Core Viewpoint - The article discusses the recent earnings season, highlighting the performance of individual stocks, particularly those that are showing signs of recovery despite high market expectations and challenges in the broader economy [1][2]. Group 1: Earnings Season Insights - Q2 earnings season has revealed significant surprises, with companies like NVIDIA Corp. missing EPS expectations but still achieving impressive revenue of $44 billion [2]. - AI capital expenditure has contributed more to U.S. GDP growth than personal consumption expenditures this year, indicating a strong market focus on AI investments [3]. - High expectations have led to stock declines even for companies that beat earnings estimates, as seen with Coinbase and Chipotle, where stocks fell 14% and 13% respectively after reporting [4]. Group 2: Stocks with Positive Q2 Reports - The article identifies three companies that are changing their narratives through strong Q2 earnings: SoFi Technologies, Boeing, and PayPal [6]. - SoFi Technologies reported a 34% year-over-year growth in new customers, with revenue increasing by 42% year-over-year, and loan originations up 64% to a record $8.8 billion [9]. - Boeing's Q2 revenue of $22.75 billion represented nearly 35% year-over-year growth, with a backlog exceeding $600 billion, indicating a potential turnaround for the company [12][13]. - PayPal's Q2 earnings showed EPS and revenue beats, driven by a 20% year-over-year revenue growth from Venmo, despite the stock being down 20% this year [14][15].

Group 1: Earnings Reports Overview - Palantir has secured a $10 billion Army contract and is expected to report strong quarterly results, with predictions of a "total blowout" due to strong business performance [2] - Berkshire Hathaway's upcoming earnings report is anticipated to be different under Greg Abel's leadership, with expectations of a potential stock price increase if results are favorable [1] - DuPont's breakup is on track, with expectations that the individual parts will be valued higher than the whole [3] Group 2: Sector Insights - Caterpillar is expected to post strong results, benefiting from domestic infrastructure and reshoring trends [3] - Eli Lilly's performance will be closely watched, especially in light of competitor Novo Nordisk's disappointing quarter, raising questions about market share dynamics in the GLP-1 drug sector [5] - Disney's shares have been climbing, with positive remarks on its streaming, theme park, and cruise line segments [4] Group 3: Other Companies to Watch - McDonald's is viewed as a buy due to recent improvements and new offerings [4] - Warner Bros Discovery is undergoing reorganization and debt reduction, with anticipation around its earnings report [6] - Pinterest is expected to deliver solid results, being recognized as a family-friendly advertising platform [6]

Core Viewpoint - High-growth tech stocks are becoming more expensive, prompting investors to consider the auto sector for potential bargains, particularly Ford and General Motors, which both exceeded Q2 expectations [1][2]. Group 1: Q2 Results - Ford's Q2 sales increased by 5% year over year to $46.94 billion, surpassing estimates of $41.72 billion by 12%. However, tariff costs of $800 million impacted earnings, resulting in Q2 EPS of $0.37, down from $0.47 a year ago but above expectations of $0.34 [3]. - General Motors reported Q2 sales of $47.12 billion, exceeding estimates of $46.24 billion but down 2% year over year. Q2 EPS was $2.53, exceeding expectations of $2.39 by 6%, but down 17% from $3.06 in the prior period, impacted by $1.1 billion in tariffs [4]. Group 2: Guidance - Ford reinstated its full-year guidance, projecting adjusted EBIT of $6.5-$7.5 billion, revised down from $7-$8.5 billion, accounting for an estimated $2 billion net tariff-related impact. Adjusted free cash flow is forecasted at $3.5-$4.5 billion with capital expenditures around $9 billion [5]. - General Motors reaffirmed its full-year guidance, expecting FY25 adjusted EBIT of $8.2-$10.1 billion and raised its annual net income guidance to $11.2-$12.5 billion from a previous range of $10.4-$11.1 billion, considering an estimated $5 billion tariff-related hit [6]. Group 3: Stock Performance - Year to date, Ford's stock is up approximately 11% to around $11 per share, while General Motors shares are virtually flat at around $53. Ford has outperformed the S&P 500's gains of 8% this year [7]. - Over the last five years, General Motors' stock has increased over 100%, outperforming the broader market and the Automotive-Domestic Market's returns of 73%, while Ford's stock has risen 65% [8]. Group 4: EPS Outlook & Valuation - General Motors has a forward earnings multiple of 5.5X, with annual EPS expected to dip 11% in FY25 but projected to stabilize and rise 3% in FY26 to $9.69. Ford's forward earnings multiple is 9.5X, below the industry average of 12X, with FY25 EPS expected to drop 38% to $1.14 [9]. - Ford's annual EPS is forecasted to rebound and rise 13% in FY26 to $1.28 [9]. Group 5: Dividend Comparison - Ford offers a dividend yield of 5.52%, significantly higher than General Motors' 1.15% yield and the S&P 500's average of 1.16%. General Motors also provides a generous dividend compared to most automakers [10]. Group 6: Conclusion - Following Q2 reports, both Ford and General Motors hold a Zacks Rank 3 (Hold). General Motors presents a more appealing investment potential due to its robust bottom line, while income investors may prefer Ford's stock [14].

Core Insights - The earnings season is progressing positively, with major banks setting a strong tone and other companies following suit [1] - Visa and PayPal are significant players reporting next week, with expectations remaining stable [6] Visa - Visa is expected to see an 18% increase in earnings and an 11% rise in sales, reflecting strong investor confidence [2] - Total Payments Volume (TPV) grew 8% year-over-year, indicating healthy consumer spending despite macroeconomic uncertainties [3] - The current forward 12-month earnings multiple for Visa is 28.2X, which is above its five-year median of 26.9X, suggesting shares are relatively expensive [4][13] PayPal - PayPal is projected to achieve 9% EPS growth and a 2.7% increase in sales, with sales growth expected to accelerate [7] - PayPal's TPV reached $417 billion, a 3% increase year-over-year, with a consensus estimate of $434.4 billion for the next period [11] - The current forward 12-month earnings multiple for PayPal is 14.3X, reflecting a 37% discount compared to the S&P 500 [12][14]

_Before trading options, please read the Options Disclosure Document: https://www.theocc.com/Company-Information/Documents-and-Archives/Options-Disclosure-Document._ The major indexes have hit more all-time highs as earnings season gets underway, but there may be signs of exhaustion on the S&P 500 and Nasdaq. With that market backdrop, Tony shares what he believes to be a rare opportunity to capture potential upside in a mega-cap tech stock. - For more about In the Money: https://www.fidelity.com/learning-c ...

those would be the big ones to watch. Megan. Appreciate that.Megan Cassella let's turn back to the markets. S&P is trying for its 14th record close of the year. Joining us here at post nine this morning is Goldman Sachs co-head of public investing Greg Callaghan.Welcome Greg. Good to have you. >> Great to be here.Thanks for having me. >> I've been I mean it's been notable the House view out of Goldman being relatively soft about the back half at least regarding jobs. That would be fair to say.>> Yeah. Look ...

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I'm Yo Finance executive editor Brian Sazi and you're taking a look at a live shot of the opening bells on Wall Street on this Wednesday morning. Consumer insights company NIQ Global ringing the bell at the NYC and Carl getting things popping over at the NASDAQ I believe on its IPO day. Now investors have a lot of different threads to pull on today.Some bearish and some bullish is often the case in investing folks. Let's start with the bullish. President Trump says he has inked a trade deal with Japan.The n ...

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