This content was published on <\/p>\n
July 22, 2025 – 20:24\n<\/p>\n
(Bloomberg) \u2014 Wall Street traders gearing up for the start of the megacap earnings season sent stocks wavering near a record, with investors also parsing the latest tariff developments. Treasury yields fell alongside the dollar.<\/p>\n
About 400 shares in the S&P 500 rose even as the benchmark was little changed. A gauge of the \u201cMagnificent Seven\u201d big techs halted a nine-day advance before Tesla Inc. and Alphabet Inc.\u2019s results. President Donald Trump unveiled a trade deal with the Philippines while Canada\u2019s Prime Minister Mark Carney said he\u2019s looking to stabilize the relationship with the US. D.R. Horton Inc. led a rally in homebuilders. Kohl\u2019s Corp. soared 40%.<\/p>\n
Subscribe to the\u00a0Stock Movers Podcast\u00a0on\u00a0Apple,\u00a0Spotify\u00a0and other\u00a0Podcast Platforms.\u00a0 \u00a0\u00a0<\/p>\n
\u201cFading momentum in technology weighs on the major benchmarks, but breadth is strongly positive,\u201d said Jose Torres at Interactive Brokers. \u201cThe bifurcation illustrates how significant the performance of the Magnificent Seven is for the overall equity market.\u201d<\/p>\n
That \u201coverreliance\u201d is contributing to Wall Street tilting towards a defensive posture today, as participants scoop up Treasuries, Torres also noted.<\/p>\n
Treasury Secretary Scott Bessent said he will meet his Chinese counterparts in Stockholm next week for their third round of trade talks aimed at extending a tariff truce and widening the discussions. He predicted a \u201crash\u201d of trade deals between now and the Aug. 1 deadline.<\/p>\n
Bessent told Fox Business he sees no reason for Federal Reserve Chair Jerome Powell to step down. Meantime, Trump stressed his belief that the Fed\u2019s benchmark rate should be 3 percentage points lower. Bessent, in the same Oval Office event, said that \u201cbased on the way they cut rates last fall, they should be cutting rates now.\u201d<\/p>\n
\u201cWe expect market volatility to pick up in the lead-up to the August tariff deadline, with threats to Federal Reserve independence and geopolitical uncertainty lingering in the background,\u201d said Ulrike Hoffmann-Burchardi at UBS Global Wealth Management.<\/p>\n
Meantime, big tech\u2019s strength will be on full display over the next few weeks as they begin unveiling their quarterly earnings. Two of this year\u2019s laggards among the Magnificent Seven \u2014 Tesla and Alphabet \u2014 are on deck Wednesday.<\/p>\n
The lion\u2019s share of S&P 500 earnings growth continues to come from beneficiaries of advancements in artificial intelligence.\u00a0<\/p>\n
The Magnificent Seven companies are expected to post a combined 14% rise in second-quarter profits, while earnings for the rest of the US equity benchmark are predicted to be relatively flat, according to Bloomberg Intelligence data.<\/p>\n
\u201cWe expect solid earnings growth from big tech coupled with significant spending on artificial intelligence infrastructure by the hyperscalers,\u201d said Richard Saperstein at Treasury Partners. \u201cThis AI spending and investment is set to support future earnings growth.\u201d<\/p>\n
Saperstein said most of the Magnificent Seven should continue leading the market due to impressive earnings growth, copious levels of cash flow and continued demand for their businesses.\u00a0<\/p>\n
\u201cThe AI tailwinds are in the early innings, and are set to benefit the biggest players in tech the most,\u201d he added.<\/p>\n
\u201cTech heavyweights remain critical to market health,\u201d said Lauren Goodwin at New York Life Investments. \u201cWe expect AI-driven firms to continue anchoring tech sector growth. AI adoption at the corporate level is improving, but the application layer of this technology is only just being tested.\u201d<\/p>\n
Read: Alphabet Earnings Optimism Outweighs Looming Antitrust Risks<\/p>\n
Bank of America Corp. clients were net buyers of US equities in the week ended last Friday, with purchases most pronounced among individual investors, followed by hedge funds.<\/p>\n
BofA clients funneled $1.8 billion into US stocks last week, with buying across all size segments, the team led by equity and quantitative strategist Jill Carey Hall wrote Tuesday in research note.<\/p>\n
\u201cIs this running of the bulls with the S&P 500 and Nasdaq at record highs sustainable?\u201d said Craig Johnson at Piper Sandler. \u201cThe weight of the technical evidence suggests that breadth remains bullish and we would welcome \u2018healthy\u2019 pullbacks of less than 5% to add to positions.\u201d<\/p>\n
What Bloomberg Strategists say\u2026<\/p>\n
