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.