Market Recap – Friday, July 18, 2025
Stocks Finish Mixed as Earnings Season Continues and Trade Tensions Linger
Stocks finished mostly lower on Friday, with the Dow and S&P 500 slightly down, while the Nasdaq and Russell 2000 managed modest gains. Despite the lack of major moves, the Nasdaq hit a fresh record high for the week. The broader market remained within a tight range, with some sectors gaining and others struggling. Notable outperformers included banks, insurers, tech hardware, and cybersecurity stocks. Big tech stocks, especially Tesla (TSLA), showed strong gains, while sectors like pharma, energy, and managed care lagged. Oil prices saw a small dip, while Bitcoin futures and gold were slightly weaker as well.
Key Market Developments:
Economic Data: Retail sales in June came in stronger than expected, rising 0.6% month-over-month, marking a recovery after two months of declines. The June housing market showed slight improvement with a 4.6% increase in housing starts. Consumer sentiment rose to its highest level in five months, though inflation expectations remain slightly elevated.
Fed Watch: Federal Reserve Governor Waller continued to make a case for a rate cut, though other officials remained cautious, suggesting a “wait-and-see” approach.
Trade Tensions: The trade narrative remains mixed, with President Trump’s comments on tariffs continuing to make headlines. His escalating demands on the EU and recent trade updates left some uncertainty in the market. There was also ongoing speculation on potential changes at the Federal Reserve, as Trump denied plans to fire Chairman Powell, which caused some market volatility.
Notable Gainers:
Lucid Group (LCID): +24.5% – Announced a partnership with Uber, including a $300 million investment, for an autonomous robotaxi program.
CRISPR Therapeutics (CRSP): +18.2% – Major shareholder bought a large number of shares, signaling confidence in the company’s future.
Interactive Brokers (IBKR): +7.8% – Reported strong earnings, beating expectations and benefiting from new account growth.
Regions Financial (RF): +6.1% – Beating earnings expectations with solid loan growth and net interest income.
Notable Decliners:
Sarepta Therapeutics (SRPT): -35.9% – A patient died in a clinical trial, causing a significant drop in the company’s stock.
Elevance Health (ELV): -8.4% – Downgraded due to concerns about slow growth and earnings for 2026.
Netflix (NFLX): -5.1% – Despite a solid beat in earnings, concerns remain about content creation costs and increasing competition.
Abbott Labs (ABT): -8.5% – Missed earnings expectations, particularly in diagnostics, and lowered its full-year guidance.
Here's Our Take:
Today's market showed some positive earnings reports, especially from tech and financial stocks, but there were also a few notable disappointments. Despite some concerns in sectors like healthcare and energy, the market remains in a relatively positive mood, driven by strong consumer spending and resilient economic data. The ongoing trade tensions and tariff uncertainties continue to be a wildcard, and the prospect of a rate cut by the Fed adds a bit of support to the market. As earnings season progresses, it’s important to keep an eye on how companies navigate these challenges, especially as the market continues to trade with high valuations. While sentiment remains positive, the risks from trade policies and the Fed’s decisions will continue to shape the market’s direction.
P.S. Know someone who'd appreciate smarter stock insights and clearer investing strategies? Forward this email or share this link: subscribe.triplegains.com