| No images? Click here   By Teresa Rivas | Monday, July 14 Monday Funday. Markets got a sluggish start to the week, but no news is good news: Tech stocks edged toward new highs despite a slow summer news day. The Dow Jones Industrial Average added 0.2% while the S&P 500 gained 0.1% and the Nasdaq Composite closed up 0.3%. That was enough for the tech-heavy Nasdaq to reach an all-time high, while the S&P is at its third-highest close in history. Tariffs continue to be a concern, but there wasn’t much movement on that front today. Markets are mostly in waiting mode, as big banks will kick off second-quarter earnings season this week. JP Morgan, Wells Fargo, Blackrock, and Citigroup are slated to report tomorrow, followed by other big names like Johnson & Johnson, Netflix, and American Express later this week. Analysts are largely growing more optimistic about earnings after the tariff scare this spring, on hopes that deals will be struck at reasonable levels. First-quarter reporting season was better-than-expected, although that period didn’t include any trade impact. And of course companies are expected to beat estimates by some degree. DataTrek Research co-founder Nicholas Colas notes that since the start of 2023, S&P 500 companies have beat consensus estimates by an average 6.4%. He thinks that this is the number to beat in order for the second-quarter reporting season to be deemed a success. However his co-founder Jessica Rabe notes that the market can’t count on big tech to do the heavy lifting: Among the Magnificent Seven (Google parent Alphabet, Amazon.com, Apple, Facebook owner Meta Platforms, Microsoft, Nvidia, and Tesla) plus Broadcom, nearly all have seen negative earnings revisions in the past three months, and only half of the 8 Big Tech names have better earnings estimate momentum than the S&P as a whole for this quarter. Other sectors may be able to pick up the slack. According to Bloomberg data, analysts raised their price targets on financials by 2.4% last week, the highest of any sector. Expectations are likely high given their recent rally. Strategists also see reason for longer-term optimism. Trivariate Research argued in a note Sunday that, with S&P 500 earnings per share averaging 9% growth in recent years, it’s not hard to see that figure climbing to 10% or 11% thanks to artificial intelligence, boosting the index close to 10,000 by the end of the decade. That's still a ways off, but some strategists see reason for near-term optimism too. ClearBridge Investments Chief Investment Officer Scott Glasser writes that he’s bullish on the outlook for 2026, when he thinks that S&P 500 profits can return to double-digit growth: “Our expectations assume a broader resolution of most tariff negotiations resulting in more of a one-time price adjustment than a lasting impact on both prices and profits. We expect continued strong investment in all things related to AI, but also in other industries as deregulation boosts investment and capital markets activity resumes amid declining corporate uncertainty.” Good things come to those who wait.  DJIA: +0.20% to 44,459.65 The Hot Stock: EQT Corporation +5.3% Best Sector: Communication Services +0.9%    Rain or Shine. The outlook for solar stocks has been murky since the election, and the "big beautiful" bill that became law on the Fourth of July removes many federal programs that had supported clean energy via tax credits. That won't necessarily stop some solar companies. Mizuho Securities analyst Maheep Mandloi is concerned that demand for solar energy will deteriorate quickly as these government programs are phased out and that will hurt some companies; however, as my colleague Nate Wolf reports, some solar stocks can keep thriving. More from the article:
In fact, clean energy hasn’t done as badly as bears feared. So far in 2025, the Global X CleanTech exchange-traded fund and the Invesco WilderHill Clean Energy ETF are up double digits, outperforming the broader market. Of course, stock returns don’t neatly align with politics: Recall that during Donald Trump's first administration, energy didn’t have an easy go, while green energy stocks languished under Joe Biden. So some may shine on, for now.  The CalendarAlbertsons, Bank of New York Mellon, BlackRock, Citigroup, J.B. Hunt Transport Services, JPMorgan Chase, Omnicom Group, State Street, and Wells Fargo release quarterly results on Tuesday. The Bureau of Labor Statistics releases the consumer price index for June. Economists forecast a 2.6% year-over-year increase, two-tenths of a percentage point more than in May. The core CPI, which strips out food and energy prices, is expected to rise 2.9%, compared with 2.8% previously. --Dan Lam    Barron's Live returns on Monday. Barron's Live features timely and actionable insights for investors. We give you behind-the-scenes conversations with the newsroom, connecting you with our editors and reporters covering the markets, the economy, and more. Sign up here.
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