Stocks Up Again, Dow Extends Longest Winning Streak Since 2019  Image: Bigstock Stocks closed higher again yesterday with the Dow, S&P and Nasdaq making another new YTD high and close. The Dow extended their winning streak, making it 8 days in a row, their best streak since 2019. It's also worth noting that the small-cap Russell 2000 led the indexes once again with another outsized gain. Before the open yesterday, Goldman Sachs reported a -5.23% negative EPS surprise, but a +1.01% positive sales surprise. They were up 0.97% yesterday. After the close we heard from Netflix, Tesla and United Airlines. NFLX posted a +16.25% positive EPS surprise, and a -0.93% negative sales surprise. Subscriptions rose 8%. And they upped their current quarter guidance to $8.52 billion, which is 7.17% above the consensus. Shares were down by -5.50% in after-hours trade. Tesla posted a +9.64% positive EPS surprise, and a +0.17% positive sales surprise, on record-high quarterly revenue. Although, price cuts and incentives knocked margins down. Shares were down -0.30% after-hours. United Airlines reported a +26.07% positive EPS surprise on record quarterly earnings, and a +1.80% positive sales surprise. They upped their guidance for the current quarter to $3.85-$4.35 (midpoint of $4.10), which is 10.8% above the consensus of $3.70. They were up 2.75% in after-hours trade. Today we'll get another 117 companies on deck to report, with varied names like Taiwan Semiconductor, Johnson & Johnson, Philip Morris, Blackstone, and CSX to name a handful. In other news, yesterday's MBA Mortgage Applications rose 1.1% w/w with purchases down -1.3%, while refi's were up 7.3%. And the Housing Starts and Permits report showed Starts fall to 1.434 million units (annualized) vs. last month's 1.559M and views for 1.480M. Permits slipped as well to 1.440M vs. last month's 1.496M and estimates for 1.483M. Today we'll get Weekly Jobless Claims, the Philadelphia Fed Manufacturing Index, Existing Home Sales, and Leading Indicators. Just 5 more trading days until the next FOMC announcement. It's widely expected the Fed will raise rates another 25 basis points on July 26. But what the Fed does at their follow up meeting in September is up in the air. But next Friday's (7/28) Personal Consumption Expenditures (PCE) index (the Fed's preferred inflation gauge), could give us a hint. In the meantime, stocks continue to impress. And since stocks typically go up during earnings season, we could see those gains continue in the coming weeks as earnings season ramps up. So make sure you're taking full advantage of it. See you tomorrow,  Kevin Matras
Executive Vice President, Zacks Investment Research | 
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