Major Indexes Close in Positive Territory
The major U.S. stock indexes finished higher at today’s market close, continuing their upward momentum as investors digested a wave of corporate earnings and economic data. The Dow Jones Industrial Average (^DJI) rose 0.33% to 44,401.78, while the S&P 500 (^GSPC) gained 0.27% to 6,280.37. The tech-heavy Nasdaq Composite (^IXIC) led the way, climbing 0.43% to 20,819.28.
The markets are consolidating near record highs as traders navigate multiple catalysts, including quarterly earnings reports, economic indicators, and ongoing tensions between the White House and the Federal Reserve. Despite President Trump’s criticism of Fed Chair Jerome Powell, investors appear to have moved past concerns about Powell’s potential ousting, focusing instead on corporate performance and economic resilience.
Economic Data Shows Resilient Consumer
Thursday’s economic releases painted a picture of a robust U.S. economy. Retail sales rebounded in June, rising 0.6% from May and 3.5% year-over-year, significantly beating economists’ expectations of a 0.2% monthly increase. This strong performance suggests that Trump’s tariffs have not yet significantly impacted consumer spending habits.
The labor market also continues to show strength, with weekly jobless claims falling to 221,000 for the week ending July 12, a decrease of 7,000 from the previous week’s revised level. This marks the lowest level of unemployment claims in three months, further supporting the narrative of economic resilience.
Earnings Season Gains Momentum
The second-quarter earnings season is off to a strong start, with more than 45 S&P 500 companies having reported thus far. An impressive 87% of these companies have exceeded analyst expectations, according to FactSet data.
Taiwan Semiconductor Manufacturing Company (TSM) was among today’s standout performers, rising 2.36% after posting a record quarterly profit and raising its growth outlook amid booming AI demand. The chipmaker cited “stronger and stronger AI demand” as a key driver of its results, boosting confidence in the strength of artificial intelligence spending.
PepsiCo (PEP) shares surged 6.82% after the beverage and snack giant reported better-than-expected quarterly results, with adjusted earnings of $2.12 per share on revenues of $22.73 billion, exceeding analyst projections.
Notable Stock Movers at the Market Close
Lucid Group (LCID) was the day’s biggest gainer among major stocks, soaring 33.19% after announcing a partnership with Uber and Nuro to launch a robotaxi fleet. The deal reportedly involves Uber purchasing 20,000 self-driving taxis from the electric vehicle manufacturer, representing a significant commercial breakthrough for Lucid.
Other notable gainers included Sarepta Therapeutics (SRPT), which jumped 22.30% after announcing a “strategic restructuring” plan involving a 36% workforce reduction, and Pagaya Technologies (PGY), which climbed 22.01%.
On the downside, Elevance Health (ELV) was the biggest loser among major stocks, falling 13.05%. Abbott Laboratories (ABT) also struggled, dropping 8.46% despite the generally positive market sentiment.
Tech Sector Continues to Lead
Technology stocks continued their strong performance, with the sector up 1.29% for the week, making it the best-performing sector during this period.
Michael Green, strategist at Simplify Asset Management, noted that investors are likely to continue focusing on upcoming earnings reports as the market’s most important catalyst. “I would be very surprised if we don’t get relatively positive reports out of the tech leaders,” Green said, adding that this suggests “the markets are going to experience some relief associated with earnings season not being as bad as people think.”
Netflix Earnings on Deck
All eyes are now on Netflix (NFLX), which is set to report its second-quarter earnings after today’s closing bell, kicking off this season’s Big Tech earnings reports. The streaming giant’s shares have been on a tear so far this year, up more than 40% year-to-date.
Analysts are expecting Netflix to deliver quarterly earnings of $7.07 per share, reflecting a nearly 45% improvement compared to the same quarter last year. Projected revenues of $11.06 billion would mark a 15.7% jump versus the year-ago period. The company has beaten earnings estimates in each of the past four quarters, boasting a 6.94% average earnings surprise over that timeframe.
Looking Ahead: Market Catalysts
As markets today close near all-time highs, investors continue to navigate a complex landscape of factors including earnings reports, economic data, Trump’s tariffs, and tensions between the White House and the Federal Reserve.
Brian Mulberry of Zacks Investment Management commented on Netflix’s valuation ahead of its earnings report, noting that “the valuation is a little bit rich, but it’s one of the few places showing strong earnings growth into 2027.”
With the earnings season gaining momentum and economic indicators suggesting continued resilience, market participants will be closely watching for signs of how corporate America is adapting to the current economic and political environment at the closing bell of each trading day in the weeks ahead.
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.