Market Update
Wall Street Indexes Drifts with Earnings In Focus, Crude Oil Extends July's Surge to 20%
Barry Adams
22 Jul, 2026
New York City
U.S. stocks lacked direction in early trading on Wednesday as investors awaited the release of quarterly releases from hyperscalers.
The S&P 500 Index declined 0.3%, and the tech-heavy Nasdaq Composite dropped 0.6% amid escalating tensions in the Middle East.
The West Texas Intermediate crude oil price rose 3.3% to $87.10 a barrel, and the international Brent crude oil price increased 3.8% to $94.23 a barrel as the U.S. and Iran exchanged contradictory signals.
Crude oil prices extended this month's gains to 20% as the U.S. intensified its aerial attacks for the 11th consecutive day and Iran ramped up its attacks on neighboring Gulf nations in the region.
Despite the U.S. president's rhetoric of ending the war in less than a month and then subsequently extending it to three months, the conflict in the Middle East has widened to multiple nations and continued for six months.
Moreover, the U.S. authorities confirmed that military spending is likely to exceed $75 billion, even if the war ends next month.
Investors remain focused on earnings for the second consecutive week, and AT&T, Alphabet, Texas Instruments, Tesla, IBM, and Service Now are slated to release their results later today.
Investors are looking for signs of a change in spending for AI infrastructure and how hyperscalers are monetizing the AI-related opportunities.
U.S. Movers
Super Micro Computer surged 16% to $29.60 after the company confirmed $60 billion of new orders in its fiscal fourth quarter ending in June.
The company estimated fourth quarter revenue to be near the low end of its previous guidance between $11.0 billion and $12.5 billion, and gross margins are estimated to be in the range of 15% and 17%, significantly higher than the estimated range between 8.2% and 8.4%, primarily due to a favorable customer and product mix.
The server company announced its plan to release its fourth quarter results on August 11 at 5:00 ET.
Airbus SE jumped 6.5% to €207.30 after the European aviation company released its business update on Tuesday after markets closed.
The company announced a €5 billion stock repurchase plan and reiterated its 2026 guidance.
GE Vernova decreased 5% to $1,023.0 after the company's second quarter results fell short of market expectations.
Total revenues increased 22% to $11.1 billion from $9.1 billion, net income advanced to $649 million from $492 million, and diluted earnings per share rose 33% to $2.47 from $1.86 a year ago.
The company's order backlog at the end of the quarter increased to $176 billion, driven by $24 billion worth of new orders.
The company revised its 2026 estimated revenue range higher to between $45.50 billion and $46.50 billion, from the previous range between $44.50 billion and $45.50 billion.
GE Vernova estimated free cash flow to fall between $11.50 billion and $12.50 billion, compared to the previously estimated range between $6.50 billion and $7.50 billion, and reiterated the adjusted operating earnings margin range between 12% and 14%.
Japan's Trade Balance Swung to Deficit Driven by Higher Energy Costs
Akira Ito
22 Jul, 2026
Tokyo
Japan's indexes erased morning gains following the release of international trade data.
The Nikkei 225 Stock Average increased 0.1%, the broader TOPIX advanced 0.6%, and the Japanese yen weakened to a new 40-year low of 163.06 against the U.S. dollar.
In early trading benchmark indexes jumped as much as 0.9%, and they lost momentum after Japan's trade balance swung to a larger-than-expected deficit in June.
Japan's Trade Balance Swung to Deficit in June
Japan's exports rose to a three-month high 10.9 trillion yen in June, an increase of 19.3% from a year ago, according to the Ministry of Finance.
The weakness in the yen and robust demand for AI-related semiconductors and data center equipment overcame the supply disruptions from the U.S. and Israel's war with Iran.
Shipments of semiconductor equipment soared 53.8% from a year ago. Exports to Asia gained 22.7%; direct sales to the U.S. advanced 13.0%; and exports to China increased 17.6%.
Late-2025 government stimulus boosted domestic demand in June, and imports from China increased by 29.4%, Taiwan by 49.1%, South Korea by 32.2%, the U.S. by 52.7%, and the ASEAN region by 25.5%.
