logo
S&P, Nasdaq hit record highs amid optimistic earnings

S&P, Nasdaq hit record highs amid optimistic earnings

Miami Heralda day ago
July 21 (UPI) -- Two U.S. stock indexes -- Standard and Poor's 500 and Nasdaq 500 -- were trading at record highs during trading Monday as companies release earnings this week, though investors brace for U.S. tariff increases.
The S&P 500 hit an intra-day high of 6,335.79, or 0.6%, above the record 6,297.36 on Thursday. The tech-heavy Nasdaq reached 21,077.37, a rise of 0.7%, after a record 20,895.66 on Friday.
The Dow Jones Industrial Average reached 44,601.85, a climb of 0.6%, and off the record 45,073.63 on Dec. 4. The index's high this year was 45,008.75 on Jan. 30, 10 days after Donald Trump took office for his second term.
The indexes climbed on the strength of technology firms, including Alphabet, Meta and Apple, all of which rose at least 1%.
Earnings reports already have been strong.
Verizon's stock price climbed 5% after posting better-than-expected earnings and revenue. Of the 62 S&P companies that have reported, more than 85% beat expectations, according to FactSet data as reported by CNBC.
Earnings for the second quarter, which ended June 30, are tracking 5% over one year, according Bank of America.
Alphabet and Meta have yet to report.
"Rarely do you injure yourself falling out of a basement window," Sam Stovall, chief investment strategist at CFRA Research, said to CNBC. "With expectations so low in earnings, I think that the end result will end up being better than anticipated. That is encouraging for the market, as well."
Stoval said he believes the S&P could hit 6,600 before declining.
"A lot of the negativity has typically been shaken out of the market during these corrections, and now we're seeing articles about maybe the economy is not as bad as we thought it was, consumer confidence is on the mend and we're not seeing the inflation numbers be adversely affected by tariffs," he said. "Maybe it's just a matter of time before those things kick in, but at least for now, I think investors are saying, 'You know what, the market is indicating that it wants to go higher.'"
Dan Greenhaus at Solus Alternative Asset Management was more cautious. He told Bloomberg News: "Given the better-than-expected inflation and economic data -- not to mention corporate commentary which thus far has been pretty good -- I'm not sure I'd put too much stock in the technicals right now."
Stocks lately haven't been volatile, especially compared with April. Before trading this week, the S&P Index went 17 sessions without a move of more than 1% in each direction.
Trump threatened tariffs on the April 2 "Liberation Day" of across-the-board tariffs on most U.S. trading partners and much higher for offenders.
Indexes tumbled to lows this year and the bond market was battered. On April 8, the S&P was down 17.5% to 4,982.77, Nasdaq went into a bear market with a decline of 23.4% to 15,267.93 and DJIA off 15.4% 37,645.59.
Then a day later, Trump paused the reciprocal tariffs to July 9. Last week, Trump announced news figures on 25 countries, including 50% against Brazil, 35% on Canada, 30% against the 29 European Union nations, 30% on Mexico.
Deals have been reached with some nations, including Britain, China and Vietnam.
Looming is the Aug. 1 trade deadline for countries to begin paying higher tariffs. Commerce Secretary Howard Lutnick told CBS News' Face the Nation on Sunday it is a "hard deadline."
"That's gotten these countries to the table, and they are going to open their markets or they're going to pay the tariff," Lutnick said.
The U.S. economy has been in good shape as the U.S. unemployment fell to 4.1% in June. Consumer prices rose 2.7% over one year, up 2.4% from the previous month. Transportation services were up 3.4%, food at 3%, and uses and trucks as 2.8%, according to Trading Economies. Specifically, energy costs decline by a smaller margin than the previous month.
"I think you're going to see inflation stay right where it is," Lutnick said. "Americans can expect 'shockingly low' prices.
The federal fund rate remained at a target range of 4.25% to 3.5% after its the Federal Reserve's June 17 and 18 meetings.
The Fed's last rate change was a 25 basis point reduction on Dec. 18.
Trump has been pressuring Chairman Jerome Powell to lower the rates. But Powell is urging caution and said a reduction could spurt inflation and slow economic growth.
Copyright 2025 UPI News Corporation. All Rights Reserved.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

