Major Indexes Continue Upward Momentum on Strong Earnings
Major U.S. stock indexes are pointing to a modestly higher open on Friday, July 18, 2025, as markets digest a wave of corporate earnings reports that have largely exceeded expectations. The S&P 500 futures are up 0.14%, Nasdaq 100 futures have gained 0.13%, and Dow Jones Industrial Average futures are higher by 0.10%, following Thursday’s session where the S&P 500 and Nasdaq Composite both closed at record highs.
Thursday’s market rally was fueled by optimistic retail sales data and better-than-expected jobless claims, signaling continued strength in the U.S. economy despite ongoing concerns about potential tariffs. The S&P 500 finished 0.5% higher on Thursday, while the Nasdaq Composite gained about 0.7%, both reaching fresh intraday and closing records. The Dow climbed 0.5%.
For the week, the major indexes are on track for solid gains, with the S&P 500 up 0.6%, the Dow advancing 0.3%, and the Nasdaq outperforming with a 1.5% increase through Thursday’s close.
Financial Giants Report Strong Q2 Results
Several major financial companies reported earnings before the market open on Friday, with most exceeding analyst expectations.
American Express (AXP) shares are trading higher after the company reported second-quarter earnings per share of $4.08, well above the $3.87 expected by analysts. Revenue came in at $17.86 billion, surpassing estimates of $17.71 billion. The credit card giant reaffirmed its full-year EPS guidance of $15.00 to $15.50 per share and maintained its revenue growth forecast of 8% to 10% year-over-year, indicating continued confidence in consumer spending trends.
Charles Schwab (SCHW) reported a 60% increase in quarterly profits compared to the same period last year, benefiting from increased trading activity related to President Trump’s tariff announcements. The brokerage firm posted Q2 earnings per share of $1.09, beating the consensus estimate of $1.09.
3M Company (MMM) shares jumped over 2% in premarket trading after the industrial giant raised its full-year profit forecast and reported better-than-expected quarterly results. The maker of Scotch tape and Post-it Notes posted adjusted earnings of $2.16 per share on revenue of $6.16 billion, both exceeding analyst estimates. 3M now projects full-year adjusted profits between $7.75 and $8.00 per share, up from its previous forecast of $7.60 to $7.90. Notably, the company also reduced its projected tariff impact to $0.10 per share for 2025, down from its earlier estimate of $0.20 to $0.40.
Netflix Results Fail to Impress Despite Strong Numbers
Netflix (NFLX) reported second-quarter results that beat expectations on both the top and bottom lines after market close on Thursday, but the stock fell slightly in premarket trading. The streaming giant raised its full-year revenue guidance but failed to excite investors who were looking for more impressive margin improvements.
According to Bloomberg Intelligence senior media analyst Geetha Ranganathan, “It was a really solid print. The big thing that investors were really focused on was commentary for the rest of the year, and they delivered there as well.” However, she noted that while the operating margin was solid at 29.5% (up from the previously forecast 29%), investors were hoping for something in the 30-31% range.
Netflix’s success was partly driven by the popularity of shows like “Squid Game,” but the stock’s premium valuation may have set expectations too high for even strong results to satisfy investors.
Premarket Movers to Watch
Beyond the major earnings reports, several stocks are making significant moves in premarket trading:
– Telomir Pharmaceuticals (TELO) is up a staggering 180.99% at $3.40
– Blaize Holdings (BZAI) has gained 68.65% to $5.11
– Expion360 (XPON) is up 50.96% to $1.57
– Lucid Group (LCID) is surging 36.24% in active trading
– QuantumScape (QS) has jumped 19.82% to $13.60
On the downside:
– LQR House (YHC) has plummeted 62.25% to $2.48
– Northern Dynasty Minerals (NAK) is down 33.74% to $1.08
– Sarepta Therapeutics (SRPT) has fallen 18.34% to $17.94
Economic Data and Upcoming Events
The latest housing data released Friday morning showed some improvement in the construction sector. Housing starts in June totaled a seasonally adjusted annual rate of 1.32 million, up 4.6% from May and slightly better than the 1.3 million estimate. Building permits came in at just under 1.4 million, up 0.2% monthly and ahead of the 1.39 million estimate. However, housing completions slumped, totaling 1.31 million, which was down 14.7% from the previous month and 21.4% from a year ago.
Investors continue to monitor developments related to potential tariffs, with President Trump’s August 1 tariff deadline approaching. Despite these concerns, strong economic data has reinforced confidence in the U.S. economy’s resilience.
Market Outlook
As the second-quarter earnings season progresses, initial results have been largely positive, with many companies beating expectations. According to FactSet data published earlier this month, analysts expect S&P 500 companies to report a 5% jump in earnings per share during the second quarter.
Keith Lerner, co-chief investment officer and chief market strategist at Truist, commented on CNBC’s “Closing Bell” that “this market deserves the benefit of the doubt, and what got you here is still the growth sectors. We would stick with the underlying trend, which still seems positive in our world.”
With more earnings reports scheduled in the coming weeks, particularly from major technology companies, investors will be closely watching for additional insights into the health of the U.S. economy and any potential impacts from Trump’s proposed tariffs.
