Investors are bracing for a busy earnings week, with more
than 100 S&P 500 companies reporting results and the first of the tech
giants, Alphabet and Tesla, set to take center stage midweek.
Monday’s early reports painted a mixed picture, but
optimism about broader corporate performance and easing bond yields helped push
major indexes higher.
Verizon Raises Forecast, Domino’s Misses Profit
Verizon opened the week with a solid beat, lifting its
full-year profit outlook after stronger-than-expected demand for high-end
wireless plans. The telecom giant’s results offered a positive outlook even as
macroeconomic questions, particularly around tariffs, loom large.
Source: GoogleFinance
Domino’s Pizza also posted earnings before the bell
but delivered a more mixed picture. Same-store sales rose by 3.4%, ahead of
forecasts, but profits fell short. Despite this, the pizza chain’s performance
indicates a continued appetite for value-focused consumer brands.
Steelmaker Cleveland-Cliffs surprised investors with
better-than-expected earnings and used its earnings call to praise former
President Trump’s Section 232 steel tariffs, calling them a tailwind for
domestic production.
Alphabet and Tesla to Anchor Tech Earnings Midweek
While Monday provided early momentum, markets are
largely anticipating Wednesday, when Alphabet and Tesla report after the market
close. The two are the first of the so-called “Magnificent Seven” to deliver
second-quarter numbers and could set the tone for the rest of the sector.
Tesla, on the other hand, continues to face pressure
from falling deliveries and heightened political scrutiny of CEO Elon Musk. Q2
deliveries dropped 13.5% from a year ago to 384,122, marking the second
consecutive quarterly decline, Reuters reported. The stock remains highly volatile, recovering
47% since its April low but still down 18% on the year. Tesla’s valuation—188
times earnings—raises the stakes for its upcoming report.
Tariffs, Fed Talk Add Complexity to Market Outlook
Bank of America Securities has reiterated its Buy
rating and $320 price target on IBM, citing potential growth in Red Hat and
foreign exchange tailwinds ahead of the tech giant’s second-quarter earnings
report on July 23.
IBM shares last traded at $287.09, bringing the stock
within range of its 52-week high of $296.16. The company’s market
capitalization stands at approximately $266 billion.
Markets Search for Catalyst as Sentiment Shifts
Beyond earnings, global trade tensions continue to
hover over markets. The U.S. is just 11 days away from a potential tariff
increase on European goods, with reports suggesting that the Trump
administration may consider duties as high as 15%. EU officials are preparing
for retaliatory action if negotiations collapse.
Meanwhile, speculation persists around the future of
Federal Reserve Chair Jerome Powell. According to the Wall Street Journal,
Treasury Secretary Scott Bessent has advised President Trump not to remove
Powell, despite growing policy disagreements.
Meanwhile, the market’s recent momentum has relied
heavily on tech and AI enthusiasm, which leaves indices vulnerable if results
disappoint.
Investors are bracing for a busy earnings week, with more
than 100 S&P 500 companies reporting results and the first of the tech
giants, Alphabet and Tesla, set to take center stage midweek.
Monday’s early reports painted a mixed picture, but
optimism about broader corporate performance and easing bond yields helped push
major indexes higher.
Verizon Raises Forecast, Domino’s Misses Profit
Verizon opened the week with a solid beat, lifting its
full-year profit outlook after stronger-than-expected demand for high-end
wireless plans. The telecom giant’s results offered a positive outlook even as
macroeconomic questions, particularly around tariffs, loom large.
Source: GoogleFinance
Domino’s Pizza also posted earnings before the bell
but delivered a more mixed picture. Same-store sales rose by 3.4%, ahead of
forecasts, but profits fell short. Despite this, the pizza chain’s performance
indicates a continued appetite for value-focused consumer brands.
Steelmaker Cleveland-Cliffs surprised investors with
better-than-expected earnings and used its earnings call to praise former
President Trump’s Section 232 steel tariffs, calling them a tailwind for
domestic production.
Alphabet and Tesla to Anchor Tech Earnings Midweek
While Monday provided early momentum, markets are
largely anticipating Wednesday, when Alphabet and Tesla report after the market
close. The two are the first of the so-called “Magnificent Seven” to deliver
second-quarter numbers and could set the tone for the rest of the sector.
Tesla, on the other hand, continues to face pressure
from falling deliveries and heightened political scrutiny of CEO Elon Musk. Q2
deliveries dropped 13.5% from a year ago to 384,122, marking the second
consecutive quarterly decline, Reuters reported. The stock remains highly volatile, recovering
47% since its April low but still down 18% on the year. Tesla’s valuation—188
times earnings—raises the stakes for its upcoming report.
Tariffs, Fed Talk Add Complexity to Market Outlook
Bank of America Securities has reiterated its Buy
rating and $320 price target on IBM, citing potential growth in Red Hat and
foreign exchange tailwinds ahead of the tech giant’s second-quarter earnings
report on July 23.
IBM shares last traded at $287.09, bringing the stock
within range of its 52-week high of $296.16. The company’s market
capitalization stands at approximately $266 billion.
Markets Search for Catalyst as Sentiment Shifts
Beyond earnings, global trade tensions continue to
hover over markets. The U.S. is just 11 days away from a potential tariff
increase on European goods, with reports suggesting that the Trump
administration may consider duties as high as 15%. EU officials are preparing
for retaliatory action if negotiations collapse.
Meanwhile, speculation persists around the future of
Federal Reserve Chair Jerome Powell. According to the Wall Street Journal,
Treasury Secretary Scott Bessent has advised President Trump not to remove
Powell, despite growing policy disagreements.
Meanwhile, the market’s recent momentum has relied
heavily on tech and AI enthusiasm, which leaves indices vulnerable if results
disappoint.
