The S&P 500 is up +0.27%, the Dow Jones Industrials Index is up +0.45%, and the Nasdaq 100 is down -0.17%. Trade news boosted market sentiment with a trade deal between the US and Japan. However, the Nasdaq 100 is under pressure due to weakness in auto-related chip makers. Mortgage applications rose +0.8%.
President Trump announced tariffs on imports from Japan at 15%, lower than previously announced rates. The deal includes Japan investing $550 billion in the US, purchasing Boeing aircraft, and increasing purchases of US rice. Tariffs on Canadian products will increase to 35% on August 1. Trade news is affecting stock markets.
Upcoming events include existing home sales, earnings from Alphabet and Tesla, weekly initial unemployment claims, and new home sales. Federal funds futures prices indicate a potential -25 bp rate cut at the July 29-30 FOMC meeting and 58% chance at the following meeting on September 16-17.
Corporate earnings results are in focus, with S&P 500 companies expected to report Q2 earnings this week. Lamb Weston Holdings, GE Vernova, Thermo Fisher Scientific, Lennox International, and TE Connectivity Plc are among the companies reporting positive results. Automotive and industrial chipmakers are facing weakness.
Overseas stock markets are higher, with Euro Stoxx 50 up +1.04%, China’s Shanghai Composite reaching a 9.5-month high, and Japan’s Nikkei Stock 225 rallying to a 1-year high. Interest rates are down, with 10-year T-notes retreating after the US-Japan trade deal announcement. European government bond yields are moving higher. Swaps indicate a 2% chance of a -25 bp rate cut by the ECB.
Stock movers include power producers climbing after predictions of increased spending on electricity supplies. Automotive and industrial chipmakers are facing weakness, with Texas Instruments down over -12%. Companies like Lamb Weston Holdings, GE Vernova, Thermo Fisher Scientific, and Lennox International are reporting positive results. Fiserv, Otis Worldwide, and Unity Software are down.
Earnings reports for 7/23/2025 include Alphabet Inc, AT&T Inc, Fiserv Inc, GE Vernova Inc, Hilton Worldwide Holdings Inc, Lennox International Inc, Otis Worldwide Corp, Tesla Inc, Thermo Fisher Scientific Inc, and more. Rich Asplund did not have positions in any securities mentioned. This information is for informational purposes only.
Read more at Yahoo Finance: Stocks Supported as US Announces a Trade Deal with Japan