Major Indexes Continue Upward Momentum on Strong Earnings
Major U.S. stock indexes are pointing to a modestly higher open on Friday, July 18, 2025, as markets digest a wave of corporate earnings reports that have largely exceeded expectations. The S&P 500 futures are up 0.14%, Nasdaq 100 futures have gained 0.13%, and Dow Jones Industrial Average futures are higher by 0.10%, following Thursday’s session where the S&P 500 and Nasdaq Composite both closed at record highs.
Thursday’s market rally was fueled by optimistic retail sales data and better-than-expected jobless claims, signaling continued strength in the U.S. economy despite ongoing concerns about potential tariffs. The S&P 500 finished 0.5% higher on Thursday, while the Nasdaq Composite gained about 0.7%, both reaching fresh intraday and closing records. The Dow climbed 0.5%.
For the week, the major indexes are on track for solid gains, with the S&P 500 up 0.6%, the Dow advancing 0.3%, and the Nasdaq outperforming with a 1.5% increase through Thursday’s close.
Financial Giants Report Strong Q2 Results
Several major financial companies reported earnings before the market open on Friday, with most exceeding analyst expectations.
American Express (AXP) shares are trading higher after the company reported second-quarter earnings per share of $4.08, well above the $3.87 expected by analysts. Revenue came in at $17.86 billion, surpassing estimates of $17.71 billion. The credit card giant reaffirmed its full-year EPS guidance of $15.00 to $15.50 per share and maintained its revenue growth forecast of 8% to 10% year-over-year, indicating continued confidence in consumer spending trends.
Charles Schwab (SCHW) reported a 60% increase in quarterly profits compared to the same period last year, benefiting from increased trading activity related to President Trump’s tariff announcements. The brokerage firm posted Q2 earnings per share of $1.09, beating the consensus estimate of $1.09.
3M Company (MMM) shares jumped over 2% in premarket trading after the industrial giant raised its full-year profit forecast and reported better-than-expected quarterly results. The maker of Scotch tape and Post-it Notes posted adjusted earnings of $2.16 per share on revenue of $6.16 billion, both exceeding analyst estimates. 3M now projects full-year adjusted profits between $7.75 and $8.00 per share, up from its previous forecast of $7.60 to $7.90. Notably, the company also reduced its projected tariff impact to $0.10 per share for 2025, down from its earlier estimate of $0.20 to $0.40.
Netflix Results Fail to Impress Despite Strong Numbers
Netflix (NFLX) reported second-quarter results that beat expectations on both the top and bottom lines after market close on Thursday, but the stock fell slightly in premarket trading. The streaming giant raised its full-year revenue guidance but failed to excite investors who were looking for more impressive margin improvements.
According to Bloomberg Intelligence senior media analyst Geetha Ranganathan, “It was a really solid print. The big thing that investors were really focused on was commentary for the rest of the year, and they delivered there as well.” However, she noted that while the operating margin was solid at 29.5% (up from the previously forecast 29%), investors were hoping for something in the 30-31% range.
Netflix’s success was partly driven by the popularity of shows like “Squid Game,” but the stock’s premium valuation may have set expectations too high for even strong results to satisfy investors.
Premarket Movers to Watch
Beyond the major earnings reports, several stocks are making significant moves in premarket trading:
– Telomir Pharmaceuticals (TELO) is up a staggering 180.99% at $3.40
– Blaize Holdings (BZAI) has gained 68.65% to $5.11
– Expion360 (XPON) is up 50.96% to $1.57
– Lucid Group (LCID) is surging 36.24% in active trading
– QuantumScape (QS) has jumped 19.82% to $13.60
On the downside:
– LQR House (YHC) has plummeted 62.25% to $2.48
– Northern Dynasty Minerals (NAK) is down 33.74% to $1.08
– Sarepta Therapeutics (SRPT) has fallen 18.34% to $17.94
Economic Data and Upcoming Events
The latest housing data released Friday morning showed some improvement in the construction sector. Housing starts in June totaled a seasonally adjusted annual rate of 1.32 million, up 4.6% from May and slightly better than the 1.3 million estimate. Building permits came in at just under 1.4 million, up 0.2% monthly and ahead of the 1.39 million estimate. However, housing completions slumped, totaling 1.31 million, which was down 14.7% from the previous month and 21.4% from a year ago.
Investors continue to monitor developments related to potential tariffs, with President Trump’s August 1 tariff deadline approaching. Despite these concerns, strong economic data has reinforced confidence in the U.S. economy’s resilience.
Market Outlook
As the second-quarter earnings season progresses, initial results have been largely positive, with many companies beating expectations. According to FactSet data published earlier this month, analysts expect S&P 500 companies to report a 5% jump in earnings per share during the second quarter.
Keith Lerner, co-chief investment officer and chief market strategist at Truist, commented on CNBC’s “Closing Bell” that “this market deserves the benefit of the doubt, and what got you here is still the growth sectors. We would stick with the underlying trend, which still seems positive in our world.”
With more earnings reports scheduled in the coming weeks, particularly from major technology companies, investors will be closely watching for additional insights into the health of the U.S. economy and any potential impacts from Trump’s proposed tariffs.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.