Investment Week at a Glance
Stocks finished down for the week. The Dow Jones Industrial Average was down 1%, the S&P 500 was down 1.2%, and the NASDAQ fell 2.2%. Foreign stocks (MSCI EAFE) were down for the week, falling 1.2%. Bond prices were up for the week, with the 10-year U.S. Treasury yield ending the week at 4.54%. (Data source: Wall Street Journal)
Inflation Data Comes in Lower Than Expected for June.
This week, two major inflation gauges were reported by the Bureau of Labor Statistics: The Consumer Price Index (CPI) and Producer Price Index (PPI). On Tuesday, the CPI indicated the annual inflation rate was 3.5%, significantly lower than the expected 3.8%. Wednesday, that report was followed by the PPI, which fell unexpectedly by 0.3% in June, bringing the annual wholesale inflation rate down to 5.5%. While these are just two data points for now, continued declines in these two numbers over the coming months should put the possibility of an interest rate cut on the table for the Federal Reserve.
Big Banks Beat Earnings Expectations, Posting Record Profits.
On Tuesday, July 14th, several major US banks released their second-quarter earnings and kicked off this earnings cycle with a bang. JPMorgan recorded the highest quarterly profit of any US bank in history, $21.2 billion. Goldman Sachs saw a 55% year-over-year increase in its underwriting segment, fueled largely by its role in the SpaceX IPO. Other banks, such as Bank of America, Wells Fargo, and Citigroup, all beat analysts’ earnings estimates by a wide margin.
Marathon Petroleum Stock Up 91% This Year, Leading the Energy Sector Higher
Marathon Petroleum Corporation (MPC) stock has risen over 91% this year, outperforming most of its competitors. Overall, oil companies have done remarkably well this year due to higher international oil prices because of the conflict in the Middle East. However, Marathon’s stock price did not just benefit from higher prices. After beating analysts’ Q1 earnings per share expectations by 120%, the company’s board of directors authorized $5 billion in stock repurchases to help return money to shareholders efficiently. This $5 billion authorization comes after repurchasing over $3.5 billion worth of shares last year. Share repurchases generally signal to investors that a company is healthy and has plenty of excess cash. Additionally, the more shares repurchased, the larger the proportion of the company each outstanding share represents. Marathon is expected to report its Q2 earnings on August 4th, with analysts expecting record earnings (CNBC).
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Quiz
How many individual stocks in the Dow Jones have fallen 25% in a single trading day in the last decade? (Scroll Down for Answer)
- 8
- 5
- 3
- 1
Answer:
- 1. Over the last 10 years, only a single stock has fallen 25% in the Dow Jones, which happened on Tuesday, July 14th, 2026, when IBM fell over 25.2% intraday because of a preliminary earnings spook. This statistic not only highlights the overall resilience of blue-chip stocks but also underscores the importance of diversification for investors, as it shows that stock prices can fall dramatically, even for a company such as IBM that has been around for well over a century.
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