The New York Stock Exchange started off higher, keeping an eye on tariff negotiations by the Donald Trump administration and the second-quarter earnings reports of big tech.
As of 9:31 a.m. local time on the 21st, the Dow Jones Industrial Average rose by 54.66 points (0.12%) to 44,396.85 at the New York Stock Exchange (NYSE), the Standard & Poor's (S&P) 500 index increased by 17.27 points to 6,314.06, and the Nasdaq index gained 78.20 points (0.37%) to 29,973.85.
Scott Bessent, the U.S. Treasury Secretary, noted on this day that the Trump administration's negotiations with trading partners are progressing smoothly, and the important aspect in this process is not the timing but the quality of the agreement, ahead of the new reciprocal tariff deadline of August 1, which was postponed for negotiations about two weeks prior. He said, "It's more important to reach a high-quality agreement rather than rushing to finalize it by the 1st of next month," adding, "We are moving swiftly in negotiations, but we will not come to a hasty conclusion."
The announcement of second-quarter earnings by corporations is off to a smooth start. According to market research firm FactSet, 62 corporations in the S&P 500 have reported their second-quarter earnings so far, with more than 85% exceeding market expectations. The U.S. investment bank Bank of America projected that the second-quarter net profit of the S&P 500 would increase by about 5% compared to the same period last year.
This week, major big tech companies known as the "Magnificent 7", including Alphabet and Tesla, are set to release their earnings reports first. While FactSet's chief analyst John Butters expects the companies in the "Magnificent 7" to post an average net profit growth of 14% for the second quarter, he predicted that the remaining 493 S&P 500 companies would see a net profit growth rate of only 3.4%.
Mark Malek, Chief Investment Officer (CIO) of Sibert Financial, stated, "We are at the onset of earnings season and the point where the S&P 500 is reaching all-time highs. If there are no major disappointments this season, it will be a critical turning point for maintaining the upward trend of the market."
By individual stocks, shares of the U.S. fintech company Block are up 7% following the news that it will be newly included in the S&P 500 index. Verizon announced that it recorded strong performance in the second quarter, leading its stock price to rise by 2%.
European stock markets are all falling. The Euro Stoxx 50 index has decreased by 0.60%. Germany's DAX index is down 0.19%, the UK's FTSE index has dropped by 0.01%, and France's CAC 40 index has fallen by 0.60%.
International oil prices are declining. As of 9:31 a.m., the price of West Texas Intermediate (WTI) crude, which is for August delivery, has fallen by 0.52% to $66.99 per barrel, while the Brent crude price for September delivery, a global benchmark, is recorded at $68.85, down 0.62%.