Market Performance Overview
The three major indices showed mixed trends today.
- The Dow Jones Index rose 0.4%. It gained about 179 points. It closed at 44,502.44. The index held its current level.
- The S&P 500 rose again, setting a new record high. It gained 0.06% to close at 6,309.6. Although it only climbed 4 points, the rally continues. This follows gains from the previous day.
- The Nasdaq instead saw some investor hesitation. This occurred ahead of upcoming earnings reports. Nvidia, in particular, was pressured today. It fell 0.39% to 2,892.69.
- The Russell 2000 gained 0.79%. Overall, the market’s momentum is slowing. However, there is no sign of a significant downturn yet.
- The volatility index, VIX, also subsided. It dropped 0.9% to 16.50. The Dollar Index traded slightly down. It closed at 97.39.
- Gold prices are steadily rising once more. It climbed 1.1% today. Gold now trades at $3,443.90 per troy ounce.
- Oil prices, however, fell 1.25%. West Texas Intermediate (WTI) crude is at $66.36 a barrel. Its price has been relatively flat this week.
- The 10-year Treasury yield fluctuated. This was due to uncertainty about Fed Chair Powell. It ultimately fell by 2.6 basis points. The yield now stands at 4.344%.
Cryptocurrency Market and Heatmap
The cryptocurrency market is holding up well. The price of Bitcoin rose 2%. It is now around the $119,000 level. It is awaiting a potential return to $120,000. Ethereum slightly reversed its recent trend. It fell about 1% to $3,696. Ripple also saw a slight decline. It dropped 0.25% to $3.5.
Market heatmaps look mostly positive today. A few stocks were exceptions. Nvidia and Microsoft were among them. The healthcare sector showed a strong rebound. This signals a move towards defensive stocks. Bank and payment stocks also performed well. Wells Fargo, for example, rose about 2%. Walmart gained 0.19%.
Macroeconomic and Political Drivers
President Trump made several new remarks. He announced a 19% tariff on trade with the Philippines. Indonesia also faces a new 19% tariff. This is slightly lower than the 20% tariff for Vietnam.
Market attention focused on his comments about Fed Chair Powell. Trump used derogatory terms. He called Powell “stupid.” He accused him of doing a terrible job. Trump also criticized the Fed’s building expansion. He called the $900 million cost politically motivated. He stated Powell would leave in 8 months anyway.
A Reuters report suggests a reduced role for SpaceX. This is for the Golden Missile defense project. The $175 billion project may see more involvement from Amazon. Other defense firms like Lockheed and Palantir are also in talks. This news followed a recent visit by Jeff Bezos to the White House.
China and Trade Tariff Negotiations
Trade-related discussions continue to evolve. Over the weekend, the US Commerce Secretary stated no extension was likely. However, another official hinted at some negotiation room. A third round of talks with China is scheduled. They will discuss a tariff deadline extension. The meeting is set for July 29-30 in Stockholm. Sweden’s Prime Minister confirmed the meeting.
The US may also pressure its allies. It is urging Europe to join new Russia sanctions. The goal is to gain concessions on tariffs.
Corporate Earnings and Key Sector News
Most sectors performed well today. The defense sector, however, lagged. Lockheed Martin fell 10%. RTX also dropped 1.58%. This was due to cost overruns and weak guidance.
Several companies reported earnings. General Motors (GM) fell 8%. Its earnings were not bad, but net income dropped 35%. The company stated tariffs cost it $1.1 billion. The GM CFO warned of higher costs in Q3. This led to market shock. GM may move some production to the US.
Hershey announced a price increase for chocolate. The cost of cocoa has doubled. Tariffs added an extra $20 million in costs. The company cited raw material burdens. Coca-Cola also faces raw material burdens. The switch to cane sugar would increase costs. This led to a stock drop of 0.59%. Its earnings were not outstanding. Philip Morris fell over 8%. Sales of its smoke-free products slowed. Its annual guidance was also weak.
Tech Giants and AI Developments
Apple rallied 0.9% today. This followed a Reuters report. The EU may accept Apple’s new App Store fee structure. Apple’s proposal would save it $80 million daily. This would help it comply with the DMA.
Microsoft fell 0.94%. The company acknowledged a recent security breach. It is disclosing details of the incident. Separately, Microsoft hired many top AI talents. These hires came from Google’s DeepMind. This shows a strong competition for AI talent. Softbank’s Vision Fund is reportedly having internal conflicts with OpenAI.
Automotive and Homebuilding Sectors
The homebuilding sector was unexpectedly strong. DR Horton soared 16.98%. Pulte Group rose over 11%. DR Horton’s new orders surged. This suggests a bottom in the housing market.
Tesla rose 1% today. However, concerns remain. Q2 registrations in California dropped 21% year-over-year. This suggests continued weak demand. The company’s new diner in LA was well-received. Its Q2 earnings report is expected after tomorrow’s market close.
Meme stock OpenDoor Technology fell 10%. Kohl’s, another meme stock, rose 37%. It has a very high short interest.
Looking Ahead: Key Events
Tomorrow, several major tech earnings are due. Alphabet, Tesla, IBM, and T-Mobile will report after the market closes. Other companies like AT&T and General Dynamics will also report. Data on housing sales and oil inventories will also be released. The 20-year bond auction will be held in the afternoon.
Disclaimer: This content is for informational purposes only and does not constitute financial advice. Consult a qualified financial advisor before making investment decisions.