Tuesday, July 22, 2025
The S&P 500 has tiptoed to another record closing high this afternoon, to 6309 for the first time ever — up from the 6305 closing price yesterday. The Dow and the Nasdaq were on either side of today’s flat market: +179, +0.40% on the former and -81 points, -0.39% the latter. The small-cap Russell 2000 led the major indexes for the session, +17 points, +0.79%.
Homebuilders enjoyed their best trading day in recent memory following D.R. Horton DHI and Pulte Home PHM outpacing expectations in this morning’s earnings reports. Gross margins for DHI came in better than anticipated, and even with guidance narrowed, shares rose +16.8% for the session. Pulte saw an increase in new orders, and shares gained +11.8%. The iShares Home Construction ETF (ITB) advanced +7.88% today.
Lots of this improved sentiment may be coming from expectations that interest rates are about to come down at the Federal Reserve, if not at next week’s meeting then certainly at the Fed’s next one in September. Higher interest rates keep mortgage rates at high levels, prohibiting entry-level homebuyers into the market. Expectations are — today, at least — that these days are numbered.
Q2 Earnings Results After Today’s Closing Bell
Texas Instruments TXN surpassed projections on both top and bottom lines in its Q2 report after today’s close, with earnings of $1.41 per share coming in 9 cents ahead of the Zacks consensus, while quarterly revenues of $4.45 billion surged past the $4.31 billion analysts had been expecting. Guidance was raised somewhat, but not to the levels one might expect with such big quarterly beats. Shares are -7% in late trading.
Capital One Financial COF swept past earnings estimates this afternoon — a bottom line of $5.48 per share was well ahead of the $3.83 anticipated, with revenues of $12.49 billion above the $12.22 billion expected. This is perhaps a tough quarter to assess for the credit card giant, as its Discover acquisition is still being digested through its system. Shares are up +1.5% on the news in the after-market.
What to Expect from the Stock Market Wednesday
Existing Home Sales for June are expected to dip just a tad to 4.0 million seasonally adjusted, annualized units. This would bring us back down to levels not seen since October of last year. In the previous report from this metric, the Northeast grew the fastest, +4.2%, followed by the Midwest at +2.1% and the South -1.7%. The West was the only region in the negative, -5.4% a month ago.
It will also be an eventful day for earnings reports tomorrow, mostly after the market close. Not only headliners like Google-parent
Alphabet GOOGL and
Tesla TSLA, but
IBM IBM,
Chipotle CMG,
Southwest Airlines LUV,
ServiceNow NOW and
Las Vegas Sands LVS are all expected to post results Wednesday afternoon.
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Texas Instruments Incorporated (TXN): Free Stock Analysis Report International Business Machines Corporation (IBM): Free Stock Analysis Report Southwest Airlines Co. (LUV): Free Stock Analysis Report Capital One Financial Corporation (COF): Free Stock Analysis Report Chipotle Mexican Grill, Inc. (CMG): Free Stock Analysis Report Las Vegas Sands Corp. (LVS): Free Stock Analysis Report PulteGroup, Inc. (PHM): Free Stock Analysis Report D.R. Horton, Inc. (DHI): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report ServiceNow, Inc. (NOW): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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