Market Rally Continues as Earnings Season Heats Up and Economic Data Looms
A surge of corporate earnings reports and key economic indicators are dominating market attention, even as major indices maintain impressive gains. Investors are closely watching results from companies like UPS, Spotify, Boeing, and PayPal, while anticipating data releases on the labor market and consumer confidence.
Earnings Season in Full Swing
This morning has seen a flurry of earnings releases from a diverse range of companies. Among them are logistics giant UPS, music streaming service Spotify (NYSE:), aerospace leader Boeing (NYSE:), healthcare provider UnitedHealth (NYSE:), and consumer goods conglomerate Procter & Gamble (NYSE:). The focus will shift tonight to Starbucks (NASDAQ:), payment processor Visa (NYSE:), and travel booking platform Booking Holdings (NASDAQ:), among others.
“It’s a busy week in that regard,” noted one market observer, highlighting the intensity of the earnings calendar.
Economic Data on the Horizon
Adding to the market’s focus, the Jobs Openings and Labor Turnover Survey (JOLTS) report and consumer confidence figures are scheduled for release at 10 a.m. ET today. Analysts are particularly keen on a strong JOLTS report, which would signal continued strength in the labor market. A positive consumer confidence reading will be crucial in gauging the financial health of American households.
Market Momentum Persists
Despite ongoing geopolitical and economic uncertainties, markets have demonstrated remarkable resilience. The S&P 500 reached a new record high on Monday, surpassing 6,400 for the first time and currently boasting an 8.5% year-to-date increase. The Nasdaq also hit a record high on Monday, climbing nearly 10% so far in 2025.
The rally has been fueled, in part, by strong performance in the technology sector. Chip stocks, including Advanced Micro Devices (NASDAQ:), Nvidia (NASDAQ:), and Broadcom (NASDAQ:), have been leading the charge, with the SMH ETF poised to open at record levels today. “
PayPal Shares Dip Despite Earnings Beat
Shares of PayPal (NASDAQ:) are experiencing a slight decline in pre-market trading despite a stronger-than-expected earnings report. The company exceeded both earnings and revenue expectations for the last quarter and raised its full-year outlook, now projecting earnings of $5.15 to $5.30 per share, up from a previous forecast of $4.95 to $5.10 per share. Venmo revenue also saw a 20% year-over-year increase.
Despite the positive results, investors are mindful that PYPL stock previously traded above $90 earlier in the year. According to technical analysis, bulls are hoping to see PayPal establish support above the 200-day moving average, but maintaining a price above $73 is considered critical to preserving the current uptrend. Failure to do so could trigger further selling pressure.
Options Activity Signals Investor Sentiment
As of July 28th, the January $100 call options held the highest open interest, indicating significant bullish positioning. The December $72.50 and $87.50 calls also saw substantial activity. One analyst suggested that buying calls or call spreads could be a strategy to capitalize on potential pullbacks, while put options or put spreads might be suitable for those anticipating a deeper decline.
Wall Street’s Focus: Mergers, Earnings Surprises, and Setbacks
Several other companies are drawing attention from investors:
- Union Pacific & Norfolk Southern: A massive $85 billion deal has been announced, with Union Pacific (NYSE:) acquiring Norfolk Southern (NYSE:). This cash-and-stock transaction would create a transcontinental railroad giant and represent the largest deal in the industry’s history.
- SoFi: Shares of SoFi (NASDAQ:) are up more than 10% this morning after the company reported earnings that beat both profit and sales expectations. Management also raised its full-year revenue and earnings outlook.
- Novo Nordisk: Novo Nordisk (NYSE:) shares are facing significant pressure, falling almost 30% in pre-market trading. The company was forced to slash its revenue and earnings outlook due to wavering sales of its key weight-loss drug and is also undergoing a leadership change.
Disclaimer: Please note that due to market volatility, some of the prices may have already been reached and scenarios played out. Content, research, tools, and stock symbols displayed are for educational purposes only and do not imply a recommendation or solicitation to engage in any specific investment strategy. All investments involve risk, losses may exceed the amount of principal invested, and past performance does not guarantee future results.
