Stocks Edge Higher At Midday As Earnings Fuel Sentiment

Last updated: roughly 12:30 p.m. ET, Monday, July 21, 2025

Introduction#

Wall Street is extending its early-session momentum into the lunch hour, buoyed by better-than-expected earnings from bellwethers such as VZ and a batch of well-received outlook revisions across basic-materials names. All three major U.S. benchmarks notched fresh intraday highs—a feat underscored by the S&P 500 (^SPX) crossing 6,335 for the first time—before settling into a narrower range as traders digested mixed macro datapoints and looming tariff deadlines.

According to Reuters and CNBC midday tick data, the advance remains fairly broad, although clear pockets of rotation are emerging: money is moving out of Energy and into defensive Utilities and Communication Services, while Basic Materials is enjoying a revival on the back of eye-catching beats from steelmaker CLF and gold-miner NEM. Meanwhile, volatility gauges (^VIX and ^RVX) are leaking lower, suggesting investors remain comfortable adding risk even as headline risk around trade policy intensifies.

Market Overview#

Intraday Indices Table & Commentary#

Ticker	Current Price	Price Change	% Change
^SPX	6,335.52	+38.73	+0.62%
^DJI	44,596.15	+253.95	+0.57%
^IXIC	21,057.01	+161.36	+0.77%
^NYA	20,639.34	+97.78	+0.48%
^RVX	23.87	-0.05	-0.21%
^VIX	16.35	-0.06	-0.37%

The NASDAQ Composite (^IXIC) again leads, lifted by a 2.33% pop in GOOG and a 1.17% rise in AAPL. That tech strength is complemented by Communication Services’ out-performance—a sector paced by VZ jumping +5.33% after crushing Q2 estimates (source: Zacks, 11:16 a.m. ET).

The S&P 500’s record climb is notable given a chorus of cautionary seasonality pieces—BTIG and others referenced by MarketWatch remind investors that the back half of summer often delivers a 7–10% pullback. Yet for now, options-derived fear readings remain subdued: the VIX is holding near 16, well below its 50-day average of 18.31.

Macro Analysis#

Economic Releases & Policy Updates#

Morning data offered a modest speed bump. The Conference Board’s Index of Leading Economic Indicators fell -0.3% in June versus the -0.2% consensus (CNBC, 10:52 a.m. ET). While the miss did little to derail equity momentum, it reinforces the narrative of a slowing—but not stalling—U.S. expansion as higher prices bite.

More consequential is the policy backdrop: Treasury Secretary Scott Bessent told CNBC mid-morning that raising tariffs on August 1 “puts more pressure on trade partners” for favorable deals. Reuters headlines carried similar language, and markets barely flinched—underscoring how investors have largely compartmentalized political noise unless or until real supply-chain dislocations surface.

Global/Geopolitical Developments#

Beyond Washington, Brussels is laying the groundwork for a potential retaliatory package should the U.S. tariff hike materialize (Morning Brief, 10:32 a.m.). Equity traders appear content to see that as a late-summer problem; FX desks, however, are more alert—EUR/USD is flirting with technical breakdown levels, while Bitcoin steadies around $118,700 after last week’s blow-off top (FX Empire).

Sector Analysis#

Sector Performance Table (intraday change since the open)#

Sector	% Change (Intraday)
Basic Materials	+2.04%
Communication Services	+1.28%
Technology	+0.70%
Financial Services	+0.50%
Consumer Cyclical	+0.37%
Real Estate	+0.11%
Healthcare	+0.11%
Industrials	-0.14%
Consumer Defensive	-0.23%
Energy	-1.04%
Utilities	-1.05%

Basic-Materials’ leadership is textbook “catch-up rotation.” A 13.45% spike in CLF after it narrowed Q2 losses and cited tariff tailwinds (company call, 11:00 a.m.) has investors reassessing steel capacity utilization and the prospect for firmer commodity pricing. Gold miners such as NEM add shine, benefiting from a softer dollar and haven demand.

In contrast, Energy is the session’s punching bag—natural-gas heavyweight EQT is off -7.75% as Henry Hub prices retrace last week’s rally, while upstream niche player EXE slides almost -7%. A move in West Texas Intermediate below $79/bbl reinforced profit-taking across the space.

