Retail sales beat and strong earnings help S&P 500, Nasdaq, and TSX extend upward momentum
On Thursday, PepsiCo’s 7.5 percent surge and stronger‑than‑expected US retail sales drove North American stock markets higher Thursday, with the S&P 500 and Nasdaq Composite both reaching new record highs.
As reported by CNBC, the S&P 500 gained 0.54 percent to end at 6,297.36, marking its ninth record close of the year, while the Nasdaq climbed 0.75 percent to 20,885.65, its tenth record of 2025.
The Dow Jones Industrial Average rose 229.71 points, or 0.52 percent, to 44,484.49.
In Toronto, the S&P/TSX Composite Index advanced 233.96 points to close at 27,386.93, supported by strength in the technology sector, according to BNN Bloomberg.
Corporate earnings added momentum to the rally.
Around 50 S&P 500 companies have released results so far this quarter, with 88 percent exceeding analysts’ expectations, according to FactSet data cited by CNBC.
PepsiCo shares rose sharply after reporting revenue and profit above forecasts and reaffirming its April guidance despite cost pressures from tariffs and slowing consumer spending.
United Airlines shares climbed 3.1 percent after also beating estimates and pointing to rising demand since early July.
Technology stocks helped lead gains, fuelled in part by Taiwan Semiconductor Manufacturing Co., which reported a 61 percent year-over-year increase in quarterly net income.
As per BNN Bloomberg, TSMC’s US-listed shares rose 3.4 percent on strong demand from AI clients. Nvidia also rose 1 percent, contributing to the S&P 500’s performance.
Lucid Group soared 36.2 percent after revealing that Uber Technologies plans to deploy over 20,000 of its vehicles over six years in a robotaxi program using autonomous systems developed by Nuro.
Uber shares edged down 0.3 percent despite the announcement.
Economic data released Thursday added to investor optimism.
As reported by CNBC, US retail sales rose 0.6 percent in June, surpassing the Dow Jones consensus estimate of 0.2 percent.
The US Labor Department also noted that jobless claims declined by 7,000 to 221,000 for the week ending July 12.
A separate report highlighted unexpectedly strong manufacturing activity in the mid-Atlantic region.
eToro US investment analyst Bret Kenwell said the timing of the retail sales report was ideal, coming just as earnings season begins.
He noted that if earnings exceed expectations and management maintains a positive narrative on consumer spending, stocks could still gain despite record highs that some may see as stretched.
“At the end of the day, consumers are the backbone of the US economy,” he said.
Despite the market optimism, some notable stocks declined. Elevance Health fell 12.2 percent after reporting weaker earnings and cutting its 2025 profit forecast due to rising medical costs in its Affordable Care Act business.
Abbott Laboratories dropped 8.5 percent after trimming the upper end of its 2025 revenue outlook, though it still slightly beat earnings expectations.
The two-year US Treasury yield rose to 3.91 percent from 3.88 percent, while the 10-year yield dipped slightly to 4.45 percent.
BNN Bloomberg reported that Thursday’s strong data could delay further interest rate adjustments by the Federal Reserve, which has held rates steady in 2025 after cuts at the end of last year.
Markets remained sensitive to US political developments.
Earlier in the week, US President Donald Trump denied plans to fire Federal Reserve chair Jerome Powell, after stating he had discussed the “concept.”
His comments briefly unsettled bond markets before yields stabilised.
Commodities also posted mixed results.
The September crude oil contract rose US$1.04 to US$66.23 per barrel, while the August gold contract declined US$13.80 to US$3,345.3 an ounce, according to BNN Bloomberg.
Stock indexes across Europe and Asia also posted gains on Thursday.
