{"id":55225,"date":"2025-10-28T16:39:04","date_gmt":"2025-10-28T20:39:04","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/us-stocks-climb-on-tech-and-ai-hype-visa-edison-international-beat-estimates-while-mondelez-ea-face-headwinds\/55225\/"},"modified":"2025-10-28T16:39:04","modified_gmt":"2025-10-28T20:39:04","slug":"us-stocks-climb-on-tech-and-ai-hype-visa-edison-international-beat-estimates-while-mondelez-ea-face-headwinds","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-stocks-climb-on-tech-and-ai-hype-visa-edison-international-beat-estimates-while-mondelez-ea-face-headwinds\/55225\/","title":{"rendered":"US Stocks Climb on Tech and AI Hype; Visa, Edison International Beat Estimates While Mondelez, EA Face Headwinds"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Major U.S. indices closed higher<\/strong>, with the <a href=\"https:\/\/stockmarketwatch.com\/indices\/dowjones\/today\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a>, NASDAQ, and <a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> all posting gains, driven by continued <em>AI hype<\/em> and <em>big tech performance<\/em>.<\/li>\n<li><strong>Visa (<a href=\"\/stock\/V\">V<\/a>) and Edison International (<a href=\"\/stock\/EIX\">EIX<\/a>) reported strong Q4 and Q3 earnings respectively<\/strong>, both exceeding analyst expectations for adjusted EPS and revenue, with Visa also boosting its dividend by <strong>14%<\/strong>.<\/li>\n<li><strong>Mondelez International (<a href=\"\/stock\/MDLZ\">MDLZ<\/a>) and Electronic Arts (<a href=\"\/stock\/EA\">EA<\/a>) presented mixed results<\/strong>, with Mondelez beating revenue but missing on gross margin and lowering its full-year EPS outlook, while EA missed revenue estimates and ceased providing forward guidance.<\/li>\n<li><strong>Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>) faces a complete lockout from China&#39;s AI chip market<\/strong>, with its market share effectively at zero, prompting plans to increase U.S. chip packaging.<\/li>\n<li><strong>Trump Media (<a href=\"\/stock\/DJT\">DJT<\/a>) announced a partnership with Crypto.com<\/strong> to launch prediction markets on Truth Social.<\/li>\n<\/ul>\n<h2>Market Performance Overview<\/h2>\n<p>U.S. equities extended their rally, with major indices closing higher, largely propelled by <em>renewed enthusiasm for artificial intelligence and strong performance from big technology companies<\/em>. The <strong>Dow Jones Index<\/strong> rose by <strong>197.37 points, or 0.42%<\/strong>, to close at <strong>47,741.96<\/strong>. The <strong>NASDAQ<\/strong> saw an improvement of <strong>193.94 points, or 0.82%<\/strong>, finishing the day at <strong>23,831.40<\/strong>, while the <strong>S&amp;P 500<\/strong> unofficially ended with an increase of <strong>19.50 points, or 0.28%<\/strong>, settling at <strong>6,894.66<\/strong>.<\/p>\n<p><em>Market sentiment remains buoyed by expectations of Fed rate cuts, hopes for a thaw in U.S.-China relations, and substantial capital expenditure tailwinds in the AI sector<\/em>. However, <em>analysts are cautioning that valuations appear stretched, and a disappointing earnings report from one of the &quot;Magnificent Seven&quot; tech giants could significantly impact the market<\/em>.<\/p>\n<h2>Earnings Highlights: Visa and Edison International Outperform<\/h2>\n<p><strong>Visa (<a href=\"\/stock\/V\">V<\/a>)<\/strong> reported robust <strong>Q4 2025<\/strong> earnings, surpassing analyst estimates across key metrics. The payments giant announced <strong>Q4 adjusted EPS of $2.98<\/strong>, slightly above the <strong>$2.97<\/strong> estimate, and <strong>adjusted net income of $5.8 billion<\/strong>, exceeding the <strong>$5.76 billion<\/strong> estimate. Revenue also came in strong at <strong>$10.7 billion<\/strong>, topping the <strong>$10.614 billion<\/strong> consensus. The company&#39;s performance was driven by a <strong>9% increase in payment volume<\/strong>, an <strong>11% rise in cross-border volume (excluding Europe)<\/strong>, and a <strong>10% increase in processed transactions to 67.7 billion<\/strong>. Visa also announced a <strong>14% increase in its quarterly cash dividend to $0.67 per share<\/strong>. The results included an <strong>$899 million litigation provision<\/strong>.