Tesla, Alphabet highlight earnings rush as market hovers near record highs: What to know this week
The Nasdaq Composite led the gains last week, rising more than 1.6%. Meanwhile the S&P 500 popped about 0.7% while the Dow Jones Industrial Average (^DJI) was just above the flat line.
In the week ahead, 112 S&P 500 companies are set to report quarterly results. Reports from Alphabet (GOOGL, GOOG), Tesla (TSLA), and Chipotle (CMG) will be in focus.
Meanwhile, a quiet week of economic data releases will be highlighted by updates on activity in the services and manufacturing sectors as the Federal Reserve enters its blackout period ahead of its July 29-30 policy meeting.
Rate debate heats up
On Thursday, Fed governor Christopher Waller made his clearest call yet for an interest rate cut in July. During a speech in New York, Waller said the Fed should cut rates in July, adding that the federal funds rate is more than one full percentage point higher than it should be.
"With inflation near target and the upside risks to inflation limited, we should not wait until the labor market deteriorates before we cut the policy rate," Waller said.
However, recent moves in market pricing have shown investors growing less optimistic about rate cuts. Last week, signs of stickiness in consumer inflation combined with a stronger-than-expected June retail sales report and weekly unemployment filings pushed out interest rate cut bets.
As of Friday, markets were pricing in just a 5% chance that the Federal Open Market Committee would cut rates in July, per the CME FedWatch Tool. A month ago, markets had priced in closer to a 13% chance.
"We expect the committee to arrive at a consensus to cut rates in September as the hawkish case weakens with the job market loosening further and no signs of tariffs spilling over into a broader inflationary trend," Citi chief US economist Andrew Hollenhorst wrote in a note to clients on Friday.
Read more: How the Fed rate decision affects your bank accounts, loans, credit cards, and investments
Earnings scorecard
Big banks kicked off the second quarter earnings reporting period with a string of better-than-expected results. Netflix (NFLX) followed those up on Thursday night with an estimate-beating report. Both the streaming giant and the large financial banks said that the US consumer continues to hold strong.
On an aggregate level, the S&P 500 is now pacing to report earnings growth of 5.6% compared to the same quarter a year ago, per FactSet data. This is above the 4.8% analysts were expecting just last week.
Despite the strong reports, some stocks that had seen massive rallies heading into their reports saw a muted stock reaction in the trading session following their reports. For example, Netflix stock fell nearly 5% on Friday despite raising its full-year revenue guidance. Netflix stock had been up nearly 100% over the past year heading into the release.
"An overall 'good' set of results and guide were not good enough for elevated expectations, in our view," William Blair analyst Ralph Schackart wrote in a note titled "Good Quarter, but Tough to Surpass High Expectations."
With the broader market at record highs, weak stock reaction after solid earnings reports had been a concern among some Wall Street strategists heading into second quarter earnings.
"The challenge is valuation: after a 30% rally off the April lows, the market is trading at 24.7 [trailing twelve-month] earnings, leaving strong results, as Financials demonstrated to start the season, just enough to maintain market altitude while slight disappointments risk material pullbacks," Julian Emanuel, who leads the equity, derivatives, and quantitative strategy team at Evercore ISI, wrote in a note to clients on Friday.
Eyes on the 'broadening'
Alphabet and Tesla will kick off quarterly releases for the "Magnificent Seven" tech stocks. Once again, that cohort is expected to lead S&P 500 earnings growth this quarter.
The Magnificent Seven is expected to have grown earnings by 14.1% compared to the year prior during the second quarter. The other 493 stocks in the index are expected to have seen just 3.4% year-over-year earnings growth. That means the prospect of S&P earnings surprising to the upside largely hinges on Big Tech results.
But as the chart below shows, consensus is expecting the other 493 to begin driving a greater share of earnings growth over the next several quarters — a key call among Wall Street strategists hoping for a broadening of the stock market rally that has only come in spurts over the past several years.
"It's time for earnings to deliver," Citi strategist Scott Chronert wrote in a note to clients. "Commentary will be key if we hope to see further upside in revisions, and hopefully, some inflections in cyclical sector growth to finally drive broadening.
