquisition of Pennsylvania and Ohio gas-fired power plants.
Micron Technology faces 8.5% weekly decline despite Mizuho's buy recommendation on HBM shift.
China ETFs outperform with KWEB up 7% and MCHI gaining 5% for the week.
Ether ETFs see record $602 million in daily inflows, surpassing Bitcoin ETFs for the first time.
Union Pacific reportedly in talks to acquire Norfolk Southern according to Wall Street Journal.
Trending Stocks
American Express (AXP): American Express delivered a solid quarter, reporting earnings of $4.08 per share, which beat estimates of $3.89. Revenue reached $17.86 billion, surpassing the consensus of $17.71 billion.
The payments giant benefited from record Card Member spending and strong demand for premium products, highlighting the resilience of affluent consumers even amid economic uncertainty.
CEO Quote🎤: “We saw record Card Member spending in the quarter, demand for our premium products was strong, and our credit performance remained best in class.”
3M (MMM): 3M posted earnings of $2.16 per share on $6.16 billion revenue, beating expectations of $2.01 per share and $6.11 billion revenue.
The industrial conglomerate raised its full-year earnings forecast to $7.75-$8.00, taking into account expected tariff impacts. Management's proactive guidance adjustment shows they're prepared for the evolving trade landscape.
CEO Quote🎤: “We delivered strong results in the second quarter, posting positive organic sales growth and double-digit EPS growth. This continues our trend from Q1 with all three business groups growing organically for the third quarter in a row.”
Interactive Brokers (IBKR): The broker exceeded expectations with adjusted earnings of $0.51 per share on $1.48 billion revenue, beating estimates of $0.46 per share and $1.36 billion, respectively.
Strong trading volumes and market volatility continue driving revenue growth for the electronic trading platform, positioning it well in the current environment.
CEO Quote🎤: “We saw strong account growth as we added more investors to our platform. This quarter we added 250,000 net new accounts, bringing our year-to-date total to over 528,000 – more than we added in all of 2023”
What’s Next?
Key Earnings Today 👇
Domino’s (DPZ): Q2 revenue forecast at $1.14 billion vs. $1.1 billion last year. Adjusted earnings are expected to narrow from $3.96 per share to $4.03 per share.
Verizon (VZ): Q2 revenue forecast at $33.55 billion vs. $32.80 billion last year. Adjusted earnings are expected to grow from $1.15 per share to $1.20 per share.
NXP Semiconductors (NXPI): Q2 revenue forecast at $2.9 billion vs. $3.13 billion last year. Adjusted earnings are expected to narrow from $3.2 per share to $2.66 per share.
Other Key News
Magnificent Seven earnings kick off next week with Alphabet and Tesla leading the charge.
Second-quarter tech earnings expected to show 14% growth vs 3.4% for other S&P 500 companies.
Norfolk Southern and Union Pacific merger talks could reshape the rail industry.
Track upcoming news and earnings on your portfolio companies with Ziggma.
Chart of the Day
Source: Visual Capitalist
Meme of the Day
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