\u201cAn ugly start to US equity trading is far from across the board. The frothier tech and growth stocks are leading declines, but value stocks and defensive sectors are up on the day still. Coupled with the decline in bond yields, this looks like the market paring a little risk, perhaps ahead of Tesla and Alphabet earnings on Wednesday.\u201d \u2013 Sebastian Boyd, Macro Strategist, Markets Live.\u00a0<\/p>\n
For the full analysis, click here.<\/p>\n
Corporate Highlights:<\/p>\n
Microsoft Corp. accused Chinese state-sponsored hackers of using flaws in its SharePoint document management software in a hacking campaign that has targeted businesses and government agencies around the world.Hershey Co. is raising prices on its candy due to historically high cocoa costs.\u00a0OpenAI and Oracle Corp. announced they will develop 4.5 gigawatts of additional US data center capacity in an expanded partnership, furthering a massive plan to power artificial intelligence workloads.Lockheed Martin Corp., the world\u2019s largest defense contractor, reported earnings that missed analyst estimates, lowered its outlook for the year and racked up $1.6 billion in charges.Northrop Grumman Corp. raised its earnings guidance for the full year after getting a boost from its Sentinel ballistic missile and B-21 bomber programs.RTX Corp. lowered its full-year profit outlook as the company digests the impact of tariffs that have roiled the aerospace industry, even as strong demand boosts sales above Wall Street\u2019s expectations.General Motors Co. earned $2.53 per share on an adjusted basis, above the Bloomberg consensus forecast of $2.33 but short of the $3.06 it made a year ago. GM\u2019s profits also suffered from higher warranty costs and a buildup in inventory of electric vehicles.Coca-Cola Co. posted second-quarter sales growth that beat Wall Street expectations as consumers continue to pay higher prices for the company\u2019s soft drinks.Philip Morris International Inc.\u2019s shipments of its Zyn nicotine pouches accelerated by less than analysts had expected.Synovus Financial Corp., a regional bank in the southeastern US, is weighing options including a potential merger after drawing interest, people familiar with the matter said.Oscar Health Inc. slashed its guidance and reported preliminary results below Wall Street estimates, the latest health insurer to be rocked by trouble in Affordable Care Act marketplaces.Sarepta Therapeutics Inc. announced that the company plans to temporarily pause all shipments of its gene therapy to treat Duchenne muscular dystrophy, Elevidys, in a reversal of its prior stance.ASM International NV\u2019s second-quarter orders missed expectations due to lower bookings from its advanced logic\/foundry business segment.Nokia Oyj cut its profit guidance for the year, citing a weaker US dollar and tariffs.<\/p>\n
Some of the main moves in markets:<\/p>\n
Stocks<\/p>\n
The S&P 500 was little changed as of 2:23 p.m. New York timeThe Nasdaq 100 fell 0.5%The Dow Jones Industrial Average rose 0.3%The MSCI World Index was little changedBloomberg Magnificent 7 Total Return Index fell 0.5%The Russell 2000 Index rose 0.8%<\/p>\n
Currencies<\/p>\n
The Bloomberg Dollar Spot Index fell 0.4%The euro rose 0.4% to $1.1745The British pound rose 0.2% to $1.3523The Japanese yen rose 0.6% to 146.55 per dollar<\/p>\n
Cryptocurrencies<\/p>\n
Bitcoin rose 2.1% to $119,459.87Ether fell 1.6% to $3,699.24<\/p>\n
Bonds<\/p>\n
The yield on 10-year Treasuries declined five basis points to 4.33%Germany\u2019s 10-year yield declined two basis points to 2.59%Britain\u2019s 10-year yield declined three basis points to 4.57%<\/p>\n
Commodities<\/p>\n
West Texas Intermediate crude fell 1.3% to $66.30 a barrelSpot gold rose 1% to $3,430.26 an ounce<\/p>\n
\u00a92025 Bloomberg L.P.<\/p>\n","protected":false},"excerpt":{"rendered":"This content was published on July 22, 2025 – 20:24 (Bloomberg) \u2014 Wall Street traders gearing up for…\n","protected":false},"author":2,"featured_media":15288,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[456,84,10180,1868,10642,467,3356,10181,56,54,55],"class_list":{"0":"post-16190","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-bonds","9":"tag-business","10":"tag-business-general","11":"tag-currency-values","12":"tag-laws","13":"tag-markets","14":"tag-stocks","15":"tag-ticker","16":"tag-uk","17":"tag-united-kingdom","18":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/16190","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=16190"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/16190\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/15288"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=16190"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=16190"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=16190"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}