US stocks end up, with Nasdaq and S&P 500 reaching records, on earnings and economic data
U.S. stocks closed higher, with the tech-heavy Nasdaq and broad S&P 500 reaching record highs, on strong earnings reports and economic data.
So far, about 50 S&P 500 companies have reported results, with 88% of those exceeding analysts’ expectations, according to FactSet data.
Streaming company Netflix's results in the first three months of its fiscal year topped analysts' estimates. The company also raised its full-year sales outlook due to the weakening of the U.S. dollar compared to other currencies, as well as “healthy” member growth and ad sales. However, shares fell more than 1% in after-hours trade.
In economic data news, weekly jobless claims fell by 7,000 to 221,000 in the week ending July 12. A Reuters survey of economists forecast 235,000 new claims.
Retail sales also rebounded from a weak May. June retail sales rose 0.6%, beating the 0.2% estimate from the Dow Jones consensus. In May, retail sales fell more than expected.
The strong retail sales report shows "the American shopper is alive and well — and that matters for markets," said Gina Bolvin, president of Bolvin Wealth Management Group. "Strong retail sales are like oxygen for the economy, and Wall Street is breathing a sigh of relief today."
The blue-chip Dow rose 0.52%, or 229.71 points to 44,484.49, the S&P 500 added 0.54%, or 33.66 points, to 6,297.36, and the Nasdaq gained 0.74%, or 153.78 points, to 20,884.27. The benchmark 10-year yield dipped to 4.453%.
Investors also will continue to keep an eye on President Donald Trump's feud with Federal Reserve Chair Jerome Powell and tariffs. Trump has threatened a 10% to 15% unilateral tariff against more than 150 countries.
Trump also told Real America's Voice earlier in the week that the U.S. is close to a deal with India and may soon reach an agreement with Europe.
Late in the day, Congress passed a bill to regulate stablecoins. The bill heads to the president to sign into law.
Corporate news
- United Airlines missed second-quarter revenue estimates and lowered its annual earnings per share forecast. The airline's stock rose 3.11%.
- Sarepta Therapeutics announced a “strategic restructuring” plan that includes a 36% workforce reduction, or around 500 employees. Shares jumped 19.59%.
- Monarch Casino & Resort reported an increase in second-quarter earnings from a year ago. Shares soared 20%.
- Elevance Health reported a second-quarter earnings per share miss but sales topped forecasts. It also cut its 2025 profit projection, citing industry-wide cost increases related to the Affordable Care Act and Medicaid. Shares tumbled more than 12%.
- Walmart is cutting hundreds of store-support and training jobs at Walmart Academy, according to Bloomberg, citing a memo. Shares of the discount retailer dipped.
- PepsiCo's second-quarter results topped estimates. The snacks and beverage company reiterated its full-year outlook. The stock added 7.45%.
- TSMC's quarterly results beat analysts' forecasts, with profit jumping from a year ago to a record high. Shares rose 3.34%.
- Shares of ADM and Ingredion, makers of corn syrup, came under pressure after Trump said Coca-Cola is switching to cane sugar. ADM stock dropped almost 1% while Ingredion shed 0.61%.
Cryptocurrency
Coinbase unveiled "Base App," or an “everything app” that combines social networking, mini-apps, chat, payments, and trading. It all runs on the company's public blockchain network, Base.
In a win for the crypto industry, the House on July 17 passed a bill regulating stablecoins and a bill outlining rules for crypto exchanges and brokers. The stablecoin bill goes to the president's desk for signing into law, while the other bill goes to the Senate for its approval.
Bitcoin was last up 0.04% at $118,770.30.
(This story was updated with new information.)
Medora Lee is a money, markets, and personal finance reporter at Paste BN. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.