Stock Market Update
31-Jul-26 12:30 ET
In a digestion period
Dow +220.85
at 52428.91,
Nasdaq +139.37
at 25282.56,
S&P +30.04
at 7467.67
[BRIEFING.COM] The S&P 500 seems to be stuck in this no-man's-land of 7,400-7,500, prevented from going much below the former and much above the latter.
It is perhaps a necessary check following a parabolic move off the late-March low into the mid-May high. This is a "digestion period," with market participants assessing how much good news has been priced into stocks already and how much more room for multiple expansion in the near term there could be.
With the Q2 reporting period in full swing, it is fair to say that the earnings reports, in aggregate, have not disappointed. The blended earnings growth rate is a whopping 47.8%, according to FactSet, well above the 23.7% projection seen on July 10 and the 18.4% growth rate seen at the end of the first quarter.
Despite the impressive earnings growth, the S&P 500 has tracked sideways; in fact, it is about 100 points lower, or down 1.4%, from where it stood on July 10 when the blended earnings growth rate was not even half of what it is today.
