Market Summary: Stocks React to Earnings Reports
Stocks took a hit, dropping by 2% after Netflix cautioned that its operating profit margin for the latter half of 2025 is expected to decline compared to the first half. This drop is attributed to increased costs in content amortization and sales and marketing. Meanwhile, other streaming companies appeared to perform well. In a notable development, Chevron’s shares rose by 3% while Hess saw a gain of over 7%. This came after Chevron prevailed in a dispute over Hess’ offshore oil assets located in Guyana, paving the way for Chevron to finalize its $53 billion acquisition of Hess.
In biotech news, Sarepta Therapeutics’ inventory took a significant hit, falling 24% after a patient reportedly died from acute hepatotoxicity during a phase 1 study. Union Pacific and Norfolk Southern also made headlines, with their shares rising by 0.4% and around 4%, respectively. This uplift followed a report by the Wall Street Journal indicating that Union Pacific is scrutinizing its agreement with Norfolk Southern.
3M reported adjusted earnings of $2.16 per share, exceeding analyst expectations of $2.01 per share. The company’s revenue reached $6.16 billion, surpassing the anticipated $6.1 billion, which led to an optimistic revision of its annual sales growth guidance from 0.5% to 2.5%.
Shares of American Express gained 1% after its second-quarter results surpassed both top and bottom line expectations. The company posted adjusted earnings of $4.08 per share and revenue of $17.86 billion, outshining estimates by analysts.
Interactive Brokers also had a favorable quarter, seeing shares rise by 5% after it beat expectations for both earnings and revenue. The online brokerage reported an adjusted earnings of 51 cents per share with revenues hitting $1.48 billion, against an expected 46 cents per share and $1.36 billion.
Schlumberger enjoyed a 1% stock increase after reporting better-than-expected results for the second quarter, while shares of Charles Schwab rose by 2% following a strong earnings report. Schwab’s adjusted earnings came in at $1.14 per share with revenue at $5.855 billion, which were above what analysts had forecasted.
In the crypto space, stocks from companies catering to crypto traders saw a boost as ether prices surged. Stablecoin issuer Circle gained 2%, while Robinhood climbed 3% and Galaxy Digital jumped by 9%. Bitmine Immersion, focused on ether, saw a rise of nearly 10%.
Huntington Bank Shares rose slightly, reporting second-quarter earnings of 34 cents per share, along with a net interest income exceeding expectations. In contrast, Western Alliance’s stocks declined by nearly 2% after announcing plans to consolidate its various sectors under one brand. Their net interest for the second quarter was slightly below consensus estimates.
