S&P 500 – 7,428.78 (+0.21%)

Dow Jones – 52,747.32 (+1.03%)

NASDAQ – 24,876.91 (-0.22%)

• MARKET RECOVERY: U.S. markets pushed higher Tuesday as strength across multiple sectors helped offset continued weakness in technology stocks. The major indexes recovered from early losses as investors balanced AI concerns with strong earnings momentum.
• CHIP STOCK PRESSURE: Semiconductor stocks remained under pressure as weakness carried over from Asian markets, where South Korea’s Kospi index plunged more than 10%. NVIDIA shares also declined after reports that the company was considering providing up to $250 billion in financing support for OpenAI’s massive data center expansion.
• BONDS & THE DOLLAR: Treasury markets saw some relief as yields moved lower, with the 10-year U.S. Treasury yield settling near 4.60%. The U.S. dollar also softened modestly against major currencies as investors monitored shifting rate expectations.
• OIL SLIDES: Energy markets extended their recent decline, with crude prices falling sharply. WTI crude dropped 4.1% to settle at $79.26 per barrel, while Brent crude fell 4.8% to $84.09 per barrel, marking a two-week low.
• CONSUMER CONFIDENCE FALLS: Consumer sentiment weakened in July as higher grocery and gasoline prices weighed on Americans’ outlook. The Conference Board’s confidence index dropped to 90.8 from June’s revised 92.2 reading, with expectations for jobs and income declining for the third straight month.
• EARNINGS STAY STRONG: Corporate results continue to provide market support, with roughly one-third of S&P 500 companies reporting so far. About 85% have exceeded analyst expectations, delivering an average upside surprise of 37%, while second-quarter earnings growth forecasts have climbed to 36%.
• FED WATCH: The Federal Reserve began its July policy meeting Tuesday, with markets expecting policymakers to keep interest rates unchanged at the current 3.5%–3.75% range. Investors will be watching closely for clues on the Fed’s next move.
• EARNINGS MOVERS: Coca-Cola delivered blockbuster second-quarter results, beating Wall Street expectations on both revenue and profit while raising its full-year outlook. Cadence Design Systems also gained after posting stronger-than-expected earnings and boosting guidance. Johnson & Johnson moved higher after agreeing to a $5.5 billion settlement related to talc lawsuits, while Hilton shares slipped despite beating estimates due to weaker forward guidance.
• CRYPTO CHECK: Bitcoin fell more than 2% Tuesday, trading near $63,000, its lowest level in 10 days. Strategy shares pulled back after jumping earlier in the week following comments from CEO Michael Saylor that the company had not sold bitcoin.
• APPLE’S NEW PAYMENT PLAY: Apple is changing how customers buy devices with a new iPhone leasing program through Klarna, offering consumers a lower monthly payment option while encouraging faster upgrades.
• VISA’S AI SHIFT: Visa announced plans to cut approximately 2,600 jobs as the company uses AI to improve efficiency and redirects resources toward growth areas like digital payments, cross-border transactions, and new financial services.
• LUCID GETS A BOOST: Lucid shares gained momentum after Saudi Prince Alwaleed acquired a 5% stake worth approximately $129.5 million, giving the EV maker a fresh vote of confidence as it works through its turnaround strategy.

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“Open Happiness.” — Coca-Cola

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Notable Stocks

• Intel Corp. (INTC)
• Apple (AAPL)
• Nvidia (NVDA)
• PayPal (PYPL)
• Coca Cola (KO)

Weekly Notables

Boeing Takes $280 Million Air Force One Hit 

Boeing reported a larger-than-expected second-quarter loss as costs tied to its delayed Air Force One program weighed on results, though the aerospace giant continued to see improvement across its broader business. Boeing recorded a $280 million charge related to the next-generation Air Force One aircraft program, which remains on track for its first delivery in 2028. CEO Kelly Ortberg said the company is increasing resources to ensure the project stays on schedule.

PayPal Surges as Earnings Beat Estimates While Takeover Speculation Remains in Focus

PayPal Holdings gained Tuesday after reporting stronger-than-expected second-quarter results and raising its full-year profit outlook under new CEO Enrique Lores, while investors continued watching speculation around a potential acquisition. PayPal reported adjusted earnings of $1.38 per share on revenue of $8.71 billion, beating Wall Street expectations of $1.28 per share on $8.47 billion in revenue. Total payment volume also exceeded estimates, rising 10% year over year to $486.4 billion.

Earnings Spotlight: Apple (AAPL)

Apple is scheduled to release its fiscal Q3 2026 earnings on Thursday, July 30, 2026, after the market closes, with Wall Street analysts expecting an earnings per share (EPS) of about $1.88 to $1.89 on revenue near $108 billion to $109 billion. 

What to Watch Ahead:

Investors are heading into a major week of earnings, with several members of the “Magnificent 7” set to report results. Meta Platforms and Microsoft are scheduled to release quarterly earnings Wednesday, followed by Amazon and Apple on Thursday.

Beyond headline earnings numbers, Wall Street will be closely watching capital spending plans and whether massive artificial intelligence investments are beginning to translate into meaningful revenue and profit growth.

July 29: Fed rate decision and expected earnings from Procter & Gamble (PG), Vertiv (VRT), General Dynamics (GD), Aon (AON), Microsoft (MSFT), Meta Platforms (META), Lam Research (LRCX), Arm Holdings (ARM), Qualcomm (QCOM), and Starbucks (SBUX).

July 30: Q2 GDP first estimate, June PCE prices, June core PCE prices, June personal spending and personal income, and expected earnings from Mastercard (MA), Shell (SHEL), Anheuser-Busch InBev (BUD), Bristol-Myers Squibb (BMY), Altria (MO), Southern (SO), Sanofi (SNY), Apple (AAPL), Amazon (AMZN), and Stryker (SYK).

July 31: University of Michigan final July consumer sentiment and expected earnings from ExxonMobil (XOM), AbbVie (ABBV), Chevron (CVX), Eaton (ETN), and Enbridge (ENB).

August 3:  ISM Manufacturing PMI® for July, and expected earnings from Marriott (MAR), Palantir (PLTR), Vertex Pharmaceuticals (VRTX), Williams Companies (WMB), ONEOK (OKE), and Diamondback Energy (FANG). 

August 4: Expected earnings from Caterpillar (CAT), Merck (MRK), Toyota (TM), McDonald's (MCD), Pfizer (PFE), BP (BP), Duke Energy (DUK), Cummins (CMI), Marathon Petroleum (MPC), Apollo Global Management (APO), Rockwell Automation (ROK), Space Exploration Technologies (SPCX), Advanced Micro Devices (AMD), Arista Networks (ANET), Amgen (AMGN), and Gilead Sciences (GILD).