Traders work on the floor of the New York Stock Exchange (NYSE) on July 11, 2025 in New York City.
Spencer Platt | Getty Images
Stocks rose on Wednesday after President Donald Trump announced the U.S. had reached a trade deal with Japan, lifting hope for further agreements being made.
The Dow Jones Industrial Average traded 413 points higher, or 0.9%. The S&P 500 climbed 0.5% and had hit a new all-time intraday high, while the Nasdaq Composite rose 0.2%.
Trump said in a Truth Social post Tuesday night that the U.S. had completed a “massive Deal” with Japan. The agreement includes “reciprocal” tariffs of 15% on the nation’s exports to the U.S. The president also said the U.S. is meeting with European officials in a push to reach a trade deal with the European Union.
Stocks received a bit of a boost later Wednesday after the Financial Times reported that the U.S. and the European Union are closing in on a 15% tariff agreement. The report said that the agreement would mirror the U.S.-Japan deal.
The U.S. has been looking to reach trade deals with other countries ahead of an Aug. 1 deadline. This comes after Trump on April 2 sent markets into turmoil, with his announcement of sweeping tariffs.
“The market has more and more certainty of the scenario and the foreign trade policy that U.S. corporations have operated in, and global corporations frankly, and that’s led to where we are now at all times,” Keith Buchanan, senior portfolio manager at Globalt Investments, said to CNBC. “We feel like that will be the most likely scenario that paints a picture of stocks moving more.”
“As long as the margin picture is intact and there’s … more clarity around trade policy, that’s positive for the markets,” he continued.
Wednesday’s moves follow a second straight day concluding at a high for the S&P 500, and Tuesday marked the 11th closing record of 2025 for the benchmark index. The 30-stock Dow also climbed in the session, but the tech-heavy Nasdaq Composite fell as chip stocks took a hit.
The run to new highs has sparked so-called animal spirits on Wall Street, with shares of small companies with brand names and questionable finances getting a bid higher. Kohl’s surged on Tuesday and GoPro and Krispy Kreme were jumping on Wednesday.
Investors are awaiting earnings from Alphabet and Tesla expected Wednesday after the bell. They are the first reports of the earnings season from the megacap technology sector, a group that’s been closely watched given its market leadership in recent years.
Beyond big tech, investors will also monitor reports from Chipotle Mexican Grill and Mattel after the market closes. These releases come amid a busy earnings week. Of the 105 S&P 500 companies that have reported so far this season, more than 86% have posted earnings that surpassed Wall Street’s expectations, per FactSet.
U.S. and EU reportedly nearing 15% tariff agreement
The U.S. and the European Union are getting closer to a trade deal that would impose 15% tariffs on imported goods coming to the U.S. from Europe, the Financial Times reported Wednesday, citing three people familiar with the situation.
The report said that the EU could agree to the duties to avoid President Donald Trump’s threat of increasing levies on the bloc to 30%, effective Aug. 1.
The deal would waive tariffs on certain products – such as aircraft, spirits and medical devices – for both countries, according to the people.
— Sean Conlon
Stats for Alphabet, Tesla, IBM ahead of this afternoon’s earnings
Tech stalwarts Alphabet, Tesla and IBM will all report their earnings after Wednesday’s bell.
Ahead of these reports, here are some stats on each of the stocks.
Alphabet
- Alphabet is on track to snap a 10-day win streak
- Shares are on pace to notch their fifth positive week and their fourth positive month in a row
- According to FactSet, the average price target on Alphabet is $204.68, suggesting 8% upside
- According to VettaFi, 414 ETFs have Alphabet within their top 15 holdings
Tesla
- Tesla is currently trading at its highest level in a month
- Shares are on pace to post their first back-to-back weekly gains since mid-May
- According to FactSet, the average price target on Tesla is $313.66, suggesting 6% downside
- According to VettaFi, 262 ETFs have Tesla within their top 15 holdings
International Business Machines
- IBM is currently pacing for its third negative week in the past 10
- Shares are less than 4% off their highs of the year
- According to FactSet, the average price target on IBM is $280.29, suggesting 2% downside
- According to VettaFi, 101 ETFs have IBM within its top 15 holdings
— Adrian van Hauwermeiren, Lisa Kailai Han
Volatility could be in store for the market amid ‘growing air of complacency,’ JPMorgan warns
The market could be positioned for volatility in the second half of the year, as signs of complacency have begun to appear, according to JPMorgan.
“Global equity prices reside at their all-time highs, yet consensus global EPS downgrades are plentiful,” a team of quantitative strategists led by Khuram Chaudhry wrote on Wednesday, adding that net global earnings revisions have fallen 14.3% in the past month and 18.7% in the last three months. “There appears to be an environment of bullish sentiment, speculation, and a growing air of complacency. Either sell-side analysts are about to start a new round of upward revisions or the market is at risk of suffering a period of increased volatility and draw-downs. Something has to give!”
