Week of 07/17-07/21 Mixed Corporate Earnings, Dow climbs higher

Stock ended up flat this week after mixed corporate earnings created volatility in the markets. The Dow Jones Industrial Average pushed into positive territory once again, which marks its 10th straight day winning streak in six years. The Nasdaq booked a 30 point loss for the week and the S&P 500 remained almost unchanged since last Friday with less than 0.01% gain (1.47 points).

More than 75% or the S&P 500 companies already reported earnings for Q2 and are below a combined three year average of 80%. One of the biggest surprises for this week was Tesla earnings, as the stock did not experience a boost as investors expected from to EV deliveries reported earlier this quarter. Tesla's high operating costs affected its margins and caused the stock to fall almost 10% on Thursday. Another highlight from this week was from Taiwan Semiconductor Manufacturing Company, TSMC, reporting its first quarterly decline in 4 years. This announcement from the largest chipmaker in the world caused other stocks in the same sector to decline. TSMC produces chips for the biggest companies in consumer electronics and stated their earnings decline was driven by macroeconomic conditions causing decreased demand for electronics.

Corporate earnings continue next week and the Federal Reverse is holding their July meeting to announce their position on inflation. Speculations are running high from economic reports giving investors hopes for another pause on interest rate hikes. The FED also launched their FedNow service which eliminates the settlement period for cash transfers between individuals. FedNow settles directly central banks rather than peer-to-peer services line Venmo or Paypal which act like intermediaries between banks. Currently there are 35 banks and credit unions utilizing this service and FedNow plans to keep expanding into other institutions.