Tesla, Tariffs & Alphabet in Focus 23/07/2025

HOT stories for today

US market wrap:

• The S&P 500 hit a fresh record Tuesday after the White House announced trade deals with the Philippines and Indonesia, despite lackluster earnings from several blue-chip names. It marked the 11th record close of 2025 for the benchmark index. The Dow Jones Industrial Average rose nearly 180 points, while the Nasdaq Composite slipped 0.4% as chip stocks weakened.
• Surprisingly, the struggling health care sector, down 3% year-to-date, led the day’s gains. RTX (RTX) fell after cutting its forecast due to tariff pressures, Lockheed Martin (LMT) dropped on a $1.7 billion write-down tied to classified contracts, and General Motors (GM) said tariffs had hit its bottom line. After hours, U.S. President Donald Trump announced a “massive Deal” with Japan, imposing 15% tariffs on Japanese exports to the U.S. Looking ahead, investors are focused on two key earnings reports due Wednesday, hoping for clarity on growth and AI trends.

AI Agents could boost Alphabet

• As Alphabet kicks off earnings Wednesday, investors are watching for signs that the AI agent boom is translating into real cloud revenue for tech giants. Demand for agentic AI, tools that act independently, is expected to lift Alphabet, Amazon, and Microsoft this quarter and beyond. Google Cloud is forecast to grow around 27–28%, potentially easing worries about threats to its search business.
• Microsoft’s Azure, reporting July 30, is expected to grow 34–35%, with investors hoping for even stronger numbers. Amazon reports July 31, with AWS growth projected near 17% as it ramps up AI agent investments despite earlier chip supply delays. Wall Street will be looking for signs of broad AI adoption, not just training, to gauge the trend’s long-term impact.

Stocks on the move:

• Texas Instruments (TXN): Shares of the analog and embedded chip manufacturer dropped over 9% after issuing a weaker-than-expected outlook for Q3, despite exceeding earnings and sales projections for Q2. The stock had surged 46% in the three months preceding the report.
• CoStar Group (CSGP): The online property listings platform rose 1% after surpassing Q2 forecasts. CoStar posted adjusted earnings of $0.17 per share on $781.3 million in revenue, beating expectations of $0.14 and $772.2 million, according to FactSet.
• Enphase Energy (ENPH): The solar tech firm declined more than 5% as its Q3 revenue forecast of $330–$370 million disappointed investors, coming in just around the $368 million analyst consensus (LSEG), even though Q2 earnings topped expectations.
• Intuitive Surgical (ISRG): The robotic surgery leader slipped 1% despite delivering better-than-expected Q2 results. It reported adjusted EPS of $2.19 on $2.44 billion in revenue, above LSEG estimates of $1.92 EPS and $2.35 billion in sales.

Watchlist: GOOGL, TSLA, TXN, ISRG, ENPH, CALM, NEE, T

Today’s action

• Asia-Pacific equities opened higher after U.S. President Donald Trump announced a “massive Deal” with Japan, imposing 15% tariffs on Japanese exports to the U.S. Japan’s Nikkei 225 surged 3%, while China’s CSI 300 rose 0.3% and Hong Kong’s Hang Seng Index added 0.63%. 
• S&P 500 futures edged up 0.10% Tuesday evening, Dow futures gained 70 points (0.16%), and Nasdaq 100 futures hovered near flat. Investors are now focused on key earnings reports from Alphabet (GOOGL) and Tesla (TSLA), due to be released Wednesday after the bell, along with existing home sales data scheduled for release in the morning.

Bitcoin

• Bitcoin remains resilient as fresh institutional interest lifts sentiment across crypto markets. Trump Media disclosed a massive $2 billion Bitcoin purchase, reinforcing BTC’s growing role in corporate portfolios.
• Meanwhile, PNC Bank is teaming up with Coinbase to bring crypto trading to its clients, signaling deeper financial integration. On the retail side, NFL star Odell Beckham Jr. reaffirmed his confidence in receiving part of his salary in Bitcoin, reflecting steady long-term belief. As both Wall Street and Main Street lean into crypto, Bitcoin continues to anchor the digital asset space.
  Watchlist: BTC: 99,000–123,000 | ETH: 3,000–3,800 | SOL: 200–260

Forex

• The EUR/USD pair pulled back from a two-week high of 1.1761, trading near 1.1740 during Wednesday’s Asian session, as the U.S. Dollar (USD) strengthened following President Donald Trump’s announcement of a trade agreement with Japan. Trump also took aim at Fed Chair Jerome Powell, stating he would be “out in eight months.” Meanwhile, the European Central Bank is expected to keep interest rates steady at its meeting on Thursday, limiting upside for the euro.
• The Japanese Yen initially gained after the trade deal news but reversed sharply amid political uncertainty, as reports suggested Prime Minister Shigeru Ishiba may resign this month. The USD/JPY pair hovered around the 147.00 level, supported by a modest USD rebound from two-week lows and intraday selling pressure on the yen.
  Watchlist: EUR/USD: 1.1000–1.1850 | USD/JPY: 140–162

Basic Materials

• Gold (XAU/USD) retreated from a one-month peak near $2,439 during Wednesday’s Asian session, snapping a three-day winning streak. A modest rebound in the U.S. Dollar and improved risk appetite following President Trump’s trade deal with Japan weighed on the metal. Uncertainty over the Fed’s rate-cut path continues to cap dollar strength, keeping gold traders cautious.
• Meanwhile, West Texas Intermediate (WTI) crude slipped to around $65.40 early Wednesday, losing momentum amid renewed concerns over global fuel demand following Trump’s tariff moves. Despite a reported 577,000-barrel decline in U.S. crude inventories (API), traders remain cautious ahead of the official EIA stockpile data due later in the day.
  Watchlist: Gold: 2,600–3,500 | US Oil: 55.60–75.80

Economic Calendar (EST):

10:00 am: Existing Home Sales
10:30 am: Crude Oil Inventories


Earnings:

BMO (Before Market Open)

T                     AT&T Inc.
NEE               NextEra Energy
GEV               GE Vernova
BSX               Boston Scientific Corp.
TMO              Thermo Fisher Scientific


AMC (After Market Close): GOOGL, TSLA, IBM, TMUS, NOW


The TEFS Analyst team wishes you a successful day!