Wall Street Edges Higher Ahead of Earnings Week/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stock indexes hovered near record highs Monday ahead of a critical week of corporate earnings reports. Investors weighed strong results from Verizon and Cleveland-Cliffs against ongoing concerns about tariffs imposed by President Donald Trump. Markets remained steady amid global economic uncertainty and shifting political conditions abroad.
Stock Market Outlook: Quick Looks
- S&P 500 and Nasdaq hover near record highs
- Verizon rises 3% on better-than-expected earnings
- Microsoft dips 0.4% after SharePoint vulnerability patch
- Block Inc. jumps 6.7% after joining S&P 500
- Cleveland-Cliffs gains 6.8% after strong steel shipments
- Trump’s tariffs create both gains and complications
- Eyes on earnings from GM, Alphabet, Tesla, Coca-Cola
- 10-year Treasury yield drops to 4.38%
- Global markets mixed; Japan’s government suffers electoral blow
Wall Street Edges Higher Ahead of Earnings Week
Deep Look
NEW YORK (AP) — Wall Street kicked off the week with cautious optimism as major U.S. indexes hovered near all-time highs on Monday. Investors looked ahead to a flood of corporate earnings reports and considered the effects of President Donald Trump’s ongoing trade policies, including tariffs that continue to ripple through the U.S. economy.
The S&P 500 edged up 0.3% in early trading, extending slightly beyond the all-time high it reached last Thursday. The Dow Jones Industrial Average gained 52 points (0.1%), while the tech-heavy Nasdaq Composite added 0.4%, notching another record in the process.
Earnings Begin to Roll In
The early session was fueled by Verizon Communications, which posted earnings and revenue that exceeded analysts’ forecasts. The telecom giant raised its full-year profit outlook, prompting a 3% rise in its stock. This positive momentum offered some insulation from modest declines in other key tech names.
Microsoft, one of the market’s largest weights, dipped 0.4% after it released an emergency patch for a major vulnerability in its SharePoint software. The flaw had reportedly been used by cybercriminals to breach both corporate and government networks.
Block Inc., the fintech firm helmed by Jack Dorsey and known for brands like Square and Cash App, surged 6.7% after being selected to join the S&P 500 index. It will officially replace Hess Corp. — recently acquired by Chevron — before trading opens Wednesday.
Another standout was Cleveland-Cliffs, which climbed 6.8% after reporting a narrower-than-expected quarterly loss. The company shipped a record 4.3 million net tons of steel and highlighted the positive impact of tariffs on domestic manufacturing. CEO Lourenco Goncalves emphasized that U.S. policy under President Trump has steered more business toward American steel producers, particularly in the auto sector.
Tariffs: A Mixed Bag for Investors
Trump’s controversial tariff strategy continues to divide Wall Street. While it has boosted some U.S.-based manufacturers and commodity producers, it has also complicated supply chains and raised costs for multinational companies. Among those navigating the fallout is General Motors, set to release its latest earnings later this week.
Other big names slated to report include Alphabet, Tesla, and Coca-Cola, all of which could offer insight into how large corporations are managing price pressures and shifting consumer habits.
Despite the uncertainty, investors are cautiously optimistic. Trump has delayed the implementation of some of the more aggressive tariff measures to allow room for negotiations. The next major deadline for new tariffs is set for August 1, and markets are closely watching for signs of progress or further escalation.
Consumer Strength Offers Hope
Though early in the earnings season, most large U.S. companies have thus far beaten Wall Street expectations. Encouraging retail sales data and reports of a travel rebound from United Airlines point to resilient consumer demand.
According to Bank of America strategist Savita Subramanian, these signals suggest U.S. households may remain strong enough to sustain broader economic growth, at least in the near term.
Global Market Landscape
Outside the U.S., European stock markets traded slightly lower following modest gains across Asia. Japan’s markets were closed for a national holiday, but political developments stole headlines after the ruling Liberal Democratic Party lost control of both houses of Parliament — a first since 1955.
Japanese Prime Minister Shigeru Ishiba pledged to remain in office despite voter backlash tied to rising costs and political instability. Analysts say the administration may turn to increased fiscal stimulus, which could further strain the nation’s already sizable debt load.
Bond Yields and Outlook
In the U.S. bond market, Treasury yields eased slightly. The 10-year yield dropped to 4.38%, down from 4.44% on Friday, reflecting some investor caution amid earnings uncertainty and global political instability.
While Wall Street remains sensitive to any developments on tariffs or geopolitics, this week’s corporate earnings are expected to set the tone. Should results continue to exceed forecasts, investors may see further upward momentum — albeit with caution.
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