He added, "The issue is the setup. It feels like the market is moving ahead of positive developments. And as we continue to note, sentiment is elevated, and implicit growth expectations are high."
Weekly calendar
Monday
Economic data: Leading index of economic indicators, June (-0.2% expected, -0.1% previously)
Earnings: Cleveland-Cliffs (CLF), Domino's Pizza (DPZ), Steel Dynamics (STLD), Verizon (VZ)
Tuesday
Economic data: Richmond Fed manufacturing index, July (-4 expected, -7 previously)
Earnings: Capital One (COF), Coca-Cola (KO), DR Horton (DHI), Enphase Energy (ENPH), GM (GM), Lockheed Martin (LMT), Philip Morris International (PM), SAP (SAP), Texas Instruments (TXN)
Wednesday
Economic data: MBA mortgage applications, July 18 (-10% prior); Existing home sales month-over-month, June (-0.7% expected, +0.8% prior)
Earnings: Alphabet (GOOGL, GOOG), Tesla (TSLA), Chipotle (CMG), Alaska Airlines (ALK), AT&T (T), Fiserv (FI), Freeport-McMoran (FCX), GE Vernova (GEV), General Dynamics (GD), Hasbro (HAS), IBM (IBM), O'Reilly Automotive (ORLY), QuantumScape (QS)
Thursday
Economic data: Initial jobless claims, week ending July 19 (230,000 expected, 221,000 previously); Chicago Fed national activity index, June (-0.28 previously); S&P Global US manufacturing PMI, July preliminary (52.7 expected, 52.9 previously); S&P Global US services PMI, July preliminary (53.1 expected, 52.9 previously); S&P global US composite PMI, July preliminary (52.9 previously); New home sales, month over month, June (+4.3% expected, -13.7% previously)
Earnings: American Airlines (AAL), Blackstone (BX), Deckers (DECK), Dow (DOW), Honeywell (HON), Intel (INTC), Keurig Dr Pepper (KDP), Nasdaq (NDAQ), Nokia (NOK), Southwest Airlines (LUV), Union Pacific (UNP)
Friday
Economic data: Durable goods orders, June preliminary (-10.8% expected, +16.4% prior)
Earnings: Charter Communications (CHTR)
Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer.
Inicia sesión para acceder a tu portafolio
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
9 minutes ago
- Yahoo
I asked ChatGPT for Prompts To Find High-Income Side Gigs — Here are the 6 Best
For the past several years, the gig economy has been neck and neck with full-time work in the race to see where you can make the most money. However, with so many opportunities available — from rideshare driving to freelance writing — finding a great side gig that boosts your income without overwhelming your schedule is like finding a pot of gold. Luckily, ChatGPT has entered the… chat. Read Next: Find Out: With just a little strategizing, it doesn't seem to matter what your long-term job title is because you can just go where the extra money takes you or where artificial intelligence (AI) directs you. If you are ready to start raking in some extra dough, here are six specific and user-friendly ChatGPT prompts you can enter to find that high-paying side hustle you've been searching for. Prompt 1: 'Identify High-Income Skills Relevant to My Background' First, you should figure out what you're good at because you might have skills you've never thought to monetize. These can include everything from a data visualizer to social media management. Start by asking ChatGPT to identify high-income skills relevant to your educational background, work experience and hobbies. For instance: 'Can you identify high-income skills relevant to a degree in graphic design and a passion for digital art?' This prompt will help ChatGPT tailor its suggestions to your unique skill set, making the side gig search more personalized and effective. If you were a teacher, this would be the lesson plan stage of execution. Discover More: Prompt 2: 'List Remote Side Gigs for [Your Skill]' In today's digital age, remote work is not just a convenience; it's a game-changer. After identifying your high-income skills, you should ask ChatGPT for remote side gigs that match those skills. Replace '[Your Skill]' in the prompt with your specific talents, such as coding, writing or graphic design. For example: 'List remote side gigs for software developers with expertise in mobile app development.' This prompt will help you discover remote opportunities that fit your schedule and skill set, all from the comfort of your home. Prompt 3: 'How To Start Freelancing as a [Your Profession]' If you're new to the freelancing world, this prompt is for you. Replace '[Your Profession]' with your area of expertise to get tailored advice on launching your freelance career. For example: 'How to start freelancing as a digital marketer?' ChatGPT can provide a step-by-step guide on setting up your freelancing