<\/p>\n<p><strong>Edison International (<a href=\"\/stock\/EIX\">EIX<\/a>)<\/strong> delivered a strong <strong>Q3 2025<\/strong> performance, beating core EPS estimates. The utility reported <strong>Q3 net income of $832 million<\/strong> and <strong>EPS of $2.16<\/strong>. Crucially, <strong>Q3 core EPS reached $2.34<\/strong>, significantly higher than the <strong>$2.18<\/strong> estimate. The company&#39;s <strong>Q3 adjusted net income was $901 million<\/strong>, well above the Ibes estimate of <strong>$757.9 million<\/strong>. Edison International also reiterated its <strong>FY core EPS outlook of $5.95-$6.20<\/strong> and expressed continued confidence in achieving <strong>5-7% core EPS growth from 2025-2028<\/strong>.<\/p>\n<h2>Mixed Results for Mondelez and Electronic Arts<\/h2>\n<p><strong>Mondelez International (<a href=\"\/stock\/MDLZ\">MDLZ<\/a>)<\/strong> presented a mixed <strong>Q3 2025<\/strong> earnings report. The snack food giant reported <strong>Q3 EPS of $0.57<\/strong> and <strong>net revenue of $9.74 billion<\/strong>, slightly beating the <strong>$9.7 billion<\/strong> estimate. However, the <strong>adjusted gross margin came in lower at 30.4%<\/strong>, compared to an expected <strong>33.1%<\/strong>. Looking ahead, Mondelez now forecasts <strong>full-year organic net revenue growth to be above +4%<\/strong>, a slight reduction from its previous expectation of <em>about +5%<\/em>. The company also adjusted its <strong>full-year adjusted EPS outlook to be down near -15%<\/strong>, a more significant decline than its prior forecast of <em>about -10%<\/em>.<\/p>\n<p><strong>Electronic Arts (<a href=\"\/stock\/EA\">EA<\/a>)<\/strong> reported its <strong>Q2 2025<\/strong> earnings, with revenue falling short of expectations. The video game publisher posted <strong>Q2 revenue of $1.8 billion<\/strong>, missing the <strong>$1.88 billion<\/strong> estimate. <strong>Net income for the quarter was $137 million<\/strong>, resulting in <strong>EPS of $0.54<\/strong>. In a significant development, <strong>EA announced it will no longer provide forward-looking guidance<\/strong>, signaling a shift in its communication strategy with investors.<\/p>\n<h2>Nvidia&#39;s China Setback and Trump Media&#39;s New Venture<\/h2>\n<p><strong>Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> faces a substantial challenge in the Chinese market, as the company stated it has been <strong>completely shut out of China\u2019s AI chip market<\/strong>, with its market share now effectively <strong>zero<\/strong>. The company has not yet applied for licenses to ship its new Blackwell chips to China. In response to these geopolitical and market pressures, Nvidia plans to <strong>ramp up chip packaging in the U.S. soon<\/strong>, with TSMC also preparing for increased domestic production.<\/p>\n<p>In other news, <strong>Trump Media (<a href=\"\/stock\/DJT\">DJT<\/a>)<\/strong> announced a new strategic partnership, revealing plans to <strong>launch prediction markets on Truth Social<\/strong> in collaboration with <strong>Crypto.com<\/strong>. This move marks a new venture for the social media platform into the burgeoning prediction market space.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Major U.S. indices closed higher, with the Dow Jones, NASDAQ, and S&amp;P 500 all posting gains, driven by 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