The New York stock market showed mixed signals on the 22nd (local time) amid caution ahead of major corporations' earnings reports and the resumption of U.S.-China trade negotiations. After the S&P 500 Index and Nasdaq reached all-time highs during the previous session, a temporary breather was taken.
As of 9:40 a.m. local time, the Dow Jones Industrial Average was up 105.43 points (0.24%) to 44,428.50 at the New York Stock Exchange (NYSE), while the Standard & Poor's (S&P) 500 Index rose 1.63 points (0.03%) to 6,307.23. In contrast, the Nasdaq Index was down 29.69 points (0.14%) to 20,944.48, showing a bearish trend.
According to FactSet, 88 corporations within the S&P 500 have reported earnings, with more than 82% exceeding market expectations. However, the market is focusing more on future economic prospects, demand related to artificial intelligence (AI), and changes in tariff policy than on the earnings figures themselves.
Alphabet and Tesla are scheduled to report their earnings on the 23rd, marking the official start of the earnings season for the so-called "Magnificent Seven" large technology stocks. These stocks are evaluated as key drivers of earnings growth for this quarter.
Gene Goldman, chief investment officer at Cetera Investment Management, noted, "The major positive factors have already been reflected in stock prices, and there are concerns that the rally has been excessive," adding, "The index rebounded quickly, but earnings outlooks for corporations have been downgraded to half levels."
On the same day, Treasury Secretary Scott Bessent stated in a media interview, "We plan to hold discussions next week about extending trade negotiations with China," indicating that related issues are also of interest to the market.
By sector, healthcare was strong, rising by 1.3%, while real estate and utilities each gained 0.5%. Energy, finance, and consumer discretionary were also up by around 0.4%. In contrast, technology stocks fell by 0.5%.
On an individual stock basis, General Motors (GM) is down 7% despite reporting earnings that exceeded market expectations, due to a decrease in revenue compared to the previous year and concerns over tariff burdens. Ford and Stellantis are also experiencing weakness. Lockheed Martin dropped 7% due to poor sales in the second quarter, while Coca-Cola is down 1% despite strong performance, amid concerns over global demand slowing.