Stock Market Update: Trade, Earnings, and More
US stocks rallied as the latest round of trade/tariff headlines were generally positive. The White House pushed out the August 1st deadline for new tariffs to give negotiators more time, and reports suggested that progress is being made in talks with the EU on a reciprocal 15% rate (vs. the current 50%). Treasury auctions also helped drive prices higher, with yields falling
In earnings news, a handful of big bank names could help set the tone for the rest of the season. Big banks have been on a strong run since late June, helped by a favorable yield curve and their ability to announce share buybacks and dividend raises. However, analyst expectations for overall S&P 500 earnings haven’t been raised much and are even lower in some cases.
Looking further out, the back-to-school and holiday seasons will likely get underway soon, which can influence consumer demand. Some data suggests consumers are accelerating purchases in order to avoid tariff-related price inflation. That may make the consumer discretionary sector less attractive, though Amazon’s (AMZN) Prime Day sales event this week should add some cheer. Other highlights this week include a third-quarter outlook from human resources software firm Workday (WDAY) and quarterly results from chipmaker Nvidia (NVDA). For a full list of upcoming events, see the Schwab Weekly Events Calendar.