PayPal inventory is dipping on earnings, whereas Union Pacific and Norfolk Southern reportedly strike an enormous deal. The Each day Breakdown digs in.
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Tuesday’s TLDR
Earnings in focus with PYPL, SOFI
Client confidence report on faucet
UNP and NSC have an $85 billion deal
What’s Occurring?
This morning has featured earnings from a slew of companies, together with UPS, Spotify, Boeing, UnitedHealth, and Procter & Gamble. Tonight, we’ll hear from Starbucks, Visa, Reserving Holdings, and extra.
It’s a busy week in that regard, however the financial calendar additionally has some noteworthy occasions at present — particularly, the JOLTS (Job Openings and Labor Turnover Survey) and the patron confidence studies, each set to be launched at 10 a.m. ET.
We’ll be searching for a powerful JOLTS report back to reassure traders concerning the labor market, and a stable client confidence studying to gauge the well being of on a regular basis People.
Zooming out, markets proceed to carry out effectively. The S&P 500 notched a brand new document excessive on Monday, clearing 6,400 for the primary time. It’s now up about 8.5% on the yr. The Nasdaq 100 additionally hit a document excessive on Monday and is up almost 10% to this point in 2025.
Chip shares like Superior Micro Units, Nvidia, and Broadcom have helped energy the most recent transfer, with the SMH ETF set to open at document highs at present.
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The Setup — PayPal
Shares of PayPal are falling this morning, down barely in pre-market buying and selling after the agency reported earnings. The corporate beat on earnings and income expectations for final quarter and raised its full-year outlook. Administration now expects to earn $5.15 to $5.30 a share this yr, up from a earlier forecast of $4.95 to $5.10 a share. Venmo income rose 20% yr over yr.
PYPL inventory has traded fairly effectively from the April lows, however take into account that it was north of $90 earlier this yr. Buyers are hoping it will get again there sooner or later. After we take a look at the chart, bulls would like to see PayPal discover help above the 200-day transferring common, however in the end, they simply must see the inventory keep above the $73 space.
If it may well try this, its present uptrend will stay intact and the inventory will have the ability to keep above the 50-day transferring common. Nevertheless, if it may well’t try this, extra promoting strain may ensue.
Choices
As of July twenty eighth, the January $100 calls had the best open curiosity — that means the most important open positions within the choices market — adopted by the December $72.50 calls, then the December $87.50 calls.
On a dip, shopping for calls or name spreads could also be one option to reap the benefits of a pullback. For name patrons, it might be advantageous to have ample time till the choice’s expiration.
For those who aren’t feeling so bullish or who’re searching for a deeper pullback, places or put spreads could possibly be one option to take benefit.
To study extra about choices, contemplate visiting the eToro Academy.
What Wall Avenue Is Watching
UNP
Union Pacific and Norfolk Southern are each in focus this morning after it was introduced that UNP will purchase NSC in an enormous $85 billion deal. The cash-and-stock deal would kind a transcontinental railroad large and would grow to be the business’s largest deal ever.
SOFI
Shares of SoFi are in focus this morning as the corporate reported earnings, beating each revenue and gross sales expectations. Administration additionally gave a slight enhance to the corporate’s full-year income and earnings outlook. In consequence, shares are larger by greater than 10% this morning. Dig in deeper to SoFi’s fundamentals.
NVO
Novo Nordisk shares are usually not doing effectively this morning. At one level, the inventory was down virtually 30% in pre-market buying and selling. As gross sales for its key weight-loss drug waver, the agency was compelled to slash its income and earnings outlook. Novo can also be present process a management change. Try NVO’s charts.
Disclaimer:
Please notice that as a consequence of market volatility, a number of the costs could have already been reached and situations performed out.
