U.S. Stocks Edge Higher as Earnings and Trade Optimism Lift Markets
U.S. stock markets moved slightly higher on Friday, as investors reacted to corporate earnings and looked ahead to potential new trade agreements.
As of 09:32 ET (13:32 GMT), the Dow Jones Industrial Average was up 67 points, or 0.2%. The S&P 500 rose 9 points, or 0.1%, while the Nasdaq Composite traded flat.
All three major Wall Street indices are on track to post weekly gains. Both the Dow and Nasdaq are expected to rise about 1% for the week, while the S&P 500 is up roughly 1.1% so far.
Earnings reports have fueled the market’s strength. Nearly 83% of S&P 500 companies that have reported so far have beaten analyst expectations. That momentum pushed the S&P 500 and Nasdaq to record intraday and closing highs on Thursday.
Trade Deal Hopes Boost Sentiment
Beyond strong earnings, investor sentiment has been lifted by recent progress in trade negotiations. A new U.S.–Japan trade deal has sparked optimism that additional agreements will be reached before the August 1 tariff deadline.
The European Commission said this week that a resolution is within reach, while U.S. and Chinese officials plan to meet in Stockholm next week to extend talks.
Earlier this year, the U.S. and China agreed to significantly lower tariffs and signed a framework deal. However, current U.S. tariffs on Chinese goods remain between 30% and 50%, and negotiations continue for a broader agreement.
Intel Guidance Disappoints, Deckers Surges
Friday’s market action is also being shaped by more corporate earnings. Reports from HCA Holdings and Charter Communications are due, while investors are digesting Thursday’s post-market releases.
Intel (NASDAQ:INTC) issued a disappointing outlook for Q3, projecting steeper losses than expected. The company also announced it would cut its workforce by 22%—down to 75,000 employees by year-end—through attrition and other cost-saving measures.
On a positive note, Deckers (NYSE:DECK) stock surged after delivering strong first-quarter results. The company reported better-than-expected sales from its Hoka and Ugg brands.
Meanwhile, Paramount Global (NASDAQ:PARAA) edged higher after the FCC approved its $8 billion merger with Skydance Media.
Oil Prices Steady After Gains
Crude oil prices held steady Friday after sharp gains in the previous session. As of 09:38 ET, Brent crude was flat at $69.17 per barrel, while West Texas Intermediate (WTI) dipped 0.1% to $65.97.
Oil markets were supported by news of a significant drop in U.S. crude inventories and renewed optimism about U.S. trade deals with global partners.
