Evening Market Recap

Sophia Reyes · July 22, 2025 6:05 PM

Market Snapshot for Tuesday 7-22-2025

Dow Jones – 44,502.44 (+0.40%)
NASDAQ – 20,892.69 (-0.39%)
S&P 500 – 6,309.62 (+0.064%)

Market Performance

As Alphabet and Tesla prepare to open the tech sector’s second-quarter earnings season on Wednesday, investor sentiment is optimistic. The Nasdaq hit a record high on Monday, marking its sixth consecutive day of gains and pushing its year-to-date increase to 8%, despite a shaky first quarter.

Major U.S. stock indexes ended the day mixed. The S&P 500 rose 0.1%, giving it another record high. The Nasdaq Composite Index retreated 0.4% from its Monday record, weighed down by chip makers such as Nvidia.

Global stocks were mixed, with major European indexes in France and Germany falling. Indexes in Hong Kong and mainland China rose.

Economic Takeaways –

• The U.S. reached trade pacts with the Philippines and Indonesia Tuesday.
• Treasury Secretary Scott Bessent said Federal Reserve Chair Jerome Powell should finish out his term.
• Blue-chip earnings continued to roll in, including results from Coca-Cola, General Motors and Lockheed Martin.
• On the policy front, chances of a Fed rate cut next week were below 5% early Tuesday, per the CME FedWatch Tool. Odds of at least one rate cut by September stood near 57%, though September probabilities have declined this week.

Gold –

• Gold hits five-week peak on trade jitters, lower bond yields
• Spot gold rose 1% to $3,428.84 per ounce by 2:10 p.m. ET (1810 GMT), hitting its highest since June 16.
• S. gold futures were up 1.1% at $3,443.70.
• The yield on benchmark U.S. 10-year notes fell to a near two-week low, making non-yielding bullion more attractive.
• “Trade uncertainty is prompting some safe haven demand. The U.S. has got several trade deals in the works and there’s rumors that the EU and the U.S. might not be able to come to an agreement or certainly are not anywhere close yet,” said Jim Wyckoff, a senior analyst at Kitco Metals.

Oil –

• Oil prices fall as key trade talks falter ahead of tariff deadline.
• Brent, WTI fall about $1/bbl as trade talks deadline looms. Brent crude futures were down 82 cents, or 1.2%, to $68.39 a barrel by 1:59 p.m. EDT. U.S. West Texas Intermediate crude futures for August delivery, set to expire on Tuesday, fell $1.05, or 1.6%, to $66.15 per barrel.
• The EU is exploring counter-measures as prospects fade for deal with US.

Crypto –

• Bitcoin rose 2.2% to $119,342.
• PNC Bank is set to offer crypto services to clients through a new partnership with Coinbase, following the signing of federal crypto legislation.
• Solana (SOL-USD) moved higher this week after a Florida-based real estate data company disclosed the purchase of nearly 1 million SOL tokens.
• Finally, Trump Media (DJT) climbed on Monday following news that it acquired $2 billion in bitcoin and related digital assets.

Alphabet Faces Lingering Tariff Fears as Investors Eye AI, Cloud, and Ads Performance

Alphabet’s core advertising business is still feeling the pressure after taking a hit earlier this year, as concerns persist that President Trump’s tariff strategy could dampen marketing budgets—especially among Asia-Pacific retailers. Those fears haven’t gone away, and they’re casting a shadow over what’s expected to be the company’s slowest revenue growth in two years. Analysts at LSEG project second-quarter growth at 11%, a notable deceleration. Alphabet shares have only recently turned positive for the year and remain well behind the Nasdaq’s gains.

In the previous quarter, Alphabet narrowly beat Wall Street expectations but missed on YouTube revenue. The company’s chief business officer flagged trade uncertainty as a “slight headwind” for ad sales, specifically pointing to global retail partners impacted by shifting trade dynamics.

