Investment Week at a Glance
Stocks finished up for the week. The Dow Jones Industrial Average rose 1.3%, the S&P 500 was up 1.5%, and the NASDAQ rose 1.0%. Foreign stocks (MSCI EAFE) were also up, rising 2.8%. Bond prices were up for the week, with the 10-year U.S. Treasury ending the week at 4.38%. (Data source: Wall Street Journal)
All-Time Highs Continue
Over the past month, the S&P 500 has been on a steady climb higher, making 11 new all-time highs in the past 30 days. There has also not been a single move of +/- 1% in the past month, the complete opposite from the first half of the year, when we were seeing huge daily swings at the peak of tariff worries. This week will test the stability of the market with big tech earnings, a Fed meeting, and a trade deal deadline to worry about. Investors will hope for good news all week as each day will likely have its own headline.
USA EU Make Trade Deal
With the deadline to make a trade deal looming, the USA & EU came to an agreement on a trade deal on Sunday. There will be a 15% tariff on imports from the 27-nation European Union, and the EU agreed to purchase $750 billion worth of energy from the US and invest $600 billion more into the US. Reactions from EU leaders have been positive, and markets rose in futures trading on Sunday night.
Alphabet (Google) Beats Earnings Expectations
Alphabet reported 2nd quarter earnings on Wednesday and beat both revenue and earnings expectations for the quarter. For the quarter, they brought in $96.43 billion of revenue, and earnings were $2.31 per share. The company also announced an increase in anticipated AI spend from $75 billion to $85 billion in 2025. This recent move higher pushed Alphabet stock positive for the year and is now up over 160% the past 5 years. The company currently has a market cap of over $2.3 trillion and is the 5th largest company by market cap in the world. (CNBC)
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Quiz
The Japanese stock market (Topix) hit an all-time high earlier in July, when was the previous all-time high reached? (Scroll Down for Answer)
- 1989
- 1999
- 2008
- 2020
Answer:
1. 1989. The Japanese stock market recently made it back to all-time highs after nearly 36 years without making a new high. This may be hard to believe for American investors as the S&P 500 has seen 11 new highs within the past month.
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