Weekly Market Update: July 20, 2026

Market Update
Written By Trey Kerns

Week Ending July 17, 2026:

S&P 500: -0.77%
NASDAQ Composite: -1.36%
Dow Jones Industrial Average: -0.67%

Market Takeaway

U.S. equity markets finished the week ending July 17 lower, with the S&P 500, NASDAQ Composite, and Dow Jones Industrial Average all declining.

The S&P 500 fell 0.77%, the NASDAQ Composite declined 1.36%, and the Dow Jones Industrial Average moved lower by 0.67%. The NASDAQ saw the largest decline among the three major indices, while the Dow and S&P 500 also ended the week in negative territory.

The week included several important economic reports, including CPI, PPI, retail sales, housing starts, industrial production, and regional Federal Reserve manufacturing surveys. Inflation data cooled during the month, while retail sales increased modestly. Housing starts rebounded overall, but single-family starts were slightly lower and building permits declined.

Earnings were also a major focus, led by results from large financial companies, asset management, semiconductors, and media. JPMorgan Chase, Goldman Sachs, BlackRock, Taiwan Semiconductor, and Netflix each reported results during the week, with the provided earnings data showing earnings or revenue results that generally came in ahead of expectations.

Major U.S. indices remained above their 200-day moving averages, but volatility moved higher by the end of the week, with the VIX closing at 18.77 on July 17.

Thematic Drivers of the Week

1. Major Indices Finished Lower

What happened:

The S&P 500, NASDAQ Composite, and Dow Jones Industrial Average all finished the week lower.

The S&P 500 declined 0.77%, the NASDAQ Composite fell 1.36%, and the Dow Jones Industrial Average declined 0.67%.

Why it mattered:

When all three major indices decline during the same week, it can suggest a more cautious market tone across broad areas of the equity market. However, it is important not to overstate the meaning of one week of performance.

The NASDAQ’s larger decline showed more pressure in that index compared with the S&P 500 and Dow. Weekly market performance can reflect many factors, including investor positioning, company-specific developments, valuation sensitivity, economic data, interest rate expectations, and broader sentiment.

Market reaction:

Markets ended the week lower across the major indices. The available data showed broad index weakness, while major indices remained above their 200-day moving averages.

2. Inflation Data Cooled, But Investors Continued Evaluating the Broader Economic Picture

What happened:

The June CPI report showed consumer prices declined 0.4% on a seasonally adjusted basis, after rising 0.5% in May. Over the last 12 months, CPI increased 3.5% before seasonal adjustment.

Core CPI, which excludes food and energy, was unchanged in June and increased 2.6% year over year. Energy prices declined 5.7% during the month, while food prices increased 0.2%.

The Producer Price Index for final demand fell 0.3% in June. Final demand goods prices declined 1.4%, while final demand services prices increased 0.2%. On an unadjusted basis, final demand prices increased 5.5% over the 12 months ended in June.

Why it mattered:

CPI and PPI both provide important inflation readings, but they measure different parts of the price environment. CPI tracks consumer prices, while PPI tracks prices received by domestic producers.

The monthly declines in CPI and PPI showed some cooling in inflation data during June, helped by lower energy and goods prices. However, year-over-year inflation remained above the Federal Reserve’s longer-term 2% goal, so inflation remained a central part of the market discussion.

Market reaction:

Markets appeared to evaluate the inflation data alongside earnings results and other economic reports. The weekly index declines suggest that inflation data alone did not create a uniformly positive market reaction.

3. Economic Data Was Mixed Across Consumers, Housing, and Manufacturing

What happened:

Retail sales increased 0.2% in June to $768.6 billion, and were up 6.7% from June 2025. Total sales for April through June were up 6.4% from the same period a year earlier.

Housing starts rose 19.0% in June to a seasonally adjusted annual rate of 1.427 million. However, building permits declined 3.0%, and single-family housing starts slipped 0.2% to 895,000.

Industrial production increased 0.1% in June and grew at a 4.0% annual rate in the second quarter. Manufacturing output was unchanged in June, while mining and utilities output both increased 0.4%.

Regional Federal Reserve manufacturing surveys showed expansion. The Empire State Manufacturing Survey general business conditions index rose to 15.6, while the Philadelphia Fed Manufacturing Business Outlook Survey current general activity index rose to 41.4.

Why it mattered:

The data gave investors a mixed view of the economy. Retail sales showed that consumer spending remained positive, while housing data showed a rebound in total starts but softer details in permits and single-family starts.

Industrial production increased slightly, but manufacturing output was flat for the month. Regional Fed surveys suggested improvement in parts of manufacturing, but regional surveys should not be treated as a complete picture of national manufacturing activity.

