Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally. The company operates through two segments, Airline and Refinery. Its domestic network centered on core hubs in Atlanta, Minneapolis-St. Paul, Detroit, and Salt Lake City, as well as coastal hub positions in Boston, Los Angeles, New York-LaGuardia, New York-JFK, and Seattle; and international network centered on hubs and market presence in Amsterdam, Bogota, Lima, Mexico City, London-Heathrow, Paris-Charles de Gaulle, Sao Paulo, Seoul-Incheon, and Tokyo. The company sells its tickets through various distribution channels, including delta.com and the Fly Delta app; acts as a reservations specialists; and operates online travel and traditional brick and mortar agencies. It also provides aircraft maintenance and engineering support, repair, and overhaul services; and vacation packages to third-party consumers. The company operates through a fleet of approximately 1,273 aircrafts. Delta Air Lines, Inc. was founded in 1924 and is based in Atlanta, Georgia.

Delta Air Lines, Inc.

American Airlines AAL stock was down as much as 10% in Thursday morning's trading session despite pleasantly exceeding Q2 top and bottom-line expectations.
This comes as the largest domestic airline carrier gave a cautious outlook, reinstating but narrowing its full-year EPS guidance amid ongoing uncertainty in travel demand.
That said, American Airlines stated it has moved past the brunt of the economic impact, which begs the question of whether AAL shares are too cheap to ignore after dropping more than 30% this year to around $11.
Image Source: Zacks Investment Research
American Airlines Q2 Review
Reporting Q2 sales of $14.39 billion, American Airlines’ top line slightly expanded from $14.33 billion in the comparative period and edged estimates of $14.28 billion. Thanks to disciplined cost control, which was aided by lower fuel costs, American Airlines' Q2 earnings of $0.95 per share comfortably surpassed expectations of $0.79 by 20%, although this was down from EPS of $1.09 a year ago.
Although weaker cross-border travel demand has been a concern that could weaken the outlook for most airlines in correlation with higher tariffs, American Airlines received a boost from strong international and premium cabin demand, especially in the Atlantic markets, where passenger unit revenue rose 5% year over year.
Joining Delta DAL and United UAL Airlines, which reported Q2 results earlier in the month, American Airlines also received a margin boost from loyalty program growth, seeing a 7% jump in Active AAdvantage accounts and a 6% increase in spending on co-branded credit cards.
Furthermore, American Airlines CEO Robert Isom stated the company is well-positioned to navigate volatility due to its loyalty initiatives, modernized fleet, and strengthened balance sheet.
Image Source: Zacks Investment Research
Reinstated but Lowered EPS Guidance
Notably, American Airlines reinstated but lowered its full-year earnings guidance, expecting adjusted fiscal 2025 EPS to range from a loss of $0.20 to a profit of $0.80, with a midpoint of $0.30. This is significantly lower than previous forecast of $1.70 to $2.70 per share, although the top of the guidance fell in range of the current Zacks Consensus of $0.73.
It’s noteworthy that during Q3, American Airlines anticipates an adjusted loss of $0.10-$0.60 per share, citing weak domestic demand in July.
AAL Valuation Comparison
At current levels, American Airlines stock trades at 17.4X forward earnings. While this comes off as a discount to the benchmark S&P 500’s 24.5X, AAL trades above its Zacks Transportation-Airline Industry average of 14.5X, with Delta and United Airlines trading at just 10X and 9X forward earnings, respectively.
In terms of price-to-sales, American Airlines does significantly stand out, with investors paying just $0.15 for every dollar the company makes. In comparison, Delta, United, and the industry average are at $0.50 or more, with the S&P 500 having a forward P/S ratio of 5.4X.
Image Source: Zacks Investment Research
Conclusion & Final Thoughts
As the largest airline in the world in terms of passengers carried and daily flights, it's very tempting to add long-term positions in American Airlines stock at under $15 a share. However, there could still be better buying opportunities ahead, given American Airlines' cautious outlook in regard to reinstating but lowering its EPS guidance.
For now, AAL lands a Zacks Rank #3 (Hold), and patience is certainly needed for those who invest in American Airlines stock.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is American Airlines Stock Too Cheap to Ignore After Beating Q2 Expectations?

