S&P 500, Nasdaq move higher after mixed earnings; Dow lags
At 9:46 a.m. ET, the S&P 500 (.SPX), opens new tab gained 10.62 points, or 0.17%, to 6,369.85 and the Nasdaq Composite (.IXIC), opens new tab gained 66.26 points, or 0.33%, to 21,086.27.
Alphabet (GOOGL.O), opens new tab rose 1.9% after the Google parent raised its 2025 capital spending forecast by $10 billion to $85 billion, shrugging off trade jitters, while electric vehicle maker Tesla (TSLA.O), opens new tab tumbled 7.6% as CEO Elon Musk warned of "a few rough quarters" due to cuts in EV incentives.
Losses in UnitedHealth (UNH.N), opens new tab, IBM (IBM.N), opens new tab and Honeywell weighed on the blue-chip Dow (.DJI), opens new tab, which fell 0.6% -though it remained close to its December 4 record high.
UnitedHealth lost 2.3%. The insurer revealed it's cooperating with a Department of Justice probe into its Medicare practices, following reports of both criminal and civil investigations.
IBM sank 9.5% as its second-quarter results fell flat with investors, hampered by disappointing sales in its core software division.
Honeywell, meanwhile, dipped 5.2% despite topping Wall Street's expectations and raising its annual outlook.
On the trade front, an EU spokesperson hinted that a deal was "within reach"—one that could slap a broad 15% tariff on imports across the 27-member bloc, according to diplomats.
Meanwhile, fresh signs of progress emerged after President Donald Trump struck an agreement with Japan, slicing tariffs on Japanese goods to 15%. China and South Korea are also scrambling to clinch their own deals and sidestep Trump's hefty duties.
Yet, some of Wall Street's heavyweights were starting to feel the sting of Trump's sweeping tariffs, injecting a dose of caution into the market mood.
American Airlines (AAL.O), opens new tab fell 9.2% after forecasting a bigger-than-expected third-quarter loss, hurt by sluggish domestic travel demand.
Shares of ServiceNow (NOW.N), opens new tab rose 5.5% after the software firm raised its annual subscription revenue forecast.
Markets were also monitoring developments after the White House surprised investors that Trump - fresh from stepping up his criticism of Federal Reserve Chair Jerome Powell - would pay a visit to the U.S. central bank's headquarters later in the day.
With the Fed widely expected to hold rates steady at next week's meeting, traders are now pricing in a 62% chance of a September rate cut, according to CME's FedWatch tool.
The latest Labor Department report showed weekly jobless claims fell to 217,000—well below estimates—signaling continued resilience in the U.S. job market.
"It (data) is a good guide for the health of the economy and this week's jobless claims show that the economy is ticking along just nicely," said Neil Birrell, chief investment officer at Premier Miton Investors.
U.S. business activity gained momentum in July, but companies hiked prices on goods and services—a move that's fueling economists' predictions of faster inflation in the months ahead, largely driven by rising import tariffs
Declining issues outnumbered advancers by a 2.05-to-1 ratio on the NYSE and by a 1.63-to-1 ratio on the Nasdaq.
The S&P 500 posted 21 new 52-week highs and two new lows, while the Nasdaq Composite recorded 40 new highs and 13 new lows.
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Reuters
29 minutes ago
- Reuters
Investors cautiously welcome US-Europe trade deal
NEW YORK, July 27 (Reuters) - Investors cautiously embraced news of a trade deal Sunday between the U.S. and European Union, a move that is expected to bring clarity for companies and some certainty to markets ahead of Friday's tariffs deadline. U.S. President Donald Trump announced the United States has struck a framework trade deal with Europe. The deal includes a 15% tariff on EU goods entering the U.S. and significant EU purchases of U.S. energy and military equipment. "It's really in line with the Japan deal, and I assume investors will view it positively as they viewed the Japan deal," said Rick Meckler, partner at Cherry Lance Investments in New Vernon, New Jersey. Optimism over easing trade tensions broadly helped push U.S. stocks to record highs last week and lifted European shares to their highest since early June. Trump's April 2 "Liberation Day" announcement of sweeping global tariffs sent stocks plunging in the immediate aftermath, due to spiking fears about a recession that have since faded. Hopes for a deal with Europe were reinforced by Trump striking a trade agreement with Japan on July 23. Still, investors have been bracing for increased volatility heading into August 1, which the U.S. has set as a deadline for raising levies on a broad swath of trading partners. "The two obvious reactions that you would expect are upside in the euro and upside in equity futures. I don't think equities in particular needed much of an excuse to rally and now they've got one," said Michael Brown, senior research strategist at Pepperstone in London. The announcement came after European Commission President Ursula von der Leyen traveled to Scotland for talks with Trump to push a hard-fought deal over the line. In the agreement with Japan, the country's auto sector, which accounts for more than a quarter of its U.S. exports, will see existing tariffs cut to 15% from levies totaling 27.5% previously.