Crude oil imports soared 59.3% as Japan diversified energy procurement away from the Strait of Hormuz amid ongoing regional tensions.
Japan's trade balance swung to a deficit of 406.9 billion yen in June from a surplus of 122.3 billion yen in the same month a year earlier.
For the first six months, exports increased 13.7% to 60.7 trillion yen on robust shipments of vehicles to the European Union and semiconductors and other electronic devices, mainly to China.
Japan's imports advanced 25.4% to 11.4 trillion yen, marking the fifth consecutive month of increase and the strongest expansion since November 2022.
Crude oil imports in the first six months of 2026 declined 26.4% to 47.31 million kiloliters, according to the preliminary report by the Ministry of Finance.
Japan's international trade deficit of 1.01 trillion yen, or $6.2 billion, in the first six months to June, with the Middle East crisis and supply disruptions in the Strait of Hormuz affecting imports.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.13% to 66,149.11, and the broader TOPIX advanced 0.6% to 4,038.46.
Semiconductor- and AI-related stocks led gainers in Tokyo.
Kioxia Holdings increased 5.3% to ¥64,270.0; Murata Manufacturing Co. Ltd. advanced 3.6% to ¥8,317.0; Tokyo Electron weakened 0.9% to ¥65,960.0, and Advantest Corp. fell 0.2% to ¥29,585.0.
Nippon Yusen KK increased 1.3% to ¥5,818.0, Kawasaki Kisen Kaisha Ltd. gained 0.5% to ¥2,764.0, and Mitsui O.S.K. Lines jumped 2% to ¥5,783.0.
Japan's Trade Balance Swung to Deficit Driven by Higher Energy Costs
Akira Ito
22 Jul, 2026
Tokyo
Japan's indexes erased morning gains following the release of international trade data.
The Nikkei 225 Stock Average increased 0.1%, the broader TOPIX advanced 0.6%, and the Japanese yen weakened to a new 40-year low of 163.06 against the U.S. dollar.
In early trading benchmark indexes jumped as much as 0.9%, and they lost momentum after Japan's trade balance swung to a larger-than-expected deficit in June.
Japan's Trade Balance Swung to Deficit in June
Japan's exports rose to a three-month high 10.9 trillion yen in June, an increase of 19.3% from a year ago, according to the Ministry of Finance.
The weakness in the yen and robust demand for AI-related semiconductors and data center equipment overcame the supply disruptions from the U.S. and Israel's war with Iran.
Shipments of semiconductor equipment soared 53.8% from a year ago. Exports to Asia gained 22.7%; direct sales to the U.S. advanced 13.0%; and exports to China increased 17.6%.
Late-2025 government stimulus boosted domestic demand in June, and imports from China increased by 29.4%, Taiwan by 49.1%, South Korea by 32.2%, the U.S. by 52.7%, and the ASEAN region by 25.5%.
Crude oil imports soared 59.3% as Japan diversified energy procurement away from the Strait of Hormuz amid ongoing regional tensions.
Japan's trade balance swung to a deficit of 406.9 billion yen in June from a surplus of 122.3 billion yen in the same month a year earlier.
For the first six months, exports increased 13.7% to 60.7 trillion yen on robust shipments of vehicles to the European Union and semiconductors and other electronic devices, mainly to China.
Japan's imports advanced 25.4% to 11.4 trillion yen, marking the fifth consecutive month of increase and the strongest expansion since November 2022.
Crude oil imports in the first six months of 2026 declined 26.4% to 47.31 million kiloliters, according to the preliminary report by the Ministry of Finance.
Japan's international trade deficit of 1.01 trillion yen, or $6.2 billion, in the first six months to June, with the Middle East crisis and supply disruptions in the Strait of Hormuz affecting imports.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.13% to 66,149.11, and the broader TOPIX advanced 0.6% to 4,038.46.
Semiconductor- and AI-related stocks led gainers in Tokyo.
