News

President Donald Trump said Wednesday that he was “highly unlikely” to remove Federal Reserve Chair Jerome Powell, a statement that followed less than a day after he privately indicated he was considering dismissing the central bank chief.

Trump acknowledged that during a Tuesday night meeting at the White House with around a dozen House Republicans, he brought up the “concept” of removing Powell, whom he has frequently criticised for not cutting interest rates.

After an earlier pullback, consumers picked up their spending in June despite anxiety over tariffs and the state of the US economy. Retail sales rose a better-than-expected 0.6 per cent in June after declining 0.9 per cent in May, the Commerce Department said Thursday. Sales in April fell 0.1 per cent, pulled down by a steep drop in auto sales, after Americans ramped up their car-buying in March to get ahead of President Donald Trump’s 25 per cent duty on imported cars and car parts.

Excluding autos and automotive parts, sales rose 0.5 per cent, according to the Commerce Department.

PepsiCo gains as Q2 earnings top estimates despite soft U.S. demand

PepsiCo shares advanced more than 1% after the company delivered second-quarter results that topped analyst forecasts. The food and beverage giant reported adjusted earnings of $2.12 per share on revenue of $22.73 billion, beating LSEG projections of $2.03 per share and $22.27 billion in revenue, even as domestic demand declined.

United Airlines stock fell over 1% in premarket trading after the company revised its 2025 profit forecast downward. Despite beating earnings estimates for the second quarter, United now expects full-year earnings between $9 and $11 per share, down from its previous projection of $11.50 to $13.50. Its third-quarter outlook, however, remained in line with analyst estimates.

Taiwan Semiconductor Manufacturing shares climbed 3.3% following a strong second-quarter performance. The chipmaker’s net profit surged 61% year-on-year, setting a new record and surpassing market expectations.

Shares of GE Aerospace rose nearly 1% after the company reported better-than-expected second-quarter results. The jet engine manufacturer posted adjusted earnings of $1.66 per share on revenue of $10.15 billion, exceeding analyst estimates of $1.43 per share and $9.59 billion in revenue, according to FactSet. GE Aerospace also revised its full-year guidance upwards across multiple metrics.

Confidence among US homebuilders in July edged up from a more than two-year low, though a growing share of companies are cutting prices to nudge buyers off the sidelines.

An index of housing market conditions from the National Association of Home Builders and Wells Fargo improved 1 point to 33 this month, still one of the lowest readings since the end of 2022. The gauge matched the median estimate of economists surveyed by Bloomberg.

The index was last up only 0.1% (largely flat) at 44,524.00 points.

Alcoa Corp., the largest US aluminum producer, said tariffs on imports from Canada cost it $115 million in the second quarter, showing how US President Donald Trump’s trade agenda has affected the industry.

The company redirected Canadian produced aluminum to customers outside the US to mitigate additional tariff costs, it said Wednesday while reporting earnings that beat analyst estimates.

Alcoa shares rose as much as 6.4% Thursday in New York, the biggest intraday increase since June 26.

US stocks drifted higher on Thursday to trade near fresh all-time highs as retail sales rebounded in June, easing concerns about a slowdown in consumer spending.

The S&P 500 Index was up 0.2% as of 9:40 a.m. in New York, leaving it less than 0.1% from a record. The Nasdaq 100 Index rose 0.2%, after notching a new all-time high a day earlier. Gains were kept in check as a basket tracking so-called Magnificent Seven stocks including Apple Inc., Alphabet Inc. and Meta Platforms Inc. was flat. Nvidia Corp. rose just 0.1%. Treasury yields are little changed and the dollar rose.

With Netflix Inc. shares trading near their highest valuations going back to 2022, there’s a lot riding on the streaming giant’s upcoming earnings report and its outlook for the months ahead.

Expectations have been building around a second-half slate of blockbuster sequels, including the highly anticipated Stranger Things. The stock price has nearly doubled over the past year, adding about $250 billion in market value and lifting Netflix’s forward price-to-earnings ratio to 43 times, well above the Nasdaq 100’s 27 times. Shares are edging higher, rising 0.7%, ahead of the company’s second-quarter results due after the US market closes.

“Netflix shares are priced for perfection, there isn’t a lot of room for error,” said Daniel Morgan, senior portfolio manager at Synovus Trust Co. “Everybody is expecting the second half to be really strong.”

Archer-Daniels-Midland shares slid about 1.5% in the premarket Thursday after President Donald Trump said that Coca-Cola has agreed to reformulate its drinks with real cane sugar in the US.

“I have been speaking to Coca-Cola about using REAL Cane Sugar in Coke in the United States, and they have agreed to do so. I’d like to thank all of those in authority at Coca-Cola,” Trump wrote in a Truth Social post published Wednesday.

The dollar rose after a better-than-estimated retail sales report and a drop in jobless claims reinforced speculation the Federal Reserve will stay on hold for now. Stocks and bonds wavered.

The greenback resumed its month-to-date climb while the S&P 500 and bond yields were little changed. Money markets are pricing fewer than two Fed rate cuts this year, down from the possibility of three at the start of the month.

