What happened last week…
The S&P 500 and NASDAQ notched back-to-back weekly gains as both continued to achieve new record highs. President Donald Trump announced a trade agreement between the United States and Japan and over the weekend with the EU. Exports to the United States will have a 15% reciprocal tariff while auto tariffs will be reduced to 15% from the current rate of 25%. Japan will invest $550 billion into the United States.
Existing home sales for June reached 3.93 million. Meanwhile, new home sales for June increased to 627,000 from 623,000.
According to FactSet, as of July 25, for Q2 2025, 34% of S&P 500 companies reported earnings with 80% having a positive EPS surprise and 80% having a positive revenue surprise. The blended earnings growth for the S&P 500 is 6.4%. The blended revenue growth for the index is 5.0%, which would be the 19th consecutive quarter of growth for the index.
This week…
On Wednesday, the Federal Open Market Committee will make its interest rate decision. According to the CME FedWatch Tool, as of July 25, there is a 97.4% probability that rates will remain at 4.25% to 4.50%.
On Wednesday, the GDP growth rate(first estimate) for Q2 2025 is expected to be 2.5%, up from the Q1 2025 reading.
On Wednesday, the ADP employment change may increase to 75,000. On Friday, the unemployment rate is expected to be 4.2%,nonfarm payrolls are forecasted to be 102,000, and average hourly earnings month-over-month are expected to increase to 0.3% from 0.2%.
On Friday, the manufacturing PMI for July is expected to increase to 49.6 from 49.0, which is tied for the highest reading in four months.
Thanks for reading!
- The Rockline Team
Rockline Wealth Management (RWM) is a registered investment adviser located in Islip Terrace, NY. RWM is registered with the U.S. Securities and Exchange Commission. Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission.
The information presented above is for informational purposes only and believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed.