Invesco, Norfolk Southern, and Talen Energy Surge Amid Earnings Reports and Mergers

Major US equities indexes were little changed to lower at midday Friday as investors digested corporate earnings news. Invesco shares surged after the investment manager said it's looking to change the structure of its Invesco QQQ Trust ETF, while Norfolk Southern shares gained for a second-straight session on reports it could be purchased by Union Pacific. Shares of health insurers including Elevance Health and Molina Healthcare fell after Elevance lowered its outlook.

July 2, 2025

Major US equities indexes were little changed to lower at midday Friday as investors digested corporate earnings news. The S&P 500 and the Nasdaq Composite ended the day with minimal gains, while the Dow Jones Industrial Average also showed mixed performance.

The S&P 500 (.SPX) [1] and the Nasdaq Composite (.IXIC) [1] both finished at record highs on Thursday, as investors embraced strong economic data and earnings reports indicating American consumers remained willing to spend. The Nasdaq Composite gained 153.78 points, or 0.74%, to 20,884.27, while the S&P 500 increased 33.66 points, or 0.54%, to 6,297.36. The Dow Jones Industrial Average (.DJI) [1] also ended up, rising 229.71 points, or 0.52%, to 44,484.49.

Invesco shares (IVZ) surged after the investment manager said it's looking to change the structure of its Invesco QQQ Trust ETF. Invesco Capital Management LLC (ICM), an indirect wholly owned subsidiary of Invesco Ltd., filed a preliminary proxy statement with the Securities and Exchange Commission (SEC) seeking the consent of the beneficial owners of Invesco QQQ TrustSM, Series 1 (QQQ) to take certain actions to operate QQQ in a manner that would result in a reclassification of QQQ under the Investment Company Act of 1940, as amended [3].

Norfolk Southern shares (NSC) gained for a second-straight session on reports it could be purchased by Union Pacific (UNP). Union Pacific is reportedly in early-stage talks to acquire Norfolk Southern, potentially creating the largest rail operator in the U.S. [4]. This move would give Union Pacific access to Norfolk Southern's extensive 19,500-mile route network across 22 eastern states. The news sent Norfolk Southern shares up 4.1% in post-market trading, although the deal would face significant regulatory scrutiny.

Shares of health insurers including Elevance Health and Molina Healthcare fell after Elevance lowered its outlook. Elevance Health, which operates as Anthem, Inc., lowered its outlook for the second quarter, citing lower-than-expected enrollment and higher-than-expected medical costs. Molina Healthcare (MOHO) also saw its shares decline after reporting lower-than-expected earnings for the first quarter.

Technology stocks were buoyed by TSMC's record quarterly profit, with U.S. chipmakers such as Marvell (MRVL.O) and Nvidia (NVDA.O) also seeing gains. TSMC (2330.TW) [1] posted a record quarterly profit, saying demand for artificial intelligence was getting stronger. U.S.-listed shares of TSMC gained 3.4%, as Marvell rose 1.6% and Nvidia increased 1%.

Investors have been watching for signs of whether Trump's tariff policies are starting to permeate the U.S. economy. The Federal Reserve has indicated it will hold off on interest rate cuts until it can see the inflationary impact of higher import taxes. Traders now peg the odds of a September rate cut at around 54%, with a July move nearly ruled out, according to CME's FedWatch tool [1].

References:

[1] https://www.reuters.com/business/sp-500-nasdaq-end-fresh-record-highs-data-earnings-point-consumer-strength-2025-07-17/
[2] https://www.theblock.co/post/363137/bitmines-ether-stash-exceeds-1-billion-in-corporate-ethereum-treasury-sprint
[3] https://www.marketscreener.com/news/invesco-files-preliminary-proxy-statement-to-reclassify-invesco-qqq-trusta-series-1-ce7c5cdedf8df321
[4] https://www.gurufocus.com/news/2987485/first-look-union-pacific-eyes-norfolk-southern-acquisition