The week ended with a whimper, but the hot niches remained as hot as ever.

Utilities (XLU) stocks soared on Friday, landing four names among the top ten advancers. Other beneficiaries of the Artificial Intelligence (AI) and Data Center boom on the list were Dell (DELL) and Targa Resources (TRGP). There was also a regional bank in the mix, along with Charles Schwab (SCHW), which took the spotlight away from Big Banks.

Earnings Season

Thus, 90% of reports beat last week, and overall, 83% of companies that have reported their second-quarter 2025 (2Q25) results have beaten earnings expectations (64% is the ten-year average).

There is no doubt earnings “beats” are built into the market, which explains why misses have seen harsh stock price reactions.

I’m watching the Momentum Factor ETF (MTUM) closely this week.

Momo

This factor has been holding up well as it consolidates gains and could be poised for further liftoff.  These are the hottest names in the market because they represent the most prominent companies in the market, encompassing several outside of Technology (XLK) and Communication Services (XLC).

Today’s Session

Major indices opened in green territory. Domino’s Pizza (DPZ), Roper (ROP), and Verizon (VZ) are leading this morning’s reporting activity, and the reaction has been mixed.

For commodities, oil and natural gas are seeing weakness while metals like gold, silver, and copper are moving higher.

The Ten-Year Treasury Yield (TNX) is down 6.4 basis points and is moving below the 50-day moving average.