📈 U.S. Stocks Climb Amid Trade Optimism and Anticipation for Tesla, Alphabet Earnings
U.S. stocks advanced on Wednesday, buoyed by growing optimism around a new trade agreement between the U.S. and Japan. Investors also looked ahead to earnings reports from tech heavyweights Alphabet and Tesla.
As of 09:35 ET (13:35 GMT), the Dow Jones Industrial Average was up 245 points (0.6%), the S&P 500 rose 23 points (0.4%), and the NASDAQ Composite added 50 points (0.2%).
🇺🇸🇯🇵 Trump Hails ‘Massive’ Trade Deal With Japan
President Donald Trump announced via social media that his administration had finalized a “massive” trade agreement with Japan. As part of the deal, Japanese imports to the U.S. will now face a 15% tariff, significantly less than the initially proposed 25%.
Trump also claimed that Japan will invest $550 billion into the U.S. economy and expand access for American-made automobiles and agricultural goods, particularly rice.
This agreement marks a step forward in ongoing trade negotiations, with the White House aiming to finalize terms ahead of the August 1 tariff deadline. However, Trump’s tariff policies continue to raise concerns, with analysts and the Federal Reserve warning they could stoke inflationary pressures in the near term.
🚗💻 Tesla, Alphabet Set to Kick Off Big Tech Earnings Season
Tesla (NASDAQ: TSLA) and Alphabet (NASDAQ: GOOGL) are both scheduled to report Q2 earnings after the market closes on Wednesday. They will be the first of the “Magnificent Seven” tech giants to release results this earnings season and are expected to set the tone for the broader market.
For Tesla, investors will closely examine profit margins, which have been squeezed by declining vehicle sales and an aggressive price war in China. The company also missed analyst expectations for Q2 vehicle deliveries.
Attention will also focus on Tesla’s ambitions in AI and robotics, which CEO Elon Musk has positioned as the company’s next major growth engine.
Alphabet’s earnings, meanwhile, are expected to offer more insight into the AI boom—with particular scrutiny on how the tech drove top-line revenue and future plans for AI infrastructure investment. As a leader among so-called “AI hyperscalers,” Alphabet’s spending trajectory remains a key focus.
📉📊 Stock Movers: AT&T, Texas Instruments, Hasbro, GE Vernova, Hilton
- AT&T (NYSE: T) slipped despite beating Q2 earnings estimates, as the telecom added more monthly wireless subscribers but underperformed in broadband additions.
- Texas Instruments (NASDAQ: TXN) fell after issuing a weaker-than-expected profit forecast, sparking worries about declining demand for analog chips amid tariff-related disruptions.
- Hasbro (NASDAQ: HAS) surged on strong Q2 earnings, thanks to a record performance from Magic: The Gathering.
- GE Vernova (NYSE: GEV) rose after topping earnings estimates and raising its full-year outlook, citing strong demand in the power and grid infrastructure sectors.
- Hilton Worldwide (NYSE: HLT) declined following a 0.5% drop in system-wide comparable revenue per available room, impacted by lower occupancy rates year-over-year.
Roughly 17% of S&P 500 companies have reported so far this earnings season, with around 85% beating expectations.
🛢️ Oil Dips Despite Crude Inventory Drop
Oil prices edged lower Wednesday, surrendering earlier gains despite the U.S.-Japan trade deal.
At 09:35 ET:
- Brent crude fell 0.4% to $68.31/barrel
- WTI crude dropped 0.4% to $65.05/barrel
The American Petroleum Institute (API) reported a surprise 577,000-barrel draw in U.S. crude inventories for the week ending July 18, in contrast to the previous week’s build of 19.1 million barrels. If confirmed by government data later today, the decline could point to stronger fuel demand during the summer travel season.