“The U.S. market is thriving on sectors like Technology and the ‘Magnificent 7’ stocks, fueled by the Generative AI trend, yet cracks and volatility are increasingly likely in H2,” the team also wrote. “Investors should be on the lookout for a potential market rotation!”
— Sean Conlon
Lockheed Martin’s valuation has ‘become too cheap to ignore,” Morgan Stanley says
Morgan Stanley thinks Lockheed Martin is getting hit far too hard as several growth opportunities remain ahead.
“We still see a number of bright spots in LMT’s portfolio (e.g., missiles / missile defense) and significant opportunities ahead (e.g., Golden Dome, F-35 internationally), and think the stock reflects attractive value,” analyst Kristine Liwag said in a Wednesday note to clients.
“Valuation, however, for the largest US Defense pureplay has become too cheap to ignore at a time when global budgets are accelerating,” the analyst added.
Liwag on Wednesday reiterated her overweight rating on the defense giant while lowering her price target by $45 to $530 to reflect updated management commentary and earnings expectations. Still, her target implies the stock, which is down roughly 15.5% this year, could jump 29%.
— Pia Singh
Existing home sales slid 2.7% in June, more than expected
An “Open House” sign in front of a home for sale in the Woodland Hills neighborhood of Los Angeles, California, US, on Sunday, July 13, 2025.
Eric Thayer | Bloomberg | Getty Images
The housing market was hit with more bad news Wednesday as sales numbers posted an unexpectedly sharp drop.
Existing home sales fell 2.7% in June against the Dow Jones consensus expectation for a decline of 0.7%, the National Association of Realtors reported. That translated to a seasonally adjusted rate of 3.93 million, below the forecast for 4 million.
While sales lagged, prices rose. The median sales price climbed 2% from a year ago to $435,300, the highest ever for the month of June.
“Multiple years of undersupply are driving the record high home price. Home construction continues to lag population growth,” said NAR chief economist Lawrence Yun, who added that high mortgage rates also are hitting sales.
— Jeff Cox
Meme traders send shares of GoPro and Krispy Kreme higher Wednesday
GPRO vs. DNUT, 1-day
Meme traders also appeared to ditch shares of Kohl’s Wednesday, as the stock fell more than 14% during the day on the heels of surging more than 37% Tuesday.
The moves come just a day after meme traders dumped shares of Opendoor Technologies, which dropped more than 10% Tuesday after multiple days of double-digit-percentage gains.
— Yun Li, Sean Conlon
Stocks open in positive territory Wednesday
Stocks traded up on Wednesday morning.
The Dow Jones Industrial Average jumped 277 points, or 0.6%, just after 9:30 a.m. ET. The S&P 500 advanced 0.3%, while the Nasdaq Composite gained 0.1%.
— Sean Conlon
GE Vernova shares jump as strong power demand blunts tariff impact
GE Vernova shares jumped about 7% in the premarket after the company raised its full-year guidance, as strong power demand blunts the impact of President Donald Trump’s tariffs.
GE Vernova now sees revenue trending toward the higher end of its guidance of $36 billion to $37 billion, raised the low end of its margin for earnings before interest, tax, depreciation and amortization, and bumped its free cash flow outlook to between $3 billion and $3.5 billion.
The guidance includes the impact of Trump’s tariffs, which GE Vernova now expects to be on the low end of $300 million to $400 million this year.
GEV, 1-day
— Spencer Kimball
Seaport upgrades homebuilder Toll Brothers to buy rating from neutral
In a Tuesday note, Seaport Research Partners upgraded homebuilder stock Toll Brothers to a buy rating from neutral.
Shares have added less than 0.1% this year, but analyst Kenneth Zener’s $161 price target implies the stock could rise 27% from its Tuesday close.
TOL YTD chart
The analyst said that the overall backdrop for homebuilding stocks now looks better, with peak new supply falling and margin pressures easing. Toll Brother’s efforts to improve its business should also offer more promising returns going forward.
“We think TOL’s ongoing focus to improve ROI/ROE, by lessening slower turning land assets, and elevated community pace via entry-level luxury, and pre-starting homes before backlog (only mid-teens % of closings are intra-quarter sales, our spec definition), dramatically elevate returns vs its past,” Zenner wrote. “With 47% of EBIT from the West, and less than peer exposure to FL/TX, we think its affluent customer mix, remains favorable, given its more niche product offering.”
— Lisa Kailai Han
Hilton, Hasbro, SAP among the stocks making moves before the bell
Hasbro board games are seen for sale at a Target store in Austin, Texas, on Dec. 12, 2023.
