Stocks Set For Fresh Record In Busy Earnings Week: Markets Wrap

The start of a busy week for corporate earnings sent stocks toward a fresh record, with traders looking for signs of resilience amid tariff risks. Treasury yields and the dollar fell. The yen climbed as Japan’s Prime Minister Shigeru Ishiba said he would carry on after an election setback.

In the absence of relevant economic data, Wall Street will remain squarely focused on company outlooks. The S&P 500 topped 6,300. Two members of the “Magnificent Seven” megacaps — Tesla Inc. and Google parent Alphabet Inc. — are due to report results this week. The stakes will again be high as traders look for an update on artificial-intelligence spending.

Investors will also keep a close eye on tariff headlines. European Union and US negotiators are heading into another week of intensive talks, as they seek to clinch a trade deal by Aug. 1, when US President Donald Trump has threatened to hit most EU exports with 30% tariffs.

To Matt Maley at Miller Tabak, it is becoming more evident that the Trump Administration is going to be tougher on the tariff issue going forward. So, it’s important to decide whether this is something the stock market is pricing in right now.

“Earnings season will move into full swing this week, and the guidance will be more important than usual,” he said. “This guidance is going to have create a very large increase in earnings estimates if the market is going to reach some of the targets that exist on Wall Street right now.”

The second-quarter earnings season is off to a ripping start, with consumer strength powering resilient corporate profits. Yet after hitting a series of all-time highs, the S&P 500 is trading at 22 times expected 12-month profits, leaving little room for error.

“While stocks may be due for a breather, we believe the bull market remains intact,” said Ulrike Hoffmann-Burchardi at UBS Global Wealth Management. “We maintain our June 2026 S&P 500 price target of 6,500, and recommend using volatility as an opportunity to phase into markets.”

Within US equities, she likes information technology, communication services, financials, health care, and utilities.

Corporate Highlights:

Microsoft Corp. warned that hackers are actively targeting customers of its document management software SharePoint, with security researchers flagging the risk of potentially widespread breaches around the world.
Verizon Communications Inc. posted second-quarter revenue that surpassed analysts’ estimates and raised its profit outlook, buoyed by wireless price increases and recent tax legislation.
Sarepta Therapeutics Inc. has refused to pause all shipments of its Elevidys treatment after three deaths were linked to the company’s gene therapies, the Food and Drug Administration said Friday.
Figma Inc. and some of its investors are seeking to raise as much as $1.03 billion in a US initial public offering, as the app design and collaboration software company readies what could be one of the biggest listings of the year.
Elliott Investment Management has built up its stake in Equinix Inc. and is pushing the data center operator to take steps to boost its share price, people with knowledge of the matter said.
GE Vernova Inc. is acquiring French software company Alteia SAS as the maker of power generation equipment looks to use artificial intelligence for ways to strengthen the electric grid.

Some of the main moves in markets:

Stocks