Block's stock pops on addition to S&P 500
The stock rose following the announcement late Friday as investors sought to get in ahead of index fund managers, who will need to buy shares to mimic the changes. Square's $48 billion market cap at Monday's close places it well above the median S&P 500 constituent, though shares are still down 8% this year.
Passive funds are expected to purchase roughly 101 million shares of Block due its inclusion, equivalent to about 11 days of average trading volume, according to a note from Stephens.
Block is working to reestablish investor confidence after uneven performance from its Cash App business. Gimme Credit's Stu Novick noted that while gross profit growth missed estimates last quarter, the company still delivered strong adjusted earnings and improving cash flow.
While Block is joining the benchmark index, a major player in the fintech industry remains on the sidelines.
Robinhood has delivered one of the strongest recent runs in the U.S. stock market, soaring 345% in the past year. Yet despite nearing a nearly $100 billion, the company has been repeatedly passed over for S&P 500 inclusion.
Robinhood shares fell almost 5% on Monday.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
14 minutes ago
- Yahoo
Cincinnati Financial's quarterly profit more than doubles on higher premiums, interest income
(Reuters) -Property and casualty insurer Cincinnati Financial reported on Monday that its second-quarter profit more than doubled, reflecting higher premiums and investment income. The results reflect the stability of insurance firms, even as trade tensions disrupt other businesses. As consumers and companies grow accustomed to economic uncertainty, spending on policies has remained steady. Earned premiums rose 15% to $2.48 billion, the Fairfield, Ohio-based company said. Investment income jumped 18% to $285 million, driven by higher interest payments from its bond portfolio. The company reported a profit of $685 million, or $4.34 per share, for the three months ended June 30, compared with $312 million, or $1.98 per share, a year earlier. Its shares have risen nearly 4% so far this year as of Friday's close, compared with a nearly 2.3% gain in the S&P 500 insurance index. Earlier this month, industry bellwether Travelers Companies reported higher profits due to stronger underwriting and investment returns.
Yahoo
14 minutes ago
- Yahoo
How major US stock indexes fared Monday, 7/28/2025
U.S. stocks coasted to a quiet finish to begin a week full of potentially market-moving events. The S&P 500 edged up by less than 0.1% on Monday to set an all-time high for the sixth straight day. The Dow Jones Industrial Average slipped 0.1%, and the Nasdaq composite added 0.3% to its own record. Stocks were steady after the United States and European Union agreed on the framework for a trade deal, one that still has many details to be worked out. Later this week will come Big Tech profit reports, a decision on interest rates by the Federal Reserve and other highly anticipated reports. On Monday: The S&P 500 rose 1.13 points, or less than 0.1%, to 6,389.77. The Dow Jones Industrial Average fell 64.36 points, or 0.1%, to 44,837.56. The Nasdaq composite rose 70.27 points, or 0.3%, to 21,178.58. The Russell 2000 index of smaller companies fell 4.34 points, or 0.2%, to 2,256.73. For the year: The S&P 500 is up 508.14 points, or 8.6%. The Dow is up 2,293.34 points, or 5.4%. The Nasdaq is up 1,867.79 points, or 9.7%. The Russell 2000 is up 26.57 points, or 1.2%. Sign in to access your portfolio
Los Angeles Times
15 minutes ago
- Los Angeles Times
Wall Street kicks off a week full of potential flashpoints with a whisper
Stock indexes drifted through a quiet Monday after the United States agreed to tax cars and other products coming from the European Union at a 15% rate, lower than President Donald Trump had earlier threatened. Many details of the trade deal are still to be worked out, and Wall Street is heading into a week full of potential flashpoints that could shake markets. The S&P 500 was nearly flat and edged up by less than 0.1% to set an all-time high for a sixth straight day. The Dow Jones Industrial Average dipped 64 points, or 0.1%, while the Nasdaq composite added 0.3% to its own record. Tesla rose 3% after its CEO, Elon Musk, said it signed a deal with Samsung Electronics that could be worth more than $16.5 billion to provide chips for the electric-vehicle company. Samsung's stock in South Korea jumped 6.8%. Other companies in the chip and artificial-intelligence industries were strong, continuing their run from last week after Alphabet said it was increasing its spending on AI chips and other investments to $85 billion this year. Chip company Advanced Micro Devices rose 4.3%, and server-maker Super Micro Computer climbed 10.2%. But an 8.3% drop for Revvity helped to keep the market in check. The company in the life sciences and diagnostics businesses reported a stronger profit for the latest quarter than Wall Street expected, but its forecast for full year profit disappointed analysts. Companies are broadly under pressure to deliver solid growth in profits following big jumps in their stock prices the last few months. Much of the gain was due to hopes that Trump would walk back some of his stiff proposed tariffs, and critics say the U.S. stock market looks expensive unless companies produce bigger profits. All told, the S&P 500 added 1.13 to 6,389.77 points. The Dow Jones Industrial Average dipped 64.36 to 44,837.56, and the Nasdaq composite rose 70.27 to 21,178.58. More fireworks may be ahead this week. 'This is about as busy as a week can get in the markets,' according to Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley. Hundreds of U.S. companies are lined up to report how much profit they made during the spring, with nearly a third of the businesses in the S&P 500 index scheduled to deliver updates. That includes market heavyweights Apple, Amazon, Meta Platforms and Microsoft. Those companies have grown so huge that their stock movements can almost dictate what the overall S&P 500 index does. Microsoft alone is worth $3.8 trillion. On Wednesday, the Federal Reserve will announce its latest decision on interest rates. Trump has been angrily calling for the Fed to cut interest rates, a move that could give the economy a boost. But Fed Chair Jerome Powell insists that he wants more data about how Trump's tariffs are affecting the economy and inflation before the Fed makes its next move. Lower interest rates can fuel inflation, and the economy only recently came out of its scarring run where inflation briefly topped 9%. The widespread expectation on Wall Street is that Fed officials will wait until September to resume cutting interest rates, though a couple of Trump's appointees could dissent in the vote. The Fed has been on hold with interest rates this year since cutting them several times at the end of 2024. This week will also feature several potentially market-moving updates about the economy. On Tuesday will come reports on how confident U.S. consumers are feeling and how many jobs openings U.S. employers were advertising. Wednesday will show the first estimate of how quickly the U.S. economy grew during the spring, and economists expect to see a slowdown from the first three months of the year. On Thursday, the latest measure of inflation that the Federal Reserve prefers to use will arrive. A modest reading could give the Fed more leeway to cut interest rates in the short term, while a hotter-than-expected figure could make it more cautious. And Friday will bring an update on how many more workers U.S. employers hired during June than they fired. Treasury yields held relatively steady in the bond market ahead of all that action. The yield on the 10-year Treasury edged up to 4.41% from 4.40% late Friday. The two-year Treasury yield, which more closely tracks expectations for Fed action, rose to 3.92% from 3.91%. In stock markets abroad, indexes dipped in Europe following the announcement of the trade deal's framework. Chinese stocks rose as officials from the world's second-largest economy prepared to meet with a U.S. delegation in Sweden for trade talks. Stocks climbed 0.7% in Hong Kong and 0.1% in Shanghai. Indexes were mixed across the rest of Asia, where Japan's Nikkei 225 fell 1.1% for one of the world's bigger losses. Choe writes for the Associated Press.