Westinghouse Air Brake Technologies Corporation (WAB) reported second-quarter 2025 earnings per share (EPS) of $2.27, which beat the Zacks Consensus Estimate of $2.18. The bottom line improved 15.8% year over year due to higher sales, operating margin expansion and benefits from share repurchases.
Revenues of $2.71 billion missed the Zacks Consensus Estimate of $2.77 billion. The top line grew 2.3% year over year due to higher sales in the Transit segment, partially offset by lower Equipment sales.
Apart from reporting year-over-year growth on both earnings and revenues, Wabtec also issued a bullish 2025 guidance. Wabtec increased its 2025 adjusted EPS guidance range to $8.55 to $9.15 from the prior guided range of $8.35 to $8.95. The encouraging EPS guidance was driven by first-half performance, mergers & acquisitions, and focus on prudent cost management. The Zacks Consensus Estimate of $8.76 lies within the updated guidance.
For revenues, WAB raised its 2025 guidance to a range of $10.925 billion to $11.225 billion from the prior guided range of $10.725 billion to $11.025 billion, largely reflecting the acquisition of Evident Inspection Technologies Division, which was completed on July 1, 2025. The Zacks Consensus Estimate of $11.00 billion lies within the updated guidance.
Rafael Santana, Wabtec’s president and chief executive officer, stated, “The Wabtec team has delivered another strong quarter, highlighted by margin expansion and double digit earnings per share growth. With the first half of the year complete, we remain focused on executing our priorities for the second half. Demand across our end markets and our pipeline of opportunities continues to be strong, with significant activity underway in key businesses.”
Wabtec Price, Consensus and EPS Surprise
WAB’s Segmental Highlights
Freight segment’s net sales of $1.91 billion fell marginally by 0.1% year over year. Freight revenue was adversely impacted by lower locomotive deliveries than expected due to a supplied part issue. Services sales were up 6% due to higher parts sales and modernization deliveries, which were largely offset by the impact of lower locomotive deliveries in the quarter due to a supplied part issue and lower mining sales. These deliveries are expected to shift to the second half of 2025.
Freight segment’s adjusted operating margin improved 0.9 points year over year to 25%. Adjusted operating margin benefited from improved gross margin.
In the Transit segment, net sales grew 8.7% year over year to $787 million, due to strong aftermarket and original equipment sales. The segmental adjusted operating margin increased to 15.2% from 12.7% in the second quarter of 2024, aided by higher sales and better gross margins.
Other Q2 Details of WAB
Total operating expenses in the reported quarter increased $22 million from a year ago to $466 million. Operating ratio (operating expenses as a % of net sales) rose to 17.2% from 16.8% a year ago.
Wabtec exited the second quarter with cash, cash equivalents and restricted cash of $1.49 billion compared with $698 million at the prior-quarter end. Long-term debt was $4.78 billion compared with $3.50 billion at the prior-quarter end.
During the reported quarter, WAB paid $44 million in dividends and repurchased shares worth $50 million.
Other Aspects of WAB's 2025 Guidance
For 2025, Wabtec continues to expect operating cash flow conversion to exceed 90%.
WAB's Zacks Rank
Currently, Wabtec carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q2 Performances of Other Transportation Companies
Delta Air Lines (DAL) reported second-quarter 2025 earnings (excluding $1.17 per share from non-recurring items) of $2.10 per share, which beat the Zacks Consensus Estimate of $2.04. Earnings decreased 11% on a year-over-year basis due to high labor costs.
Revenues in the June-end quarter were $16.65 billion, beating the Zacks Consensus Estimate of $16.2 billion and decreasing marginally on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) increased 1% year over year to $15.5 billion.
J.B. Hunt Transport Services, Inc. (JBHT) reported second-quarter 2025 earnings of $1.31 per share, which missed the Zacks Consensus Estimate of $1.34 and declined 0.8% year over year.
Total operating revenues of $2.93 billion missed the Zacks Consensus Estimate of $2.94 billion and were flat year over year. JBHT’s second-quarter revenue performance witnessed a 6% increase in Intermodal (JBI) loads, a 13% increase in Truckload (JBT) loads, a 3% increase in Dedicated Contract Services (DCS) productivity and a 6% increase in Integrated Capacity Solutions (ICS) revenue per load. These items were offset by Final Mile Services revenue declining 10%, lower revenue per load in both JBI and JBT, a 9% decrease in ICS load volume and a 3% decline in average trucks in DCS. Total operating revenues, excluding fuel surcharge revenue, increased 1% on a year-over-year basis.
United Airlines Holdings, Inc. (UAL) reported mixed second-quarter 2025 results wherein the company’s earnings beat the Zacks Consensus Estimate, but revenues missed the same.
UAL's second-quarter 2025 adjusted earnings per share (EPS) (excluding 90 cents from non-recurring items) of $3.87 surpassed the Zacks Consensus Estimate by a penny but declined 6.5% on a year-over-year basis. The reported figure lies within the guided range of $3.25-$4.25.
Operating revenues of $15.2 billion fell short of the Zacks Consensus Estimate of $15.4 billion but increased 1.7% year over year. Passenger revenues (which accounted for 90.8% of the top line) increased 1.1% year over year to $13.8 billion. UAL flights transported 46,186 passengers in the second quarter, up 4.1% year over year.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Wabtec Q2 Earnings Beat Estimates, Revenues Lag, 2025 View Up

Southwest Airlines Co. (LUV) reported disappointing second-quarter 2025 results, wherein both earnings and revenues lagged the Zacks Consensus Estimate.
Quarterly earnings of 43 cents per share missed the Zacks Consensus Estimate of 51 cents and declined 25.9% year over year. Revenues of $7.24 billion missed the Zacks Consensus Estimate of $7.29 billion and declined 1.5% year over year. Passenger revenues (which accounted for 91.5% of the top line) decreased 1.3% year over year to $6.62 billion.
Domestic leisure travel stabilized during second-quarter 2025, with recent trends showing signs of improvement.
Southwest Airlines Co. Price, Consensus and EPS Surprise
Operating Statistics
Airline traffic, measured in revenue passenger miles, fell 3.5% year over year to 36.88 billion in the quarter under review. Capacity or available seat miles (ASMs) grew 1.6% year over year to 46.99 billion.As traffic failed to outpace capacity expansion, load factor (percentage of seat occupancy) fell 4.1 percentage points to 78.5%. Our estimate stands at 79.2%.
