A number of stocks jumped in the afternoon session after the second quarter (2025) earnings season got off to a strong start. Quarterly earnings reports released during the week exceeded Wall Street's expectations, fueling investor confidence. Around 50 S&P 500 components reported, with 88% of those exceeding analysts' expectations, FactSet data revealed.
Shares of enterprise technology company Hewlett Packard Enterprise (NYSE:HPE) jumped 3.2% in the morning session after an analyst at JP Morgan reinstated coverage with an "Overweight" rating.
JPMorgan upgrades Cars.com and downgrades Sonic Automotive, Group 1 Automotive, and Asbury Automotive due to industry headwinds and company-specific risks.
JPMorgan Chase & Co's (NYSE: JPM) plan to introduce fees for transactions involving cryptocurrencies and third-party services could significantly cripple the fintech industry, say experts.
Shares of gaming metaverse operator Roblox (NYSE:RBLX)
jumped 5.9% in the afternoon session after an analyst upgrade from JPMorgan, which raised its price target on the stock.
Wells Fargo cut its 2025 net interest income forecast after a Q2 miss on margin, despite posting better-than-expected earnings and revenue for the quarter.
Shares of solar power systems company SolarEdge (NASDAQ:SEDG)
fell 7.8% in the morning session after analysts at JPMorgan downgraded the stock. The investment bank lowered its rating on the solar technology company to "Neutral" from a previous "Overweight" rating. JPMorgan cited the stock's significant outperformance since May as the primary reason for the downgrade, with shares having rallied substantially more than the average for stocks in its coverage universe. While the bank acknowledged encouraging initial progress from SolarEdge's new management team on efficiency and product rationalization, it noted that it is still early in the process. Despite the downgrade, JPMorgan did raise its price target on the stock to $23 from $18, reflecting higher future estimates and an increased valuation multiple.
Trump reportedly discussed the idea on Tuesday night after the House Republicans blocked a procedural vote that would have advanced cryptocurrency legislation.
ETF investors can ride or hedge against banking sector volatility through financial sector funds like XLF and KBE, which hold top banks like JPM and BofA.
The Fed Governor also stated that while easier banking rules help drive risk-taking during economic booms, they also exacerbate weaknesses, and a subsequent downturn makes the situation more painful.