BOJ's Uchida warns of downside risks to economy on trade uncertainty
BOJ's Uchida warns of downside risks to economy on trade uncertainty

Yahoo

time8 minutes ago

  • Yahoo

BOJ's Uchida warns of downside risks to economy on trade uncertainty

By Leika Kihara KOCHI, Japan (Reuters) -Bank of Japan Deputy Governor Shinichi Uchida said on Wednesday that risks to economic activity and prices were skewed to the downside due to "extremely high" uncertainty over trade policy and its effect on domestic and overseas growth. The BOJ will continue to raise its policy interest rate if the economy and prices move in line with its projections, Uchida said in a speech. But Uchida said the central bank will scrutinise "without any preconceptions" whether its projections will materialise due to a lack of clarity on how U.S. trade policy unfolds, and affects the global economy and markets. If some progress is made in U.S. President Donald Trump's trade negotiations with other countries, Japanese companies will likely enjoy strong profits and continue hiking wages, he said. "But if the negative impact of tariff policies turns out to be greater or more prolonged than expected, the wage-hike trend seen in the past few years could weaken," Uchida said. "The BOJ needs to adjust monetary policy to best balance upside and downside risks from the perspective of maintaining economic and price stability," he added. Sign in to access your portfolio

BOJ's Deputy Chief Signals No Rush to Hike Rate After Trade Deal
BOJ's Deputy Chief Signals No Rush to Hike Rate After Trade Deal

Bloomberg

time9 minutes ago

  • Bloomberg

BOJ's Deputy Chief Signals No Rush to Hike Rate After Trade Deal

Bank of Japan Deputy Governor Shinichi Uchida indicated there's little immediate need to raise the benchmark interest rate in a speech delivered shortly after US President Donald Trump announced a trade deal with Japan. 'Under the premise that the outlook for economic activity and prices comes with uncertainty, the bank needs to adjust monetary policy to best balance the upside and downside risks from the perspective of maintaining stability in economic activity and prices,' Uchida said Wednesday in remarks to local business leaders in Kochi, southwestern Japan.

Trump sets 15% tariff on Japanese imports as part of investment agreement
Trump sets 15% tariff on Japanese imports as part of investment agreement

UPI

time11 minutes ago

  • UPI

Trump sets 15% tariff on Japanese imports as part of investment agreement

1 of 3 | President Donald Trump speaks to reporters Tuesday following a White House meeting with Philippine President Ferdinand Marcos Jr. Trump earlier announced trade deals with Japan and the Philippines that will prevent steep tariffs from taking hold. Photo by Yuri Gripas/UPI | License Photo July 22 (UPI) -- President Donald Trump announced Tuesday that his administration has reached a trade deal with Japan that will impose a 15% tariff rate on the large U.S.-trading partner, instead of the higher levy Trump threatened earlier. The announcement came in a Truth Social post a week before an Aug. 1 deadline imposed by Trump on 14 countries to reach trade agreements with the United States in order to avoid tariffs of at least 25% on most imported goods. Suggesting it was "the largest Deal ever made," Trump claimed that Japan will invest $550 billion in the United States under the president's direction that will create hundreds of thousands of jobs. Additionally, Trump said Japan agreed to "open their Country to Trade including Cars and Trucks, Rice and certain other Agricultural Products, and other things." "This is a very exciting time for the United States of America, and especially for the fact that we will continue to always have a great relationship with the Country of Japan," Trump said. The Japanese Ministry of Foreign Affairs had not issued a statement on the deal as of Tuesday evening. While Japan avoided the higher tariffs with the deal, the new 15% levy is a steep increase from its previous single-digit rates on imports to the United States. The prospects of 25% tariffs on imports to the United States rankled Japanese officials, and U.S. Commerce Secretary Howard Lutnick previously warned that the Aug. 1 deadline was firm. Trump announced earlier on Tuesday that the Philippines had reached a deal for 19% tariffs after a White House meeting with President Ferdinand Marcos Jr. A week earlier, Trump announced a similar deal with Indonesia.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store