Welcome to my Weekend Updates!
Stock Market Last week
Last week, the S&P 500 was up 1.5% to close at 6,388.64, marking its 14th record close in
2025. The Nasdaq gained 1%, ending at 21,108.32, with its 15th record close. The Dow Jones Industrial Average rose 1.3%, settling at 44,901.92, just 0.25% shy of its December 4 peak. Tech and utilities led, fueled by strong earnings from Alphabet and robust economic data, despite tariff concerns. On July 22, 2025, the U.S. and Japan finalized a trade deal setting a 15% tariff on Japanese imports to the U.S., down from a planned 25%. Japan will invest $550 billion in the U.S.
Earnings last week and my View
Google (GOOG)
- Revenue: $96.43 billion vs. $94 billion.
- Earnings per share: $2.31 vs. $2.18.
- Google Cloud revenue: $13.62 billion vs. $13.11 billion, up 31% YOY.
Google’s announcement of a $10 billion increase in its capital expenditure outlook, reaching $85 billion. It indicates that AI momentum will continue for the foreseeable future. My View: Though Google has been coming with good results, I was impressed this time. Wall Street is still in dilemma whether it would lose its advertising revenue to other AI tools. The cloud growth was impressive. I am a buyer on the dip.
Tesla (TSLA)
Missed on top and bottom line.
- Earnings per share: 40 cents vs 43 cents
- Revenue: $22.50 billion vs. $22.74 billion.
My view: Every one knows that Tesla faces challenges from tariffs, EV tax credit loss, and competition, with deliveries down 13.5% YoY. But the company will sell more car this quarter as $7500 rebate comes to an end on Sept 30. After that they will have challenging one/two quarters. On the positive side, Musk’s focus on robotaxi, AI, and affordable Tesla models in Q4 2025 aims to offset near-term headwinds. Q2 2025 was a seminal point in Tesla’s history. However, the company is transitioning from leading the electric vehicle and renewable energy industries to also becoming a leader in AI, robotics & related services. I. know the company faces the challenges, but it also has huge potential for long term investors. I believe in this company, so I am a buyer on the dip. But people who can't tolerate volatility or do not like the stock or Musk or whatever should avoid. I try to make my investment decision based on the future prospects.
BTW: Today Tesla has awarded $16.5B chip contract to Samsung to supply multi-year chips.
What to expect this week?
A few hours ago, Trump said to have stuck trade deal with the European Union (EU) which imposes a 15% tariff on most European goods to the U.S., including cars. It can be noted that the president had previously threatened 30% tariffs. This is a very good news for the market. Tomorrow U.S and Chinese negotiators are meeting in Stockholm to tackle the longstanding trade war. We will see how it goes.
Meanwhile, we are heading into one of the most critical week of the year! First of all, the Super Bowl to tech earnings this week (see below). The tech giants will report their earnings. These will determine the market direction. In addition, the FED FOMC meeting is this week where they will determine the interest rate decision. This will be one of the most important week and determinant of how the market takes next direction. Furthermore, there are a flurry of extremely critical economic report expected this week. Please note that the indexes have hit multiple highs in last week. Having said that, many stocks who were going up have lost some tooth. So, one must be cautiously optimistic. I will write more about it in my next blog.
Earnings this Week
WED, 7|30: META, MSFT, APLD, ARM
THU, 7/31: AMZN, AAPL
I am optimistic about all these companies but unsure about Apple. I feel we are in the middle of AI revolution but these earnings should provide further insight into momentum continues.
STOCKS to watch this week
META, MSFT, AMZN, AAPL, APLD, ARM, TSLA, NVDA, AVGO, DASH, HOOD, ENVX, OPEN, QQQ, SOXL, SMCI
My View on WhatsApp Poll# 7
As my readers know, I have started conducting polls to have more involvement, so that they not only feel included but it also gives an opportunity for the members to know what others are thinking in addition to my l view. In my view, FED may not cut interest rate this week but they may set a stage for September cut and hence it may provide dovish view. I am optimistic that FED may cut rates two more times this year. But I will be pleasantly surprised if they cut rate this week. If they do, market may take it as a bonus! I will write more on this in my next blog.
Important Economic Report this week
TUE, July 29: Consumer confidence
WED, 7/30: FOMC Interest Rate Decision, GDP, ADP employment
THU, 7/31: Fed's preferred PCE index
FRI, 8/1: U.S. Employment report
Have a good evening!
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