Passenger revenue per available seat mile (PRASM: a key measure of unit revenues) fell 2.8% year over year to 14.10 cents.
Revenue per available seat mile (RASM) fell 3.1% year over year to 15.41 cents.
Operating Expenses & Income
In the second quarter, Southwest Airlines incurred an operating income of $225 million compared with $398 million in the year-ago reported quarter. On an adjusted basis (excluding special items), the company reported operating income of $245 million compared with $405 million in the year-ago quarter.
Total adjusted operating expenses (excluding profit sharing, special items, fuel and oil expenses) increased 6.4% year over year.
Fuel cost per gallon (inclusive of fuel tax: economic) fell 15.9% year over year to $2.32.
Consolidated unit cost or cost per available seat mile (CASM) excluding fuel, oil and profit-sharing expenses, and special items grew 4.7% year over year.
Liquidity
Southwest Airlines ended the second quarter with cash and cash equivalents of $3.47 billion compared with $8.13 billion at the end of the prior quarter. As of June 30, 2025, the company had long-term debt (less current maturities) of $4.08 billion, which was flat sequentially.
LUV generated $401 million of cash from operating activities in the reported quarter. Second-quarter 2025 capital expenditures were $635 million, owing to aircraft-related capital spending, coupled with technology, facilities, and operational investments.
During the second quarter of 2025, LUV returned $1.6 billion to shareholders, which includes $103 million of dividend payments and $1.5 billion of share repurchases.
By repurchasing the remaining $1.5 billion through an accelerated share repurchase (ASR) program, LUV has completed the September 2024 $2.5 billion share repurchase authorization in the second quarter of 2025. Final settlement of shares purchased through the second quarter of 2025 ASR program is anticipated to occur by the end of July 2025.
LUV’s board of directors recently approved a $2.0 billion share repurchase authorization expected to be completed over a period of up to two years.
LUV anticipates its third-quarter 2025 unit revenues to be in the range of down 2% to up 2% on roughly flat capacity, both on a year-over-year basis. This guidance range assumes a modest sequential improvement in demand. Company-specific initiatives provide a unique offset to the broader industry revenue impact, and will continue to accelerate throughout the third quarter of 2025.
Economic fuel costs per gallonare expected to be in the range of $2.40 to $2.50. Interest expenses are expected to be $35 million in the third quarter.
LUV continues to expect to achieve its $370 million cost reduction target this year. LUV anticipates third-quarter 2025 CASM, excluding fuel, oil and profit-sharing expenses, and special items, to increase in the range of 3.5-5.5%, on a year-over-year basis. This increase is due to the continuation of inflationary pressures, including those associated with labor contracts ratified in 2024, as well as approximately one point from the timing of engine overhaul expenses and one-half point from aircraft retrofit costs in advance of extra legroom seating launching in January 2026. Excluding the impact of book gains from fleet transactions in the fourth quarter of both years, LUV continues to expect fourth-quarter 2025 CASM-X to be up low single digits year over year. LUV remains focused on driving efficiencies to offset overall inflationary cost pressures and achieve its multi-year cost reduction targets.
LUV continues to anticipate its 2025 capital spending to be in the range of $2.5 billion-$3.0 billion (including the additional aircraft deliveries now expected, as well as the impact of the expected sale of five-800 aircraft this year).
LUV’s 2025 EBIT guidance assumes further sequential improvement from third-quarter 2025, driven by accelerating incremental revenue from company-specific initiatives, the recovery of the temporary basic economy optimization impact, and anticipated improvement in domestic leisure travel trends.
LUV is reaffirming its full-year incremental EBIT contribution targets of $1.8 billion for 2025 and $4.3 billion for 2026 from those initiatives.
Currently, LUV carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q2 Performances of Other Transportation Companies
Delta Air Lines (DAL) reported second-quarter 2025 earnings (excluding $1.17 per share from non-recurring items) of $2.10 per share, which beat the Zacks Consensus Estimate of $2.04. Earnings decreased 11% on a year-over-year basis due to high labor costs.
Revenues in the June-end quarter were $16.65 billion, beating the Zacks Consensus Estimate of $16.2 billion and decreasing marginally on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) increased 1% year over year to $15.5 billion.
J.B. Hunt Transport Services, Inc. (JBHT) reported second-quarter 2025 earnings of $1.31 per share, which missed the Zacks Consensus Estimate of $1.34 and declined 0.8% year over year.
Total operating revenues of $2.93 billion missed the Zacks Consensus Estimate of $2.94 billion and were flat year over year. JBHT’s second-quarter revenue performance witnessed a 6% increase in Intermodal (JBI) loads, a 13% increase in Truckload (JBT) loads, a 3% increase in Dedicated Contract Services (DCS) productivity and a 6% increase in Integrated Capacity Solutions (ICS) revenue per load. These items were offset by Final Mile Services revenue declining 10%, lower revenue per load in both JBI and JBT, a 9% decrease in ICS load volume and a 3% decline in average trucks in DCS. Total operating revenues, excluding fuel surcharge revenue, increased 1% on a year-over-year basis.
United Airlines Holdings, Inc. (UAL) reported mixed second-quarter 2025 results wherein the company’s earnings beat the Zacks Consensus Estimate, but revenues missed the same.
UAL's second-quarter 2025 adjusted earnings per share (excluding 90 cents from non-recurring items) of $3.87 surpassed the Zacks Consensus Estimate by a penny but declined 6.5% on a year-over-year basis. The reported figure lies within the guided range of $3.25-$4.25.
Operating revenues of $15.2 billion fell short of the Zacks Consensus Estimate of $15.4 billion but increased 1.7% year over year. Passenger revenues (which accounted for 90.8% of the top line) increased 1.1% year over year to $13.8 billion. UAL flights transported 46,186 passengers in the second quarter, up 4.1% year over year.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Southwest Airlines Q2 Earnings & Revenues Lag, Decrease Year Over Year

