Wall Street Braces for Big Tech Earnings: Alphabet, Tesla Highlight Busy Week

Investors are bracing for a busy earnings week, with more than 100 S&P 500 companies reporting results and the first of the tech giants, Alphabet and Tesla, set to take center stage midweek.

Monday’s early reports painted a mixed picture, but optimism about broader corporate performance and easing bond yields helped push major indexes higher.

Verizon Raises Forecast, Domino’s Misses Profit

Verizon opened the week with a solid beat, lifting its full-year profit outlook after stronger-than-expected demand for high-end wireless plans. The telecom giant's results offered a positive outlook even as macroeconomic questions, particularly around tariffs, loom large.

Domino’s Pizza also posted earnings before the bell but delivered a more mixed picture. Same-store sales rose by 3.4%, ahead of forecasts, but profits fell short. Despite this, the pizza chain’s performance indicates a continued appetite for value-focused consumer brands.

Steelmaker Cleveland-Cliffs surprised investors with better-than-expected earnings and used its earnings call to praise President Trump’s Section 232 steel tariffs, calling them a tailwind for domestic production.

Alphabet and Tesla to Anchor Tech Earnings Midweek

While Monday provided early momentum, markets are largely anticipating Wednesday, when Alphabet and Tesla report after the market close. The two are the first of the so-called “Magnificent Seven” to deliver second-quarter numbers and could set the tone for the rest of the sector.

Tesla, on the other hand, continues to face pressure from falling deliveries and heightened political scrutiny of CEO Elon Musk. Q2 deliveries dropped 13.5% from a year ago to 384,122, marking the second consecutive quarterly decline, Reuters reported. The stock remains highly volatile, recovering 47% since its April low but still down 18% on the year. Tesla’s valuation—188 times earnings—raises the stakes for its upcoming report.

Tariffs, Fed Talk Add Complexity to Market Outlook

Bank of America Securities has reiterated its Buy rating and $320 price target on IBM, citing potential growth in Red Hat and foreign exchange tailwinds ahead of the tech giant’s second-quarter earnings report on July 23.

Read more: Elon Musk’s Tesla Share Price Tumbles to Lowest Level in a Month. Why Is TSLA Stock Going Down?

IBM shares last traded at $287.09, bringing the stock within range of its 52-week high of $296.16. The company’s market capitalization stands at approximately $266 billion.

Markets Search for Catalyst as Sentiment Shifts

Beyond earnings, global trade tensions continue to hover over markets. The U.S. is just 11 days away from a potential tariff increase on European goods, with reports suggesting that the Trump administration may consider duties as high as 15%. EU officials are preparing for retaliatory action if negotiations collapse.

Meanwhile, speculation persists around the future of Federal Reserve Chair Jerome Powell. According to the Wall Street Journal, Treasury Secretary Scott Bessent has advised President Trump not to remove Powell, despite growing policy disagreements.

Meanwhile, the market's recent momentum has relied heavily on tech and AI enthusiasm, which leaves indices vulnerable if results disappoint.