business, from creating a portfolio to finding your first clients. Prompt 4: 'Find Upcoming High-Paying Gig Economy Trends' Since staying ahead of the curve is key in the gig economy, consider asking ChatGPT about upcoming trends in high-paying gigs to find emerging opportunities before they become saturated. You can try writing: 'What are the upcoming high-paying gig economy trends in 2025?' This prompt can uncover new and potentially lucrative areas to explore, giving you a first-mover advantage. Prompt 5: 'Recommend Online Courses for Advancing in [Your Field]' Investing in yourself and your education is important for staying competitive. If you're looking to level up your skills, ask ChatGPT to recommend online courses in your field. For instance: 'Recommend online courses for advancing in digital marketing.' ChatGPT can suggest a variety of resources, from free online courses to comprehensive certification programs, to help you grow your skill set and increase your earning potential. Prompt 6: 'How To Network Online for [Your Side Gig]' Most successful people know that networking can be the key to unlocking some of the best opportunities. To find out how to expand your professional network online, try tailoring this prompt to your specific side gig or field. For example: 'How to network online for freelance graphic designers?' This prompt can lead you to strategies for building valuable connections in your field, from joining specialized online communities to attending virtual networking events. Final Take To GO: ChatGPT Can be a Money Maker The bottom line is that finding a high-income side gig might seem daunting, but with the right approach and resources like ChatGPT, it's entirely within your reach. It may seem counterintuitive to ask a robot thought-provoking questions to assist you on your career path, but ChatGPT does seem to be able to steer you toward areas where you can earn extra income. No matter if you work as a part-time project manager or produce social media content, chances are AI can help you find an income stream that suits your skills. There are many different career paths you can take if you are clear about your objectives. Use these prompts as a starting point to explore your options, enhance your skills and connect with opportunities that align with your career goals and lifestyle. More From GOBankingRates 7 Things You'll Be Happy You Downsized in Retirement This article originally appeared on I asked ChatGPT for Prompts To Find High-Income Side Gigs — Here are the 6 Best Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data


Bloomberg
9 minutes ago
- Bloomberg
Fed Will Keep Trump Waiting Amid a Wave of Global Rate Cuts
Donald Trump is struggling to get the Federal Reserve to cut interest rates, but policymakers around the world won't need so much convincing. The US president's tariff onslaught is likely to force further measured easing in coming months by most of the 23 central banks featured in this quarterly guide on the global monetary outlook, according to Bloomberg Economics.


CBS News
11 minutes ago
- CBS News
Philadelphia Phillies, reliever David Robertson reach agreement on deal, reports say
The Philadelphia Phillies and right-handed reliever David Robertson have agreed on a one-year deal, according to multiple reports on Sunday. The Athletic reports the Phillies will pay Robertson about $5.5 million on a pro-rated, one-year, $16 million contract. The deal will cost the Phillies approximately $12 million, including the 110% tax they have to pay on every dollar for being over the fourth luxury-tax threshold, according to The Athletic. This will be Robertson's third time he will play for the Phillies in his 16-year career. He signed a two-year deal with the Phillies before the 2019 season, but only played in seven games. He suffered an elbow injury that later required Tommy John surgery. Robertson was also with the Phillies in the 2022 season, where the team made a run to the World Series and lost against the Houston Astros. Robertson, 40, has yet to pitch in a game in the 2025 season. He last pitched in a game in the 2024 season in September with the Texas Rangers. Last season, Robertson had a 3.00 ERA in 68 games and had two saves. The Phillies have desperately needed help in the bullpen, and will likely make more moves to upgrade their pitching before the trade deadline on July 31. Philadelphia entered Sunday ranked 23rd in baseball in bullpen ERA. Earlier in the season, the Phillies lost key reliever José Alvarado when he was suspended for 80 games without pay after testing positive for a performance-enhancing substance.