One or two punch of strong earnings and Tamil inflation helped to bring the S&P500 to a positive week-Shukrawar put a minor sponge on the action despite the latest tariff news. The broad index added 0.59% to the week led by technology, utilities and industrial, while Tech-Havi Nasdaq performed better, jumping 1.51%. Meanwhile, Dow Jones Industrial Average ended slightly in the negative area, 0.07% below, after falling 142 points on Friday, on a report that President Donald Trump was emphasizing between 15% to 20% tariffs in any deal with the European Union. The main economic incident of the week took place on Tuesday, in which the June Consumer Price Index was released. The headline CPI reading tracked the expectations, which is growing at 2.7% year -on -year. However, the core index, which removes food and energy due to its high level of instability, came down slightly below the expectation of 2.9% versus 3.0%. This was not an ideal report, though. Importantly, the shelter cost index was up to a year to 3.8%. In the 12 -month period ending in May 2025, we saw less than what we saw and less than trending correctly, it is still above the overall rate of inflation. For that reason, it is problematic because the Federal Reserve threads the needle amidst maintaining value stability – which requires high rates to address issues such as shelter costs – and keeping unemployment low. Fortunately, for some time, the dynamics of the labor market are in favor of the Fed, the unemployment rate is coming at 4.1%, by June, and the initial unemployed claims are now falling for five direct weeks. As a result, according to the market, CME Fedwatch Tool, it continues to believe that the Fed will keep its benchmark borrowing rate stable at the end of July, although the base case remains that we will probably see two cuts by the end of the year. More good news on inflation came on Wednesday when the June manufacturer price index decreased slightly from the expectations on both the headline and the core reading. Known as PPI, the gauge tracks bulk inflation and is seen as a major indicator for CPI, providing information about what the goods producers are paying for their input. If their cost is increasing, then eventually we see all in shops. It is too early to take a final decision on how much tariff consumers are tricking prices, even though the overall impact so far seems to be subdued. Below the surface of the CPI report, some tariff-sensitive goods categories, such as household goods and supply, increased rates above the headline level. At the same time, within the PPI report, we saw a decline of 0.1% in the final demand services, which was more than an increase of 0.3% in the final demand goods. Keeping all this together, the tariff effect has thus proved to be very managed so far – for now. It is possible that the effect increases over time. As a result, while we think the rates should eventually come down, we do not think the fed chair will be wrong to maintain the Zerome Powell Rate where they are now because we wait to roll for another month of data. This week, in other positive economic updates, June was read a better-and-more preferred on Industrial Production and Capacity Use. The minimum-preferred initial unemployed claims for the week ending on June 12; Strong June retail sales on June housing, and a little beat begins. Earning was the other big story of the week, and the results were overall supporters of the idea that companies are cleverly navigating the difficult economic moment. For the club’s earnings, we had some hits and mrs, although there were no real thesis-changing events. On Tuesday morning, we were wrong to think that Wales Fargo could increase its net interest income approach. Did not deny it. However, we are not changing our views, because we like why we were wrong. Instead of focusing on the net interest part of your business, which is highly dependent on the interest rates and therefore more than the control of management-the fee of the team is moving deeply in the fee-based side, which is more estimated. After the report fell around 5.5% in the report on Tuesday, Wales Fargo shares increased by 2.3% in the last three days of the week, which was nice to see after the initial market response. Blackrock was also clubbed even when it released the second quarter results on Tuesday, drowned 5.9%. While the asset management veteran recalled revenue, we argued that the sellers were short -sighted and failed to appreciate things like strong organic development in fee revenue. They were also not considering the transformational acquisition of private credit manager HPS acquisition, which was not in Q2 results as it did not close until 1 July. The deal stands to give a significant boost to the moving business. Indeed, our more optimistic reid on Blackrock’s report proved to be correct. Stock quickly bounced back before the session was slightly reduced, touched a fresh all-time intrade high Friday on Friday. Our final financial of the week to report, Goldman Sachs produced very strong results. Despite a TEPID stock response, investors should not ignore the combination of excellent execution, high levels of additional capital, and half of the year. As we do our work in 2026, those three factors support high stock price. Goldmanman seated about 2% at a high level of its all-time closing of around $ 724 per share on 3 July. Abbott Labs stood on Thursday of the week, with a top and bottom line reported with a strong organic growth to a top and bottom line. However, the stocks dives 8.5% as the management failed to increase its approach to the entire year’s earnings, directed below the expectations for the current earnings, and shaved its approach to the entire year biological sales growth. It was not the kind of print we expect from Abbott. However, we appreciate CEO Robert Ford to come on “Mad Money” to closely look at the quarter and the path forward. This increased our determination to stick with the name. We are hardly alone on Wall Street, many analysts are coming to protect the stock on Friday. In fact, Jefferies analysts actually took shares as an opportunity to upgrade shares in a purchase rating. Abbott’s shares on Friday added 2.6%, overtaking some of the lost boxes in Thursday’s sell-off. (Jim Cramer’s Charitable Trust is Long WFC, GS, BLK and Abbott. See here for a complete list of shares.) As a customer of the CNBC Investing Club with Jim Cramer, you will receive a business alert before the gym. The Jim waits 45 minutes after buying or sending a trade alert before buying or selling a stock in its charitable trust portfolio. If the gym has talked about a stock on CNBC TV, he waits 72 hours after issuing a business warning before executing the business. The information of the above investment club is subject to our terms and conditions and privacy policy, along with our replication. Based on the receipt of any information provided in relation to the investment club, no obligation or duties exist, or are created. No specific results or benefits are guaranteed.
Don’t judge the quarter too quickly
BY Anuragbagde69@gmail.com
- July 19, 2025
- 0 Comments
- 6 Views
- Read in 6 Minutes