Daily Mail
an hour ago
- Daily Mail
Trump announces 'very powerful deal' with the EU
Published: Updated: President Donald Trump announced he had reached a 'very powerful' trade deal with the European Union that would lower barriers to U.S. exports and bring new European investments into the U.S. Trump called it 'a very powerful deal' as well as 'a very big deal. It's the biggest of all the deals.' He also called it 'the biggest deal ever made.' Speaking from his Turnberry golf course, Trump said European Union countries would purchase $750 billion of energy from the U.S. and provide an additional $600 billion in U.S. investments. 'All of the countries will be opened up to trade with the United States at zero tariff, and they're agreeing to purchase a vast amount of military equipment,' Trump added. 'We don't know what that number is.' It came after Trump inveighed against 'one-sided' trade with Europe as he sat down at his Turnberry golf course with the EU Commission president, while raging against windmills and saying there were prospects for reaching a deal imminently. 'We wanted to rebalance the trade relations,' said EU Commission Chair Ursula von der Leyen, confirming the agreement while sitting alongside Trump. Trump flashed his anger when a reporter asked if turmoil over the Jeffrey Epstein story had contributed to the rush to get the deal done. 'Oh, you've got to be kidding. No – had nothing to do with it. Only you would make that. That had nothing to do with it,' Trump responded. Both leaders made nice – after the 'Liberation Day' tariffs Trump rolled out in April threatened to cleave the powerful allies. Trump had more recently threatened a 30 percent tariff on the EU – providing an incentive to negotiate it down. Trump, upon arriving here in Scotland, said the powerful trade bloc must 'buy down' the number. 'Basically the European market is open,' said von der Leyen. 'It's 450 million people, so it's a good deal. It's a huge deal. Was tough negotiations. I knew it at the beginning, and it was indeed very tough, but we came to a good conclusion from both sides,' she said. The number comports with what had already been floated. 'We are agreeing that the tariff straight across for automobiles and everything else' would be 15 percent, said Trump. The agreement – with details still to be revealed – comes after Trump announced other agreements with Japan and other nations, while firing off a series of trade 'letters' announcing new tariffs he is imposing on other nations. Japan, too, would face a 15 percent rate on its auto exports to the U.S. After many economists warned that Trump's tariffs could break the alliance, the two leaders proclaimed new cooperation after they had agreed to broad terms. 'This deal will bring us very close together actually. It's a partnership in a sense,' Trump said. The progress came about an hour after Trump complained about the trade relationship. 'It's been a very one-sided transaction – very unfair to the United States,' he complained alongside von der Leyen, keeping her hands in her lap and her expressions muted. 'It's been a very, very one-sided deal, and it shouldn't be,' Trump fumed. He said a deal, if it can be reached, would be the biggest deal 'ever struck by anybody.' 'This is the biggest deal. People don't realize – this is bigger than any other deal. And it could happen – should happen,' he said. Fielding questions at a press event that put the 'working' in what his team calls a 'working visit,' Trump went off on a number of topics. His attacks quickly changed to wind turbines he said obstruct the view from his Scottish golf course. 'It ruins the landscape. It kills the birds. They're noisy,' Trump complained. He said what he terms windmills in Massachusetts were 'driving them loco – driving them crazy.' 'Today I'm playing the best course, I think, in the world: Turnberry ... And I look over the horizon and I see nine windmills. I say isn't that a shame,' he said. On immigration, another tension point, Trump said: 'We've sealed our borders. We have nobody coming in ... I think they're going to end up in the same place. You might as well go there quicker.' Von der Leyen shared his assessment on the chance of reaching an agreement, putting it at 50 percent. Trump got asked at one point if he could do better than 15 percent – the amount of a tariff on European imports that has been floated as a potential final number in an agreement. 'Better meaning lower? No,' Trump said flatly. But the former German politician showed some give in her own remarks and kept her composure even as Trump tore into European policies on trade, energy, and immigration.
The Independent
an hour ago
- The Independent
Donald Trump announces trade agreement with the European Union
Donald Trump announced a trade agreement with the European Union. The agreement will cut tariff rates on imports from the EU to 15 per cent. Conversely, US exports to the EU will become tariff-free under the new arrangement. Trump made the announcement alongside European Commission president Ursula von der Leyen at his Turnberry golf course in Scotland. Further details regarding the agreement were not immediately released by the White House.
