Market Update
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.
Chinese Insurance Companies and Investment Funds Step Up Purchases Under Beijing's Directive
Li Chen
21 Jul, 2026
Hong Kong
China's benchmark indexes edged higher after regulators stepped up efforts to shore up faltering market sentiment.
The Hang Seng Index edged lower 0.5%, and the mainland-focused CSI 300 Index rebounded more than 1% after two state-controlled investment holding companies disclosed new purchases.
China's securities regulator moved to soothe market sentiment and signaled additional steps to stabilize market operations, and about 40 listed companies announced stock repurchase plans.
The state-controlled China Reform Holdings and China Chengtong Holdings increased their allocations to domestic Chinese corporations by 60 billion yuan and vowed to expand holdings to help stabilize markets.
In addition, five state-controlled Chinese insurance companies, including Ping An Insurance Group and People's Insurance Group, highlighted the long-term investment potential of Chinese stocks.
The leading exchange-traded funds tracking mainland-benchmark indexes experienced a surge in trading volume, confirming the regulatory intervention.
AI startups are increasingly exploring stock listings, as the tech-focused companies ramp up technology development and commercialize new products.
DeepSeek, Moonshot AI, and 01.ai are in early talks with investors while exploring public listing and other financing alternatives.
China Indexes and Stocks
The Hang Seng Index decreased 0.2% to 25,093.82, and the mainland-focused CSI 300 Index advanced 1.3% to 4,655.85.
Hygon Information Technology gained 4.7% to ¥334.88, Cambricon Technologies gained 8.5% to ¥1,311.98, and Zhongji Innolight soared 9.6% to ¥1,099.87.