Overview
Today's U.S. stock market saw a mixed performance as ongoing trade negotiations and a decline in tech stocks influenced investor sentiment. The S&P 500 Index, despite the tech sector's struggles, reached an all-time high due to a rotation into defensive stocks. More than 400 of the S&P 500's components closed in the green, even though the Dow Jones Industrial Average declined for the first time in seven days.
Corporate earnings were mixed, with Lockheed Martin's earnings falling short of expectations, causing its stock to drop 11%. General Motors reported $1.1 billion in losses due to tariff negotiations, resulting in an 8.1% decrease in its share price. Semiconductor stocks also faced pressure, accentuated by reports of challenges in a significant AI project involving SoftBank and OpenAI. Despite individual stock volatility, the overall earnings season has been positive, with 85% of S&P 500 companies surpassing expectations. Investors are watching closely for economic forecasts amidst uncertainty over tariffs and AI-related demand and supply.
| Nasdaq Composite | S&P 500 |
| Dow Jones Industrial Average | 1 South Korean won equals |
Major News Story
Trade uncertainties continue to play a pivotal role in the market. President Trump announced a trade agreement with the Philippines, while Canadian officials are seeking stability in relations with the U.S. Treasury Secretary Mnuchin plans to extend tariff discussions with China in next week's negotiations in Sacramento. Meanwhile, Federal Reserve policies remain a focal point with President Trump urging further cuts in interest rates.
Economic Indicators for Tomorrow
| Time | Event |
|---|---|
| 20:00 | U.S. MBA Mortgage Applications |
| 23:00 | U.S. June Existing Home Sales |
| 23:30 | U.S. API Crude Oil Stock |
| 02:00 | U.S. 20-Year Treasury Auction |
General Opinion
While the earnings season appears strong overall, market volatility remains due to macroeconomic uncertainties and tariff issues. Significant economic events and trade negotiation outcomes in early August may have pronounced impacts on the market's direction. Investors are adopting a wait-and-see approach as they anticipate the August 1st deadline for tariff decisions and key earnings reports from major companies.