Peter Carter, Delta Air Lines' (NYSE:DAL) executive VP of external affairs, executed a sale of 17,550 shares on July 16, 2025, for a total consideration of approximately $1.0 million in an open market transaction.
Transaction summary
Shares traded
17,550
Transaction value
$1.0 million (SEC Form 4, filed July 16, 2025)
Post-transaction shares
191,442
Post-transaction value
$10.8 million (as of July 16, 2025)
Key questions
How does the transaction size compare to the insider's historical trading?
The sale of 17,550 shares closely aligns with Carter's recent median trade size of approximately 17,747 shares, based on historical data, indicating no significant deviation from past activity.
What is the current market value of the insider's remaining holdings?
Following the transaction, the insider retains 191,442 shares, with an approximate market value of $10.8 million as of July 16, 2025.
What is the significance of the transaction relative to total insider ownership?
This transaction reduces the insider's holdings but leaves an estimated 0.03% ownership.
How does the transaction timing relate to share price performance?
The sale occurred with shares priced at $57.19, close to the current price of $56.29, following a 25.3% one-year total return, suggesting execution during a period of relative strength.
Company overview
Market capitalization
$36.75 billion
Revenue (TTM)
$61.64 billion
Net income (TTM)
$3.46 billion
Dividend yield
0.82%
Company snapshot
Delta Air Lines generates revenue primarily through scheduled air passenger services, cargo transport, and ancillary offerings such as aircraft maintenance, engineering, and vacation packages.
The company operates a network-based business model centered on domestic and international hubs, leveraging a large fleet and diversified distribution channels, including digital platforms and travel agencies.
Primary customers are individual travelers and cargo shippers, and the company maintains a strong presence in both U.S. and international markets.
Delta Air Lines, Inc. is one of the world's largest airlines, operating a fleet of approximately 1,200 aircraft and serving major domestic and international hubs. The company combines a scale-driven network with diversified revenue streams, including passenger and cargo services as well as ancillary offerings. Delta's competitive advantage stems from its extensive route network and large fleet.
Foolish take
Peter Carter serves as Delta's chief external affairs officer and also its chief legal officer. He appears to have taken advantage of the company's recently strong stock performance to sell just over $1 million worth of stock.
While it's never good news to see an insider selling stock, every individual has their own financial circumstances that they need to attend to. Moreover, this sale comes a week after Delta reported a solid second quarter, which saw the airline resume providing full-year guidance, albeit at a lower level than it had forecast at the start of the year.
Delta declined to offer full-year guidance when it reported first-quarter earnings in April after the imposition of tariffs on U.S. trade partners damaged consumer confidence and hit bookings. However, the travel environment has stabilized since then. "The environment has been stable since resetting to a lower growth rate earlier this year," CEO Ed Bastian recently noted.
Delta and other airlines have made capacity adjustments in line with a weaker market, which Bastian expects will result in flat earnings year over year in the third quarter, accompanied by low-single-digit percentage revenue growth.
The full-year guidance for free cash flow in the $3 billion to $4 billion range makes the stock look cheap (based on the company's current market cap of $36.75 billion) and makes this insider selling seem somewhat surprising.
Glossary
Insider: An executive, director, or major shareholder with access to non-public company information.
Open market transaction: The purchase or sale of securities on a public exchange, not through private agreements.
SEC Form 4: A regulatory filing disclosing insider trades of company stock.
Post-transaction: The state of holdings or values after a specific trade or transaction has occurred.
Ownership percentage: The proportion of a company’s total shares held by an individual or entity.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
Median trade size: The middle value of all trade sizes in a data set, used to show typical transaction volume.
Ancillary offerings: Additional services or products offered alongside a company’s main business, such as maintenance or vacation packages.
Network-based business model: A strategy relying on interconnected hubs and routes to maximize efficiency and coverage.
Distribution channels: The various methods a company uses to deliver products or services to customers.
TTM: The 12-month period ending with the most recent quarterly report.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 1,037%* — a market-crushing outperformance compared to 182% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.
*Stock Advisor returns as of July 21, 2025
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Delta C-Suite Exec Sells 17,550 DAL Shares

