It was a grind, but the market finished higher with eight sectors in the green, led by Health Care (XLV).

Shares of Johnson & Johnson (JNJ) surged after the company posted its financial results. Private Equity stocks are also higher on speculation that the administration will allow investors to buy Private Equity products for their 401 (k) plans.

I love it when 139 year old stocks make investors money.  It underscores that not every stock has to be sexy to be a winner. Moreover, if they have been around 139 years, more than likely, they will be around another century.

The key, of course, is to move with the times, which means embracing innovation. This will be the part of the AI story that will breathe new life into old and smaller companies.

The Fourth of July has passed, but fireworks continue to go off in Washington, D.C., where the rumor mill never stops grinding out anonymous stories and salacious headlines.

The media is taking a page from the National Enquirer's playbook. It appears that this time around, the focus will be on divorce and breakup cases rather than run-of-the-mill hoaxes.

So, the “imminent” firing of Jay Powell is grist for the mill.  But make no mistake the guy is not popular.

There is a Wall Street adage that, “new highs beget new highs.”  The reason this works is that investors tend to chase or, in some cases, are forced to chase.

A report from Goldman sees $48 billion in CTA fund inflows over the next 30 days. That could spark the next leg higher for sure.

So much for summer doldrums.

Today’s Session

Everything is going right this morning, economic and earnings data is beating consensus

everywhere.  Import Prices were +0.1% compared to consensus of +0.3%.

Philly Fed

The Philadelphia Fed Manufacturing index reversed into positive territory surging to 15.9 in July from -4 in June and blowing past expectations of -1.

Very impressive numbers, but not adjusted for inflation.

Retail Sales

• +0.6% consenus +0.1% headline
• +0.6% consensus +0.3% ex-autos
• +0.5% consensus +0.3% Control group

Earnings

Taiwan Semiconductor (TSM)

• $30.07B revenue, consensus $30B
• $2.47 eps, consensus $2.28

 

Customers

United Airlines Holdings, Inc. (UAL)

• $15.2B revenue, consensus $15.33B
• $3.87 eps, consensus $3.84

The company revised is FY25 EPS guidance to $9 - $11, well above its recessionary environment guidance range in April of $7 - $9.

GE Aerospace (GE)

General Electric Co. boosted its full-year financial guidance and topped Wall Street’s profit estimates for the second quarter after rebounding demand in the aviation market softened the impact of a global trade war.

Adjusted earnings for 2025 will be $5.60 to $5.80 a share, up from a prior range of no more than $5.45, according to a statement Thursday. The aircraft engine manufacturer, which operates as GE Aerospace, also raised its forecasts for adjusted revenue growth, operating profit and free cash flow.

The company is benefiting from a surge in orders that slowed earlier in the year amid market volatility. GE Aerospace touted a 30% jump in revenue for its commercial business last quarter, with recent wins including its largest-ever widebody deal to sell more than 400 engines to Qatar Airways.

The industry has been trying to navigate uncertainty around US President Donald Trump’s tariffs, which aerospace leaders say could drive up costs and upend supply chains. GE Aerospace Chief Executive Officer Larry Culp has been vocal on the topic, speaking with Trump directly about how free trade has benefitted the industry and generated a trade surplus for the US.

“I do think the administration is listening,” Culp said in an interview. “We’ve talked with everybody who will sit with us.”

The CEO, who added that he is “optimistic” that there will be a solution that’s beneficial to the industry, has said his company is offsetting a portion of the tariff impacts through cost controls and price increases.

GE Aerospace was cleared recently to restart shipments of engines for Chinese plane maker Commercial Aircraft Corp of China Ltd., Bloomberg reported this month.

Adjusted second-quarter earnings were $1.66 a share, GE Aerospace said, topping the $1.43 average of analyst estimates compiled by Bloomberg. Adjusted revenue was about $10.2 billion in the period, while analysts had predicted $9.6 billion.

PepsiCo, Inc. (PEP)

• $22.73B revenue, consensus $22.27B
• $2.12 eps, consensus $2.03

Comments

When the market is at all time highs, everybody is a winner. Ric Walter on 7/17/2025 2:44:56 PM

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