Earnings Scorecard: Over 90% of Companies Beat EPS Estimates, Banks Shine

Over 90% of companies beat EPS estimates this week, with big wins from banks, contributing to a positive earnings season. The S&P 500 and Nasdaq reached record closes, driven by the retail sales report and earnings releases. Markets opened higher on Friday, with the S&P and Nasdaq notching record closes.

The financial markets have experienced a robust week, with both the S&P 500 and Nasdaq reaching record closes on July 17, 2025. This performance was driven by a combination of strong economic data and a positive earnings season, with over 90% of companies beating EPS estimates, particularly in the banking sector [3].

The S&P 500 and Nasdaq Composite both closed at record highs, with the S&P 500 finishing at 6,297.36 and the Nasdaq at 20,884.27 [1]. The Dow Jones Industrial Average also ended higher, rising 229.71 points, or 0.52%, to 44,484.49 [1].

Strong retail sales data and upbeat earnings reports from consumer-facing companies like PepsiCo and United Airlines contributed to the market's positive sentiment [1]. Additionally, technology stocks were buoyed by TSMC's record quarterly profit, indicating strong demand for AI chips [1].

The positive earnings season continued into Friday, with over 90% of companies reporting earnings that exceeded analysts' expectations. The banking sector, in particular, showed significant gains [3]. Despite ongoing tariff tensions, the retail sales report indicated that consumer spending habits remain resilient [1].

The University of Michigan consumer sentiment survey showed one-year inflation expectations plunging to 4.4% from 5% in June, which initially trimmed the market's early gains [3]. However, the overall positive sentiment from earnings and economic data outweighed this concern, leading to a strong market close on Friday.

The record highs and positive earnings season have provided investors with a strong backdrop for further market gains. As the earnings season continues and more economic data is released, the markets will likely remain focused on the resilience of consumer spending and the impact of tariffs on the economy.

References:
[1] https://www.reuters.com/business/sp-500-nasdaq-end-fresh-record-highs-data-earnings-point-consumer-strength-2025-07-17/
[2] https://www.marketpulse.com/markets/sp-and-nasdaq-back-to-record-highs-market-wrap-for-the-north-american-session-july-17/
[3] https://www.ainvest.com/news/earnings-season-surges-90-companies-beat-eps-estimates-banking-sector-wins-2507/