Still, some analysts believe the tide may be turning. Deutsche Bank has noted signs of acceleration in Alphabet’s ad business, and Goldman Sachs recently highlighted the company’s search division as being in the midst of a “multi-year transformation,” driven largely by AI integration. BMO Capital Markets added to the optimism, suggesting that return on ad spend (ROAS) is showing signs of meaningful improvement. “As AI monetization continues to evolve, we believe Google will increasingly leverage its over twenty years of AI initiatives to continue expanding ROAS for its advertisers,” BMO analysts wrote.

Alphabet’s cloud unit is also under close investor scrutiny. As it fights to keep pace with AWS and Microsoft Azure, Alphabet has committed a staggering $75 billion to data center expansion, aimed at supercharging its AI and cloud offerings.

Another long-term play—Waymo—is inching forward. The autonomous vehicle division now operates in five major U.S. cities, and as of July 15, its robotaxis have surpassed 100 million miles driven without a human driver or onboard supervisor, underscoring Alphabet’s quiet push into next-generation transportation.

Tesla Heads into Earnings with Slumping Sales, Political Drama, and Robotaxi Hype

Tesla enters Wednesday’s earnings report as the clear underperformer among the megacap tech names, with its stock down roughly 17% year-to-date. Earlier this month, the company revealed a 14% year-over-year drop in second-quarter vehicle deliveries—its second consecutive quarterly decline—highlighting the challenges it faces amid intensifying competition in the global EV market.

In Q1, Tesla’s automotive revenue sank 20%, and Wall Street is bracing for a similar drop in Q2. The company is feeling the squeeze from lower-cost electric vehicles produced by Chinese automakers and other rivals, which are rapidly gaining ground with more affordable offerings.

As always, Tesla’s narrative is inextricably tied to CEO Elon Musk. This will be his first earnings call since publicly breaking with President Trump. After reportedly spending over $250 million to support Trump’s re-election campaign, Musk abruptly stepped down in May from his role as a special government advisor in the Department of Government Efficiency (DOGE), later clashing with Trump over his support of a massive federal spending plan.

While some investors may be curious about Musk’s rumored ambitions to form a new U.S. political party, most will be zeroed in on the company’s fundamentals and whether it can reignite EV demand. A long-promised affordable EV remains a key piece of Tesla’s growth strategy, as the company looks to defend its market share.

Another closely watched development is Tesla’s foray into autonomous transportation. The company launched a limited robotaxi service in Austin, Texas last month, a milestone hailed by fans but met with skepticism by analysts. Bank of America called the rollout promising in concept but said it holds “immaterial financial ramifications” at this stage.

Top Gainers

Several stocks experienced significant gains. Some of the top gainers included:

• Medpace Holdings, Inc. (MEDP) moved higher by 54.67%
• IQVIA Holdings, Inc. (IQV) soared by 17.88%
• R. Horton, Inc. (DHI exploded 16.98%
• Newegg Commerce, Inc. (NEGG) surged 15.91%
• ICON Public Limited Company (ICLR) rose 15.66%
• Dream Finders Homes, Inc. (DFH) moved up 12.95%
• PulteGroup, Inc. (PHM) rose 11.52%
• Cipher Mining, Inc. (CIFR) spiked 11.04%
• Nio Inc. (NIO) moved up 10.84%
• Polaris, Inc. (PII) surged 10.52%

Top Losers

The top US stock losers today, based on percentage change included:

• Badger Meter, Inc. (BMI) moved lower 16.48%
• Lockheed Martin Corp. (LMT) moved down 10.81%
• Tenet Healthcare Corp. (THC) sank 10.70%
• Seres Therapeutics, Inc. (MCRB) fell 10.54%
• MSCI, Inc. (MSCI) was down 8.91%
• Philip Morris International (PM) sank 8.43%
• Equifax, Inc. (EFX) plummeted 8.18%
• General Motors Company (GM) down 8.12%
• Archer Aviation, Inc. (ACHR) dragged 7.26%
• Stem, Inc. (STEM) down 6.79%

