The main stock indexes drifted lower as crude oil prices and interest rates moved mostly sideways on Tuesday. Investors, traders and speculators are waiting for this week's incoming inflation data before they make any major moves. We know earnings season has been big for top- and bottom-line beats, as well as for AI hyperscaler budget growth. Less certain, still, is the situation in the Middle East and who controls the Strait of Hormuz.
"Corporate earnings are now so strong that the wild trading swings that occurred in July have been muted by the reality that record sales, earnings, positive guidance, and rising order backlogs are real," observes Louis Navellier of Navellier & Associates. According to FactSet, based on results for 88% of the S&P 500, 86% have reported a positive earnings surprise, and 76% have reported a positive revenue surprise.