Kioxia Holdings increased 5.3% to ¥64,270.0; Murata Manufacturing Co. Ltd. advanced 3.6% to ¥8,317.0; Tokyo Electron weakened 0.9% to ¥65,960.0, and Advantest Corp. fell 0.2% to ¥29,585.0.
Nippon Yusen KK increased 1.3% to ¥5,818.0, Kawasaki Kisen Kaisha Ltd. gained 0.5% to ¥2,764.0, and Mitsui O.S.K. Lines jumped 2% to ¥5,783.0.
Positive Second Quarter Earnings Support Upward Bias On Wall Street
Barry Adams
21 Jul, 2026
New York City
U.S. investors remained sharply focused on corporate quarterly updates and overlooked escalating tensions in the Middle East.
The S&P 500 Index increased 0.6%, and the tech-focused Nasdaq Composite advanced 1.4% as investors reviewed the fresh batch of earnings.
General Motors, 3M, and Novartis advanced after releasing their quarterly updates, and investors awaited the release of updates from IBM, Alphabet, and Tesla later in the week.
So far, about 65 large-cap companies have better-than-expected quarterly results, and investors are still holding out for at least 20% earnings in the growth in the June quarter.
Investors are closely watching signs for the earnings outlook for the second half as resurgent inflation worries are dampening market sentiment.
The West Texas Intermediate crude oil price increased 1.2% to $83.45 a barrel, and the international Brent crude oil price edged up 1.5% to $90.40 as the U.S. and Iran continued their air strike campaigns.
Houthi rebels vowed to block Saudi Arabian commercial shipments through the Red Sea, adding to market anxieties and prolonging the disruption of energy product shipments from the Middle East.
U.S. Movers
General Motors increased 1.8% to $77.19 after the vehicle maker reported better-than-expected results in the second quarter.
Revenue increased 1.9% to $48 billion from $47.1 billion, net income attributable to shareholders decreased 31% to $1.3 billion from $1.9 billion, and diluted earnings per share declined 26% to $1.41 from $1.91 a year ago.
The company revised its adjusted earnings per share estimate for 2026 to between $12.0 and $14.0 from the previous range between $11.50 and $13.50.
3M Company jumped 6% to $168.21 after the diversified industrial company reported better-than-expected second quarter results and lifted its full-year earnings guidance.
Revenue increased 2.4% to $6.5 billion, diluted earnings per share rose 33% to $1.78 from $1.34, cash flow from operations was $1.0 billion, and the company returned $1.4 billion via dividends and stock repurchases.
The company revised its full-year 2026 guidance and raised its total sales growth estimate to at least 4.5%, and adjusted the earnings per share range between $8.80 and $8.95.
Novartis AG increased 3.1% to $154.26 after the Swiss pharmaceutical company's second quarter core earnings and revenue surpassed market expectations.
Novartis reported revenue of $144.41 billion and core earnings of $2.41, both surpassing market expectations.
The company said it is on track to achieve its full-year and mid-term estimates.
Positive Second Quarter Earnings Support Upward Bias On Wall Street
Barry Adams
21 Jul, 2026
New York City
U.S. investors remained sharply focused on corporate quarterly updates and overlooked escalating tensions in the Middle East.
The S&P 500 Index increased 0.6%, and the tech-focused Nasdaq Composite advanced 1.4% as investors reviewed the fresh batch of earnings.
General Motors, 3M, and Novartis advanced after releasing their quarterly updates, and investors awaited the release of updates from IBM, Alphabet, and Tesla later in the week.
So far, about 65 large-cap companies have better-than-expected quarterly results, and investors are still holding out for at least 20% earnings in the growth in the June quarter.
Investors are closely watching signs for the earnings outlook for the second half as resurgent inflation worries are dampening market sentiment.
The West Texas Intermediate crude oil price increased 1.2% to $83.45 a barrel, and the international Brent crude oil price edged up 1.5% to $90.40 as the U.S. and Iran continued their air strike campaigns.
Houthi rebels vowed to block Saudi Arabian commercial shipments through the Red Sea, adding to market anxieties and prolonging the disruption of energy product shipments from the Middle East.
U.S. Movers
General Motors increased 1.8% to $77.19 after the vehicle maker reported better-than-expected results in the second quarter.