Key data releases on Thursday reflected strength in the US economy. The Labor Department reported Thursday that jobless claims for the week ending July 12 came out at 221,000, marking a decrease of 7,000 from the previous week.

Separately, retail sales in June rose more than expected, according to new data from the US Census Bureau. Retail sales were up 0.6% from May, beating the 0.2% estimate from the Dow Jones consensus.

Abbott Laboratories’ fell after the company lowered the top end of its full-year guidance.

The company now expects adjusted full-year earnings in the range of $5.10 to $5.20 a share, down from its earlier guidance of $5.05 to $5.25 a share.

Chief Executive Officer Robert Ford said on a call with analysts that the cost of tariffs will “be just under $200 million,” this year. The company said last quarter that it had considered raising its earnings guidance before tariffs were announced.

Stocks rose after a better-than-estimated retail sales report and a drop in jobless claims pointed to economic resilience. The dollar bounced. Treasuries wavered.

S&P 500 futures saw a mild gain in early New York trading. The greenback resumed its month-to-date climb while bond yields were little changed. Money markets are pricing fewer than two Federal Reserve rate cuts this year, down from the possibility of three at the start of the month.

US retail sales saw a broad advance, potentially tempering some concerns about a retrenchment in consumer spending. The value of retail purchases, not adjusted for inflation, increased 0.6% after declines in the prior two months. That exceeded nearly all estimates in a Bloomberg survey of economists. Excluding cars, sales climbed 0.5%.

Kevin Warsh, a candidate to be the next Federal Reserve chair, said independence for the central bank is “essential.”

But, he added, the Fed under Jerome Powell has strayed into policy areas where it lacks authority.

“History tells us that the independent operations in the conduct of monetary policy is essential,” Warsh said Thursday in an interview on CNBC. “But that doesn’t mean the Fed is independent in everything else it does.”

The US Dow futures were largely unchanged after data on jobless claims showed that the labor market stands strong. Separately, retail sales in June were up 0.6% from May, and up 3.5% from last year, according to new data from the US Census Bureau.

A couple key releases on Wednesday are signaling good news for the US economy.

Jobless claims are suggesting that the labor market remains strong. The figure for seasonally adjusted initial claims was 221,000 for the week ending July 12, marking a decrease of 7,000 from the previous week’s revised level, according to US Department of Labor data.

Separately, retail sales in June were up 0.6% from May, and up 3.5% from last year, according to new data from the U.S. Census Bureau. That beat the 0.2% headline retail sales estimate.

The number of companies at the greatest risk of defaulting are at an 11-month high, as uncertainty around US trade and tariffs worsened credit conditions, according to a Moody’s Ratings report.

In the second quarter, 16 companies were added to the cohort of businesses with the highest default risk, according to Moody’s. The group now stands at 241 companies, the report shows.

Abbott Laboratories’ dropped in early trading Thursday after the company lowered the top end of its full-year guidance.

The company now expects adjusted full-year earnings in the range of $5.10 to $5.20 a share, down from its earlier guidance of $5.05 to $5.25 a share. The company said last quarter that it had considered raising its earnings guidance before tariffs were announced.

Abbott’s shares fell as much as 5.5% on Thursday before regular trading began in New York. The company’s shares had gained 16% this year through Wednesday’s close.

PepsiCo on Thursday reported quarterly earnings and revenue that topped analysts’ expectations, despite weaker demand for its food and drinks in North America.

Shares of the company rose roughly 2% in premarket trading.

Elevance Health Inc. cut its profit outlook for the year on higher medical costs in Affordable Care Act plans and lower reimbursement from Medicaid, the latest in a series of disappointments from health insurers in recent months.

The insurer’s shares pared early losses and were down about 1% in premarket trading in New York. The forecast cut comes less than two months after Elevance affirmed its outlook despite rising cost trends. It’s more evidence that insurers are struggling to contain persistent and widespread increases in medical expenses.

Treasuries slipped as markets grappled with the fallout from US President Donald Trump’s latest attacks on Federal Reserve Chair Jerome Powell.

Yields on US government bonds inched higher across the curve on Thursday, with those on 10-year Treasuries up one basis point to 4.47%. Yields on 30-year notes remained above 5%.

Treasuries whipsawed Wednesday on reports Trump was preparing to fire Powell, with shorter tenors rallying on the prospect that could lead to faster interest-rate cuts, before Trump said he’s not planning to ax him. While Trump has repeatedly criticised Powell this year, the latest escalation spooked investors over the prospect of political interference at the central bank.

Richard Harris, Executive Director at Port Shelter Investment Management, said August 1 could mark a turning point if US President Donald Trump follows through on his tariff threats.

here

Wall Street indices ended higher on Wednesday.

– The S&P 500 ended the session up 0.3%

– Nasdaq Composite rose 0.2%

– Dow Jones Industrial Average gained 0.48%

Good evening, readers! Welcome to CNBC-TV18’s market blog, where we provide rolling live news coverage of the latest events in the US stock market. 

Stay tuned!NewsLive TVMarketPopular CategoriesCalculatorsTrending NowLet's Connect with CNBCTV 18Network 18 Group :©TV18 Broadcast Limited. All rights reserved.