The closing levels on Wall Street speak for themselves: both the S&P 500 and the Nasdaq closed at record highs yesterday, highlighting the strong momentum currently driving U.S. markets. The S&P 500 rose by 0.54%, while the Nasdaq 100 gained 0.76%, boosted in large part by strength in major tech names. Taiwan Semiconductor (TSMC) added further fuel to the rally with outstanding quarterly results.
 
European markets also attempted a robust rebound, looking to maintain their lead over Wall Street since the start of the year. Amsterdam was lifted by gains in Be Semiconductor, ASML Holding, and ASM International, finishing up 1.37%. A special mention for Belgian investors: 19 of the 20 components in the BEL20 ended in the green, helping the index rise by 1.13%. Broader gains were seen across Europe, with Frankfurt up 1.51%, Paris 1.29%, Milan 0.92%, and London 0.52%. The industrial sector led the way, particularly aerospace (Airbus, Safran), defense (Rheinmetall, Leonardo, Thales), and electrical equipment (Siemens, Schneider Electric, Legrand).
 
On the macro side, yesterday’s U.S. data supported the Federal Reserve’s cautious stance. Retail sales rose 0.6% in June, beating expectations, while weekly jobless claims came in below forecasts at 221,000 versus the anticipated 235,000. These figures reflect the ongoing strength of the U.S. economy and the resilience of American consumers. Adding to the positive tone, the Philly Fed index surged to 15.9 in July, up from -4 in June, pointing to improving business sentiment in the region. While trade policy uncertainties remain, these indicators strengthen the case for the Fed to hold off on any near-term rate changes and continue monitoring how the current environment plays out.
 
On the earnings front, reports continue to roll in. Netflix made headlines after raising its revenue guidance during last night’s release. While today’s corporate calendar is lighter, we’re still watching names like BHP and American Express. On the macro side, the only major release is the U.S. consumer confidence index, which should offer a fresh look at household sentiment.
 
Lastly, a quick reminder: today is the third Friday of the month - monthly options expiration day. This often leads to some volatility and technical repositioning during the afternoon session.

In Asia-Pacific, indexes are moving in different directions. Hong Kong is up 1.33%, while the Australian ASX is being driven by mining stocks and is up 1.37%. The Japanese market is less buoyant, down around 0.19%. South Korea is also losing ground. The Bombay index is looking gloomy, down 0.57%, weighed down by its financial stocks. 

Today's economic highlights:

A slightly lighter schedule to end the week. Housing starts and building permits released at 8:30 a.m., followed by consumer confidence at 10:00 a.m. See the full calendar here.

In corporate news:

  • American Express reported better-than-expected Q2 2025 earnings on Friday.
  • Blacksky technology lowered its 2025 financial targets on Thursday and said it is seeking to raise capital.
  • Chevron is set to acquire Hess for $53 billion, according to CNBC, after winning a landmark legal battle against Exxon Mobil over access to the largest oil discovery in decades.
  • Meta platforms – WhatsApp may be preparing to exit the Russian market, according to a member of the State Duma, warning the app could soon be listed as restricted software.
  • Netflix posted stronger-than-expected Q2 earnings on Thursday and raised its full-year profit guidance.
  • Sarepta therapeutics is down 16.5% premarket after Bloomberg reported that a patient died from liver failure following an experimental gene therapy—the third such death this year.
  • Slb missed Q2 2025 earnings expectations on Friday, citing weakness in its international operations.
  • Talen energy is up 14% premarket after announcing the $3.5 billion acquisition of two power plants in Pennsylvania and Ohio.
  • Viatris announced Friday that its experimental eye ointment failed to meet the primary goals in a late-stage study on inflammatory eye disease.

Analyst Recommendations:

  • Abbott Laboratories: Jefferies upgrades from Hold to Buy and raises the price target from $143 to $145.
  • Apa Corporation: Wells Fargo maintains Equal Weight and lowers the price target from $21 to $20.
  • Cintas: JP Morgan maintains Overweight and raises the price target from $239 to $246.
  • Citizens Financial Group: D.A. Davidson maintains Buy and raises the price target from $49 to $55. RBC Capital maintains Outperform and raises the target from $44 to $51.
  • Dell Technologies: Goldman Sachs maintains Buy and raises the price target from $130 to $140.
  • Elevance Health: Guggenheim maintains Buy but lowers the price target from $447 to $360.
  • First Financial Bankshares: Keefe Bruyette & Woods maintains Market Perform and raises the price target from $36 to $38.
  • GE Aerospace: Wolfe Research maintains Outperform and raises the price target from $260 to $280.
  • Interactive Brokers Group: Keefe Bruyette & Woods maintains Market Perform and raises the price target from $59 to $63.
  • M&T Bank: Citigroup remains Neutral and raises the price target from $212 to $215.
  • Netflix: Guggenheim maintains Buy and raises the price target from $1,400 to $1,450.
  • PepsiCo: Goldman Sachs maintains Buy and raises the price target from $160 to $165.
  • Progressive: Goldman Sachs maintains Buy but lowers the price target from $305 to $280.
  • Synovus Financial: Goldman Sachs maintains Neutral and raises the price target from $56 to $61. 
  • The Allstate: Goldman Sachs maintains Buy but lowers the price target from $236 to $226.
  • Union Pacific: Deutsche Bank maintains Buy and raises the price target from $243 to $272.
  • United Airlines Holdings: Bernstein maintains Outperform and raises the price target from $104 to $113.
  • Webster Financial: Raymond James maintains Outperform and raises the price target from $65 to $68.