Revenue increased 1.9% to $48 billion from $47.1 billion, net income attributable to shareholders decreased 31% to $1.3 billion from $1.9 billion, and diluted earnings per share declined 26% to $1.41 from $1.91 a year ago.
The company revised its adjusted earnings per share estimate for 2026 to between $12.0 and $14.0 from the previous range between $11.50 and $13.50.
3M Company jumped 6% to $168.21 after the diversified industrial company reported better-than-expected second quarter results and lifted its full-year earnings guidance.
Revenue increased 2.4% to $6.5 billion, diluted earnings per share rose 33% to $1.78 from $1.34, cash flow from operations was $1.0 billion, and the company returned $1.4 billion via dividends and stock repurchases.
The company revised its full-year 2026 guidance and raised its total sales growth estimate to at least 4.5%, and adjusted the earnings per share range between $8.80 and $8.95.
Japan's Nikkei 225 Closed up 3% Driven by a Rally in AI and Semiconductor Stocks
Akira Ito
21 Jul, 2026
Tokyo
Japan's indexes rebounded sharply as investors returned from a three-day weekend, tracking gains in computer chipmakers in overnight trading in New York.
The Nikkei 225 Stock Average gained nearly 3%, the broader TOPIX advanced more than 2%, and the yen hovered at 163.28 against the U.S. dollar.
Benchmark indexes in Tokyo rebounded from the following 8% loss in the previous week; however, investor sentiment remained muted amid escalating tensions in the Middle East.
The yen retained a downward bias, and traders prepared for the embattled currency to sink below the 167 level against the U.S. dollar before the year's end.
The Brent crude oil price stayed at a five-week high of $88.57 a barrel, supported by escalating tensions in the Middle East and further disruption of energy shipments through the Strait of Hormuz.
Japan Indexes and Stocks
The Nikkei 225 stock average jumped 2.8% to 65,923.13, and the broader TOPIX increased 2.1% to 4,002.74.
Kioxia Holdings increased 15% to ¥59,930.0, Tokyo Electron advanced 1.2% to ¥65,880.0, Taiyo Yuden gained 5.4% to ¥11,635.0, and Ibiden Co. jumped 8.5% to ¥17,025.0.
Nippon Yusen KK jumped .02% to ¥5,717.0, Mitsui OSK Lines gained 0.8% to ¥5,655.0, and Kawasaki Kisen Kaisha Ltd. inched higher 0.6% to ¥2,741.0.
Japan's Nikkei 225 Closed Up 3% Driven by a Rally In AI and Semiconductor Stocks
Akira Ito
21 Jul, 2026
Tokyo
Japan's indexes rebounded sharply as investors returned from a three-day weekend, tracking gains in computer chipmakers in overnight trading in New York.
The Nikkei 225 Stock Average gained nearly 3%, the broader TOPIX advanced more than 2%, and the yen hovered at 163.28 against the U.S. dollar.
Benchmark indexes in Tokyo rebounded from the following 8% loss in the previous week; however, investor sentiment remained muted amid escalating tensions in the Middle East.
The yen retained a downward bias, and traders prepared for the embattled currency to sink below the 167 level against the U.S. dollar before the year's end.
The Brent crude oil price stayed at a five-week high of $88.57 a barrel, supported by escalating tensions in the Middle East and further disruption of energy shipments through the Strait of Hormuz.
Japan Indexes and Stocks
The Nikkei 225 stock average jumped 2.8% to 65,923.13, and the broader TOPIX increased 2.1% to 4,002.74.
Kioxia Holdings increased 15% to ¥59,930.0, Tokyo Electron advanced 1.2% to ¥65,880.0, Taiyo Yuden gained 5.4% to ¥11,635.0, and Ibiden Co. jumped 8.5% to ¥17,025.0.
Nippon Yusen KK jumped .02% to ¥5,717.0, Mitsui OSK Lines gained 0.8% to ¥5,655.0, and Kawasaki Kisen Kaisha Ltd. inched higher 0.6% to ¥2,741.0.