Sure! Here’s a rewritten version of the content while keeping the HTML tags intact:
After the extended holiday weekend, we’re back to a full week of trading. Here are a few key points we’re monitoring this week.
First, trade-war headlines. The Trump Administration’s initial deadline was July 9th, and while that date remains significant for investors, it now seems that many countries will have until August 1st. Perhaps it’s the ebb and flow of the entire situation, or maybe it’s the reality that trade tensions could escalate in the coming weeks. Either way, US stocks are trading lower this morning, at least partly due to these headlines.
Second, earnings. Although earnings season officially kicks off on July 15th with the major banks, we’ll see a couple of reports this week. One of those will be from Delta Air Lines (NYSE:) on Thursday.
Third, record highs. Stocks soared to record highs on Friday, with the IWM and QQQ ETFs leading the charge with 1% gains. Typically, one week each month lacks significant economic reports, and July is that week. Can stocks continue to rise into earnings season, or will trade concerns cause investors to pause?
The Setup — Philip Morris
Philip Morris International Inc (NYSE:) may not be a frequent topic of discussion, but its stock has performed well. Shares of PM are up 48.5% this year and have increased over 70% in the past 12 months. Despite the substantial rally, shares still offer a respectable dividend yield of 3%. Analysts anticipate around 10% earnings growth this year, as well as in fiscal years 2026, 2027, and 2028. On the revenue side, consensus estimates project high-single-digit growth between 6.5% and 9% from 2025 through 2028.
Recently, shares pulled back about 5% from their highs, testing the 50-day moving average, which has been a key support area. Chart as of the close on 7/3/2025. Source: eToro ProCharts, courtesy of TradingView. Alongside the 50-day moving average, shares are also finding support near $175, which was resistance in early May but turned into support later that month. If PM can maintain this level, bulls will look for a further bounce to the upside, potentially back toward the recent highs around $187. Conversely, a break below $175 could lead to more downside, as momentum shifts to a more bearish outlook in the short term.
Options
For options traders, calls or bull call spreads could be a strategy to speculate on support holding during a pullback. In this case, options buyers limit their risk to the premium paid for the calls or call spreads while aiming to benefit from a stock bounce. On the other hand, investors anticipating a failure of support might consider puts or put spreads.
What Wall Street Is Watching
TSLA
Shares of Tesla (NASDAQ:) are facing significant pressure this morning, dropping about 6% in pre-market trading after CEO Elon Musk announced he is forming a new political party in the US. This news adds tension to an already divisive political landscape between Musk and the Trump Administration.
BTC
Bitcoin continues to consolidate between $100K and $110K, as bulls were hoping for a crucial breakout over the weekend. While BTC is still flirting with a move to new highs, it has yet to surpass the May 22nd peak. Will it happen this week?
Feel free to let me know if you need any further adjustments!