Union Pacific Corporation’s UNP second-quarter 2025 earnings (excluding 12 cents from non-recurring items) of $3.03 per share beat the Zacks Consensus Estimate of $2.91. The bottom line improved 10.6% on a year-over-year basis. This year-over-year improvement was due to strong operational efficiency.
Operating revenues of $6.2 billion marginally beat the Zacks Consensus Estimate of $6.1 billion. The top line improved 2.5% on a year-over-year basis, owing to higher volumes and solid core pricing gains.
Union Pacific Corporation Price, Consensus and EPS Surprise
Freight revenues, accounting for 95% of the top line, improved 4% to $5.8 billion. The actual figure surpassed our estimate of $5.67 billion. Other revenues decreased 16% to $311 million in the second quarter of 2025. Business volumes, measured by total revenue carloads, increased 4% year over year. The operating income was up 5% year over year at $2.5 billion.
Total operating expenses of $3.6 billion inched up 1% year over year. Fuel expenses decreased 8%. Expenses on purchased services and materials were flat, expenses on compensation and benefits increased 5% and other cost items declined 5% year over year.
The operating ratio (operating expenses as a percentage of revenues) in the second quarter of 2025, on an adjusted basis, improved 230 basis points year over year to 58.1%.
UNP’s Segmental Highlights
Bulk (Grain & grain products, Fertilizer, Food & refrigerated, Coal & renewables) freight revenues were $1.9 billion, which increased 10% on a year-over-year basis. We projected the metric to increase 3.1% from the year-ago levels. Segmental revenue carloads increased 11% year over year.
Industrial freight revenues totaled $2.2 billion, up 4% year over year. We projected the metric to increase 3% from the year-ago levels. Segmental revenue carloads increased 3% to $569 million year over year.
Freight revenues in the Premium division were $1.73 billion, down 4% year over year. We expected the metric to decrease 4.9% compared with the year-ago reported figure. Premium revenue carloads improved 1% year over year.
UNP’s Liquidity
Union Pacific exited the second quarter of 2025 with cash and cash equivalents of $1.06 billion compared with $1 billion at 2024 end. Debt (due after a year) increased to $30.3 billion in the June-end quarter from $29.6 billion at 2024’s end.
Currently, Union Pacific carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UNP-NSC Merger Update
Union Pacific confirmed that it is engaged in advanced discussions with fellow railroad operator Norfolk Southern NSC regarding a potential business combination. No further details were given.
Earlier this year, Union Pacific, chief executive officer, Jim Vena, hinted at the possible profits that are likely to result from such a merger. This includes the enhancement of transfer-based bottlenecks in places like Chicago, where West Coast and East Coast operators often offload cargo to be transferred to another operator’s network.
Q2 Performance of Other Transportation Companies
Delta Air Lines DAL reported second-quarter 2025 earnings (excluding $1.17 from non-recurring items) of $2.10 per share, which beat the Zacks Consensus Estimate of $2.04. Earnings decreased 11% on a year-over-year basis due to high labor costs.
Revenues in the June-end quarter were $16.65 billion, which beat the Zacks Consensus Estimate of $16.2 billion and decreased marginally on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) increased 1% year over year to $15.5 billion.
United Airlines’ UAL second-quarter 2025 adjusted EPS (excluding 90 cents from non-recurring items) of $3.87 beat the Zacks Consensus Estimate by a penny but declined 6.5% on a year-over-year basis. The reported figure lies within the guided range of $3.25-$4.25 per share.
Operating revenues of $15.2 billion missed the Zacks Consensus Estimate of $15.4 billion but increased 1.7% year over year. Passenger revenues (which accounted for 90.8% of the top line) increased 1.1% year over year to $13.8 billion. UAL flights transported 46,186 passengers in the second quarter, up 4.1% year over year.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Union Pacific Q2 Earnings & Revenues Surpass Estimates, Rise Y/Y

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Amgen Inc (Symbol: AMGN), where a total volume of 13,129 contracts has been traded thus far today, a contract volume which is representative of approximately 1.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 54.6% of AMGN's average daily trading volume over the past month, of 2.4 million shares. Especially high volume was seen for the $250 strike put option expiring December 19, 2025, with 5,043 contracts trading so far today, representing approximately 504,300 underlying shares of AMGN. Below is a chart showing AMGN's trailing twelve month trading history, with the $250 strike highlighted in orange:
Delta Air Lines Inc (Symbol: DAL) options are showing a volume of 70,329 contracts thus far today. That number of contracts represents approximately 7.0 million underlying shares, working out to a sizeable 54.4% of DAL's average daily trading volume over the past month, of 12.9 million shares. Particularly high volume was seen for the $56 strike put option expiring July 25, 2025, with 11,984 contracts trading so far today, representing approximately 1.2 million underlying shares of DAL. Below is a chart showing DAL's trailing twelve month trading history, with the $56 strike highlighted in orange:
And FactSet Research Systems Inc. (Symbol: FDS) saw options trading volume of 1,718 contracts, representing approximately 171,800 underlying shares or approximately 51% of FDS's average daily trading volume over the past month, of 336,595 shares. Especially high volume was seen for the $400 strike call option expiring March 20, 2026, with 849 contracts trading so far today, representing approximately 84,900 underlying shares of FDS. Below is a chart showing FDS's trailing twelve month trading history, with the $400 strike highlighted in orange:
For the various different available expirations for AMGN options, DAL options, or FDS options, visit StockOptionsChannel.com.
Cheap Industrials Stocks
VOC Options Chain
Institutional Holders of NX
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Tuesday Option Activity: AMGN, DAL, FDS