Market reaction:

The reports provided several crosscurrents for investors to evaluate. Consumer spending remained positive, some manufacturing indicators improved, and housing activity showed both strength and caution depending on the measure.

Earnings Recap: Key Companies in Focus

JPMorgan Chase (JPM) - Reported July 14

Results:

  • Estimated EPS: $5.72

  • Actual EPS: $6.14

  • Result: Beat by 7.36%

  • Revenue: Beat by 7.36%

Takeaway:

JPMorgan Chase reported results above expectations based on the earnings data provided. Large bank earnings may provide insight into lending, credit trends, consumer health, trading activity, investment banking, net interest income, and broader financial conditions.

Goldman Sachs (GS) - Reported July 14

Results:

  • Estimated EPS: $14.50

  • Actual EPS: $20.98

  • Result: Beat by 44.66%

  • Revenue: Beat by 23.36%

Takeaway:

Goldman Sachs reported earnings above expectations based on the earnings data provided. The results provided a read on investment banking, trading activity, capital markets, and broader financial-sector activity.

BlackRock (BLK) - Reported July 15

Results:

  • Estimated EPS: $12.69

  • Actual EPS: $13.91

  • Result: Beat by 9.62%

  • Revenue: Beat by 3.00%

Takeaway:

BlackRock reported adjusted earnings above expectations based on the earnings data provided. The results provided insight into asset management, investor flows, wealth management trends, and broader investor sentiment.

Taiwan Semiconductor (TSM) - Reported July 16

Results:

  • Revenue: TWD 1.27 trillion

  • Estimated Revenue: TWD 1.26 trillion

  • Result: Beat by 0.47%

Takeaway:

Taiwan Semiconductor reported revenue slightly above expectations based on the earnings data provided. The company remains an important read-through for semiconductor demand and the AI infrastructure theme.

Netflix (NFLX) - Reported July 16

Results:

  • Estimated EPS: $0.79

  • Actual EPS: $0.80

  • Result: Beat by 1.27%

  • Revenue: Missed by 0.18%

Takeaway:

Netflix reported earnings slightly above expectations, while revenue came in slightly below expectations based on the earnings data provided. The results provided a read on consumer media demand, subscription trends, and entertainment spending.

Major Economic Reports Recap

Consumer Price Index (CPI) - Released July 14

The June CPI report showed:

  • Headline CPI: -0.4% month over month

  • Headline CPI: +3.5% year over year

  • Core CPI: unchanged month over month

  • Core CPI: +2.6% year over year

  • Energy: -5.7% month over month

  • Food: +0.2% month over month

Economic Takeaway:

The CPI report showed consumer inflation cooled in June, helped by lower energy prices. However, year-over-year inflation remained above the Federal Reserve’s longer-term 2% goal.

Producer Price Index (PPI) - Released July 15

The June PPI report showed:

  • Final demand PPI: -0.3% month over month

  • Final demand PPI: +5.5% year over year

  • Final demand goods: -1.4% month over month

  • Final demand services: +0.2% month over month

  • Final demand less foods, energy, and trade services: +0.1% month over month and +5.1% year over year

Economic Takeaway:

The PPI report showed wholesale inflation declined in June, largely due to lower goods prices. Services prices still moved higher, which showed that price pressures were not uniform across the economy.

Retail Sales - Released July 16

Advance estimates of U.S. retail and food services sales for June were $768.6 billion, up 0.2% from the prior month and up 6.7% from June 2025.

Total sales for the April through June period were up 6.4% from the same period a year earlier. The April to May change was revised higher, from +0.9% to +1.0%.

Economic Takeaway:

Retail sales increased modestly in June. The report suggested consumer spending remained positive, though the monthly pace was more measured than the revised May reading.

Housing Starts - Released July 17

Privately owned housing starts in June were at a seasonally adjusted annual rate of 1.427 million, up 19.0% from the revised May estimate of 1.199 million and up 3.5% from June 2025.

Building permits were at a seasonally adjusted annual rate of 1.367 million, down 3.0% from the revised May rate and down 2.3% from June 2025. Single-family housing starts were 895,000, down 0.2% from May.

Economic Takeaway:

Housing starts rebounded in June, but building permits declined. The difference between starts and permits may suggest near-term construction activity improved, while future building activity remained more measured.

Industrial Production - Released July 17

Industrial production increased 0.1% in June and grew at a 4.0% annual rate in the second quarter.

Manufacturing output was unchanged in June but increased at a 4.7% annual rate in the second quarter. Mining and utilities output both increased 0.4% in June. Capacity utilization was unchanged at 76.1%, which remained below its long-run average.

