Wall Street Near Record As PepsiCo, United Airlines Surge

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Wall Street Near Record As PepsiCo, United Airlines Surge/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Wall Street held steady near record levels Thursday, supported by strong earnings from PepsiCo and United Airlines. Tech and travel stocks surged, while health care shares slumped, dragging the S&P 500 slightly. Economic data showing stronger retail spending and jobless claim declines bolstered confidence in the labor market.

Wall Street’s Trading Day: Quick Looks

S&P 500 Flat: Index hovers just below its record, little changed Thursday morning.
Dow Rises: Up 105 points (0.2%), supported by earnings reports.
Nasdaq Hits Record: Gained 0.1%, lifted by AI chip stocks and Lucid news.
PepsiCo Soars: Shares rose 6.6% on better-than-expected revenue and profit.
United Airlines Gains: Climbed 6.4% after strong Q2 earnings and demand optimism.
Lucid Skyrockets: Surged 25.3% after Uber partnership announcement.
Healthcare Stocks Drop: Abbott and Elevance Health both missed key forecasts.
Bond Yields Mixed: 2-year yield rises to 3.89%, 10-year dips to 4.44%.
Economic Reports Strong: Retail sales, jobless claims, and regional manufacturing all beat expectations.
Fed Eyes Data: Powell cautious on interest rate cuts amid tariff-driven inflation concerns.

Wall Street Near Record As PepsiCo, United Airlines Surge

Deep Look

NEW YORK (AP) — U.S. stock indexes hovered near record highs Thursday as strong corporate earnings and resilient economic data kept optimism alive on Wall Street despite lingering concerns over tariffs and inflation.

The S&P 500 was nearly unchanged in early trading but held close to its all-time high set the previous week. The Dow Jones Industrial Average climbed 105 points (0.2%) while the Nasdaq composite, fueled by tech gains, added 0.1% and extended its record-setting run from Wednesday.

Corporate Winners Lead the Charge

The market’s steadiness was supported by better-than-expected second-quarter results from consumer and travel giants:

PepsiCo jumped 6.6% after reporting higher-than-expected profit and revenue. The company reaffirmed its April forecast, despite tariff-related cost pressures and a slowdown in consumer spending.
United Airlines gained 6.4% following a strong earnings beat and a bullish outlook for the remainder of the year. Executives noted an early July spike in demand and reduced economic uncertainty impacting travel decisions.

In tech, Lucid Group stunned investors with a 25.3% surge after it announced a collaboration with Uber. The ride-hailing giant plans to deploy over 20,000 Lucid vehicles in its future autonomous fleet. Though Uber shares dipped 0.1%, it pledged to invest significantly in Lucid and autonomous driving startup Nuro.

Meanwhile, Taiwan Semiconductor Manufacturing Co. posted a nearly 61% increase in quarterly profit, thanks to rising demand from AI and chip clients. Its U.S.-traded shares rose 2.2%.

Health Care Weakens Broader Gains

Not all sectors shared in the rally. Abbott Laboratories fell 6.1% despite narrowly beating estimates. The company reduced its revenue growth forecast, spooking investors. Elevance Health tumbled 9.2% after posting disappointing earnings and slashing its profit outlook for 2025, citing rising costs in its Affordable Care Act programs.

Economic Reports Bolster Fed Patience

Investors also digested a trio of better-than-expected economic reports Thursday:

Retail Sales: Consumer spending rose more than forecast, reflecting continued resilience.
Jobless Claims: Unemployment applications fell again last week, suggesting fewer layoffs.
Manufacturing Strength: The mid-Atlantic region showed surprising growth in factory activity.

Together, the reports support the Federal Reserve’s decision to keep interest rates steady this year. Fed Chair Jerome Powell has emphasized the need to assess the effects of Trump’s aggressive tariff policy before making any rate adjustments. The risk: While rate cuts could stimulate markets, they may also exacerbate inflation that’s already creeping upward due to import taxes.

Market Response: Bonds, Inflation, and the Fed

In the bond market, short-term Treasury yields rose slightly on the economic news, with the 2-year yield climbing to 3.89%. Longer-term yields, however, slipped, with the 10-year Treasury easing to 4.44%.

Markets had briefly reacted Wednesday to Trump’s comments about potentially firing Fed Chair Powell—a move that could weaken the central bank’s independence and spark longer-term inflation fears. But Trump later downplayed the idea, stabilizing investor sentiment.

Global Markets in Sync

Stock indexes across Europe and Asia also rose, buoyed by positive U.S. data and strong earnings from multinational firms. The synchronized global market rally suggests broad investor confidence, even as geopolitical tensions and trade policies remain top of mind.