The S&P 500 index shed 0.6% last week amid mixed corporate earnings and continued worries about the US-Iran war. The index is now down 1.2% for the month, but up 8.3% for the year.
Pakistan is exploring a path toward a resumption of stalled talks between the US and Iran over ending the war, following a push initiated by China, Reuters reported, citing sources, on Friday. Axios a day earlier said in a report that President Trump was seriously considering a “massive attack” on Iran but didn’t give a deadline for his decision.
Earnings were mixed as Intel (INTC) reported a Q2 beat for adjusted earnings and its strongest revenue growth in 15 years, driven by a 59% surge in the data center and artificial intelligence unit. American Express (AXP) and Verizon Communications (VZ), however, both disappointed with weaker-than-expected Q2 revenue.
The S&P 500’s weekly loss came on declines in just three of its 11 sectors. Communication services had the largest percentage drop, falling 6.2%, followed by a 6.1% decline in consumer discretionary and a 1.4% slip in consumer staples.
On the upside, the energy sector rose 3.8% on the week, boosted by higher energy prices amid the turmoil in the Middle East. Utilities also rose, climbing 2.5%, followed by gains of more than 1% each in industrials, real estate and materials. Health care, technology and financials also eked out gains.
This week’s earnings calendar features many large companies including Visa (V), Coca-Cola (KO), Boeing (BA), Microsoft (MSFT), Meta Platforms (META), Apple (AAPL), Amazon (AMZN), Mastercard (MA), Exxon Mobil (XOM), and Chevron (CVX), among others.
Economic data will include reports on June wholesale and retail inventories, as well as June consumer spending and the June Personal Consumption Expenditures price index.
The US Federal Open Market Committee will gather for a two-day meeting that concludes on Wednesday when members will announce a decision on interest rates.
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