Economic Takeaway:

Industrial production increased slightly in June, while manufacturing output was flat for the month. The second-quarter growth rate showed improvement over the quarter, though capacity utilization remained below its long-run average.

Regional Federal Reserve Manufacturing Surveys - Released July 15 and July 16

The New York Fed’s Empire State Manufacturing Survey showed business activity picked up in July. The general business conditions index rose 10 points to 15.6. New orders increased to 22.2, shipments rose to 24.4, and the employment index increased to 11.4.

The Philadelphia Fed Manufacturing Business Outlook Survey also showed stronger regional manufacturing activity. The current general activity index rose to 41.4 in July from 10.3 in June. New orders increased to 37.0, and shipments rose to 33.7.

Economic Takeaway:

The regional Fed surveys pointed to improved manufacturing activity in both New York and the Philadelphia Fed district. These surveys are regional, so they should not be treated as a full national manufacturing reading, but they may provide useful context around business activity, orders, shipments, employment, and pricing trends.

Technical Perspective

Based on the technical notes provided:

  • Major U.S. indices remained above their 200-day moving averages

  • The S&P 500 declined 0.77%

  • The NASDAQ Composite declined 1.36%

  • The Dow Jones Industrial Average declined 0.67%

  • The VIX ended the week at 18.77 on July 17

Interpretation:

From a technical standpoint, the major indices finished the week lower but remained above their 200-day moving averages. This suggests short-term weakness occurred within a broader technical structure that, based on the provided information, remained above a commonly followed long-term trend measure.

The VIX ended the week higher than the prior week, suggesting volatility increased. Technical indicators can provide context, but they do not predict future market direction or remove the risks associated with investing.

Key Takeaways for Investors

  • Major U.S. indices finished the week lower

  • The NASDAQ Composite saw the largest decline among the three major indices

  • CPI and PPI inflation readings cooled during June

  • Retail sales increased modestly

  • Housing starts rebounded, while building permits declined

  • Industrial production increased slightly, while manufacturing output was unchanged

  • Regional Fed surveys showed improved manufacturing activity in New York and the Philadelphia Fed district

  • Large financial, asset management, semiconductor, and media earnings were key areas of focus

  • Major indices remained above their 200-day moving averages

  • The VIX ended the week at 18.77

Looking Ahead

Investors will be watching a busy earnings calendar and several important economic reports over the next two weeks.

Key areas of focus include:

  • Large-cap technology earnings

  • Automotive and semiconductor earnings

  • Telecom earnings

  • GDP

  • PCE inflation

  • Durable goods orders

  • Consumer Confidence

  • New home sales

  • Housing-related data

Earnings to Watch This Week

Alphabet (GOOGL) - July 22

Alphabet is scheduled to report second-quarter results on Wednesday. Investors may monitor the results for updates on digital advertising, cloud, AI-related spending, and broader technology demand.

Tesla (TSLA) - July 22

Tesla is scheduled to report second-quarter results on Wednesday. Investors may watch for updates on vehicle deliveries, margins, energy storage, and broader electric-vehicle demand.

IBM (IBM) - July 22

IBM is scheduled to report second-quarter results on Wednesday. The company may provide insight into enterprise technology spending, software demand, consulting activity, and AI-related investment priorities.

Intel (INTC) - July 23

Intel is scheduled to report second-quarter results on Thursday. Investors may monitor the results for updates on semiconductor demand, data center spending, PC demand, and manufacturing progress.

Verizon (VZ) - July 24

Verizon is scheduled to report second-quarter results on Friday. The company may provide a read on telecom demand, wireless subscriber trends, capital spending, and consumer payment behavior.

Economic Data to Watch

New Home Sales - July 24

New Residential Sales for June are scheduled for release on July 24. This report provides another read on housing demand, affordability, inventory, and new construction activity.

Closing Thought

Markets finished the week lower, while the underlying data showed a mix of cooling inflation, modest consumer spending growth, stronger housing starts, and improved regional manufacturing readings.

That kind of backdrop can create a more complicated picture than the headline index returns suggest. Rather than focusing only on whether markets were up or down in a given week, it can be more useful to understand what changed, what remained steady, and how short-term developments fit within a broader financial plan.

Sources

Disclosure: This market update is for informational and educational purposes only and should not be considered investment advice or a recommendation to buy or sell any security. Market data and company results are subject to revision and interpretation. Past performance does not guarantee future results. Investing involves risk, including the potential loss of principal.

Trey Kerns https://KernsLegacyPlanning.com
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Weekly Market Update: July 13, 2026