Market Recap – Wednesday, July 16, 2025
Stocks Mostly Higher Amid Fed Comments and Earnings Expectations
Stocks finished the day mostly higher, with the Dow and S&P 500 seeing modest gains while the Nasdaq and Russell 2000 outperformed with larger increases. The market remained fairly mixed and volatile, as trade concerns and earnings expectations continued to drive sentiment. Big tech stocks were mostly mixed, with some outperforming while others saw slight declines. On the sector front, healthcare and biotech stocks led the charge, while energy, copper, and retail stocks lagged. Oil prices saw a small decline, while Bitcoin futures reached new highs, up 2.2%, and gold rose slightly by 0.7%.
Key Market Developments:
The market's focus today remained on the latest developments surrounding trade and inflation data. President Trump’s latest tariff comments stirred up some volatility, with reports about a 50% tariff on copper imports and potential pharma and semiconductor tariffs weighing on some stocks. However, the market took these concerns in stride, focusing on hopes for future trade negotiations. On the positive side, several sectors showed resilience, including healthcare, AI, and biotech, benefiting from recent developments in technology and earnings reports. Expectations for earnings season are now heating up, with analysts cautiously optimistic but noting that the bar has been set high for large banks, making this a critical week for corporate results.
Economic Data:
Economic data was light today, but June’s Producer Price Index (PPI) showed no change month-over-month, cooling some of the inflationary fears. This came after the softer June CPI report from the day before. The latest figures indicate that while there is some upward pressure on prices in goods like apparel and electronics due to tariffs, services prices remained steady. Meanwhile, retail sales will be in focus tomorrow, with analysts expecting modest gains despite concerns over inflation and consumer spending.
Notable Gainers:
Rigetti Computing (RGTI-US): +30.1%, after achieving a key performance milestone in its quantum computing system.
Dyne Therapeutics (DYN-US): +12.7%, following a significant insider purchase by CEO John Cox.
United Natural Foods (UNFI-US): +12.3%, after raising its revenue guidance for FY25 despite challenges from a recent cyber incident.
Tempus AI (TEM-US): +7.3%, after receiving FDA clearance for its ECG software.
Global Payments (GPN-US): +6.5%, as activist firm Elliott Management builds a sizable stake in the company.
Notable Decliners:
Lantheus Holdings (LNTH-US): -8.4%, after receiving disappointing news regarding CMS reimbursement for its drug, Pylarify.
ASML Holding (ASML-US): -8.3%, following weaker-than-expected guidance for Q3 due to geopolitical and macroeconomic risks.
Ford Motor (F-US): -2.9%, as the company flagged a $570M expense for vehicle field service actions.
BlackRock (BLK-US): -5.9%, after beating earnings expectations, but reporting lighter-than-expected revenues and below-par net inflows.
Wells Fargo (WFC-US): -5.5%, despite a better-than-expected Q2, with a miss in net interest income (NII) and lower guidance for FY25.
Here’s Our Take
Today’s market showed some resilience with healthcare, AI, and biotech stocks performing well, but the broader market continues to be cautious. President Trump’s recent tariff comments, particularly regarding pharma and semiconductors, remain a key overhang on sentiment. However, the market seems to be pricing in the likelihood of a trade resolution, at least for the time being. Earnings season is now in full swing, with banks kicking off the reporting cycle. While there’s some optimism for the resilience of large companies, the high bar for earnings growth could make this a challenging quarter. We will be watching closely for any signs of slower earnings growth or further tariff impacts as the month progresses.
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