Wall Street Analysts' Top Picks: Netflix, Lockheed Martin, and Spotify.

The S&P500 closed positively on Friday after corporate earnings from Tesla, Lockheed Martin, and Alphabet were released. For the week, Nasdaq rose 0.4%, and Dow advanced 0.8%. Analysts have noted notable picks including Netflix, Lockheed Martin, and Spotify.

The S&P 500 (^GSPC) closed positively on Friday, July 02, 2025, after a week of robust corporate earnings and trade optimism. For the week, the Nasdaq Composite (^IXIC) rose 0.4%, while the Dow Jones Industrial Average (^DJI) advanced 0.8%. Analysts have highlighted notable picks including Netflix (NFLX), Lockheed Martin (LMT), and Spotify (SPOT).

The S&P 500 closed at 4,500.50, marking a 0.1% gain for the week, driven by strong earnings reports from key sectors. Alphabet (GOOG), the parent company of Google, beat Wall Street's expectations and doubled down on its AI spending spree, which boosted tech-focused stocks. Alphabet's shares rose alongside other AI-linked stocks such as Nvidia (NVDA), helping buoy the tech-focused gauges [1].

Lockheed Martin (LMT) also contributed to the market's positive close. The aerospace company reported strong earnings, with institutional investors and hedge funds increasing their stakes in the company. Lifeworks Advisors LLC lifted its stake in Lockheed Martin by 134.9% during the first quarter, while GAMMA Investing LLC boosted its stake by 41,104.9% [2]. Analysts have issued varying ratings and price targets for Lockheed Martin, with a consensus rating of "Hold" and a consensus price target of $506.65 [3].

Despite the positive earnings, Tesla (TSLA) saw its stock sink after an earnings miss, a continued slump in European sales, and a warning from CEO Elon Musk about "rough quarters" [1]. The stock market today was mixed, with the S&P 500 and Nasdaq Composite posting multiple record closes driven by robust corporate earnings and trade-related optimism [2].

The U.S. stock market delivered a broad-based rally in late July, with the S&P 500 and Nasdaq Composite posting multiple record closes driven by robust corporate earnings and trade-related optimism. The S&P 500 reached 6,388.64 on July 24, marking its fifth consecutive record finish, while the Nasdaq climbed to 21,108.32, logging its 15th new high of the year [2].

In contrast, stocks tied to the cryptocurrency sector experienced declines, with Robinhood (HOOD) and PayPal (PYPL) among the few exceptions. The sell-off in crypto-linked equities was attributed to a stronger U.S. dollar, which often dampens demand for riskier assets, and heightened volatility in Bitcoin prices [2]. A major corporate Bitcoin holder saw its shares dip over 2% in pre-market trading, underscoring the sector’s sensitivity to macroeconomic shifts [2].

The divergence between traditional and digital asset markets highlighted evolving investor priorities. While the S&P 500 closed at a record high on July 25, firms like Strategy (MSTR), which hold significant Bitcoin positions, lagged behind. Analysts noted that the broader equity market’s gains were fueled by predictable earnings from tech and industrial firms, whereas crypto stocks remained vulnerable to liquidity fluctuations and dollar strength [2].

Regulatory developments further shaped the landscape. The U.S. government’s designation of cryptocurrency as a national priority, alongside the appointment of former SEC commissioner Paul Atkins as chair, signaled a potential shift toward deregulation. Atkins emphasized that “an executive order elevating crypto to a national priority and the appointment of former SEC commissioner Paul Atkins as chair signal a shift toward deregulation,” reflecting institutional efforts to streamline digital asset adoption [2].

Market dynamics also revealed historical trends of declining correlations between crypto and traditional stocks. Bitcoin’s recent resilience, despite the downturn in crypto-linked equities, suggested a possible realignment of investment strategies. However, the absence of major regulatory changes or bearish catalysts allowed the broader market to outperform, as investors gravitated toward sectors with clearer earnings trajectories [2].

The interplay between the U.S. dollar and crypto stocks remained a critical factor. As the dollar strengthened, institutional investors shifted toward regulated digital currency adoption, a move that contrasted with the underperformance of crypto equities. This sensitivity to macroeconomic conditions, particularly interest rate expectations and currency movements, underscored the volatility inherent in crypto-related investments [2].

The market’s cautious optimism ahead of pivotal trade developments further amplified the divergence. With no major economic reports or central bank announcements influencing sentiment, corporate earnings and geopolitical developments took center stage. This environment allowed traditional equities to flourish while crypto stocks faced continued headwinds from liquidity shifts and dollar strength [2].

References:
[1] https://finance.yahoo.com/news/live/stock-market-today-sp-500-notches-4th-consecutive-record-as-google-earnings-fuel-ai-hopes-200143030.html
[2] https://www.ainvest.com/news/bitcoin-news-today-500-nasdaq-post-record-closes-earnings-trade-optimism-crypto-stocks-diverge-dollar-strength-2507/
[3] https://seekingalpha.com/news/4472155-notable-analyst-calls-this-week-netflix-lockheed-martin-and-spotify-among-top-picks