What this week know to know

The S&P 500 (^GSPC) and the Nasdaq Composite (^ixic) both float near record highs as an escalating tariff and a growing debate about monetary policy has little to shake the markets.

The Nasdaq Composite led the profits last week and rose by more than 1.6%. In the meantime, the S&P 500 appeared about 0.7%, while the Dow Jones Industrial Average (^DJI) was just above the flat line.

In the coming week, 112 S&P 500 companies will report quarterly results. Reports from Alphabet (Googl, Goog), Tesla (TSLA) and Chipotle (CMG) are the focus.

In the meantime, a quiet week with economic data publications is emphasized by updating the activities in the services and manufacturing sectors, since the Federal Reserve enters its power default period before it is a meeting of politics from July 29th to 30th.

On Thursday, Fed Governor Christopher Waller called his clearest call for interest rate cuts in July. During a speech in New York, Waller said that the Fed should reduce interest in July and added that the federal fund rate is more than a full percentage point than it should be.

“With inflation near Target and the upward risks for inflation, we should not wait until the labor market worsens before we lower the political rate,” said Waller.

However, the latest removals in market prices have shown that investors are less optimistic about the reduction in installments. Last week, signs of stickiness in consumer fuel in connection with a stronger retail sales report in June and weekly unemployment unemployment applications.

From Friday the markets only 5% of the chance that the Federal Open Market Committee would reduce interest in July, according to the CME Fedwatch tool. A month ago, the markets had one chance of 13%.

“We expect the committee to bring a consensus to reduce interest in September, since the case of the Hawkischer case with the loose of the labor market and the signs of tariffs that are moved into a wider inflationary trend,” wrote to the customers in a note on Friday.

Read more: How the decision of the FED interest rate, loans, credit cards and investments affects your bank accounts

Big Banks started the earnings period in the second quarter with a number of results better than expected results. Netflix (NFLX) followed it on Thursday evening with an estimation report. Both the streaming giant and the large financial banks said that the US consumer is still strong.

Overall, the S&P 500 is now up and down to report profit growth of 5.6% compared to the previous year. This is above the 4.8% analysts that had only expected last week.

Despite the strong reports, some stocks in which massive rallies agreed in their reports stated that according to their reports, a subdued stock reaction in the trading session. For example, the Netflix share fell by almost 5%on Friday, even though it had increased sales advice on the entire year. The Netflix share had increased by almost 100% last year.

“In our opinion, a total of good results and instructions was not good enough for increased expectations,” wrote William Blair -Analyst Ralph Schackart in a note with the title “Good Quarter, but difficult to exceed high expectations.”

With the broader market with record highs, a weak stock reaction after solid profit reports on some Wall Street strategists that went to the profit in the second quarter was a problem.

“The challenge is [trailing twelve-month] Income that leaves strong results, as financial data showed that the season begins to maintain just enough to maintain the market, while minor disappointments risk material backgrounds, “wrote Julian Emanuel, who heads the equity, derivative and quantitative strategy at Evercore ISI, in a note on Friday.

Alphabet and Tesla will tune in quarterly publications for the “Magnificent Seven” tech sacties. This cohort will also lead to the profit growth of S&P 500 this quarter.

The great seven are expected to grow by 14.1% compared to the previous year in the second quarter. The other 493 shares in the index are expected to record only 3.4% compared to the previous year. This means that the view of the S&P income, which is surprising up to the upward trend, largely depends on large technical results.

As shown in the following table, consensus expects in the next quarters that the other 493 promote a larger proportion of profit growth – an important call to the Wall Street strategists, which hopes for an expansion of the stock exchange rally, which has only come into batches in recent years.

“It is time to deliver the profits,” wrote the Citi -strategist Scott Chronert to customers in a reference. “The comment will be the key if we hope that the revisions will continue to be upside down, and hopefully some influences in the growth of the cyclical sector to finally advance the expansion.

He added: “The problem is the setup. It feels as if the market is ahead of the positive developments. And as we continue to determine, the mood is increased and the implicit growth expectations are high.”

Economic data: Leading index of the economic indicators, June (-0.2% expected, -0.1% before)

Income: Cleveland-Cliffs (CLF), Domino's Pizza (DPZ), steel dynamics (STLD), Verizon (VZ)

Economic data: Richmond Fed Manufacturing Index, July (-4 expected, -7 before)

Income: Capital One (COF), Coca-Cola (KO), Dr. Horton (DHI), Enphase Energy (Enph), GM (GM), Lockheed Martin (LMT), Philip Morris International (PM), SAP (SAP), Texas Instruments (Txn)

Economic data: MBA mortgage applications, July 18 (-10% before); Existing month for sales of homes, June (-0.7% expected, +0.8% before)

Income: Alphabet (Googl, Goog), Tesla (TSLA), Chipotle (CMG), Alaska Airlines (Alk), AT & T (T), Fiserv (FI), Freeport-McMoran (FCX), GE Vernova (Gev), General Dynamics (GD), Hasbro (IBM), O'Reilly Automotive (Orly), Quantumcape (QS)

Economic data: First unemployment claims, week on July 19 (230,000 expected, 221,000 before); Chicago Fed National Activity Index, June (-0.28 before); S&P Global Us Manufacturing PMI, July forecast (52.7 expected, 52.9 before); S&P Global US Services PMI, July forecast (53.1 expected, 52.9 before); S&P Global Us Composite PMI, July prediction (52.9 before); New turnover of homes, month over month, June (+4.3% expected, -13.7% before)

Income: American Airlines (AAL), Blackstone (BX), Deckers (Deck), Dow (Dow), Honeywell (Hon), Intel (Intc), Keurig Dr. Pepper (KDP), Nasdaq (NDAQ), Nokia (NOK), Southwest Airlines (LUV), Union Pacific (Unigife) (Unign) (Union Pacif) (Unigifisch)

Economic data: Long-lived orders of goods, forecast in June (-10.8% expected, +16.4% before)

Income: Charter communication (chr)

Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschaffer.

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