On July 10, Delta Air Lines DAL reported better-than-expected revenues and earnings per share for the second quarter of 2025, driven by higher-than-expected passenger revenues. DAL reinstated its 2025 earnings per share guidance of $5.25-$6.25. It expects free cash flow of $3-$4 billion for the year.
United Airlines UAL reported mixed second-quarter 2025 results wherein the company’s earnings beat the Zacks Consensus Estimate but revenues missed the same. Latin American carrier LATAM Airlines LTM reported a year-over-year increase in revenue passenger-kilometers (RPK: a measure of air traffic) for June. Another Latin American carrier, Copa Holdings CPA reported a 6.3% increase in revenue passenger miles for June, driven by high passenger volumes. Southwest Airlines LUV also grabbed headlines courtesy of an expansion update.
Recap of the Most Recent Important Stories
1. Delta reported second-quarter 2025 earnings (excluding $1.17 per share from non-recurring items) of $2.10 per share, which beat the Zacks Consensus Estimate of $2.04. Earnings decreased 11% on a year-over-year basis due to high labor costs.
Revenues in the June-end quarter were $16.65 billion, beating the Zacks Consensus Estimate of $16.2 billion and decreasing marginally on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) increased 1% year over year to $15.5 billion.
Delta, currently carrying a Zack Rank #3 (Hold), expects third-quarter 2025 adjusted earnings per share in the $1.25-$1.75 band. The adjusted operating margin is expected in the 9-11% band. With air-travel demand stabilizing, revenues on an adjusted basis are expected to either remain flat or increase up to 4% from the third quarter of 2024 level.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Delta was also in the news recently, courtesy of its preparations for the key tech event, CES 2026. That news was covered in detail in the previous write-up.
2. United Airlines' second-quarter 2025 earnings per share (excluding 90 cents from non-recurring items) of $3.87 surpassed the Zacks Consensus Estimate by a penny but declined 6.5% on a year-over-year basis. Operating revenues of $15.2 billion fell short of the Zacks Consensus Estimate of $15.4 billion but increased 1.7% year over year. Passenger revenues (which accounted for 90.8% of the top line) increased 1.1% year over year to $13.8 billion. UAL flights transported 46,186 passengers in the second quarter, up 4.1% year over year. UAL anticipates less geopolitical and macroeconomic uncertainty in the second half of 2025, with demand inflection beginning in early July with a 6-point acceleration in booking demand.
For third-quarter 2025, UAL anticipates adjusted EPS between $2.25 and $2.75. For 2025, UAL expects adjusted EPS between $9.00 and $11.00.
3. LATAM Airlines reported a 10.7% year-over-year increase in consolidated capacity, measured in available seat-kilometers (ASK). The uptick was driven by a 13.9% increase in LATAM Airlines Brazil’s domestic capacity, partly owing to the temporary closure of Salgado Filho International Airport in Porto Alegre during 2024, as well as a 12.3% increase in the group’s international capacity. LTM’s consolidated traffic, measured in revenue passenger-kilometers (RPK), increased 10.2% year over year.
4. Copa Holdings reported robust traffic numbers for June 2025 on the back of upbeat air travel demand. Driven by high passenger volumes, revenue passenger miles (RPM: a measure of traffic) improved on a year-over-year basis in June. To match the demand swell, CPA is increasing its capacity. In June, available seat miles (ASM: a measure of capacity) increased 5.3% year over year. RPM rose 6.3% year over year. Since traffic outpaced capacity expansion, the load factor (the percentage of seats filled by passengers) inched up to 87.5% from 86.6% in June 2025.
5. In a bid to expand its network, Southwest Airlines announced that it will operate flights to St. Thomas in the U.S. Virgin Islands in 2026. St. Thomas has become a popular vacation destination, with a record number of airline passengers in 2024. St. Thomas is the first of three new destinations for 2026 that the carrier expects to announce this summer. It will be the ninth island destination served by Southwest in the Atlantic Basin. This is the first time since 2021 that LUV is adding new destinations to its network.
Airline Stocks Performance
The following table shows the price movement of the major airline players over the past week and during the last six months.
Image Source: Zacks Investment Research
The NYSE ARCA Airline Index decreased by 1.1% to $59.63 as most airline stocks traded in the red over the past week. Over the past six months, the NYSE ARCA Airline Index has decreased by 17.1%.
What’s Next in the Airline Space?
Amid the tariff-induced uncertainties, second-quarter 2025 earnings reports of many airlines are expected in the coming days. For example, Southwest Airlines is scheduled to report quarterly results on July 24. While improved air travel demand is likely to boost the top line, the bottom line is expected to have been aided by reduced fuel costs.
One Big Gain, Every Trading Day
To help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.
Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.
Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Airline Stock Roundup: DAL & UAL's Q2 Earnings, CPA, LUV in Focus

Key Points
The airline industry has undergone significant changes, and Delta Air Lines is at the forefront of achieving enduring profitability.
Network carriers have substantial advantages over low-cost airlines in the current environment.
The market underappreciates this airline's robust cash flow generation and return on investment.
Airline stocks haven't traditionally been a great investment, and they've attracted criticism from no less than Warren Buffett in the past. However, if you are willing to keep an open mind and share my view that something fundamental has changed in the industry, then Delta Air Lines (NYSE: DAL) is a great stock to buy. Here are 10 reasons why.
1. Growth in premium revenue
The traditional view of the airline industry is one of highly cyclical booms and busts, where booms lead to overcapacity, which in turn leads to intense price competition in main cabin ticket prices when the inevitable demand slowdown occurs. One way Delta seeks to mitigate the cyclicity of its industry is by growing its premium cabin revenue, as high-income travelers account for 75% of air travel spending.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
In fact, whereas premium seats made up about 10% of seats in 2010, that figure has now increased to 30%, and Delta expects premium cabin revenue to surpass main cabin revenue by 2027.
2. SkyMiles loyalty program
Delta engenders customer loyalty through its highly successful SkyMiles program, which saw a 50% increase in membership from 2017 to 2024. Members tend to spend more at Delta, and the loyalty program generates long-term customer value for the airline. In this way, Delta also diversifies away from the traditional airline model, which is focused on one-off transactional ticket sales relationships.
3. Co-brand credit cards with American Express
American Express purchases miles from Delta, which it then uses to incentivize credit card holders to earn rewards through spending on the card. It's a highly successful product, and American Express' remuneration to Delta through it has grown from $2 billion in 2010 to $7 billion in 2024, with Delta's management aiming to reach $10 billion over time. Again, it's another example of Delta diversifying its revenue streams.
4. A new discipline
As implied earlier, airlines haven't always been disciplined in reducing capacity when the industry slows down, and this has led to profit margin bloodbaths in the past. That said, for the second year in a row, Delta has adjusted capacity in response to overcapacity (in the summer of 2024) and a demand slowdown (in the spring of 2025, due to tariffs), which is good news for its cost and earnings management.
5. The industry is also more disciplined
In addition, the industry at large is more disciplined, too, with peers like United Airlines reducing capacity in light of the tariff-induced slowdown in 2025. Discussing the matter on a recentearnings call Delta's CEO Ed Bastian said, "On the supply side, we're encouraged by the industry's actions to align capacity with demand as we move beyond the peak summer period. Importantly, seats at the lower end of the market are scheduled to contract."
6. Impressive return on investment
I've discussed this matter at length elsewhere; suffice to note that Delta is leading the industry's charge to generate a return on invested capital (ROIC) (13% in 2024) in excess of its weighted average cost of capital (WACC) (8% in 2024) with a long-term target ROIC of 15%. This is a key metric that the airline industry has struggled to achieve overall in the past.
7. Market position
Delta is achieving good ROIC because of its favorable market position, thanks to the factors noted (premium, SkyMiles, etc.), but also its core domestic airport hubs in Atlanta, Minneapolis/St. Paul, and Salt Lake City, a strong international presence at London-Heathrow, Paris-Charles de Gaulle, and Amsterdam.
8. Structurally advantaged
As a network carrier, Delta has a structural advantage over the low-cost carriers in the current environment of rising airport costs. Rising labor costs, supply chain, and airport fees (to fund expansion and maintenance) might increase the average ticket price by, say $10, which has an inordinate impact on a low-cost ticket price of, say $70, but not so much on a Delta ticket costing $250.
9. Robust cash flow generation
Yes, Delta has debt thanks to the COVID-19 pandemic lockdown periods, but as of the end of June, its adjusted debt is down to $16.3 billion from $21.4 billion at the end of 2023. Moreover, given Delta's excellent free cash flow (FCF) generation (management reiterated guidance for full-year 2025 FCF of $3 billion to $4 billion recently), the company's debt reduction will continue as it strengthens its balance sheet.
10. Valuation
Ultimately, while valuations may fluctuate, Delta remains a stock to hold for the long term at its current valuation. Trading on just over 10 times estimated 2025 earnings and 12.2 times the low end of the 2025 FCF guidance range quoted, the market is undervaluing the long-term growth prospects at Delta, and the stock is highly attractive at these levels.
Should you invest $1,000 in Delta Air Lines right now?
Before you buy stock in Delta Air Lines, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Delta Air Lines wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $687,149!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,060,406!*
Now, it’s worth noting Stock Advisor’s total average return is 1,069% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of July 15, 2025
American Express is an advertising partner of Motley Fool Money. Lee Samaha has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