Notables

• General Motors (GM) shares slipped 3% in premarket trading, despite the automaker beating earnings and revenue expectations. CFO Paul Jacobson told CNBC the company took a $1.1 billion hit related to tariffs during the quarter. GM reaffirmed its May forecast, which already factored in a potential $4 billion to $5 billion tariff impact for the year.
• Philip Morris International (PM) dropped 4.6% after reporting earnings per share that topped forecasts, but revenue fell short. The tobacco giant also cut its third-quarter and full-year guidance, now expecting 12% to 14% growth in smoke-free products alongside a 2% drop in cigarette volumes.
• Coca-Cola (KO) edged lower following an earnings report that beat bottom-line expectations but matched consensus on revenue. The company lowered its 2025 EPS guidance, citing a 1%–2% currency headwind and a 1% drag from structural changes and portfolio adjustments. Coke also announced plans to introduce beverages made with real cane sugar in the U.S. this fall, alongside its existing lineup sweetened with high fructose corn syrup.
• Northrop Grumman (NOC) rose 3.6% in premarket trading after delivering a solid earnings beat.
• Homebuilders surged, with PulteGroup jumping 10% and D.R. Horton (DHI) soaring 15% on stronger-than-expected quarterly results. D.R. Horton separately gained 7.7% on the day but trimmed the upper end of its revenue outlook due to affordability concerns and cautious consumer sentiment, with home closings down 4.1% year-over-year.
• Alphabet (GOOG) inched higher, while Tesla (TSLA) gained 1% ahead of their much-anticipated earnings announcements set for Wednesday after the bell.
• Kohl’s (KSS) shares rocketed nearly 30%, with trading briefly halted after the stock surged as much as 105% in morning action.
• Coinbase (COIN) announced a new strategic partnership with PNC Bank, while CoreWeave (CRWV) added 0.5%, extending gains from Monday’s rally fueled by a $1.5 billion bond issuance.
• Opendoor (OPEN) continued its remarkable run, jumping 21.5% in premarket trading. Shares are now up 300% since July 11, with Barron’s calling it “a classic example of a meme stock.”
• Apple (AAPL) added to recent gains, building on Monday’s rally after Bloomberg reported the tech giant is preparing to launch a foldable iPhone next year. Still, Apple shares remain down about 15% for the year.
• Lockheed Martin (LMT) fell sharply, losing 8.8% after posting disappointing earnings and revenue, dragged down by losses in a classified Aeronautics program. The defense contractor also cut its fiscal 2025 earnings forecast below Wall Street estimates.
• NXP Semiconductors (NXPI) dropped over 6% despite beating on Q2 earnings and meeting revenue expectations. The company issued a cautious Q3 outlook with lower projected EPS.
• Sarepta Therapeutics (SRPT) declined after the FDA ordered a halt to shipments of its top-selling treatment.
• Cleveland-Cliffs (CLF) surged after the steelmaker reported better-than-expected quarterly results, despite year-over-year declines in both profit and revenue.
• Avalara, the tax software firm that went private in 2022, disclosed it has confidentially filed for a U.S. IPO.
• Stellantis (STLA) warned of a €2.3 billion ($2.7 billion) net loss for the first half of 2025, citing restructuring costs, weakening sales, and early impacts from U.S. tariffs.
• Target (TGT) slid after Barclays downgraded the stock to Underweight, warning that sales are likely to remain under pressure. The retailer is also updating its price match policy starting July 28, removing the 14-day refund option for price differences found at Amazon, Walmart, or other Target listings.
• Texas Instruments (TXN) dipped 1.4% ahead of its earnings release. As a key supplier to sectors like automotive, smartphones, and medical devices, its report will be closely watched, especially for updates on its planned expansion of seven U.S. semiconductor plants.

What to Watch Ahead

All eyes are on Alphabet and Tesla in Wednesday’s session as they kick off earnings for the “Mag 7.” The “Magnificent Seven” stocks have risen 27% over the past three months, outperforming the 11% gain in the rest of the S&P 500, according to Barron’s.