US stocks rise on strong earnings, retail sales surprise; Dow gains over 150 points

Wall Street opened higher on Thursday, lifted by strong earnings reports and encouraging economic data that eased some macro concerns. The Dow Jones Industrial Average climbed 151 points or 0.3 percent, while the S&P 500 added 0.1 percent and the Nasdaq Composite rose 0.2 percent.

Gains were driven by upbeat corporate earnings. PepsiCo shares surged over 5 percent after the company posted results that topped expectations, while United Airlines jumped 6 percent following a robust earnings beat.

In a major move toward autonomous mobility, Uber on Thursday announced a $300 million investment in electric vehicle maker Lucid as part of a long-term robotaxi partnership. The deal, which also involves AV tech startup Nuro, will initially launch in one major US city by late 2026. Following this, Lucid shares were up over 30 percent in opening trade.

So far, around 50 S&P 500 companies have reported this season, with 88% beating analyst forecasts, according to FactSet. This streak of outperformance is helping boost investor sentiment despite recent political volatility.

Fresh macro data out of the US pointed to continued economic strength on Thursday, further boosting equity sentiment. Weekly jobless claims came in at 221,000 for the week ending July 12, down 7,000 from the prior week, according to the Labour Department—suggesting a still-robust labour market.

Meanwhile, June retail sales rose 0.6 percent month-on-month, comfortably beating the 0.2% forecast from the Dow Jones consensus, as per data from the US Census Bureau. The surprise uptick in consumer spending added to optimism around the health of the US economy and supported early gains on Wall Street, with the Dow Jones Industrial Average up over 200 points in early trade.

Thursday’s bounce follows a whipsaw session the previous day, when markets briefly plunged on speculation that President Trump could soon remove Fed Chair Jerome Powell. While Trump later denied imminent plans to fire Powell, he told reporters he “doesn’t rule out anything.”

Despite the noise, US equities are holding onto weekly gains. The S&P 500 is up 0.3 percent this week, the Dow has added 0.2 percent, and the Nasdaq is leading with a 0.9 percent rise.

The S&P 500’s forward P/E ratio of 22.7 suggests elevated valuations, leaving markets sensitive to shifts in monetary policy or unexpected economic data. However, analysts remain optimistic, citing strong corporate earnings and consumer resilience as key supports. Goldman Sachs raised its year-end S&P 500 target to 6,200, implying a 5 percent upside from current levels, driven by expected earnings growth.

Indian ADRs

Indian ADRs displayed mixed performance on Thursday, with significant volatility in the IT and banking sectors following recent earnings announcements.

Infosys ADR traded at $18.11, down 0.4 percent after a 3.6 percent drop the previous day triggered by Tata Consultancy Services’ (TCS) weaker-than-expected Q1 FY26 revenue growth.

Wipro ADR fell sharply by 4.5 percent to $2.87, hitting an intraday low after announcing its Q1 FY26 results which disappointed investors with a 3.5 percent to 1.5 percent sequential revenue decline guidance in constant currency terms.

Axis Bank ADR saw a modest decline of approximately 1.2 percent in early U.S. trading, estimated around $64.50, mirroring its Indian stock’s performance, which closed at Rs 1,155.70 (-1.09 percent) on the NSE after its Q1 FY26 results announced on July 17, 2025. Posts on X expressed bearish sentiment, citing heavy slippages, rising NPAs, and low NII growth as key concerns.

In contrast, other banking ADRs performed strongly.

HDFC Bank rose 1.2 percent to $66.80, and ICICI Bank gained 1.5 percent to $23.85, benefiting from positive sentiment around India’s growing financial sector and expectations of increased consumer spending following strong US retail sales data.

MakeMyTrip advanced 2.1%, driven by optimism in India’s travel and tourism sector.

Additional pressures on the overall performance arose from currency fluctuations (with the Indian rupee at approximately 84.5 to the USD) and fears of U.S. protectionist policies under President Trump, impacting firms reliant on U.S. revenue.

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