Markets are waking up to a wave of earnings-driven movement this morning, with futures in the green and several heavyweight names pushing sentiment higher. The S&P 500 (ES) is up 1.1%, the Nasdaq 100 (NQ) leads with a 1.7% jump, and the small-cap Russell 2000 (RTY) lags slightly, adding 0.3%. Let’s break down what’s fueling the action ahead of the bell.
Tech Titans Lead the Charge
Microsoft ($MSFT) +9%
A strong earnings report sent Microsoft shares surging. All major metrics beat expectations, and perhaps more importantly, the company’s forward-looking guidance was notably bullish. Confidence around cloud growth and AI integration continues to solidify Microsoft’s dominance, making it the clear standout this morning.
Meta Platforms ($META) +6.5%
Meta is riding high after beating on both earnings per share and revenue. A key catalyst behind the rally is the company’s decision to raise its full-year capital expenditure outlook—a move signaling continued aggressive investment in infrastructure and AI. This update also gave a lift to NVIDIA ($NVDA), which is up 5% in sympathy, as stronger capex means stronger chip demand.
Qualcomm ($QCOM) -5.5%
Despite a solid performance in the previous quarter, Qualcomm is under pressure as its next-quarter guidance failed to impress. Investors were likely hoping for a more optimistic outlook given recent enthusiasm around mobile AI and connectivity. The muted tone is resulting in notable downside.
Mixed Bag in Semis & Hardware
KLA Corp ($KLAC) -1%
The semiconductor equipment maker saw its profit fall short, though revenue topped forecasts. A silver lining came in the form of a raised dividend and the announcement of a $5 billion expansion to its share buyback program. Still, the earnings miss has left investors lukewarm this morning.
Health & Pharma Shake Things Up
CVS Health ($CVS) +8.5%
CVS is rallying after delivering a beat on both the top and bottom lines. The company raised its full-year 2025 profit forecast and announced a strategic partnership via its Caremark unit with Novo Nordisk to boost usage of Wegovy, a weight-loss drug that’s been in high demand. The forward-looking strategy is clearly winning favor.
Eli Lilly ($LLY) -5%
In contrast, Eli Lilly is under pressure after cutting its full-year earnings per share guidance. While it reaffirmed its revenue outlook, the reduced profit forecast is being interpreted as a cautionary signal in a sector already dealing with cost pressures and competition.
Industrials & Auto
General Motors ($GM) +2.8%
GM is trading higher despite cutting its overall outlook. The auto giant disclosed a potential $4–5 billion exposure to tariffs but appears to have reassured markets with its balance-sheet strength and resilience in core segments. Investors may be seeing this as a “less bad” scenario than feared.
Consumer Staples & Discretionary
Estee Lauder ($EL) +2%
A beat on both earnings and revenue is giving Estee Lauder a modest lift. The company also issued a robust full-year earnings outlook, helping to offset concerns about softening global discretionary spending.
McDonald’s ($MCD) -2%
On the downside, McDonald’s is facing a rare stumble. Revenue came in below expectations, and U.S. comparable sales declined more than anticipated. Even more surprising was the drop in global comp sales—an unwelcome development for a brand known for its international resilience. Investors are questioning whether higher menu prices are finally biting into demand.
⚗️ Materials
Albemarle ($ALB) +1.5%
Albemarle is gaining ground after reporting a shallower-than-expected loss per share. While not a blowout report, the lithium producer continues to be watched closely as a barometer for battery material demand. The narrower loss is offering a bit of relief.
Today’s pre-market action paints a clear picture: Big Tech is back in the driver’s seat, with upbeat guidance and strong earnings providing a solid tailwind. Healthcare is seeing mixed results, and while some consumer names are managing to shine, others are flashing early signs of strain. For now, the Nasdaq is stealing the spotlight, and earnings season continues to be the dominant catalyst.
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