Technology, though positive, is masking stock-specific drama. Simulation-software maker ANSS is down -4.69% on whispers of delayed defense contracts, offset by cybersecurity darling PANW surging +3.16% after a large cloud-security win reported by Bloomberg.

Company-Specific Insights#

Midday Earnings & Key Movers#

Verizon leads the tape: The telecom giant beat on both top- and bottom-line results, posting Q2 EPS of $1.22 versus $1.18 consensus on revenue of $34.5 billion. Management raised FY25 EPS guidance, citing “solid wireless traction” despite government contract churn (company press release, 8:00 a.m.). The stock’s +5.33% jump is lifting the broader Communication Services cohort, and—importantly—pushing the Dow higher given Verizon’s price-weighted influence.

Cleveland-Cliffs surprises the Street: CLF narrowed its loss to -$0.50 a share (est. -$0.61) on $4.93 billion revenue, crediting both cost controls and “positive tariff effects.” The 26.5% earnings-surprise metric and upbeat demand commentary lit a fire under peer STLD, which is up +2.72%.

Healthcare is mixed: Bristol Myers Squibb (BMY trades -1.09% despite Truist’s price-target hike to $84, as investors focus on near-term revenue drag ahead of Sotyktu expansion plans. Conversely, HUM gains +1.34% as defensive managed-care names find buyers.

Tech earnings loom: Anticipation is building for Wednesday, when TSLA and Alphabet deliver Q2 prints. Tesla shares are flat (-0.02%) as analysts debate the contribution from energy storage and FSD subscriptions; Cantor Fitzgerald reiterated a $355 target this morning. Alphabet adds +2.33% on optimism around ad-market resilience.

Regional banks calm nerves: FNB edges up +0.34% after Keefe Bruyette reaffirmed an Outperform rating and lifted its target to $18.50, noting “profitability and capital at new highs.”

Extended Analysis#

Intraday Shifts & Momentum#

From the open through midday, market texture has been defined by rotation rather than outright risk-off or risk-on swings. Early futures action suggested caution (Dow +0.3% pre-mkt per Investing.com), yet by 10:00 a.m. earnings beats overwhelmed macro jitters, and the momentum carried through. Three dynamics stand out:

1. Earnings vs. Valuation Debate: With 15% of S&P constituents now reported, the beat rate sits at 88% (source: StreetAccount). More importantly, the magnitude of surprises—most evident in Verizon and Cleveland-Cliffs—is high enough to keep valuation hawks at bay… for now.
2. Sector Rotation Intensifies: A gradual flow from mega-cap Tech into Materials and Comm Services echoes commentary from DWS’ David Bianco (CNBC, 12:07 p.m.), who says the economy doesn’t need rate cuts right now. As real yields inch higher, investors prefer tangible cash-flow generators over concept stocks.
3. Volatility Compression: Both the VIX and RVX remain south of their 50-day averages, even as strategists warn of a late-summer pullback. Risk desks note that option-skew has cheapened, implying traders are less eager to pay up for downside protection ahead of the tariff deadline. That complacency is worth monitoring.

Conclusion#

Midday Recap & Afternoon Outlook#

In sum, U.S. equities head into the back half of Monday’s session on solid footing. Record index prints, robust beats from VZ and CLF, and a calm volatility backdrop form the bullish trifecta. Offsetting that optimism are weak Energy tapes, a soft Leading Indicators print, and the August 1 tariff sword hanging overhead.

Traders will spend the afternoon watching:

• Tesla and Alphabet earnings positioning—options skew suggests the Street is bracing for ±6% moves.
• Capitol Hill tariff chatter—any hint of delay could spark an end-of-day chase.
• Crude-oil stability—a fresh breakdown below $78 could deepen Energy under-performance and weigh on cyclicals.

Key Takeaways#

1. Indices at record highs despite mixed macro signals highlight the primacy of earnings execution in this market tape.
2. Sector rotation favors Basic Materials and Communication Services; Energy and Healthcare are lagging.
3. Volatility is subdued, but positioning ahead of tariff deadlines and mega-cap earnings remains fluid.
4. Company stories matter: Verizon’s clean beat and Cliffs’ tariff-aided rebound underscore the importance of idiosyncratic catalysts amid broader narratives.

With that, investors should stay nimble: protect gains in stretched Tech names, consider opportunistic exposure to Materials momentum, and keep a close eye on Washington’s tariff clock as the next major catalyst.