10 Reasons to Buy and Hold This Market-Leading Stock Forever

The S&P 500 Index ($SPX) (SPY) Thursday closed up +0.54%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.52%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.74%. September E-mini S&P futures (ESU25) rose +0.59%, and September E-mini Nasdaq futures (NQU25) rose +0.77%.
Stocks rallied on Thursday, with the S&P 500 and Nasdaq 100 indexes posting new record highs. Signs that the US economy is holding up, despite tariff uncertainty, boosted stocks. Positive economic news Thursday included a decline in weekly jobless claims to a 3-month low, a stronger-than-expected retail sales report, and a rise in the Philadelphia Fed index to a 5-month high.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Stocks added to their gains Thursday afternoon on dovish comments from San Francisco Fed President Mary Daly, who said the most recent set of rate projections from Fed officials, issued in June, offered a "reasonable outlook" in pointing to two 25 bp rate cuts by year's end. She added that the Fed should not wait too long before moving on rates, because if they wait until inflation is 2%, they've "likely injured the economy in some way that was completely unnecessary."
On the negative side, health insurers retreated on Thursday, led by a -12% plunge in Elevance Health after the company cut its earnings outlook for the year. Also, hawkish comments from Fed Governor Adriana Kugler were bearish for stocks when she said the Fed should keep interest rates on hold "for some time," citing accelerating inflation as tariffs start to boost prices.
US weekly initial unemployment claims unexpectedly fell -7,000 to a 3-month low of 221,000, showing a stronger labor market than expectations of an increase to 233,000.
US June retail sales rose +0.6% m/m, stronger than expectations of +0.1% m/m, and June retail sales ex-autos rose +0.5% m/m, stronger than expectations of +0.3% m/m.
The US June import price index ex-petroleum was unchanged m/m, weaker than expectations of +0.2% m/m.
The US July Philadelphia Fed business outlook survey rose +19.9 to a 5-month high of 15.9, stronger than expectations of -1.0.
The US July NAHB housing market index rose +1 to 33, right on expectations.
On the trade front, President Trump said late Wednesday that he intends to send a tariff letter to more than 150 countries notifying them their tariff rates could be 10% or 15%, effective August 1, and that the group was "not big countries who don't do that much business with the US."
Also, signs that the US could ease some of its export restrictions on semiconductor chips to China are bullish for chip makers. Commerce Secretary Lutnick said Nvidia could soon resume sales of its less advanced H20 chips to China, and Advanced Micro Devices received similar assurances from the Commerce Department, a sign that the US may be in the process of negotiating a grand trade deal with China. Treasury Secretary Bessent is expected to meet his Chinese counterpart, Vice Premier He Lifeng, within "the next couple of weeks" and signaled the US will likely extend an August 12 deadline for the easing of sky-high tariffs.
However, stocks were undercut by negative trade news that emerged last week and during this past weekend. Over the weekend, President Trump announced that the US will impose 30% tariffs on US imports from the European Union and Mexico, effective August 1. Mr. Trump said last Thursday that a 35% tariff on some Canadian products would take effect on August 1, up from the current 25%. Last week, Mr. Trump imposed a 50% tariff on copper imports, which will include semi-finished goods, and stated that drug companies could face tariffs as high as 200% on imports if they don't relocate production to the US within the next year.
Federal funds futures prices are discounting the chances for a -25 bp rate cut at 3% at the July 29-30 FOMC meeting and 58% at the following meeting on September 16-17.
The markets will focus on any fresh news regarding tariffs or trade deals during the remainder of this week. On Friday, June housing starts are expected to climb +3.6% m/m to 1.300 million, and June building permits are expected to slip -0.5% m/m to 1.387 million. Also, the University of Michigan's US July consumer sentiment index is expected to climb +0.8 to 61.5.
Earnings season began in earnest this week with a focus on big bank earnings results. The consensus is for S&P 500 companies to show Q2 earnings growth of +2.8% y/y, the smallest increase in two years, according to Bloomberg Intelligence. Also, only six of the eleven S&P 500 sectors are projected to post an increase in earnings, the fewest since Q1 of 2023, according to Yardeni Research.
Overseas stock markets on Thursday settled higher. The Euro Stoxx 50 closed up +1.49%. China's Shanghai Composite closed up +0.37%. Japan's Nikkei Stock 225 closed up +0.60%.
Interest Rates
September 10-year T-notes (ZNU25) on Thursday closed down -3.5 ticks. The 10-year T-note yield rose +0.8 bp to 4.463%. T-notes on Thursday posted modest losses following stronger-than-expected US economic news, including June retail sales, weekly initial unemployment claims, and the July Philadelphia Fed manufacturing survey, which signaled a hawkish tone for Fed policy. Also, Thursday's rally in the S&P 500 to a new all-time high reduced safe-haven demand for T-notes. In addition, hawkish comments from Fed Governor Adriana Kugler weighed on T-notes when she said the Fed should keep interest rates on hold "for some time." Finally, rising inflation expectations undercut T-notes when the 10-year breakeven inflation rate rose to a 4.75-month high of 2.450% on Thursday.
Losses in T-notes were limited Thursday on carryover support from late Wednesday when President Trump said he has "no plans" on firing Fed Chair Powell. T-notes also found support on signs of easing price pressures after Thursday's news showed the June import price index ex-petroleum rose less than expected.
European government bond yields on Thursday were mixed. The 10-year German bund yield fell -1.3 bp to 2.675%. The 10-year UK gilt yield rose to a 6-week high of 4.678% and finished up +1.7 bp to 4.655%.
Swaps are discounting the chances at 1% for a -25 bp rate cut by the ECB at the July 24 policy meeting.
US Stock Movers
United Airlines Holdings (UAL) closed up more than +3% to lead airline stocks higher after CEO Kirby said the second half of the year has become more predictable and the company has potential "upside" to beat its earnings targets as customers returned to booking flights. Also, Alaska Air Group (ALK) closed up more than +3% and American Airlines Group (AAL) closed up more than +2%. In addition, Delta Air Lines (DAL) closed up more than +1%.
PepsiCo (PEP) closed up more than +7% to lead gainers in the Nasdaq 100 after reporting Q2 net revenue of $22.73 billion, above the consensus of $22.32 billion.
Snap-on (SNA) closed up more than +7% after reporting Q2 net sales of $1.18 billion, stronger than the consensus of $1.16 billion.
Steven Madden Ltd (SHOO) closed up more than +6% after Citigroup upgraded the stock to buy from neutral with a price target of $32.
CSX Corp (CSX) closed up more than +4% after Semafor reported that Union Pacific is exploring an acquisition of the company.
Travelers Cos (TRV) closed up more than +3% to lead gainers in the Dow Jones Industrials after reporting Q1 core EPS of $6.51, well above the consensus of $3.60.
Mondelez International (MDLZ) closed up more than +3% after Jefferies upgraded the stock to buy from hold with a price target of $78.
Health insurance providers are sliding today, led by a -12% plunge in Elevance Health (ELV) to lead losers in the S&P 500 after cutting its earnings outlook for the year to "approximately" $30 per share, well below a previous forecast of $34.15 to $34.85 per share. Also, Molina Healthcare (MOH) closed down more than -5% and Centene (CNC) closed down more than -4%. In addition, Cigna Group (CI) closed down more than -2% and Humana (HUM) closed down more than -1%. Finally, UnitedHealth Group (UNH) closed down more than -1% to lead losers in the Dow Jones Industrials.
Sonic Automotive (SAH) closed down -10% after JPMorgan Chase downgraded the stock to underweight from overweight with a price target of $72.
Abbott Laboratories (ABT) closed down more than -8% after reporting Q2 organic sales of +6.90%, below the consensus of +7.03% and forecasting full-year organic sales of +6% to +7%, weaker than the consensus of +7.37%.
Starwood Property Trust (STWD) closed down more than -5% after selling over 25.5 million shares of its common stock in an underwritten public offering overnight between $19.91 to $20.33 a share, below Wednesday's closing price of $20.85.
Shake Shack (SHAK) closed down more than -1% after Jeffries downgraded the stock to underperform from hold with a price target of $120.
Zoetis (ZTS) closed down -1% after Leerink Partners downgraded the stock to market perform from outperform.
Earnings Reports (7/18/2025)
3M Co (MMM), Ally Financial Inc (ALLY), American Express Co (AXP), Charles Schwab Corp/The (SCHW), Comerica Inc (CMA), Euronet Worldwide Inc (EEFT), Huntington Bancshares Inc/OH (HBAN), MarketAxess Holdings Inc (MKTX), Regions Financial Corp (RF), Schlumberger NV (SLB), Southern Copper Corp (SCCO), Truist Financial Corp (TFC).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