Brandon Bell | Getty Images
There are some stocks making meaningful premarket moves on Wednesday:
- Hilton Worldwide — The hotel stock slipped nearly 2% despite Hilton posting a second-quarter earnings and revenue beat. Hilton reported adjusted earnings of $2.20 per share on revenue of $3.14 billion, while analysts polled by LSEG had expected earnings of $2.04 and $3.10 billion in revenue. The company also raised its full-year earnings guidance to between $7.83 to $8.00 per share, versus its prior range of between $7.76 and $7.94.
- Hasbro — Shares traded 3% higher in the premarket after the toymaker reported second-quarter results that beat analyst expectations. The company earned an adjusted $1.30 per share on revenue of $980.8 million. Analysts expected a profit of 78 cents per share on revenue of $880 million, according to LSEG. Hasbro also raised its full-year earnings guidance, “fueled by performance in our Wizards business,” CFO Gina Goetter said in a statement.
- SAP — U.S.-listed shares of the enterprise software company fell 4.2%. The company posted 9.03 billion euros for second-quarter revenue, missing the LSEG consensus estimate of 9.08 billion euros.
Read the full list of stocks here.
— Yun Li
Texas Instruments shares tumble on soft outlook
Shares of Texas Instruments plummeted more than 10% in the premarket Wednesday after the chipmaker posted a disappointing third-quarter forecast.
Texas Instruments sees its earnings for the period coming in between $1.36 and $1.60 per share. At the midpoint, that guidance was below the $1.50 per share that analysts surveyed by LSEG had estimated.
However, the company’s second-quarter earnings and revenue beat Wall Street’s expectations, posting $1.41 per share on $4.45 billion in revenue. That’s compared to the consensus estimate of $1.35 per share on $4.36 billion in revenue.
TXN, 1-day
— Sean Conlon
Hasbro shares rise after earnings beat
Hasbro traded 3% higher in the premarket after the toymaker reported second-quarter results that beat analyst expectations.
The company earned an adjusted $1.30 per share on revenue of $980.8 million. Analysts expected a profit of 78 cents per share on revenue of $880 million, according to LSEG.
Hasbro also raised its full-year earnings guidance, “fueled by performance in our Wizards business,” CFO Gina Goetter said in a statement. “Despite a dynamic macro environment, the strength of our diversified business and cost productivity initiatives support our updated outlook.”
HAS 5-day chart
— Fred Imbert
Honda, Toyota shares rally on U.S.-Japan trade deal announcement
U.S.-listed shares of Honda Motor and Toyota popped in the premarket after Trump announced a trade deal between the U.S. and Japan.
Honda traded 11% higher, while Toyota jumped nearly 13%.
HMC and TM 5-day chart
— Fred Imbert
U.S. stock futures turn slightly higher after Trump announces trade deal with Japan
U.S. stock futures turned slightly higher on Tuesday night after President Donald Trump announced a “massive” trade deal with Japan.
S&P 500 futures last traded around 0.1%, while Dow futures advanced 92 points, or 0.2%. Nasdaq 100 futures were near flat.
Trump posted about the development on Truth Social, saying that as part of the agreement, Japanese goods will be subject to a 15% “reciprocal” tariff.
Read more about the deal from CNBC’s Lim Hui Jie here.
— Darla Mercado
Health care, a 2025 laggard, puts up a strong showing Tuesday
The sleepy health-care sector, which is off 3% in 2025, was the big winner on Tuesday.
Health care rose 1.9% on Tuesday while investors took a step back from tech names. The information technology sector lost 1% during the session, dragged lower by losses in Nvidia and Broadcom.
IQVIA emerged as the leader in the health-care sector on Tuesday, leaping nearly 18% and posting its best day ever – dating back to its 2013 initial public offering as Quintiles. Shares of the health information technology company rose on the heels of a second-quarter beat on the top and bottom lines.
IQVIA in the past day
See the stocks moving after hours
The Texas Instruments headquarters in Dallas, Texas, US, on Sunday, Jan. 21, 2024.
N. Johnson | Bloomberg | Getty Images
These are some of the stocks making notable moves after hours:
- Texas Instruments — The maker of analog and embedded processing chips tumbled more than 9% after second-quarter sales and earnings topped Wall Street estimates, while the low end of third-quarter guidance fell short. The stock had soared 46% over the past three months before the results.
- CoStar Group — Shares of the online real estate marketplace rose 1% after the company reported better-than-expected earnings for the second quarter. CoStar earned 17 cents per share, excluding items, on $781.3 million in revenue, while analysts polled by FactSet anticipated 14 cents per share and $772.2 million in revenue.
- Enphase Energy — Shares slid more than 5%. Despite earnings for the second quarter topping Wall Street expectations, the company said to expect current-quarter revenue between $330 million and $370 million versus a consensus estimate of $368 million from analysts polled by LSEG.
Click here for the full list.
— Alex Harring
Stock futures are near flat
Stock futures tied to the Dow, S&P 500 and Nasdaq 100 were all little changed shortly after 6 p.m. ET.
— Alex Harring
