US Stocks Rise on Strong Retail Sales, Netflix Leads Earnings

The Dow Jones Industrial Average rose 180 points or 0.4% while the S&P 500 increased 0.48% and the Nasdaq rose 0.79% on strong retail sales data and positive earnings from Netflix. The retail sales figures rebounded from a May drop, suggesting consumer confidence remains strong despite inflation concerns. Investors remain wary of Trump's threats to the Fed, which has been under pressure from the White House.

U.S. stocks closed higher on Tuesday, buoyed by strong retail sales data and positive earnings from Netflix. The Dow Jones Industrial Average rose 180 points or 0.4%, the S&P 500 increased 0.48%, and the Nasdaq rose 0.79%. The retail sales figures rebounded from a May drop, suggesting consumer confidence remains strong despite inflation concerns. Investors remain wary of Trump's threats to the Fed, which has been under pressure from the White House.

U.S. retail sales rose by 0.6% month on month in June, outpacing the 0.1% increase expected by economists. This indicates a robust consumer sector, which is crucial for economic growth. The jobless claims also declined for a fifth straight week, dropping 7k to 221k, which was lower than the expected 233k. This data supports the view that the Federal Reserve has the luxury of keeping interest rates unchanged until there is more clarity on Trump’s trade tariffs and their potential impact on the U.S. economy [1].

Netflix (NASDAQ:NFLX) reported after the close, with its stock rising ahead of the earnings release. The company is expected to post solid results with revenue rising 16% and EPS jumping 45% compared to the same period last year. The streaming sector continues to show strong growth, driven by increasing demand for content and services [1].

Meanwhile, Taiwan Semiconductor Manufacturing (TSMC) (NYSE:TSM) rose 3.4% after posting record profits in Q2, driven by increased demand for AI chips. PepsiCo (NASDAQ:PEP) also saw its stock rise over 2% after reporting core profit in Q2 that beat expectations. United Airlines (NASDAQ:UAL) fell over 1% after projecting weaker earnings in the current quarter due to operational constraints at Newark airport [1].

The U.S. Dollar is gaining traction as the market recovers from fears of Trump firing Fed Chair Powell. The EUR/USD is falling on USD strength, and as investors wait for further news on the EU-US trade deal. The GBP/USD is falling after UK jobs data showed unemployment unexpectedly rose to 4.7% a four-year high [1].

Oil prices are rising for a second consecutive day, despite global trade tensions showing signs of easing and oil inventories falling. Inventories plunged by 3.8 million barrels, significantly below the forecasted decline of 1.8 million barrels. This indicates solid demand in the oil market [1].

Investors remain cautious about the impact of Trump's trade tariffs and their potential impact on the U.S. economy. The Federal Reserve is expected to remain on hold for now, with the focus on the August 1st deadline for tariffs. The S&P 500 closed just shy of a record, reversing earlier losses [2].

References:
[1] https://www.investing.com/analysis/dow-jones-rises-after-upbeat-retail-sales-data-ahead-of-netflix-earnings-200663872
[2] https://www.morningstar.com/news/dow-jones/20250717493/dow-jones-top-markets-headlines-at-1-am-et-stocks-end-higher-after-trump-plays-down-intentions-to-fire-powell-trump