S&P 500 and Nasdaq 100 Rally to Record Highs on a Resilient US Economy

The S&P 500 Index ($SPX) (SPY) today is up +0.25%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.19%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.47%. September E-mini S&P futures (ESU25) are up +0.25%, and September E-mini Nasdaq futures (NQU25) are up +0.51%.
Stocks are climbing today on signs the US economy is holding up, despite tariff uncertainty. Positive economic news today included a decline in weekly jobless claims to a 3-month low, a stronger-than-expected retail sales report, and a rise in the Philadelphia Fed index to a 5-month high.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Strength in airline stocks is also lifting the broader market, as United Airlines Holdings jumped more than 3% after CEO Kirby said the second half of the year has become more predictable and the company has potential “upside” to beat its earnings targets, as customers return to booking flights.
On the negative side, health insurers are retreating today, led by an -11% plunge in Elevance Health after the company cut its earnings outlook for the year. Also, hawkish comments from Fed Governor Adriana Kugler were bearish for stocks when she said the Fed should keep interest rates on hold “for some time,” citing accelerating inflation as tariffs start to boost prices.
US weekly initial unemployment claims unexpectedly fell -7,000 to a 3-month low of 221,000, showing a stronger labor market than expectations of an increase to 233,000.
US June retail sales rose +0.6% m/m, stronger than expectations of +0.1% m/m, and June retail sales ex-autos rose +0.5% m/m, stronger than expectations of +0.3% m/m.
The US June import price index ex-petroleum was unchanged m/m, weaker than expectations of +0.2% m/m.
The US July Philadelphia Fed business outlook survey rose +19.9 to a 5-month high of 15.9, stronger than expectations of -1.0.
The US July NAHB housing market index rose +1 to 33, right on expectations.
On the trade front, President Trump said late Wednesday that he intends to send a tariff letter to more than 150 countries notifying them their tariff rates could be 10% or 15%, effective August 1, and that the group was “not big countries who don’t do that much business with the US.”
Also, signs that the US could ease some of its export restrictions on semiconductor chips to China are bullish for chip makers. Commerce Secretary Lutnick said Nvidia could soon resume sales of its less advanced H20 chips to China, and Advanced Micro Devices received similar assurances from the Commerce Department, a sign that the US may be in the process of negotiating a grand trade deal with China. Treasury Secretary Bessent is expected to meet his Chinese counterpart, Vice Premier He Lifeng, within “the next couple of weeks” and signaled the US will likely extend an August 12 deadline for the easing of sky-high tariffs.
However, stocks were undercut by negative trade news that emerged last week and during this past weekend. Over the weekend, President Trump announced that the US will impose 30% tariffs on US imports from the European Union and Mexico, effective August 1. Mr. Trump said last Thursday that a 35% tariff on some Canadian products would take effect on August 1, up from the current 25%. Last week, Mr. Trump imposed a 50% tariff on copper imports, which will include semi-finished goods, and stated that drug companies could face tariffs as high as 200% on imports if they don’t relocate production to the US within the next year.
Federal funds futures prices are discounting the chances for a -25 bp rate cut at 3% at the July 29-30 FOMC meeting and 58% at the following meeting on Sep 16-17.
The markets will focus on any fresh news regarding tariffs or trade deals during the remainder of this week. Later today, the July NAHB housing market index is expected to rise +1 to 33. On Friday, June housing starts are expected to climb +3.3% m/m to 1.298 million, and June building permits are expected to slip -0.6% m/m to 1.386 million. Also, the University of Michigan’s US July consumer sentiment index is expected to climb +0.8 to 61.5.
Earnings season began in earnest this week with a focus on big bank earnings results. The consensus is for S&P 500 companies to show Q2 earnings growth of +2.8% y/y, the smallest increase in two years, according to Bloomberg Intelligence. Also, only six of the eleven S&P 500 sectors are projected to post an increase in earnings, the fewest since Q1 of 2023, according to Yardeni Research.
Overseas stock markets today are higher. The Euro Stoxx 50 is up +1.23%. China’s Shanghai Composite closed up +0.37%. Japan’s Nikkei Stock 225 closed up +0.60%.
Interest Rates
September 10-year T-notes (ZNU25) today are up +3 ticks. The 10-year T-note yield is down -2.4 bp to 4.431%. T-notes recovered from early losses today and moved higher on carryover support from late Wednesday when President Trump said he has “no plans” on firing Fed Chair Powell. T-notes also found support on signs of easing price pressures after today’s news showed the June import price index ex-petroleum rose less than expected.
T-notes initially moved lower today on stronger-than-expected US economic news, including June retail sales, weekly initial unemployment claims, and the July Philadelphia Fed manufacturing survey, which signaled strength in the US economy that was hawkish for Fed policy. Also, strength in stocks today has reduced safe-haven demand for T-notes. In addition, hawkish comments from Fed Governor Adriana Kugler limited gains in T-notes when she said the Fed should keep interest rate on hold “for some time.”
European government bond yields today are moving lower. The 10-year German bund yield is down -2.0 bp to 2.667%. The 10-year UK gilt yield fell from a 6-week high of 4.678% and is down -0.1 bp to 4.638%.
Swaps are discounting the chances at 1% for a -25 bp rate cut by the ECB at the July 24 policy meeting.
US Stock Movers
United Airlines Holdings (UAL) is up more than +3% to lead airline stocks higher after CEO Kirby said the second half of the year has become more predictable and the company has potential “upside” to beat its earnings targets as customers returned to booking flights. Also, Alaska Air Group (ALK) is up more than +3% and American Airlines Group (AAL) is up more than +2%. In addition, Delta Air Lines (DAL) is up more than +1%.
PepsiCo (PEP) is up more than +6% to lead gainers in the S&P 500 and Nasdaq 100 after reporting Q2 net revenue of $22.73 billion, above the consensus of $22.32 billion.
Snap-on (SNA) is up more than +5% after reporting Q2 net sales of $1.18 billion, stronger than the consensus of $1.16 billion.
CSX Corp (CSX) is up more than +2% after Semafor reported that Union Pacific is exploring an acquisition of the company.
Steven Madden Ltd (SHOO) is up more than +5% after Citigroup upgraded the stock to buy from neutral with a price target of $32.
Travelers Cos (TRV) is up more than +2% to lead gainers in the Dow Jones Industrials after reporting Q1 core EPS of $6.51, well above the consensus of $3.60.
Mondelez International (MDLZ) is up more than +2% after Jefferies upgraded the stock to buy from hold with a price target of $78.
Health insurance providers are sliding today, led by an -11% plunge in Elevance Health (ELV) to lead losers in the S&P 500 after cutting its earnings outlook for the year to “approximately” $30 per share, well below a previous forecast of $34.15 to $34.85 per share. Also, Molina Healthcare (MOH) is down more than -3%. In addition, Humana (HUM), Centene (CNC), and Cigna Group (CI) are down more than -2%. Finally, UnitedHealth Group (UNH) is down more than -1% to lead losers in the Dow Jones Industrials.
Sonic Automotive (SAH) is down more than -8% after JPMorgan Chase downgraded the stock to underweight from overweight with a price target of $72.
Abbott Laboratories (ABT) is down more than -7% after reporting Q2 organic sales of +6.90%, below the consensus of +7.03% and forecasting full-year organic sales of +6% to +7%, weaker than the consensus of +7.37%.
Starwood Property Trust (STWD) is down more than -4% after selling over 25.5 million shares of its common stock in an underwritten public offering overnight between $19.91 to $20.33 a share, below Wednesday’s closing price of $20.85.
Archer-Daniels-Midland (ADM) is down more than -2% after President Trump said Coca-Cola has agreed to use “real cane sugar” in Coke soda in the US, which could reduce demand for ADM’s corn syrup and hurt its corn-processing business.
Shake Shack (SHAK) is down more than -2% after Jeffries downgraded the stock to underperform from hold with a price target of $120.
MP Materials (MP) is down more than -1% after it said it commenced a $500 million underwritten public offering of its common stock to fund its expansion.
Earnings Reports (7/17/2025)
PepsiCo Inc (PEP), Travelers Cos Inc/The (TRV), Abbott Laboratories (ABT), Elevance Health Inc (ELV), Cintas Corp (CTAS), Marsh & McLennan Cos Inc (MMC), US Bancorp (USB), Snap-on Inc (SNA), General Electric Co (GE), Citizens Financial Group Inc (CFG), Fifth Third Bancorp (FITB), Netflix Inc (NFLX).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Index	Bulls	Bears
Confidence
Support
Cash flows

	S/L 5%RUB 52.12	S/L 10%RUB 49.37	S/L 15%RUB 46.63
Day	4.90%	0.01%	0.00%
Week	37.86%	7.05%	0.53%
Month	66.75%	37.75%	17.34%

Delta Air Lines, Inc.

Market sentiment

Overall assessment

Share of longs and shorts

Long

Short

Momentum

Protective stop levels