Seeking Alphaยท2025-07-20 17:38Earnings Reports - 112 S&P 500 companies are reporting earnings this week, including five from the Dow Industrials [2] - For Q2, 83% of the 12% of S&P 500 companies that have reported so far have shown a positive EPS surprise and a positive revenue surprise [3] - Alphabet is expected to report EPS of $2.19 on nearly $94 billion in revenue, with 25 upward revisions to earnings and 17 upward revenue revisions [4][5] - Tesla is projected to report EPS of $0.41 on sales of $22.4 billion, with significant negative analyst sentiment reflected in 24 downward EPS revisions and 26 downward sales revisions [6][7] Market Sentiment - Analysts express concerns over Tesla's expected double-digit declines in revenue and EPS due to slowing EV adoption rates and brand backlash against Elon Musk [7] - The current strategic position of Alphabet is viewed positively due to its dominance in digital advertising and YouTube, alongside expectations for growth from its proprietary LLMs in GenAI [5] Economic Outlook - Wells Fargo economists indicate that conditions are not favorable for increased capital expenditures, with businesses facing uncertainty around trade policy and economic growth [10] - The manufacturing sector is described as being in a cautious holding pattern, leading firms to cut costs and delay hiring [10] Central Bank Independence - Speculation is rising regarding potential moves by Trump to oust Fed Chairman Powell, raising concerns about the independence of the Federal Reserve [11][12] - Goldman Sachs and BofA CEOs emphasize the importance of central bank independence, warning that losing it could undermine inflation control [12]